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UBC Theses and Dissertations

Towards a model of the urban development process Gutstein, Donald Irwin 1972

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TOWARDS A MODEL OF THE URBAN DEVELOPMENT PROCESS by Donald I. Gutstein B.Arch., University of British Columbia, 1968. A Thesis Submitted in Partial Fulfilment of The Requirements for the Degree of Master of Architecture in the Department of Graduate Studies School of Architecture We accept this thesis as conforming to the required standard The University of British October, 1972 Columbia In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the r e q u i r e m e n t s f o r an advanced degree at the U n i v e r s i t y of B r i t i s h C o l u m b i a , I a g r e e t h a t t h e L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s t u d y . I f u r t h e r a g r e e t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y p u r p o s e s may be g r a n t e d by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s . I t i s u n d e r s t o o d t h a t c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n . The U n i v e r s i t y o f B r i t i s h C o l u m b i a V a n c o u v e r 8 , Canada Date ABSTRACT i TOWARDS A MODEL OF THE URBAN DEVELOPMENT PROCESS In recent years, dissatisfaction with the quality of the urban environment has become widespread, and opposition to many development proposals has been mounted by citizens groups across Canada. Yet all attempts to improve the environment so far have proved relatively ineffectual. The thesis argues that the environment will continue to deteriorate unless massive changes are made in the structure of decision making which surrounds the urban development process; the major change required being meaningful partici- pation by citizens in making the decisions that affect their lives. A first step towards this goal is the attainment of a clear and comprehensive understanding of how urban develop- ment occurs at present. Citizens must be informed before they can be involved. The thesis presents an initial description of the urban development process and outlines the conceptual basis for the construction of a simulation model of the process. It is argued that because of the complexities of urban develop- ment, a simulation technique seems appropriate. Given an operating model, it would be possible to test proposals for change on the model before implementing them in reality. Using Metropolitan Vancouver - a typical Canadian urban region - as a data base, the thesis examines the types of public dissatisfactions with the urban environment. These are then translated into the more general categories of urban problems, such as soaring housing costs, transportation congestion, urban sprawl, poverty, pollution and so on. Through a literature survey a number of processes suspected as being related to these urban problems were identified. Two kinds of processes emerged: those which lead to population and economic growth (the ones usually considered in urban models), but also those processes which constrain policy formulation and implementation, such as fragmented authority, inadequate research and development, uncoordinated planning, the pressure of developers. Both types need inclusion in the model. These processes were investigated through a number of case studies of the system in action: downtown redevelopment schemes, Vancouver transportation proposals, a public urban renewal project, a shopping centre proposal, etc. Basic chronologies of events were prepared for each case; the events were then abstracted into a set of actions with the (organizational and individual) actors who engaged in them and the criteria (goals or constraints) upon which the actions were based. These actions were then grouped into related processes. A preliminary conceptual mock-up of the model was made, and a program of research outlined which involves the analysis of factors affecting major processes and the develop- ment of values suitable for computer manipulation. At this stage of the work it appears that the building of the model is indeed feasible and that such a simulation will prove most useful in understanding the urban development process. Supervisor iii TABLE OF CONTENTS CHAPTER I Introduction 1 A. Purpose of the Study 1 B. Outline of Work 8 CHAPTER II A Conceptual Framework 15 A. /Inappropriateness of the Concept of the Industry B. A Systems Approach to Urban Development 25 C. Changing for the Worse? 45 CHAPTER III The Urban Development Process 52 A. Urban Problems and Processes 52 B. Sample Problem/Process Analysis.. .. 64 C. Decision Making Models 83 CHAPTER IV The Urban Environment Production System (UEPS) 93 A. An Empirical Basis 9 3 B. The Organizational Constitution of UEPS 97 C. The Outputs of UEPS 112 D. Public Reaction to Urban Development 131 CHAPTER V The Vancouver Context 137 CHAPTER VI Towards a Model of the Urban Development Process 154 A. Analysis of Case Studies 154 B. A Diagram of the Urban Development Process.. 163 C. Future Work I 8 4 NOTES I 8 7 BIBLIOGRAPHY 197 APPENDIX A. APPENDIX B. APPENDIX C. APPENDIX D. APPENDIX E. iv Major Canadian Urban Problems and Factors which Generate Them. Profiles of Selected Development Companies and Financial Institutions. Major Building Permits Issued, City of Vancouver, 1957-70. A Sample of Public Reaction to Urban Developments in Vancouver. Chronologies of Case Studies 1. Coal Harbour Development Proposal 2. Freeway Proposals 3. Strathcona Urban Renewal Schemes V LIST OF TABLES Canadian Urban Problems Enumerated in Three Sample Sources 5 6 II Factors Leading to Major Urban Problems., III Total Debt Outstanding by Capital Market Instrument, Canada, 1953 and 1967 60 69 IV Mortgage Loans Outstanding by Type of Investor, Canada, 1967 V Mortgage Investments of Financial Institutions and Other Investors as a Percentage of Total Assets, Canada, 1967... 77 VI Corporations & Labour Force Engaged in the Urban Development Process 98 VII Companies in Metropolitan Vancouver Engaged in Urban Development 100 VIII Major Public & Private Development Companies, Canada, 1970 101 IX Major Life Insurance Companies, Trust and Loan Companies and Chartered Banks, Canada, 1970 110 X Total Value of Construction Work Performed in Current Dollars, as a Percentage of Gross National Expenditure, Canada, 1961-70 113 XI Total Value of Construction Work Performed by Principal Type of Construction, Canada, 1967-70 H 5 XII Total Value of Construction Work Performed by Type of Structure, Canada, 1970 118 XIII Dwelling Starts by Housing Type, Canada, 1961-70 121 XIV Total Value of Building Construction Work Performed by Building Type, Metropolitan Vancouver, 1961-70 122 vi XV Dwelling Starts by Housing Type, Metro- politan Vancouver, 1963-70 124 XVI Apartment Unit Completions by Municipality, Metropolitan Vancouver, 1963-68 126 XVII Major Construction Projects, Lower Mainland, 1966-68 127 XVIII Major Construction Projects by Principal Type of Construction, Lower Mainland, ' 1966-68 I 3 0 XIX Possible Indices of Urban Health and Malaise I 3 2 XX Examples of Public Reactions to Urban Development I 3 5 XXI Sample Page from Chronology of Coal Harbour Redevelopment Proposal 156 XXII Preliminary Analysis of Coal Harbour Development Proposal Case Study 159 XXIII Municipal Rezoning Pattern of Events 162 vii LIST OF FIGURES 1 General Outline of the Urban Environment Production System (UEPS) 2 6 2 Major Participants and Influences on the Building Process 2 9 3 An Hierarchical Decision-Making Structure , (Hypothetical) 4 0 4 Possible Channels for the Transfer of Funds from Savers to Users 6 7 5 Private Capital Market Allocation of Funds... 71 6 Total Canadian Assets of Selected Financial Institutions, 1950-69 78 7 Total Mortgage Loans of Selected Financial Institutions, Canada, 1950-69 79 8 Conversion of Rural Land to Urban Uses 81 9 Municipal Government Urban Development Policy Process 10 Allocation of Funds - Municipal Government... 82 11 Urban Land Market 8 2 12 Dwelling Completions by Type of Construction Metropolitan Vancouver, 1963-70 125 13 Map of Downtown Vancouver 144 14 Diagram of the Urban Development Process 165 15 Distribution of Completed Developments 176 16 A Subculture/Activity Setting Model of Public Response to Developments., 183 viii ACKNOWLEDGEMENT I am undebted to many people and organizations who helped in various aspects of this work. Part of the work was carried out under a Canada Council research grant. I am grateful for a Central Mortgage and Housing Corporation Fellowship which was of inestimable value during the two years of the project. Andrew Gruft and David Whetter helped with many of the knotty conceptual problems and David Whetter provided considerable help in the survey of existing data sources and the development of the case study method. To Rob Kleyn, for his work on the Coal Harbour study, to Charles Haynes, Ken Bartesko and Craig Strand for their work on the Freeways study, to Sherri Smith for the Strathcona Urban Renewal study and to the members of the Vancouver Urban Research Group for background material on the Vancouver City Hall organization, a special tanks. None of them should be held responsible for the use or misuse of their material. Finally, the deepest thanks to my typist Sandra Redmond who helped to sustain me during the darkest hours. CHAPTER I - INTRODUCTION 1. PART A. - PURPOSE OF THE STUDY This paper is about the inability of citizens to participate positively and effectively in the development of their cities. Until recently citizens did nothing. They assumed that someone was running their cities in the best interests of the general public. Then things started going badly. Traffic congestion, inadequate housing, pollution, urban decay and sprawl had come to threaten every major Canadian city. People began to realize that the someone who did make the major decisions that affect their lives didn't know what he was doing, or if he did, it was only for the benefit of a lucky few. Plans for whole urban regions were predicated on the needs of a handful of developers and speculators and their real estate friends on municipal councils. People began to react. They opposed all major developments. They complained about the congestion, noise and pollution which would be generated by a scheme; they bitterly opposed the freeways deemed necessary to service these large developments; they pointed to the utter lack of human values in planning development. Perhaps because of its splendid natural setting, Vancouver has a long and bitter history of opposition to proposals of various kinds. Its citizens have been fighting freeway plans since 1960; they have opposed plans for a large development near Stanley Park three times in ten years. They have stopped two developers from constructing a.huge shopping centre in the midst of an upper 2. middle class residential area. They have fought many high rise proposals and plans for commercial developments.1 But the same is true in many Canadian cities, the most famous case being the Spadina Freeway in Toronto. Even residents of smaller centres such as St. John's, Halifax, Kitchener and Victoria have begun to fight. Indeed, citizens have won a few temporary "victories". They stopped the developers and the planners and the traffic engineers. But things didn't change. The traffic engineers were back the next year with a new freeway proposal. If the developer encountered too much opposition to his highrise scheme, he just put it away for a year or two until things cooled down, then trotted it out again. This brush fire or stop gap method of citizen participation in urban development cannot go on. Citizens are forced into negative, almost desperate, situations again and again. They oppose this development; they oppose that development. But they are never able to make a more positive and productive contribution. Development becomes a secret process where developer, financier and municipal official have made all the major decisions before the public ever hears about the scheme. So all development and decision making becomes suspect and the whole process becomes polarized. Citizen's groups want only parks, open spaces and low density development. The development camp 3 . wants to fill in parks with high density projects and freeways. Given such a highly-charged, volatile situation, the likelihood of good planning and development decisions is greatly reduced. Planners have very little real contact with the public - the ultimate users of their developments. People's needs, goals and ambitions are taken account of only as market demands, economic trends and age group distributions. The current situation is totally unacceptable given the profound impact of the urban development process on all our lives. Every city dweller requires the use of hundreds of physical facilities as he goes about his daily rounds in the attainment of his goals. He drives on roads, relaxes in parks, shops in supermarkets or corner stores, lives in houses or apartments, works in office buildings or factories. Virtually no urban activity is possible without the support of physical facilities. Therefore he must have a more adequate voice in how these facilities are conceived, planned and produced. If the situation is to improve, our goal must be the implemen- tation of meaningful citizen participation in urban decision making based on a clear understanding of urban processes by both technically-trained professionals and the lay public. Citizens have to be both informed and involved. The first objective in moving toward this long-range goal should be the attainment of a clear and comprehensive understanding of 4. how development actually occurs at the present time. What underlying processes are at work to produce the urban environment? How do these processes generate the conditions that citizens are reacting against? If we could answer these questions, if we could identify the problem areas in the urban development process, and appraise the factors leading to these problems we could make realistic proposals for improving the whole climate of decision making. The need for comprehensiveness should be underlined. There have been many studies of parts of the process: the construction industry, the housing market, real estate financing, land use planning, the public economy, etc. Rarely has there been a study of the "total process of preparing, producing, distributing 2 and servicing the physical environment". And yet, without comprehensiveness, understanding is inhibited. As Goldberg and Holling have pointed out: "However important and necessary the analyses of individual fragments are, their value is drastically limited if there is no uniform framework to provide insight into the action of, and the interaction among, all the significant parts of the system." The most obvious feature of the urban development process is the complexity of interaction among the component parts, complexity 4 being a property of all social systems. Forrester notes a basic difference between complex systems and the simple 5. 5 mechanical ones with which we are most familiar. In simple systems, cause and effect are directly related through a first order negative feedback loop, as in driving a car or picking up a glass. When the foot is applied to the brake, the car slows down. The hand reaches the glass and picks it up based on a series of small negative feedback interactions of how close the hand is to the glass and continual muscular adjust- ments until the hand reaches the glass. "But in complex systems cause and effect are often not closely related in either time or space....The complex system has a multiplicity of interacting feedback loops" both positive, governing growth processes and negative, governing goal seeking. "In the complex system the cause of a difficulty may lie far back in time from the symptoms, or in a completely different and remote part of the system. In fact, causes are usually found, not in prior events, but in the structure and policies of the system."7 There are many people with apparently good, intuitively-based ideas for how to get a better urban environment. They tell us that we need regional government, or regional planning, or more research and development, or more money for low-cost housing. Yet, as Forrester noted, "intuitive plans to solve complex urban g problems often produce results opposite from those intended." There are many examples which illustrate Forrester's "law": 6. efforts to ameliorate the living conditions of the poor in a particular city attract more poor families to the city, lowering the living conditions; or efforts to decrease automobile congestion by building freeways attract more development, more cars and very soon, greater congestion than before. Consequently, Forrester and others have concluded that a promising strategy for dealing with complex systems is to construct computer models of the system, which, by simulating the system's behavior, can reveal the dynamic characteristics of the system's structure and the. relationships among its components. If the system's behavior could be simulated realistically, then an adequate basis would exist for suggesting ways to improve the urban development process. The possibility of counter- intuitive consequences to our actions makes it desirable to ensure that they do achieve the desired results. We could test our proposals on the model before implementing them in the real world. Such proposals might include creating a publicly owned land bank, establishing neighbourhood governments, or establishing local financial institutions. The simulation technique allows us to observe the unanticipated and usually undesired effects of those changes and to design ways to avoid them. This study presents an initial description of the urban development process and outlines the conceptual basis for the construction of a simulation model of the process. It pays special attention to the methodological issues involved in 7. detailing the sources of public discontent and how that discontent might be used as a focus for developing appropriate research methods. This study differs from other studies of urban regions in one critical aspect. Other studies model the demographic and economic processes of regions and test various policy proposals on the simulation. The consequences of implementation of the policies are then presented to a decision-maker who makes the appropriate decision. However, this study begins with the dissatisfaction with the actions of present decision-makers. It hypothesizes that most of the problems facing Canadian cities derive from the ways in which decisions are being made and the ways in which citizens are excluded from the whole policy and planning process. Other studies aim to increase the decision-maker's awareness of the development process in the hope of making "better" decisions. This study aims to increase public awareness of the development process in the hope of increasing public participation. It is based on the belief that planning must be done by people, not for people. 8. PART B. - OUTLINE OF THE WORK The paper starts by presenting, in Chapter II, a conceptual framework and a value orientation to the study of urban development. It rejects the concept of the industry, the traditional organizing notion for studying urban development. In that theory, people are treated as consumers whereas this study conceives of participants. Further, the products of the development "industry" stand in a different relationship to the public than those of every 9 other industry. Whereas the products of other industries, such as foods or drugs or appliances are mainly a matter between producer and consumer, buildings, parks, roads and other products surround and affect everybody, not just the "consumer". Finally, the traditional theory of industrial organization assumes that markets are regulated by governments for the protection of consumers. But governments at all levels are so actively involved in all aspects of the development process, as developers, builders, owners, money-lenders and even users, that this concept does not apply. For these reasons, the concept of an industry is rejected. Because of the complexity of the development process, and 9. because of the need to deal with structural problems, the notion of the urban environment production system (UEPS) is presented and expanded in terms of system concepts. The system is composed of those processes whose interactions produce the urban environment. The system has goals of production and organization, exists in an environment, has resources available to it, and is structured in a manner which aids in the fulfill- ment of its goals. It is the structure of the system and its inability to adapt to new conditions - to allow citizens to participate in the setting of system goals and of the means to.achieve them - that requires examination. The system is changing, of course, but it seems to be changing in the wrong way - becoming more centralized and bureaucratized in the attempt to achieve its goals more efficiently and economically - thus removing citizens further from the decision making process. What are the major processes which should be included in a model of urban development? In Chapter III the literature on Canadian urban studies is surveyed to derive a list of what are considered to be the major urban problems facing Canada today and the factors involved in leading to these problems. These factors suggest processes that should be in the system, since they are the processes presumed to generate urban problems. If we have been comprehensive, we should be able to simulate the conditions leading to the current urban situation. 10. This analysis leads to the inescapable conclusion that most of the problems facing urban Canada are generated by inadequate or misguided decision making i.e. the political and administrative aspects of urban processes and that the economic, demographic and technological aspects are of only secondary importance. Evidence for the conclusion is presented in the form of a detailed example of how critical processes are derived. This example deals with the problem of the high housing costs facing most middle and low income Canadians. Critics generally identify the high cost of mortgage funds as a major component of the problem which is often attributed to an inadequate supply of funds for mortgage loans. One is thus led to examine the process whereby funds are allocated to demand segments. Having identified critical processes, the problem then is how to describe them and relate them in a systematic way. Chapter III ends with a discussion of the uses of simulation models and an argument for the feasibility of building a decision making model of the urban development process. A model of decision processes seems feasible if authority and power is fragmented, if the model builder is outside the system, if the probable time to implemen- tation of policy change is short. All three conditions are shown to be met in the urban development process. 11. Chapter III presented a static picture of a series of separate unrelated processes: municipal policy-making, allocation of funds to demand segments, developers search for new business, etc., etc., Chapter IV presents an empirical background for the construction of the model. What is the extent of the urban environment production system? What kinds of organizations and institutions are normally included in the system? What does the system produce? Brief surveys are presented of the value of sales and assets held by the system's organizations, the number and kinds of organizations and profiles of typical development companies, financial institutions and government organizations. Finally the major types of public dissatisfactions with the system's outputs are tabulated. This paper limits itself to studies of the system as it operates in Metropolitan Vancouver (Greater Vancouver Regional District) assuming that it is a typical Canadian metropolitan area and thus could act as a basis for a model of sufficient generality to apply to Canada as a whole. Important regional differences, such as provincial regulations, forms of metropolitan government and regional economics, would be taken account of at a later stage. Chapter V describes the Vancouver context for the urban development process to familiarize the reader with its municipal and provincial organization and some of the major influences on 12. development. It also tells briefly, the stories of the case studies which are analyzed in the next Chapter. Chapter VI describes and illustrates the method proposed for building the model of urban development. Using the case studies described in Chapter V, the method involves (a) the preparation of a chronology of events; (b) an analysis of each event noting the underlying decision upon which the action was predicated; (c) an informed guess at the criteria (goals plus constraints) determining the decision. Many groups of actions seem to occur in an invariant sequence and the deter- minants of these sequences are sought out. Are they formalized: the order set down in the Vancouver Charter, for example? Or are they informal: the normal way of "doing business" that has become established over the years? One such sequence of decisions - rezoning - is described. These sequences are then related to the non-empirical processes derived in Chapter III, as a diagram of the urban environment production system. Hopefully the diagram is comprehensive and describes the extent of the system, the major processes involved in urban development and the critical feedback loops. The processes included are: 1. Municipal Government Urban Development Policy Formulation. 2. Private Capital Market Allocation of Funds to Urban Development. 3. Urban Land Market 4. Development Selection Process. 13. 5. Municipal Assessment of Development Proposals. 6. Development Execution Process. 7. Distribution and Maintenance of Completed Developments. 8. Provincial Government Land Development Policy Formulation. 9. Federal Government Urban Development Policy Formulation. 10. Public (Municipal, Provincial, Federal) Allocation of Funds to Urban Development. 11. Use and Assessment of Developments. 12. Construction Labour Supply. 13. Manufacture and Supply of Building Materials and Equipment. 14. Supply of Technical Expertise. Each process is briefly described as a flow of money, land, materials, labour and information and a number of variables which affect the rate of the flow.1^ One of the case studies is followed through the diagram as a further aid to understanding. Clearly, the construction of an operating model is still a long way off. But this pilot project has a more modest goal: to demonstrate that the building of a decision model of urban development is both worthwhile and feasible. To be worthwhile, the model must increase our knowledge and understanding of how the system operates; to be feasible, it must be buildable in a form which would help us to achieve this understanding effectively and economically. 14.. Given the abysmal ignorance of citizens about how their cities do get built, this study points out, at least in a very pre- liminary fashion, ways in which that ignorance may be overcome and hopefully adds to the dialogue on the urgent need for public participation in the shaping of the urban environment. CHAPTER II - A CONCEPTUAL FRAMEWORK 15.. This Chapter first examines the concept of the building industry which is the traditional basis for studying the urban development process. After pointing out severe limitations in its utility for our purposes, the Chapter describes a more appropriate approach to structural problems based on systems concepts. The final section discusses the ways in which urban development is changing, pointing out that this will make public participation even less successful than at present. 16. PART A. - INAPPROPRIATENESS OF THE CONCEPT OF THE INDUSTRY Traditionally, the production of the urban environment has been described in terms of the construction industry. The notion of the industry derives from the theory of competitive industrial organization which describes a number of sellers competing in a market of knowledgeable buyers. It assumes that market allocation accurately reflects consumer preference. The producer would go out of business, it is argued, if he did not give the buying public what it wanted. When this assumption is applied to the building industry, one of the conclusions that follows is that highrise apartment living must be a highly desirable form of living because over half of all housing starts are of this type. Further, the theory assumes that the market process is subject to government regulation in the interests of the consumer. Such would be the function of government regulatory agencies such as the Canadian Radio and Television Commission or the Canadian Transport Commission and of government anti-trust legislation; these being designed to prevent unfair competition at the expense of the consumer. When applied to the production of the urban environment both of these assumptions are grossly in error, casting doubt on the usefulness of the theory for our purposes. 17. First, it may be asked, who regulates the building industry? Presumably, municipal government, through the control of zoning, planning and building acts in the same capacity toward the building industry, as federal agencies do for other industries such as food, or appliances. But upon closer examination this is seen to be untrue. A recent study indicated that the majority of municipal council members are actively involved in real estate and insurance businesses while in office.1 Thus they tend to identify with the producers, to pay special attention to the needs of developers at the expense of the consumers. By no means are conflict of interest cases a rarity. We are not surprised to find Aldermen or members of provincial legislatures having a personal interest in zoning changes or land acquisition. The situation is aggravated by the ever-increasing need for revenues by money-starved municipalities. Since their main source of funds is from the property tax, councils tend to favour any development which increases revenues, regardless of 2 its effects on the rest of the urban system. Ideally, regulatory agencies should base their judgments on technical and legal criteria. They should interpret the law fairly and impartially and apply technical standards objectively (such as allowable levels of pollution). Unfortunately, "ideally" must be emphasized, since most regulatory agencies have been shown to be the willing servants of the industries they are supposed to regulate.^ 18. The process is further complicated in the case of municipal councils, because by their very nature, the decisions of councils are based primarily on political considerations. The primary political task is to be re-elected so that impartiality and objectivity are not relevant. Decision making on rezoning applications is the most telling example. When a municipal council hears an application for the rezoning of land it is acting in a quasi-judicial capacity, in applying the existing zoning bylaws to the matter at hand.^ Usually the council will decide in favour of any application which promises to increase property tax revenues even if the public is unanimous in its opposition to the scheme and the planners demonstrate that it will not be in the best interests of general urban development. However, if the application is made near election time, municipal aldermen have a habit of becoming far more sensitive to the public voice. Further, municipal governments own land and construct buildings themselves, so that in effect they engage in self regulation, a task which is difficult if not impossible under the best of conditions. This problem applies to the other levels of government as well. Through their departments - such as public works, defense, highways, transport - and agencies and corporations - such as CNR, N.H.B., CBC - provincial and federal governments are among 19.. the largest landowners, developers and builders in the country. Governments are also important sources of construction funding, especially through CMHC, which coordinates its activities with the private capital market. In short, all levels of government are so intimately involved in the total development process and in so many ways, that they must be considered to be integral parts of the system. Thus they are unable to act in any effective regulatory capacity. It now seems clear that the main purpose of such agencies is to regulate the industry for smooth and efficient functioning, similarly to industry house agencies composed of the major corporations in an industry such as the Council of the Forest Industries or the Advertising Council. The efforts of such agencies are concentrated in enhancing the industry image, cracking down on the companies who are too innovative and preventing grosser misconducts which might sully the industry good name. None of these activities are in the consumer's interest. Having found serious flaws in the assumption of government regulation of market processes, the discussion may now focus more directly on the notion of the consumer. The argument that consumer preferences determine what the industry produces will be seen to be absurd when applied to building. 20.. One of the major features of the building industry during the 1960s was the trend to highrise apartment development, so that by now, over half of all housing starts are of this type. "Is this a change that (consumers) have made by choice? (Industrial theory would argue) that low vacancy rates in apartments indicate many prefer this kind of accommodation and 7 that recognition of this market has led to the change." But it is an indisputable fact that the overwhelming majority of Canadian families prefer the single-family dwelling. Building of equity, pride of ownership, desire for privacy, control over one's own surroundings and child raising benefits may all be Q factors here. If such a demand for a housing type exists, why doesn't the industry satisfy it? Clearly because it is not consumer demand that determines the industry outputs, but the cost of land and money and the ironclad goal of maintaining abnormally large profit margins in the fact of those rising costs: plus a whole political,administrative and institutional structure designed to support that goal. In economic theory, the consumer must have a number of equivalent types to choose from, but this is not the case for his housing choices. If he wants to live near downtown, he must live in an apartment building; that is all there is to it.' 21. Nowadays, markets are created, not found. Technological and economic factors determine the pattern of an industry's product characteristics. Then a market must be found to support the increased costs of development and production entailed in such a process. Pockets of resistance are softened and shaped to fit demand curves. The whole communications industry is at the beck and call of the marketing expert and the political and legal system supports and maintains the natural advantages granted 9 to corporations. There is little evidence indeed to support the assumption that consumer preference determines product characteristics. There is one other significant difference between the building and other industries. The products of the industry stand in a different relationship to the general public than those of any other industry's. Buildings are there all the time - they 10 surround and affect everybody, not just the consumer. In almost every other area of industrial life, consumption is a matter between an individual and his pocket book. No one really cares what kind of breakfast cereal a man eats, or whether he uses a razor blade with two edges or six. But everyone is concerned about what kind of a dwelling unit he inhabits because dwelling units are a part of the urban environment, to be seen by everyone and to affect everyone. 22.. Because of the peculiar characteristic of buildings, the consumer, whether houseowner or factory owner is not allowed to make his choices unconstrained by the requirements of the public at large. Municipal governments are supposed to guard the public interest, but as we have seen, they are the body least able or likely to do so. The public's interests can only be protected by the public itself, as active participants in the process of deciding what kinds of physical facilities it needs and can afford. These decisions are too important to be left to the marketing expert. For all these reasons, we must conclude that the industry is unsuitable as an organizing concept for the study of the urban development process. This conclusion is supported in the literature. The recent study prepared by the Midwest Reseach Institute for the American Institute of Architects admitted that, "In conventional terms, the building industry is not an industry at all in the sense of 'textiles' or 'chemicals'; rather it is an ad hoc assemblage of skills, resources and control groups coming together around a defined project.""^ In her description of the American Civilian Industrial Technology Program, a study otherwise admirable i-n detailing the intimate relations between government and business, Nelkin focusses on the "compartmentalized character of the (building) industry...(with) many diverse segments: 23. contractors, architects, engineering firms, craft unions, suppliers, entrepreneurs of building projects, laborers, brokers and realtors.... Each segment of the building industry is itself fragmented into numerous scattered firms....The structure has been maintained by tradition and reinforced by natural constraints, the difficulties of land aggregation in populated areas, transportation limitations and uncertain and fluctuating economic factors....(It is committed to) traditional methods and existing skills, the family structure of many segments of the industry, and a lack of entrepreneurial models." Both Nelkin and MRI mention the peculiar structure of the industry: its fragmented nature, family structure (Nelkin) or an ad hoc assemblage of skills, resources and control groups (MRI). This type of structure does not fit the industrial model. Yet they ignore this fact and proceed on basis which can only be considered unsatisfactory. This paper contends that it is precisely the structure of the urban development process which is causing our difficulties. By structure is meant the roles people play and the enduring patterns of behavior among them, rather than the nature of the 13 personalities in these roles. That is, the personality of the mayor, for example, is of only secondary importance as a factor in decision making. Of greater significance is the network of power relationships and information flows, both formal and informal, which exist when an incumbent takes office and over which he can exert relatively minor control. If it is 24. desired to understand how citizens are excluded from participating in the development of their cities, attention must be focussed directly on the structural and institutional arrangements through which the system operates. How have business and governments coordinated their development efforts to their mutual advantage? How does the structure of city hall prevent any real contact between the planning depart- ment and the citizens being planned for? Why do plans for freeways keep reappearing even though citizens are dead set against them? These are structural questions and they lead to a structural hypothesis: inadequate decisions will continue to be made and the urban environment will continue to deteriorate unless major structural changes are made in the urban development process. Even the MRI study recognized the centrality of this point: "There is... consensus that the present industry structure, given both internal and external constraints,cannot produce a radically 'different and better America,' i.e., an environment much more responsive to human needs and values, unless fairly massive changes occur in structural relationships, operating styles, and the ways in which planning is accomplished." 14 The next section sets out a conceptual basis for a structural approach, that recognizes the complexity of the system and the importance of its decision making processes. 25. PART B. - A SYSTEMS APPROACH TO URBAN DEVELOPMENT The Urban Environment Production System (UEPS) may be defined as a complex set of processes which interact to transform money, land, material, labour and information into physical facilities - the roads, parks, buildings and other facilities which support human urban activities. This definition is illustrated in Figure 1, showing the production of facilities and feedback into the system as demands for further facilities or alterations in the type of facilities produced. System is used in the common sense of "a set of units with relation- ships among them...the state of each unit being constrained by, 15 conditioned by, or dependent on the state of other units." The structure of the system is the stable pattern of decision making behavior which has developed among the units to achieve the system's goals, within a variable environment and with the use of limited resources. The system has a hierarchic nature, wherein the units are themselves composed of interrelated units. The basic units of the system, the subsystems, may be thought of as separate processes. These were listed in Chapter I, page 12: municipal government urban development policy formulation, private capital market allocation of funds to urban development, etc. Each of these processes has a decision making structure, such as the long- HUMAN ACTIVITY SYSTEMS From other production systems <r <r System monitors its performance through vacancy rates, office space rents, etc. BUT: public dis- satisfaction is a new type of input LAND - MONEY MATERIALS LABOUR INFORMATION / URBAN ENVIRONMENT \PRODUCTION SYSTEM 10% of GNP A Process of Transformation 1. Replaces existing facilities and reuses existing land. 2. Uses new land from agricultural and other non-urban uses. 3. Maintains existing facilities. PHYSICAL FACILITIES FOR HUMAN ACTIVITIES Categories of Facilities: residential commercial institutional industrial recreational transportation, etc. FIGURE 1. GENERAL OUTLINE OF THE URBAN ENVIRONMENT PRODUCTION SYSTEM (UEPS). to <y> 27. range planning department of city hall, or the investment department of a life insurance company. They, in turn, may be composed of a number of interacting subsystems. At this level, the process is considered equivalent to an organizational role, or a decision making position, such as the mortgage manager of a life insurance company. This role, in turn, has a structure, the set of criteria (goals and constraints) which affect the behavior of the role. Within the Urban Environment Production System, interactions take place in a fairly well defined series of steps: detecting and confirming a "need"; acquiring land; project planning; assembly of money; design and construction; sale or management. Although one may describe the urban development process, there are in fact, a number of processes at work. Within the system, organizations interact by exchanging goods, services, information, money or land. Most exchanges occur as part of the process of development. Wall panels produced by a materials manufacturer serve a further phase of the process as an input to the general contractor; or life insurance companies produce mortgage funds which become an input for the developer. It is only at the end of the whole series of processes that the product is used by human activity systems. Each particular unit of output is normally designated as a project - a house, an apartment building, a park, a road - which presumably satisfies the "need". 