There are now some numbers to attach to the City’s new Industrial Revitalization Tax Exemption bylaw.
The policy, similar to the one instituted several years ago in the City’s downtown, is intended to encourage investment in the north end of the community and at selected locations on the airport grounds. It can also be applied to existing businesses that expand their operations.
The bylaw rewards industry using three measurements: how much it contributes to the industrial tax base, how many jobs it creates and the use of green building practices. Each one is ranked in importance: tax base (70 per cent); jobs (20 per cent) and green practices (10 per cent).
“Depending on how you score that will give you a different class exemption,” said Alan Madrigga, manager of economic development for the City.
There are three classes with the difference between them being the declining rate of exemption. In the first year, the plan is classes will not pay the increased assessed taxes on the property or receive the building permit value in the first year.
In the following four years each class will get a declining exemption.
“The advantage for business is they get a tax savings over the course of five years and after the second year the City gets some tax revenue. We win and the business wins,” Madrigga said.
Existing businesses can apply and qualify for an exemption.
“This is one tool we are looking at to deal with business expansion and attraction.
“There are other things we’ll be looking at.
“We haven’t forgotten that we have existing businesses here and we want to work with them and do whatever we can.”