Saint John’s growth-related services are among those bracing for impacts due to the COVID-19 pandemic.
The city is predicting revenue losses of between $5 million and $12 million this year, depending on how long the outbreak lasts.
Jacqueline Hamilton, the commissioner of growth and community development services, outlined some of the potential impacts during Thursday’s growth committee meeting.
Hamilton said they may have to suspend some “non-life safety enforcement” activity, reducing funding for grants and civic events, and delay implementation of the neighbourhood plan.
She said they expect revenue from permits, inspections and rezoning applications will also take a hit due to reduced construction activity.
“We don’t know the range of that, but we’ve assumed scenarios from 10 to 50 per cent reduction,” said Hamilton.
Development Projections
Despite the expected reduction in construction activity, staff remain “cautiously optimistic” about this year’s development activity.
The city’s One-Stop Development Shop, which handles all development-related approvals and permits, closed on March 17 when the city moved to essential services.
It resumed offering virtual services electronically and by phone on March 30 to facilitate development and construction in the city.
Amy Poffenroth, the deputy commissioner of growth and community development services, said they issued 13 building permits during the first two weeks of April, down from 25 permits during the same period last year.
“The value of those two weeks in April of 2019 was $2.9 million, during our last two weeks is $475,000. Quite a difference,” she said.
But Poffenroth said two projects worth a combined $2.5 million are in the queue and being reviewed.
She said while overall building permits are down, it seems large projects are still proceeding.
“We are watching smaller projects, homeowner type of projects, small business, smaller-scale projects definitely have slowed down in the last two weeks, but having said that, it is early days,” said Poffenroth, adding they will continue to get data on a weekly basis.
Economic Impact Of COVID-19
Phil Ouellette, the deputy commissioner of growth and community planning, said while they do not have the full picture just yet, the economic impact of COVID-19 on the city is significant.
Ouellette said the federal and provincial governments have established large-scale relief programs, but local governments still have an important role to play in the economic recovery plan.
He pointed to coordination and strategy development among growth partners, payment deferral programs, and trying to maintain as much economic activity as possible.
“This committee will play a key advisory role to support our community’s ongoing and evolving economic recovery efforts,” said Ouellette.
Mayor Don Darling thanked the city’s economic development agencies for their work in navigating through this outbreak.
“As if all the other challenges we already had 60 days ago weren’t enough, let’s just have a tsunami called COVID-19 come and hit us,” said Darling.
“All kidding aside, we know we are resilient, we are scrappy, we are innovative, we punch above our weight class, we’re full of potential.”
