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Milton Urban Planning Fails: Beautification

June 2nd, 2010
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The intersection of Derry and Trudeau in Hawthorne Village, Milton. Beautification? Check.

Recently, local blogger and candidate for Milton Town Council in Ward 8, Zeeshan Hamid has strung together a series of posts discussing the ‘beautification’ or lack thereof, in Milton.

Hamid makes the case that Milton should position itself as an ‘Escarpment Community’ and that it’s future development and infill projects should take this into consideration. He’s essentially saying that Milton, from an urban planning and design standpoint, needs to separate itself from the rest of the urban sprawl west of Toronto.

Yes, this means you, Mississauga, Brampton and Oakville (north of the QEW, at least).

He’s correct. Oakville has Lake Ontario and by extension it’s signature Lakeshore Boulevard strip with its quaint shopping, restaurants, parks, etc. Mississauga has the lake as well and in addition, has more of a ‘big city’ downtown in the vicinity of Square One. Not all that great to some, but the city has become a major Canadian business centre because of it. Brampton has, well, um, not much. Sorry.

Moving west, the intersection of Derry and Holly has hanging pots of flowers.

Milton? Well, we’ve got a lot going for us.

We’re a small but growing town nestled in at the foot of the scenic Niagara Escarpment. The town’s amenities have increased ten-fold in the past decade and yet the downtown core — albeit not to be confused with Lakeshore Boulevard in Oakville — is quaint, somewhat scenic and is home to events such as this weekend’s Downtown Street Festival and the weekly Farmer’s Market. Milton is also a hop, step and a jump away from any number of conservation areas and farms with recreational opportunities abound, unlike Mississauga and Oakville.

Milton truly is a place where city meets country — and that’s a unique and strong selling point, especially in the GTA. With controlled growth and a little extra attention to detail, Milton was in a position years ago to truly become the jewel of the GTA. Seriously.

And how are we doing?

So far, not great.

Okay, Milton’s expansion hasn’t gone horribly mind you (we’ll talk traffic at another time), but things could have been better.

In Milton's newest development, Hawthorne Village on the Escarpment, things are looking a little bland.

Zeeshan is right — situated against Ontario’s most prominent geographical feature, the Niagara Escarpment, Milton should absolutely be positioning itself as a special place to be — an ‘Escarpment Community’ as he has coined it. A community where, from a design point of view at least, a little bit of that rural touch is brought in to soften the hard visuals of wider roads and new subdivisions.

The new housing developments themselves aren’t too bad. Hawthorne Village in the town’s southeast corner, is a decent-looking community with a nice mix of different sized houses and some nice designs. Well-done Mattamy. If you drive around in the older areas of Hawthorne Village where the trees have had 7+ years to grow, the streets actually have quite a nice character to them.

HV’s signature intersection of Derry and Trudeau was also well-executed from an ‘Escarpment Community’ standpoint as Zeeshan pointed out, with a good-looking median lined with trees and flowers. Is it a coincidence that Mattamy has their main Milton office situated on this corner? Probably not.

At any rate, most of Hawthorne Village, from a housing standpoint, was decently thought out. As you head west however, it’s a different story, and again, the Z-man nailed it with his recent assessment that the urban design is indeed regressing as you head toward the escarpment.

The Derry/Holly intersection has a concrete median with hanging flower pots. Trees and planted flowers would have been better, yes, but there was at least some attempt at beautification. However, moving into Milton’s newest area of development, Hawthorne Village on the Escarpment, it leaves us not only wanting more, but also disappointed.

I remember when Mattamy and other new home builders announced their plans to develop the land to the west of the existing town — I assumed these new developments would be pricey and exclusive and of the highest standard of both design and quality, given their proximity to the escarpment.

I was wrong.

The Hawthorne Village on the Escarpment area south of Derry and west of the CN Rail tracks is simply sub-par given it’s proximity to and sightlines of the escarpment and even in comparison to Mattamy’s earlier work in the east of town.

I don’t mean to dump on Mattamy or HVE residents here — I don’t know design-wise how much of this is in the hands of the builders or whether it’s the town needing to simply demand more from land developers. At any rate, there are a ton of large, exclusive homes in this area, but they are simply ridiculously sandwiched together on narrow, congested streets — even by today’s development standards — that the overall ‘look’ is simply not up to snuff.

And comparing the major intersections — Scott and Derry for example, leaves a lot to be desired in comparison to Holly/Derry and Trudeau/Derry. Overall, the development looks rushed and not well thought out — very ‘anti-Escarpment Community’ — not good considering it’s unfortunately ironic placement.

