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Why Toronto won by losing the bid for Amazon’s new headquarters

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Toronto’s bid for Amazon’s second headquarters, known as HQ2, fell short to not just one location, but two — New York and northern Virginia according to reports — yet the Canadian city may be better off without the American giant.

Amazon initially promised as many as 50,000 jobs at its HQ2 and there are reports that the company will announce a significant investment in one additional city. But, some in Toronto’s tech sector say they worried Amazon would be a very big fish in a small pond — capable of eating up much of the talent in the pool.

“We already have a significant talent shortage and Canadian growth companies need the talent that multinationals like Amazon will consume,” said Anthony Lacavera, the founder of Toronto-based Globalive, a company that helps entrepreneurs grow their startups through investment and partnerships in an email.

Toronto’s reputation as a tech hub is growing: it’s thriving off of early investments in AI and fintech, a strong university research community, and an ecosystem supportive of start-ups.

According to commercial real estate and investment firm CBRE, for two years in a row Toronto has been North America’s fastest growing tech market, adding 28,900 tech jobs last year, up 13.6 per cent from the year before.  

But, it’s yet to be home to a Canadian-born Amazon equivalent.

The arrival of an 800-lb gorilla like Amazon is more likely to squash Toronto’s thriving ecosystem than help it grow, said Lacavera, who also founded his own startup in Toronto, WIND Mobile, which later sold for $1.3 billion US.

“Canada needs to build its own global winners and end the branch plant economy once and for all.”

Selling Toronto

Still, Toronto’s bid laid out why it was “ready to become the home for Amazon’s HQ2.” It promoted Toronto’s strong, diverse and affordable talent, quality of life, competitive corporate tax rates, and the country’s universal health care.

We know that health care costs are top of mind at the company. In January, Amazon teamed up with Berkshire Hathaway and JP Morgan to create a new venture aimed at bringing down health care costs for its employees.

But health care wasn’t the only sales pitch. Organizers touted what Toronto had to offer by bringing together multiple different perks from different places in and around the region.

The city’s pitch had the backing of nearby cities such as Hamilton, the tech hub of Kitchener-Waterloo and many more to tout the abundance of high skilled workers — all of whom could be hired for far less than American workers getting paid in U.S. dollars would demand.

Toronto’s bid had the backing of other nearby cities that, collectively, are home to almost 8 million people across the region. (Toronto Global)

Markham, Ontario, which was part of Toronto’s bid, tried to get Amazon’s attention by adding “Possible Future Home of Amazon HQ2” to its welcome sign.

 

There’s something Toronto didn’t do, though: woo Amazon with financial incentives. 

Even though Amazon was worth more than $1 trillion US earlier this year, as the battle between cities heated up, some tried to lure the company with billions of dollars in tax breaks and other enticements.

“It’s disgusting,” said Richard Florida, who was on the board to craft Toronto’s bid, but resigned in order to speak out against cities that were putting expensive carrots on the table, and to try to convince them to compete on merit only.

However, he says the mayors he spoke with insisted they couldn’t do that.

“If everyone would’ve behaved like Toronto and Ontario, this would’ve been a much better process,” said Florida, likening the competition to American Idol.

An influx of thousands of workers could create costly problems for a city, from driving up housing prices, to crowding public transit.

“If Amazon’s going to come you don’t want to give them anything — you want them to be a partner in addressing many of the issues they’re going to create,” said Florida. 

Incentives that don’t pay off

Cities that compete for professional sports teams often roll out a red carpet and offer incentives such as subsidizing new stadiums. But according to Stanford economics professor Roger Noll, it’s never worth it. 

“In terms of local economic activity, there’s essentially zero benefit,” said Noll.

The Amazon case is more complicated though, because unlike a sports franchise, Amazon will derive most of its revenue from outside the chosen city and attract a high-end labour force that pays more taxes and spends money locally.

“It’s probably better for a community to buy Amazon, than a basketball team … but it’s still a huge amount of money to pay and extremely unlikely to be worth it,” Noll said.

Toronto likely would’ve needed to match the other cities’ massive incentives in order to win, which would’ve been a bad deal for the city, he said.

“It’s never worth multiple billions, and Toronto should be proud of itself that it didn’t win this.” 

Toronto’s consolation prize

On Thursday, Toronto mayor John Tory said the city already got its pay-off for its Amazon bid: the proposal it posted online has been downloaded more than 17,000 times.

“The other 16,999 that read that book beyond Amazon are people that today are making decisions about coming to Toronto… This city is a beacon for investment, for people, for companies,” said Tory, talking to reporters at City Hall.

 

Toronto may have already landed a headquarters of sorts if the Sidewalk Labs project that plans to transform a neighbourhood in downtown Toronto goes ahead, according to Florida. Sidewalk Labs is a sister company to Google.

“We could have a Google HQ2,” said Florida. “People don’t think of that.” 

If the Sidewalk Labs project is able to address concerns over data privacy and other issues that come up in public consultations, Florida is optimistic that it would benefit Toronto more than an Amazon headquarters. 

“For Toronto’s sake, I think it’s better it ended up this way,” said Florida

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The cost of renovating your bathroom in Toronto in 2021

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Home renovations can be a big task, especially bathroom renovations where you have to work with either an awkwardly shaped space, or one with lots of pipework and very little natural light.

Nonetheless, getting a bathroom renovation by Easy Renovation to change your existing bathroom layout, improve the ambience or add more natural skylights can be worth all the trouble. But determining how much a bathroom renovation would cost is important while setting a budget.