28. Figure 2, reproduced from Nelkin's study of the American Civilian Industrial Technology Program, outlines the major X 3 participants and influences on the building process. In Nelkin's terms, the building process is subject to certain influences. In the terms of this study, the urban environment production system exists within its environment. "For a given system, the environment is the set of all objects a change in whose attributes affect the system and also those objects whose attributes are changed by the behavior of the system. The notion of environment is always a difficult one to operationalize. One of the major preoccupations of this paper is to describe the correct system: that is, the correct components and the extent of the system. In other words, the problem is to describe "...the boundary...within which the system interactions take place that give the system its characteristic behaviour.... The boundary (must) include those inter- acting components necessary to generate the modes of behavior of interest."18 There is a very definite class of behaviors of interest. As the reader will recall, the major reason for undertaking this work was the increasing public dissatisfaction with the trend of urban development and frustration over the inability to participate effectively in the decision making processes which controlled that development. There is a very definite pattern participants and influences on the building process Developer Land owner Lawyers Real estate brokers Title companies Architects and en- gineers Surveyor Planners and con- 2 a rt a, •d n t* OJ (k sultants Developer Landing institutions (interim and per- manent) FHA, VA, or private mortgage insurance company Contractors Subcontractors Craftsmen and their unions Material manufac- turers and distribu- tors Building code officials Insurance companies Architects and engi- neers 8 3 ̂  cd S Developer Real estate brokers Lawyers Lending institutions Title companies FHA, VA, or private mortgage insur- ance company ( 1 ) PREPARATION - > PHASE a. Land acquisi- tions b. Planning c. Zoning amend- ments Owner Maintenance firms and employees Property management firms Insurance companies Utility companies Tax assessors Repairmen, craftsmen and their unions Lending institutions Architects and engi- neers Contractors Subcontractors Material manufactur- ers and distributors Local zoning officials Local building officials (2) PRODUCTION PHASE a. Site preparation b. Construction c. Financing (3) DISTRIBUTION ± 5 PHASE a. Sale (and sub- sequent resale or refinancing) Real estate law Recording regula- tions and fees Banking laws Zoning Subdivision regula- tions Private deed restric- tions Public master plans Banking laws Building and mechan- ical codes Subdivision regula- tions Utility regulations Union rules Rules of trade and professional asso- ciation Insurance laws Laws controlling transportation of materials Recording regula- tions and fees Real estate law Transfer taxes Banking laws Rules of profes- sional association (4) SERVICE PHASE a. Maintenance and management b. Repairs c. Improvements and additions t Property taxes Income taxes Housing and health codes Insurance laws Utility regulations Banking laws Union rules Rules of trade and professional associ- ation Zoning Building and mechan- ical codes Laws controlling transportation of materials FIGURE 2. MAJOR PARTICIPANTS & INFLUENCES ON THE BUILDING PROCESS Source: President's Commission on Urban Housing, A Decent Home (Washington, D.C. GPO, December 11, 1967.) 30.. public dissatisfaction in almost all Canadian cities - congestion, pollution, destruction of older more interesting buildings and replacement with sterile highrises; loss of park land; urban sprawl; etc. Therefore, the system of interest must include those components or processes which generate these behaviors. These are discussed in more detail in Chapter III. The environment of the system then, includes a whole set of processes which affect the system but are little directed by it. That is, interactions are undirectional. For example, inflation has a profound influence on the number and kind of facilities produced by the system, but the system can hardly have any direct affect on accelerating or retarding inflationary processes. However, the system does affect its environment. The urban development process takes place within a social context. The kinds of facilities that are produced have to be considered legitimate by the larger society. "Many economic organizations spend a great deal of their resources to convince potential 19 customers of the legitimacy of their output..." Perrow cites the tobacco and automobile industries as primary examples. However, housing is like motherhood; nobody can be against the idea. 31. The urban environment production system produces very definite classes of outputs - residential, commercial, institutional and so on. By the very act of providing these distinct types the system supports and maintains a social order based on segregated nuclear families. The difficulty of communal groups in obtaining mortgage money or living together under existing zoning bylaws, or of people living and working at the same address, are cases in point. The system interacts with its environment in many ways. It 20 produces "information" on how its facilities should be used. It exchanges the use of facilities for money, in the form of rents, leases or outright sales. It continually monitors its performance through indices such as apartment vacancy rates, office space rentals, shopping centre leases, etc. Therefore UEPS may be thought of as a living system maintaining 21 and extending itself in a variable environment. Unlike some physical systems that are theoretically closed to the environment, living systems do not reach a state of thermodynamic equilibrium, but rather achieve a dynamic balance (homeostasis) by virtue of their input-output relations. Cells, organs, individuals and social systems perpetuate themselves by the orderly replace- ment of worn out parts with new materials from the environment. Contracting firms go bankrupt, only to be replaced by others. 32 . Mortgage managers reach retirement age and are superceded by- younger, more energetic men. The achievement of a dynamic balance allows the system to do work, such as locating and consuming food, or carrying on business transactions with other systems. Through processes of growth and self-regulation, living systems behave as if they had a purpose in life - a preference for certain steady-states over others. "A system develops a preferential hierarchy of values that gives rise to decision rules which determine its preference for one internal steady state value rather than another. This is its purpose." 2 2 There are a number of ways in which a system may develop such preferences. For biological systems it may be largely through genetic inheritance. For social systems, a preference for certain modes of behavior may be largely accounted for by charters of incorporation. For example, the distribution of investments by a life insurance company is partly determined by legal restrictions. However, for both biological and social systems, the history of interaction with the environment is an important determinant of the system's present behavior. This is all to say that organizations, cities or governments, all have a history and their possible alternative courses of action at any one time are largely constrained by the past. The preference for one course of action, or for one steady state is its purpose. 33.. A system's purpose is stored as a set of values or priorities in its memory (all the accumulated knowledge that a system has about itself and its environment), and are used as a measure against which inputs can be evaluated. The system's memory is contained in company files, and records and in the heads of the occupants of the organization's roles. The system has an image of itself and its environment; it also has expectations about environmental actions. Inputs which do not match the preferred states are countered by various processes which alter the system's behavior. In order to survive successfully in a changing environment, organisms and social organizations depend on a continuous flow of information about the state of the environment and about the effects of their actions upon the environment. In other words, they maintain control on the basis of their actual performance, that is, feedback: "A communications network that produces action in response to an input of information and includes the results of its own action in the new information by which it modifies its subsequent 23 behavior." A system's purpose refers to an internal state towards which it tends in relation to a hierarchy of values. The system then establishes an external goal or goals which it pursues in the attempt to achieve its purpose. The main goal for all systems b ing, of course, survival. 34. Goals are problematical for social systems. They may be inferred from empirical evidence such as formal statements, statements of top management, or the actual outcome of decisions. But it is always essential to distinguish stated goals from real goals. In its end of year report a land development company could state that its purpose was to serve the public and in so doing, to receive a fair profit. However, in secret negotiations with city hall officials it could turn out that the company's goal is to thwart public involve- ment so as to inflate its profits. There is a range of goals which a system might pursue. Perrow gives a comprehensive list of organizational goals. He lists societal goals (related to society in general, such as producing goods and services), output goals (related to consumers, such as type of products), system goals (related to the functioning of the organization, such as growth, profits, centralized control), product goals (related to products, such as quality, variety, styling), and derived goals (derived from pursuing 24 others, such as political aims, investment policies). Normally UEPS continues to pursue its ..goals with little major change in its behavior patterns. Through a long history of production its categories of output have become well established - residential, commercial, transportation and other facilities. These categories are the ones used by the system itself which is 35. organized as to provide them in the most profitable manner. In other words the system has definite modes of operation for each type. It is structured in a way that gives priority to those processes most directly related to goal achievement. The system has certain resources available to it - land, money, materials, labour and information - and decisions are made which control and direct these resources to the achievement of its goals. The system may be regarded effectively as an interlocking network of decision making roles. Consider first the individual decision unit. Following Simon one should not envision the simple goal of a decision but a whole set of goals or constraints that the decision maker is trying to achieve. "In the decision making situations of real life, a course of action, to be acceptable, must satisfy a whole set of requirements, or constraints. Sometimes one of the requirements is singled out and referred to as the goal of the action. But the choice of one of the constraints, from many, is to a large extent arbitrary." Only those decisions made in an organizational context are of significance here, a distinction being made between role- defined criteria and personal goals or motivations. This study is limited to behavior considered appropriate to the 2 6 role, the personality of the occupant of the role being 36.. relatively unimportant. In any social system, the total decision process is the decision making programs of all roles together with the connecting flows of communication. Decisions reached in any part of the system may become goals or constraints 27 to another decision role. In most formal organizations this is displayed through a hierarchically-ordered structure. At the top level, decisions are made regarding overall policy and the selection of activities thought to achieve the organization's goals. Further down, decisions deal with implementation and utilization of resources and are constrained by those more general decisions. At the lowest levels decisions are made regarding specific item by item, day to day functioning. A description of the stable pattern of decision making within the system is thus a description of the system's structure. However, the system pursues its goals in a variable environment and consequently is subjected to stress. Inflation may be increasing; large amounts of capital may be flowing into oil pipeline construction at the expense of urban development. Public opposition to any development may be thought of as a new stress-creating input to the system. , The magnitutde of the stress itself, as well as the resources available within the system both determine the extent to which stress may be reduced. In severe cases the survival of the 37. system itself may be threatened. Can the system survive through a change in its structure and behavior, i.e. by moving to a new steady state condition? Does it have to modify its goals or set altogether new ones to be pursued? Such behavior is called learning or adaptation and requires the internal rearrangement of subsystems and their relationships. Learning, is the evolution of a new structure which will remain stable under the new conditions. But how far a system can adapt depends on the nature of its existing structure. Something cannot be created from nothing, much less something new. Therefore the range of possible new combinations that may be formed by an innovating system depends upon the possible range of outputs, the range of available information stored in the memory and the operating rules (program) governing the analysis and synthesis of the flow of information within the system." UEPS is indeed changing. For one thing it is producing new kinds of facilities such as condominium housing or comprehensive development zoning which allow a combination of facility types. And, as will be seen in the next section, the structure of the system is changing. But a question will be raised about the direction of the change, which seems .to be towards greater bureaucratization and formalization and larger scale compre- hensive development. Are these changes occuring in response to citizens demands for greater participation and better decision making? It doesn't seem likely.' Rather they are 38. made in response to economic and financial pressures towards greater efficiency of operation and rationalized fiscal and economic planning. It is even less likely that social values will be reflected in the system's outputs in the future ,than they are now. The system seems incapable of responding meaningfully to these demands. An analogy with the body may clarify this. In the normal state of affairs, the body is continually adapting to minor stresses such as the invasion of viruses or germs; the threat of predators; lack or surplus of food, etc. In fact, it is suggested that stress may be required to maintain 29 body health. There are limits, though. Sometimes the body requires major surgery to remove a cancer or amputate a limb. This paper suggests that the Urban Environment Production System is incapable of making the necessary adaptations by itself and that major structural changes are required. Structural limitations mainly due to the hierarchic nature of decision making, inhibit the production of an adequate and satisfactory urban environment. At the highest levels of policy formulation, decisions are based on financial and economic criteria. These decisions, such as the attainment of a certain rate of return on capital investment, become goals to be achieved a lower levels where product characteristics are determined, the levels appropriate 39. for decision criteria or data on user needs and wants and man-environment interactions. Consequently these latter criteria are mainly disregarded. Figure 3 is a hypothetical diagram of a hierarchic decision 1 structure demonstrating how decisions reached at higher levels become goals lower down and how public participation is too little and comes too late in the whole decision making process. It is based on real corporations planning real projects, but because data is so scanty, many inferences had to be made 30 which could not be substantiated. Company "X" is a holding company presently controlled by two people through a chain of holding companies. Its main purpose is to gain control of large manufacturing, financial, real estate and other profitable operating companies. Through the pyramiding effect of bare majority control of one holding company in another, a personal investment of a very few millions gave Mr. A and Mr. B effective control over billions of dollars of assets. Mr. A and Mr. B are close associates of the inner circles of the political party presently forming the Federal government; they have contributed heavily to party election coffers and identify closely with one of the chartered banks. Company "Y" is a large, diversified real estate company with net assets approaching $300 million recently acquired by Company "X". 40. LEVEL COMPONENTS DECISIONS Federal cabinet political p a r t y — — owners of holding company 'X* Canadian chartered bank Board of directors^ of holding co. 'X' Gov't advisors Board of directors of development co. 'Y' Board of directors of management co. 'Z' Financial and eco- nomic planning * staff international, monetary & fiscal policies which sectors of the national economy? which cities? which major developments? financial•size of development no. of buildings; sizes; land uses; timing. 6 Physical planning, leasing and management divisions layouts; square footages; rentals PUBLIC ANNOUNCEMENT OF PROJECT Architectural and- planning team sizes, shapes, colours FIGURE 3. AN HIERARCHICAL DECISION-MAKING STRUCTURE. (HYPOTHETICAL). 41. The manner in which ownership was transferred is an interesting story in itself but cannot be gone into here. As a result, the previous owner of Company "Y", became a director of Company "X" and held a sizeable piece of its stock. Company "Y" is now planning a large $500 million development for one of Canada's major cities. It set up Company "Z" to plan and manage the project. The Board of Directors of "Z" included financial and legal specialists from "Y" plus its president, general manager of "Z", and representatives from another real estate company and several local businessmen. "Z" has set up an economic planning division, an operating division, a management division and a design division. It hires many types of consultants: engineering, economic, architectural, etc. The structure of decision making may now be described. The level 1 group includes members of the federal cabinet and the political party in power, the chairman and several directors of the chartered bank, and Mr. A and Mr. B. They make decisions regarding Canada's economic and financial position in the world business community: flows of capital, trade deficits, growth of the G.N.P., etc. They decide that the country should try to achieve a growth rate of say 6-1/2% over the next few years. 42. The level 2 group includes the board of directors of Company "X": Mr. A and Mr. B, the president of the bank and the presidents of many of Canada's prestigious domestic and foreign-controlled corporations. This group decides what sectors of the national economy should be receiving the most attention, what corporations are in the healthiest positions. They decide that massive investment in oil pipelines is not feasible yet so that real estate looks like a good bet for the next few years to achieve the growth rate of 6-1/2%. The level 3 group includes ten board of directors of Company "Y", men brought up in the real estate business, financial and legal advisors, representatives from parent Company "X". They are concerned with which cities are good investments; what type of development; where to invest (downtown, suburban or new town). They decide to build a large $500 million integrated downtown development with proportionately decreasing financing as funds get diverted to oil facility construction. Level 4 consists of the board of directors of Company "Z" , set up to plan and manage the development. They are concerned with overall financial and legal planning, capital gains, depreciation, how much can be invested each year, interest rates, etc., balancing the amount of financing against costs of borrowing, etc. and ascertaining the amount of return required, etc. They decide on an initial investment in building of $25 million, 43. with $2 million to come from Company "Y's" retained earnings, a $16 million mortgage bond issue and possibly a $7 million mortgage loan and so on. At level 5, the economic planning division make detailed estimates of how to achieve the required rates of return: the building types best likely to do so, the number and size of buildings, the timing of the development. They decide that a 490 room hotel should be built first, followed by a 29 storey apartment building, a marina and a department store. Level 6 involves physical planning, leasing and management arrangements, square footages are decided, layouts are proposed and the interface with the rest of the urban environment explored. Negotiations are begun with the city planning department and finally the proposal is announced to the public for the first time. What can the public say? The scheme is horrible, it will create enormous congestion, bring thousands more cars into the area, block out the view of the water beyond, and so on. And maybe some of these details are changed. But the whole process has been underway for four or five years before the public became involved at all - before criteria other than financial, economic or technological were even considered. So what meaningful participation can citizens bring to the 44.. process? The system would appear to be locked in to its structure, unable to change even if its participants wanted to.' Admittedly the example given is hypothetical and greatly overdrawn. As Nelkin pointed out, the structure of the system is fragmented and more complex than can be illustrated by a simple pyramidal structure. But roughly the same structure would exist even without direct company control. Most companies still borrow money and in so doing become part of the financial hierarchy as outlined above. But the next section will demonstrate that the system as a whole is tending in the direction of a structure such as has been outlined here. With such a locked-in system of rigid constraints, the system will become less likely to admit effective public participation. 45.. PART C. - CHANGING FOR THE WORSE? The sociology of organizations describes two models for the structure of any organization, one a bureaucratic model in which control is centralized and behavior is routinized in an attempt to regulate interactions with the environment; the other a nonbureaucratic model in which control is dispersed, behavior 31 is innovative and relations with the environment are flexible. In this theory, "bureaucracy" is not used in the abusive sense of general conversation, but in the sense first proposed by 32 Weber. A bureaucracy is an organization governed by enacted rules and regulations, which have been rationally ordered for the achievement of explicit goals. The participants hold positions regulated by employment contracts with rewards based on the rank of the office, not the amount of work done. People are selected for jobs on the basis of their technical qualifi- cations. Whereas in a nonbureaucratic organization, such as a family business, a person may be selected for a job just because he is the owner's brother, not because he has the necessary qualifications. Ideally, interactions between participants and with the environ- ment are governed by formally specified rules and regulations: the assistant professor must go to the ead of the school, never to the Dean of the faculty, for example. Finally, the bureaucracy 46.. uses the technique of categorization of cases and problems. These can never be dealt with on their own merits but in terms 33 of which specified "pigeonhole" they can be fitted in. Modern industrial society is undergoing an incessant drive towards bureaucratization in all walks of life - political, economic, even recreation. "Thus the thrust is to routinize, limit un- certainly, increase predictability and centralize functions and controls. Whether the lure is security, power, growth, or profits, and whether the field is government, industry, culture or welfare, bureaucratiza- tion proceeds apace." 34 The urban environment production system is no exception to this rule. The 1960s have witnessed a slow but relentless shift from the ad hoc family type organization of real estate development of the '40s and '50s to the formally structured conglomerates based on the principle of managerial efficiency, of the late '60s and '70s. The small, family run business often had to use innovative development techniques or to take on projects that the other developers wouldn't touch. Suppose the business was successful and its volume of work increased. Its innovative techniques were viewed as the precise reason for its success. More business meant the hiring of additional personnel who had to be familiarized with the company techniques. These must be broken 47. down into steps and described, and personnel performance checked along the way. Very soon, what were innovative approaches have been frozen into convenient dogma and what was an exciting design and development team has been turned into a factory 35 assembly line. Three features of the process have been identified: (a) greater management control over all aspects of planning and budgeting; (b) greater coordination and cooperation between government and private "industry"; (c) enormous growth in the size of companies. The Midwest Research Institute study documents the change and predicts its acceleration in the next decade for the U.S.A. "We can envision a handful of megabuilders (5 to 15 conglomerates) controlling a majority of the development. The same changes seem to be occurring in Canada, although they are as yet undocumented. Small development companies are becoming much larger; larger companies are being acquired by other large companies; companies from other industries are entering real estate in a big way; more activities are being concentrated under one corporate roof. Through a series of takeovers, Power Corporation of Canada has emerged as one of the largest real estate and financial empires in Canada, including under its development wing Campeau Corp., Canadian Interurban Properties and R.C. Baxter Properties, and 48. under its financial wing, Montreal Trust, Imperial Life, Investors Group (loan, trust, pension funds), Great West Life and Laurentide Finance, thus controlling every type of financial institution except a chartered bank and a credit union. Another case occurred recently when Trizec Corp. a large British controlled company acquired Great West International Equities and Cummings Properties to become the largest public real estate company in Canada with assets of almost $500 million. Many companies which began life as small family controlled developers and builders have gone public in the last five years or so, have blossomed into all phases of development and have growth astronomically. Some local examples are Block Bros, (brothers), Wall & Redekop (cousins) who began in real estate sales; in Alberta the above mentioned Cummings Properties (brothers and sons), Western Realty Projects (brothers), who began as builders and owners. Others such as Dominion Construction have remained privately held into the third generation but it has become owner, builder, developer, designer, financier and manager. Many corporations in other industries with large land holdings have moved into real estate development. Recently, MacMillan 49. Bloedel, the largest forest products company in Canada, established a real estate subsidiary to develop some of its enormous land holdings. Since it also produces building materials, it may encompass most functions under one management. And, of course, the largest land owner in Canada, CPR, has been an active developer for a number of years, through its subsidiary Marathon Realty Ltd. Will this trend towards centralization and bureaucratization result in a better urban environment? The answer is very uncertain. But one result is clear, "...a scale-up in planning and building enterprise to encompass larger projects, longer planning time frames..."37 The construction of arterial roads has been superceded by the construction of highways, which, in turn has given way to the planning and construction of whole transportation system. Fifty years ago it was the individual house, then ten years ago the apartment building or housing tract, now it is the residential complex. The small shop gave away to the supermarket and department store which in turn have given way to the shopping centre. And everything is being replaced by the residential-commercial-industrial complex, new towns or redevelopment of enormous parts of existing cities. With an increase in the scale of development comes a greater commitment of resources and a greater possibility of failure. 50.. Hence a greater reliance on economic criteria, a more carefully controlled and formalized technology of planning and construction and a greater conservatism in the product. Because decision making becomes more formalized there is less chance for real change and less possibility of real public participation. By the time the public can be allowed to participate in the development process, every major decision has already been made. To build or not? Where to build, Toronto or Vancouver? What to build, offices or hotel? When to build; how large? All this is already decided before the public ever hears about it.' UEPS is indeed changing but to achieve its own goals more efficiently I Using computer-based techniques, big capital manufacturing corporations can enter the build- ing, real estate and life insurance industries and develop programs to control cash flows, depreciation rates, tax write-offs, and other bookkeeping elements in each industry operation, to maximize total corporate profits by reducing taxes in pefectly legal ways. Well-designed simulation models enable them to determine almost•instantly the effects of changes in interest rates, government monetary or construction policies, tax laws, economic activity, or whatever. The speed of these determinations gives them the opportunity to make immediate response to the changes, and thereby increase their competitive advantages over less modern corporations. 38 In the bureaucratic organization, patterns of behavior must be stabilized and made highly predictable through control of both resources (land, money, materials, information, labour) and markets (the public). Given such a situation, it is absurd to assert that citizens will have any meaningful say in the development of their environment. Citizen participation will become a hoax, like the "consumer panels" dreamed up by Madison Avenue to convince the public that industry listens. CHAPTER III - THE URBAN DEVELOPMENT PROCESS 52 . PART A. - URBAN PROBLEMS AND PROCESSES Interest in the urban environment production system stems from the public dissatisfaction with both the facilities it produces and the manner in which it produces them. If everything were functioning smoothly and everybody was happy, then there would be no practical reason to study the system. Such is not the case, however, and the need arises for an understanding of how the system operates, in the hope of improving it. Many disciplines deal with aspects of urban development. Planners, geographers, sociologists, engineers, economists or political scientists, among others, all may address themselves to the study of urban problems. But what is an urban problem? It is assumed here that there are no "real" problems in the universe, only perceived ones. The discovery of a problem depends on a matching process.1 One's understanding of a situation is matched against one's image of what the situation should be like. If there is a large discrepancy between the two, then a problem may exist. Transportation is just transportation with no value attached to it. But the automobile driver remembers how pleasant and easy it used to be to move around the city, as he sits for two 53. hours in the rush hour tie-up. This is unacceptable, he thinks; something must be done about it; thus a traffic problem is born. Take another example, housing. There can be no housing problem, until residents or others get fed up with the accommodation they are able to obtain, compared to what they would like to have - what is used to be, or what is should be. It is assumed in this paper that the public is the only source of problem definition and that the role of the professional or academic - planner, sociologist, or what have you - is to transform public needs or wants which are often poorly formulated, into "real" urban problems, by his research and analysis. Even if there is some correlation between the problems to which professionals address themselves and recognized dissatisfactions, the question is: whose dissatisfactions are they? The "problem" of urban renewal is all too familiar an example. The problem does not derive from the resident poor who want more money and jobs, but from the business and professional classes who work in the Central Business District adjacent to the "decaying" residential areas and who have an image of the CBD as the heart of the urban region being threatened 2 by blight. For too long, planners and other well-intentioned business and professional persons have decided on priorities without consulting with the persons accused of suffering from the problem at hand. Traffic engineers have stood at the side of the road, counted cars and decided on the basis of their own perceptions that there was a traffic problem to be dealt with. But who asked the driver and what do you ask of him? Would he prefer a bridge or a tunnel for his new freeway connection? Or would he prefer rapid transit to automobiles? But perhaps he would prefer to live near his work. It can be seen then, that to solve urban problems means to increase the opportunities for individuals or groups to achieve their goals and to live the way they would like to, although goals are variable, multi-faceted and often ill-formulated. "...planners and other professionals do not monopolize wisdom about goals and v a l u e s d i v e r s i t y is valuable, and... people are entitled to live in any way they choose....Goals and values arise out of the opportunities and restraints which we encountered in every day life and different age and class groups inevitably have different goals and values. The planner ought to respect these and give people the opportunity, resources and freedom to choose what they want to do." 3 55. There is a critical need to understand the values and goals of the different social groups comprising modern urban society. Only from this understanding could the engineers and planners make realistic assessments of which problems are most urgent. The Report of the Federal Task Force on Housing and Urban Development was most careless in this regard. Although it presents a detailed list of recommendations to meet the needs of urban Canada, it never really tells us what these needs are. At one point we are assured that the Task Force had "an insight, more human and striking than any written word, into the real issues of housing and urban development in 4 Canada". One is delighted at the intuitive prowess of the group, but one would not care to waste scarce resources on this basis. Recognizing the limited usefulness of existing sources, it was still desired to obtain a survey of opinions on what are the major problems facing urban Canada. This would give an orienting framework for the study of the urban development process, which is assumed to have generated the problems. First, general surveys of urban problems were sought. Three representative sources are tabulated in Table I: Lithwick's study for the Federal Government; the Economic Council of Canada's survey of urban economic trends; a reader prepared 5 for high school students and citizens groups. PROBLEM LITHWICK ECONOMIC COUNCIL OF CANADA 'URBAN PROBLEMS' NO. NAME 1. Housing Housing costs Shortage and in-adequacy of urban housing Housing 2. Poverty Poverty Urban poverty Poverty 3. Social unrest Social unrest Social disturbance 4. Urban decay and renewal Urban decay Decaying neigh- bourhoods Urban renewal 5. Urban sprawl Urban sprawl Monstrous suburbs and confused jumble of land uses Urban sprawl 6. Transportat ion Transportation congestion Traffic and transportation Urban transport- ation 7. Pollution Environmental decay (incl. pollution) Air and water pollution Pollution 8. Municipal finance Fiscal squeeze Property tax burden - 9. Municipal gov't — Frustrations of municipal admin- istration Urban government TABLE I - CANADIAN URBAN PROBLEMS ENUMERATED IN THREE SAMPLE SOURCES. Source: See Footnote 5, Chapter III 57. One is immediately struck by the consensus displayed in the lists. All three mention housing, poverty, urban decay, urban sprawl, transportation, and pollution. Two sources cite social unrest; it is interesting to note that the reader prepared for the tender ears of high school students doesn't consider this to be a problem. Two of them cite municipal financing, and two mention municipal government. Lithwick considers municipal government to be a problem, but a policy making 6 problem and not an urban problem. Following the general survey, specialized studies on each defined problem area were consulted. The references for these are listed in Appendix A, grouped under each of the problem areas. Of necessity, the survey was a very abbreviated one, and one which will require a great deal of emphasis in future work, only one reference being consulted for several problems. Each reference was noted for its analysis of the problem at hand. For example One author might consider land speculation to be a major cause of high housing costs. The major difficulty with such a survey is that what one author considers to be a problem, the next writer on the subject might consider to be the cause of another problem. He might believe high land costs to be a function of inflation, and speculation as a cause of urban sprawl. 58. This confusion in the literature is understandable since the urban development process is highly complex. As Lithwick puts it: "(the unique characteristic of urban problems is that they) are so interdependent that the effect of each on the others is more important than the mechanisms 7 internal to any one in isolation." "Housing is related to transportation and land use; these affect the urban poor, the quality of the environment and the fiscal resources of local governments, and these in turn have severe consequences g for housing." This underscores the need to look at the whole system, in an attempt to unravel all the significant relationships. Given the current single discipline approach to urban problems, political scientists will find political causes for these problems, economists find economic causes and similarly for financial, sociological or administrative-type analysis. The approach taken here-is that probably all aspects are involved because of complex structural relationships among many types of components. To overcome present confusion on the subject, this study developed the notion of the factor leading to the problem. With this notion, a middle course is steered between a problem and its imputed causes. For example, "inadequate supply of 59 . mortgage funds" and "high interest rates", designated as factors leading to the problem of "high housing costs"; they are not problems in themselves, yet they are not the causes of the problem, there being more basic processes such as the American balance of payments which affect housing costs; such a process being relegated to the system's environment. Table 11 presents a summary of this survey; of the major problems facing urban Canada and the factors considered significant in leading to those problems. These are presented in an expanded version in Appendix A, where each problem is noted, some of the major issues involved, a list of the factors, and a list of the references consulted for each problem. The major factors leading to urban problems seem to fall into two groups: those that are related to demographic and economic trends and those which are related to policy formulation and implementation. Observe the problem of transportation congestion. On the one hand are factors which lead to an increasing number of automobiles: increasing population, increasing car ownership ratio, consumer preferences,and a general relationship to land use; on the other hand are factors dealing with decision making and policy processes: 60. PROBLEM FACTORS 1. Housing a. Cost of Money b. Cost of land c. Cost of Construction inadequate supply of mortgage funds high interest rates inflation inflation speculation land assembly procedures proliferation of rules and regulations multiplicity of juris- dictions property taxation procedures servicing requirements disorganized building industry inadequate design and research proliferation of rules and regulations 2. Poverty NOTE 1 3. Social Unrest NOTE 1 4. Urban Decay & Renewal lack of minimum standards property taxation procedures ageing of structures slum landlords lack of social research lack of citizen participation expropriation practices 5. Urban Sprawl uncoordinated development inadequate planning procedures property taxation procedures land speculation financing policies of senior gov' provincial gov't highway policy zoning procedures consumer preferences TABLE II. FACTORS LEADING TO MAJOR URBAN PROBLEMS. 61. PROBLEMS FACTORS 6. Transportation - lack of coordinated research, - inadequate capital investment - consumer preferences - provincial highway construction policy - inadequacy of municipal financing and planning - lack of funds for mass transit - lack of regional transit and planning authority - favorable financial position of auto - increasing number of automobiles - pressures of auto, road- building and development industries. 