You also need to look at the new shopping plazas in town. Not a pleasant sight for the most part. Very wide open, lots of concrete and again, you get the feeling there was zero thought put into the design here. The Metro Plaza at Thompson and Louis St. Laurent has ‘urban sprawl’ written all over it. The Superstore plaza beside the GO Station? Well, that’s simply too much of a disaster to go into at this point, as is the whole intersection of Thompson and Main Streets — let’s save that one for another day.

So what types of things does Milton need to consider — from an urban design point of view — moving forward?

I believe Milton needs to position itself right now as the ‘Escarpment Community’ where urban and rural living collide.

In future new development and infill projects, some care absolutely needs to be taken to try to beautify the town where possible and begin to try to set it apart from neighbouring cities.

Newly built major roads and intersections, especially those leading in and out of town absolutely should have medians that allow for trees, plants and flowers. Let’s not forget about pine trees or cedars as well which maintain their look throughout our long winters.

Speaking of major roads, let’s do our best to keep homes from facing onto major arteries like Derry Road, and where homes do face onto major roads, let’s allow for trees as a buffer. Forget about fences — an ‘Escarpment Community’ needs to incorporate nature and natural elements as much as possible.

And speaking of ‘buffer zones’, let’s work on our shopping plazas and business centers. If parking lots need to face out to roads, can trees be planted to hide the sea of concrete from view? What about trying to get some storefronts facing out towards the road instead of toward the inner parking lot? Wouldn’t it look so much better to drive along roads like Derry or Bronte and see storefronts, trees, sidewalks and benches instead of bland back entrances, garbage bins or parking lots? Can we not try to avoid unmitigated disasters like the townhomes on Kennedy Circle that have the arse-end of the Metro Plaza stores staring back at them in their living rooms? Of course we can.

Infill is critical as well. Here’s hoping this type of care and consideration is also taken when the design and planning of future projects in ‘Old Milton’ takes place in areas such as Main Street east of downtown. I think we can all agree that most of that area of Main St. — lined with industrial plazas — is hardly befitting of an ‘Escarpment Community.’ Ditto for most of Ontario St. and Steeles Ave. — both major arteries for visitors or passersby through Milton. If your impression of our town was based on the beautification or lack thereof along these routes, you probably wouldn’t be too anxious to move to Milton.

Granted, these areas aren’t likely to be transformed easily if at all, but any infill projects planned here in the future should take this into consideration. Even much of the industrial area along Steeles could be softened if trees could be added to the sides of the road.

Honestly, I think the formula is pretty simple. Urban sprawl such as what Milton has experienced over the past decade, seems to be synonymous with open, bland spaces and lots of concrete. If nothing else, the thought process from now on should be: when in doubt — trees, trees and more trees. Oh, and plants and flowers too.

You get the point. Milton has a lot to be proud of — it’s geographical location included. I think it’s time that the town seriously considers trying to capture a sense of that as it continues to grow. This isn’t about property values, it’s about pride. It’s about making Milton a special place to be. Milton should (and still could) be the jewel of the GTA.

The disturbing thing for me, is the fact that the town was essentially a blank canvas a decade ago. As Zeeshan has pointed out, no one bothered to look at the mistakes made by other Municipalities like Mississauga, Oakville or Brampton in their years of aggressive development — or even the successes for that matter (speaking specifically of Mississauga’s policy of infrastructure before population growth). And now, here we sit feeling the brunt of some of the decisions made years ago with little thought given to any sort of vision for Milton’s future.

Who’s to blame? I’m sure you could come up with a laundry list of people, politicians and organizations, but at this point I think it’s best to look to the future.

Milton’s rapid expansion has still only barely begun and there is still plenty of time to right some of the previous wrongs with regard to urban planning and design — as well as continue to improve older areas via sensible infill strategies.

I’ve been saying it for years: this is a pivotal time in the history of this town. Don’t be afraid to voice your opinions, concerns and support for the candidates you think can help achieve the vision you have for Milton.

That’s right, this is yet another call for voter turnout in this Fall’s Municipal election. It’s time for us to get actively involved in shaping Milton.

Should Milton be satisfied with simply becoming another generic GTA suburb, or do we take steps to make our town a special, desirable place that is unique and stands out?

I knew you’d agree with me. The time is now.

—

Milton Urban Planning Fails is a regular feature on MiltonSearch.com.

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Posted in Environment, GTA, Hawthorne Village, Milton Development, Milton: The Bad, Politics, Real Estate

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Halton looking to protect 36% of its developable land

December 17th, 2009
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Burlington farmer James Fisher says a natural heritage designation will inevitably put agricultural interests behind environmental concerns.

Burlington farmer James Fisher says a natural heritage designation will inevitably put agricultural interests behind environmental concerns.

Kudos to Halton Region, which is finally looking to limit development after a huge amount of some of Ontario’s finest farmland has already been or is planned to be developed on.

