TORONTO, July 13 (Reuters) – Canadian municipalities reeling from a pandemic-driven hit to revenues are facing an added blow from surging liability insurance costs, forcing them to raise property taxes or even cut services for residents.
Although J&S is not unique to municipal policies, the perception of governments as deep-pocketed has driven outsized payouts, said Pete Karageorgos, consumer and industry relations director at the Insurance Bureau of Canada.
Amazon on Tuesday said it submitted its proposed development plans for the next phase of construction at its new headquarters in Arlington, Virginia. In addition to more traditional office buildings and retail spaces, the company’s plans include a unique, double helix-inspired building that will “feature two walkable paths of landscaped terrain that will spiral up the outside of the building,” Amazon said in a blog post.
The suit focuses on the 30% fee Google charges developers for selling digital goods and services via the Play Store. As of July 1, that fee dropped to 15% until developers hit $1 million in revenue for the year. The new lawsuit, reported earlier by Politico, mirrors one filed last year against Google by Epic Games, developer of the popular battle royale game Fortnite.
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While cities elsewhere, including in the United States, have also faced higher costs, there has been an outsized impact on Canadian municipalities due to a small pool of insurers, smaller populations and the legal requirement for municipalities to have joint and several liability (J&S) coverage, according to DBRS Morningstar.
The Arlington site is known as PenPlace and sits just outside of Washington DC. It’ll include shops and restaurants, as well as more than 2.5 acres of public use space that’ll feature an amphitheater, dog park and forest grove, Amazon said.
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“We don’t impose the same restrictions as other mobile operating systems do,” Wilson White, Google’s senior director of public policy, wrote in a blog post. “So, it’s strange that a group of state attorneys general chose to file a lawsuit attacking a system that provides more openness and choice than others.”
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The Helix was designed by NBBJ, the same architecture firm that designed the “Spheres” at Amazon’s Seattle campus. It’ll sit alongside three new 22-story buildings that’ll provide office space for the 25,000 employees Amazon plans to accommodate at HQ2. The company said the Helix will host an artist-in-residence program and be open to the public on some weekends.
“Any unanticipated increase in costs can come as a surprise,” although municipalities do have some funds for contingencies, said Travis Shaw, senior vice-president for public finance at DBRS Morningstar.
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