7. Pollution - automobile design - consumer preference - highway and road design 8. Municipal Financing - inadequate provincial grants - unsatisfactory municipal/ provincial relations - fragmented municipal authority - property taxation procedures - uncoordinated federal government policy TABLE II (Continued) FACTORS LEADING TO MAJOR URBAN PROBLEMS NOTE 1. These problems not analyzed here. SOURCE: See Appendix A. 62. lack of coordinated research, inadequate capital investment, provincial and federal highway construction policies, inadequate municipal planning and financing, lack of funds for mass transit, lack of regional transit and planning authority, favorable financial position of automobile, pressures from 9 automobile industry, road building industry, developers, etc. In summary, the major factors leading to urban problems seem to be: - fragmented authority, - piecemeal planning, - proliferation of rules and regulations (negative municipal restrictions), - inadequate supply of mortgage funds, - uneven private land market, - property taxation procedures, - disorganized inter-government relations, - lack of policy research and advice, - uncoordinated and inadequate research and information. Many of these factors deal with political, administrative or business processes. It is essential that these processes be included within the system, if we are to generate the problems which are of interest to this study. The reader should try to visualize underlying processes which generate these behaviors. 63. For example, if a proliferation of municipal rules and regulations governing development is thought to be a factor in adding to many urban problems, then one should think of the process which generates municipal rules and regulations, e.g. a municipal policy making process. Such a process would bear investigation, in order to isolate critical variables which might generate a surfeit of rules, bylaws, regulations, business laws and so on. The study outlined in the section has been necessarily scattered. Future work should have comprehensiveness as its first goal, in the determination of the significant processes which constitute the urban environment production system. 64. PART B. - TYPICAL PROBLEM/PROCESS ANALYSIS In this section, one example is analyzed in detail to illustrate the method of deriving significant urban processes from public dissatisfactions. The example has to do with rising housing costs (problem #1), one of the factors which leads to the problem - inadequate supply of mortgage funds for housing, and a process which is implicated in the generation of the problem, i.e., the allocation of investment funds to demand segments. The problem of rising housing costs cannot be solved without an adequate understanding of how funds are apportioned out to investment types. Rising housing costs are a source of continuing public concern. For example, a Gallup Poll in 1969 found that one third of the population was dissatisfied with the present day housing situation. Of these: 46% thought that houses were too expensive, rents too high; 15% said mortgage interest rates too high, down payments were too high; 15% thought taxes were too high. The remaining 24% of responses were mixed.10 Another way of looking at public attitudes to housing is in terms of market processes. Every observer has noted the dramatic shift in the type of housing being built from single family to apartment units.11 Some would argue that this change 65. is being made by choice and that apartment living is appropriate for certain types of households (elderly, singles, no children). The argument runs as follows: we notice low vacancy rates in apartments; therefore many people must prefer these; there- 12 fore the market simply responds to fill the need. On the other hand, it is still widely believed that the majority of Canadians prefer the single family dwelling as their first housing choice. Buying a house creates a capital investment, provides privacy and control over one's immediate surroundings and provides a suitable environment for child rearing; although it does also involve a high down payment and high monthly charges. The fact remains that the decision of residential location is becoming increasingly restricted. This problem is especially 14 severe for middle income families ; for them, house ownership has become an unattainable dream. Even then, they cannot find inexpensive rental accommodation. The literature usually cites three origins for rising housing costs: the cost of building construction, the cost of land, 15 the cost of financing. It is usually maintained that building construction costs have not had much effect on the escalation of housing costs: for 66 . example, construction, labour and materials costs have not risen as fast as consumer price index or average family X 6 incomes. These will not be examined further. Nor will the cost of land, even though it has a profound impact on the total cost of housing. For the purpose of this example, only the effects of financing costs - that is, interest rates - on housing will be illustrated. Spiralling interest rates on conventional and N.H.A. insured loans have added a large burden to the prospective homeowner. Consider that for a $16,500 mortgage, and a 25 year term, each percent increase in the interest rate adds $3,000 to the total cost. Between 1964 and 1970, conventional mortgage 17 rates increased almost 3-1/2% . This rate increase has the same impact on rental housing with each percent increase adding $10 or more per month for the average rental suite. The pressure on rents and house prices will be further aggravated by any slowdown on funds flowing into residential construction without equivalent decreases in demands. Most funds flow into housing as part of the capital market in which non-monetary financial assets are exchanged through the 18 assumed forces of supply and demand. It is only one of several ways in which assets may be transferred but the only one for which data exists. Other possibilities include personal loans among family members, etc.; 67. Figure 4 illustrates possible channels for the transfer of assets. First is the possibility of direct investment in real (non-financial) assets, such as individuals who invest in real estate or consumer durables; or corporations who invest their profits in plant, equipment or inventory. A second possibility is direct investment in financial assets, such as the acquisition of new and outstanding securities of private or public corporations mainly by financial institutions. New security issues are usually underwritten by borrowing inter- mediaries such as investment dealers. Small or medium sized corporations who could not afford to issue securities often are serviced by private development companies. The third possibility involves indirect investment in financial assets such as the flow of individual savings through savings intermediaries. The saver takes the securities of the institutions which places these funds into other securities. The savings of millions of individuals are thus placed under the supervision 19 of a few. Savers I Saving intermediaries Markets \ Borrowing _ / intermediaries intermediaries FIGURE 4. POSSIBLE CHANNELS FOR THE TRANSFER OF FUNDS FROM SAVERS TO USERS Source: Boreham et. al., Money & Banking. p. 302. 68. In an organized market, one of the parties to the exchange is a financial institution, a corporation with the majority of its assets being financial: 80% being used as a criterion • t 20 m one study. The major financial institutions are the chartered banks, life insurance companies, trust and loan companies, credit unions and caisses popularies, Quebec Savings banks; plus the estates, trusts and agency funds of trust companies, mutual and closed-end investment funds, and the pension funds. Each type of institution and some of the major criteria by which it decides which types of financial assets to buy are described briefly in Appendix B. The major capital market instruments are the non-monetary financial items: equities (stocks), debt (bonds or securities, mortgages, deposits), and certain types of contracts (annuities and insurance policies). Table III tabulates the total Canadian debt outstanding in 1953 and 1967 by type of instrument. It does not include equity or contract items, there being no comparable data for these. It shows a threefold increase in the national debt outstanding over the fifteen year period. It also demonstrates the increasing importance of the mortgage instrument. From 1953 to 1967, total mortgage loans outstanding increased six times, so that by 1967 mortgage loans accounted by. 19 53 196 7 CAPITAL MARKET INSTRUMENT $ Mill. % $ Mill. % Government of Canada Secur- ities 11,081 45.0 15,646 20.6 Provincial Securities 3,568 14.5 15,484 20.5 Municipal Securities 1,729 7.0 6,539 8.6 Corporate Debt Issues 3,660 15.0 12,079 15.8 Institutional Debt Issues 126 0.5 456 0.6 Foreign Debt Issues n/a - n/a - Mortgages 4,429 18.0 25,661 33.9 Equity n/a - n/a - Total Debt 24,593 100.0 75,865 100.0 - TABLE III. TOTAL DEBT OUTSTANDING BY CAPITAL MARKET INSTRUMENT, CANADA, 1953 & 1967. Source: Gordon Boreham et.al., Money & Banking, Holt Rinehart & Winston of Canada, 1969, p. 305. 70. 6000 for one third of the national debt. A remarkable rate of increase, yet inadequate to satisfy the enormous demands for mortgage loans for both residential and commercial property. The general research problem which emerges from these points 'is to specify the factors which have shaped capital investment in Canada over the past few years. The more limited research problem is to specify the factors determining the allocation of funds to mortgage loans. Figure 5 is a simplified diagram of a process in which investment funds are allocated to investment types. It is based on the notion of a flow of money from sources to destinations, one of which is mortgage loans, and a number of variables which affect the rate of flow. Five critical variables have been identified: legal requirements, inflation, interest rates, international markets, government fiscal and monetary policies. These may now be described, especially how they affect investment in mortgages and real 22 estate. Canada is very closely tied to developments outside its borders and is affected by pressures on interest rates and increases in prices. Ultimately, interest rates on house financing are tied to investment yields prevalent on the international market. Both internationally and nationally during the 1960s, the demand for capital has been extremely high in the power development, transportation and public sectors. With intense Variables Affecting Decisions jLegal requirements J Inflation 4 International markets Interest rates Government fiscal and monetary policies Deposits Investment certificates Sale of stock Sale of debentures Estate, trust and agency funds Pension funds Insurance premiums Investment dividends Retained earnings Etc. Canadian stocks Canadian government bonds Canadian corporate bonds Foreign securities Mortgage loans Real estate Etc. FIGURE 5. PRIVATE CAPITAL MARKET ALLOCATION OF FUNDS. -a H-1 72. competition for available sources of money (when economies are expanding) the price of money rises and inflation results. Naturally the results are general price increases leading to diminution of the purchasing power of the dollar. Real estate is especially sensitive to both inflation and the threat of further inflation. Real estate is a non wasting asset carrying the implication of future benefits as well as current value. Money that is invested in real estate turns over very slowly. For example, it may take a mortgage lender 25 years to get his return whereas a car loan might be paid back in three years and could be then loaned at a higher rate if inflation were occurring, although mortgage rates may be adjusted every 5 years. Therefore, when inflation is occurring, property sales reflect current inflation as well as anticipated future inflation to adjust for the future buying power of prospective buyers. The federal government by its control of the economy through taxation, federal spending, monetary policy, etc., is supposed to create the conditions ensuring an adequate supply of funds into real estate. Fundamentally, this means controlling inflation, an accomplishment which continues to evade the government's attempts. 73. However, with inflation and the threat of more inflation, interest rates on long term fixed income investments are raised to maintain a satisfactory real rate of return. If possible, the investor will also change the composition of his investment portfolio towards long term investments with greater inflation countering return possibility. (Stocks, convertible bonds or short-term securities.) Consequently, a great deal of money is diverted from mortgage investment. Many investors also seek a hedge against inflation by acquiring investments which will not diminish in dollar value. Increasingly this means property equity investment, which in turn creates additional pressures on prices. Recently, many major insurance and trust companies which manage large investments funds have been taking a share in equity when they provide mortgage funds. This means that ample funds have been available for apartment and townhouse rental projects, cases where this type of control works, but these funds have not been forthcoming for single family dwellings. Finally, a higher amount of mortgage money is required for each loan because of higher prices, but the supply of funds being created for this type of investment - such as insurance premiums - has not been increasing as fast. 74. Some other factors are involved too. Although pension funds are the fastest growing source of savings dollars, they have not participated in the mortgage market to any considerable extent, mainly due to the conservative nature of their investment policies and in spite of federal government attempts to encourage this investment. Government regulations affect the investment policies of all types of financial institutions, either by directly limiting the percentage of financial assets which may be held in any one investment type, or by limiting the borrowing ratio to some multiple of paid up capital. Finally, there is little pressure on financial institutions to hold investments of a socially desirable nature such as mortgage loans to student groups when they can find ventures with a better return. They know that the federal government through CMHC, will step in to provide these funds and thus disarming potential public criticism. Table IV tabulates the total mortgage investments held by the different classes of investor at the end of 1967. Financial institutions held about 50% of the outstanding mortgage debt, governments almost 20% and individuals, non-corporate bodies 23 and charitable organizations, another 20%. 75. TYPE OF INVESTOR MORTGAGE LOANS OUTSTANDING $ Billion Percent Life Insurance Companies 6.6 25.5 Trust and Loan Companies 4.5 17.4 Chartered Banks 0.8 3.1 Quebec Savings Banks Mutual Benefit Societies Fraternal Societies 0.3 1.2 Small Loan Companies Finance Companies Holding Companies Other Corporate Lenders 2.0 7.8 Government and Gov't Agencies 4.8 18.6 Credit Unions 1.1 4.3 Individuals Non-Corporate Bodies Charitable Organizations 5.7 2 22.1 Total 25.8 100.0 TABLE IV. MORTGAGE LOANS OUTSTANDING BY TYPE OF INVESTOR, CANADA, 1967. Note 1. Includes pension funds, $0.7 billion; estates, trusts and agency funds of trust companies, $2.0 billion (estimated). 2. Estimated, 1966. Source: CMHC, Canadian Housing Statistics, Tables 48,49,51. Table V compares the mortgage investments of selected investors with their total assets. Life insurance companies and trust and loan companies hold over half of their assets in mortgages and together account for 43% of Canada's total mortgage debt. Both banks and pension funds - the most rapidly growing financial institutions - provide very little in the way of mortgage financing. The federal government has given considerabl effort to increase their contributions and although this has increased somewhat over the past five years, the result has not made a significant difference to the total problem. Further data on the investments of financial institutions is collected in Appendix B. The phenomenal growth in financial assets over the past 20 years as well as the growth in mortgage loans held over the same period are graphed in Figures 6 and 7. A detailed picture of investments by type of institution is presented, as well as profiles of typical companies: London Life Insurance Co., Canada Permanent Mortgage Corp., Van City Credit Union. This data would be used in future work on the process of private market allocation of funds. By the same method, a number of processes were identified as having an important effect on the course of urban development; but by no means do these account for all the major urban problems 77. TOTAL ASSETS $B i 11. MORTGAGE LOANS OUTSTANDING $Bill. MORTGAGE LOANS AS PERCENT OF TOTAL % Life Insurance Companies 13.1 6.6 50.6 Trust and Loan Companies 7.1 4.5 63.4 1 Chartered Banks 31.7 0.8 2.7 Quebec Savings Banks Mutual Benefit Societies 0.8 0.3 42.1 Credit Unions 3.4 1.1 32.3 Estates, Trusts & Agencies 14.4 2.0 13.7 J Pension Funds 8.1 0.7 9.0 TABLE V. MORTGAGE INVESTMENTS OF FINANCIAL INSTITUTIONS AND OTHER INVESTORS AS A PERCENTAGE OF TOTAL ASSETS Source: CMHC Canadian Housing Statistics, Tables 48,51. 78. u) c o •H •H s w- 30,000 25,000 2 0 , 0 0 0 15,000 1 0 , 0 0 0 5,000 2,000 J L. H-- I.M4 I- ' J-.L 77 -hp^T" - - + - — 1 - ©r m IC -"C l I ! i O CO 4 1-44-14.. -f-j— 444 _j_j i .+ ~r tJtTT Qfa~44l / 4 / •PR"-.') Life Insurance — C o ' s . 1 i I Hn̂ Tr"-?̂ " /'Pens dS CD 'Chartered Banks ttttr 1-H-:v-< -f-jH ion 4/Trust / Loan JLsti i Credit Uni o t> & Co's ons FIGURE 6. TOTAL ASSETS OF SELECTED FINANCIAL INSTITUTIONS Source: Bank of Canada Statistical Summary 79. 6000 5000 4000 3000 2000 1000 Sat 4-4- .K t̂ ,'t- -dh SI rtored • ~ Life Insurance?' Go's / --4 / BBS 4-4-4- i 05 i i JJ-LLUl / 1! Cre anks t^-1" l^ens XT 7 y ! ± m Drust & Loan Co t: T O T ; I i j J_LU i i til afc4-i- dit Unions* ion Funds o m r-l m m C5 r-l o m <JD CD r-l r-l O t> CTl r-l FIGURE 7. TOTAL MORTGAGE LOANS OF SELECTED FINANCIAL INSTITUTIONS Source: Bank of Canada Statistical Summary. 80, These processes have been mentioned before on pages 12-13 and they will be described in some detail in Chapter VI when a diagram of the total urban development process is constructed. At this stage it seems adequate to present diagrams and brief descriptions of several typical processes. These are Figure 8: The Conversion of Rural Land to Urban Uses; Figure 9: Municipal Government Urban Development Policy Process; Figure 10: Municipal Government Allocation of Funds; Figure 11: Urban Land Market. 81. Agricultural & Other Rural Land \ / Conversion of \ "/[ Rural Land To f ) \ l Urban Uses New Urban Land. t -> e / -Developer pressure -Provincial regulations -Municipal servicing costs -Land speculation -Accessibility costs -Property taxation -Housing 'demands' -Recreation 'demands' FIGURE 8. CONVERSION OF RURAL LANDS TO URBAN USES. Demands For Policy Guidelines T Developers Business Municipalities Governments Citizens Municipal Gov't \ Policy Making Re j~ sprban Dovolopmen t/ '"N Charter responsibility political considerations provincial & federal relations technical & financial planning studies Municipal Gov't j Policies Affecting j Urban Development; — 4 zoning regulations land use plans financial policies transportation regulations FIGURE 9. MUNICIPAL GOVERNMENT URBAN DEVELOPMENT POLICY- MAKING PROCESS. 82. Legal requirements Conventional practices Political demands Conditions re use of funds j Nx- Sources Of Funds 'Property taxation Provincial grants Federal .grants Business licences Investment interest Sale or lease of property Municipal Gov't Allocation of Funds To Demand Segmentsj > Capital Expenditures Sewers Roads Structures Low cost housing FIGURE 10. MUNICIPAL GOVERNMENT ALLOCATION OF FUNDS. HXiB l JLIlg Urban Land Users Private owners Private developers Municipal gov'ts Provincial " Federal " Federal agencies Urban Land Market Urban Land Allocated To Various Users Potential return Economic feasibility Cost of land Cost of holding Future potential FIGURE 11. URBAN LAND MARKET. 83. PART C. - DECISION MAKING MODELS It has been argued in Chapter II, that the urban environment is deteriorating because of structural limitations in decision processes. The urban environment production system is becoming more bureaucratized in the attempt to achieve its goals of economy, efficiency and greater profitability. The question to which this section addresses itself is how may the system be best described to facilitate the testing of this and other hypotheses? Any description of a system is a model of the system. Maps, diagrams, pictures, equations, games, or spoken or written language may all be used to describe some situation of interest to us. "In all cases, models must be tested for their relevance do they match those aspects of the empirical process in which we are interested to a degree of accuracy sufficient for our 24 purposes?" The model is a system itself whose elements and structure are representations of the system being modelled. It is desired that studies of the model should have the same outcomes as explorations of the system itself. Now, the major concern with the urban development process deals with change, or the lack of change, over time. Therefore, what is required 25 is a simulation of the system - a dynamic or operating model - in which changes over time in the model correspond to changes over time in the system; this will occur if both structure and 84. process relationships are isomorphic with those in the system. To all intents and purposes, one understands a system, when one is able to simulate its behavior realistically. A main function of simulations is to avoid potentially costly mistakes by testing proposed changes on the simulation before implementing them in the real system. For example, the recently 26 introduced "Residential Mortgage Financing Act" (May, 1972) was designed to generate new sources of residential mortgage funds. Will it, in fact? Or will there be harmful side effects - with the funds merely being transferred from one necessary type of investment to residential mortgages and no real net increase? It would have been useful to test the effects of such changes on a model before implementing them in reality. 27 The Hellyer Task Force Report on Housing had hundreds of recommendations with regard to improving the state of housing in Canada. Would any of them have had the desired effects? Or would they perhaps have cancelled each other out? The earlier parts of this Chapter discussed the urban problems found in many professional analyses. These usually consisted of an enumeration of one or several problems and then an analysis of their causes. Every source, however, had a further aspect: a list of "cures" for the problem. A model is needed to test these so-called cures. 85. We are told that if only we had regional government, or regional interdisciplinary planning, or a nationally coordinated research and development program, or a unified national urban policy, or rationalized relations between governments, or the allocation of resources on nationally established priorities; if only we had some or all of these things, we would have beautiful, clean, uncongested cities; our citizens would be adequately housed and fed and happy, living in the best of all possible urban worlds. What about these proposals? Although becoming less so, Canadian cities are fairly liveable. In fact this may be precisely because governments are at odds with each other, because policies are uncoordinated and conflicting, and because planners do not have much power. All of the cures suggested might only serve to make matters worse. It is necessary to model the urban environment production system, because it is complex, because our concepts are inadequate and because we wear the blinders of conventional wisdom. Only from such an exercise could one attain some level of confidence about the hoped-for consequences of policy and structural changes. Many urban simulations have recently appeared or are currently underway. Forrester's Urban Dynamics examined a computer simulation model of an (ideal) urban area: "a system of interacting 86. 6000 industries, housing and people." In Vancouver, a large scale computer simulation model of the region is being built involving a number of interlocking submodels - the Inter- 29 Institutional Policy Simulator (I.I.P.S.) . If this study of Vancouver is already being undertaken, what is the need for another study of the same region? What is the difference between the studies of Forrester and I.I.P.S and the present study of the urban development process for which this report argues? To answer this requires an understanding of model purposes and the effects this has on the choice of components. There are no specific criteria which could help one determine what phenomena and processes should be included within his system. Forrester, however, warns us that one must include within the boundaries of the system, those processes which generate the modes of behavior of interest to the investigator. This means that all those processes that lead to public dissatisfactions and consequently to urban problems, must be included in the system". It is proposed to gain an understanding of those processes by building a model of the system in operation. A study that is to be useful for solving urban problems should analyze or model the subsystems or processes that generate the problems. Previously it was found that many of the major factors leading to urban problems derived from the decision 87. making structure of governments, financial organizations, builders, planning agencies, etc. Consider for example, the transportation problem. If the description of the system is to be useful, it would have to include all the processes or components which generate the behavior of traffic congestion. Therefore, the system must include not only those processes which create an increasing number of automobiles, such as increasing population, increasing car ownership ratio and consumer manipulation, but also those processes which constrain policy formulation and implementation, such as government funding at various levels, uncoordinated government interactions, planning processes, pressure exerted by the automobile and road building industries and by developers, to name only a few. "...the entire pattern of social and economic support on which automotive power depends: a low level of auto taxation; a gasoline tax which is dedicated to the building of more roads; federal and state subsidy for the highway construction program and for an auto-dominated organization of urban and suburban development; abandonment of public transportation; acceptance of communal responsibility for the costs, in pollution and destruction, of auto- motive growth." 3 0 Now it is precisely these latter aspects that are excluded from other studies of urban systems. For example, Urban Canada, Research Monograph #3 3 1 purposely deals with the physical, economic, environmental (in the physical sense) and technological aspects of urban transportation; but not the social, administrative 88. and political aspects. However, a careful reading of the 32 "Freeway Proposals Case Study" indicates that the sources of funding and the existing administrative structures - in short, the nature of decision making - have played a significant role in generating the urban transportation problem in Vancouver. Take another example. Suppose it was thought desirable to assemble a municipally-owned land bank as a way to reduce the cost of serviced land. Both types of models might try to simulate the effects of implementing such a proposal. What would be the difference in terms of the two types of models? The modelers of the urban area would assume that the land bank could be implemented as proposed - i.e. politically and administratively - and would then test the consequences it might have on the rest of the area - e.g. on the building of highways, on the location of residential development, and so on. The modelers of the urban development process, on the other hand would not assume that a land bank could be implemented as proposed and would in fact attempt to simulate the effects of trying to implement it; e.g. how developers would attempt to subvert it to their own ends, how city administrators would attempt to use it for personal power, and so on. 89. 33 Schwartz and others have identified situations in which xt is feasible and desirable to model decision process (a) if authority and power is fragmented, (b) if the model builder is outside the system, (c) if the probable time to implementation of structural or policy changes is short. Using these criteria, a further distinction may be drawn between the two approaches. Consider the case where authority and power is fragmented. For the former modelers. "the task is to describe the system so that the consequences of different programs or policies can be predicted or, at least, better understood. The information is then presented to a decision maker to take appropriate actions." But what decision maker? Someone in the federal, provincial, regional or municipal governments? Or someone in one of the seventeen separate municipalities of the Greater Vancouver Regional District? Or in the National Harbours Board, the Canadian Pacific Railway, CMHC, or someone smothered beneath the bureaucracy of Vancouver city hall? There are just too many organizations with overlapping jurisdictions, fragmented authorities and conflicting goals. Therefore, to guide a policy proposal through the decision making maze, may be a more difficult task than to decide what policies should be implemented. 90. Second, Schwartz et al suggest that it may be appropriate to model decision processes if the modeller is outside the system. The model builder who works for a private corporation or a public agency does not concern himself with the overall goals of the organization. Rather, they provide him with a framework or a set of guidelines within which he may indeed operate. His task is to determine how company policies may be implemented most effectively and efficiently. But the model builder who works for disgruntled citizens groups does not operate under the same set of constraints. Citizens who are no where if not outside the system, want a voice in the setting of company goals; they want to guide their own proposals through the system. Therefore, they need to know the "enemy" and how he makes decisions. Finally, decision processes may be modelled if the probable time to policy or structural change is short. By this Schwartz et al are referring to a case in which there is a general desire for change by many groups and a consequent likelihood of the changes actually occurring, but no clear ideas as to which changes to make. The opposite case, they hold, is the oil industry, which is so powerful and so monolithic that the likelihood of bringing it under public control in the near future is nil. Three times in the past few years, the oil industry has effectively neutralized all opposition to its 91. behavior, such as its ability to maintain oil depletion allowances, even when a strong congressional campaign was mounted to reduce these. Therefore, it is not worthwhile modelling decision processes in the oil industry because 35 nothing could be done about it. In contrast, almost all groups - business, citizens, senior levels of government - are concerned with the poor performance of municipal governments and the need for good urban development and land use planning policies. It is very likely that structural changes will occur in the near future, so that is it highly desirable to model the system's structure. "Therefore, to take the view that a system simulation should go no further than displaying the consequences of different policy choices, and leave the implementation to real or presumed policy makers because they 'know best' may be 3 6 entirely inappropriate." They cite the area of land use controls as being ideal for the modelling of decision processes and they are working on a model of policy development in the California legislature relating to land development. Therefore, a promising way of improving the whole urban development process is to build a model of the system which concentrates on 92. decision making. This model could then interface with other models of the urban area, for a more comprehensive understanding 37 of the urban system. In the following chapters, it is argued that a way to build such a model is to begin with case studies of the system in action. Each case is presented as a chronology of events, which is analyzed to determine what decisions were made, who made them and on what basis they were made. These then become the empirical content for the processes discussed in this chapter, which could then be combined in a diagram of the whole urban development process. CHAPTER IV. - THE URBAN ENVIRONMENT PRODUCTION SYSTEM (UEPS) 93. PART A. - AN EMPIRICAL BASIS It is important to emphasize the limitations in the approach taken in Chapter III. The bulk of the literature cited suffers from two major flaws: each author views the urban situation with the spectacles of his own discipline and, by and large, he treats each problem separately, as an isolated piece. "A variety of opinions has been tendered as to both the nature of the problem and the remedial action required. Most of the suggestions offered to date suffer from the same fault: they express the natural attitude of the group offering them - financial, administrative, sociological, political - ranging from a tax on speculators at the one extreme to government ownership of land at the other." 1 More important, we lack an empirical base from which we could quantify the processes of interest to us. In discussing this problem, Lithwick referred to the recent upswing in concern about urban affairs as manifested in The Fourth Annual Review of the Economic Council of Canada; The Federal-Provincial Conference on Housing and Urban Development (Ottawa, December, 1967); The Task Force on Housing and Urban Development; The First Canadian Urban Transportation Conference (Toronto, February, 1969, the study undertaken by Lithwick himself for the Minister 2 Responsible for Housing. 94. But Lithwick concluded that: "...(The) conviction that we are faced with impending disaster in our cities is not based on adequate evidence. The data, when used, are often of question- able value and relevance. And even if this information reveals serious problems, it provides little basis for understanding their nature and thereby dealing effectively with them. Few of the above-mentioned enquiries conducted or even drew upon meaningful research. Much was borrowed uncritically from other countries, particularly from the United States with its special racial problems and its particularly large urban conglomerates whose problems are quite different from those in even the largest Canadian cities. Finally, few of the grand new designs have any analytical content. They represent a peculiar amalgam of pure fantasy and particular prejudices. Thus, to date the urban crisis is more an article of faith than a well-understood phenomenon." 3 However, it does not seem too far fetched to suggest that each of the studies to which Lithwick refers, is a partial analysis of the underlying processes. The problem for urban studies is to develop empirical methods, so that these processes may be quantified and tested. It will be argued in Chapter VI that a useful way of proceeding is through case studies of the system in action. But before going on to that method, it would be a good idea to know something about the system's content. How many organizations participate and how do they interact? What does the system produce? How do users and other citizens feel about the system's products? 95. The purpose of this chapter was originally to answer those questions. It was thought to be a relatively simple matter to collect the relevant data and assemble an overall picture of the system. iHowever, in practice, this proved impossible to achieve. Knowledge about the urban environment production system is in a sorry state! In fact, there is no systematic data at all. The major source of data is, of course, D.B.S., yet most of its publications are of limited use. There is a great deal of information on labour force and population (consumer) characteristics, but almost nothing on the organizations and institutions of Canada. It is almost as if D.B.S. is nothing more than a free service for business. Eighty percent of Canadians live in urban areas, yet there is no breakdown of construction expenditures by cities. It doesn't seem unreasonable to ask, how much our cities cost to build? How many companies partake in this bonanza? What is the public- to-private ratio of expenditures? Apparently, these questions have never been asked before! Accordingly, the present discussion is very spotty indeed. D.B.S. data and the Vancouver telephone directory give an idea of the extent of the system at the national and metropolitan levels. Fairly comprehensive lists of major development and 96. financial organizations are tabulated and profiles of sample organizations are presented in Appendix B. Following that, the total value of construction expenditures and building permits issued are discussed as indications of the system's outputs. Appendix C lists the major building projects undertaken in Vancouver recently, showing proportions of public to private and the major types. The chapter ends with a brief discussion of public reactions to building projects in Vancouver, which are presented in more detail in Appendix D. 97. PART B. - THE ORGANIZATIONAL MAKE UP OF UEPS Within the system, an apparently large number of different kinds of organizations seem to be involved. An initial list would include at least: developers, land owners, lawyers, real estate agents, architects, designers, engineers, surveyors, appraisers, planners, interim and permanent lending institutions, (banks, trust companies, mortgage loan companies, life insurance companies, pension funds, credit unions, other government agencies, etc.), mortgage insurance companies, C.M.H.C., general contractors, sub-contractors, tradesmen, unions, materials manufacturers and suppliers, planning departments, building departments, engineering departments, maintenance firms, property management firms, municipal councils, civil and transportation engineers, federal and provincial government agencies, departments and corporations, (departments of public work, transport, municipal and urban affairs, highways, defense, C.N.R., N.H.B.), public committees (school boards, hospital boards, university building committees, etc.), as 4 well as citizen's groups. Many of these organizations are quite small in size. Table VI shows that although UEPS accounts for almost one quarter of the number of corporations in Canada, it accounts for less than 10% of the labour force. This is due mainly to the fact NUMBER OF CORPS. (1) CANADA,1968 PER CENT OF TOTAL SIZE OF LABOUR FORCE CANADA,1961 PER CENT OF TOTAL Building Contractors 6,853 3.5 157,584 2.4 Trade Contractors 9,342 4.8 207,521 3.2 Savings & Credit Inst'ns 804 0.4 (2) Insurance & Real Estate Companies 5,500 2.8 Real Estate Operators & Developers 22,882 11.9 95,477 1.5 Total, UEPS 45,381 23.4 460,582 7.1 Total, Canada 192,764 100.0 6,471,850 100.0 TABLE VI. CORPORATIONS & LABOUR FORCE ENGAGED IN THE URBAN DEVELOPMENT PROCESS. CANADA, 1961 & 1968. Source: DBS, 1961 Census of Canada, Vol. Ill, Pt. 1, Tables 6 & 7. DBS, 61-208, Corporation Taxation Statistics. Notes: 1. Excludes government and professional organizations. 2. Clerical staff not desegregated by function. 99. that many real estate and development companies are two or three man operations. TableVII is a tabulation of companies in the Metropolitan Vancouver region engaged in urban development. Three major categories are used: financial, real estate and contractor. Although we have seen that the large companies are becoming larger and taking over many other companies, there is still a very large number of small shoe-string operations. These probably account for a decreasing share of the business. Table VIII enumerates many of the major development companies in Canada. For the publicly owned ones, their assets are listed, the major areas of operation in Canada, and their land and property holdings in Greater Vancouver. Some of the major privately owned companies are listed as well, but it is almost impossible to ascertain the extent of their assets and their 5 Vancouver based holdings. Of course, this list is no where near being inclusive, as there are many local developers and builders about whom very little is known.^ Much more is known about the financial institutions which provide mortgage money and money for land and construction. 100. LISTING NO. OF CO'S. UNDER LISTING CO'S ALSO LISTED UNDER: MORTGAGE CO'S REAL ESTATE CO'S Life insurance co's Trust co's Credit Unions Finance co's Loan co's Banks Mortgage co's Total Less: co's also listed under mortgage co's 57 16 43 55 42 7 179 399 62 8 12 0 26 16 0 62 0 10 0 0 1 0 70 81 Total Financial 337 Mortgage co's Real Estate co's Real Estate co's Land Dev't co's Property Management Total Less: co's also listed under Real Estate co's 395 81 60 536 56 70 70 13 43 56 Total Real Estate General contractors Building contractors Total Less: co's also listed under general contractors Total contractors 480 283 166 449 47 402 Real Estate co' s General Contractors 8 6 14 47 47 TABLE VII. COMPANIES IN METROPOLITAN VANCOUVER ENGAGED IN URBAN DEVELOPMENT. Source: Greater Vancouver Telephone Directory COMPANY ASSETS AREAS OF OPERATION VANCOUVER PROPERTIES Trizec Corp. Ltd. Cummings Properties Ltd. Great West International Equities Ltd. 259.6 117.7 77.6 Ont., Que., N.S. B.C. Alta, Ont., Que.,N.S. Que., Ont., Alta., B.C. Brentwood shopping center IPEC building Royal Center, Lougheed Mall Campeau Corp. Ltd. (Canadian Interurban Properties Ltd.) 272.2 Ont., Que. — Cadillac Developments Corp. Ltd. 227.5 Toronto i— BACM Industries Ltd. 119.0 Western Canada Land holdings Oxford Leaseholds Co. Ltd. 95.2 Alta., ? ? Bramalea Consolidated Developments Ltd. (in B.C. through joint venture Dunhill Developments,) 80.7 Toronto, Alta.,B.C. Multiple housing developments: Burnaby Mtn. area, Edgemere Gardens, Richmond MEPC Properties Ltd. 80.0 Trans-Canada ? Western Realty Projects Ltd. r 67.1 Alta., B.C. Country Club Estates Richmond, Woodside Estates, Port Coquitlam, Sunset Towers, Beach Ave., 2 warehouses, Brighouse Estate, 604 acres of residential land, proposed 67 acres develop. Richmond. TABLE VIII. MAJOR PUBLIC AND PRIVATE DEVELOPMENT COMPANIES CANADA, 1970. t-c Table VIII Continued : COMPANY ASSETS AREAS OF OPERATION . VANCOUVER PROPERTIES S.B. McLaughlin Assoc.Ltd. 64.6 Ont. — Allarco Developments Ltd. 62.5 Alta, B.C. Pacific Plaza Hotel Park Royal Towers Great Northern Capital Corp. Ltd. (Home Smith Ltd.) 60.7 ? Tsawwassen: 20 acres res. plus 65 other acres. Markborough Properties Ltd. 59.8 Ont., Man., B.C. Comm. site Block Bros. Industries Ltd. 54.8 B.C. See list 1. Canadian Goldale Corp. Ltd. 53.7 Ont. — Commonwealth Holiday Inns of Canada 49.6 Trans-Canada Holiday Inns Y & R Properties Ltd. 43.7 Ont. — Canadian Equity & Development Co. Ltd. 41.9 Ont. — Halifax Developments Ltd. 35.7 N.S. — Cambridge Leaseholds Ltd. 30.9 Ont., Atlantic Prov. — Nu-West Development Corp. Ltd 28.8 Alta., B.C. ? Peel-Elder Ltd. 28.5 Ont. — Table VIII Continued COMPANY ASSETS AREAS OF OPERATION VANCOUVER PROPERTIES Orlando Realty Corp. Ltd. 28.1 Ont. — Four Seasons Hotels Ltd. 27.8 Ont. Int'l., B.C. Four Seasons Development Wall & Redekop Corp. Ltd. 26.5 B.C. See list 2. Dawson Developments Ltd. 25.5 B.C., Alta. See List 3. Imperial General Properties 24.7 Ont. — Monarch Investments Ltd. 22.7 Ont., Que. Richard Costain Ltd. 22.1 Ont. Major Holdings & Developments 21.1 Ont. Sifton Properties Ltd. 20.4 Ont. Consolidated Building Corp. 19.6 Toronto Gillen Engineering & Construction Ltd. 17.2 Ottawa Shore to Shore Corp. Ltd. 15.6 Ont. Headway Corp. Ltd. 15.4 Ont., Man., Alta. Select Properties Ltd. 13.5 Ont. Alliance Building Corp. Ltd. 12.2 Toronto Paragon Properties 19.4 B.C., Alta. Table VIII Continued COMPANY ASSETS AREAS OF OPERATION VANCOUVER PROPERTIES Corporate Properties Ltd. 11.5 Ont., Sask., Alta. United Equities Ltd. 9.0 Vancouver, Winnipeg ? Great National Land & Investment Corp, Ltd. 8.4 Vancouver Island Melton Real Estate Ltd. 7.1 Alta., Sask. United Provincial Investments 6.4 Vancouver See list 4 International Land Corp. Ltd. 6.1 B.C. See list 5 McAra Properties Ltd. 3.7 Regina Okanagan Holdings Ltd. 3.1 B.C. Interior Acme Investments Ltd. 2.0 Edmonton Highland Development Co. Ltd. 1.1 B.C. ? Austin Investment Corp. Ltd. 0.9 Vancouver ? PRIVATE COMPANIES WITH VANCOUVER HOLDINGS ASSETS AREAS OF OPERATION VANCOUVER PROPERTIES Dominion Construction Co. Ltd Western Canada Bentall Centres & buildings R.C. Baxter Ltd. 69.0 Western Canada Columbia Centre, Martello Towers Grosvenor-Laing (B.C.) Ltd. (Canadian Allied Property Investments Ltd.) B.C. Guildford town centre Project 200 (1/3 interest) Annacis Industrial Estate Langley Park Estate Cemp Investments Ltd. T. Eaton Co. Toronto-Dominion Bank Vancouver Pacific Centre Fairview Corp. Ltd. Cemp Investments Ltd. Trans-Canada shopping centres Marathon Realty Co. Ltd, CP Investments Ltd. Ithacan Development Corp. Trans-Canada shopping centres Project 200 (1/3 interest) Langara Gardens (1/2 interest) 70.0? Western Canada Hammerson Properties Toronto, Calgary Vancouver Office building Pender and Granville Maclab Enterprises 40.0? Western Canada Mobil Oil Estates Ltd. B.C., Int'l. Narod Construction Ltd, B.C., Alta. Langara Gardens (1/2 interest) condominium dev't Surrey Zajac Development Corp. B.C. See list 6, Oceanic Properties Ltd. B.C. Guinness Tower TABLE VIII MAJOR PUBLIC AND PRIVATE DEVELOPMENT COMPANIES, VANCOUVER, 1970, Source: Canadian Real Estate Annual; Company reports; Note: Information on many other companies cannot be obtained from these sources. 