Risk Analysis:

There is little risk associated with the approval of the CIP applications in principle. Staff resources are required for the upfront administration of the grant programs, finalization of the legal agreements, and making application to the Province under the BFTIP.

Should Council refuse the request for financial incentives or approve an insufficient amount of incentives there is a risk of the project not moving forward. Should the clean up and redevelopment not occur the property would remain vacant and continue to negatively affect the surrounding properties and natural environment.

Approval to participate in the Tax Assistance Program is a prerequisite for participation in the Provincial Brownfield Financial Tax Incentive Program during the first three years of the project. Refusing the request to participate in this program would preclude the leverage of this Provincial tax cancellation.

Financial Matters:

Based on the proposed redevelopment plan submitted by the applicant, administration estimates the post-development property value assessment to be $23,172,000 (the current assessed value is $972,000). The post-development total annual tax levy is estimated to be $441,736, which is a significant increase from the current total (predevelopment) annual levy of $44,490. The property owner has received a vacancy tax rebate for the past 13 years (e.g. 2018 vacancy tax rebate was $13,582).

The following is a summary of the maximum potential total grant value based on standard construction methods:

The total grant value would offset an estimated 8.6% of the total project budget (i.e. $34,792,798) and 64% of the eligible costs under the Brownfield Redevelopment CIP (i.e. $4,700,416).