City to launch brownfield financial incentives

The city's planning committee will be getting a look at four financial incentive programs to help reduce upfront costs associated with remediation, reuse and redevelopment as part of its Brownfield Strategy and Community Improvement Plan.

Brownfields are described as property previously used for commercial or industrial purposes that is vacant, derelict or at risk that a private proponent proposes to re-use for residential use or mixed use. They are usually, but not exclusively, former industrial or commercial properties. In 2008, city council set staff on a path to develop the Brownfield CIP.

Since this time, city staff formed an interdepartmental staff team, conducted research, consulted with the local development community, as well as community and brownfield industry stakeholders, and developed a draft strategy and community improvement plan to guide the revitalization of brownfields across the city.

There are about 60 brownfields located in the city, according to a report presented to the city's policy committee in March 2011. About 16 of them have been identified as “at-risk” properties, with an accumulated $1.9 million in arrears. The majority of all brownfields have a good redevelopment potential.

The financial incentive component is the second step of a four-step strategy. This component is being launched at the Feb. 13 planning committee meeting. Parts three and four will be marketing and attracting investment, and education and building capacity, respectively.

All applications will be reviewed by city staff and considered by city council.

The four incentive programs include:

Tax assistance program: This program defers or cancels 100 per cent of the municipal and education portion of the property tax (education portion subject to Minister of Finance approval) during the rehabilitation period (up to 18 months) and development period (a time period approved by council, up to 18 months). The amount of assistance provided under this program varies depending on existing assessment and taxation, as well as the duration of rehabilitation and development periods.

Landfill tipping fee rebate program: This program reduces landfill tipping fees from $72 to $36 per metric tonne for impacted soil being removed from a brownfield, provided that it can be used as cover material at the city’s landfill site. The City will provide approximately $200,000 in funding under this program annually. The total amount of funding provided to each property will be $40,000.

Planning and building permit fee rebate program: This program refunds all or part of planning and building permit fees collected as part of the reuse or redevelopment of a brownfield, after certain performance criteria are met. The city will provide approximately $350,000 in funding under this program annually. The total amount of funding provided to each property will be $70,000.

Tax increment equivalent grant program: This program grants 100% of the incremental increase in the municipal portion of the property tax revenue associated with a project for a period of up to five years. The amount of assistance provided under this program varies depending on existing assessment and taxation, the value of the project and its impact on assessment and taxation.

These programs can be used in conjunction with other incentive programs offered by the city or other levels of government. The total amount of incentives shall not exceed eligible costs.

More information can be found by clicking here.

Posted by Arron Pickard