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April 29, 2002
Over $2 million a hectare
GET RICH QUICK — SELL LAND TO BROKE CITY!

Taxes are going up and budgets are very tight, but the City of Hamilton is about to pay half a million dollars for less than a quarter hectare of land. The 0.23 hectare property is located at 168 Mud Street. A recommendation being presented to Council on April 30 advises the City to pay $500,000 to expropriate the land. The former Regional government offered the owner $100,000 when it initiated expropriation proceedings on the vacant property in 1989 as part of the north-south Red Hill Creek Expressway project.

Paying massively inflated sums to property owners lucky enough to be in the path of the proposed expressway is becoming a regular activity of Hamilton councillors.

Since 1999 more than $4.7 million has been spent acquiring slightly more than 2 hectares of private land for the expressway. The average cost is nearly $2.2 million per hectare. This is more than 60 times the price paid for the parkland in the valley itself which was sold by the former City of Hamilton to the Regional government in 1997 for less than $35,000 hectare.

The following table summarizes the four most recent expressway purchases:

Land Description Year
Hectares
Cost
Price per Hectare
Red Hill Valley parkland 1997
65.388 ha
$2,233,300
$34,155
Paletta International lands, 272 First Road W. 1999
0.85 ha
$1,264,444
$1,487,581
473/477 Nash Road 1999
1.036 ha
$2,950,000
$2,847,490
168 Mud Street 2002
0.23 ha
$500,000
$2,173,913

The $500,000 would certainly come in handy this week as councillors grapple with a very difficult budget. It could be used to pay the $265,000 for critical promotion of the City’s ambitious waste diversion program, plus the $105,000 for special collections of household hazardous waste — both projects classed as "unaffordable".

Or it could be used to avoid the proposed $20 per item charge for curbside pickup of ‘white goods’, and the proposed doubling of the minimum charge per vehicle for waste dropoffs at the City’s transfer stations. Together these two new fees are expected to generate $401,000 in new revenue.

Or it could allow the councillors to forget about almost all of the $311,000 in HSR service cuts as well as the $212,000 in planned reductions of grass cutting on parks and boulevards.

Or the Council could actually meet the full budget requests of both the Hamilton Conservation Authority and the Royal Botanical Gardens, instead of cutting $312,000 from the former and $100,000 for the latter. Indeed, there would be even enough left over to provide the $50,000 promised to the Hamilton Naturalists’ Club for a biological inventory of the City’s significant natural areas.

Or, to really get a big bang for the buck, they could simply cancel all of the following cuts, and have enough left over for a fancy dinner for every member of City Council:

Budget Items Currently Listed as Unaffordable
Amount
Mechanical sweeping of goose poop from Bayfront trail (listed as "unaffordable")
$2,580
Two student staff to enter Tree Inventory data ("unaffordable")
$15,490
Presentations by Public Health nurses to grade 1 and 2 students (cut)
$17,500
Tree planting by Green Venture (cut)
$20,000
Hiring five new school crossing guards ("unaffordable")
$25,340
Hire one staff to administer downtown renewal loans and grants program ("unaffordable")
$43,580
Not closing 16 swimming pools for an extra week per year (cut)
$45,000
Not imposing an 11% cut in "cemetery operating activites, internments", etc. (cut)
$45,280
Continue funding of the "Clean Air Hamilton" air quality improvement group (cut)
$60,000
Carry out testing of emergency power generators for Copps Coliseum, City Hall, Hamilton Place, Central Library, Farmers’ Market, and Central Utilities Plant ("unaffordable")
$100,000
Not delay recycling programs for 1/3 of City’s apartment buildings (six month delay)
$125,000
TOTAL
$499,770

Should the councillors get in the spirit of ending the real "unaffordable" spending, they could also cancel the long outdated plans to build an expressway in the Red Hill Valley, thus avoiding putting the City another $79.1 million in debt. Debt payments in this year’s budget already amount to $46.5 million, or over 20% of the portion of the budget that Councillors directly control. Borrowing for the expressway and other projects is projected to more than double the City’s debt in the next four years, from a current level of $246 million to $529 million in 2006.


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