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Tax exemption proposed for airport logistics park

Prince George developer Harry Backlin wants to see a property tax exemption to businesses that set up shop at the Prince George Global Logistics Park next to the airport.

Prince George developer Harry Backlin wants to see a property tax exemption to businesses that set up shop at the Prince George Global Logistics Park next to the airport.

Backlin said it is one of the last touches he is seeking from the city before putting the lots up for sale this summer on behalf of the site's owner, Henry Rempel.

Not only is there an exemption in place for Prince George's downtown, but Backlin said he's found 26 other municipalities in B.C. with exemptions for industrial and commercial development.

"If it's good for 26 cities, why isn't it good for Prince George?" Backlin said.

Specifically, Backlin is favouring an exemption used to draw business to Abbotsford International Airport. There, the property taxes a business must pay rise from zero to 100 per cent over 10 years.

"It's an incremental tax incentive program," Backlin said.

The city will come out a winner, he argued, because the warehouses and other types of businesses attracted to the airport will generate jobs, increase Prince George's population and therefore, the amount of taxes collected from residential property.

"It's going to bring employment into town, it's going to bring people into town, more houses are going to be bought," Backlin said.

Backlin said he's taken his pitch to city council members and airport and economic development officials.

However, Mayor Shari Green is less than sold, saying tax exemption programs are more appropriate for areas having trouble generating economic development.

In contrast to the downtown, Green said the airport lands are a brand new development that have already seen millions of dollars of taxpayers money sunk into them, in addition to the millions Rempel has contributed.

"And it was done so because the business case was there," Green said. "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."

Initiatives Prince George acting chief executive officer Heather Oland said a discussion on land tax incentives is premature. Prince George Airport spokesperson Lindsay Cotter said the airport has not taken a position on Backlin's proposal.

The Prince George Airport Authority hopes to have in operation by July a fuel storage and pumping system capable of serving up to six jumbo jets a day. Airport director of operations Cuyler Green has said YXS is in discussions with three aircraft carriers about using the facility, jostling for a spot on the circumpolar route between Asia and North America.

Abbotsford International Airport business development manager Jean-Paul Laube said the exemption was instrumental in drawing small terminal catering to privately-owned jets to the airport as well as a handful of smaller businesses.

"Especially in the Lower Mainland, it's a necessary element when you're trying to compete against other municipalities," Laube said.

Since 2008, tax exemptions have been granted for $540,000 worth of improvements to downtown property in Prince George.