Purpose
To stimulate investment by deferring part of the increase in property taxation because of adaptive reuse, building rehabilitation and retrofit works. Will provide a grant to eligible property owners, which is equivalent to a percentage of the municipal portion of a property tax increment that is incurred because of an improvement project.
Eligibility Criteria
Eligible applicants will only include the registered owner/assessed owner of the subject property. Tenants will not be eligible.
Only projects that are anticipated to generate an increase in assessment are eligible.
Applicants receiving TIEG will not be eligible for additional incentive programs offered through this CIP.
Eligible Costs
- Demolishing buildings
- Adaptive reuse, building rehabilitation and retrofit works
- Upgrading on-site infrastructure including water services, sanitary sewers and storm water management facilities
- Constructing/upgrading of any off-site improvement that is required to fulfill any condition of a development/planning approval for the development, redevelopment, adaptive reuse or rehabilitation of the building and/or property
- Such or similar costs that may be necessary for the redevelopment, adaptive reuse or rehabilitation of the building and/or property, such as the completion of studies and the cost of planning application and building permit fees
Payment Process
- Grants may be provided in accordance with a TIEG Agreement made between the Town and the owner(s) upon successful completion of the approved project, to the satisfaction of the Town, and payment of the full reassessed value of municipal taxes.
- If the property is sold, in whole or in part, before the grant period lapses, the original owner is not entitled to receiving the remining grant payments. However, if a Grant Agreement is registered on the title of the subject property, the new owner may be entitled to receive the remaining grant payments.
Grant Value
Where a proposed project satisfied the eligibility requirements, a TIEG may be provided on approved applications as noted below.
Grants will be provided for a period of 5 years:
- In year one, a grant that is equivalent to 100% of the Town portion of the tax increment may be provided to a property owner.
- In year two, a grant that is equivalent to 80% of the Town portion of the tax increment may be provided to a property owner.
- In year three, a grant that is equivalent to 60% of the Town portion of the tax increment may be provided to a property owner.
- In year four, a grant that is equivalent to 40% of the Town portion of the tax increment may be provided to a property owner.
- In year five, a grant that is equivalent to 20% of the Town portion of the tax increment may be provided to a property owner.
To determine the suitability of the TIEG, the Town will attempt to estimate the total potential value of the grant prior to submitting an application for the program. The estimate will consider current assessment value, total anticipated investment and the potential reassessment based on completing the works.