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Another Lower Mainland city plays developer and gets slammed by private sector

October 12th, 2010 · 4 Comments

This interesting story was in the Sun today, detailing the way Surrey’s efforts to develop an entrepreneurial arm is generating backlash from industrial people there, saying it forces them to compete against the city and gives city developments an advantage.

The city says not, that it’s just trying to do a little extra to turn Surrey into a hub for new tech businesses. Which could eventually benefit others.

But, as we’re seeing in Vancouver these days, it’s tough when the city plays developer. Vancouver did it for years, very successfully, thanks to a rising real-estate market. The Woodward’s project, a complicated affair that combined market condos with social housing, city offices, university space and more, was the shining example. But the recession has played havoc with many developers, Vancouver included.

For now, Surrey is focused on buying and preparing industrial land in order to foster business growth. But that development arm is also supposed to be playing developer in Surrey’s central city in order to remake it into an urban core. If things go well, it will be written up in the textbooks. If it doesn’t — well, look at the situation Vancouver is facing.

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  • Bob Edwards

    The mention of in the sun article of Calgary and Toronto municipal land corps is worth noting. In Calgary, the best residential development has been done by either the city or Canada Lands Corp (ie the feds). On the commercial industrial side – the city’s development arm ensured certain necessary segments of the industrial market were served when the private sector was in hibernation. Public sector involvement in the development industry rarely takes up more space in the market place than shaving the peaks and valleys off wacky supply and demand profiles.

  • MB

    I would take Ryan Beedie’s comments with two grains of salt. He is the developer of the lowest common denominator of warehouse ‘parks’.

  • Bob Edwards

    Good comment MB – the other thing some muni involvement in development does is raise the bar a bit – no surprise those with questionable product are antsy.

  • A. G. Tsakumis

    Ryan had a NINE YEAR RUN (moratorium) and is now whining because he’s not any longer getting his way.

    Maximizing profit is one thing, but at the expense of anyone else in the community is what he’s really bitching about.