0 01 106. Table VIII Continued LIST 1. BLOCK BROS. INDUSTRIES LTD. APARTMENT BUILDINGS ADDRESS SUITES Marvan Manor 8623 Selkirk St. 31 Beach Towers 1600 Beach Ave. 450 Parisienne 2050 West 1st Ave. 26 York House 711 - 5th Ave. N.W. 125 St. Roch 2323 W. 2nd Ave. 62 La Dawn 8739 Osier St. 31 Monticello 1165 W. 4th Ave. 32 Thunderbird 2476 York St. 61 Emerald Terrace 2045 Nelson St. 84 Nassau House 511 Ash St. N.W. 68 Century House 2370 W. 2nd Ave. 100 Seaside Plaza 2324 W. 1st Ave. 72 Columbus House 1651 Harwood St. 150 Richmond Gardens 621-51 Gilbert 240 Francis Drake 1039 Burnaby 20 Cypress Gardens 2255 Cypress St. 47 Sunset Plaza (50% int.) 1111 Beach 176 Hendry House 1265 Burnaby 185 Musqueam Park Marine Dr. & 49th 106 COMMERCIAL BUILDINGS Block Building Royal Sq. Shopping (50% int. ) Block Building Centre Burrard Building Richmond Centre Marine Dr. Industrial Park AREA 2695 Granville 800 McBride Ave. 3117 Kingsway 1030 W. Georgia 814 Granville, Rich. 25,000 63,000 8,000 209,000 4,100 665,000 995 Homesites 107. Table VIII Continued LIST 2. WALL & REDEKOP CORP. LTD. (Partial list) SUITES Beacon Hill, North Vancouver 98 Briars, North Vancouver 50 Ambleside Towers, West Vancouver 185 1750 West 13th Ave. Vancouver Oak-Granville area 45 Greenwood Gardens, Surrey 183 Andrea, 3787 West 4th Ave., Vancouver 42 5th Ave. and Howay, New Westminster 108 Ashdown, New Westminster 113 Wall & Redekop Motor Hotel 112 rooms LIST 3. DAWSON DEVELOPMENTS LTD. Champlain Heights Villa Montecito Simon Fraser Village Evergreens II, Port Moody The Meadows, Surrey (condominiums) 118, Highview Estates, Port Moody (condominiums) 132 1070 West Pender Building (office building) 21 storey 1090 West Pender Building (office building) 12 storey Large land bank LIST 4. UNITED PROVINCIAL INVESTMENTS Admiral Barclay Towers Lonsdale Towers Rembrandt Motor Hotel Alberni Towers 1770 Barclay St, 16th & Lonsdale Davie & Thurlow 1444 Alberni St, 86 78 190 129 Condominium project Seymour River, N. Van. 67 units 108. Table VIII Continued LIST 5. INTERNATIONAL LAND CORPORATION SUITES Seastrand, West Vancouver 114 Spuraway, West Vancouver 167 Planned: Panorama Village (50% interest) $15m. Ritz Hotel, Vancouver Condominiums in Fraser Valley 36 units LIST 6. ZAJAC DEVELOPMENT CORP. Pacific Palisades Crystal Court Lincoln House Lincoln Arms Greenbriar Park Terrace Bayside Towers The Edgemont Lagoon Villa El Presidente 1640-50 Alberni St, 1434 Alberni St. 1155 Harwood 1306 Haro 1932 Alberni 1914 Robson 1846 Nelson 1949 Barclay 1958 Barclay 1521 Burnaby 256 83 132 42 Plus: 2 more apartment buildings on Harwood St. 1 for Burnaby, B.C. planned 109. The major financial institutions are listed in Table IX with their total Canadian assets and the percentage of those assets in mortgages. These tables are summarized in Figures 6 & 7 which graph the total assets of financial institutions and their mortgage investments over the past 20 years. Most noticeable is the astronomical growth of all types of institutions, the slight decline in the rate of mortgage investment by life insurance companies, the negligible contribution of the pension funds and the increasing role played by the trust and loan companies. 110. FINANCIAL INSTITUTIONS I. Chartered Banks Royal Bank Bank of Montreal Canadian Imperial Bank of Commerce Bank of Nova Scotia Toronto-Dominion Bank Banque Canadienne Nationale Provincial Bank of Canada TOTAL CANADIAN ASSETS $mill. 6,739.9 7,075.9 6,043.7 3, 594.1 3.777.7 1.640.8 868.9 TOTAL MORTGAGES $mill. 256.0 225.6 141.2 155. 5 135.0 48.7 15.4 PER CENT 3.6 3.2 2.3 4.2 3.5 2.9 1 . 8 Total, Banks 29,738.9 977.3 II. Life Insurance Co's. London Life Insurance Co. Sun Life Assurance Co. of Canada Mutual Life Assurance Co. of Canada Metropolitan Life Insurance Co. (U.S.) Prudential Insurance Co. of America (U.S.') Canada Life Assurance Co. Manufacturers Life Insurance Co. Great-West Life Assurance Co. Standard Life Assurance Co. U.K Confederation Life Association Crown Life Insurance Co. North American Life Assurance Co. Imperial Life Assurance Co. of Canada Dominion Life Assurance Co. Industrial Life Assurance Co. Excelsior Life Insurance Co. National Life Assurance Co. of Canada Prudential Assurance Co. Ltd. (U.K.) 1,533.0 1,648.9 1,159.0 1,147.0 681.2 757.9 882.0 867.7 708.0 511.7 418.5 503.7 375.7 251. 8 222.3 233.2 188.2 261.5 1,149.1 603.0 551.7 503.4 454.8 351.3 340. 8 304.5 294.4 253.9 249.1 219.0 173.6 134.7 117.8 95.8 93.0 84.1 3.3 75.1 36.7 47.6 43.9 66. 5 46.4 38.7 35.1 41.6 49.4 59.6 43. 5 45.9 53. 5 52.9 40. 5 49.4 32.2 Total, life insurance co's 12,351.5 5,974.0 48.3 111. -) TOTAL TOTAL PER CANADIAN MORTGAGES CENT ASSETS $mill. $mill. % III. Trust & Loan Co's. Canada Permanent Mortgage Corp. 1,411.5 1,096.5 77. 8 Huron 8s Erie-Canada Trust 1,324.5 1,085.7 82.0 Royal Trust Corp. 1,687.6 838.7 49.6 Guaranty Trust 648.1 418.3 64.6 Victoria & Grey Trust 443.8 352.1 79.3 Kinross Mortgage Corp. 303. 5 290.0 95.5 Investors Group 462.1 277.6 60.0 National Trust 540.4 276.2 51.1 Credit Foncier 284.8 245.7 86.1 Montreal Trust 486.4 209 „ 8 43.2 Eastern Canada Savings Corp. 172.8 155.0 89.6 Crown Trust 111. 5 78.9 70.8 Total, Trust & Loan Co's. 4,877.0 5,324,5 67.6 LOANS HELD BY MAJOR END OF 1969. TABLE IX. CANADIAN ASSETS & MORTGAGE CANADIAN FINANCIAL INSTITUTIONS, Source: Company Reports; Financial Post Corporation Service 112. PART C. - OUTPUTS OF THE SYSTEM Although UEPS should be thought of as a set of processes, traditional works usually describe the system in terms of what it produces (outputs) and of the organizations involved. From the point of view of economics the urban environment production system is a subsystem of the total production system of Canadian society, whose combined outputs constitute the Gross National Product (yearly output of goods and 7 services). System outputs are traditionally described in dollar values or number of units (this latter being reserved for residential categories). Construction expenditures account for about 17% of the GNP and this has remained fairly constant over a 10 year period, with a slight downwards shift evident (see Table X ). Not all of this is related to urban development but the form of available statistics makes precise calculation difficult, if not impossible. DBS breaks down this total into building and g engineering categories which have maintained a fairly constant 60/40 split over the past 10 years, so. that building construction accounts for approximately 10%, engineering construction 7% of the Gross National Product. 113. YEAR TOTAL $Mill TOTAL CONSTRUCTION AS PERCENTAGE OF GROSS NATIONAL EXPENDITURE Percent 1961 7,086 18.1 1962 7,343 17.3 1963 7,715 17.0 1964 8,662 17.4 1965 9,929 18.1 1966 11,235 18.3 1967 11,620 17.7 1968 12,214 17. 1 1969 13.207 16.8 1970 13,623 16.1 TABLE X. TOTAL VALUE OF CONSTRUCTION WORK PERFORMED IN CURRENT DOLLARS, AS A PERCENTAGE OF GROSS NATIONAL EXPENDITURE CANADA, 1961-1970. Source: DBS 64-201, Table 1; 1961-1969 actual; 1970 preliminary 114. Table XI lists expenditures on the major construction types and the average percent of total Canadian construction expenditures: residential (28%), institutional (10%), roads and highways (10% of which urban roads constitute approximately one half), commercial (10%), industrial (7%), other building construction (4%). These proportions have remained surprisingly constant over the ten year period. To be considered as urban development, a project must be situated in an urban area and the facilities so provided must be normally used for mainly human activities. System "products" such as mine and mine mill buildings, grain elevators, farm buildings, most marine construction, rural road building, dams and irrigation, electric power construction, railway, telephone and telegraph, gas and oil facilities, and some other categories of engineering construction should thus be excluded.9 Using 1967 figures for illustration it can be seen that: total construction expenditures were $11.5 million; excluded categories accounted for approximately $3.5 billion; so that approximately $8.0 billion (12.5% of GNP) represents the value of expenditures for the system's outputs. This compares with an estimate by the Hellyer Task Force report that in 1967, $10 billion was spent in the total field of housing and urban development. 1967 1968 1969 ' 1970 VALUE PER CENT VALUE PER CENT VALUE PER CENT VALUE PER CENT TYPE OF CONSTRUCTION OF TOTAL OF TOTAL OF TOTAL OF TOTAL $Mill % $Mill % $Mill % $Mill % Total construction 11,620 100.0 12,214 100.0 13,207 100.0 13,623 100.0 Total building 6,852 59.0 7,258 59.4 8,055 61.0 8,038 59.0 Residential 3,091 26.6 3,587 29.3 4,228 32.0 3,935 28.9 Industrial 870 7.5 744 6.1 869 6.6 996 7.3 Commercial 1,221 10.5 1,146 9.4 1,152 8.7 1,262 9.3 Institutional 1,258 10.8 1,379 11.3 1,334 10.1 1,346 9.9 Other building 412 3.6 402 3.3 472 3.6 499 3.6 Total engineering 4,768 41.0 4,956 40.6 5,152 39.0 5,585 41.0 Marine 143 1.2 134 1.1 166 1.3 145 1.1 Road, highway & aero.. 1,283 11. 1 1,186 9.7 1,255 9.5 1,348 9.9 Waterworks & sewage systems 385 3.3 403 3.3 398 3.0 470 3.4 Dams and irrigation... 163 1.4 230 1.9 69 0.5 64 0.5 Electric power 859 7.4 825 6.7 1,005 7.6 1,099 8.1 Railway, telephone & telegraph 516 4.4 524 4.3 525 4.0 562 4.1 Gas & Oil facilities.. 742 6.4 901 7.4 966 7.3 1,099 8.1 Other engineering 677 5.8 753 6.2 768 5.8 798 5.8 TABLE XI. TOTAL VALUE OF CONSTRUCTION WORK PERFORMED BY PRINCIPAL TYPE OF CONSTRUCTION CANADA, 1967-1970. Source: DBS 64-201, Table 3; 1967-1969 actual; 1970 preliminary. 116. Table XII & XIII break down the major categories into their constituent types, with residential shown in Table XIII by number of dwelling unit starts; and all others in Table XII by dollar values. In 1961 single detached accounted for 60% of all starts, but by 1970 had dropped to about 35%, even though the absolute number remained remarkably constant. For all other categories, the percentage of various types remained relatively constant. Similar trends may be noted for the Metropolitan Vancouver area^over the ten year period. Table XIV demonstrates that residential accounted for a relatively constant 55 - 60% of the total value of construction in Metropolitan Vancouver. However, in 1960 almost 50% of dwelling completions were single family, whereas by 1970 this had shrunk to less than one third. Apartment completions are further broken down into municipalities in Table XVI which shows the definite trend in greater detail. The city of Vancouver seems to have peaked in 1965, whereas Burnaby and New Westminster, the other major central locations, continue to grow. The other major building categories, commercial, industrial and institutional are further examined in Table XVII which tabulates the major building projects in the lower mainland over a three year period, 1966 - 68. These are summarized in Table XVIII by category, including the number of projects, the estimated 117. dollar value and the percentage of total estimated expenditures. It can be seen that commercial and commercial-residential (i.e. apartments) account for 52.8% of the total value of major projects. In the commercial category, office buildings were 79%; shopping centres 8.6%; hotels, etc., 8.6%; service 3.6%; parking 0.2%, of the total. The second major category is projects developed by all three levels of government, which made up 21.6% of total expenditures. In this category, transportation and maintenance were 68%; government office buildings 19%; public buildings (schools, hospitals, community centres) 9.4%; public housing 3.6% of the total. A further breakdown of major projects is included in Appendix C, which tabulates the major building permits issued in the city of Vancouver, 1957 - 1970. 118. TYPE OF STRUCTURE VALUE OF CONSTRUCTION $000'S Total value of construction 13,622,895 Total building construction 8,038,093 Residential 3,935,378 'Industrial 995,947 2. Factories, plants, workshops, food canneries 3. Mine and mine mill buildings 4. Railway stations, offices, roadway buildings 5. Railway shops, engine houses, water and fuel stations 838,850 120,809 21,032 15,256 Commercial 1,262,367 6. Warehouses, storehouses, refrigerated storage 7. Grain elevators 8. Hotels, clubs, restaurants, cafeterias, tourist cabins 9. Office buildings 10. Stores, retail and wholesale 11. Garages, and service stations 12. Theatres, arenas, amusement and recreational buildings 13. Laundries and dry cleaning establishments 86,911 7,404 89,966 606,005 256,927 109,677 102,257 3,220 Institutional 1,345,882 14. Schools and other educational buildings 15. Churches & other religious buildings... 16. Hospitals, sanitoria, clinics, first- aid stations, etc 17. Other institutional buildings 917,021 25,435 276,080 127,346 TABLE XII. TOTAL VALUE OF CONSTRUCTION WORK PERFORMED BY TYPE OF STRUCTURE, CANADA, 1970. Source: DBS 64-201, Table 6; 1970 preliminary. Table XII Continued TYPE OF STRUCTURE VALUE OF CONSTRUCTION $000's Other building construction 498,519 18. Farm buildings (excluding dwellings) 19. Broadcasting, radio St television, relay & booster stations, telephone exchanges '. 20. Aeroplane hangars ' 21. Passenger terminals, bus, boat or air.... 22. Armouries, barracks, drill halls, etc.... 23. Bunkhouses, dormitories, camp cookeries,, bush depots & camps 24. Laboratories 25. Other building construction 207,338 57,717 26,258 57,261 7,925 17,212 35,899 88,909 Total Engineering construction 5,584,802 Marine construction 144,668 26. Docks, wharves, piers, breakwaters 27. Retaining walls, embankments, riprapping. 28. Canals St waterways 29. Dredging & piledriving 30. Dyke construction 31. Logging booms 32. Other marine construction 60,644 31,093 27,044 9,332 9,557 1,200 5,798 Road, highway St aerodrome construction 1,348,325 33. Highway, road St street construction (including grading, scraping, oiling, filling) 34. Parking lots 36. Sidewalks, paths 37. Aerodromes, landing fields, runways, tarmac 1,276,164 11,004 25,254 35,903 Waterworks & sewerage systems 469,947 38. Tile drains, drainage ditches, storm sewers 39. Water mains, hydrants St services 40. Sewage systems St connections 41. Pumping stations, water 42. Water storage tanks 37,726 131,308 265,083 29,092 6,738 120. Table XII Continued TYPE OF STRUCTURE VALUE OF CONSTRUCTION $000's Dams & irrigation 43. Dams & reservoirs 44. Irrigation & land reclamation projects... 63,779 28,516 35,263 Electric power construction 45. Electric power generating plants, including water conveying & controlling structures 46. Electric transformer stations 47. Power transmission & distribution lines, trolley wires 48. Street lighting Railway, telephone & telegraph 49. Railway tracks & roadbed 50. Signals & interlockers 51. Telegraph & telephone lines, underground & marine cables Gas & oil facilities 52. Gas mains & services 53. Pumping stations, oil 54. Pumping stations, gas 55. Oil storage tanks 56. Gas storage tanks 57. Oil pipe lines 58. Gas pipe lines 59. Oil & gas wells 61. Oil refinery - processing units 62. Natural gas cleaning plants 1,099,099 480,776 76,547 511,437 30,339 561,988 266,138 23,138 271,981 1,098,634 123,099 9,600 52,696 36,258 4,614 23,234 88,265 405,206 168,089 187,573 Other engineering construction 63. Bridges, trestles, culverts, overpasses, viaducts 64. Tunnels & subways 65. Incinerators 66. Park systems, landscaping, sodding, etc. 798,362 200,353 41,921 3,750 27,466 121. STARTS SEMI- SINGLE DETACHED APARTMENT PERIOD DETACHED & DUPLEX ROW & OTHER TOTAL DWELLING UNITS 1961 76,430 11,650 1,864 35,633 125,577 1962 74,443 10,975 3,742 40,935 130,095 • 1963 77,158 7,891 3,895 59,680 148,624 1964 77,079 8,706 4,755 75,118 165,658 1965 75,441 7,924 5,306 77,894 166,565 1966 70,642 7,281 5,000 51,551 134,474 1967 72,534 9,939 7,392 74,258 164,123 1968 75,339 10,114 8,042 103,383 196,878 1969 78,404 10,373 10,721 110,917 210,415 1970 70,749 10,826 17,055 91,898 , 190,528 TABLE XIII. DWELLING STARTS BY HOUSING TYPE CANADA, 1961-1970. Source: CMHC, Canadian Housing Statistics, Table 10. BUILDING TYPE 1961 VALUE PER CENT OF TOTAL $000 % 1962 VALUE PER CENT OF TOTAL $000 % 1963 VALUE PER CENT OF TOTAL $000 % 1964 VALUE PER CENT OF TOTAL $000 % Residential Industrial Commercial Institutional Total 60,212 55.5 9,663 9.3 22,279 20.4 16,238 14.8 108,482 100.0 72,994 61.5 7,101 5.9 20,314 16.8 18,765 15.8 119,174 100.0 93,628 67.5 7,199 5.2 22,927 16.5 15,040 10.8 138,794 100.0 110,859 59.0 14,010 7.5 31,396 16.7 31,522 16.8 187,787 100.0 1965 VALUE PER CENT OF TOTAL $000 % 1966 VALUE PER CENT OF TOTAL $000 % 1967 VALUE PER CENT OF TOTAL $000 % 1968 VALUE PER CENT OF TOTAL $000 % Residential Industrial Commercial Institutional Total 114,316 53.0 33,071 15.4 39,976 18.6 28,039 13.0 215,402 100.0 111,535 53.5 20,609 10.0 45,246 21.4 32,855 15.1 210,245 100.0 164,625 58.8 17,341 6.0 68,866 24.8 30,182 10.4 281,014 100.0 206,638 63.0 41,698 12.8 51,960 15.8 28,076 8.4 328,372 100.0 TABLE XIV. TOTAL VALUE OF BUILDING CONSTRUCTION WORK PERFORMED BY BUILDING TYPE, METROPOLITAN VANCOUVER, 1961-1970. 1969 1970 - VALUE PER CENT VALUE PER CENT AVERAGE BUILDING TYPE OF TOTAL OF TOTAL PER CENT $000 1o $000 I c I Residential 211,964 62 .5 151,851 60 .1 58 .5 Industrial 22,209 6 . 5 22,617 9 .0 8 .7 Commercial 62,435 18 .3 56,809 22 .4 20 .0 Institutional 41,603 12 .7 22,182 8 .6 12 .8 Total 338,211 100 .0 253,459 100.0 100 .0 TABLE XIV. TOTAL VALUE OF BUILDING CONSTRUCTION WORK PERFORMED BY BUILDING TYPE, METROPOLITAN VANCOUVER, 1961-1970. (CONT'D). Source: DBS 64-201 124. STARTS PERIOD SINGLE DETACHED TWO FAMILY ROW APARTMENT TOTAL DWELL I] SfG UNITS 1963 3,506 100 201 4,073 7,870 1964 3,577 70 74 5,419 9,140 1965 3,702 114 25 6,899 10,740 1966 4,590 204 0 7,524 12,318 1967 5,171 226 137 5,781 11,315 1968 6,010 468 255 8,189 14,922 1969 4,927 376 370 8,574 14,247 1970 3,919 380 595 8,594 13,488 - TABLE XV. DWELLING STARTS BY HOUSING TYPE METROPOLITAN VANCOUVER 1963-1970. Source: DBS 64-002, Table M-15. 125. m a o •H +-> (1) i—1 a 6 o o -p •H £ bJD a •H r-i i—I <D <H o o iz; 9000. 8000 7000 6000 5000 4000 3000 2 0 0 0 1000 44- / /apartments CO TP LO CD CD CD CD CD 05 G5 05 i—I i—l 1-1 r - l o CO CD O CD CD CD O C5 • 05 <35 05 r - i rM H FIGURE 12 DWELLING COMPLETIONS BY TYPE OF CONSTRUCTIONS, METROPOLITAN VANCOUVER, 1963-70. 126. MUNICIPALITY 1963 1964 1965 1966 1967 1968 Vancouver 2,801 3,432 5,220 4,808 3,017 3,160 Burnaby 450 573 520 547 1,035 1,248 New Westminster 378 440 352 725 774 1,117 North Vancouver City 69 403 157 460 482 803 Coquitlam 6 — 50 112 86 579 North Vancouver District 90 — 34 28 48 311 West Vancouver 343 411 271 367 253 276 Richmond 8 81 — — 119 69 Surrey 16 22 178 98 91 38 Total Metro Vancouver 4,265 5,473 6,924 7,524 5,956 7,445 TABLE XVI. APARTMENT UNIT COMPLETIONS BY MUNICIPALITY METROPOLITAN VANCOUVER, 1963-1968. Source: Burnaby Planning Department", 1969. 127. PROJECT & LOCATION TYPE1 STATUS2 VALUE3 $Mill. DEVELOPER Land Reclamation North Vancouver Gov't. P 5.0 NHB CP Air Terminal Airport Ind. u/c 25.0 CPR Air Terminal Airport Gov't u/c 22.0 Dept. of Transport Sports Arena, PNE Vancouver Gov't c 6.0 PNE Sea Island Bridge Vancouver/Richmond Gov' t 10.0 Dept. of Transport Guinness Tower Downtown Comm. u/c 10.0 Br. Pac. Props. Canada Square Downtown Gov't Comm. p 50.0 Federal Gov't Grain Jetty Vancouver Harbour Ind. p 3.6 Alberta Wheat Pool Project 200 Downtown Comm. Res. p 300.0 Grosvenor- Laing, CPR, Woodwards, Simpson's- Sears New Pier Vancouver Harbour Gov't p 8.0 NHB TABLE XVII. SURVEY OF SOME MAJOR PROJECTS IN THE LOWER MAINLAND, 1966-68. Source: Greater Vancouver Real Estate Board Notes 1. Types: Institutional, Commercial, Residential Industrial, Government. 2. Status: Completed, Under Construction, Planned 3. Estimated 4. See Table XVIII for a summary of this data. 128. PROJECT 8s LOCATION TYPE1 STATUS2 VALUE3 $mill. DEVELOPER Museum 8s plane- tarium, Kitsilano Gov't. U/C 3.3 Vancouver City City Hall Annex Vancouver Gov't. p 2.5 Vancouver City Combined Service Center, Newton Ind. U/C 10.0 B.C. Hydro Surrey Hospital Surrey Inst. p 3.8 Hospital Board Guildford Gardens Surrey Res. Comm. p 25.0 Brodie Surrey Ind. Center Surrey Ind. U/C 20.0 B.C. Hydro Capilano Mall North Vancouver Comm. c 1.7 Brantford Holdings Grain Elevator North Vancouver Ind. U/C 14.1 Saskatchewan Wheat Pool Deep Sea Docks North Vancouver Ind. U/C 4.0 Neptune Terminals Conservatory, Q.E. Vancouver Gov't. U/C 1.0 Parks Board Langara Gardens Vancouver Res. U/C 9.0 Narod Constr. B.C. Research Bldg. U.B.C. Gov't Inst. U/C 3.0 Narod Constr. Vancouver Wharf Vancouver Harbour Ind. c 2.5 Van. Wharfs Ltd. Vancouver Wharf Vancouver Harbour Ind. c 1.7 Van. Wharfs Ltd. Vancouver Wharf Vancouver Harbour Ind. p 15.0 Van. Wharfs Ltd. Bentall Center Downt own Comm. c 19.0 Dominion Constr. Burrard Inlet Cross- ing, Habour Gov't. p 100.0 Federal Gov't Indian Arm Cause- way, Upper Habour Ind. p 30.0 Foundation Co. 129. PROJECT & LOCATION TYPE1 STATUS2 VALUE3 $mill. DEVELOPER U.B.C. Inst. . C 14.0 U.B.C. U.B.C. Inst. U/C 25.4 U.B.C. U.B.C. Inst. P 40. 5 U.B.C. Simon Fraser U. Burnaby Inst. C 5.6 S.F.U. lilacMillan Bloedel Downtown Comm. U/C 13.0 Grosvenor-Laing Empire Centre Downtown Comm. Res . p 21.1 Anchorage Investments Burrard & Robson Downtown Comm. U/C 3.0 Commonwealth Savings West End English Bay Res. C 1.0 Block Bros. Service Bldg. Vancouver Ind. c 3.0 T. Eaton Co. Block 42/52 Downt own Comm. p 75.0 Fairview Corp. T. Eaton Co. Denman Place West End Comm. Res. U/C 8.0 Reid Properties Tsawwassen S.C. Suburbs Comm. p 0.8 Re id Properties Richmond S.C. Suburbs Comm. 1.5 Reid Properties CNR Bridge Vancouver Harbour Ind. U/C .. 32.0 CNR CNR Yards Port Mann Ind. U/C ? CNR City Works Yard Vancouver Ind. c 3.7 Vancouver City 130. Type of Construction Number of projects Value $ mill Percent of Total % Industrial 17 152 11.5 Industrial- Government 1 30 2.2 Commercial 26 352 26.6 Commercial- Residential 6 348 26.2 Residential 13 103 7.8 Residential- Government 3 10 1.0 Government 30 245 18.4 Institutional 4 86 6.5 Total 100 1325 100.0 TABLE XVIII. MAJOR CONSTRUCTION PROJECTS BY PRINCIPAL TYPE OF CONSTRUCTION, LOWER MAINLAND, 1966-1968. Source: Greater Vancouver Real Estate Board, "Survey of Major Projects in the Lower Mainland, 1967", Vancouver, 1970. 131. PART D. - PUBLIC REACTION TO URBAN DEVELOPMENT This chapter has so far discussed the organizational make-up of the system and what it produced. A final aspect to be discussed in this section deals with the system's environment; especially with public reaction and response to the system's outputs. However, the dimensions of public dissatisfaction and acceptance of the urban environment are poorly understood indeed. There are almost no relevant data for "urban i n d i c a t o r s " M o r e critically, there are few conceptual tools available which could be used to construct sets of such indicators. Table XIX presents one interesting attempt to construct indices based on the notion of urban health and malaise. However, it is very crude and does not get at the more subtle aspects of the quality of urban life. How do people feel about the city? Is the course of its development congruous with their life plans? Does it satisfy their needs and ambitions? Studies which have been conducted along these lines have been too limited in scope and purpose to be of any use. These include (a) consumer research on shopping and other behavior; (b) political research on voting behavior. However this work is usually framed around the needs of political parties and private corporations. Psychiatric, reflecting reaction to stress. 1. Psychotic rate (annual hospitalization) perhaps the problem of downtown and inner city cores. 2. Need for psychiatric care, perhaps the problem of suburbia and high-rise. 3. Completed suicides; notoriously high in some university populations. 4. Rate of sexual deviance; which tends to concen- trate in cities. 5. Rate of hard drug usage; which also concentrates in cities. 6. Alcoholism, omnipresent. 7. Rate of repeated self-caused accidents (proneo-s), like one-car accidents - an indirect index of mental health. Social I. Marital, reflecting broad trends in society. 1. Rate of run-away children, an index of unhappy homes. 2. Rate of run-away adolescents, ditto. 3. Rate of child neglect. 4. Marital breakdowns. 5. Rate of common law relationships. 6. Rate of desertion or one parent households; a social concommitant of poverty. Social II. Criminological, all of which tend to concentrate in the city. 1. Homicide rate. 2. .Juvenile arrests. 3. Adult arrests. 4. Rate of crimes of violence (apprehended or not). 5. Rate of attempted suicide. 6. Rate of arrested sexual deviates. 7. Rate of arrested drug users. Social III. Environmental, reflecting physical blight and social stress. 1. Percentage of unfit housing units. 2. Crowding in terms of room occupants or persons per acre or square mile. The threshold of over- c crowding being the number of persons exceeding the number of rooms occupied. Health and Medical 1. Infant mortality, reflecting ignorance and neglect. 2. Infant morbidity, ditto. 3. Rate of nutritional deficiency - an index of poverty and ignorance. 4. Incidence of child lead poisoning; an index of child neglect. 5. Rate of venereal disease; an index of neglect. 6. Rate of tuberculosis; also an index of neglect and poverty. 7 Rate of poor child dental care. 8*. Rate of illegitimate pregnancies - an expression of rebellion, or ignorance and neglect. 133. D. Economic 1. Rate of families at poverty lines. 2. Rate of families at subsistence level. 3. Male unemployment (annual) rate. 4. Unemployment of females as a percentage of the labour force available. E. Educational 1. Drop-out rate of 16-18 year olds. 2. Percentage of men in population over 25 years with eight years or less of education. TABLE XIX. POSSIBLE INDICES OF URBAN HEALTH AND MALAISE. Source: Daniel Cappon, "Canadian Cities, Their Health, Malaise & Promise," Habitat, 13, No. 3, 1970, p. 6. 134. To overcome the narrow interest group bias in the research, it is necessary to collect both overall and specific assess- ments of the urban environment by segments of the population. 12 These should be positively oriented and stated in terms that most citizens can understand - in terms of their goals, 13 activities and the settings they normally inhabit. Lacking a viable framework it seemed useful to begin with readily available information sources such as newspaper clipping files. This source is limited in scope and biased. Rarely are person's dissatisfactions stated explicitly as he goes about his daily rounds. When citizens do become actively involved in opposing a development proposal - only then do their attitudes become newsworthy - positions become distorted and exaggerated. And, of course, only a vocal minority engage in this kind of activity. Newspaper clippings present an unrepresentative, distorted and overly dramatized view of the public's feelings and attitudes. However, this is no difficulty for the present work v/hich is mostly concerned with developing the method of investigation. Almost any source would have sufficed. The major advantage of the source is its ease of accessibility. Table XX is a representative survey of Vancouver newspapers over the past few years of articles dealing with the effects of 135. A. Apartment Dwellings. 1. Apartment children, vandals; psychosomatic reactions. 2. 2\ storey clubhouse to counteract isolation. 3. Study of West End "swingers". 4. Policy records indicate higher crime rate in the West End. 5. Recreation in high rise apartments. 6. Methods to study effects of high rise living not yet devised. 7. Density may be related to stress. 8. Community centre in West End. B. Citizen Participation 1. City council rejects a proposal to establish a "citizens' committee" on transportation. 2. Point Grey ratepayers denied say in public meeting by imposed quota of 20 speakers. 3. Advisory citizen's body formed for the Britannia Complex in East end. 4. Public hearing and massive resistance to Marathon Realty's Arbutus Shopping Centre Proposal. 5. Committee of CMHC, Provincial government, City government, SPOTA set up to deal with Chinatown Renewal. 6. Residents of Fairview urged to form citizens' groups if any control over development is to be obtained. C. Environmental Concerns 1. Survey shows that only 18% of those interviewed preferred city living as opposed to suburban, country or small-town locations. 2. Public confrontation to obtain 38 acres at Jericho for a park rather than for buildings. 3. Fight to preserve Locarno Park from the road builders. 4. Save Stanley Park Entrance Committee formed. 5. Attempts to preserve historic buildings. 6. Public efforts to save Quilchena lands failed. 7. Homeowner petitions reject Langara gardens project. D. Low Cost Housing 1. Gallup polls find that over one third of population dissatisfied with present housing conditions. 2. Studies indicate a damaging effect on mental health of people displaced by urban renewal. 3. Tenants of public housing projects assess their living conditions. 4. Middle income residents exploited in Bramalea. TABLE XX. EXAMPLES OF PUBLIC REACTIONS TO URBAN DEVELOPMENT Source: Newspaper Clipping Files. 136. apartment dwelling life, citizen participation, environmental concerns and the problems of providing adequate low cost housing. In Appendix D, five issues involving citizen reaction to development proposals are analyzed, what the public's dissatisfactions were, and what organizations were involved. Three of these issues are followed up as case studies in the next chapters. CHAPTER V - THE VANCOUVER CONTEXT 137. Work has been started on a number of cases of urban develop- ment in Vancouver at various levels of detail.1 Three cases were selected for presentation in this study and these will be briefly described below. The chronologies of the cases are contained in Appendix E. These are set in context with a brief description of the Vancouver development scene. Metropolitan Vancouver, with a population of over one million, is the third largest city in Canada. With the development of the west coast and the growth of Pacific trade, Vancouver is likely to be one of the fastest growing regions of Canada. Compared with Toronto and Montreal, Vancouver has not yet committed itself to large scale developments and freeways, so that is still has many options open. Thus the course of urban development during the 70's will be critical for the establish- ment of a high quality of urban living for Vancouver. The Lower Mainland Regional Planning Board had been set up in 1949 as a regional planning agency but it was doing its job too well, which was not in the interests of the rurally oriented Social Credit provincial government. This board was disbanded in 1967 and its responsibilities diffused among four regional districts which replaced it. The City of Vancouver and sixteen adjacent cities, districts and unincorporated areas are now united in the Greater Vancouver Regional District. It was given many responsibilities but little authority and no policy-making powers. Gradually regional functions have been 138. transferred to it - hospitals, labour relations, parks, planning, transportation, pollution control and public housing. The City of Vancouver itself is governed by a Council of Mayor and ten Aldermen elected at large every two years. In contrast to the situation in Montreal, the Mayor's powers are limited and he must seek the cooperation of Council to ensure passage of his programs. In reality this has not been a problem since the Mayor and majority of Aldermen are members of NPA - the Non Partisan Association - a league of conservative business interests which has dominated city politics for 30 years. As in most Canadian cities, the majority of members of Council and other office seekers have been active in the real estate and insurance businesses. In fact the city is run by the Board of Administration, two commissioners appointed by council. Its powers are very extensive: it exercises overall control of the city hall bureaucracy and is the only link between council and the administration. One commissioner is the former Director of Planning, the other the former Chief Engineer, so they have an intimate knowledge of these two key departments. The Board coordinates city services, advises council on policy matters, develops plans for the organization of civic departments, supervises the personnel program and acts as a liaison with all civic boards. Plans and recommendations from all departments must go to the Board of Administration for revision before they reach city council. 139. All major planning and development proposals are considered by the Technical Planning Board which is composed of all the key administrative personnel: the Director of Planning (as Chairman of the Board), the two Commissioners, the Chief Engineer, the Corporation Counsel, Director of Social Planning, Medical Officer of Health ^ This Board coordinates the technical and administrative aspects of development, such as development plans, zoning bylaws and the plans of other administrative bodies. The Board makes recommendations to city council on applications for rezoning and city council usually rubber stamps its decisions. Beneath these two top layers are the departments, some of which are further subdivided into administrative sections and branches. Two departments are directly concerned with urban development - building and planning. The Building Department receives applications and issues permits for building unless a conditional use is involved. All buildings are inspected by this department to ensure conformance with the zoning and development bylaw. All reports by the City Inspector go to the Board of Administration before they go to city council. 140. The Planning Department is under the control of the Director of Planning (who is also Chairman of the Technical Planning Board) and four assistant directors. But the present director is a very weak person, dominated by the Board of Administration. The Planning Department staff assembles plans relating to the development plan, zoning and development by-laws, urban renewal studies and public housing projects. They are then submitted to the Technical Planning Board for revision. From there they go to the Board of Administration and finally to city council. The real planning function, is fragmented at the regional level and submerged at the municipal level. City planners do not have authority to initiate work on their own, becoming a rubber stamp for the key administrators; and they have absolutely no contact with the politicians or the public. Many of the most energetic and innovative of the planning staff have resigned in the past few years, unable to function under such constrained conditions. There is one other body of some importance. The Tovn Planning Commission was established in 1926 as.the sole planning agency in the city. When the City Planning Department was created in 1952, the Town Planning Commission took on a solely advisory position which it still retains. Nine of its members 141. are appointed by Council for three year terms, three each year: the Mayor is an ex officio member. Representatives from the Vancouver Board of School Trustees, the Board of Parks and Public Recreation, City Council, the Greater Vancouver Sewerage and Drainage District and the Vancouver Port Authority are appointed for one year terms; these last having been replaced recently by two one-year council appointees. The Town Planning Commission assesses major planning and development proposals and submits reports to Council. Originally established to present the views of business and the public to council, lately it has become a sanctuary for defeated NPA candidates. The Design Panel was established by council to evaluate the "architectural and design" aspects of proposals. Composed of six architects, two engineers, the Building Inspector and the Director of Planning as Chairman, its terms of reference are very limited and it can only make recommendations which go to the Technical Planning Board. The City of Vancouver has had no general plan for development, nor any explicit development policies beyond "any development at any cost". Major developers make their own plans according to their own needs and usually are able to obtain approval with few minor adjustments. In the absence of guidelines, the city 142. has established the Comprehensive Development Zoning Bylaw (CD-I) so that each large development proposal may be dealt with separately and rezoned by a separate bylaw. This occurred three times in one of our case studies. two of the most significant influences on Vancouver development have been the National Harbours Board, which controls Vancouver's waterfront development and CP Rail, the largest landowner in downtown Vancouver. Until recently their activities were controlled largely from their Ottawa and Montreal headquarters. Finally, mention should be made of the role of the public. Vancouver's development has been a secret process. Developers initiate schemes, make preliminary plans, and financing arrangements, then talk them over with the Mayor and city commissioners. Then the Director of Planning is brought in to establish the line his department will take. By the time the public finds out the proposal is fait accompli. Even so, Vancouver's citizens have actively fought to preserve the natural amenities - Vancouver's beautiful views, its unique relationship with the sea - perhaps that is why many people moved to Vancouver in the first place. There have been many skirmishes as well as pitched battles between citizens and the city hall-developer axis. Three of the most instructive have been the Coal Harbour Development Proposal, 143. the Great Freeway Controversy and the Strathcona Urban Renewal Scheme. Coal Harbour Redevelopment Proposal Downtown Vancouver, an area of approximately three square miles, is made up of three major land uses: the Central Business District (A), the West End high rise apartment area (B) and Stanley Park (C). The Coal Harbour redevelopment project is situated at the juncture of these three areas, being immediately adjacent to the park. The project was first announced in March 1962, byt Wm. Zeckendorf, president of Webb and Knapp (Canada) and had been underway since 1961, when Pemberton Realty began the land assembly for Webb and Knapp when Zeckendorf had been in Vancouver to oversee his Brentwood Shopping Centre scheme. The original plan called for a $70 million development including 20 apartment buildings of 25 stories each, as well as amarina, but the project was scaled down to $55 million during the austerity period of 1962. A public meeting held regarding the rezoning application in July 1963 was violently opposed to the project, although the city council ignored this and granted the permit the next day. In August 1963, Webb and Knapp requested a deadline extension, claiming difficulties in lease negotiations with the National 144. Harbours Board who owned most of the watefront lots. In the same month, Webb and Knapp, in financial trouble in the east, was selling off large portions of its holdings, but claimed that the Coal Harbour project was not to be affected. However, by September 1964, the project had been taken over by Harbour Park Developments Ltd., a consortium made up of Dawson Construction Ltd. (a Vancouver based construction company), Canadian Interurban Properties Ltd. (controlled by Power Corp. of Canada), Andrew Saxton, Peter Paul Saunders and Harold Foley (three local businessmen). A new proposal was made with a shopping centre of 60,000 sq. feet added, although there were to be only 15 high rise towers. In April 1965, there was another strongly hostile public hearing regarding rezoning, but this application too was approved by city council in June 1965. By this time, a more organized public opposition to the project was mounting with various local groups joining together in protest. In 1967, Harbour Park sold 37% of its property to Marwest Hotels for $1.39 million, the entire property having cost them only $1.26 million in the first place. In 1969, Four Seasons Hotels of Toronto announced a $40 million hotel, town house and apartment project for the area with Harbour Park claiming that their lack of expertise in development had forced them to lease the property to Four Seasons. 