Vacant and derelict buildings are properties that are unoccupied, often deteriorating over time due to a lack of maintenance and active use. In many communities, vacant and derelict commercial buildings are not uncommon. The reasons or situations that lead to vacant buildings are varied and complex.
Perceptions
For residents, these buildings can be unsightly and project a negative image of the community. To the business community, they can represent lost economic opportunity and a negative impact on their own business functions. As a tourism destination, they can negatively impact the overall visitor experience and impression of the community.
To a local government, these structures can represent a public safety issue and impact public reputation and the overall appearance of the community.
What can a municipality do?
If the property taxes are being paid, the building does not pose a public safety, and the property is not unsightly, its owner has the right to choose if their building is active or not. In some circumstances even if the buildings are noncompliant, if they are the subject of third-party legal proceedings, case law has shown courts will not generally authorize a municipality to exercise enforcement provisions until such matters are settled.
Land ownership provides certain rights and privileges for owners, this includes keeping a building or property, selling or renting it, or transferring it to another party. Property rights define the legal ownership of resources and how they can be used at a provincial and federal level. Municipal governments are not given the authority to override these rights simply because the municipality or its citizens are dissatisfied with its use or non-use.
While there are often suggestions as to how the Town of Golden might address this issue, these options are often not practical for specifically addressing vacant commercial buildings:
- The Provincial Speculation and Vacancy Tax (SVT): This tax must be authorized by the Province of BC, and currently only applies to residential properties. This tax is designed to turn vacant homes into housing. It typically applies to larger municipalities (the smallest with a population of over 9,000, more than double the size of Golden) where in vacant homes are greater in scope and affect the housing market significantly. While the province has recently expanded the program to include 13 new municipalities, Golden remains off the list.
- Expropriation: While municipalities have the power to expropriate property, meaning the purchase of property at market value without the consent of the owner, it can be controversial and costly. Local governments can only use this power if it is to perform its powers, duties and functions, for example, to build critical infrastructure for the greater public need. This is a regulated process, dictated by the Community Charter and Local Government Act. In addition to purchasing a property at market value, the municipality must also cover all legal costs to acquire the property, and the cost of compensation to the property owner as ruled by a court.
- Remedial Action Requirement Order: A local government can issue a Remedial Action Requirement Order on a property under certain conditions. Remedial action requirements only allow municipalities to address properties that are deemed a nuisance or pose significant health, and safety hazards to the public. This process can be costly due to associated legal fees and takes time and due process.
Almost every municipality experiences a level of vacant commercial buildings. The tools to address them are limited when the property owners comply with various legislative controls. However, it is in the greater community’s interest to reactivate these properties, and local governments will continue to explore the ways and means to address them.