Based on the proposed site development plan submitted by the owner, administration estimates the full build out post-development property value assessment to be $1,650,000 (the current assessed value is $89,500). The post-development total annual tax levy is estimated to be $74,650.34, which is a significant increase from the current total (pre-development) annual levy of $2,245.28.
The following is a summary of the maximum potential total grant value based on standard construction methods:
| Environmental Study Grants | $20,500 |
| Reduction of Development Charges | $201,095.25 |
| Tax Assistance Program/BFTIP (Years 1-3) | $174,500 |
| Brownfield Rehabilitation Grants (standard construction) (Years 4-8) | $166,707 |
| Total | $562,802.25 |
|---|---|
| Provincial BFTIP | $40,197.32 |
| All City Programs | $522,604.93 |
The total eligible costs estimated by the applicant under all CIP programs is $1,029,500—half of which may be offset by the Brownfield CIP. The Rehabilitation Grant Program would cease in year eight after five payments. The program typically provides ten annual payments, however the value of development charges reduction must be subtracted from rehabilitation grants that would have been paid in years 9-13.
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.
The property would continue to generate $2,245.28 in annual municipal taxes, which would be retained by the City through out the lifespan of the grant programs. After the grant programs cease the full amount of increased annual municipal taxes (i.e. $54,025) would be retained by the City in perpetuity. Building permit fees and 40% of the development charges (i.e. approximately $134,063.50) would be realized at the onset of the project.