145. In October 1969, the Parks Board requested a meeting with City Council regarding the purchase of the land for a park, but they were refused. Opposition to the project continued to mount, until December 1970 when Federal Fisheries Minister Jack Davis (and West Vancouver MP) stalled final approval for water-lot leases. However, in January, 1971 Consumer Affairs Minister Ron Basfoyd (and Vancouver Centre MP) stated the Federal Government would not intervene in what was essentially a civic matter. In March, a public meeting was presented with 27 briefs, all opposing the project, but took no action to stop it. By April, Council had acceded to the demand for a plebiscite, which took place in June and was defeated by 51.2% but with a 60% needed to defeat the project. However, large-scale dissatisfaction with the terms of reference of the plebiscite which only allowed property owners to vote and was very badly worded, resulted in continuing protest. During the month of May, various protest groups had moved into the area, claiming it as People's Park, and with the arrival of the summer transients, the park was in the news almost every day. In September, Council once again reiterated support of the project, despite continual public protest, as well as protest from the Parks Board which had now become the most powerful opponent of the project. Construction was not begun and by February 1972 the project was stopped when the National Harbours 146. Board refused to sign the water-lot leases. In March 1972, those aldermen who had been most in favour of the project were now adopting new positions. Freeway Proposals The story began in 1954 when Vancouver and the neighbouring cities, municipalities and the provincial government established the Technical Committee for Metropolitan Highway Planning. From 1954 to 1956, this committee undertook extensive traffic surveys, predicted future automobile traffic demands for the area, and in 1959, submitted a report based on this data which recommended a $340 million freeway network for the Lower Mainland area (which already assumed a new first narrows crossing). In February 1960, Vancouver Alderman Emery requested that the city "stop land acquisition and work on proposed freeways" through the West End. Although the 1959 plan had not included detailed downtown routing, it was apparent that implementation had already begun. In the light of further freeway studies and West End opposition, work ceased soon after and eventually on September 13, 1961, the idea of a freeway through the West End was dropped. 147. In March 1960, the Technical Committee for Metropolitan Highway Planning was reinstated to investigate methods of financing its plan. But nine months later this Committee advised city council to obtain a consultant to continue the assignment, the task being beyond its scope, and subsequently the Stanford Research Institute of California was hired at a cost of $115,000. This amount was to be shared by the municipalities, but after opposition from some municipalities and a lengthy delay, it was decided to expand the consultant's terms of reference to include investigation of all other alternate freeway proposals as well as the financing. By this time, other freeway recommendations - particularly the third crossing and downtown segments - had been proposed by various private enterprises. On October 7, 1964, the Stanford Research Institute's report was submitted and it basically reinforced the 1959 plan by proposing a similar but more specific $345 million freeway system. Again, much discussion ensued, mainly concerning proposals for cost sharing agreements with higher levels of government, but no explicit adoption of the proposal as being the "official" plan or goal, was made. While still in pursuit of financial aid, it was suggested by Mayor Bill Rathie, that the federal government through the National Harbours Board, could pay one third of the downtown 148. section if the proposed freeway was relocated to run along the Burrard Inlet waterfront. Premier Bennett quickly followed with a matching offer of one third and thus, in the attempt to obtain financing, the Stanford Research Institute's recommended route (cheapest by $18 million) was scrapped in favour of a route running along the waterfront and up Carrall Street to connect to the proposed new Georgia Viaduct - another segment of the freeway. For another $212,000 more specific plans to this effect were developed by consulting engineers, Parsons, Brinkerhoff, Quade and Douglas of San Francisco. Included in their proposal to council on June 1, 1967, was an elevated eight lane expressway through Chinatown. Opposition exploded and the campaign began to save Chinatown. The consultant's study was halted amid the largest overt public reaction to city transportation policy that the city had experienced. In order to appease opposition, council allowed the consultants to consider a Gore Street alignment, (instead of Carrall Street - a minor change), but on October 17, 1967, they again recommended Carrall Street. Another wave of protest followed. Finally, on November 1, 1967, city council agreed to hold a public hearing "...to meet criticism and explain the background of freeway decisions up to now". Two meetings were held - November 23 and December 7 - at which 30 briefs in opposition to the proposed route were presented amid noisy 149. background. On January 10, 1968, city council rescinded its earlier Carrall Street alignment decision. Shortly afterwards, in May, 1968, the Federal government (again through the National Harbours Board) assigned the engineering firms of Swan-Wooster and C.B.A. to prepare both a bridge and a tunnel proposal for the new First Narrows Crossing segment of the freeway. In the course of their $4 million study, they required a decision by council on the distribution and routing of vehicles through the Vancouver segment. The engineering firm of N.D. Lea & Associates were hired by the city to do this and they came up with a recommendation to connect the 401 Freeway to the new Georgia Viaduct via the Great Northern Railway cut route. Swan-Wooster was then instructed by council to study five downtown routes as possible extensions of the south end of the Third Crossing. The eventual outcome was a tunnel route under Thurlow Street to False Creek and along the north shore of False Creek to the new Georgia Viaduct. Also included was a waterfront distributor road running to Carrall Street and then up a tunnel under Carrall to the new Viaduct, and a north-south freeway connection to the viaduct called the Quebec-Columbia Connector. Although financing difficulties again hampered council, this is how the overall scheme remains today. The Georgia Viaduct - 401 Freeway link is currently in limbo only because of the 150. provincial government's reluctance to commit money to the scheme. However, in the fall of 1971, Premier Bennett did finally commit the provincial government's share of $41 million to the proposed Third Crossing and downtown distributor by-pass and announced that construction "should begin in early 1972". In December 1971, the North Vancouver District Council committed its share and Vancouver City Council allocated a portion of its share out of general revnues (to avoid bringing the issue to a money referendum) and urged an immediate start on the project, these events sparked an explosion of Third Crossing-Freeway opposition in February 1972 that has again brought the entire issue to the surface. Strathcona Urban Renewal Proposals In 1957, Strathcona became the location of an urban renewal program sponsored by the federal, provincial and city governments. Most Vancouverites know this area by the name Chinatown. To the City Planning Department, Strathcona is the residential part of Chinatown, bounded generally by Gore, Hastings, Raymur and Prior. 151. The provincial government entered the urban renewal program reluctantly only after a great deal of encouragement from cities. In general, citizens were unaware or unconcerned about the program until it started happening. Most aware were the residents of so-called designated urban renewal areas. Urban renewal sparked a great deal of hostility and opposition among area residents. The City of Vancouver first applied to CMHC for a grant to do an urban renewal study in 1956. Federal participation in the cost of this study was 75%, if city-wide, or 50%, if a limited area of the city. Vancouver completed its city-wide study in 1957. The report was approved in principle in February 1958. (The pro- vince did not cost-share this study.) Next, city council advertised in local papers and invited citizens to attend meetings at city hall to view and discuss the city's plans for the Strathcona area. Protests to the plans were heard and residents were assured that the Vancouver Redevelopment Study was only a preliminary plan and that more detailed plans for the area would be prepared before the program could go ahead. After preparation of detailed plans, a delegation of area residents appeared before city council to protest the plans. This time, however, there were no assurances. Instead, the delegation was acknowledged ("thank you very much for coming"), but council explained how it was already committed to the implementation of the plans. 152. Implementation of the urban renewal program began in the Strathcona area in the spring of 1961. This involved the demolition and clearance of houses and buildings in the area, displacing 1,600 people. Displaced residents, according to the plan, were to be offered rehousing in the public housing projects: Skeena Terrace and Raymur Place. Since Raymur was not completed until 1967 and Skeena, completed in 1963, rehoused only 15% of the families displaced, it appeared that the majority of residents did not want to live in public housing. A second project approved for the area in 1964 continued the process of acquisition and clearance of properties displacing 1,730 people and redevelopment in the form of public housing, a park and industrial sites. Residents again appeared before city council to voice opposition to this project. The project went ahead as planned. In 1964, the legislation for urban renewal was amended to facilitate urban renewal and to include cost-sharing for improvements to municipal services. The city prepared its third project for the Strathcona area under these new provisions, Scheme III, Strathcona Sub-Area. In an effort at self-protection from the serious threat of losing their homes and neighbourhood as a result of Scheme III, Strathcona Sub-Area, residents organized themselves on a block-by-block basis. Prior to this, United Community Services, had set up the Strathcona Local Area Council. Its sub-committee 153. sponsored public meetings to discuss the Scheme III report and to determine the community's reaction. Chinese representatives were invited to serve on this committee and local community development workers for the Y.W.C.A. offered technical assistance. Early in 1968, briefs were presented by individuals and the Area Council to city council which led to the amended Scheme III report. However, residents felt that the concerns of the Area Council were too general and too gentle to reflect their views. In the fall of 1968, residents were encouraged to form a citizens' group to negotiate with the government. The Strathcona Property Owners and Tenants Association (SPOTA) met for the first time in December 1968. During the next four years, SPOTA was very active in all phases of the urban renewal process preparing briefs and meeting with government officials. A working committee was set up (including all three levels of government and representatives from SPOTA) to develop rehabilitation program for the area. Finally in 1971, SPOTA won approval and go-ahead for the Strath- cona Rehabilitation Project which provided interest free grant- loans for homeowners for home improvement projects. CHAPTER VI. TOWARDS A MODEL OF THE URBAN DEVELOPMENT PROCESS 154. PART A. - ANALYSIS OF CASE STUDIES This chapter describes a method for analyzing the case studies of urban development. Through a procedure based on simple abstraction, detailed descriptions of the cases are transformed into a comprehensive diagram of the total urban development process. The perils of such a method are fully recognized - an inadequate sample, unstandardized methods, inability to replicate results. In the context of a pilot study, these are not deemed to be a problem. The main goals are comprehensiveness, generality and breadth of view. The case study is the central link in the whole chain of methodological and conceptual problems explored in this report. A large share of the total time and resources available has been devoted towards developing it. The case study serves many purposes. It acts as a basic orientation to urban develop- ment issues. It illustrates the system in action in a very concrete way. It aids in the identification of critical processes, key actors and organizations, major system outputs and most important, public dissatisfactions. Phase 1. Chronology First, a chronology of events was prepared for each case from 155. newspaper clipping files. There were, of course, many gaps in the chronology, not the least of which was due to missing clippings. However, this step gave a good introductory orientation to the issues and participants. Second, a detailed list of questions was prepared about the information obtained. What were the motives for the action? Why did the Mayor announce the plans at this time? Why did this person keep reappearing? And so on. Then all the available documents bearing on the case were collected: planning department reports; minutes of city council and other bodies; memos; letters on file. These documents answered many of the questions but also generated another list. The third step required interviews with the major participants and other persons knowledgeable about the case. Because a great deal was already known at this stage, specific questions could be asked of them. By the end of the interviews and the arrangement of the material, the chronology was about as detailed and accurate as one was likely to obtain. People forgot, or they didn't want certain information known, or they had only a partial view of the situation. The chronology thus prepared represented the basic data source.' Table XXI is a sample page from the Coal Harbour Developments case study. The full chronology is contained in Appendix E. 156. 1961 August 18 Mayor Alsbury approached W. Zeckendorf, president of Webb and Knapp (W & K), responsible for the development of Brentwood, to sponsor Vancouver's slum clearance program. What areas were to be involved in the program were not specified at that time. (no date) During the year Zeckendorf had assigned Pemberton Realty to assemble all the land between Bidwell and Chilco, north of Georgia Street. (no date) Marwell Construction was also assembling land in the area, having previously taken part in the land assembly for the Bayshore Inn with Western Hotels. .1962 March 29 W & K announced plans for a $70 million development of 25 storey apartment buildings, with 5000-6000 units, and a marine of undisclosed size. Marwell at the same time announced similar plans that were now superseded. May 7 W & K and Marwell announced that they were negotiating to join forces for the development. July 18 A scaled-down version of the initial project was announced, but the extent of the new project was not specified. Studies were expected to be completed by September/October. Termination of agreements between W & K and Marwell also announced. July 21 W & K's plans included only the two blocks adjacent to Stanley Park, the other block being tied up by long term leases. TABLE XXI. SAMPLE PAGE FROM CHRONOLOGY OF COAL HARBOUR REDEVELOPMENT PROPOSAL. 157. Phase 2. Action Patterns The second major phase to the work involved the extraction of actions from the chronology and determination of the goals of the actions and the constraints operating on them. For example, regard the first item on the chronology sample page: "Mayor Alsbury approached William Zeckendorf, president of Webb and Knapp, responsible for the development of Brentwood Shopping Center, to sponsor Vancouver's slum clearance program" What happened? Mayor Alsbury approached Zeckendorf. Or if only role relationships are specified and the particular people involved are ignored: "promotion by Mayor towards developer". It can be seen that the unique event of Alsbury approaching Zeckendorf is, in fact, one case of a more general kind of event and one that occurs frequently in many Canadian municipalities. For each item in the chronology, a parallel action was designated. Given the action, the actors may be determined:iethe role player in the organizational context, not the individual. Each action can be verified empirically and has a quantifiable aspect to it. For example, the number of promotions by mayors towards developers in Canada per year could be tabulated. Presumably there is a finite number of different actions which, in total, would make up the extent of the system's behaviour of interest to this work. 158. Table XXII presents an example of the analysis of actions taking several items from the same chronology exemplified in Table XXI. The next phase of the analysis addressed itself to the "why" of the action. Why did the mayor approach the developer? Why did the city council hold a public hearing with respect to a rezoning application? It m s assumed that the action which occurred corresponds roughly to an underlying decision. The mayor approached the developer because he decided to approach the developer. Although the point seems trivial, it must be emphasized because it follows from the view presented earlier that all organizational behavior is purposeful. At some level, each decision has a goal. Or rather, that the decision is based on a whole set of criteria (goals plus constraints). The research problem was to discover the set of criteria for each decision. These may be found in many sources. A whole set of criteria are formally set down in the Vancouver Charter, Municipal Act, and Municipal Bylaws and Resolutions. Why did city council hold a public hearing with respect to a rezoning application? Because the Municipal Act of British Columbia, Sections 703 and 704 specifies that a public hearing must be held before a zoning bylaw may be adopted or amended. DATE ITEM FRON CHRONOLOGY EVENT CRITERIA (GOALS & CONSTRAINTS) 1961 August 18 Mayor Alsbury approached W. Zeckendorf to sponsor Vancouver's slum clearance program Promotion by mayor towards developer. - need for urban renewal - desire to attract large scale development - mayor's desire to make name for himself 1961-62 During the year Zecken- dorf all the land between Bidwell and Chilco. Land assembly by realty company for developer. - need to use local co. - possibility of profit- able development. 1962 March 29 Webb & Knapp announced plans for and a marina of undisclosed size. Developer announces proposal to public. - publicity to attract funding and rentals - desire to create a good public image. 1964 June 24 Public meeting in Play- house theatre...Rathie threatened to close down meeting. City council holds public hearing with respect to zoning application. - required for zoning change by Charter - desire to neutralize opposition to scheme. TABLE XXII. PRELIMINARY ANALYSIS OF COAL HARBOUR DEVELOPMENT PROPOSAL CASE STUDY. m Ol CD Notes: Actors (i.e. roles such as mayor or organizations such as realty company) are underlined; their actions are circled. 160. However, a group of criteria more important and more difficult to investigate are the informal ones, which are not written down anywhere. They exist only in the minds and memories of the occupants of the organization's roles. Novices to the role undergo a period of socialization during which they learn the unwritten rules of the office - the whole network of mutual expectations and power relationships that have evolved over the years as the normal way of "doing business". Because the mayor actively courted the developer in the first place, he had to become the developer's advocate, forcing through the development proposal at any price. Therefore another goal may have been served in the holding of a public meeting: the desire to neutralize public opposition to the scheme, which will be achieved by a token hearing. In spite of massive opposition to the scheme, council approved the rezoning the next day! The area of informal goals and constraints is very difficult to map. At the present stage, it was impossible to make any accurate descriptions. One way of proceeding would be through the use of gaming or other simulation techniques. For example, a game might be created in which knowledgeable persons played the roles of mayor, developer, planner, etc. and were given situations in which they had to interact and make decisions. Their perceptions of their own and other player's motives could be used as a source of potential criteria, which would then be validated through 161. other techniques, such as interviewing the real participants, etc. Criteria used in the present study derived from the investigator's and his associates' personal knowledge of the development process: the interlocking directorships among corporations and governmental departments; the informal organization of city hall; the goals and methods of the developer etc. One more step remained to be taken. Many events seem to occur in clusters with a very definite order to them. These, where identifiable, have been designated as a pattern of actions. One important pattern - a municipal rezoning pattern - is illustrated in Table XXIII.In the Coal Harbour Developments Case Study, the same pattern occured three times over the ten year period, with each new developer's attempt to get a develop- ment underway. In principle, each action should fit into at least one pattern and perhaps more. There should be few unique events in the development process. It would only remain to analyze an adequate sample of case studies to procure an exhaustive list of decision or action patterns. 162. NO. EVENTS 1 Developer initiates preliminary discussions with mayor and director of planning. 2 Director of planning examines proposal and makes requests for additional information and/or alterations. 3 Developer submits official application for rezoning to planning department. 4 Planning department assesses proposal. 5 Technical planning board and board of administration assess proposal. 6 Town planning commission assesses proposal. 7 Design panel may assess proposal. 8 City council holds public hearing. 9 City council votes on application. TABLE XXIII. MUNICIPAL REZONING PATTERN OF EVENTS. 163. PART B . - A DIAGRAM OF THE URBAN DEVELOPMENT PROCESS The final step in the studywas taken by combining the non- quantifiable, nonempirical processes derived from literary sources, with the empirically-based patterns from the case studies. The successful completion of the task would be a preliminary model of urban development. Suppose that one of the critical processes previously identified, was the municipal government assessment of proposals, in which can be seen the lack of consistent guidelines for proposal evaluation. This process could be positively specified by an examination of the case studies: one of the major constituents of the process is seen to be the pattern of municipal government rezoning. Given more complete information, the procedure could be repeated for each process and pattern. Given limited resources and time, this is not possible at present. A preliminary diagram of the whole urban development process is presented in Figure based partially on the methods outlined plus personal knowledge about the system's operations. Therefore substantive conclusions are quite tentative and almost certainly unreliable. Emphasis has been placed on the conceptual framework and the methodology of investigation rather than on the system content. 164. The diagram attempts to set out, in a graphic form, the major processes or subsystems which interact to produce physical facilities. Each case study can be traced through the diagram generally from left to right, so that money, land, materials, labour and information appear as inputs from the left side and physical facilities as outputs on the right, where public reaction and use of facilities enter the system again as a major feedback loop. At this stage of the work, 14 major processes have been identified as being significant in the case studies. These are briefly described, with their main subprocesses and some of the more prominent interactions and feedbacks. Of course, much further work will be required to make the diagram comprehensive and more reliable.. Future work is outlined in Chapter VII. 1. Municipal Government Urban Development Policy Making Process This process describes the transformation of demands for policy from various sources into municipal policies with regard to urban development. Demands for policy guidelines could come from other municipal governments; provincial and federal governments, government agencies such as National Harbours Board, Canadian National Railway; business organizations and lobbies (Board of Trade, Downtown Business Association, Chamber of Commerce); developers and financial institutions; citizen's groups; private individuals. exi.sting urban land agricultural & other rural land existing business firms new invest- ment funds /conversion ofN A rural land to \ urban uses fdevelopment\ { business / new urban land -f- \ formation J development companies N / allocation of /I funds to \investment type existing urban land users urban land market developers\ / { search for r V business J investment funds allocated to development urban land allocated to users possible developments allocation of funds to development type new funds demands for policy guidelines •T* A fpublic allocationX \ ' I of funds to | / \ urban developmentJ 35355s ! I /municipal gov't' policy making process fund allocation to urban development J't-V municipal gov't policy re urban development C g ) FIGURE 14A. DIAGRAM OF THE URBAN DEVELOPMENT PROCESS CgL FIGURE 14A. DIAGRAM OF THE URBAN DEVELOPMENT PROCESS ray/ materials & semi-finished products of building y materials building materials © - (LV building construction conditions available manpower o r / municipal (5)—rV assessment of Ik proposed ^D)—p>\deve lopment s (N) nVo \ approved r V / developments / development execution -> completed developments . public- -A assessment \of proposals^ public reactions to proposals public satisfaction & reactions use & \ assessment - V/- of development J completed / developments \ in use distribution of completed developments FIGURE 14C. DIAGRAM OF THE URBAN DEVELOPMENT PROCESS M Ol i 168. The demands that municipal government do pay attention to are an interesting empirical study. Preliminary research indicates that business and influential individuals generally have more influence than citizen's groups; but also, city council prefers certain types of developers over others. The policy making process is composed of a number of subprocesses regarding zoning and development planning, financing, transportation, building and engineering, urban renewal. These may be studied individually where appropriate. Outputs of the process include building bylaws, zoning regulations, land use plans, financial policies and regulations, urban renewal and low cost housing policies, transportation regulations, etc. Several kinds of criteria seem to be important in the process of reaching decisions: responsibilities as laid down in the Vancouver Charter, political considerations (politicians getting reelected, etc.); federal and provincial government relations; technical criteria based on staff and consultant planning; financial and economic studies. These outputs act mainly as inputs to the Development Selection Process and the Municipal Assessment of Development Proposals. 169. 2. Private Capital Market Allocation of Funds to Urban Development This process was discussed in some detail in Chapter III as an example of the derivation and analysis of basic processes and some background information is presented in Appendix B. However, the case studies have expanded understanding of the process. Three distinct subprocesses appear to be in operation in the allocation of investment funds (from whatever source) to particular development proposals. First, new investment funds are allocated to investment types, the types relevant to the model being equity participation in land ownership and develop- ment, long term mortgage financing and shorter term construction and business loans. These funds enter directly into the Urban Land Market Process or into the subprocess which allocates funds to development types: which determines how much will go into residential, into office building; how much to Vancouver compared with Toronto. Some of the major variables at work here are the anticipated rates of return, projected demands, legal requirements and restrictions, inflation, labour costs, building costs, land costs. Finally, investment funds are allocated to specific developers, the availability of financing being a critical constraint on the development selection process (see 4). Major constraints on fund allocation include the developer's financial standing, his history of past developments and the lender's requirements of risk vs. profitability. 170. 3. The Urban Land Market The urban land market allocates land to developers or other users. An inventory of existing land owners and users including private owners and developers as well as municipal, provincial and federal departments and agencies could be prepared as a basic resource for the model. The process describes the acquisition of land necessary for development proposals (see Process 4). New land enters the system mainly as a result of a subprocess whereby rural land is converted into urban uses, this depending on provincial regulations, property taxation requirements, forecasts of housing and recreation demands and developer pressures. Decisions to buy or sell land depend on an evaluation of costs and benefits by the actor: he must compare the costs of acquisition, processing, financing and holding against his potential returns. 4. Development Selection Process A catch all for the whole set of decisions which lead from the recognition of "market demands" to the production of development proposals. It is a very complex part of the Urban Development Process and one which has traditionally taken place under conditions of the greatest secrecy. 171. Market demands are probably best handled as an external input to the model - i.e. one point where this model could interface with others. However, this must be modified by output from 14, Use and Assessment of Developments which reflects public satisfactions and dissatisfactions. Market demands are first acted upon by a subprocess in which developers search for business by recognizing demands and producing an output of possible developments. What might affect decision making here are: number and type of developers; general business conditions; company law; tax regulations; municipal policies. The output of possible developments enters the next subprocess where they are assessed as to their relative possibility of execution and profitability, by feasibility studies of sales or rental potential, yields vs. costs, estimates of probability of success. At this stage the whole spectrum of municipal policies become very important in the assessment process. Finally, development assessments enter the proposal preparation process which in turn is composed of a number of subprocesses whose net result is the preparation of development proposals. First of all, the process interacts with the Urban Land Market as the Land Assembly process which produces assembled land for acquisition or leasing. These outputs feedback in the Land Market where they have a large affect on further land transactions. 172. All of these processes are affected by municipal policies, but land assembly is more strongly affected by zoning bylaws and development regulations. Second, the process interacts with the Private Capital Market Allocation of Funds through the subprocess of Financing or Allocation of Funds to Developer, the output of this being arranged money. The third interaction is with the Labour Market. The availability of manpower at various levels enters the subprocess of staffing whereby management expertise is arranged. Finally proposal preparation requires interaction with the Manufacture & Supply of Building Materials through ensuring the availability of materials, equipment and building systems. The outcome of all these subprocesses is the formal presentation of proposed developments either in the form of applications for development or building permits, or applications for rezoning, where this is necessary. As well, there is an output of public relations or attempts to sell the project, which feeds forward into the public assessment process. This is probably the first time that the public has heard about the proposed development, although it may have been under consideration for two years or more. 173. 5. Municipal Assessment of Development Proposals This involves many aspects or subprocesses, but since this is the most public process, only brief mention will be made of these. Up to four steps may be involved in the process by which a proposed development becomes an approved development: (a) acceptance of design concept; (b) zoning changes; (c) development permits; (d) building permits. The process by which zoning changes are made was illustrated in Table XXIII and comprised at least eight separate actions. These show us that three levels of acceptance are involved: the public; the professional; and the political. At the public level, the effect of the media is significant in the coverage given to the project and to citizens' involve- ment or opposition. Also the effect of public activity in other cities on citizen's attitudes should be emphasized. As has been pointed out before, citizens have become very active in their opposition to all large developments, so that it must be given proper attention. At the professional level, a whole host of separate evaluations occurs. The planning department plays the major role in this, but the engineering department evaluates traffic and service implications. The design panel may be involved in an examination of architectural aspects. The technical planning board makes an overall assessment, which it then subject to the scrutiny of the board of administration. 174. Even at the political level there may be a number of conflicting interests. For example, the parks board has come more and more to oppose city council on many development issues, wherever it sniffs the possibility of a park. The city council is divided itself, although the NPA block has control, and the vote is usually 6-5 for development. On occasion the NPA majority has voted in favour of a proposal in spite of the combined opposition of all citizen's groups, the parks board, the technical planning board, the town planning commission, the design panel, the planning department and the engineering department.' 6. Development Execution This involves a number of interacting subprocesses, through which the approved development becomes a completed building or project. These are commonly known and require only brief mention here, together with the major links with other processes. a. Hire consultants: architects, structural, mechanical, electrical, acoustical, soil and other (where necessary) engineers, planners, landscape architects, etc. b. Prepare working drawings and construction schedules. These two subprocesses relate to number 11 Supply of Technical Expertise. 175. c. Arrange construction financing; which relates back to the Private Capital Market. d. Hire contractor and subcontractors; which relates to process number 12, Supply of Construction Labour. e. Purchase materials. f. Prepare site. g. Construct project. These last three relate to p r o c e s s 13, Supply of Building Materials and Equipment. 7. Distribution and Maintenance of Completed Developments During or after the Development Execution process, the project is leased, rented, sold or somehow distributed to the ultimate owners and users, or in our terms, the human activity systems. There are four modes of distribution as outlined in Figure 15 which is a matrix of retain or sell against ownership or use. 176. Retain Sell _ Ownership A B Use X Y AX: Retain ownership & use BY; Sell ownership 8s use AY: Retain ownership, sell use BX: Sell ownership, retain use FIGURE 15. DISTRIBUTION OF COMPLETED DEVELOPMENTS. a. Retain ownership and use: house built for oneself; industrial, institutional or commercial facility built for use of own organization. b. Sell ownership and use: sale of houses, sale of commercial, industrial facilities. c. Retain ownership, sell use: rental of apartments, of commercial facilities; leasing of commercial and industrial facilities. d. Sell ownership, retain use: sell and lease back of commercial or industrial facilities. 177. 8. Provincial Government Urban Development Policy Making Process Given the distribution of powers under the British North America Act, the provincial government,being responsible for land, housing, transportation, etc. is a most significant factor in the whole urban development process. It is the source from which all municipal blessings flow and given its traditional anti-city bias, these blessings have been as scarce as honest politicians. Provincial governments enact legislation and allocate funds. Sources of funds are the sales tax, alcohol and tobacco taxes, gasoline tax, business tax, sale or lease of land and resources, revenue producing activities such as electric, telephone, gas, utility companies, long term loans, etc. The allocation of funds is traditionally determined on constitutional, legal, political and conventional grounds. Provincial governments have been very niggardly in their allocations for urban development. There has been a severe lack of funds for housing and rapid transit. Provincial governments enact legislation which affects development in many ways. They control the use and sale of public lands; they set planning and land use regulations; they control forestry and agricultural practices and govern the practice of real estate industry. They can change the Municipal Acts, the very basis for a municipality's existence; they also own a great 178. deal of land within urban areas and are active developers. Recently in Vancouver, the B.C. government under W.A.C. Bennett has been preparing plans for a 55 storey office tower to house many provincial activities. This development would be almost twice as tall as anything else in downtown Vancouver, would provide inadequate parking facilities and would be completely at odds with the city's plans for the downtown area, the provincial government being completely exempt from municipal regulations. 9. Federal Government Urban Development Policy Process The federal government does not act as directly as the provincial government with respect to urban development, due to the division of powers in the B.N.A., but in the long run it does have a very profound impact on the development process. It is a large landowner and developer through its departments and agencies (see Lithwick Table) such as Department of Defense, Canadian National Railway. It builds sea ports. It builds airports. In Vancouver, the National Harbours Board plays a pervasive role in the development of downtown. The federal government effectively stopped the Coal Harbour Development through its refusal to grant the last water-lot lease. But most important, the federal government controls development through the way it allocates funds. The Department of Transport 179. was going to provide money for a third automobile crossing of Burrard Inlet, an act which would have the most profound effect on Vancouver's future growth. Central Mortgage and Housing Corporation, through its loans under the National Housing Act, effectively controls the residential construction process, as well as public housing and urban renewal, as we have seen in the Strathcona Urban Renewal Case. 10. Public Allocation of Funds to Urban Development In a way, this process is parallel to the Private Capital Market, involving capital expenditures by all three levels of government. At the municipal level, the main source of revenues is property taxation, although this is supplemented by provincial and federal grants, business license fees, interest from investments, sale or lease of lands, proceeds of bond issues, etc. However many conditions are attached to the use of the funds. Allocation decisions are further contrained by legal requirements, conventional methods and political considerations. On the basis of these criteria and municipal goals, funds are allocated as capital expenditures on sewers, roads, public structures and so forth. Provincial governments allocate funds to municipal governments. These may derive from the sales tax, alcohol and tobacco tax, 180. gasoline tax, business tax, sale of land and resources, proceeds of bond issues, government revenue-generating operations, etc. Funds are allocated mainly to highway expenditures, federal provincial cost sharing programs: housing, urban renewal, parks, etc. Similarly the federal government allocates funds to urban development through its agencies such as CMHC, NHB, CBC, Department of Public Works, Department of Defense, etc. Both senior levels are governed by constitutional,legal, conventional and political criteria in the allocation of funds. 11. Supply of Technical Expertise This process involves the education and training of consultants; the formation and operation of firms of consultants; the organization of the various consultant professions; and the development of consultant skill and knowledge. At the development execution stage the most important consultant types are: architects, structural, electrical, mechanical engineers, planners, landscape architects and project managers. 12. Supply of Construction Labour This process is most strongly affected by the general employment conditions in the country, plus regional variations. These data could be considered as an external input to the model wherein 181. some function would distribute a proportion of available manpower to the building process by trades and skills. The most important and visible aspects here are strikes and the threat of strikes; based on wage demands and the general climate of labour unrest. 13. Manufacture and Supply of Building Materials, Techniques and Equipment. Traditionally almost all research on development and building has focussed on this area; yet it is probably one of the least important in terms of its impact on the urban environment. Some notable features are the rate of occurrence of new building materials and new construction techniques, and the rise of systems and industrialized building. 14. Use and Assessment of Buildings and Projects This process refers to that whole nebulous area of public satisfaction, needs, demands and reactions to the facilities provided for them. It is the least conceptualized area of the process (except in the "market demands" of developers) but clearly the most significant since it is raison d'etre of the whole urban environment production system. The author has begun preliminary work along these lines. Figure 16 is an illustration of the conceptual framework. Stated simply, the physical facilities produced by UEPS are conceived as 182. activity settings which are inhabited by subcultural groups as they go about their daily affairs. Subcultural groups may be differentiated by their world views and value systems. Each group has a set of priorities which it tries to attain by using the available activity settings. How closely the perceived use of those settings matches one's expectations and values is a measure of his satisfaction with the existing settings. "Settings" refer not only to the physical facilities themselves but also to the rules and regulations governing their use, the subcultural images of what they mean, the allowable times of operation. Much further work is required in this area, both theoretical and empirical, before meaningful statements of public satisfaction with the urban environment can be made. These concepts are illustrated in Figure 16. Distribution of Completed Developments Tt Housing j E E ^ B r ->r Educational facilit ties^- Welfare agencies!