Improvement are met, and the grant payments will not start until after construction is completed.
Financial Matters:
Building/Property Improvement Tax Increment Grant Program
The program provides an annual grant equal to 100% of the increase in municipal property taxes for five (5) years.
The base rate from which the grant is calculated is the total amount of municipal taxes payable in the calendar year that City Council approves the financial incentives for the eligible works.
The estimated value of the grant represents 100% of the estimated increase in the municipal portion of property taxes for a period of 5 years. The Downtown CIP stipulates that the grant cannot be more than the eligible costs. The estimated total tax increment grant is $3,650 over 5 years. The applicant estimates $115,000 in investment to build the accessory dwelling unit containing a second residential unit. The grant represents approximately 3.2% of the estimated investment for this development.
Estimate Property/Building Improvement Tax Increment Grant Calculation 524 Bruce | |||
---|---|---|---|
Year of Grant | Pre Development Municipal Taxes | Post Development MunicipalTaxes | Estimate Value of Grant |
1 | $1,249 | $1,979 | $730 |
2 | $1,249 | $1,979 | $730 |
3 | $1,249 | $1,979 | $730 |
4 | $1,249 | $1,979 | $730 |
5 | $1,249 | $1,979 | $730 |
Total Grant Estimate | $3,650 |
Assumptions
Current Property Value Assessment (2020 - Residential) | $ | 77,000 |
Current Municipal Tax Levy (2020) | $ | 1,249 |
Estimate Post Development Property Assessment (Residential) | $ | 122,000 |
0.01622679 | ||
Municipal Residential Tax Rate (2020) | ||
Estimate Post Development Tax Levy | $ | 1,979 |
Total Estimate Eligible Costs | $ | 115,000 |