Heckman, Kathryn A. "Towards Building Codes, Land Use ByLaws, and Taxation, that Encourage Conversions from a Single Use to Multiple Uses"

In this thesis, three types of regulations are studied 1) zoning in land use bylaws supported by policies in municipal planning strategies (m.p.s.), 2) building codes, and 3) taxation (income tax and property tax). Zoning and building codes are regulations which provide direct controls. Taxation is more aptly termed an indirect control.

Central to this thesis is the perception that laws relating to conversions to mixed uses restrict development practices. Although other non-legal considerations are also factors, they will not be dealt with here. This thesis is intended to clarify how some regulations concerning taxation, building code, and zoning provisions are impediments for mixed use conversions,. The author believes that each of the regulations discussed could be handled in a positive way favouring conversions to mixed uses - for example, mixed use zones, alternate building codes for renovations, and income tax incentives for renovations and not for demolitions. It is not the mere existence of a regulation, but whether it supports or discourages conversions or mixed uses that is crucial.

In this thesis, the focus is on the city of Halifax, Nova Scotia. However, in general terms it is hoped that the study will be helpful to urban centres Canada-wide. Reference is made to positive aspects of legislation and case studies outside Nova Scotia. To encompass these two objectives each of the three issues is discussed in general terms. This is followed by a specific section that relates each issue to the situation in Halifax.

The literature is reviewed, and suggestions are made about ways to use these regulations to encourage mixed use conversions. Four Halifax interviews are conducted to test the general position of the literature in the local context.

The findings of the interviews are analyzed, to assess the relative influence of the three types of regulations discussed on mixed use conversions.

The interview findings support the information in the literature that mixed use conversions can be impeded by regulations that discourage, or at least do not encourage, mixed use conversions. A summary follows of some suggestions that were made about ways to use these regulations to encourage mixed use conversions.

Some types of zoning, and some features of zoning are more of an impediment than others. Performance zoning or extensive use of mixed use districts seem to be the best choices. Both of these allow mixed use development, as of right, on a broad scale. Other techniques, such as development agreements, may permit mixed use conversions, however they must be negotiated for each project, which can be more expensive and timeconsuming, and lack certainty. A combination of methods may prove to be the best route for a municipality to follow to encourage mixed use development conversions.

Regarding features of zoning which may impede mixed use conversions, stringent setback and parking requirements are the most often-mentioned problems. Using performance standards would help alleviate this. Working within the traditional zoning approaches, municipalities could be more lenient with mixed use development conversions than other types of development as a means of encouragement.

There are numerous examples of building code problems for mixed-use conversions, at the local, national, and international level. The NBCC and its provincial counterparts are better suited for new construction than conversion of existing buildings. Many, including Heritage Canada and the National Research Council, have offered solutions ranging from informally negotiating each project to developing an alternate code for renovations. An alternate code approach seems to be the most effective solution. However, at the local level this solution has not been adopted, and some do not even find it desirable.

Canadian income tax laws do not encourage renovations to the extent that American income tax laws do. The present Canadian position suggests that Canadian legislators either do not agree with the assumption behind this thesis that mixed use conversions should be encouraged, or that the income tax system is not an appropriate means of encouragement. If conversions are to be encouraged at the federal level, changes at least as stringent as the Heritage Canada Foundation proposals discussed in the thesis should be adopted.

To encourage mixed use development conversion through the use of property taxes, local governments should not tax improvements heavily, but make land only taxes heavier. This makes it too expensive to keep land vacant, encourages redevelopment, and discourages deterioration of existing buildings. To further encourage mixed use development conversion, some form of preferential tax incentive could be used which would decrease the assessment rate, or abate or defer taxes for mixed use development conversions.

Where appropriate policies and regulations have been adopted to encourage mixed use development conversions, it is neccessary that they be successfully implemented before any practical benefits can be realized. In the final chapter, factors that influence successful implementation of such zoning bylaws, building codes, and taxation provisions are reviewed.

Atlantic Planners Institute

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This document was last modified on January 9, 2001.