This will be interesting to watch as the situation pits green politicians vs. rural politicians supporting farmers vs. farmers who want to sell their land to developers vs. farmers who want to preserve Halton’s rich farmland.

You may also want to read two other articles posted previously on MiltonSearch.com: Strawberry Fields (not) Forever and A Farewell to Farms.

Below is an overview of Halton Region and its land designations. Click the image for an enlarged, interactive version.

Here is this latest column in it’s entirety from the Toronto Star:

Where Homes Don’t Grow

Halton’s radical plan to limit development pits red-taped farmers against green politicians

Outspoken Oakville councillor Allan Elgar has a name for the practice of building a sprawling subdivision on prime farmland: He calls it “the final crop.”

That’s why the farmboy-turned-environmentalist is backing Halton Region’s groundbreaking proposal to set its own protections on an extensive natural heritage system. The plan would preserve a whopping 36 per cent of the region’s developable land, set up an integrated network of preserved areas, and drastically curtail where houses can be planted some day.

The land included is neither part of the protected greenbelt and Niagara Escarpment nor under consideration for development.

But the move is pitting green-minded politicians in Oakville and Burlington against those in Halton Hills and Milton, who are more responsive to concerns raised by farmers and development interests and have opposed it. A final vote is slated for Dec. 16.

Supporters make no bones about the fact the plan will thwart speculators who have bought, or arranged to buy, vast hectares of prime agricultural land in Halton, and the farmers who want to sell it.

Caught in the crossfire, however, are farmers who don’t want to sell but are deeply concerned that the new designation will add another layer of regulation that bodes ill for farming in the long run.

It is, contends James Fisher, all about how words are interpreted.

“The actual designation has negative impact,” said Fisher, one of several farmers who spoke to Halton regional council this week. “It’s not that we are against the natural heritage system. We want an alternative that respects agriculture.”

They fear that replacing the current agricultural zoning with the term “natural heritage” will inevitably put farming interests behind environmental concerns, despite repeated assurances that farming will always be allowed.

Farmers want, at a minimum, to see the natural heritage system designated as preserving both environmental features and agriculture.

Whatever the final wording, Elgar and most of the Halton councillors seem ready to approve the creation of a vast “systems-based” network of natural heritage corridors to connect environmentally sensitive areas such as river valleys, woodlots and wetlands.

It would end the old practice of protecting only isolated pockets, which tend to degrade over time if there are no corridors ensuring that wildlife can move freely.

The proposal may be more radical than the provincial greenbelt legislation because it bans golf courses anywhere on the system, whereas the province just blocks golf courses from prime agricultural land.

“If we get this, we will be the first region in the Greater Toronto Area with a systems-based approach on a regional basis,” said Elgar, describing the preservation plan as simply an extra layer of protection.

“It is a no-touch zone … There is concern that there is a lot of farming land bought by the development industry, with the hope in future of flipping it to plant houses.”

The plan would not only make protected areas off-limits but also make anything built within 120 metres of a natural heritage feature or corridor subject to an environmental impact assessment – a proposition feared both by developers and farmers who want to make improvements to their property.

While other GTA municipalities are also doing more long-range development planning now, Halton’s scheme is the most ambitious.

In the face of similar opposition, Peel Region politicians recently deferred a decision on their own plan, which targets mostly farmland in Brampton and Caledon. Peel’s plan is less stringent than Halton’s – it has been slammed by the Sierra Club for example, for allowing golf courses to be built in the valley lands of its waterways.

Halton politicians could take courage from an Ontario Municipal Board ruling last year that approved Oakville’s controversial decision to protect 900 hectares on its own initiative. The preservation area – won after a decade-long tussle with the development industry – represents more than one-third of the 3,400 hectares of undeveloped land north of Dundas St. W.

The OMB ruling was a major victory for the likes of Elgar, Oakville Mayor Rob Burton and members of the environmental group Oakvillegreen, who had fought to preserve green space in north Oakville while making room for an eventual population of more than 50,000.

The ruling also emboldened them and other Halton Region politicians to go after developers for thousands of dollars in extra development charges on each home sold – significantly higher than other regions – under the mantra that “growth must pay for itself” and municipal government doesn’t exist to subsidize developer profits.

Halton Hills Councillor Clark Sommerville says the intention behind the natural heritage system proposal is good – and driven by urban councillors from Oakville and Burlington who are trying to make amends for the fact their communities were largely built out before such protections existed.

But he thinks it’s “overkill.”

No matter how well-intentioned, overregulation “will be the death knell of farming,” Somerville said – not development.

“The biggest thing we are trying to protect is the non-urban rural land from development, but the way it’s being written it almost appears that agriculture is the threat,” he said.

