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Merger mania â a historical perspective

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Montrealers denounce megacity plan 2:15
Halifax area amalgamation debate 1:50
Charest, Bourque debate Montreal merger 2:37
1996: Toronto megacity legislation introduced 1:54
1997: Protesters fight Toronto megacity 2:04
Nielsen report: Megacity mergers 4:53
Professor Andrew Sancton: mega mergers 3:16
Megacity megamistakes (2 minute version)

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Date: Sun. Feb. 25 2001 12:55 AM ET

During the past 100 years, amalgamation has been seen by many politicians as a cure-all for anything that ails a city.

Whether itâs increasing crime, high operating costs or rising taxes, creating a large urban centre has been billed as a âquick fix. However, the reality is that creating a larger city has often resulted in higher operating costs, which often forces city officials to increase taxes.

Below is a summary of the larger mega-mergers in North America and their success or failure.

1854 - PHILADELPHIA

The political elite spearheaded the amalgamation of the county and its municipalities. It was hoped that by combining services such as law enforcement crime would be controlled and order restored.

While proponents of the amalgamation promised it would result in numerous benefits to the city, it in fact only improved policing. However, the bigger city also led to more corruption and in the end did little to stop Philadelphiaâs decline.

1898 â NEW YORK

In all, 15 cities and towns and 11 villages in five separate counties were merged to form the new megacity with a population of 3.5 million.

The merger was spearheaded by âbig businessâ which believed New Yorkâs economic growth was not keeping pace with other key urban centres such as Chicago. It was thought that a single municipal government, which had control over New York harbour and its surrounding territory, could promote the development of shipping, railroads and related facilities, thereby helping both merchants and property owners.

Proponents of the plan argued that cities like Brooklyn would end up with lower taxes after they pocketed a share of Manhattanâs tax base. Anti-consolidationists in Brooklyn argued their city would lose local control and over time its identity.

In a referendum in 1894, the majority of citizens voted in favour of amalgamation.

In the ten years following consolidation, the newly merged city of New York did not realize any true costs savings. Between 1898 and 1903 the cityâs budget increased from $78.4 million to $98.6 million, an increase of more than $20 million. By the mid-1970s the city was bankrupt.

1965 - LAVAL

Fourteen municipalities merged to form the new city of Laval. It was the most comprehensive merger since New York.

It was hoped that amalgamation would prevent land speculation and the uncontrolled development of valuable farmland. However, it was actually the Agricultural Land Preservation Act, introduced by the Partis Quebecois, and slower economic growth that prevented urban scrawl.

To date, there has been no evidence that the Laval amalgamation has saved money or improved the cityâs infrastructure.

1972 - WINNIPEG

It was hoped the amalgamation of the city of Winnipeg and its surrounding suburbs into one âunicityâ would revitalize the downtown core. The theory was that by equalizing taxes and services, the relatively well off suburbs would pump more money into the central city.

However, the merger resulted in the exact opposite. By 1980 it had become clear that the unicity structure, with its many suburban councillors and large tax base, had facilitated the development of a suburban infrastructure. Meanwhile, the inner city continued to decline.

1996 - HALIFAX

The four municipalities of Halifax, Dartmouth, Bedford and Halifax County were forced to amalgamate by the province of Nova Scotia. The theory was that the newly formed megacity would result in lower administrative costs while services increased.

The projected cost of amalgamation was $10 million. The final cost of the merger was actually $26 million. And while modest operational costs were expected none have materialized.

Five years later, the amalgamation is still not popular with residents. A recent survey conducted in 1999 found that 66 per cent of Haligonians were opposed to the amalgamation. Rural constituents claim they are paying for services that are only available in the city. In addition, the enforcement of a number of urban bylaws, which are not appropriate for a rural setting, has angered many residents outside of the city centre.

The province currently defends amalgamation on the basis that it promotes economic development. Yet to date there has been no proof that businesses would prefer locating in a large city as opposed to a smaller municipality.

1998 - TORONTO

The regional municipality of Metropolitan Toronto and its constituent local municipalities, East York, Etobicoke, North York, Scarborough, Toronto and York amalgamated to form the new megacity of Toronto.

It was the largest amalgamation in North America since New York in 1898. The Progressive Conservative government led by Premier Mike Harris was the driving force behind the merger. Harris promised the new megacity would lower taxes, reduce red tape, eliminate duplication, simplify relations between the province and the city and reduce complex grant options.

When the Toronto megacity plan was first announced, the minister of municipal affairs promised that after three years the amalgamation would save the city $300 million per year. That estimate was reduced $240 million a year later, and then lowered again to $150 million by the summer of 1997. By 2001, projected savings from the amalgamation had disappeared. Currently the city estimates an annual shortfall of at least $300 million.

Politically the new city has worked far better than anyone expected. However, based on the provincial governmentâs own measure of success, lower taxes and budget savings the merger has been a complete failure.



2001 â OTTAWA

The second largest municipal amalgamation in Canada involved the merger of municipalities in the region of Ottawa-Carleton into a megacity of 750,000 people.

Proponents of the merger promised that after the third year the new city will realize savings of $86.5 million per year â in perpetuity. The majority of the savings will be recouped due to the elimination of more than 1,100 positions from the municipal payroll as well as the reduction of elected representatives from 84 to 22. Proponents of the amalgamation have also promised residents that taxes will be lowered as the cityâs operating costs are reduced.

However, on Feb. 22, 2001, Ottawaâs treasurer announced that taxes would increase by $130 to $150 for the average household.

2002 â MONTREAL

On Dec. 2001, Bill 170 was passed to pave the way for Montreal to become a megacity in 2002. Mayor Pierre Bourqueâs plan to amalgamate the 28 constituents within the MUC is quite similar to Toronto.

Bourqueâs plan would see the creation of one overwhelmingly dominant municipality within a city region. Opponents of the plan believe this would only further strain regional co-operation. And many believe the complexities and expenses of the Toronto amalgamation pale in comparison to the proposed Montreal amalgamation.

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