Planning hopes changes will boost development
(CNS): Although increases in planning fees passed by government earlier this year have been criticized officials are hoping that changes to the law to allow some fees to be paid on completion of the projects rather than during the process will boost development. One of the recent amendments made to the Development and Planning Law will take effect in the first quarter of 2011 and give developers additional time to boost cash flows from construction sales. Haroon Pandohie, Director of Planning in the Ministry of Finance said the initiative “would be welcomed by the development sector as it gives people more time to generate funds from sales prior to having to pay these infrastructure fees.”
He said that the planning department plays a major role in the development of business in the country so the policies and procedures that are put in place provide a framework to ensure that economic growth is stimulated and maintained.
Another change which is being well received by the construction sector is the reduction in the time-frame required to gain Certificates of Occupancies. Just last week the premier announced that these certificate are now a routine process that no longer require the Director of Planning’s signature. The task is now delegated to the Chief Building Control Officer and Assistant Building Control Officers.
Chairman of the Contractors Association, Rayal Bodden, said CCA was delighted with this decision to make it a routine process. “Time is money and the CCA believes this will speed up the process of completing a project and will thereby help to reduce construction costs. The Development industry is Cayman’s third largest industry and the Cayman Contractors Association is here to serve the community by promoting changes to existing policies and procedures that make the industry more efficient,” he said.
The planning law amendments were broadly welcomed when they were changed this year though the fee increases were a notable exception. The decision to allow ten stories along Seven Mile Beach was also greeted with a mixed response. The first building that will pass the current seven story limit in the area will be the Watercolours development on Seven Mile Beach which will be nine stories high when it’s finished.
Category: Business
Just more evidence that we need to get away from this idea that the construction ‘industry’ is somehow a ‘pillar of our economy’. It is, by its very nature, unsustainable, requiring a constant churn to produce any economic activity. We have over-developed our human resources in this ‘industry’. Let us identify and pursue other commercial activities (medical tourism, colleges for overseas students, domiciling of computer software companies, etc.) that, while they will naturally entail construction, utilise renewable resources (people) and so contribute a continuous flow of foreign income, rather than chasing a development-based model that is clearly broken and cannot be sustained in the long term. Construction should exist to support other industries, not as an end in itself.
Finally, finally the eyes of some people are being opened!
You are so correct.
Our government and many in the construction / real estate sectors believe that "BIGGER IS BETTER".
No it is not.
We have finite borders, overbuilding is a disaster and that is what is occuring here.
Now for all of our Islands’ people to open their eyes.
Yah, because more condos is exactly what we need right now.
The deferment of payment of the major planning fees i.e. infrastructure, affordable housing, etc. at the time of sale of each unit has been welcomed by those in the development industry, a couple of our clients who are mid-level developers are now prepared to move forward with the architectural plans for their developments.
I want to thank Premier Bush for implementing this idea as it allows small firms like mine to have a continuation of business throughout the normal slow down for professional services during the Christmas period and into the beginning of the New Year, which usually lasts through the month of February, and especially during these slow economical times.
Development is a major factor/part of our economy and every possible solution inclusive of short, mid and long term has to be thought-out and planned to ensure the continuation of business and ultimately the success of our economy. I as well as many others look forward to solutions such as this in the future. Thank you.
So how are you going to enforce the fee payment AFTER the project was done? Are you aware how many developers have received planning approval based on certain stipulations, the stipulations were simply ignored and nobody could enforce them afterwards!
It is so scary to think how we are amending laws left, right and center withouth any consideration or foresight for 25 years down the road.
I really wonder what anybody is going to do once everything on Island is concreted – what are they blaming the economic downfall on then?
SOOOOOOO many times it has been proven now that the more we have developed, the more tourism has dwindled away………
The fee payment can be enforced by ensuring that it is paid to the Planning Dept. and then verified by the Lands & Survey Dept. prior to transferring of title of the unit(s) to the purchaser(s).
Final fee payment to government would be tied to a CO (Certificate of Completion / Occupancy). Without one a legal transfer of property title cannot take place for mortgage purposes or ownership. The building also cannot be fully energize by CUC without a CO.