Still, environmentalists such as Liz Benneian of Oakvillegreen say the new rules will ensure protection for farmers. Her only concern is that a provision in the original plan – superimposing the natural heritage system on Greenbelt areas as a second layer of protection against a future change of heart by the province – has since been removed.

“We believe this is a forward-thinking plan from planners and politicians,” Benneian said. “A gift to our grandchildren.”

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Uproar in Milton over increased development charges passed on by Mattamy

September 10th, 2009
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The popular Hawthorne Villager forums are glowing red hot this week as many soon-to-be residents of brand new Mattamy-built homes received their much-anticipated letters from Mattamy announcing details of exactly how much they would have to pay in increased Halton Region development charges. Now that the posts are flying fast and furious, the magic number seems to be $7888.00 no matter the size or price of the home currently under construction.

The full, ongoing discussion can be found here.

The general feeling is that of rage at this point, and I really feel for the new homeowners who have been hit by this unexpected charge. Fortunately for some, they had lawyers with enough foresight or knowledge of the new homebuying process that they had their contracts amended to cap the amount at $1000 — but for most, it’s a huge extra cost out of the blue — money they either don’t have, or were planning to use for their downpayments, upgrades, new appliances or renovations after moving in.

Initially, I looked at Mattamy with my conspiracy theory hat on: they’re taking great pleasure in passing along this increased development charge to their customers — get everyone incensed enough to protest this increase, so maybe it goes away and possibly they increase their profits. Whatever the case, any charge the Region hits them with, you know they’re just passing it down to the customer. It’s what any business would do.

The Region of Halton has also posted a Q&A on their website here, which was an interesting read:

Information for Purchasers of New Mattamy Homes in Milton

Q: Mattamy says they are requiring me to pay about $8,000 before closing to cover a new tax / levy / development charge that has been imposed by Halton. Is that true?

  • No. This cost did not come about due to a new tax, development charge, or levy.
  • It did not come about due to an increase in an existing tax, development charge or levy.
  • The amount Mattamy Homes is referring to relates to a financial contribution that Mattamy agreed, in 2007 and 2008, to make to Halton Region in two installments to pay for key infrastructure to support growth.
  • The amount payable under the agreement is the responsibility of the Mattamy Homes, who now appears to be trying to pass these costs on to you.

Q: This came as a surprise to me. Why am I only hearing about this now?

  • Halton Region was not aware that Mattamy Homes did not communicate with you about the amount of the costs before now.
  • The industry and Halton began discussions about this subject in 2007.
  • The amount of the per unit payment that developers were going to have to make as a contribution was estimated and disclosed publicly in November 2008.
  • Mattamy Homes has known these costs would be payable since 2007, and have known the magnitude of how much it would be since October 2008.
  • There were over 22 meetings and a full consultative process.
  • Mattamy Homes participated fully in the process.

Q: Does Mattamy Homes have the right to pass these charges on to me?

  • Mattamy Homes agreed to pay for the costs of new infrastructure under the agreement that they made with Halton.
  • Whether or not they can now pass that cost on to you is a contractual matter between you and Mattamy Homes.
  • Given that the sum arises from a “payment under an agreement”, and not from a tax, levy or a development charge, you might ask your solicitor if this charge can be appropriately passed on to you under the terms of your agreement of purchase and sale and if the amount under the agreement was fully disclosed to you after November 2008 when the amount of the contribution was estimated and disclosed publicly.

Q: Why did Halton seek contributions from Mattamy Homes and other developers?

  • The contributions arise from the long-standing Council approved policy that existing Halton taxpayers should not pay for the costs of growth.
  • Halton’s Financial and Implementation Plan determines the actual costs of infrastructure, like roads, water and waste water services, and assigns those costs to each new unit.
  • This policy is essential to the long term financial sustainability of Halton.

Q: Can you simply drop the charge or lower it or not apply it to us?

  • No, we cannot do that. Halton’s Financial and Implementation Plan for the 2008/2009 Allocation Program is essential to the long term viability of the Region.
  • Without it, Halton would face a significant shortfall and burden present and future taxpayers.
  • The Plan applies to all new units being constructed in Halton, so there is no ability to make exceptions.

Q: But I can’t afford to pay it. What am I supposed to do?

  • The fee is payable by Mattamy Homes.
  • It appears they have tried to pass them on to you.
  • We recommend that you consult with your legal counsel as to your rights relative to your developer.

    • From the Region’s perspective, they’ve charged Mattamy and it sounds like they feel Mattamy shouldn’t pass this on. As stated above, what did they think Mattamy was going to do? Absorb this cost? At $8000 per home, you don’t need to be a math wiz to figure out that’s a big dollar figure we’re talking about. The Region sure sounds like they’re making Mattamy out to be the bad guy on this one….

