A proposed amendment to the Downtown Incentives Program Partnering Agreement between the city and the Northern Development Initiatives Trust is going before city council on Monday.
The deal would see NDIT provide $1.8 million in new money over six years to support incentives for new housing downtown, but puts tight timelines for the city to use the money or lose it.
"The city desires that Northern Development provide new funds that will be used by the city in accordance with the Housing Contribution Program as governed by the partnering agreement to encourage the development of 252 new residential units..." city general manager of planning and development Ian Wells wrote in a report to council. "The proposed amending agreement increases the grant funding for new residential development in the downtown which is a key component of downtown revitalization. "
The agreement provides a $10,000 per unit subsidy to developers who build new homes in the downtown. According to Wells' report, there is $720,000 remaining in the fund.
The proposed agreement, which was approved by NDIT's board on Oct. 19, sets out time limits for the use of the money.
Under the proposed deal, the city must return to NDIT any portion of the $720,000 of original money not disbursed by June 2020.
In addition, the city would be required to return any unused portion of the $1.8 million of new money by June 2020 if 50 new units of housing have not been "substantially completed," and 25 or more units are not under construction.
The city would also agree to not request any other NDIT grants or funding until 2024 and commit to fund construction of an underground parkade for a residential development by June 2020, or surrender the unused portion of the new money.
On Monday night, city council will also be considering a partnership with A&T Development Inc. which would see the city build an underground parkade and provide subsidized parking for a proposed four-phase, 151-unit condo complex in the 600-block of George Street.
The proposed condo development would be eligible for the $10,000 per unit subsidy, for a total of $1.51 million - approximately double the current remaining funds available for the grant.
The expected cost of the parkade, with 288 underground parking stalls and 64 surface stalls, is $10 million.