/ tjf.Hospitals)f J\ Government services ->r Total institutions u v Retail firms V ' y> — — — • t T ~ 7 \ ^ R e l i g i o u s institutions/y Transportation facilities •k-j—j. Public spaces > Etc. 5 c / population^ V submodel J subculture .formation / subcultures; subcultural w image j \ formation N K demands Activity Settings —4- FIGURE 16. A SUBCULTURE/ACTIVITY SETTING MODI social class . submodel education income ethnicity employment occupation I c ommu n i c a t i o n s y submodel flow of info- mat ion per sub- cultural groups economic submodel occupational income employment Political submodel pressures on gov't spend- ing. legis- lation and policies OF PUBLIC RESPONSES TO DEVELOPMENTS 184. PART C. - FUTURE WORK Three stages of work are required to make the diagram into an operating model (although these are not sequential steps). First the diagram must be made comprehensive. A survey must be made of public reactions to urban development, the outputs of the system and the organizations involved in the process. Also the literature must be reviewed to derive further potential processes. These two surveys should produce an expanded list of case studies to be investigated resulting in the identification of all critical processes, and discernable patterns; and an initial qualitative picture of the whole system. The second stage involves the construction of a model of each process. From lists of criteria, hypotheses would be proposed to explain the actions of each process. Then experi- ments would be performed and data collected where necessary and practicable. From these sources, values could be developed suitable to manipulation and an operating submodel for each process produced. Assuming that municipal rezoning is a critical process, the construction of its submodel would proceed by asking three general questions About the process: 185. 1. Under what conditions are preliminary applications to rezone initiated? 2. Under what conditions do such applications receive final approval? 3. What are the impacts of such rezoning approvals on actual land development practices and on further rezoning applications? To answer these questions, a program of research would be undertaken into past rezoning applications. Note would be taken of the location of land; existing and proposed uses; type of developer; estimated cost of development; date; organizations for and against the proposal; anticipated property tax revenue; anticipated cost of services; approval or rejection of application at various stages; number of cars and people generated by the development; floor space ratio; etc. With the identification of critical variables, computer values can be developed. With the construction of submodels, the final step is to link them together in a model of the whole system in operation. Again the program would proceed by proposing hypotheses which explain the relationships between processes; such as between municipal rezoning and urban land markets. Experiments would be performed 186. and data collected to invalidate hypotheses and develop values suitable for computer manipulation. Finally once the model had been calibrated on existing data and tests, proposals for changing the system could be run on the model and the resultant behaviors in key areas observed and evaluated by citizens groups. Where results are desirable, political and other pressure may be brought to bear in order to implement the changes. Clearly the construction of the model is a long way off. But even at the present stage the importance of the work is evident. The case studies give many insights into the operation of the system and the simple diagram of the system gives a uniform framework within which to integrate insights and observations. Most important, the work up to now gives to citizens a revealing glimpse of what is going wrong with urban development and what they can do to make it more humanized and responsive to their demands. 187. NOTES CHAPTER I 1. Three detailed studies of public participation and a list of cases currently being studied are listed in Note 1, Chapter V. 2. Midwest Research Institute. "The Building Industry: Concepts of Change (1920-2000)", in Creating the Human Environment. Urbana, University of Illinois Press, 1970. p. 157. 3. M.A. Goldberg & C.S. Holling. "Systems Studies of Urban Regions". Mimeographed, 1970. 4. The notion of organized complexity was first formulated by W. Weaver in "Science & Complexity", American Scientist, 36, 1948. pp. 536-544. 5. See his discussion in Jay W. Forrester, Urban Dynamics. Cambridge, Mass., 1969. M.I.T. Press. pp. 9-11, 107-112. 6. Ibid. p. 9. 7. Ibid. p. 9. 8. See Fortune Magazine, February, 1972. p. 137. 9. With the possible exception of the automobile industry. Obviously the purchase of a car affects many other people besides the consumer. 10. "Variable" as used here is equivalent to the notion of a "criterion" (goal or constraint) affecting a decision. See Herbert A. Simon, "On the Concept of Organizational Goal", Administrative Science Quarterly, 9, 1964. pp. 1-22. See also Forrester's distinction between state and level variables, Forrester, op. cit., p. 13. 188. CHAPTER II 1. James Lorimer, Personal Communication, August, 1972. His research shows that between 30-80% of members of municipal councils are related to the real estate and insurance businesses. 2. If increased property tax revenues produce better services, then New York should be the wealthiest and best served city in the world! Clearly, municipal governments have not yet realized that the costs of development may often outweigh the benefits. 3. Ralph Nader's studies of the American Interstate Commerce Commission and the Food & Drug Administration have clearly shown this to be the case. See for example, James S. Turner, The Chemical Feast. New York, 1970. Grossman. As Charles Perrow puts it: "Nor can the myth of extensive and effective governmental regulation serve the myth of a nonpolitical business community. Hardly a serious study of regulatory agencies has failed to conclude that these agencies serve chiefly the interests of the large firms in the sector they are suppose to regulate. Regulation is primarily aimed at increasing the predictability and security of the industry being regulated, by establishing controls that prevent certain kinds of practices... Furthermore, the small governmental staff is highly dependent upon the technical advice of specialists from the industry they are to regulate, because there are no specialists outside the industry...Finally, the ranks of regulators are infiltrated with men whose business backgrounds are in the industries being regulated and with men who will join those industries after having served a few years in the agency...Only when the agencies are quite new, or when a serious scandal occurs, do they seem to be vigorous in the attempt to regulate in the public interest - if, indeed, they do so then..." Charles Perrow. Organizational Analysis: A Sociological View. Belmont, Calif., 1970. Wadsworth Publishing Co. p. 131. 189. 4. This point is demonstrated vividly by the behavior of the Ontario Municipal Board, a "non-political" committee of last appeal with regard to the Municipal Act. Several years ago when the ward boundaries of the City of Toronto were being redrawn, the O.M.B. rejected the strip plan developed by Toronto City Council based on the self- preservation of the existing aldermen and approved a block plan prepared by citizens groups. See James Lorimer, The Real World of City Politics. Toronto, 1970. James Lewis & Samuel. 5. See for example, N.H. Lithwick. Urban Canada, Problems & Prospects. Ottawa, CMHC, 1970, Table 34. p. 210. 6. See Table IV p. 76 which shows that governments and government agencies held amost 20% of mortgage loans outstanding in 1967. 7. Marvin Lipman. "Housing & Environment", in Ronald Matsushita (ed), Issues for the Seventies: Housing. McGraw-Hill Co. of Canada, 1971. p. 15. 8. Ibid, p. 15. 9. The movement of key personnel between the corporation and the government office is one way in which relations between government and industry are smoothly regulated. 10. As was noted before, with the exception of automobiles. 11. Midwest Research Industry. op. cit. p. 159. 12. Dorothy Nelkin. The Politics of Housing Innovation. Ithica, N.Y., 1971. Cornell University Press. p. 12. 13. Charles Perrow. op. cit. p. 2. 14. Midwest Research Institute. op. cit. p. 162. 15. James G. Miller. "Living Systems: Basic Concepts". Behavioral Science, 10, 1965. p. 200. It should be emphasized that a system is a simplified abstraction; "an incomplete image of the real world" (Gordon Pask, An Approach to Cybernetics. New York, 1961. Harper & Bros.) Knowledge of the system depends on several things: the purposes of the observer, the observed characteristics of the situation of interest and the methods of both observing and recording those phenomena of interest. (Karl W. Deutsch. The Nerves of Government. New York, 1966. Free Press of Glencoe. pp.5-6. 190. 16. Dorothy Nelkin, op. cit., p. 11. The Table in turn had been taken from the President's Commission on Urban Housing, 1967. 17. A.D. Hall & R.E. Fagan. "Definition of System", in Walter Buckley (ed) Modern Systems Research for the Behavioral Scientist. Chicago, 1968. Aldine. p. 81. To avoid confusion over the use of this term it should be borne in mind that the urban environment produced by the system is not the system's environment but a set of outputs to it. 18. Jay W. Forrester, op. cit., p. 12. 19. Charles Perrow. op. cit., p. 98. See his interesting discussion on this point, pp. 98-112. 20. This is one function of advertising. 21. A living system maintains and extends itself through its subsystems, each of which "carries out a particular process for its system and keeps one or more variables in steady state." James G. Miller. "Living Systems, Structure & Process" Behavioral Science, 10. p. 336. 22. James G. Miller. "Living Systems: Basic Concepts". op. cit., p. 231. 23. Karl W. Deutsch. op. cit., p. 88. 24. Charles Perrow. op. cit., Chapter 5. 25. Herbert A. Simon. "On the Concept of Organizational Goal", Administrative Science Quarterly, 1, June, 1964. p. 2. 26. "Role" is considered to be a recognizable social position based on a pattern of behaviors (social norms) considered significant and appropriate for the role. See T. Sarbin & V. Allen, "Role Theory", in Linzey & Aronson (eds), The Handbook of Social Psychology, Vol. 1. pp. 488-558. 27. See for example, Herbert A. Simon, "The Architecture of Complexity", in The Sciences of the Artificial. Cambridge, Mass., 1969. M.I.T. Press. p. 103. 28. Mervyn L. Cadwallader. "The Cybernetic Analysis of Change in Complex Social Organizations" in Walter Buckley (ed), Modern Systems Research for the Behavioral Scientist. Chicago, 1968. Aldine. p. 438. 191. 29. Hans Selye. The Stress of Life. New York, 1956. McGraw- Hill Paperbacks. 30. Sources used were company reports, Financial Post Corporation Service, company prospectuses, etc. 31. See the discussion of the two types in Charles Perrow, op. cit., pp. 50-68. 32. Max Weber. The Theory of Social & Economic Organizations. (Translated by Talcott Parsons). New York, 1947. The Free Press. 33. Robert K. Merton. "Social Theory & Social Structure" in Amitai Etzioni (ed) A Sociological Reader on Complex Organizations. 1970. Perrow, op. cit., p. 57. 34. Ibid, p. 67. 35. Ibid, p. 66. 36. Midwest Research Institute. op. cit. p. 187. 37. Ibid, p. 182. 38. Ibid, pp. 199-200. CHAPTER III 1. For a futher discussion of this point see A. Gruft & D. Gutstein, "A Basis for Resolving Urban Problems", Architectural Research & Teaching, 2, No. 1 (Nov.), 1971. pp. 59-62. 2. See Lithwick, op. cit. pp. 17-18, for a discussion of this point. One of the best illustrations of this is Urban Design Manhattan prepared by the Regional Plan Association (New York, 1969. Viking Press), which was concerned with "creeping blight". 3. Herbert J. Gans. People & Plans. New York, 1968. Basic Books. p. ix. 192. 4. Report of the Federal Task Force on Housing & Urban Development, Ottawa, 1969. Queen's Printer. p. 3. 5. N.H. Lithwick. op. cit.; Economic Council of Canada, "The Canadian Economy from the 1960s to the 1970s." Fourth Annual Review. Ottawa, 1967. Queen's Printer; Ralph R. Krueger 8s R. Charles Bryfogle (eds) , Urban Problems, A Canadian Reader. Toronto, 1971. Holt, Rinehart 8s Winston. For a general survey of urban problems, see also: N.H. Lithwick 8s G. Pacquet (eds), Urban Studies: A Canadian Perspective. Toronto, 1968. Methuen; National Commission on Urban Problems, Building the American Economy, Washington, D.C., Government Printing Office, 1968; Editors of Fortune, The Exploding Metropolis, Garden City, N.J., Doubleday- Anchor, 1958; H. Wentworth Eldredge (ed), Taming Megalopolis, Garden City, N.J., Doubleday-Anchor, 1967; Edward Higbee, The Squeeze, Cities Without Space, New York, Morrow, 1960, and A Question of Priorities, New York, Morrow, 1970. 6. It is on this point that the present study disagrees with Lithwick's approach. It is argued here that policy-making problems - i.e. political and administrative processes - are indeed the major urban problems. 7. Lithwick, op. cit. p. 26. 8. Ibid.p. 15. 9. See for example, Francis W. Sargent. "Balanced Transportation - A Political Matter", State Government (Winter), 1972, pp. 26-33; Emma Rothschild, "Auto Didacts", New York Review of Books, Feb. 24, 1972. pp.39-42. 10. Gallup Poll, January 4, 1969. Obviously Gallup polls have many problems related to their use and interpretation; further careful attitude and opinion studies should be undertaken. 11. See Tables XIII and XV for data on dwelling starts by housing types (single family and multiple units), Canada and Metropolitan Vancouver, 1960-70. 12. Marvin Lipman. op. cit., presents the argument. However, the yearly report of any development or real estate company will take the same line. 193. 13. Ibid, p. 15. 14. Report of the Federal Task Force. op. cit., p. 15. 15. See Appendix A for a list of references on the problem of rising housing costs. 16. See CMHC, "Canadian Housing Statistics", Tables 78-81,84 for the relevant data. Using indexes of prices of 1949 = 100, the various cost components for bungalows financed under the NHA in 1968 were as follows: cost of land, 511.0; construction costs per sq. ft., 169.9; wage rates of all construction workers, 303.3; residential building materials 167.6; while personal disposable income increased to 352.0. 17. CMHC, "Canadian Housing Statistics", Table 53. 18. J.F. Graham et. al. The Role of the Trust & Loan Companies in the Canadian Economy. London, Ontario., School of Business Administration. University of Western Ontario, 1965. 19. Gordon Boreham, Eli Shapiro, Ezra Solomon & William L. White. Money & Banking. Holt, Rinehart & Winston of Canada, 1969. p. 309. 20. J.F. Graham et. al. op cit. 21. Gordon Boreham et. al. op. cit. pp 302-304. 22. The following discussion is extracted from a number of sources: Midwest Research Institute, op. cit., pp 195-203; W.R. Kellough & Wallace Beaton, "Anatomy of the Housing Shortgage", in Community Planning Review (Spring) 1969; Central Mortgage & Housing Corp., "Housing in Canada, 1946-70". Supplement to the 25th Annual Report of CMHC, Ottawa; Larry B. Smith, "Housing in Canada", Research Monograph 2, Urban Canada, Problems & Prospects. CMHC, Ottawa, 1971; G o r d o n Boreham et. al., op. cit.; J.V. Poapst, "The Residential Mortgage Market", Royal Commission on Banking & Finance, Working Papers, Ottawa, 1962; Michael Wheeler (ed), The Right to Housing. Montreal, Harvest House Ltd., 1969. 194. 23. Comprehensive data of this sort is almost impossible to obtain. Only the mortgage investments of financial institutions and CMHC have been subject to any scutiny. 24. Karl W. Deutsch, op. cit. p. 11. 25. John E. Raser. Simulation & Society. Boston, Allyn & Bacon, 1969. p. 8. 26. Residential Mortgage Financing Act introduced into the Federal parliament by Hon. Ron Basford, May, 1972. 27. Report of the Federal Task Force, op. cit., presented 12 recommendations to solve financing problems, 6 to solve land cost problems, 7 to solve construction cost problems, 6 for social housing problems, 9 for problems of urban development, 4 for problems of administration and 3 to solve research problems. 28. Jay W. Forrester, op. cit. p. 1. 29. See for example, Michael A. Goldberg & C.S. Holling, "The Vancouver Regional Inter-Institutional Policy Simulator", Vancouver, University of British Columbia, 1970; M.A. Goldberg, C.S. Holling, R.F. Kelly, "Vancouver Regional Simulation Study 1970-71", Vancouver, Resource Science Centre, University of British Columbia, 1971. 30. Emma Rothschild, op. cit. p. 41. 31. D.J. Reynolds. "The Urban Transport Problem", Research Monograph 3, Urban Canada, Problems & Prospects. Ottawa, C.M.H.C., 197T: 32. See brief description in Chapter V, pp.146-50 and chronology in Appendix E. 33. S. Schwartz, A. Sokolow & E. Rabin. "Decision-Making", in N.R. Glass & D.E.F. Watt, "Land Use, Energy, Agriculture & Decision Making", A Report to the Natural Science Foundation, May 28, 1971. 34. Ibid, p. 204. 35. Ibid, p. 208-9. 36. Ibid, p. 205. 37. Such as the aforementioned land use and economic models. 195. CHAPTER IV 1. W.R. Kellough & Wallace Beaton, op. cit. 2. N.H. Lithwick. op. cit. p. 13. 3. Ibid, p. 14. 41 Although as far as decision making is concerned, citizens groups must be considered to be outside the system. 5. Some of the more accessible sources are the Canadian Real Estate Annual (June issue of Development & Building), Western Construction & Industry, Journal of Commerce, Canadian Building. 6. There is a pressing need for research in this area, to develop a comprehensive picture of developer activity in Metropolitan Vancouver. 7. Other production subsystems could be characterized as the Consumer Goods Production System, the Social Service Production and Delivery System, etc. 8. See Table XI forcomplete list of categories. 9. Certain minor categories which qualify have been excluded: 48, street lighting; 63, bridges, etc.; 65, park systems; 67, swimming pools, etc. 10. Metropolitan Vancouver includes Burnaby, Connaught Heights, Coquitlam, Delta, New Westminster, North Vancouver City, North Vancouver District, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver City, West Vancouver, White Rock, Woodhaven. 11. A field which would be complementary to the recently developing field of social indicator research. See for example, Raymond A. Bauer (ed). Social Indicators. Cambridge, Mass. M.I.T. Press, 1966. 12. At the present time, public responses are negative; e.g. "too many cars, too many high rises, not enough parks"; but there are few positive indications in the literature. 13. The commonly used tools and concepts of the planners, land use maps, scale models, floor space ratios, are incomprehensible 196. to the general populace. In order to participate meaningfully citizens need tools and concepts which relate to their daily lives and preoccupations. The work on behavior settings and activity patterns may be relevant here. See Roger G. Barker, Ecological Psychology. Stanford. Stanford University Press, 1968.; F.S. Chapin & R.K. Brail, "Human Activity Systems in the Metropolitan United States", Environment & Behavior, 2, No. 2, 1969. pp. 107-130.; F.S. Chapin, "Activity Systems & Urban Structure: A Working Schema", Journal of the American Institute of Planners, 34, No. 1, 1968. pp. 11-18. CHAPTER V 1. A partial list of case studies underway: Arbutus Shopping Centre, a regional shopping centre planned for a middle class neighbourhood; Project 200, a $350 million plus downtown development; Coal Harbour Development, a $70 million downtown development; Vancouver Freeway Proposals, 20 years of freeway planning; Strathcona urban renewal, a large urban renewal scheme near downtown; Adanac Park, working class citizens' attempt to get a park; Jericho Beach, federal government land to be used as a beach and park or as a large private development; Foreshore Park, an attempt by governments to put a four lane freeway along the beach; etc. CHAPTER VI 1. The relationship between the chronology and what "really" occurred is a problem that cannot be considered here. In this paper, reality is fully represented by the chronology. 2. One of the strongest of these is a link between municipal councillors and developers. After he was elected Alderman in Toronto on a "radical", working class platform, John Sewell had to consciously refrain from attending cocktail parties where he would meet the developers and he had to eat lunch alone in the City Hall cafeteria. Even so, it is said that the informal pressures forcing him into the mold of the pr odevelopment alderman are enormous. 197. BIBLIOGRAPHY R.T. Adamson. "Housing Policy & Urban Renewal" in N.H. Lithwick & G. Pacquet (eds), Urban Studies: A Canadian Perspective. Toronto. Methuen, 1968. Chester I. Barnard. The Functions of the Executive. Cambridge, Mass., Harvard University Press, 1938. Roger G. Barker. Ecological Psychology. Stanford, Stanford University Press, 1968. Raymond A. Bauer (ed). Social Indicators. Cambridge, Mass., M.I.T. Press, 1966. Ludwig von Bertalanffy. General System Theory. New York, George Braziller, 1968. Ludwig von Bertalanffy. "General System Theory", General Systems, 1. 1956, pp. 1-10. Ludwig von Bertalanffy. "General System Theory: A Critical Review", General Systems, 7. 1962. pp. 1-20. Gordon Boreham, Eli Shapiro, Ezra Solomon & William L. White. Money & Banking. Holt, Rinehart & Winston of Canada, 1969. Howard N. Boughey. "Blueprints for Behavior". Unpublished doctoral thesis, Princeton University, 1968. Kenneth E. Boulding. The Image. Ann Arbour, University of Michigan, 1956. Bruce B. Brugmann & Greggar Sletteland (eds). The Ultimate Highrise. San Francisco Bay Guardian Books, 1971. Mervyn. L. Cadwallader. "The Cybernetic Analysis of Change in Complex Social Organizations", American Journal of Sociology, 65. 1959. pp. 154-157. F.S. Chapin. "Activity Systems & Urban Structure: A Working Schema", Journal of the American Institute of Planners, 34, No. 1, 1968. pp 11-18. 198. F.S. Chapin & R.K. Brail. "Human Activity Systems in the Metropolitan United States", Environment & Behavior, 2, No. 2. 1969. pp. 107-130. C. West Churchman. The Systems Approach. New York, Delta Books, 1968. G.P.E. Clarkson. "A Model of Trust Investment Behavior", in R.M. Cyert & James G. March, A Behavioral Theory of the Firm. Englewood Cliffs, N.J., Prentice-Hall, 1963. Kevin J. Cross & Robt. W. Collier. "The Urban Renewal Process in Canada: An Analysis of Current Practice". Vancouver, University of British Columbia, School of Community & Regional Planning Studies, Staff Research Project 3. 1967. Robert Dahl. Who Governs? New Haven. Yale University Press, 1961. Karl W. Deutsch. The Nerves of Government. New York, Free Press of Glencoe, 1963. A.E. Diamond. "Housing in the 1970s - A View from the Private Sector". Ottawa, Canadian Housing Design Council, 1970. Leonard J. Duhl (ed). The Urban Condition. New York, Clarion Books, 1963. Economic Council of Canada. "The Canadian Economy from the 1960s to the 1970s", Fourth Annual Review. Ottawa, Queen's Printer, 1967. Editors of Fortune. The Exploding Metropolis. Garden City, N.Y., Doubleday-Anchor, 1958. H. Wentworth Eldridge (ed). Taming Megalopolis. Garden City, N.Y., Doubleday-Anchor, 1967. C.E. Elias, Jr. (ed). Metropolis: Values in Conflict. Belmont, California, Wadsworth, 1968, Lionel D. Feldman & Michael D. Goldrick (eds). Politics & Government of Urban Canada. Toronto, Methuen, 1969. First Canadian Urban Transportation Conference Study Papers. Canadian Federation of Mayors and Municipalities, Ottawa, 1969. 199. Lyle C. Fitch & Assoc. Urban Transportation & Public Policy. San Francisco, Chandler, 1964. Jay W. Forrester. Urban Dynamics. Cambridge, Mass., M.I.T. Press, 1969. Herbert J. Gans. People & Plans. New York, Basic Books, 1968. M.A. Goldberg & C.S. Holling. "Systems Studies of Urban Regions". Mimeographed, 1970. M.A. Goldberg & C.S. Holling. "The Vancouver Regional Inter-Institutional Policy Simulator". Vancouver, University of British Columbia, 1970. Mitchell Gordon. Sick Cities. Baltimore, Penguin, 1963. J.F. Graham et. al. The Role of the Trust & Loan Companies in the Canadian Economy. London, School of Business Administration, University of Western Ontario, 1965. J.L. Granatstein. Marlborough Marathon. Toronto, A.M. Hakkert Ltd., and James Lewis & Samuel, 1971. A. Gruft & D. Gutstein. "A Basis for Resolving Urban Problems" Architectural Research & Teaching, 2, No. 1, (Nov.), 1971. pp.59-62. A.D. Hall & R.E. Fagan. "Definition of System", in General Systems, 1. 1956. pp. 18-28. Edward Higbee. The Squeeze, Cities Without Space. New York. Morrow, 1970. Edward Higbee. A Question of Priorities. New York. Morrow, 1970. Harold Kaplan. The Regional City. CBC publications, 1965. W.R. Kellough & Wallace Beaton. "Anatomy of the Housing Shortage" in Community Planning Review, Spring, 1969. Ralph R. Krueger & R. Charles Bryfogle (eds). Urban Problems, A Canadian Reader. Toronto, Holt, Rinehart & Winston of Canada, 1971. N.H. Lithwick & G„ Pacquet (eds). Urban Studies: A Canadian Perspective. Toronto. Methuen, 1968. N.H. Lithwick. Urban Canada: Problems & Prospects. Ottawa, Central Mortgage & Housing Corp., 1970. 200. James Lorimer. The Real World of City Politics. Toronto, James Lewis & Samuel, 1970. Lower Mainland Regional Planning Board. What Price Suburbia? Vancouver, 1967. N.D. Lea & Assoc. Urban Transportation Developments in Eleven Canadian Metropolitan Areas. Canadian Good Roads Association, 1967. Marvin Lipman. "Housing & Environment", in Ronald Matsushita (ed). Issues for the Seventies: Housing. McGraw-Hill Co. of Canada, 1971. pp. 14-21. James G. March 8s Herbert A. Simon. Organizations. New York, Wiley, 1958. J.S. Marshall. The Dominion Construction Story. Vancouver, Evergreen Press, 1960. Ronald Matsushita (ed). Issues for the Seventies: Housing. Toronto, McGraw-Hill Co. of Canada, 1971. Gerald M. McCue, William R. Ewald, Jr., & the Midwest Research Institute. Creating the Human Environment. Urbana, 111. University of Illinois Press, 1970. Robert K. Merton. "Social Theory & Social Structure in Amitai Etzioni (ed). A Sociological Reader on Complex Organizations, 1970. James G. Miller. "Living Systems: Basic Concepts", and "Living Systems: Structure 8s Process", Behavioral Science, 10, 1965. pp. 193-237 and 337-379. National Commission on Urban Problems. Building the American Economy. Washington, D.C. Government Printing Office, 1968. Dorothy Nelkin. The Politics of Housing Innovation. Ithica, N.Y. Cornell University Press, 1971. David 8s Nadine Nowlan. The Bad Trip; The Untold Story of the Spadina Expressway. Toronto, House of Anansi, 1970. Ontario Association of Housing Authorities. Good Housing for Canadians. Toronto, 1964. 201. Wildred Owen. Metropolitan Transportation Problem. Revised edition, Washington. Brookings Institute, 1966. Talcott Parsons. "Suggestions for a Sociological Approach to Theory of Organizations". Administrative Science Quarterly, 1. 1956. pp. 63-85. Gordon Pask. An Approach to Cybernetics. New York, Harper & Bros., 1961. Charles Perrow. Organizational Analysis: A Sociological View. Belmont, California.' Wadsworth Publ. Co., 1970. Thomas J. Plunkett. Urban Canada & Its Government. Toronto. MacMillan, 1968. J.V. Poapst. "The Residential Mortgage Market". Royal Commission on Banking & Finance, Working Papers, Ottawa, 1962. John Porter. The Vertical Mosaic. Toronto. University of Toronto Press, 1965. John R. Raser. Simulation & Society. Boston. Allyn & Bacon, 1969. Report of the Federal Task Force on Housing & Urban Development. Ottawa. Queen's Printer, 1969. D.J. Reynolds. "The Urban Transport Problem", Research Monograph 3, Urban Canada: Problems & Prospects. CMHC. Ottawa, 1971. Emma Rothschild. "Auto Didacts", New York Review of Books. Feb. 24, 1972. pp. 39-42. Donald C. Rowatt. The Canadian Municipal System. Toronto. McClelland & Stewart, 1969. L o m e H. Russwurm. "Urban Fringe & Urban Shadow", in Ralph R. Krueger & R. Charles Bryfogle (eds). Urban Problems A Canadian Reader. Toronto. Holt, Rinehart & Winston of Canada, 1971. pp. 104-122. T. Sarbin & V. Allen. "Role Theory", in Lindzey & Aronson (eds) The Handbook of Social Psychology, Vol. 1. Addison- Wesley Publishing Co., 1968. pp. 488-558. 202. Francis W. Sargent. "Balanced Transportation - A Political Matter". State Government, (Winter), 1972. pp. 26-33. S. Schwartz, A. Sokolow & E. Rabin. "Decision-Making", in N.R. Glass & D.E.F. Watt, "Land Use, Energy, Agriculture & Decision-Making". A Report to the National Science Foundation, May 28, 1971. Hans Selye. The Stress of Life. New York. McGraw-Hill Paperbacks, 1956. Philip Selznick. "Foundations of the Theory of Organizations", American Sociological Review, 13. 1948. pp. 25-35. Herbert A. Simon. Administrative Behavior: A Study of Decision Making Processes in Administrative Organizations. New York. MacMillan, 1945. Herbert A. Simon. The Architecture of Complexity", Proceedings of the American Philosophical Society, 106, 1962. pp. 467- 482. Reprinted in H.A. Simon. The Sciences of the Artificial. Cambridge, Mass. M.I.T. Press Paperbacks. 1970. Herbert A. Simon. "On the Concept of Organizational Goal". Administrative Science Quarterly, 9. 1964. pp. 1-22. Larry B. Smith. "Housing in Canada", Research Monograph 2. Urban Canada Problems & Prospects. Ottawa, CMHC, 1971. M.M. Somerville. "The Human Element in Urban Renewal". Community Planning Review, 18, No. 4. 1968. James S. Turner. The Chemical Feast. New York. Grossman, 1970. Warren Weaver. "Science & Complexity", American Scientist, 36, 1948. pp. 536-544. Max Weber. The Theory of Social & Economic Organizations. (Translated by Talcott Parsons). New York. The Free Press, 1947. Michael Wheeler (ed). The Right to Housing. Montreal. Harvest House Ltd., 1969. Roy Wolfe. Transportation & Politics. Toronto. Van Nostrand, 1963. APPENDIX A. MAJOR CANADIAN URBAN PROBLEMS AND FACTORS CONSIDERED SIGNIFICANT IN GENERATING THEM 203. 1. Rising Housing Costs The issues: - more families being excluded from market for single family dwellings; even then they cannot find inexpensive rental accommodations; - greater proportion of new housing is in multiple dwelling units even though it is still widely believed that the majority of Canadians prefer the single family dwelling as their first housing choice; - need to achieve a minimum one million additional units over a five year period. - there are two aspects to the problem: a. Cost and supply of mortgage funds - "During periods of high capital demand and inflationary pressure... present lenders tend to give first priority to other investments at the expense of residential mortgages." (These conditions existed during '60s and likely to continue during '70s.) - Can a prospective homeowner (new or used home) get the financing required; can he afford the interest rates; with fewer funds flowing into mortgages, pressure on rents and prices increased, this tends to aggravate the general international situation of high interest rates. b. Cost and supply of urban land - "While overall housing costs in Canada rose by almost 80% between 1951 and 1968, the price of serviced land sky-rocketed by almost 240 per cent in the same period. In areas like Metro Toronto, land in many cases accounts for up to 50% of the overall price of a house...." - Land costs show little sign of abating; by the year 2000 land costs will comprise 45-50% of total project costs. 20k. - High land costs relate to basic demographic and economic trends of increasing population living mainly in urban areas (which contain the income and employment opportunities); with a limited supply of accessible land which becomes scarce and expensive and the decision of what to build becomes more a function of land cost. This leads to: (a) pressure for intensification of land use i.e. increased verticality ("multi-storey revenue is absolutely essential to service mortgages inflated by exhorbitant cost of land acquisitions" (b) pressure for expansion, bringing new land at the periphery of development into the market: cheaper land but with greater transportation and access costs. Factors Associated with Problem a. Cost of Money Factors: - supply of mortgage funds - high interest rates - inflation b. Cost of Land Factors: - inflation - speculation - land assembly procedures - proliferation of rules and regulations - multiplicity of local jurisdictions - municipal financial burden - property taxation procedures - servicing requirements References Report of the Federal Task Force on Housing & Urban Development; W.R. Kellough & Wallace Beaton, "Anatomy of the Housing Shortage" Midwest Research Institute, "The Building Industry: Concepts of Change (1920-2000)"; Larry B. Smith, "Housing in Canada"; Marvin Lipman, "Housing & Environment"; Michael Wheeler (ed), The Right to Housing; J.V. Poapst, "The Residential Mortgage Market". 205. Inadequate Housing Among Low Income Groups (Housing Costs and Poverty) - at least one million Canadians live in sub-standard housing, there are an estimated 4.2 million low income urban residents; - existing public housing adds to the social and psychological problems of low income groups; - federal assistance for low income housing has been available since 1949 under NHA but local and provincial authorities have shown little inclination to make use of this aid. Factors Associated with Problem - see also factors of housing costs - see also factors of poverty - lack of social research - inadequate design, limited choice of types - scattered authorities - see also high land costs - lack of participation - fragmented planning - lack of information and innovation References Report of the Federal Task Force on Housing & Urban Development Michael Wheeler (ed), The Right to Housing 206. 2. Poverty: omitted 3. Social Unrest: omitted 4. Urban Decay/Urban Renewal -Problem: Urban decay Solution: Urban renewal greater problems - problems originally seen to occur in areas immediately adjacent to city core (CBD) where mixed land uses, lack of open space, over crowding, streets carrying high density traffic to CBD, neglected properties, falling rents, property values and property tax revenues but increasing cost of supplying services, (problems of businessmen and planners). -first solution was urban renewal: slum clearance, and public housing; alleviation of "blight"; reallocation of land to higher uses; rehabilitation of properties. - has led to greater problems (problems of residents): disruption of social patterns; unfair expropriation practices. Factors Associated with Problem - lack of minimum standards - property taxation procedures - aging of structures - slum landlords - lack of social research - lack of resident participation - expropriation practices - see also Urban Sprawl 207. References Stanley Pickett, "Urban Renewal" R.T. Adamson, "Housing Policy & Urban Renewal" M.M. Somerville, "The Human Element in Urban Renewal" Leonard J. Duhl (ed), "The Human Condition" 5. Urban Sprawl - refers to "haphazard and discontinuous development in the urban fringe"; a ribbon of mixed land uses along highways; scattered houses, incomplete subdivisions, agriculture. - it is predicted that with continued urban growth, more than one half of the Canadian population will live in suburban areas. - increasing and continuing popularity of suburban living style (car and home ownership). - there are three aspects to the problems: a. loss of agricultural lands, open space and recreational resources; b. inadequate provisions and high cost of services; c. increasing reliance on automobiles and freeways (see also: Transportation Congestion). Factors Associated with the Problem - uncoordinated development - inadequate planning procedures - government taxation procedures - land speculation - financing policies of senior governments - provincial government highway construction policies - consumer preferences - government zoning procedures References: L o m e H. Russwurm, "Urban Fringe & Urban Shadow" Harold Kaplan, The Regional City Lower Mainland Regional Planning Board, Urban Sprawl Lower Mainland Regional Planning Board, What Price Suburbia? Editors of Fortune, The Exploding Metropolis 6. Transportation Congestion - increased population growth and (predicted) increased car ownership ratios are leading to astronomical numbers of cars on limited capacity of road systems. - transportation related in a basic way to location of activities and patterns of land use. - for car driver: congestion, nervous strain, rising accident and insurance rates; for public transit rider: infrequent schedules, overcrowding, discomfort, higher fares; for general public: noise and confusion, air pollution, rising taxes, more space devoted to cars. - see also: Urban Sprawl, Air Pollution. Factors Associated with Problem - lack of coordinated research - inadequate capital investment - consumer preferences - urbanization (ref: suburban sprawl) 209. - provincial highway construction policies - inadequacy of municipal financing - lack of funds for mass transit - lack of Metro wide transit and planning authority References D.J. Reynolds, "The Urban Transport Problem" Emma Rothschild, "Auto Didacts" Francis W. Sargent, "Balanced Transportation - A Political Matter" Wildred Owen, Metropolitan Transportation Problem First Canadian Urban Transportation Conference, Study Papers, esp. R.M. Burns, "The Legislative, Institutional and Administrative Aspects of Urban Transportation" N.D. Lea & Assoc., Urban Transportation Developments in Eleven Canadian Metropolitan Areas Roy Wolfe, Transportation & Politics N.H. Lithwick, Urban Canada, Problems & Prospects David & Nadine Nowlan, The Bad Trip 7. Air Pollution - urban road traffic a major source of pollution affecting the health of the population; aside from physical pollutants (carbon monoxide, hydrocarbons, lead particles, etc.), also includes noise, visual pollution and delay to pedestrians. Factors Associated with Problem - automobile design - consumer preference - highway and road design 210. Reference D.J. Reynolds, "The Urban Transport Problem" 8. Municipal Finance - most "necessary" services are primarily local municipal 1 functions (e.g. urban transportation) but most lucrative and responsive sources of revenue (income and consumption taxes) not appropriate for municipal administration. - main source of revenue, the tax on real property, which is rapidly approaching the limited of public acceptance while funds required for municipal functions continue to escalate. - inability of municipal governments to raise revenues sufficient to meet assigned responsibilities. Factors Associated with Problem - inadequate provincial grants - rural control of provincial governments; unsatisfactory municipal/provincial relations - fragmented municipal authorities - uneven property taxation procedures - uncoordinated federal government involvement in municipal affairs - disjointed federal government transfer of funds References Report of the Federal Task Force on Housing & Urban Development Harold Kaplan, The Regional City N.H. Lithwick, Urban Canada, Problems & Prospects R.M. Burns, "The Legislative, Institutional & Administrative Aspects of Urban Transportation" Thomas J. Plunkett, Urban Canada & its Government 9. Municipal Government: omitted APPENDIX B. - PROFILES OF SELECTED DEVELOPMENT COMPANIES AND FINANCIAL ORGANIZATIONS 211. CANADIAN FINANCIAL INSTITUTIONS 1. Chartered Banks Operate under the authority of the Bank Act, revised every 10 years and regulated by the policy and actions of the Bank of Canada. They are still the dominant financial institutions with a widespread branch system holding nearly 50% of outstanding financial assets. Banks receive funds as savings or demand deposits, as profits from lend- ing, and through the sale of stock. The vast majority of funds has gone to commercial and industrial companies for short term working capital, or to individuals for consumer loans. Traditionally banks have not engaged in the provision of mortgage funds or other long term capital. The 1967 amendments to the Bank Act removed the ceiling on the rates banks could charge on NHA mortgage loans and permitted banks to enter the lucrative conventional mortgage market which they have in a big way recently. 2. Life Insurance Companies Have always been the most important source of mortgage loans but are beginning to decrease slightly in importance because of large flows of savings into pension funds. The 212. major sources of funds for life insurance companies are the premium payments by policy holders, long term bond maturities, investment income, mortgage amortization payments, all of which involve highly predictable long term obligations, so that a large proportion of funds may be invested in higher yielding long term assets such as mortgage loans. Liquidity is less important than for other institutions because the calculation of claim liabilities is highly accurate and the inflow of funds is subject to very little fluctuation. A company can draw up an investment program for an extended period of time with minor modifications to suit market conditions. Allowable invest- ment has been broadened to 25% in common shares. London Life Insurance Co. Third largest Canadian life insurance company but because it conducts all of its business in Canada - in contrast with the other major Canadian companies - it is the second largest in terms of Canadian assets. Holds a much higher percentage of its assets in mortgages than the other companies. At the end of 1969, 75.1% of its assets were in mortgages against an industry average of 48.3% making it one of the largest mortgage lenders in Canada. Company was founded in 1874 in London, Ontario, by the Jeffery family 213. London lawyers and businessmen. Two members of the family are currently chairman of the board and president. The company has approximately 5,000 employees. At the end of 1970, the company had approximately $87 million invested in B.C.: $53 million in home and apartment mortgages; $34 million in government and corporate securities. Amendments to the Canadian and British Insurance Companies Act allowed insurance companies to take an equity position in real estate investments as well as provide mortgage funds. In 1969, London Life formed a joint venture with Goldlist Construction Ltd., Leaside Towers Apartments Ltd. to develop two 43-storey apartment buildings in Toronto. (Two tallest apartment buildings in the Commonwealth.) As well the company provided a $17 million mortgage for the project. Most other life insurance companies have participated in similar ventures. 1970 1969 1968 1967 1966 Total Assets 1,628.9 1,546.4 1,484.9 1,388.9 1,295.1 Mortgages 1,181.5 1,149.6 1,089.1 1,000.3 925.5 232. Trust Companies Are the only institutions who can act as administrators, executors and trustees. This includes estate funds which are managed according to will instructions and government jurisdictions for properties; trust funds, especially pension funds; and agency funds under the orders of living clients. Generally these funds are invested in government securities, school and hospital bonds and first mortgages - all long term instruments. Also, a great deal of equity capital is managed through the agency of the trust company, effectively masking the true owners or controllers of many Canadian corporations. Trust companies also issue capital stock, deposit accounts and one to five year guaranteed investment certificates. In the past ten years this source of capital has been increasingly shifted from bond issues to higher yielding mortgage loans. Mortgage Loan Companies Are engaged primarily in the provision of long term funds for mortgage loans. Approximately 75% of loan company assets are mortgage loans, also some government securities and bonds. Funds are provided through the sale of debentures and savings deposits. 