City council will consider approving 10-year property tax exemptions for developments in the downtown core tonight.
A report by city staff on the proposed exemption is recommending the city develop a bylaw to put the exemptions in place.
The proposal breaks the downtown into two areas.
Area A includes downtown from Queensway to Vancouver Street and Patricia Boulevard to First Avenue. It also includes Third Avenue from Winnipeg Street to Queensway.
Area B runs from Fourth Avenue to 11th Avenue, and between Winnipeg Street to Vancouver Street.
Under the proposed exemptions in Area A, multifamily residential and commercial developments worth $50,000 or more would be exempt from property taxes on the development for 10 years. Projects valued over $500,000 would also receive a tax exemption on 100 per cent of the land value for residential developments and 50 per cent of the land value for commercial developments.
Exterior building improvements valued at $20,000 and more would be 100 per cent exempt from property taxes on the improvement for 10 years.
In Area B, only residential developments would be eligible for tax exemptions and only on the development itself, not on the value of the land.
LEED certified projects valued at $500,000 or more in both areas would receive a 100 per cent tax exemption on the development.
In addition, developers would be able to receive the tax exemption in an up-front payment
provided by Northern Development Initiative Trust. The Trust would then be paid back over the period of the 10-year property tax exemption.
On a $5 million apartment condo development, that tax exemption could total over $500,000 over 10 years. On a $5 million commercial building, the tax exemption over 10 years would be valued at over $1.1 million.
The city conducted public consultation on the proposed exemptions from April 11 to May 20 and received only two letters in response -both generally in support.
Investgo Ventures president Gordon Bliss said the tax exemption would benefit the condominium project his company plans to develop.
"This incentive proposed by the city is very innovative and would definitely help our decision making process in proceeding with our project," Bliss wrote. "The incentive program will help Investgo to offer a more competitive price range in selling our
condominium suites."
City resident Charlene Ross said the incentives are good, but what downtown lacks is appeal.
"All other downtown cores have a reason to go there," Ross wrote. "Right now, we have really decent restaurants, but an entertainment venue - or something that gets people out on the streets - would really help. We need some kind of marketing or advertising going out to developers out there that we have opportunity worth investing in."
Council will consider the incentive plan at tonight's regularly-scheduled meeting.
