City staff aren't too keen on offering property tax exemptions to light industrial land owners.
During tonight's meeting, council will consider a request from the Prince George Global Logistics Park to offer tax incentives for developers setting up shot in the lands west of the airport.
The 1,200 hectares located west of the Prince George Airport were identified as the light industrial land base for the city and access to the area will be available once the construction of Boundary Road is complete this fall.
"We believe that a tax incentive programme for this major light industrial park would help to attract new investment to the community and would be a clear indication that this city is 'Open for Business,'" said a letter from developer Harry Backlin on behalf of owner Henry Rempel.
Backlin draws specific attention to a 2009 bylaw established in Abbotsford which grants a revitalization tax exemption to developments on airport land owned by that city for projects that cost more than $100,000. The exemptions last for a 10-year term with the amount of tax paid increasing each year.
Developer Harry Backlin brought the Abbotsford example to the attention of council and Initiatives Prince George year ago, though is only now making a formal request.
In a May 2012 interview about the issue, Mayor Shari Green said tax exemption programs are more appropriate for areas having trouble generating economic development.
"So, I think this land was ripe for opportunity with this resource economy booming all around us and I'm not sure we've seen a demonstrated hardship case around this land that would warrant intervention by the city with a tax exemption program," she said.
In her report to council which recommends not supporting the request, corporate services director Kathleen Soltis echoes some of those sentiments.
"Given the economic growth being experienced in Prince George and throughout Northern B.C., industrial lands are increasingly in demand thus creating the conditions for success," Soltis wrote. In addition, she points out that the lots at the logistics park haven't yet been developed, so the market conditions haven't been properly tested.
Further, in the case of Abbotsford the bylaw applies to city-owned land, not private property as is the case in Prince George and the airport also receives lease income from tenants, according to Solits' report.
"Given that the Prince George Global Logistics Park is primarily owned by one land owner, administration also does not support the proposal to exempt this area from taxes to the exclusion of other light industrial areas," wrote Soltis.
Baseball bonus
Representatives from the World Baseball Challenge will address council tonight to ask for financial assistance for the 2013 tournament. The group is looking for approval of $10,000 to help pay for the cost of bleachers.