215. Canada Permanent Mortgage Corp. One of the largest mortgage investors in Canada; a large trust and loan company (Canada Permanent Trust Co. is a subsidiary), ranking second in terms of borrowed funds and third in terms of estates, trusts and agencies (ETA's) under administration. Trust and loan companies provide many services: accepting deposits, manages investments, acts as executor and trustee for estates, manages mutual funds, acts as transfer agent for corporations, manages pension plans, participates in real estate brokerage business, selling, purchasing, managing real estate. Company has a total of 57 branches, 19 real estate offices across Canada and 2,400 employees. The company was established in 1855 and the present company is the result of numerous mergers and acquisitions. Toronto Dominion Bank and Bank of Nova Scotia are large shareholders in the company; however, since 1967 individuals are not allowed to sit on the board of directors of both a bank and a trust company. About one half of the company business is in Ontario, but the rest is distributed across Canada. Vancouver is head- quarters for the Pacific Region, which at the end of 1970 was responsible for almost $210 million in mortgage investments, 216. approximately 20% of total Canadian mortgage investments. Of this total the company has 60% in single family dwellings, 26% in multi-family dwellings, 14% in commercial properties. 1970 1969 1968 1967 Total Assets 1,411.5 1,273.3 1,146.7 1,085.9 Mortgages 1,096.5 976.8 833.4 802.3 % 78 77 73 74 ETA's 1,947.4 1,876.9 1,808.6 1,698.4 Credit Unions and Caisses Populaires Are usually found around an interest group (such as trade unions or churches) to provide loan funds for the members. At the end of 1967 there were 4,760 active associations with a membership of over 4.7 million mainly in Quebec. Each credit union is autonomous but is affiliated with a central credit union - there are 28 in Canada - which would receive surplus funds from and make loans to the member associations. Funds come from the sale of shares in the association and acceptance of deposits. Credit unions have witnessed a rapid growth due to their lower charges to members and other member benefits. 235. Vancouver City Savings Credit Union Although credit unions together have a large impact on the financial life of Canada, most of them are small, the average assets being somewhat less than $1 million. Van City is one of the exceptions, becoming the largest Canadian credit union in 1971. The union was formed in 1946 by a group of private individuals; it now has over 23,000 members who are all shareholders. The union accepts demand and savings deposits; makes personal and mortgage loans and provides other member services. It has supplied the financing for the first privately financed condominiums in B.C. 1971 1970 Total Assets 58.9 31.2 Mortgages 50.0 27.2 Pension Funds Are the newest, fastest growing and least regulated group of financial organizations in Canada. They have undergone a phenomenal growth rate of 13.5% per year mainly because of the stress on fringe benefits in wage contracts, the relative lack of restriction on investment policy and tax deduction features. However, they have followed a very 218. conservative investment policy investing mainly in low yield, low risk government bonds and very little in mortgage loans. Insured pension funds are administered by life insurance companies and these are included in those statistics. Non- insured funds may be administered by independent trustees (55% of assets), trust companies (35%) or by pension fund societies (10%). In 1967 there were 3,789 trusteed pension funds in Canada. Over the past few years the federal government has made several attempts to encourage pension fund investment in mortgage loans apparently with little success - only about 10% of pension fund assets are in mortgage loans. Quebec Savings Banks Function as a cross between the Canadian Chartered banks and the American Savings and Loan Societies. There are only two of these institutions remaining in Quebec - Montreal City and District Savings Bank, Quebec Savings Bank, They are a relatively minor institution although they do provide considerable mortgage money for their size - legally they may hold a maximum of 60% of deposits in mortgages. 219. Investment Companies Are based on the principle of professional management of the pooled resources of many small investors. The open end, mutual funds sell shares at the net value of their investments and will redeem them at any time (at a 7-9% loss for the investor). Most of these companies were formed in the past 15 years, had a phenomenal growth during the 60s, but have declined considerably in the past two to three years. Closed end funds are initiated by the sale of shares to the public, and the proceeds are invested in financial assets. These shares are then traded on the stock market. The funds are regulated by Charter which limits the percentage and type of investment possible. Most money is invested in preferred and common stocks with a negligible amount in mortgage loans. 220. DEVELOPMENT COMPANIES Trizec Corporation Ltd. Largest public real estate company in Canada. Formed in 1960 as a partnership between Webb and Knapp (Canada) Ltd. and Second Covent Garden Property Co. Ltd. and Eagle Star Insurance Co. Ltd. (controlled by Philip Hill and Brian Mountain family in England). When Zeckendorf was having difficulties financing his Place Ville Marie development Webb and Knapp sold out in 1963 because of its insurmountable financial difficulties. The company is now controlled by Star (Great Britain) Holdings Ltd. (63.3%). Its main properties are Place Ville Marie; Yorkdale, Brentwood and Halifax shopping centres; other office buildings in Montreal; a residential development in Montreal; a chain of retirement homes; etc. Over the past year it acquired control of Cummings Properties Ltd. (fifth largest) and Great West International Equities Ltd. (tenth largest) giving the group total net assets of $455 million. 1969 1968 1967 1966 Assets 253.7 240.7 178.7 177.7 Revenues 37.7 28.0 25.0 21.1 Income (Loss) 2.7 1.1 0.3 (0.8) ! 221. Cummings Properties Ltd. A family owned real estate company founded in 1925; incorporated / in 1968 with net assets of $117 million. The company develops and acquires properties through a series of subsidiary and affiliated companies. Distribution of assets: Alberta 46%; Quebec 25%; Nova Scotia 20%; Ontario 9%. The group owns 17 office buildings (2.0 million sq. ft) (67% of assets); 9 apartment buildings (1,512 suites) (24%); 4 shopping centres (0.5 million sq. ft.) (9%). It owns 55% of the recently completed Calgary Place ($30 million). In 1970 it was taken over by Trizec Corporation Ltd. Wall and Redekop Corporation Ltd. A medium sized integrated real estate and construction company, based in Vancouver. Was incorporated in 1969 by the amalgamation of eight private companies formed or acquired by the partners, two cousins. They began in the construction business in 1960 building houses. The company now handles all phases of the development process. It assembles land for residential sub- divisions; constructs apartment suites and houses; manages apartments, shopping centres, and a motel; maintains a rental income portfolio. The company has a real estate sales division with a local section and an international section which specializes 222. in the sale of apartment buildings to Asian investors. It also owns wholesale and retail lumber sales outlets and a custom kitchen furniture factory. 1970 1969 Assets 25.2 2 2 . 0 Revenues 13.5 13.2 Income 9.7 0.9 Wosk's Ltd. Basically a medium sized, Vancouver based retailing chain specializing in furniture and appliance sales. This company is included here as an example of many companies whose primary activity is in some other field but whose secondary real estate activities do have a profound impact on urban development. Wosks entered the real estate business originally through the development of its own department store properties; then moved into apartment building and hotel development. The company is organized into three divisions. The retail division operates 12 stores throughout Greater Vancouver. The real estate division manages income properties adjacent to company stores and constructs apartment buildings. The hotel division supervises the planning 223. and construction of hotels which are then operated by the Sheraton ITT- chain. The company is owned by Ben Wosk, the founder. 1970 1969 Assets 10.8 8.1 Revenues 9.1 7.6 Income 0.3 0.2 Western Realty Projects Ltd. Began as a family venture in property management in Edmonton in 1953. In 1969 a public company was formed from the amalgamation of more than 20 corporations. With a public underwriting of $6.5 million, the company expended to Calgary and Vancouver. The company is one of the fastest growing in Canada. The company is in all phases of development except single family dwelling construction. It owns one of the largest land banks in Canada. It buys large land holdings as close to a city as possible, retains them for 3-4 years until value increases, then it develops the land. It sells the single family lots, which from the appreciated value covers the original land costs, and then develops the apartment and commercial properties itself, 22k, including major regional shopping centres. The company has a large portfolio of commercial, industrial, shopping centre, hotel and apartment properties. In lage 1970, the company moved into eastern Canada by forming a partnership with Tankoos Yarmon Ltd., a large American owned private development company in Eastern Canada. 1971 1970 1969 Assets 87.9 67.1 54.0 Revenues 17.1 15.7 11.5 Income 2.6 2.0 1.5 / APPENDIX C. MAJOR BUILDING PERMITS ISSUED CITY OF VANCOUVER 1957 - 1970 225. 1968 March Woodwards Parking Garage Office addition April Office building addition Civic Auditorium May Vancouver Preventorium August Royal Bank of Canada September Shopping Centre: Woodwards B.C. Telephone Office addition $ Million 1.1 0 . 6 1.4 4.0 0 . 6 1.3 2 . 2 3.5 1958 January April May August September October November December School: Sir Charles Tupper 1.8 Shaughnessy Hospital addition 3.9 Kitsilano School addition 1.2 Apartment 1.0 Apartment 1.0 Warehouse 0.6 Office building 0.9 Apartment 0.8 Maritime Museum 0.3 Grace Hospital 0.8 School addition 0.7 Vancouver General Hospital add'n 0.5 Apartment 0.6 Office building 0.7 1959 January Eatons Warehouse 1.9 February Office building: Imperial Oil 1.5 March Office building: Medical Fairmont 3.0 226. $ Million 1968 May June July Brewery 1.2 Hudsons Bay Co. Parking Garage/Store 1.4 Apartment Motor Hotel Office building 0.7 0.5 1 . 8 1960 January April May October December Office building Apartment Hotel Secondary School Warehouse Apartment 1.3 1 . 0 2.1 2 . 2 1 . 8 1 . 2 1961 March Apartment 0.3 June School 1.8 Hospital addition 1.2 November Low Rental Housing Project 1.8 December Vancouver Vocational School add'n 1.7 1962 January April May July Low Rental Housing Project: McLean Park 1.1 Firehall #20 0.1 PNE Livestock Building 0.7 School: 1755 Barclay St. 1.0 Killarney Community Centre: 6265 Kerr St. 0.7 Templeton School addition 1.3 Royal Bank Building: 796 Granville 1.0 22 7 $ Million 1962 November Apt: 5805 Balsam St. Terminal City Club addition December Apt.: 1255 Bidwell Heatley Ave. Overpass 0.7 0.5 1.3 0.5 1963 January February April June July September October November Apartment: 1111 Barclay St. Apartment: 2050 Nelson Street Victoria Dr. Community Centre Renfrew Community Centre Senior Citizens Home Calling Foundation Little Mountain Reservoir add'n Apartment: Apartment: Apartment: Apartment: 1250 Jervis St, 5850 Larch St. 1120 Jervis St, 1260 Bidwell 1875 Robson St. 5450 Vine Street Office building: 1261 W. Pender (East Asiatic) Apartment: Apartment: Apartment: Apartment: 1361 Robson St. 1650 Davie St. 0 . 6 0 . 6 0.5 0.5 0.5 0.7 0.5 0.7 0 . 8 0 . 6 0 . 6 0 . 6 1.2 0.5 1.5 1964 February Elks Club 901 Dunsmuir 0.5 Office building: Montreal Trust 700 W. Pender St. 4.3 April Apartment: 2055 Pendrell St. 1.0 Pacific Press 2250 Granville St. 5.5 June Apartment: 1845 Comox St. 0.5 August Apartment: 1251 Cardero St. 1.0 October Apartment: 1605 Beach (3 towers) 3.2 Apartment: 1255 Pendrell St. 0.7 November Exhibition Park Grandstand 1 . 0 228. $ Million 1968 February- March April May June August November Apartment: Apartment: 1100 Harwood St, 4665 W. 10th Apartment: 725 W. 46th Office building: 890 W. Pender Nesbitt Thompson City Works Yard Apartment: 1250 Comox Charles Tupper School add'n Apartment: 1630-1670 Pendrell Stanley Park Aquarium add'n Senior Citizens Housing 6620-80 Elliott St. Garden apts. Arbutus & Valley Dr. Office building: 505 Burrard Centall Centre Apartment: Apartment: Apartment: Apartment: 1575 Beach Ave. 1250 Alberni St. 1330 Haro St. 1275 Pacific St. 0.5 0.5 0.7 1 . 0 3.7 0 . 6 0.9 2 . 1 1 . 0 1.1 2 . 6 5.0 0 . 6 1.7 0 . 6 0 . 6 Senior Citizens Home: 2550 Waverley 0.6 Office bldg.: 505 Burrard St. 1.0 1966 January Fed/Prov. housing project 500 Raymur 5. 3 Apartment: 1075 Comox St. 1.4 Templeton School add'n 0.8 Office Bldg: 1101-21 W. Hastings Baxter Building 1.4 March Motel: 1225 Robson St. 0.9 Hotel Vancouver add'n 2.1 Office bldg: 1155 W. Pender St. Royal General Insurance 2.3 Office bldg: 789 W. Pender St. 2.1 May Apartment: 2370 W. 2nd Ave. 0.5 229. $ Million 1968 May- June July September School add'n: 5025 Willow 1.2 6454 Killarney 0.6 Apartment: 1320 Bute St. 0.7 General Motors warehouse 900 Terminal add'n 1.0 NHB warehouse north foot Heatley 0.9 Elementary School: 6100 Battison 0.7 Apartment: 1655 Robson St. 2.2 Apartment: 840 Broughton St. 0.8 Meat Plant 8950 Shaughnessy (add'n) 0.5 1967 January February March May June July Trade Fair Building (stage one) 1.0 Parking Garage: 505 Burrard St. 0.8 Centennial Museum & Planetarium 2.3 Trade Fair Building PNE (stage two) 3.5 Eatons warehouse 2950 E. Broadway 1.6 Warehouse north ft. of Dunlevy 0.8 Office bldg and parking garage: 1045-75 W. Georgia MacMillan Bloedel 9.7 B.C. Baptist Foundation Apt. 2550 Waverley 0.7 Apartment: 1445 W. 13th 0.5 Apartment: 1625 W. 13th 0.8 Office bldg.: 1455 W. Georgia 0.8 Apartment: 2075 Comox St. 0.9 Apartment: 1305 W. 12th 0.8 Apartment: 5925-6025 Tisdall and 5936-6030 Willow 0.5 Apartment: 1250 Bute St. 0.6 Ford Motor Co. dealership: 2300 Cambie St. 0.6 230. 1968 August Office Bldg: Stage 1 1177 W. Hastings Board of Trade Office Bldg: 777 Hornby St. Avord Building Office Bldg: 1055 W. Hastings Guiness Tower Apartment: 1202 Harwood September Apartment: 1234 Barclay St. Office Bldg: 1177 W. Hastings O.B. Red Cross Headquarters: 4750 Oak Street October Apartment: November Apartment: Warehouse: 1651 Harwood 2055 Beach Ave. 555 Great Northern Way 1968 January Apartment: Apartment: Apartment: Apartment: 1307 Harwood 1045 Beach 3755 W. 6th 1933 Robson St. February Apartment: 1277 Robson Low Rental housing 1555 Woodland Office Bldg. 626 Bute St. Moore March Low Rental Housing: 6175 Knight Apartment: 2020 Comox Apartment: 1414 Barcley St. Wharf n. ft. Cassiar St. April Office Bldg. 885 Dunsmuir Office Bldg. 555 Burrard (partial) Office Bldg. 895 W. 10th Office Bldg. City Hall Annex YMCA add'n 580 Burrard May Personal Care Home 4950 Heather Low Rental Apt. 1115 Nelson St. Office Bldg. 1345 W. Georgia West Coast Transmission $ Million 0.5 3.4 8.9 0 . 6 0 . 6 6.5 1.4 0.9 0 . 6 0.5 0.7 1.9 0.5 0.9 0 . 6 1.7 0 . 6 1 . 6 0.5 0 . 8 1 . 8 1 . 2 2 . 8 0 . 6 1.9 1.5 0.9 1.5 3.8 231. 1968 June Apt. and Commercial complex 1030 Denman St. Apartment: 1050 Harwood Apartment: 1011 Beach Apartment: 701 W. 57th Ave. Senior Citizens Project 3263 Blenheim St. Food Processing Plant addition 1126 S.E. Marine Dr. July- August September October November December Garden Apt. 701 W. 57th Ave. Apartment: 1330 Harwood Apartment: 1160 Haro St. Conservatory and Forest Hall Queen Elizabeth Park Apartment: 7135 Granville St. Apartment: 701 W. 57th Apartment: 1355 Pendrell St. Office Bldg.: 175 W. Cordova St, CP/CN Low Rental Apts. 400 Keefer St. Apartment: 801 East 6th Garden Apt, Apartment: 5505 Oak St. 1265 Burnaby St, Personal Care Home 1450 W. 12th Apartment: 1160 Broughton Apartment and townhouse complex 54th and Killarney 1969 January February March Apartment: Apartment: 701 W. 57th 1075 Comox St. Apartment add'n 1126 S.E. Marine Apartment: 1655 Haro St. Motel: 1110 Howe St. add'n Motel: 1160 Davie St. Office Bldg. 1885 W. Broadway Parking Garage 443 Seymour and 601/29 W. Pender $ Million 4.2 0 . 6 1 . 2 1.1 0 . 6 0 . 6 1 . 6 1.1 0 . 6 1 . 0 3.0 2.7 0 . 8 1.5 3.8 0.9 1 . 0 1 . 6 0.9 0.5 1 . 8 2 . 2 1.5 0.7 0 . 6 0.7 1 . 0 0.7 0.7 232. $ Million 1968 April Apartment: 1905 Robson 0. 8 Apartment: 1920 Alberni St. 0. 8 Apartment: 1330 Pendrell St. 0. 7 Apartment: 5233 Joyce St. 0. 7 Apartment: 2040 Nelson St. 0. 7 Apartment: 1460 Barclay St. 0. 7 Apartment: 1424 Nelson St. 1. 2 Apartment: 1146 Harwood St. 0. 7 Apartment: 1088 W. 12th 0. 5 Hotel add'n Bayshore Inn 1601 W . Georgia 2. 1 May- Apartment: 1770 Barclay St, 0. 8 College: Langara Campus 5. 7 Parking Garage: 749 Seymour 0. 5 Brewery add 'n 1550 Burrard St. 0. 7 June Apartment: 1230 and 1260 Nelson 3. 2 Apartment: 1436 Burnaby St. 0. 5 Apartment: 1348 Barclay St. 1. 4 Apartment: 1660 Barclay St. 0. 6 Office Bldg and store complex Block : 52 Stage 1 (excavation) 0. 8 July Apartment: 1155 Harwood St. 0. 9 Apartment: 945 Jervis St. 0. 8 Apartment: 1580 Haro St. 0. 5 Hotel add'n 1601 W. Georgia St. 2. 1 Office Bldg . add'n 701 W. 37th 3. 0 Medical Clinic 1530 W. 7th 0. 6 August Apartment: 1444 Alberni St. 1. 0 Apartment: 1150 Jervis St. 2. 3 Apartment: 1155 Beach Ave. 1. 2 Apartment: 1150 Burnaby St. 1. 4 Office Bldg . 1177 W. Broadway 1. 0 September Apartment: 4660 W. 10th 0. 6 Parking Garage 524 Cambie St. 1. 0 October Apartment: 3721 W. 7th 0. 6 November Apartment: 1655 Nelson St. 1. 2 Apartment: 1160 Haro St. 0. 8 Senior Citizens Residence 3335-55 E. 5th Ave. 0. 5 Stanley Park Aquarium Whale Pool 1. 0 233. $ Million 1968 December Apartment: 1720 Barclay St. 0.7 Office Bldg. complex Block 52 (Foundations) 4.0 Office Bldg. add'n 1001 W. Pender 0.9 1970 January Apartment: 1755 Haro St. 1.0 School add'n 200 S. Penticton St. 0.7 February Apartment: 325 Keefer St. 0.7 March Hotel: 1015 Burrard St. 2.5 May Office Bldg. complex Block 52: Office tower and parking structure 12.2 June Meat Packing Plant add'n 8950 Shaughnessy St. 0.7 July Secondary School add'n: Windermere 3155 E. 27th 0.7 August Project 200 foundations 0.6 September Office Bldg.: 1090 W. Pender 1.3 Office Bldg: 850 S.W. Marine Dr. 0.8 Office Bldg: 750 Cambie St. 0.9 Apartment/Townhouse complex 2267 East 27th Ave. 0.7 October Brewery add'n 1550 Burrard St. 1.4 November Comm/hotel complex 500 W. 12th 0.9 Medical office building 1750 E.lOth 0.8 December Townhouses 3500 E. 49th 1.3 Hotel 888 W. Broadway (Wall & Redekop) 0.7 Project 200 Stage 1 1.2 Project 200 Stage II 0.8 Office/hotel complex: Royal Centre 1025 W. Georgia (Foundations) 2.5 23^ PROJECT YEAR PERMIT ISSUED VALUE OF PERMIT $ Mill. Block 42/52 MacMillan Bloedel Bentall Centre Guinness Tower Columbia Centre Langara College Pacific Press Building Raymur Park Public Housing Project Trade Fair Building, PNE Montreal Trust Building Denman Place Queen Elizabeth Theatre Shaughnessy Hospital addition Westcoast Transmission Keefer St. Public Housing Project City Works Yard B.C. Telephone Office addition Avord Building Beach Towers Nelson Towers Fairmont Medical Building 1969-70 1967 1965-70 1967 1967-70 1969 1964 1966 1967 1964 1968 1957 1957 1968 1969 1965 1957 1967 1964 1969 1959 17 0 9 7 9 6 8 9 8 4 5 7 5 5 5 3 4 5 4 3 4 2 4 0 3 9 3 8 3 8 3 7 3 5 3 4 3 2 3 2 3 0 TABLE XXIV. MAJOR BUILDING PERMITS ISSUED CITY OF VANCOUVER 1957-70. Note: Value of permits is in current dollars. To account for inflation and cost increases, a permit of $1 million in 1957 would be over $2 million in 1970. 235. to +-> •H s u 0) a h£> £ •H T3 r - l •H m «H o CD i—I ci > 50 40 30 20 10 t> m C 5 o CO <35 m CD 0 5 o t> <35 r - l FIGURE 17 VALUE OF MAJOR BUILDING PERMITS ISSUED CITY OF VANCOUVER, 1957-70. Note: includes all building permits greater than $0.5m. APPENDIX D. - A SAMPLE OF PUBLIC REACTION TO URBAN DEVELOPMENT IN VANCOUVER i 236. On February 10, 1971, 500 residents of the Point Grey area met to protest proposed plans for the Jericho Parkland Development. Dissatisfactions: Public should have free access to beach and waterfront; Highrise apartments should not be built because density too high; the re-zoning process does not allow for public viewpoint input early enough in the process and it is ignored when it is given; six lane "freeway" would cause danger for children, increase noise and pollution and destroy parkland; the "Coney Island" type of development would be distasteful and undesirable atmosphere and would be too dense; city hall "secrecy" in proceedings is inexcusable pollution from the proposed marina would be bad. Organizations: a. Vancouver City Council (Mayors Rathie and Campbell), City Council Standing Committee on Planning and Development, Engineering Dept. (Traffic Engineer Ron Martin), Town Planning Commission, Parks Board. b. Federal Government (P.M.s Pearson and Trudeau), Department of National Defense (Ministers Hellyer, Cadieux, MacDonald), Canadian Assets Disposal Corp., M.P.s Grant 237. Deachman, Eric Kiernans, Art Laing, Ron Basford, Robert Andras. c. Provincial Government Attorney General, Robert Bonner. d. Grosvenor Laing Development Corp. e. Northwest Point Grey Homeowners' Association, West Point Grey Community Association, Point Grey Road and Camosun Avenue Ratepayers' Association, Spanish Banks Property Owners' Association, West Point Grey Local Area Council, Environmental Party, U.B.C. Alma Mater Society. Eight citizen's groups combine to form the "Save Stnaley Park Entrance Committee" in an attempt to block the proposed high rise development on Georgia Street at Stanley Park. The Park was occupied by youth groups during the summer of 1971. (See Coal Harbour Development Proposal.) Dissatisfactions: The construction of major high rise buildings would block the view of the bay and would impinge on the significance of the entrance to Stanley Park; the traffic produced by such a project would make an already bad situation, worse; access to the waterfront would be impaired; parks have higher priority than real estate speculation. 238. Organizations: Save Stanley Park Entrance Committee (made up of: Community Arts Council; Community Planning Association of Canada; West End Community Council; West End Downtown Ratepayers' Association; Local Council of Women; Save Your Parks Association; Vancouver Garden Club; Central Council of Ratepayers). In 1970, tenants' organizations from six Lower Mainland Low Cost housing projects, combined to form the Vancouver Housing Inter-Project Council and produced a report which pointed out the major inadequacies of public housing. Dissatisfactions: Inadequate playground facilities; poor maintenance; poorly designed services and circulation; overcrowding; isolation; troublesome management. Organizations: Vancouver Housing Inter-Project Council (included: Little Mountain; Orchard Park; Skeena Terrace; Killarney Gardens; McLean Park, Raymur Place); United Community Services. 239. In 1968, Chinatown residents formed the Strathcone Property Owners' and Tenants' Association in order to resist the city's attempts to clear and rebuild major portions of Chinatown. (See Strathcone Urban Renewal Schemes.) Dissatisfactions: The scope of the renewal plan was too general, i.e. too many people affected; wholesale clearing would destroy the life and character of Chinatown; the inability of the plans to incorporate the Chinese way of life. Organizations: a. City Council, Technical Planning Board, Planning Department, Social Planning Department, Town Planning Commission, Senior Medical Officer of Health. b. Provincial Department of Municipal Affairs (Deputy Minister). c. Central Mortgage and Housing Corp., Minister in Charge of Housing, Federal Task Force on Housing. d. Vancouver Chinatown Redevelopment Assoc., Strathcona Property Owners' and Tenants' Association. In Late 1967, Chinatown residents, University students and citizens' groups combined to resist City Council plans for freeway construction. (See Vancouver Freeways.) Dissatisfactions: Freeways would turn the West End into a slum (if it goes through West End); property values would drop; Stanley Park would be messed up; millions in tax dollars would be lost to the city; no proof that freeways relieve traffic congestion; freeways are an obsolete form of solution for transportation problems; rapid transit more of a priority; freeways are not financially feasible for the taxpayer; if it goes through Chinatown it would kill the business life of Chinatown; consultant's terms of reference too limited, terms of reference set without advice from the T.P.C. or Council; scheme was totally preconceived; if freeway is never to be built, then all money on studies was wasted and a blight condition would result in the area where the freeway would supposedly go; ad hoc, fragmentary study methods; consultants avoiding responsibility of accepting terms of reference; irresponsible statements by Campbell; freeway would split city into east and west, permanently; current plan based on obsolete studies; too much emphasis on technical and economic aspects and not enough consideration of humanistic effects; piecemeal approach makes for insecure investment field; long term regional transportation plans must be worked out before freeway decisions can be made; "freeways first" attitude of engineers; expert predictions, questionable; council decision premature; racial discrimination in selection of route through Chinatown; City Council arrogance in face of public protest; lack of public involve- ment in decision making; the validity of the second crossing, questionable in light of freeway requirements to feed crossing. Organizations: a. City Council (Mayor and various aldermen); Board of Administrations; Planning Department; Engineering Department; City Transportation Commission; Greater Vancouver Regional District, Town Planning Commission. b. Federal and Provincial governments: various members of legislature and parliament. c. Six firms of consultants and sub-consultants. d. West End Community Council; Chinese Benevolent Society; U.B.C. Faculty Group; U.B.C. Student Groups; Community Arts Council; Vancouver Chapter of the Architectural Institute of B.C.; Community Planning Association of Canada Vancouver Council of Churches; Board of Trade; Building Owners' and Managers' Association; Downtown Business Assoc. Citizens' Council on Civic Development; Central Council of Ratepayers; B.C. Automobile Association; Vancouver and District Labour Council; Citizens' Committee for Public Transit. / APPENDIX E - CHRONOLOGIES OF CASE STUDIES 1. COAL HARBOUR REDEVELOPMENT PROPOSAL 2. FREEWAY PROPOSALS 3. STRATHCONA URBAN RENEWAL SCHEMES 1. COAL HARBOUR REDEVELOPMENT PROPOSAL. 1961 August 18 Mayor Alsbury approached W. Zeekendorf, president of Webb and Knapp (W & K), responsible for the development of Brentwood, to sponsor Vancouver's slum clearance program. What areas were to be involved in the program were not specified at that time. (no date) (no date) During the year Zeekendorf had assigned Pemberton Realty to assemble all the land between Bidwell and Chilco, north of Georgia Street. Marwell Construction was also assembling land in the area, having previously taken part in the land assembly for the Bayshore Inn with Western Hotels. 1962 March 29 W & K announced plans for a $70 million development of 25 storey apartment buildings, with 5000-6000 units, and a marine of undisclosed size. May 7 July 18 Marwell at the same time announced similar plans that were now superseded. W & K and Marwell announced that they were negotiating to join forces for the development, A scaled-down version of the initial project was announced, but the extent of the new project was not specified. Studies were expected to be completed by September/October. Termination of agreements between W & K and Marwell also announced. July 21 W & K1s plans included only the two blocks adjacent to Stanley Park, the other block being tied up by long term leases. 2UU-. 1962 July 21 Marwell postponed further development due to the austerity program. Funds already invested totalled $400,000. July 26 Thompson, Berwick and Pratt announced by W & K as the project architects. Pre- liminary engineering studies done by R.J. Cave & Co. 1963 (no date) (no date) (no date) June 24 June 25 July 12 August 10 September 21 Coal Harbour Investments formed by W & K to develop the site. New $55 million development proposed by W & K. City of Vancouver set September 1 deadline for completion of water-lot leases with National Harbours Board (NHB). Public meeting in Playhouse Theatre, presided over by Mayor Rathie, noisily opposed the development. Rathie threatened to close down meeting. The following day City Council approved 3000 suite project and rezoned the land to allow apartment and marina development. W & K sold off properties in Eastern Canada netting $4.5 million. First stage of project was scaled down to $10 million. W & K denied plans to dispose of project. W & K announced difficulty in negotiating with NHB and doubted it could make September 1 deadline. Alderman Rankin, spokesman for hostile rate-payer groups, said that if the re- zoning bylaw must be amended to allow for an extension, the groups would demand another hearing. Vancouver Tug and Barge sued ff & K for defaulting on payment of $775,000 due before June 30, 1963. 2^5. 1964 January 20 W & K refused to disclose source of funds for $10 million first stage to public. Mayor Rathie claimed confidence, having been told privately that original source was Manufacturers Life. ' March 28 False Creek Industries sued W & K for default of payments, and named National Trust as enjoined in holding mortgage for Coal Harbour Investments. May 1 June 10 W & K's annual meeting was told that an announcement on the Coal Harbour project would be made soon. Financing claimed to be the reason for delay. W & K claimed cash to start project, but gave no new date. Claim had been made in January by W & K that project would start in June. August 20 September 5 West End and Downtown Ratepayers Assoc. said that the city council should acquire property for a centennial project. W & K president J.A, Soden put all of the company's holdings up for sale. Negotiations with six firms for take-over of Coal Harbour project were going on. Harbour Park Developments Ltd. (HPDL) purchased Coal Harbour Investment's holdings. Price was not disclosed. W & K, with about $4.8 million invested, said the price was satisfactory. September 22 Transfer from W & K to HPDL completed. President of HPDL was Graham Dawson of Dawson Construction; directors included Saxton and Saunders of Laurentide, Harold Foley of MacMillan Bloedel, later V-P of Bank of Montreal, James Lowden of Power Corp., H. Wert and W. Lowery. Project manager was to be R. MacKay of Laurentide. 2 k6 1966 February 12 Site preparation were under way and construction expected to begin March or April 1966. First phase of $16 million included two 27 storey buildings, one 31 storey build- ing, 45,000 sq. ft. of rental space, a theatre and a marine. 1967 April 12 West-End R.P.A. president S.G. Brown testified that HPDL was paying 1/8 of what other developers in the West End were paying for taxes (Provincial Court of Assessment.) Land value was assessed at $412,373 in 1967 compared with $311,260 in 1966, the difference due to fill work. HPDL bought land from Vancouver Tug for $6.80 p.s.f. while the assessment was $1.50 p.s.f. which implied a market value of approximately $3 p.s.f. (no date) Some time during 1967 HPDL sold 37% of its land to Marwest for $1.39 million, with the entire property having cost them only $1.26 million. 1968 February 20 New assessment figures were appealed by Donald Manning representing A.H. Harpain. Assessment was $1.6 million, but according to Manning should have been $8 million. Claimed the $955,280 assessment on the 6 acre Bayshore property also was too low. Court members were W.D. Kelly, J.P. Roberts, J. Ross Ker. May 30 Manning alleged that terms of the 1962 NHB lease should not have been used for assess- ment. HPDL represented by Liberal MP Allan Williams said the site could not be compared to other West End areas. June 5 Appraiser Allan Keenlyside considered the new $2 million assessment just. Claimed certain difficulties in assessing site. 2 k? 1969 March 7 Vancouver Central Ratepayers claim that Court of Assessment was biased termed foolish by member Ker. Spokesman Alex Watson claimed Ker had been assistant to federal cabinet minister R. Campney, also a director of HPDL. May 6 Four Seasons Hotels Ltd. announced $40 million hotel, apartment, and specialty store development. Lease given to FSH by Harbour Park Developments Ltd. Mayor Campbell asked for $50,000 performance bond. FSH president Sharp agreed, but claimed that it was highly irregular. Completion of first stage, 70% of total, guaranteed within 4 years of permit issuance date. August 12 August 28 West End and Downtown Ratepayers claimed that the Parks Board interested in purchasing area for small park. Technical Planning Board demanded changes to allow through-view to water, and public areas adjacent to the waterfront. Public meeting announced by City Council for August 28. Council passed motion allowing development on posting of $1 million performance bond. Sharp claimed bond unreasonable, but felt something could be worked out. First stage was to be $20 million. Briefs against the proposal were presented by: West End and Downtown Ratepayers Assoc. Community Planning Association Save Our Parkland Association 1. 2 . 3. 4. Vancouver Council of Women October 22 Corporation counsel R. Baker stated the present assessment of the land at $1 million. City Council reduced performance bond from $1 million to $200,000. Agreed to sell Gilford St. end in middle of project for $135,000. Gives go-ahead to prepare detailed plans. 1969 October 22 November 4 / November 18 November 22 December 2 December 3 2^8. Council rejected request from Parks Board for a meeting on the development. Rankin brought up the traffic issue for Georgia St. Parks Board chairman A. Livingstone called for a public hearing on the development November 7. Article on the issue appeared in The Sun, discussing costs and benefits of alternatives. City Council approved revised plans submitted by Four Seasons, thus permitting plans for final stage to be drawn up. Planner W. Graham claimed one of the 33- storey towers was too close to Georgia St. Alderman W. Hardwick proposed a grade separation for Georgia St. (underpass or overpass) with the cost to be assessed to Four Seasons Hotels. Parks Board Commissioner G. Puil learned that the unidentified major shareholder in HPDL was the daughter of Harold Foley. Puil stated the next problem to be the true identification of the owners of Four Seasons Hotels. Parks Board chairman Livingstone called for more public meetings. G. Puil failed in a bid to obtain the names of two large shareholders, whose shares were held in trust by portfolios. 1970 April 9 FSH vice president F. Eisen announced construction to begin mid-summer, or late summer. First stage to consist of 400 room hotel, 3 low-rise and 1 high rise apartment. Argument with City Council over responsibility for costs of filling in Denman St. end. 2k9. 1970 September 23 September 25 November 3 December 1 December 9 December 12 After conference with Sharp, Park Board chairman announces possibility of moving project back from the edge of the park. Also reported discussions with NHB vice chairman L.R. Talbot. City Council passed bylaw allowing compre- hensive development zoning, would not allow any further hostile brief. NDP candidates and supporters staged protest at Stanley Park entrance, demanding a halt to plans. Claimed business connections between the developers and members of the NPA and TEAM. Fisheries Minister Jack Davis stalled final approval of sub-leases to FSH, pending further talks with B.C. provincial cabinet ministers. Other federal ministers including Basford and Trudeau also expressed concern. Aldermanic candidate Bob Douglas protested project by camping out on the site. Vancouver lawyer A.B. Ferris claimed NHB can stall or block indefinitey the Four Seasons, since the original lease did not include hotels. Other grounds Included that Harbour Park Dev. was making substantial profits on the lease to FSH. 1971 January 7 City Council delayed action after receiving three letters of opposition from: 1. C. Douglas (West End Community Council) 2. Mrs. J.V. Clyne 3. Mrs. M. Pigott, (Community Arts Council, Community Planning Assoc., Save Our Parkland, West End Ratepayers, Vancouver Council of Women) January 8 Four Seasons Hotels planned mid-year start on the first stage of the development. 271- 1971 January 14 Grace Maclnnes (NDP Vancouver-Kingsway) raised the issue in Parliament, asking Transport Minister Jamieson about the NHB lease. Jamieson stated that no decision had as yet been made. January 19 Parks Board voted to ask City Council to block the Four Seasons Hotel. Assured of backing from West End Community Council. Mayor Campbell said the Board is wasting its time. February 2 February 3 February 10 February 19 March 17 Consumer Affairs Minister Basford had said the federal government did not intend to block the development by stalling the NHB lease. NHB member D.F. Taylor asked for a new independent appraisal of the land value of the water-lots. This was interpreted as a stall by the Province. Mayor Campbell approved meeting with Parks Board for February 16. Vancouver Carpenter's Union expressed opposition to the development (John Takach). Province questioned the financial agreements FSH and Harbour Park Developments Ltd. Parliament approved re-assessment of lease value, but did not specify assessor. Peter Rhodes and Associates of Don Mills, home of FSH Co., named to assess lease value. City Council sent telegram to Transport Minister Jamieson, backing the project, saying that no further public meetings were planned. Alderman Broome estimated cost of purchase for a park would be $5-6 million, did not disclose source of figure. 251. 1971 March 18 March 31 Puil's Save the Entrance to Stanley Park Committee were looking for appellant to take matter to court. City Council heard 27 briefs of opposition. Motion to hold plebiscite tabled. Paddy Neale (Vancouver and District Labour Councill opposed project. Objections of five basic types: 1. No new apartment zoned land was needed 2. Project a physical barrier to Stanley Park 3. Development too close to park 4. Area already densely populated 5. Traffic problems overwhelming April 1 April 6 April 7 April 15 NHB signed the leases, giving approval for the start of the project. Lease price of $ .15 p.s.f. was up $ .01 from the previous price. Parks Board and the Vancouver School Board called for a plebiscite. School Board's concern was with the high cost of land purchase for a new school required in the area as a result of the project. Paddy Neale urged Vancouver and District Labour Council to contribute cash to legal fight contesting the City bylaws approving FSH. MP's Ray Perrault (Lib.) and Grace Maclnnes (NDP) planned public meeting for discussions. Save Stanley Park Entrance Committee planned meeting and said it had begun a legal defence fund. Ron Basford announced a private poll of 42,000 households on the Four Seasons question. Reiterates the federal government would back the decision of the local municipal governments. 253 1971 May 4 May 5 / May 8 May 13 May 18 May 27 May 28 May 31 President of FSH rejected compromise calling it not equitable. Stated that he is not in favour of holding plebiscite. Anonymous donor offered $50,000 for a pool on the site if it is made into a park. Sharp offered to reduce the hotel by 200 rooms. Wanted the Parks Board in on any further negotiations. Negotiations between city representatives, Parks Board, and Sharp broke down. Parks Board wanted the entire block adjacent to Stanley Park left open. Sharp said the project would then go on as previously planned. City Council confirmed June 23 as plebiscite date, but no cost figures had as yet been determined. Outside consultants involved but there was no mention of who they were. Fotheringham said that Attorney-General Peterson would act as nominal plaintiff in a case testing the validity of rezoning bylaws 4065 and ammendments. George Murray was given the case for L.H.C. Phillips. Fotheringham related some of the inside political considerations with regard to the court action. Challenged bylaws stated to be as follows: Bylaw 4065 June 27, 1963 Bylaw 4183 July 6, 1965 Bylaw 4354 March 16, 1968 Bylaw 4562 September 22, 1970 Fencing torn down at All Seasons Park re-erected by labourers from Dawson Construction No eviction of those occupying the site was planned by FSH Co. Campbell labelled the park a breakdown of society. June 1 Original protest park became a campsite for transient youths. 25^. 1971 June 1 June 3 June 5 Parks Board suggested delay of plebiscite, until the pending court action was decided. Corp. counsel R. Baker claimed a further public hearing necessary for a scaled down development, but contradicted by Campbell and Adams. Project manager R. Mackay said that those occupying the site would be allowed to stay indefinitely. CNR Pension Fund to supply $14.35 of the $14 million required for first phase. Price of $9 million put on site by Council for plebiscite. Cunningham fc Rivard Appraisals put the value at $7.33 million, with Council adding $1.67 million for appropriation expenses. Donald Manning claimed city assessment at $3,211,784 and that this price was at the zoning category to be contested in cort. June 8 June 12 June 13 Mackay stated that when the time to act about the squatters came, they would act, and admitted that no action was being taken to avoid publicity. City hall announced that the annual average increase in taxes to purchase the site was $6.25. Donald Manning pointed out several discrepancies in the figures. Ron Basford said the NHB could not unreasonably withhold a permit to change land use of its lots. June 16 June 24 Aid. Hardwick suggested an alternative site at the old Denman Auditorium. 51.2% short of the 50% needed, voted against the development. Sharp and the City, in light of the results were planning to talk further about the possibility of scaling down the plans. Spokesman Bud Elsie commented on opponents of the project. 