Should Council refuse the request for financial 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 owner, administration estimates the post-development property value assessment to be $3,877,331 (the current assessed value is $206,500). The post-development total annual tax levy is estimated to be $73,165, which is an increase from the current total (pre-development) annual levy of $9,452.
The following is a summary of the maximum potential total grant value based on standard construction methods:
| Environmental Study Grant | $12,500 |
| Reduction of Development Charges | $16,205.43 |
| Tax Assistance Program/BFTIP (Years 1-2) | $111,800 |
| Brownfield Rehabilitation Grants (standard construction) (Years 3-12) | $438,679.28 |
| Total | $579,184.71 |
|---|---|
| Provincial BFTIP | $18,749.72 |
| All City Programs | $560,434.99 |
It should be highlighted that the reduction in development charges is not an expense to the City but rather foregone revenue which is being offset by the clean-up and redevelopment of a significant brownfield property, the cost of the clean-up to be paid by the applicant. Both the Tax Assistance and Brownfield Redevelopment grants are paid back to the applicant after redevelopment has occurred and assessed by MPAC and total taxes as it relates to the redevelopment have been paid to the City in full.