One comment property taxes are paid by someone no matter if a building is full or not.
So property taxes will be paid by whoever owns the new Stantec tower.
And property taxes will continue to be paid by whoever owns the current Stantec buildings.
It doesn't matter whether there is a tenant or not - someone is paying.
I guess you could argue that a tenant could build a tower outside the CRL and stay pay taxes into general revenues. But a tenant could also build somewhere in Sherwood Park, St. Albert, Calgary, etc and pay taxes there.
So I guess I get what you're saying... but don't think it is as black/white as you appear to.
A glut in real estate eventually results in a downturn of both property value, and eventually the assessed value, which in turn of course impacts property tax.
Same thing with office builds. Are we headed for an office space glut in this market and especially in the downtown? Sure looks like it.
Next, properties with limited or decreased value that have resulted in price drop can also result in people defaulting on loans, declaring bankruptcy, or just walking away. Good luck on collecting tax from such busts where there is no equity position and no reason to retain. Whats the city going to do. Put a lean on an abandoned property?
Finally, Edmonton's population has been expanding a lot. It has been for around a decade, and that expansion would of course be occurring with or without an arena. So housing starts, sales occur with or without an arena, with property tax increases occurring with or without an arena.
An arena district doesn't result in MORE people deciding to live in a city and I challenge anybody to come up with a substantiated study that it does. The increases occur anyway in an expanding market. So its disingenuous of either Farbrother or Iveson to act like it is.
Only the NET increases should be looked at as paying off this mortgage.
The strongest argument one could make though is that 1700 Stantec employees have stayed in this marketplace and have not moved elsewhere. I buy that argument easy and its good that this occurred in this case. I would prefer that coherent arguments like that be made.