Vancouver’s 6-year Director of Planning has been fired by city council. In lieu of a normal transition process, the city has fired Toderian without an immediate replacement. While it is not clear why Toderian was fired, the abrupt decision came after a period of heightened tension with prominent developers, including disagreements with Holborn Group at Little Mountain and Wall Financial Corp at Shannon Mews.
At a press conference today the Mayor stated that Toderian’s dismissal was prompted by the need for “new leadership to deal with new challenges facing the city, especially around housing affordability and economic development.” Rather than focusing on Toderian’s conflicts with developers, Robertson and the city stated that a new planning director should be capable of “balancing competing demands” between affordability on the one hand and market development on the other.
City hall insiders, however, were less vague than Roberston. Bob Ransford emphasized that Toderian “had a hard time with the necessary political skills needed to keep developers on your side.” Michael Geller also acknowledged that Toderian was “unpopular with many developers.” Mike Klassen was even more direct: “Let’s be clear about why Brent is leaving the City of Vancouver now. First, the development community by in large didn’t support him.” This analysis by Vancouver’s three “in-house” right-wing commentators was echoed by a fourth right-wing perspective, from Jeff Lee.
Lee pointed to the development community’s ongoing refusal to pay normal development taxes. According to Lee, Toderian was fired because he was “responsible for enforcing a controversial ‘community amenity contribution’ (CAC) program.” Far from being controversial, the CAC program is a simple tax placed on private developers in exchange for community amenities like daycare, recreation centers and artist studios. While Lee would give the impression that CAC’s are onerous and dig into “the bulk of profits,” the small CACs have virtually no impact on the developers’15 – 20% minimum profit rate.
For the past few years, Toderian and the planning department have also been butting heads with development corporations over the normal taxation on market development with respect to the land zoning process. In Vancouver, land-value is tied to the amount of development allowed on a site, which city planners term the Floor Space Ratio (FSR). When the FSR is increased, it most frequently means that the allowable building height has been increased, therefore the process is called “upzoning” or “land lift.” Upzoning automatically increases the value of the land commodity, but as with most things at city hall, the developer is not required to pay the full value of its commodity: on average, developers are required to pay 75 – 80% of the upzoned value. Sometimes this amounts to millions of dollars of free money if the land has been purchase prior to rezoning.