255 1971 June 30 July 9 July 10 FSH announced it would begin with its project in spite of the pending court case. Campbell and Adams denied statement by Corporation Counsel R. Baker that a scaled down version required further bylaw amendments and public hearings. FSH president Sharp announced plans to move hotel back 1/2 block, and cutback from 600 to 400 rooms. Parks Board chairman JS. Robertson called the move a terrific improvement. Parks Board members split over compromise. Paddy Neale of Vancouver and District Labour Council called it transparent public relations. Corp. Counsel Baker claimed scheme would July 13 July 13 July 14 July 23 July 30 not require a public hearing. Parks Board member Puil claimed Harbour Park Dev. guilty of less than honourable profiteering. HPD charged $ .75 p.s.f. to Four Seasons for property they were getting for $ .16 p.s.f. Province editorial called for start on project in absence of clear cut public opinion, MP Grace Maclnnes claimed Campbell mishandling the dealing with FSH Co. since there was a court action pending. Sun article discussed the feelings of squatters on the site, that the project was going ahead. Tenants close to the site complained about noise from the squatters. (Glassman Holdings Ltd.) August 4 Squatters on FS site warned about large fires by VFD. Put responsibility for action on FSH Co. 256- 1971 August 20 / August 22 September 15 October 7 November 12 November 17 Project moved 200 feet from park, compared to 180 ft. in the original proposal. Sun headline made it appear that the move was 200 ft. back further than the original plan. See previous editorial. Meeting at All Seasons Park with Rankin, Nigel Nixon (NDP), Don Manning, George Puil, son of Dan George. Protest was poorly attended due to the PNE. City Council approved new plan, did not require further public hearings. Planner W. Graham outlined the changes, stated the project to be of the type to be discouraged. Parks Board asked Transport Minister Jamieson to halt lease. Referred in letter to Jamieson, to a Council motion to deed the land back to federal government so it could be leased to FSH. Parks Board asked Fisheries Minister Davis to block project. Parks Board planned to take case to federal MP's. Puil gave data on costs of NHB lease. 1972 February 9 Fotheringham claimed issue killed by federal government. So Four Seasons was dead. But what of the future developments? 257. 2. FREEWAY PROPOSALS Note: Pre 1960 chronology not included. 1960 February 3 Aid. Bert Emery requested (in notice of motion) that city stop land acquisition and work on freeway through West End. Also called for a lifting of the freeze on West End properties so that normal development could proceed. His reasons: West End freeway wouldn't relieve Lions Gate approaches congestion; not financially practical. February 10 Downtown Business Assoc. urged establish- ment of a citizens committee to study ways to finance freeways for the Vancouver central business district. Reps to be from Board of Trade, Downtown Business Assoc.,West End Business Assoc., Community Arts Council, Ratepayers' Associations. Aid. H. Wilson urged formation of a committee of reeves and mayors of Greater Vancouver to study Bennett's "First Narrows Bridge Gift Act". All motions tabled pending report by Board of Administration on D.B.A. brief. February 17 City Council voted to ask provincial government to continue freeway studies for Greater Vancouver. Asked Gov't to reinstate Technical Committee for Metropolitan Highway Planning. Board of Administration reported back. Emery withdrew his motion. March 1 N.D. Lea, Vice-president Foundation of Canada Engineering - consultants for provincial highways warned West End Community Council that increased traffic congestion would keep business and commerce away from downtown. Came out in support of $340 million proposal. 258 1960 March 29 March 27 June 22 July 9 August 3 October 21 Frank Leighton (of Swan-Wooster Eng.) proposed to Parks Board a new 4 lane Narrows bridge and 8 lane freeway through Stanley Park and Lost Lagoon, to cost $18 million less than other three proposals. Highways Minister Gaglardi ordered feasibility study on financing proposed freeway system for Vancouver. At a meeting of council to discuss whether the district should be represented on the Metro Highway Planning Committee, North Vancouver District Council Reeve Frazer said $340 million freeway proposal not economically feasible. Town Planning Commission Meeting: Mr. Vaughan Birch (Director of Traffic Engineering) urged start on freeways in stages to prevent strangulation. At Vancouver city council meeting: Alderman Rathie's motion to evaluate Swan-Wooster proposal for English Bay causeway, was tabled pending a report from reinstated Technical Committee for Metropolitan Highway Planning on all proposals. The Technical Committee reported to city council that it expected to take 12 more months for final study of the four proposals. 1961 February 1 City council voted 6 to 2, to award Stanford Research Institute $115,000 for a 9 month study of ways to finance Vancouver freeway system*. Stanford officials would employ Wilbur Smith Engineering Consultants. *A11 councils to share cost of $115,000. February 7 City councils of North Vancouver and New Westminster refused to contribute their share. Didn't believe the expenditure necessary. 259- 1971 February 7 March 2 April 18 August 30 In. provincial legislature - Tom Bate (SC - Point Grey) opposed freeways for Vancouver. He considered automobiles in the city to be the real problem. City council meeting reconsidered Stanford Research study and wanted clarification of purpose of study. Burnaby city council approved its share of the Stanford Research Institute (SRI) grant on condition that the study's terms of reference be expanded to include all alternatives for freeway routings. Vancouver city council prepared to scrap plans for West End freeway. SRI study was put off until a study was made of rapid rail transit possibilities for area, by B.C. Research Council. September 13 City council voted to dispose of property that was to be used for the West End freeway. 1962 March 6 City council unanimously asked provincial government to restart SRI study at $115,000 and to share cost of study. Special session of council: city engineering experts reviewed traffic problems facing metropolitan area. Came up with two proposals: (1) building freeways with rapid transit operating on the freeways. (2) New Georgia Viaduct designed to fit in with east-west freeway. Results of BC Research Council study reported that express train transit not feasible. City council agreed that SRI study should go ahead. With a new frame of reference is 1959 report sound or not? Study alternate proposals and recommend methods of financing. March 19 In provincial legislature, Gaglardi stated that Vancouver didn't need freeways but could widen and improve a number of existing roads. 260 1971 June 30 City council special committee chaired by Halford Wilson proposed to postpone $340 million freeway system indefinitely and develop major streets to maximum capacity. ' 1963 April 21 Larry Smith and Co., consultants on downtown redevelopment, recommended to council a downtown waterfront expressway above CPR tracks. December 3 City council heard a presentation by Phillips, Barratt and Partners on new First Narrows Crossing. (This ran into strong opposition from Haggard, President West- End Community Council, Crawley, Grace McCarthy and George Puil.) 1964 September 2 October 7 October 8 October 22 Mayor Bill Rathie planned to ask federal government directly for aid in financing east-west freeway and new first narrows crossing. Freeways Report presented to 400 people at Queen Elizabeth Theatre that Vancouver needed a new network of freeways and bridges costing $345 million. Stage I: East-west freeway - $60 million Stage II: Freeway link from Georgia Viaduct to First Narrows along False Creek and through Stanley Park. (Note: this meant that SRI had accepted the Swan-Wooster "English Bay-Lagoon" proposal over the others as least expensive.) Stage III: North-south freeway along Arbutus. (Also in report: tunnel cost too high, rapid transit not feasible.) Much concern over funding of proposed freeway involving federal and provincial governments. Rathie and other Greater Vancouver mayors met with Gaglardi to try and arrive at a cost sharing formula for the freeway. 261- 1971 October 27 November 5 November 6 Bennett rejected Rathie's bid for provincial help. Interview with Gaglardi in Vancouver Times: provincial government would sponsor a consortium of private engineers to prepare detailed plans for both a bridge and approaches. Urban geographer Hardwick at a Vancouver Kiwannis Club meeting said: 1. Stanford report was based on out of date statistics. 2. Report failed to say how property values would be affected. 3. Who would provide 50,000 parking spaces downtown. 4. Who would widen downtown streets. 5. Terms of reference were too narrow. November 12 November 13 November 17 November 20 November 24 Rathie met with Purchasing Agents Assoc. of B.C. "Expressways are facts of life and cannot be dismissed from Vancouver's future." At city council meeting Rathie disclosed confidential negotiations to get $20 million in federal aid for the proposed east-west freeway. Bennett said "Vancouver doesn't need east- west freeway". The Premier said freeways should not run through cities unless absolutely necessary. Vancouver Town Planning Commission approved in principle, the $45 million east-west freeway into downtown area. (Note: this was the SRI proposal not Rathie's Trans- Canada connection scheme.1 Bennett backed down on his proposal to provide $50,000 per mont"h for parking space for the "park and ride" experiment when confronted by Rathie to put his plan into effect. 262. 1965 January 14 B.C. Automobile Assoc. President Earl Adams brief to provincial cabinet: proposed to implement basic freeway proposals in the '59 and '64 reports, with special emphasis on early action on a third crossing of Burrard Inlet. Also called for provincial government to initiate action on Vancouver freeways. January 22 At annual meeting of Greater Vancouver Auto Dealers' Assoc., George Lindsay retiring Superintendent of Motor Vehicles said it was time the Auto Dealers Assoc. took a stand on transportation needs for the lower mainland. March 17 Gaglardi refused to promise financial aid for east-west freeway. October 15 City council Civic Development Committee endorsed Burrard Inlet Water-front Freeway. 1. Would be part of Trans-Canada Highway. 2. Killed Swan-Wooster's Ocean way lagoon plan. 3. Half of $120 million cost would be paid by federal government. 1966 March 24 Bennett announced provincial government prepared to pay one third of cost of any major Vancouver throughway construction if Vancouver and Ottawa would match its contribution. Up to city to get Ottawa to pay its portion. (no date) During year, Council hired traffic consultants Parsons, Brinkerhoff, Quade and Douglas (PBQD) of San Francisco; Architects Erickson & Massey and Engineers Phillips, Barratt, Hillier, Jones and Partners, to make detailed studies on plans for downtown sections of system. Cost of studies $175,000, studies not complete. March 25 Mayor Rathie proposed NHB should pay federal government's one third share of expressway. 263- 1971 March 30 City Commissioner Gerald Sutton-Brown announced to council that city is working on two new highway plans involving Georgia Viaduct. 1. Hook Viaduct with waterfront freeway, or 2. develop city street system through urban renewal program. Labour Minister Jack Nicholson said that federal government through CMHC would supply help if Viaduct was planned in connection with urban renewal projects. July 7 At B.C. Society of Landscape Architects Conference, Dr. A. Grey (Professor of Planning, University of Washington), advised Vancouver freeway planners to learn from mistakes made in Seattle freeways. 1967 June 1 June 10 June 13 June 15 Quinby (of PBQD) gave first glimpse of freeway plan to council. Council voted in favour of freeway east along waterfront to foot of Carrall and along Carrall to new Georgia Viaduct interchange. Campaign to save Chinatown began. Initiated by L. Killam, W.W. Wood, Kovak. Supported by: Harry Rankin, D.B.A., Business Owners and Managers Assoc., Chinese Merchants Assoc., Townsite Committee, Community Planning Assoc.,Community Arts Council, Visitors Bureau. They demanded a public hearing. Mayor T. Campbell invited Chinese Benevolent Assoc. to special council meeting to discuss aspects of elevated freeway. Campbell said council wanted to hear all sides of the issue and asked for freeway officials to provide more information. City council halted PBQD et al $212,000 study of freeways and decided to send issue to full scale public hearing to be held on July 5. Terms of reference were too narrow. Quinby (of PBQD) repeatedly replied that council queries were outside his terms of reference. 26k, 1967 June 17 July 6 City council learned mid-way through the Thursday morning session that the National Harbours Board, B.C. Hydro and Project 200 Properties Ltd., were exhibiting strong influence as represent- atives of a transportation steering committee on freeway studies (the ones being performed by PBQD et al). City council were to lift restrictions on its freeway consultants and gave them a "free hand" to study all "potential routes". At July 5 meeting, 17 delegations had appeared to submit briefs on the freeway scheme. July 12 October 17 October 18 City council agreed to widen freeway study to include a possible Gore Street alignment as well as Carrall St. City council approved Carrall Street connection after Gore Street alternative study concluded that Carrall is best. No cost-sharing arrangements with senior governments had been made except for the First Narrows Crossing and Waterfront Expressway. U.B.C. Schools of Architecture and Planning students and Chinese Community participated in protest in Chinatown over council's vote to accept Carrall St. connection of freeway. Hardwick criticized due process in council's decision making. "Arbitrary" assumption made by city officials in the terms of reference presented to Chinatown Freeway Consultants had committeed council to a city-wide freeway system. No public debate nor any consideration of social and economic implications. October 20 Protest demonstration by UBC and SFU students outside Hotel Vancouver where Transport Minister Hellyer was holding press conference. 265- 1 9 7 1 October 21 October 25 October 28 October 31 Hellyer dashed city hopes for federal freeway money. Chinese community were publicly adverse to freeway proposal. At Rotary Club luncheon, architect William Leithead, President of Board of Trade said city council should consult community before making major planning decisions such as Chinatown freeway route. Protest at the public library against False Creek policy. Inside Dr. D.R. Higbee, American urban planner called for combination park, residential and industrial use in False Creek area. He also warned Canadians against using the U.S. as an example for urban planning... especially regarding freeways. Alderman Rankin admitted mistake in backing Chinatown freeway route in a meeting in Chinese Benevolent Assoc. Hall called by Asked council Community Planning Assoc. to rescind October 17 decision. Aid. Bird recommended a study to study the present study. Bob Williams (NDP-MLA Vancouver East) charged senior civic officials were to blame for council's decision on freeway route because they did not supply council with sufficient information. November 1 November 4 City council voted to hold a public meeting "to meet criticism and explain background of freeway decisions up to now." Moved by Aid. Broome. Opposed were Campbell, Sweeney and Graham. Sun newspaper article by George Dobie noted that two of the main freeway routes in the '58-'59 report had not been considered by San Francisco freeway consultants. Their terms of reference were too narrow in this sense. 266. 1965 November 14 November 15 November 21 November 22 November 23 November 29 December 7 Statement by Victor J. Parker, executive director of Lower Mainland Regional Planning Board that a new Georgia viaduct and an overall transportation plan for Greater Vancouver Regional District were needed. Council agreed to pay $18,000 after explanation from Quinby (PBQD). Hardwick spoke to A.I.B.C. criticized city council decision making. Vancouver Council of Churches asked council to take more account of human factors in planning freeways. At a public meeting in council chambers attended by 500 people, the consortium of consultants presented its briefs. Meeting came close to a riot and was finally adjourned and postponed to later date. City council announced a second public meeting to be held at Eric Hamber School A motion to clarify the city's commitment to freeway routes by Bird and Wilson was to be debated at next week's meeting. Public meeting at Eric Hamber (7:30 p.m. - 12:00 a.m.). Chairman Peter Oberlander resigned from Town Planning Commission because he totally disagreed with planning process carried out by council. 1968 January 6 City officials recommended continuation of freeway study. Some aldermen called for abandonment of present study. Chinatown spokeman gave report to city council, January 10 Council rescinded decision of Carrall St. alignment, also gave go ahead to engineers for $10 million Georgia Viaduct. On vote to rescind: against - Graham, Sweeney. 267- 1971 January 19 February 22 July 3 September 18 John Lecky, President of Downtown Business Assoc. at 48th annual meeting of B.C. Automobile Dealers Assoc. proposed quick start on downtown re- developments including transportation. Premier Bennett told legislature that a 3rd crossing would be well marked to show that the province was not contributing to any toll structure. City council transportation committee (Campbell, Sweeney, Broome, Adams and Wilson, presented at closed city hall meeting, a waterfront bi-pass freeway to link a new Burrard Inlet crossing to East End. "Freeway depends heavily on a proposed deal with National Harbours Board, CPR (to give free right-of-way) and funding from federal and provincial governments. Freeway to be connected to Project 200," Campbell authorized $12,500 to N.D. Lea and Assoc. for further freeway studies. (Campbell took matter in own hands since there had been no council meeting that week.) Lea & Assoc. had already been retained by Swan-Wooster to study traffic in downtown penninsula. Since council rescinded decision on Carrall, it had given PBQD $200,000 to determine exact tie-in between waterfront freeway, Carrall link and new Viaduct. Swan-Wooster was then working on new design for 3rd crossing to be completed by middle of 1973. Aid. Broome headed council committee for freeway proposals. Terms of reference of N.D. Lea and Assoc. study: review all available data, appraise various solutions for transportation systems - mass transit, Highway 401, Deas Thruway, Downtown link from proposed Brockton Point crossing. (The implication being that Brockton Point crossing would go ahead.) 268- 1971 September 19 September 23 October 3 October 4 October 9 October 15 October 23 October 25 November 5 November 14 Reaction against Campbell's decision: Rankin and Alsbury made public statements, Los Angeles Mayor Yorty speaking to "English-speaking Union's Grand Jubilee Ball" said Vancouver should start right now on freeways. Lea presented at closed Report from N.D, meeting. At meeting at Sir Charles Tupper Secondary School (sponsored by Citizens Council on Civic Development) Oberlander (chaired meeting) called for an overall land use plan to guide freeway links. Chairman of council's special committee on rapid transit, Halford Wilson assured a public hearing would be held before firaL decisions on any freeway route, Formal approval of council given to Swan- Wooster to study five downtown freeway plans as extensions of the south end of new crossing planned at First Narrows. Opposed to study: Rankin, Atherton, Linnell. At city council meeting, Grant Messer, Chairman of Metro Toronto planning commission urged freeway system. At Vancouver Real Estate Board meeting, Allan Voorhees (U.S. Transportation Planner from Washington, D.C.) said that "freeway system no cure for rush-hour nightmare." At Civic Affairs Committee of Vancouver Board of Trade - Frank Leighton, from Swan- Wooster - C.B.A., wanted to know what the people thought of freeway proposals. City council received $250,000 freeway report from PBQD. Brief from B.C. Automobile Assoc. to provincial legislature called for a freeway system and new crossing. 2 69 1968 November 20 At city council meeting: $90 million - 8 land freeway presented by N.D. Lea and Assoc. to connect downtown with Highway 401 along Great Northern railway line and eventually connect with new crossing at first narrows. November 22 Mayor Campbell opposed Chinatown freeway link and told Chinese community so. December 5 Meeting sponsored by Chinese Freemasons heard a lecture by Foon Sien on city development procedure. Meeting was attende by several aldermen and eleven "civic election candidates". December 18 City council voted to tell Swan-Wooster that the crossing should be broadly designed to tie-in with the N.D. Lea freeway proposal. 1969 March 25 March 28 Swan-Wooster - C.B.A. engineers, urged council to decide on freeway route by May 15 from six proposed schemes. Criteria should be emphasis on movement of people instead of vehicles; no freeways downtown but use tunnels; no separation of people from Burrard waterfront; highspeed traffic not allowed on waterfront freeway; remove from downtown area max. traffic via bypass routes; cost $100 million. In a 3 hour presentation to council, Swan- Wooster recommended their "favorite"scheme: Thurlow tunnel to North Shore of False Creek to Georgia Viaduct, which also included a distributor under Carrall St. No action was taken by council at this time. March 28 J.D. Mooney, B.C. Manager of Marathon Realty said fast traffic flow through their proposed fcPR False Creek development would be detrimental, but a 4 lane distributor was "generally acceptable". May 1 At meeting of Central Council of Ratepayers, Alderman Rankin said freeways cost too much money and strings were attached: must hook up with 401 freeway to get provincial funds. 270 1969 May 2 D.B.A. presented a brief to city council (prepared at request of council) covering Swan-Wooster - C.B.A. report. Proposed that development of rapid transit and new arterial routes should be financed regionally; urged city to examine the total transportation need in all its facets, with total cost clearly stated and explained; recommended Thurlow Tunnel bypass; stated that top priority should be a "first class east- west, north-south and trans-inlet rapid transit..."; recommended a waterfront distributor to connect to east-west freeway east of Main; favoured Deadman Island causeway over Brockton Point for crossing; criticized Swan-Wooster treatment of the waterfront as "too massive, disruptive and costly." Vancouver Real Estate Board favoured tunnel under Carrall Street as approach route only. Community Arts Council criticized plans for Georgia Viaduct as being part of a freeway in downtown area. May 6 June 5 June 24 July 11 Brief to city council by Community Arts Council: Rapid transit must have first priority. West End Community Council formed committee to fight proposed $340 million freeway system. Architectural firm of Birmingham and Wood said waterfront approach route (favoured by Campbell) would destroy restoration plans for Chinatown and Gastown. City Planner (Paul Roer) quit in frustration. "Whole administrative atmosphere at city hall is wrong.'" December 6 City officials recommended that council delay request to provincial and federal governments re financial help for east- west freeway pending feasibility study of Great Northern Cut route. 271- 1971 January 28 At council meeting Alferman Hardwick notified council that at the next meeting he would move to recommend Malkin approach to Georgia Viaduct instead of the currently accepted Union-Prior approach, in response to SPOTA's fears that this would eventually became a permanent part of an east-west freeway system. i.e. it wouldn't just be "temporary" as council had suggested (until GNR cut is completed). November 27 At SPEC meeting, Tony Gargrave (NDP Mayoralty cadidate) said that downtown Vancouver should be closed to autos, once rapid transit is available. December 1 At campaign meeting, Alderman Phillips said city should consider restricting traffic on proposed east-west freeway link-up to 4 lanes instead of 6. 1971 January 23 Premier Bennett and Mayor Campbell announced that crossing would not be built under the financial formula proposed in the Swan- Wooster - CBA report which had suggested: $50.8 million as provincial share vs. Bennett's $27 million promise; and $21.4 million as Vancouver's share for the approaches but Tom Campbell said "no way" could Vancouver afford this. Bennett: "My understanding... is that they are not putting up a nickel. They are just lending money as a mortgage with high interest rates, while we are making an outright grant." January 23 February 2 In a Sun survey of 200 residents favoured rapid transit into downtown Vancouver. Council meeting: Leonard Narod of Phillips, Barratt and Partners presented to council various alignments for east-west connection from Viaduct to 401. Said cost estimates and a specific proposal would be ready by June. Commented Narod: "We need to bring at least one freeway route into downtown because the freeway now bypasses downtown." 272- 1971 March 1 June 25 July 2 July 28 August 5 August 9 A public meeting in West Vancouver organized by Capilano College Community Service program gave North Shore people an opportunity to speak on the proposal for a 3rd crossing. Approx. 100 attended, including Warnett Kennedy, Frank Leighton, Harry Rankin, Aid. Don Bell (North Vancouver district) and R.D. Plomner (who had written a criticism of the crossing proposal earlier). Most of those who spoke were against either tunnel or bridge. At a meeting, council did not make a decision on approach routes to the new Burrard Inlet crossing because Rankin had a deciding vote and was against both the West End tunnel approach scheme and the waterfront approach scheme. Transport Minister Don Jamieson met representatives of Richmond at airport to discuss the federal governments planned $25 million toll-bridge approach to airport and Sea Island. Council joined Richmond organization in a campaign to avoid tolls on proposed new Hudson Street bridge and Sea Island. MP Barry Mather said he represented a group called the Free Airport Access Committee opposed to tolls which was composed of 14 airport trade unions, Richmond Chamber of Commerce, Sea Island Ratepayers and Richmond Municipal Council. Liberal MP Tom Goode (Burnaby-Richmond) said that the airport bridge wouldn't carry tolls, after meeting with federal government "team" and Don Jamieson. Open-air meeting of the Citizen's Committee for Public Transit said that "east-side of Vancouver will not be crossed by a $66 million freeway for 10-15 years." Committee established to discuss proposals for freeway link-up between Highway 401 and Georgia Viaduct. 273- 1971 August 11 A letter from Highways Minister Wesley Black submitted to council, answered a brief presented to the Highways Dept. in April by Aid. Harry Rankin and Aid. Halford Wilson which had asked for completion of the link between 401 along / Cassiar and the 2nd Narrows bridge. "Freeway is not warranted at this time." August 25 Phillips, Barratt, Hillier, Jones and Partners submitted their voluminous report to council. (Study cost: $250,000). Their recommendation was that a permanent freeway alignment between the Georgia Viaduct and Highway 401 run up Malkin to the Great Northern Railway cut to connect with Grandview Highway and then the freeway but general consensus was "that there isn't much hope that the controversial $63.5 million east-west freeway will be built." Main reason: no money. August 25 City council urged the Greater Vancouver Regional District to make rapid transit a top transportation priority in the Metro area. September 10 Allan Kelly (GVRG board) addressed public meeting in Vancouver Art School, sponsored by Schol Board's Department of Adult Education and the Citizen's Council on Civic Development. Discussed improvement of bus facilities and discouragement of increasing auto restrictions in city core. September 14 Downtown Business Assoc. sent letter to council asking that the $63.5 million east- west freeway be dropped, at least until a rapid transit had been set up. At a panel discussion organized by the Roads and Transportation Assoc. of Canada, Rankin called for halt to urban freeway plans in direct opposition to a suggestion that only more roads can solve city transportation problems. A freeway solution had been advocated the previous day by N.D. Lea. September 15 1971 September 16 Report prepared by a committee of the Professional Planners Institute said that inadequate information existed for governments to make an informed decision on whether the proposed new First Narrows crossing should be built. Concern was expressed about prior planning involving the need for another crossing, the investi- gation of alternatives to a new crossing, and the investigation of the impacts and effects of another crossing and its alternatives. September 23 Traffic Commission reported that Georgia Viaduct opening scheduled for November 7 would be delayed. It was 10 years since city ratepayers voted 67.4% in favour of spending $10 million to replace old Georgia Viaduct. By November 1969, the estimated cost of construction and property acquisition had risen by $1.17 million. Construction had started on March 12, 1969. October 5 John Lecky, chairman of the Town Planning Commission addressed the Public Transit Conference and pushed for rapid transit under similar organizations as Toronto Transit Commission. December North Shore Transportation Committee appeared before North Vancouver council to criticize the proposed crossing's auto- orientated purposes. 275. 3. STRATHCONA URBAN RENEWAL SCHEMES 1963 April 1 Chinese group had prepared plans for redevelopment of a full city block in / Chinatown. Vancouver's Chinese charged that public housing being constructed was cold and institutional. April 20 Vancouver Chinatown Development Association revealed plans for individual oriental style houses with moon-gate windows, pagoda roofs, temples, rock gardens, tea gardens and bamboo. A second Chinese group condemned the plan as being anti-social aid commercial. October 2 Central Mortgage and Housing Corp. rejected the CDA proposal of 4-plexes with pagoda roofs to be jointly owned. City planning department proposed high rise apartments. Objections to high rise were voiced by Aid. Marianne Linnell and supported by Warnett Kennedy, architect. Solution seen not in arbitrary formula that applied to all of Chinatown. 1964 January 9 Sixty Chinese families were likely to be displaced into apartments or outside the neighbourhood. The Chinatown Redevelopment Association representing a group of Chinese homeowners secured financing of a trust company to buy back one block of city-owned land from which homes had been razed. They hired Arthur Mudry, a former city planning official to design the kind of homes they wanted to live in. The president of CDA said its members were enthusiastic about Mudry's plan. However, the Technical Planning Board said it wouldn't recommend subdividing the block into many small parcels because "this sort of tight subdividing will re-create the conditions that caused the blight in the first place." City Hall passed it on to federal and provincial governments. 276. 1967 (no date) Buildings have been torn down in area bounded by Main, Hastings, Union and Glen. One public housing project has been built, another under construction. Public housing has been offered all 2,000 displaced but fewer than 50% have accepted. Many buy houses in other sections of the city, though a surprising number are staying close to where they've lived for years. May Three parcels of expropriated land (Pender, Keefer, Gore and Jackson) were sold to Orient Importers for $122,801. They proposed a $1.4 million 128 unit row housing project. K. Tong Au, lawyer, said his 8 clients bid $56,000 for one of the parcels and proposed to build 16 units on it. Aid. Broome said Planning Director, Bill Graham should be instructed in future to require bidders to bid parcel by parcel so council can fairly compare bids. October 24 Mayor Tom Campbell promised to investigate whether Chinatown could be allowed to expand eastward across Main St. Chinese leaders asked if the 300 and possibly 400 blocks on Pender could be rezoned from multiple to commercial to allow for future Chinatown expansion; also promised to check whether the controversial Carrall Street elevated freeway could be built on the west instead of the east side of the street. 1968 July 17 October October 22 City council turned down bid by displaced Chinatown residents to buy a redevelopment housing tract in their neighbourhood. Acquisition and clearance of 424 properties in 22 blocks displacing 3000 people was approved by City Council. City council discussed Strathcona urban renewal scheme. Major Bruce Halsey of the Salvation Army expressed concern that a Mr. & Mrs. Wong cannot get a mortgage because they are too old. Shirley Chan said: "The city has a responsibility to my parents." 2 77. 1968 October 29 Federal government announced approval of $265,325 contribution towards an urban renewal project in Vancouver. Installation of services and works between Heatley and Clark on about 47 acres. Sixteen acres in the area were being cleared and some residential properties removed to provide sites for new industries. Two streets realigned and widened to improve traffic circulation. November 6 Municipal Affairs Minister Dan Campbell said the tortuous procedure of municipal governments' request for public housing, CMHC approval, preparation of preliminary architects' sketches, their approval, by the municipality, subsequent approval by the province, preparation of working drawings and finally tender call could take upwards of four years. Brief prepared by City council for the Task Force on Housing and Urban Development expressed strong need for federal involvement in transportation costs. November 8 Transport Minister He1Iyer heard an eloquent plea from Shirley Chan who said her home at 658 Keefer would be demolished under the Strathcona urban renewal scheme. "My parents are too old to get another mortgage. Where are they going to live? Besides I have grown up in the area and I love it. How can you repay me for moving away?" 1969 January 20 Strathcona Property Owners and Tenants Association (formed December 1968) in briefs to city council, the provincial and federal governments asked for: 1. Right for local residents to continue living in Strathcona. 2. A fair exchange value if homes are expropriated by the city. 3. Priority for local people who wish to build on certain blocks 4. Chance for small businesses in the area. 278. 1969 March 15 May 12 May 17 May 21 June 24 Planning Department recommended that no immediate action be taken on the requested review of the Strathcona urban renewal project until more information on the federal government's position, now uncertain, on the project was available. SPOTA produced a brief which asked that: 1. Strathcona be used as an experimental project in housing renovation; 2. Property values be unfrozen, but without an immediate tax increase; 3.' Money available for demolition be used as grant-loans for homeowners to rehabilitate housing; 4. $1000 rehab, grant, plus low-interest loans of up to 80% total cost of rebuilding be provided; 5. Property be purchased at fair market price; 6. Property be exchanged for title to an appropriate unit in condominium housing; 7. Housing be made available for tenants forced out under the redevelopment. Chinese Benevolent Association (Jack Lee, co-chairman) warned that if proposed transporta- tion routes under review were accepted, investment capital to expand and improve Vancouver's Chinatown would not be forth- coming. Chinatown was hemmed in on three sides: by Hastings commercial district; by urban renewal development to the east; and by downtown. South side only way to expand. That land would be used by the proposed traffic arteries. Renewal Stages 1 and 2 had cleared out 11 blocks and forced 2000 to relocate. City survey indicated 253 buildings are capable of improvement. Birmingham and Wood architects said that a waterfront freeway could destroy restoration plans for Gastown and Chinatown. Would draw graveyard line between old and new. Carrall alignment would likely destroy plans for the Chinese pagoda and probably for the restoration of Pioneer Square and other landmarks. 2 79 1969 July 4 Gastown beautification program approved by city council. Phase One: Redevelopment of Hastings St., Gastown and Chinatown into popular shopping areas. Phase Two: Rezoning, saving old buildings, developing parking facilities and alleviating social disintegration of the district. Meeting recommended implementation of Phase One. Pres. David Lesser, of IDEAS (Improvement of Downtown East Areas Society) stated that immediate action must be taken on redevelopment scheme; derelicts, alcoholics, drug addicts and other "undesirables" must be cleared out of the area. Aldermen Rankin and Linnell emphasized that rehabili- tation of derelicts, alleviation of social problems be of prime concern. August 7 Municipal Affairs Minister Dan Campbell told SPOTA that urban renewal should emphasize single-family dwellings instead of large housing projects. "Urban renewal in Vancouver has been put in partnership with housing. This is not a good marriage." Social Credit MLA candidates Herb Capozzi and Evan Wolfe pledged support for SPOTA. Meeting and tour of the area was part of the agenda for the opening day of the Capozzi-Wolfe election campaign. August 8 Federal government would not participate in city's Strathcona area urban renewal project unless the residents there are directly involved. Federal government supports idea of rehabilitation instead of demolition. Andras turned down a planner's request for a financial commitment to permit a revised study of the area. Terms of reference for such a study would have to be drawn up with the three levels of the government and the people involved. 280- 1971 August 14 September 9 September 20 September 29 Federal government urban renewal funds suspended for scheme preparation. Destruction of the existing area for redevelopment would create "deep social problems" for the largely Chinese community. Tom Campbell said cancellation could mean layoffs for city staff. Spending had to be curtailed until some overall policy was devised. Strathcona Working Committee formed. A delegation of Strathcona residents told Education Minister Brothers that further delay of a $900,000 school-community centre complex at 500 E. Pender would encourage "crime, drug addiction and alcoholism". School Board has been waiting since April for government approval. Community members pointed out that Strathcona was a virtual island bordered by the railway tracks - east; Skid Road - west; harbor - north; and Great Northern Railway yards on the south. Legal aid, counselling, senior citizens' programming, health and welfare services, youth services, drop-in centres for teenagers and young people, and the equivalent of eight classrooms were planned for the school-community centre complex. City council approved a motion to appoint Maurice Egan, Director of Social Planning, as the city official to work out a new area rehabilitation scheme with residents and government officials: Planning department had taken too physical an approach in the past. 1970 April October 3 A Strathcona pilot research study involving 40 homes in the area Keefer, Georgia, Princess and Heatley included the participation of residents in the formulation of rehabilitation plans. A "plan-in" at Lord Strathcona Elementary School attended by adults, children and members of city council and staff exhibited 600 drawings by children. 281- 1971 November 23 In their report, Birmingham and Wood, architects recommended: 1. A series of grants and loans (low- interest) for rehabilitation of living units; 2. Establishment of a rehabilitation unit within the community; 3. Safeguards to ensure residents are not dislocated by the program or victimized by land speculation as a result of rehab.; 4. A comprehensive approach to the problems of the whole area; 5. All funding of projects to be directly through a steering committee - comprised of residents, governments, and professional staff. December 11 Construction of Strathcona's long awaited community centre complex is expected to start by mid-February. A joint project of the school board, parks board and the provincial government. 1971 January 13 January 26 January 28 February 4 The Birmingham and Wood study presented city council. City planning department's urban renewal report outlines five year spending program of $131.7 million. Included $40.2 million for rehabilitation and new construction. Andras told the Province monday he didn't know anything about the Vancouver scheme. Leungs (local real estate operators) to build $1.7 million 3-storey air-conditioned oriental shopping mall, 2 underground parking levels, 2 elevators, an oriental food shopping supermarket to be called the Mandarin Trade Centre at the corner of Keefer and Main. SPOTA met city council's planning and develop- ment committee in first of series of meetings expected to formulate a redevelopment policy for run-down areas of Vancouver. 282. 1965 February 5 March 12 March 23 March 25 March 31 July 5 July August 11 October 8 Harry Con of SPOTA told city council "we want to improve our community but to proceed we need your assistance and continued support. You can't fail us at this crucial stage. We ask you to give your staff and senior government the leadership they require to implement this program." Hardwick cited lack of city council leadership and unenthusiastic civic officials as main reasons Vancouver is in danger of losing nearly $5 million in urban renewal funds. NPA reluctant to give out money to residents of just one section of the city if the grant cannot be made on a city-wide bases. Bird proposed grant amount to $2,250 - $1,500 from the federal government,$750 from the province and $750 from the city in the form of an interest-free loan. Andras did not agree. Andras'telegram stated that $2.5 million for individual rehab, grants had been approved in principle for allocation to Strathcona residents. Final approval hinges on speedy agreement being reached between Federal/provincial/municipal governments and SPOTA. City council proposed the city support a combination of grants and loans of up to $3000 max. to property owners to improve their homes. 25% interest-free loans by the city; grants by federal and provincial governments. Developers Rogers and Killam announced restor- ation of 1 West Pender, 2 floor restaurant and 3 floor office space. Changed name of Strathcona Working Committee to Strathcona Rehabilitation Committee. Grant-loans for property owners given go ahead by city council. Interest-free grant-loans, repayable over five years. Basford announces Strathcona rehab, program $2250 grants; $1500 from federal; $750 from provincial; $750 loan from city.


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