payments would cease and approval to participate in the program would be rescinded. Administration recommend requiring a minimum 25% of the building gross floor area be allocated to Start Up Central in order to maintain eligibility under the Small Business Investment Grant Program.
Summary of Potential Financial Incentives
The applicant proposes to spend a total of $1.2M on the project. The current assessment value for the property is $273,000 and the annual property taxes are $6,748 with the municipal share being $4,503. City staff anticipate the post-development assessment value to be $800,000. Total property taxes on the increased assessment value would be $34,034 — an increase of $27,285. The post-development annual municipal tax levy would be $26,197 — an increase of $21,690.
Based on the percentage of the gross floor area within the building allocated to Start Up Central (i.e. approximately 50%) the annual grant payment would equal $10,845 or $108,450 over the lifespan of the 10-year grant program. This would offset approximately 9% of the eligible investment proposed by Kadri Family Holdings Ltd. The percentage of floor area dedicated to Start Up Central will be verified following construction and prior to the first grant payment. Should the percentage of gross floor area allocated to Start Up Central decrease to 25% the annual grant payment would be $5,422 or a total of $54,225 over the 10 year lifespan of the grant program. Should it fall below 25% the grant payments would cease.
| Figure 1: Estimated Grant Calculation - 1567 Ouellette Ave | ||||
|---|---|---|---|---|
| Year of Grant | Pre-Development Municipal Tax Levy | Estimated Post-DevelopmentMunicipal Tax Levy | Estimated Value of Grant | Adjusted for 50% of eligible GFA |
| 1 | $4,504 | $26,194 | $21,690 | $10,845 |
| 2 | $4,504 | $26,194 | $21,690 | $10,845 |
| 3 | $4,504 | $26,194 | $21,690 | $10,845 |
| 4 | $4,504 | $26,194 | $21,690 | $10,845 |
| 5 | $4,504 | $26,194 | $21,690 | $10,845 |
| 6 | $4,504 | $26,194 | $21,690 | $10,845 |
| 7 | $4,504 | $26,194 | $21,690 | $10,845 |
| 8 | $4,504 | $26,194 | $21,690 | $10,845 |
| 9 | $4,504 | $26,194 | $21,690 | $10,845 |
| 10 | $4,504 | $26,194 | $21,690 | $10,845 |
| Totsl | $45,040 | $261,941 | $216,901 | $108,451 |
Details
| Current Property Value Assessment | $273,000 | |
| Current Municipal Tax Levy | $4,504 | |
| Estimated Post-Development Property Value Assessment | $800,000 | |
| Estimated Post-Development Municipal Tax Levy | $26,194 | |
| Estimated Eligible Investment Costs | $1,200,000 | |
| Percentage of Eligible Investment Offset by Grant | 9.04% |
the Small Business Investment Grant program does not cancel the