    Some think Mattamy should at least have let their customers know about this charge sooner — however, they themselves apparently only found out about what the exact charge would be in April 2009 according to the Region.

    Apparently on September 30th, the Region of Halton will sit down and review a proposal from the builders which may or may not reduce or eliminate this fee.

    Grab the popcorn, this one’s going to get interesting.

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    Boyne Survey: “They have to have someplace to live”

    February 21st, 2009

    The Boyne Survey will be the site of the third phase of Milton’s residential growth, the previous two having started over the past 10 years. Once all three phases are complete, Halton’s regional staff estimate Milton’s population will be close to 150,000 by 2021.

    The Boyne Survey will be the site of the third phase of Milton’s residential growth, the previous two having started over the past 10 years. Once all three phases are complete, Halton’s regional staff estimate Milton’s population will be close to 150,000 by 2021.

    An intersting story in this weekend’s Champion on Milton’s development from the ‘other’ side. Farmer Hugh Beaty describes the development approaching his Omagh farm as “they have to have someplace to live.”

    Yes, it’s hard to believe the next phase of Milton’s development will be creeping into the territory of the small hamlet of Omagh, but Mr. Beaty, it’s not that simple…

    Yes, we all knew Milton was primed for a serious population boom as Mississauga and Oakville neared their capacity, but the flipside is that this development comes at the expense of some of Southern Ontario’s and certainly Halton Region’s best farmland.

    It makes you wonder about where or when the Town of Milton should draw the line on their expansion plans. We’ll see as time goes on as to whether the tough economic state we’re in affects those decisions as well.

    Enjoy, and as always, we invite you to leave your comments below.

    From The Milton Canadian Champion:

    For 90 years, Hugh Beaty has watched the once small town of Milton inch closer to his farm near Omagh, in the area formerly known as Trafalgar North.

    Yet, though he was taken away from his home at times — serving in the Second World War, doing charitable work in northeastern Brazil — he was always able to return to a farming community.

    “I’m still living on the farm I was born on,” noted Beaty, whose family name is the namesake of a community and under-construction library branch in the town.

    Soon, though, the retired farmer’s 100-acre property on Fourth Line, just south of Britannia Road, will no longer look out onto flat farmland. Instead, it will be face to face with the growing urban area of Milton.

    “They’re going to come,” said Beaty of the population increases in Milton. “They have to have someplace to live.”

    Where they — up to 50,000 new residents — will live was the subject of a public meeting last week on what is called the Boyne Survey- Education Village secondary plan.

    The 950-hectare Boyne lands are bounded by Louis Saint Laurent Boulevard to the north, James Snow Parkway to the east, Britannia Road to the south and Tremaine Road to the west. The Town is also including the 165-hectare area known as the Education Village at the northwest corner of Britannia and Tremaine roads in the secondary plan.

    Beaty, along with more than 50 other local residents, attended the session to find out what planning has already been undertaken by the Town in preparation for opening up the area to residential development, perhaps by 2013.

    According to the Town’s planning consultant, Liz Howson, much of the background research on the Boyne area has been completed, including sub-watershed studies and retail requirements to service the proposed community.

    The Boyne Survey will be the site of the third phase of Milton’s residential growth, the previous two having started over the past 10 years. Once all three phases are complete, Halton’s regional staff estimate Milton’s population will be close to 150,000 by 2021.

    What might distinguish the Boyne area compared to the first two growth phases, according to Howson, is a focus on transit-supportive development. This would include higher density development at the intersections of major streets and a possible transit hub located at the Education Village, which is the proposed site for a campus of Wilfrid Laurier University.

    Planning has already begun for widening important traffic corridors as well. The Region foresees the widening of Tremaine from Britannia to north of the 401 starting in 2013, with a portion between Derry Road and Main Street in 2011. And the Region will start an environmental assessment for the widening of Britannia between Tremaine and Trafalgar Road this year, said Town planner Bill Mann. Construction on Britannia is also scheduled to begin in 2013.

    The next stage in the planning process is the creation of land use options in the Boyne survey area. The options will be the subject of another public workshop Thursday, Mar. 5, before being whittled down to a preferred option to go to Milton council for approval.

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    Posted in Environment, Halton, Hawthorne Village, Milton Development, Real Estate, Transit, University

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    Mattamy Homes: Between Bricks and a hard place

    January 20th, 2009

    It looks like the times they-are-a-changin’ in Mattamy land:

    From YourHome.ca:

    Mattamy Homes CEO Peter Gilgan in his Oakville office.

    Mattamy Homes CEO Peter Gilgan in his Oakville office.

