Year 3: completion of 3rd multiple dwelling residential building (58 units) and 40 single family residential homes
Year 4: completion of 4th multiple dwelling residential building (58 units) and 40 single family residential homes
Years 5 to 7: completion of 5th , 6th and 7th multiple dwelling residential building (70 units each)
Year 9: completion of hotel
Year 10: completion of commercial buildings
As noted in the Background, this development has received approval for a tax increment grant of 70% of the increase in municipal property taxes. FHC has advised that six of the seven multiple dwelling buildings will be constructed using LEED design. Subject to confirmation the eligible tax increment grant for those buildings can now be increased to 100%. While this will increase the municipal tax grant for this portion of development, the total overall grant will not exceed total eligible costs.
Based upon the revised build out schedule the following estimates have been made in regards to the financial incentives which could be made available to assist with the development:
Reduction of Development Charges | $5,462,016 |
Tax Assistance Program/BFTIP (Years 1-3) | $2,022,891 |
Brownfield Rehabilitation Grants (standard construction) (Years 4-8) | $5,034,486 |
Total | $12,519,393 |
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In total the anticipated site remediation and servicing costs of $12.5 million will be fully recovered through the approved financial incentives. Under the revised development schedule Administration estimates that the total DC reduction will likely be closer to 52% or $5.4 million as opposed to the 60% which is available and anticipates there would be no further property tax increase grants or incentives provided following Year 8 of the development. The City would then be entitled to retain DCs applicable on future phases and 100% of increased municipal property tax on an annual basis. The annual municipal increase in property tax is amount is estimated to be $2,139,902 once all development is complete.