FINANCIAL MATTERS:

Business Retention and Expansion Grant Program

The tax increment portion of the Business Retention and Expansion Grant is not calculated or paid out until all eligible work is completed and the property is reassessed by MPAC. Reassessment of the property must result in an increase in assessment value. The grant amount is recalculated annually based on the actual assessed property value, tax class, and municipal tax rate.

Summary of Potential Financial Incentives

The applicant proposes to spend a total of $3,502,250 on the project, i.e. $2,552,250 on new construction and building renovation and $950,000 on development fees and site improvements. Planning and Finance Staff have prepared an estimate of annual grant value to provide an understanding of the potential grant magnitude (Figure 1). The proposed development is anticipated to increase the property value assessment by $1,634,000 and increase the annual municipal tax levy by $53,713. The grant value is estimated to total $537,130 over the lifespan of the 10-year grant program. This would represent approximately 15% of the eligible investment proposed by NARMCO.