| Figure 1: Estimated Grant Calculation - 3355 Munich Court | ||||
|---|---|---|---|---|
| Year of Grant | Pre-Development Municipal Tax Levy | Estimated Post-DevelopmentMunicipal Tax Levy | Estimated Value of Grant | Adjusted for 35% of eligible GFA |
| 1 | $140,845 | $373,266 | $232,421 | $81,347 |
| 2 | $140,845 | $373,266 | $232,421 | $81,347 |
| 3 | $140,845 | $373,266 | $232,421 | $81,347 |
| 4 | $140,845 | $373,266 | $232,421 | $81,347 |
| 5 | $140,845 | $373,266 | $232,421 | $81,347 |
| 6 | $140,845 | $373,266 | $232,421 | $81,347 |
| 7 | $140,845 | $373,266 | $232,421 | $81,347 |
| 8 | $140,845 | $373,266 | $232,421 | $81,347 |
| 9 | $140,845 | $373,266 | $232,421 | $81,347 |
| 10 | $140,845 | $373,266 | $232,421 | $81,347 |
| Total | $1,408,452 | $3,732,660 | $2,324,208 | $813,473 |
Details
| Current Property Value Assessment | $3,752,000 |
| Current Municipal Tax Levy | $140,845 |
| Estimated Post-Development Property Value Assessment | $11,400,000 |
| Estimated Post-Development Municipal Tax Levy | $373,266 |
| Estimated Eligible Investment Costs | $13,000,000 |
| Percentage of Eligible Investment Offset by Grant | 6.26% |
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 Retention and Expansion Grant Program. Staff from the Planning, Finance, and Legal departments were consulted in the preparation of this report.
Conclusion:
Administration recommends that Council approve the request Active Care Management (2018) Inc. on behalf of St. Clair Rhodes Development Corp. to participate in the Business Retention and Expansion Grant Program. Specifically, that the municipal portion of the tax increment resulting from the proposed development of eligible uses (i.e. Computer Software Developer, Corporate Office, Canadian Head Office) located at 3355 Munich Court be provided as an annual grant for up to 10 years or until 100% of the eligible costs are repaid pursuant to the City of Windsor Economic Revitalization CIP.