Purpose
The Building/Property Improvement Tax Increment Grant Program is intended to provide economic incentive for the development, rehabilitation and redevelopment of properties within the catalyst project areas of the CIP.
To provide an economic catalyst for rehabilitating, redeveloping or developing buildings and properties by providing a financial incentive that reduces any tax increase that can result when a property is rehabilitated, redeveloped or developed and may provide assistance in securing project financing. 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.
Description
This program will provide an annual grant based on the increase in municipal property taxes for five 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.
Program Details
Applicants are eligible to apply for funding under this program, subject to meeting the general program requirements, the following program specific requirements, and subject to the availability of funding as approved by Council:
- The following types of projects are considered eligible for the Building/Property Improvement Tax Increment Grant Program:
- Existing commercial, residential and mixed use buildings, and vacant properties where the development, redevelopment or rehabilitation project results in an increase in the assessed value and taxes on the property.
- Existing commercial, residential and mixed use buildings, and vacant properties where the development, redevelopment or rehabilitation project results in an increase in the assessed value and taxes on the property.
- The Building/Property Improvement Grant Program will consist of a grant program, whereby registered property owners and/or assignees will be eligible to receive a grant for 100% of the municipal portion of the tax increment generated from the improvements made to the building or property for a defined period of time.
- The amount of the grant will be determined based upon the incremental increase in the municipal taxes that results from the work being completed and the project being reassessed by MPAC.
- The applicant will be required to submit a complete application to the City describing in detail the development or redevelopment that is planned. This may include reports, conceptual site plans, business plans, estimates, contracts and other details as may be required to satisfy the City with respect to and conformity of the project with the CIP. The application must be submitted to the City prior to City Council’s approval of financial incentives for the project.
- The development, redevelopment, adaptive reuse or rehabilitation of the building and/or property must result in an annual grant (or tax increment) of at least $500 for properties that are taxed at the “residential” tax rate, or $1,000 for all other tax categories.
- Building/Property Improvement Grants are only available for the “eligible costs” specified below:
- Any portiwon of the eligible costs that were not reimbursed as part of another CIP program (except the Alley Enhancement Grant Program);
- Demolishing buildings for the purpose of preparing the site for development or redevelopment that is approved by the City (only an eligible cost as part of a redevelopment of the property);
- Development or redevelopment of a building or property, including improvements and expansion to an existing building;
- Adaptive reuse, building rehabilitation and retrofit works;
- Development Feasibility and Support Studies;
- Municipal Development Fees that exceed the $50,000 cap under the Municipal Development Fees Grant Program.
- Upgrading on-site infrastructure including water services, sanitary sewers and stormwater management facilities;
- Constructing/upgrading of any off-site improvement that is required to fulfill any condition of a development/planning approval (including Site Plan
- Control) for the development, redevelopment, adaptive reuse or rehabilitation of the building and/or property.