The pandemic has changed a lot of things with social distancing rules, working from home, and for some, being made redundant. Therefore, having a complete grasp of the financial implication of a bathroom innovation is very important.

Owning your dream bathroom can be made a reality and the good thing is, regardless of your financial situation, there are always available options. If you also decide to put up your property for sale in the future, a bathroom upgrade would be a great investment—as it would add significant value to the property. Your bathroom renovation project, like every home renovation, can either be very affordable or extravagant, but one thing is certain, you’re bound to have a more refreshed, stylish and modernistic space.  

Looking through detailed sketches of luxurious and expensive bathrooms can be quite tempting, especially when you’re on a budget. However, your bathroom can be equally transformed into something that looks just as modern, stylish and refreshing but without the heavy price tag.

Conducting a partial bathroom renovation means you only have to change a little part of your existing bathroom rather than tearing it down and starting from scratch. If you intend to carry out this type of bathroom renovation in Toronto, depending on the size of your bathroom, you can spend between $1,000 – $5,000. With a partial bathroom renovation, you can save money by tackling smaller problems that exist in your present bathroom—or you can just upgrade a few of its features.

Partial bathroom renovations are quite affordable and would leave your bathroom feeling new and stylish without being time-consuming or a financial burden—which is important considering the economic impact of the pandemic. Repainting the bathroom walls, replacing the tiles on the floor and in the shower area are examples of partial bathroom renovations which is the cheapest to accomplish.

A more expensive and popular bathroom renovation is the standard 3- or 4-piece renovation. This renovation type involves a lot more services that are not covered by a partial renovation budget. To execute a standard bathroom renovation in Toronto you need a budget of about $10,000 – $15,000.

Unlike with a partial renovation, you would have to make a lot more changes to various elements of your bathroom without the hassle of changing the overall design. You can easily restore your current bathroom into a modernistic and classy space that fits your existing style. Making changes to more aspects of your bathroom is quite easy since there is more room in your budget to accommodate it.

A standard 3- or 4-piece renovation includes everything in a partial renovation plus extras such as revamped baseboards, installing a new bathroom mirror, buying new lights, installing a new vanity, changing the toilet, and buying new shower fixtures.

If you’re one of those looking to make a complete overhaul of your existing bathroom, then the option of a complete bathroom remodel is for you.

Unlike a bathroom renovation, remodelling means a complete change of your current bathroom design and layout for one that is newer and completely unrecognizable. The possibilities when remodelling a bathroom are endless especially when you have a large budget of over $15,000. That way, you can get the opportunity to create the perfect bathroom for yourself.

In addition to all that’s available with a standard bathroom renovation, bathroom remodelling allows you to make bathtub to shower conversion, relocation of plumbing, relocation of the toilet, reframing the bathroom and even relocating the shower.

In conclusion, a bathroom renovation can be a very important upgrade to your home and depending on the features that you decide to include, in addition to the size of your bathroom, this would influence the total cost of the project.

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7 Tips For First-Time Home Buyers In Calgary

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Buying a house for the first time can be overwhelming to say the least. If you’re wondering what neighbourhood to go with, what you can afford, or even how to just get started on the process, let us take some stress off your hands! We’ve teamed up with Hopewell Residential to give you 7 tips to ensure the home you end up with is everything you dreamed of.

Hopewell Residential is a five-time Developer of the Year award winner, so their expertise is second-to-none in Calgary and beyond. Who better to learn home-buying tips from than the homebuilders themselves?

Create a checklist of needs & wants

This is a biggie. When you’re buying your very first home, you’ll want to weigh your needs vs. your wants. Ensuring you have what you love in your first home is a big, big deal.

What should you do? Easy. Set up a list of needs and a list of wants, but be pretty strict with yourself, and make sure you take your lifestyle into consideration. With the increase in remote work over the past year, it’s important to keep in mind that a home office or flex room might just be the key to maximizing at home happiness. Especially if you’re thinking you might be expanding your family later on, spare rooms and extra space is key (but more on that later!).

Or for instance, you might need a home in an area with a high walkability score, but you want to be close to certain amenities. Set yourself up with the right level of compromise and the number of homes that actually fit your ‘perfect’ idea will skyrocket.

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‘Don’t give up’: Ottawa Valley realtors share statistics, tips for homebuyers in ‘extreme’ sellers market

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The real estate market in the Ottawa Valley can be summed up this way: people from far and wide are in a buying frenzy, but there’s hardly anything to buy at the “store,” and the limited inventory is overpriced.

This “stampede” — as one realtor described it — will affect rural towns as residents grapple with finding affordable housing and agonize over their inability to purchase homes in their price range.

“We are seeing a lack of inventory in all price ranges,” said Laura Keller, a real estate agent from Carleton Place.

Helen Vincent, a Renfrew realtor, said she’s never seen a market like this in her 36 years of practice. “We postpone offers for four to five days in order to get all the buyers,” she said.

Multiple offers — between seven and 10 — became the norm, with cash offers and no conditions, as buyers faced bidding wars. “In Ottawa, they have up to 50 (offers),” she added.

“It’s very stressful. You’re going to get nine (people) ticked off, and one happy. So many people are disappointed,” Vincent said.

Terry Stavenow, an Arnprior realtor for 40 years, said that “the pent-up need took over with inventory going low. It made a stampede on everything that was available.“

“Brand new housing — it’s very much gone. Several building developers are rushing to get inventory. They usually don’t do construction in the winter months,” said Stavenow.

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