North Battleford approves tax break, prices five vacant lots below $10,000

The properties at 1211 108th St. and 1621 104th St. had each been priced at $18,000 in 2024. Their new ranges represent reductions of approximately 47 to 61 per cent. The $5,000 value for 902 115th St. remains unchanged.

Finance director Margarita Pena said the properties, which the city acquired through tax enforcement, had attracted few inquiries. A realtor recommended the new values after reviewing comparable sales from the previous 18 months and current listings.

Council authorized administration to proceed with the sales process, accept offers within 10 per cent of the approved values and pay a five-per-cent real estate commission.

Council was told all five approved properties are vacant land, although older online images may still show buildings that have since been demolished. The properties have also passed the initial period in which tax-title land must be offered through an auction or tender, allowing the city to use a realtor.

Hawtin supported the reduced values but asked administration to examine how the city could encourage construction on infill lots that already have access to roads, sidewalks and nearby community amenities.

“There’s always a concern about really inexpensive land or inexpensive buildings being purchased by individuals who really don’t want to do much with them, and does that create more of a problem than a solution for us?” she stated.

City manager John Enns-Wind said the purchase price of the land is only one part of the challenge.

“It’s more expensive to build new than it is to buy older inventory,” he noted.

Administration plans to explore potential approaches through the city’s official community plan and new zoning bylaw. Possibilities discussed included allowing multiple housing units on a lot, combining adjoining properties for larger developments, streamlining approval processes and placing greater priority on infill development closer to downtown.

Council also adopted the Vacant Commercial Building Tax Incentive Policy, establishing municipal tax reductions for owners who make substantial investments in commercial buildings that have been vacant for at least 12 months.

A project involving more than $150,000 but less than $500,000 in eligible investment can receive a 100-per-cent reduction in the applicable municipal taxes during each of the first two years, followed by a 75-per-cent reduction in the third year.

Projects involving more than $500,000 can receive the same reductions during the first three years, followed by a 50-per-cent reduction in the fourth year and 25 per cent in the fifth.

The incentive applies only to the municipal taxes on eligible improvements. It does not cover existing taxes, municipal taxes on the land, education taxes, UPAR or the Recreation and Cultural Capital Facilities Levy.

Eligible expenses include permanent exterior and interior work, accessibility improvements, electrical and mechanical systems, plumbing, HVAC and structural work. Land purchases, equipment, permit and financing fees, architectural and engineering services, routine maintenance and labour performed by the property owner are excluded.

Owners must apply before beginning construction, start work within 12 months of approval and finish within 24 months. One 12-month extension may be requested. The reduction begins only after the project is completed and the city verifies the eligible costs.

The incentive cannot be combined with another city tax incentive and remains attached to the property if it is sold. The city can cancel the benefit and charge previously granted credits back to the property if the conditions are not met or its taxes fall into arrears.

Council delegated authority to the city manager to decide individual applications, while the economic development manager must provide council with quarterly updates on approved, abandoned, ongoing and completed projects.

The final policy uses renovation investment rather than an increase in assessed value to determine eligibility. Administration told council that money invested in renovating a building may not be fully reflected in its subsequent assessment.

The policy defines its two tiers as investments of more than $150,000 but less than $500,000, and investments of more than $500,000. It does not specify how projects costing exactly $150,000 or $500,000 would be treated.

The council report acknowledges the program could reduc municipal revenue in the short term but does not provide a projected cost. Administration expects renovated buildings and new business occupancy to expand the city’s assessment base over time.

“But for now, we want to make sure that we have incentives offered to hopefully spur some renewal,” Hawtin stated.

—

Kenneth.Cheung@pattisonmedia.com

by Kenneth Cheung

North Battleford approves tax break, prices five vacant lots below $10,000

What's Trending