Response to November 2007 article “Make It Your Business”

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This note is in response to your November, 2007 article in the “Make It Your Business” newspaper from the Owen Sound & District Chamber of Commerce.

 
To begin, perhaps a little information about our association is in order. The Grey-Bruce Home Builders and Trades Association is an organization of free enterprise companies working together to promote “professionalism” in the residential construction industry. Our members include builders, developers, renovators, professionals, trades, and suppliers. We represent, through our members, more than 75% of residential construction in the Owen Sound and Grey-Bruce area. We are part of the Ontario Home Builders Association (OHBA), our provincial group, and the Canadian Home Builders Association (CHBA), our Canada-wide group. Overall, there are more than 12,000 member companies in more than 80 local associations and 10 provincial councils across Canada. The residential construction industry is the engine that drives Ontario’s economy.
 
As part of the association’s ongoing objective of improving the industry, so that Canadians can remain among the best-housed people in the world, the group represents its members in a wide variety of fields including all three levels of government; educational, economic and technical research; industry promotion; consumer relations and marketing. Hopefully, this gives you an idea of the scope and importance of the residential construction industry.
 
“When we see major growth all around us, Why such little home construction in a time of real estate boom?” is a reasonable question. However, as you’ve discovered, there’s no easy, simple answer.
 
 
 
 
One major issue is building lot availability within the city. The perception of many area builders, developers and the public is that the city of Owen Sound has a limited supply of new building lots – and these are owned and controlled by two or three companies. It’s much easier, and less expensive, to find building lots outside of town. (A one acre lot is often less expensive than a 50’x100’ undeveloped city lot.) Publishing or advertising available development properties and lots, within the city, might be worth considering.
 
Also, the existing city processes for new home construction – obtaining permits, inspections, code requirements (and interpretation of same), final occupancy permits – are time consuming, costly and frustrating for builders and clients alike. Generally speaking, there are more rules and requirements to deal with within the city. Perhaps a co-operative, team approach to simplifying the building process should be considered. It’s been suggested that there could be a guideline package created, that would provide information about “the next steps” from getting a building permit, who to contact, appropriate fees, etc. This would help reduce unseen surprises. New regulations state that a building permit must be issued within 10 days, but it would definitely be a good-will gesture if this was done faster, where possible. A synergistic approach of determining how to help make things happen, instead of finding obstacles, will create a more positive working environment for everyone. 
 
Permits, fees, development charges are also a major issue in the city of Owen Sound. Again, most of these are less outside of the city. Admittedly, the city is having to deal with more and more downloading, but new residential construction should not carry the load. (The building industry is the most heavily taxed outside of the auto industry!)
 
Development charges are a sensitive issue. There is a place for D/C’s as long as they’re realistic and used as intended. Unfortunately, many municipalities see them as “easy money” to help with tight budgets. High priced “consultants” are doing a great business suggesting unrealistic amounts that can be charged, because there’s another community of similar size getting large D/C’s. Every community and municipality is different.
 
 
For example, you cannot compare Owen Sound with Collingwood, where Interwest (an international resort developer) has invested multi-millions of dollars into that local community. Owen Sound doesn’t have an Interwest – yet! Saugeen Shores (Port Elgin) has not had a D/C to date, and has enjoyed major new home starts over the past few years, particularly with the improved stability of employment at the Bruce nuclear site. However, it is now looking at implementing D/C’s of $8400 for a new house. To say there are some upset, major builders in this community is an understatement There’s a difference between reasonable D/C’s which can be seen as a supporting cost of growth, and gouging D/C’s which will discourage building and growth.
 
Population demographics are changing and many aging, active adults (baby boomers) are looking for areas to retire to – they’ve paid their dues in the big city and want to enjoy a healthier, more comfortable lifestyle, and they have the money to do it. Owen Sound has been “a best-kept secret” for years. However, if the city wants to grow, we have to become more flexible and receptive to new ideas to encourage people to build in Owen Sound. It will require a team effort and we should all be on the same side to help make this happen!  
 
Glenn Gray
Executive Officer
The Grey-Bruce Home Builders and Trades Association