    As new home sales slip into a deep freeze, even Canada’s No.1 house builder is having to remodel

    Peter Gilgan shuffles a clump of paper on his large wooden desk. “These are all the bills,” he jokes to a photographer.

    As the largest house builder in Canada, Gilgan has taken proactive steps to avoid those looming bills as sales slow in the North American real estate market.

    His company, Mattamy Homes, laid off 50 staff in November.

    In a memo to employees, Gilgan called it “the most difficult and humbling” action he has had to take in his 30 years as a business leader.

    “The housing market is certainly not going to be as buoyant as it was. There are different expectations today than expectations from a year or two ago,” says the developer, sitting in his Oakville boardroom.

    On a crisp January day, Gilgan, 58, is suffering from a cold, but he is genial when greeting guests for a rare interview. Despite the fact he’s the CEO of the country’s largest builder of detached homes, with more than 40 sales and construction sites up and running throughout North America and more than a billion dollars in annual sales, the chartered accountant has always preferred to remain behind the scenes.

    But Mattamy’s fortunes are in many ways symbolic of what is happening in Canada’s softening real estate industry, especially because of its leadership position.

    According to the latest figures from the Building Industry and Land Development Association, total new-home sales in the GTA for the first 11 months of 2008 were down by 35 per cent. For low-rise homes, which Mattamy builds, industry-wide sales were off by 39.1 per cent. New-home companies have slashed prices and given away free trips and cars to entice buyers. Taking a page from the beleaguered car industry, Mattamy introduced “employee pricing” at select American sites last year, extending the same discounts to the public as to their employees.

    According to Gilgan’s figures, his company is doing much better than the average builder, closing 4,031 homes in 2007 with $1.5 billion in revenue and “just under” 4,000 homes in 2008 with $1.4 billion in revenue. The company has some 1,000 full-time employees.

    But all bets are off for this year.

    “The scope of the economic change is way beyond anything I anticipated,” Gilgan said in his memo.

    One could argue that because of the company’s size, as goes Mattamy, so goes the nation – or at least the fortunes of municipalities in the GTA. So far, a greater-than-expected drop in the real estate markets has taken a toll.

    Over the past couple of months, Mattamy has consolidated administrative staff from across the GTA into its Oakville headquarters, and has also closed its Markham office.

    “The decision reflects an anticipated further decline in volumes in our order book,” says Gilgan. “The net result is that we will cease to operate as three distinct divisions in the GTA and will manage as one organization from one location.”

    Gilgan says that to move homes during the downturn, the company has been “aggressively re-pricing our products and addressing design and quality processes.”

    Meanwhile, concerns are mounting about the financial impact the housing downturn will have on home builders across the board. Mattamy expanded aggressively in the United States. The company has multiple sites in four states including Florida, which has become ground zero for the subprime crisis.

    Gilgan insists Mattamy is actually in “better” shape than it has been in the past, despite the credit crunch that has crippled some developers.

    “We continue to owe less money so I’ll say things are better,” he says. “I lament that there aren’t more opportunities to invest.”

    He points out that ratings agency Standard & Poor’s recently left his company’s rating unchanged at BB.

    “There aren’t too many builders out there that can say the same thing,” he says. “We require very little outside financing and we have a willingness of lenders who continue to lend to us.”

    (According to Standard & Poor’s, a BB rating goes to a company with “marginal financial security characteristics. Positive attributes exist, but adverse financial conditions could lead to insufficient ability to meet financial commitments.”)

    In the U.S., meanwhile, sales are “starting to climb out of the basket,” says Gilgan. “Sales were down significantly.” They were, however, better in December, and January has been looking “positive,” he says.

    Sales in Canada have also dropped because of delays in getting some projects off the ground, Gilgan says. He blames a progressive tightening of requirements by municipal and regional governments that has made it difficult for developers to accurately predict when their land will be approved.

    “As developers we’re not expecting a handout, but we’re hoping that government can help us to expedite land development in a cost-effective way.”

    Gilgan warns that delays in some GTA projects caused by red tape could mean more layoffs at Mattamy this year.

    “Are we going to lay people off? Maybe. But it wouldn’t necessarily be because of the economy or the market,” he says. “If I can get my communities approved, then we’ll have growth. If not, then we’ll have shrinkage.”

    Growth, not retreat, has been the path of Mattamy for the last decade. Certainly last year, the company’s 30th anniversary, should have been one of celebration for Gilgan, who has been the industry’s poster boy for the last decade – for his success as well as his philanthropy.

    Mattamy has won every conceivable builder’s award, including a third J.D. Power award in 2008 for new home buyer satisfaction for the Greater Toronto Area. The year before that, Gilgan took home the prestigious Ernst & Young Canadian Entrepreneur of the Year title, taking his place among the Canadian business establishment.

