Myths and Misconceptions
HCDs stop development.
This is not the case. HCDs encourage and manage compatible development. In fact, the HCD study area is within the boundary of the Town's Economic Development Community Improvement Plan which is designed to attract major investment and development.
HCD properties are frozen in time and cannot be changed.
This is not the case. All properties require maintenance and repairs, and HCD properties are no different. The applications for HCD alterations or demolitions do not prohibit changes but rather are there to ensure that changes are compatible within the context of the HCD guidelines and policies.
HCD's control alterations to the interior space in buildings.
This is not the case as stipulated in Section 42(1) & (2.1) of the OHA. If, however, a property individually designated under Part IV of the OHA is located in an HCD, interior heritage attribute alterations on that property are controlled under the provisions of Part IV, Section 33(1). With that exception, heritage applications for the renovation or adaptive reuse of commercial and residential interiors are not required. This is critically important in commercial areas where retail spaces are frequently renovated or adaptively reused.
HCD designation controls the type of use for designated properties.
This is not the case. It is other instruments, such as Official Plans and zoning by-laws, that regulate use so that, for example, industrial, commercial, institutional, and residential uses are restricted to certain areas of a municipality. A HCD has nothing to do with the type of use.
HCDs lower the market value of properties.
This is not the case. Canadian and U.S. studies indicate that heritage district status tends to accelerate property value increases during periods of rising prices, and sustains values during recessions. There is no evidence that designation reduces the market value of heritage properties. For example, the results of a study by the Heritage Resources Centre, University of Waterloo titled “Heritage Conservation Districts Work! Phases 1 and 2” indicate that market value of properties in an HCD are not adversely affected by designation. The executive summary of Phase 2 includes the following conclusions: (i) “Real estate values in Heritage Conservation Districts generally rise more consistently than surrounding areas”; and (ii) “Residents' thoughts about real estate show an understanding of what is happening in their districts, and a majority thought the value increased.”
HCDs interfere with property rights.
It is true that HCDs regulate changes to the exterior of buildings and landscapes but this is no different than regulations such as those in building codes, fire codes, property standard by-laws, conservation authority regulations and zoning by-laws.
HCD properties are more expensive to insure.
It is true that some insurance companies will not insure designated heritage properties or, alternatively, they will provide insurance but with a high premium to account for the potential replacement cost. There are, however, insurance companies that will insure designated heritage properties at reasonable rates. Education of insurance company actuaries is needed so they understand that if a designated heritage building is damaged, it is not a requirement under heritage legislation that the replacement is an exact replica, especially if the damage is catastrophic.