IV. THAT should the proposed development not be completed in one (1) year, City Council AUTHORIZE that the funds be uncommitted and made available for other applications.

Executive Summary:

N/A

Background:

The Downtown Windsor Enhancement Strategy and Community Improvement Plan (Downtown CIP) was adopted by City Council on September 29, 2017 and an adopting by-law was passed by City Council on October 16, 2017.

The Downtown CIP provides financial incentives to encourage new residential development, retail investment, facade improvements, and building/property improvements.

Sarah Cipkar has applied for the Building/Property Improvement Tax Increment Grant Program under the Downtown CIP for the property located at 524 Bruce Avenue (as shown on Appendix A).

A single family dwelling currently exists on the subject property and the applicant proposes a second detached residential unit. The second residential unit will be a one bedroom, 40 square metre. The proposed site plan and elevations are attached as Appendix B.

Discussion:

Building/Property Improvement Tax Increment Grant Program

This program is intended to provide economic incentive for the development, rehabilitation and redevelopment of properties in Downtown Windsor. The program provides an annual grant equal to 100% of the increase in municipal property taxes for five years, with the possibility of an extension up to a total of ten (10) years, after the project is completed and reassessed to help offset the costs of rehabilitating and redeveloping properties, as long as such development results in an increase in assessment and therefore an increase in property taxes.

The proposed improvements to the building are anticipated to increase the assessed value and therefore increase municipal taxes. This project qualifies for the five year Building/Property Improvement Tax Increment Grant and the Financial Matters section of this report discusses the estimated grant amount. The project does not qualify for the additional five year extension as it does not meet the definition of a catalyst project.

Risk Analysis:

There is low risk associated with the approval of the subject Downtown CIP grant applications. An agreement between the City and owner will be prepared to ensure the Building/Property Improvement Tax Increment Grant Program requirements and provisions of the Downtown Windsor Enhancement Strategy and Community