North Battleford approves up to five years of tax relief for new homes

“I’m in favour of it, just for the simple fact that that is one area that we’ve really been lacking recently, is residential homes,” Coun. Greg Lightfoot said.

“I do believe it is because some of the municipalities close to us do have tax incentives, and there are opportunities for them to build and save some tax dollars, so I’d like us to be in a similar playing field.”

Mayor Kelli Hawtin said the incentive is intended to help attract development to existing serviced lots throughout the city.

“I think if we’re not at least on level playing field for residential development, we’re behind,” Hawtin said.

“I think this provides that incentive that if people are choosing a place in the communities to develop, hopefully they choose Fairview or Kildeer or one of our infill lots. There are a lot of service lots available in the city, so we’d love to see them filled up.”

The policy was amended before approval to remove references to modular homes.

The housing incentive was one of three development-related policies brought forward by adminstration as part of a broader effort to encourage investment, redevelopment and assessment growth.

However, council voted to table the proposed Economic Development Business Incentive Policy and Vacant Commercial Building Tax Incentive Policy pending further review.

Administration said the Economic Development Business Incentive Policy was designed to encourage commercial and industrial investment through municipal property tax exemptions tied to new construction, redevelopment and expansion projects.

Eligible developments would include retail and wholesale businesses, offices, restaurants, accommodations, manufacturing facilities, warehouses, distribution centres, research and development operations, fabrication businesses and other commercial or industrial projects.

Under the proposal, developments valued between $250,000 and $499,999 would qualify for a one-year municipal tax exemption on improvements, projects between $500,000 and $999,999 would receive two years, while developments exceeding $1 million could receive up to five years of relief.

The second proposal focused on vacant commercial properties.

Administration said the Vacant Commercial Building Tax Incentive Policy was intended to encourage the re-occupation and redevelopment of buildings that have sat vacant for at least 18 months by helping offset renovation costs and bringing properties back into productive use.

Under the proposed program, qualifying properties would receive a 100 per cent exemption on the municipal portion of property taxes during the first two years, declining to 75 per cent in the third year, 50 per cent in the fourth year and 25 per cent in the fifth year.

City Manager Randy Patrick said the proposed policies were intended to create a consistent framework for businesses and developers seeking municipal support while reducing the need for project-by-project negotiations.

“What we wanted to do is create a process for all of these policies that says here’s what we offer, so we know what it is,” Patrick said. “You don’t have to come and negotiate.”

Patrick said the incentives were aimed at encouraging development that the city currently is not receiving, particularly new housing and commercial investment.

Lightfoot said he supported the goal of encouraging development but wanted more information before adopting the business incentive framework.

“I’m not necessarily sold that this is the exact version of what we need,” he said.

“For instance, there’s certain businesses in town that maybe we don’t need incentives for, because there’s a lot of those sorts of businesses in town already.”

“So, do we want to be incentivizing businesses that we have, and I’m just going to throw this out there – six or eight pizza restaurants, maybe we don’t need to do that because there’s enough in here, I’m just using that as an example, so I’d like to get more information on this.”

Lightfoot said he would also like administration to compare North Battleford’s proposals with programs in other communities and identify sectors where incentives could address specific economic development needs.

Hawtin agreed further review was warranted, particularly regarding how the proposed incentives would interact with existing downtown revitalization programs.

Councillors also suggested the city’s Economic Development Advisory Committee should be consulted before the policies return to council.

—

Kenneth.Cheung@pattisonmedia.com

by Kenneth Cheung

North Battleford approves up to five years of tax relief for new homes

What's Trending