| Figure 1: Estimated Grant Calculation - 309 Ellis St E | |||
|---|---|---|---|
| Year of Grant | Pre-Development Municipal Tax Levy | Estimated Post-Development Municipal Tax Levy | Estimated Value of Grant |
| 1 | $137,647 | $191,232 | $53,585 |
| 2 | $137,647 | $191,232 | $53,585 |
| 3 | $137,647 | $191,232 | $53,585 |
| 4 | $137,647 | $191,232 | $53,585 |
| 5 | $137,647 | $191,232 | $53,585 |
| 6 | $137,647 | $191,232 | $53,585 |
| 7 | $137,647 | $191,232 | $53,585 |
| 8 | $137,647 | $191,232 | $53,585 |
| 9 | $137,647 | $191,232 | $53,585 |
| 10 | $137,647 | $191,232 | $53,585 |
| Total | $1,376,467 | $1,912,317 | $535,850 |
- Details Current Property Value Assessment $2,877,000
- Current Municipal Tax Levy $137,647
- Estimated Post-Development Property Value Assessment $3,997,000
- Estimated Post-Development Municipal Tax Levy $191,232
- Estimated Eligible Investment Costs $3,200,000
- Percentage of Eligible Investment Offset by Grant 16.75%
Because the Business Retention and Expansion Grant Program does not cancel taxes, the applicant must pay the full amount of property taxes annually and will subsequently receive a grant for the difference between the pre and post-development municipal taxes. The City will retain the amount of pre-development (base) municipal taxes throughout the lifespan of the grant program, however will be foregoing any incremental property taxes which could otherwise be used to offset future budget pressures.
CONSULTATIONS:
The Economic Revitalization CIP was subject to extensive stakeholder and public consultation as part of the approval process, including two public open houses, a statutory public meeting of Council and circulation among internal City staff and the Province.
Planning staff have consulted with the applicant prior to accepting the application for the Business Development Grant Program. Staff from the Planning, Finance, and Legal departments were consulted in the preparation of this report.