    In Oakville, the former home that he shared with his now ex-wife and eight children was the grandest symbol of success. Edgemere sold last summer for an estimated $35.5 million, the largest price for a single family home in the province.

    But nothing is forever – at least in the development business. The new owners plan to tear down the 32,000-square-foot mansion that Gilgan built and replace it with 10 luxury condos.

    “I put a lot of work into it, so for me it was my attempt at art, since I can’t draw a stick man if you paid me. I put my artistic expression in my homes,” says Gilgan, who remembers flying to France just to buy door hardware and crystal for the home.

    “It was a lot of fun, and I got a lot of gratification out of it. But the new owners paid for it and they can certainly do what they want with it.”

    As the company heads into a downturn, Gilgan says he’s looking at ways to improve the business and relationships with partners to lay the seeds for when things turn around.

    “For over 13 years we have enjoyed the longest growth market cycle that anyone in the GTA can recall,” he says. “It has gone on for so long that many in our industry may not even realize this is a cyclical business.”

    Under Gilgan’s leadership, Mattamy has been a true innovator. The company is known for its “wide lot” brand, where the use of wider lots instead of the traditional long, narrow lots allows Mattamy to offer more interesting elevations and designs at more affordable prices.

    And taking a page from car assembly lines, the company also has a division that builds homes in an indoor plant, avoiding weather delays.

    “We have always tried to see everything from the customer’s viewpoint,” says Gilgan, explaining the company’s success.

    “And we’ll continue to do that, even when times are tough. We’ve seen this story before.”

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    Motion won’t affect Milton

    November 21st, 2008

    With his councils backing, Carr will go to a planned meeting with Infrastructure Minister George Smitherman in early December to make his case that growth has not been paying for itself – and things have to change.

    This development in Oakville, north of Dundas will be affected by the motion to stall growth in Halton.

    It looks like Gary Carr’s motion to stall Halton development will have little or no affect in Milton.

    Here is the latest from Milton Councillor Colin Best, from a recent thread on the Hawthorne Villager Forums:

    Regarding the Town hall contact call 905-878-7252 and ask for the Building department or check milton.ca under planning and building for details on the application. 

    Regarding the motion the prime area which are affected is the OPA 8 area which is the proposed 18,000 homes in Oakville north of Dundas St. and the possible 6000 homes in the OPA 25 area in Halton Hills west and south of the current Georgetown area. 

    Both areas require large infrastructure requirements such as the new Oakville Hospital at 3rd line and Dundas (you can see the sign at the north-west corner) the estimated cost of the hospital alone is $ 700+ million with the Province delaying approval to go ahead with plans for a possible 2013 opening. Also there is a need to fully account for the financing of these areas before they go ahead as the current Development Charges Act only funds about 82% of the cost of growth due to exemptions in the Act for various services and no capital plan from the Province on such things as highway and school funding over the next 10 years even though the Province requires Towns and Regions to have a 10 year capital plan to justify the associated Development Charges. 

    The motion does not affect current Milton area development but may slow the approval of the Phase 3 Boyne Survey area south of Louis St. Laurent Blvd. from Tremaine to James Snow Parkway. Milton Council has similar concerns regarding the cost of development and lack of approvals and funding for the Milton Hospital expansion which is estimated in the $ 180+ million range. The region has requested Milton Council to review and comment on the motion. 

    Will be posting more information as soon as I know. 

    Also understand Phinjo Gombu of the Toronto Star is doing a feature story on Milton and Halton’s growth in the next few days to follow up on the motion and infrastructure concerns. 

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    Showdown looming in Halton

    November 20th, 2008

    Regional council passes resolution to stall growth of new developments if province doesn’t pay

    With his councils backing, Carr will go to a planned meeting with Infrastructure Minister George Smitherman in early December to make his case that growth has not been paying for itself – and things have to change.

    With his council's backing, Halton Regional Chair Gary Carr will go to a planned meeting with Infrastructure Minister George Smitherman in early December to make his case that growth has not been paying for itself – and things have to change.

    On behalf of all Miltonians who have put up with lack of infrastructure in Milton relative to the Town’s feverish growth in population over the last 8 years, kudos to Gary Carr for laying down the gauntlet to Queen’s Park.

    This has been a huge issue in Milton and elsewhere in Halton Region for years now, so it’s great news that Carr, backed by his council, will have a meeting in early December with Infrastructure Minister George Smitherman. Of course, Smitherman is on record as saying that Carr is simply “grandstanding.”

    Right.

    He’s just been “grandstanding” – of course there’s no issue in Halton (specifically Milton — Canada’s fastest-growing city) with things like traffic, daycare availability or funding for Milton District Hospital.

