Understanding the benefits of new residential developments such as THE POINT in Queens County.
On December 13th 2022, local Queens County Builders, Rumclo Developments Ltd. presented to the Region of Queens Council our intention to build a vibrant new residential subdivision. Located in the Mount Pleasant neighborhood of Liverpool, THE POINT will be a dynamic and modern new community made up of 124- 2 and 3 bedroom homes.
As locals of the area, we want to see our community prosper and we strongly believe our proposed development will be the first step to growth.
So, what are the benefits of new residential developments to Queens County?
A- Housing
The province is currently experiencing a major housing crisis and the shortage of available homes is especially hard felt in Queens County. The local population is often being forced to relocate to areas such as Bridgewater where housing development is steadily on the rise.
Queens General Hospital is also facing a problem finding available homes for its new staff and the RCMP struggles with the same issue. And even our largest private sector employer Global Empire Corporation call center, is wondering where their employees will find housing.
“We receive a lot of inquiries asking us for more information about THE POINT. We’ve heard some very heartfelt and sad stories from our beloved community members who have lived here their entire lives but now have no place to go. So, they end up moving away even though they would prefer to stay in the town they know and love.” -Graham van der Pas
THE POINT will provide homes for up to 408 new and local residents. It will offer homes to locals wanting to downsize, new home buyers looking for an affordable first home, families that want to upgrade from apartment living, local professionals and people who want to leave the expensive and busy big city life for something quieter and more affordable.
B- Growth in our local economy
New residents will bring business to our region. They will be new patrons for our existing businesses, and some will start businesses of their own. This will increase local business revenues, create new job opportunities and provide an added tax revenue for the Municipality. The potential for new dynamic hospitality businesses such as restaurants, pubs and hotels will increase tourism and make it more desirable for visitors to stay longer. If they stay longer, they spend more money here again benefiting our local businesses. Our multiple empty commercial units may finally fill up and new commercial units will be created to accommodate new retail stores and services reducing the need to travel out of town. This will keep local spending within our own region instead of giving it to neighboring counties.
In addition, during construction, THE POINT will provide countless labour and skilled trades jobs as well as source materials and equipment from local suppliers and vendors such as Home Hardware and McPhersons. To name but a few.
C- Real Estate
There is a common misconception that the increase in home prices across the province is driven by an influx of out of province migrants. Although this is certainly a contributor it is not the root of the problem. The fact is that Nova scotia as a province needs to grow. And therefore, we need people to come here from across the country to help grow the province’s economy as a whole. As part of the Tim Houston Government Population Growth Strategy, the province plans to double it’s population by 2060. To hit the 2 million target the province will have to welcome 25000 new residents each year. Statistically the vast majority of interprovincial migrants settle in the HRM area to be close to the jobs that Halifax has in abundance. As a result, home prices in the HRM are steadily on the rise. But in areas such as Queens County the increase in real estate prices is currently driven more by a low inventory of available units and the lack of comparables. Increasing the inventory will stabilize the market in general and therefore prices will begin to normalize.
That said, an increase in real estate prices is also a benefit to current homeowners. The ability to sell your home for a profit is a no brainer as long as there is enough inventory available to have options to upgrade.
D- Increase to Municipal Tax Revenue.
In addition to an increase in local spending and new business tax revenue, THE POINT will increase annual Municipal Tax Revenue. It goes without saying that the addition of 124 homes will bring a significant increase to property tax revenue generating well over $500,000 annually. This added tax revenue will make it easier for the County to upgrade roads, infrastructure, schools and community resources and assets. It will also reduce the potential for local tax increases.
E- Volunteers
The more people we have, the more volunteers be available to help in our much needed not for profit sectors such as Child Care, Senior Care, Parks and Rec. and Emergency Services.
F- Medical Staff
Along with the housing crisis we are also currently facing a province wide shortage in medical staff. Dr. Al Doucet – Chairman of Queens County General Hospital has expressed great concern about available housing for new staff. If housing isn’t available for potential new medical professionals in our region, then the only other real solution is to live in neighboring Lunenburg County in towns such as Bridgewater where housing is more available and new developments are being built. How long will they commute to Liverpool before they decide to take a job at South Shore General instead? The more local medical staff that we have the shorter wait times become, the easier it will be to see a doctor locally and reduce the need to travel out of town to get much needed medical attention.
G- Affordable housing options
Building affordable housing and rental units is no easy feat for any developer. Since COVID, supply chain disruption and inflation have contributed to an exponential increase in the cost of building materials and material inventory. Therefore, an already challenging endeavour to build affordable housing has become even more difficult. To realize affordable housing projects and rental units takes Government grant money, Municipal assistance, and a considerable out of packet expense for Developers. Re-coup of investment on affordable housing and rental units is long-term and does not have a high profit margin if any at all. As a general rule of thumb, most Developers don’t start building until they have pre-sold at least 70% of their units.
That said, we at Rumclo are committed to finding a solution. The realization of developments such as THE POINT, will be a steppingstone to other developments in the area. The ability to re-invest in much needed affordable units as well as rental units will be made easier with the success of the first. Agreements can and should be made between Developer and Municipality to ensure a certain commitment to affordable options in the region.
Rumclo Developments is currently working on designing a rental only, low-rise apartment building block. We hope to offer this as an option for those who want to live at THE POINT but are not able to buy a home. This apartment block will be added as a last phase of the project. We are also currently pursuing other potential lots and building sites for future development which can include affordable and rental options.
In conclusion, Queens County needs to grow. As local developers we see this need everyday first hand and we want to help our community prosper. Building homes will help our community to grow physically, economically, and socially. The Need for housing is now.
RUMCLO DEVELOPMENTS LTD.