    From MiltonSearch.com news:

    “The tipping point for Halton, which has had to hike property taxes repeatedly to make up the difference, has been the issue of hospitals. With two new hospitals needed in the region and two expansions in the works, councillors are balking at being forced to pay what the province considers the region’s share – as much as one-third, or about $300 million – to provide facilities sufficient for an expected population growth of 100,000 over the next 13 years.

    Gary Gregoris, vice-president of Mattamy Homes, the GTA’s biggest builder, was present at yesterday’s meeting and said he believes regional councillors are serious.

    He warned, however, that development charge increases would just be passed on to consumers when builders factor them into the price of a new home. If housing prices continue to tumble “and the costs don’t go down, then something has got to give.”

    Anyhoo, stay tuned and we’ll see where this all goes. In the meantime, we invite you to read previous opinions and news on this topic on MiltonSearch.com’s blog and news pages, including the most recent article.

    We encourage you to leave us with your $.02 also by clicking on the comments link below.

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    Posted in Halton, Hawthorne Village, Milton Development, Milton: The Bad, Politics, Real Estate

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    ‘More housing’ for the money driving some of GTA’s largest hikes

    November 5th, 2008

    From the Toronto Star:

    Expanded regional transit, green space nearby and growing development are driving factors behind the largest assessment increases in communities on the outer edges of the GTA.

    Parts of Burlington, Oakville, Milton, Vaughan and Markham can expect to be hit with average assessment increases in the range of 6 per cent to 7.5 per cent for 2009 – some of the largest in the GTA, excluding the downtown Toronto waterfront.

    Despite their geographic separation, a quick look at any city map reveals striking similarities between the five municipalities: all have easy access to major highways, all are serviced by GO Transit, all are close to green space and all have land slated for development.

    Parts of Burlington, Oakville, Milton, Vaughan and Markham can expect to be hit with average assessment increases in the range of 6 per cent to 7.5 per cent for 2009

    Parts of Burlington, Oakville, Milton, Vaughan and Markham can expect to be hit with average assessment increases in the range of 6 per cent to 7.5 per cent for 2009

    “The general process of metropolitan decentralization has been going gangbusters since the Second World War,” said William Strange, a real estate and urban economics professor at the Rotman School of Management. “The general story told is that people want to live in the suburbs because it lets them buy more housing, and that’s part of what’s driving it.”

    Halton, which includes Burlington, Oakville and Milton, is among the fastest-growing regions in Canada. Its population is expected to double to more than 780,000 over the next 25 years.

    The population of Milton alone, currently 58,700, is projected to nearly double by 2021, and the town is currently the fastest-growing community in Canada, according to the 2006 census. It’s also been identified as an urban growth centre under the province’s Places to Grow plan. The municipality has three major new housing subdivisions and a business park in various stages of development.

    “Milton is half an hour to the airport, has GO train service to Toronto, has several nearby conservation areas for people who like the outdoors, and yet it’s still more affordable than other areas in the GTA,” said Linda Leeds, Milton’s director of corporate services.

    The same could be said for Markham, although it’s larger and more developed than Milton.

    Valerie Shuttleworth, Markham’s director of planning and urban design, says high property values can probably be attributed to proximity to the Greenbelt – the preserved area hugs almost the entire northeast quadrant of the town. The fact that outward development is nearing the urban boundary could also be a driver behind the increases.

    “People want to live here because they know it’s going to be green to the east of them forever,” she said. “Areas that are already desirable become more desirable because people’s choices are limited.”

    Vaughan is a unique case in that large areas in the city’s north end are undeveloped but slated for large assessment increases. Vaughan Councillor Peter Meffe (Ward 1) says the large increases in assessments in his ward – the highest for the city – can be attributed partly to the considerable number of “estate home” developments in the area. MPAC tags the average assessment for single-family detached homes in Vaughan at $560,000, substantially higher than nearby Brampton and Markham.

    “These sparsely located, large homes tend to be higher priced and are surrounded by green space,” Meffe said. He added the presence of a relatively affluent neighbourhood in Maple, bordering the Greenbelt and close to schools, public transit and Highway 400, also helps explain the assessment increases in his ward.

    Strange says another factor driving growth comes down to jobs. He notes the GTA has seen a large employment decentralization, driven in part by increases in oil prices.

    “The attraction of the downtown as a place to work has steadily gone down. If you’re in the ‘burbs and you work downtown, the commute costs you a bunch of money,” he said. “Expensive gas prices give businesses even more incentives to leave the downtown and move to edge cities if that’s where employees are.”

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    Posted in Commuting, Environment, GTA, Halton, Hawthorne Village, Home & Garden, Milton Development, Milton: The Good, Real Estate

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