3 Jun 2024 Council meeting Economy

Downtown and Hotel and Motel Revitalization Tax Exemption Programs

Motion
That Council direct Staff to bring forward Revitalization Tax Exemption Bylaws for a five- year period including Hotel and Motel Revitalization Tax Exemption program open Citywide for new builds and renovations.
Minutes, page 5
Sources
Agenda itemCity agenda
Staff reportPage 1
Purpose
To present Council with new Revitalization Tax Exemption Bylaws for the Downtown and Hotels and Motels.
Staff report, page 1

Council’s motion differs from staff’s recommendation

Staff report, page 1
DocumentsStaff report about Economic Development

Ian Thorpe Yes

So Councilor Prince moved it. Councilor East Smears seconded it. Any further comment from the mover of the secondary. If not, I'll go on to Councilor Thorpe. Thank you, your worship. I'll support this. And I think to councilor Perino's suggestion. This was the subject of a really fulsome, as I recall, discussion at the GPC. Committee. And I think the result was basically a compromise, if you will, with a surprising amount of consensus on council that we felt five years was more appropriate. So while I would be willing to support ten. I'm okay with the compromise. I want to thank Ms. Manhas for her good work. I really support these programs. I think to me. They are about sending a message. The message is that we as council are supportive of development and revitalization. And this is a gesture on our part to encourage that to happen. So I'm happy to support the option of option two.

Ben Geselbracht No

Councilor Gesselbrook. Thanks, mayor. Through you. I'm not going to support this. I don't think that it's clear whether. The tax incentive program actually is incentivizing anything. There's not really anything to say whether those ten projects would have gone ahead regardless of what we do. And I think fundamentally, I'm not in support of subsidizing private development through this program. With taxpayer money. And at the GPC, it did look like we were the majority. People were in favor of supporting. The tax subsidy, however. In that discussion, knowing that it looked like it was going forward. There was a decision to maintain. The current boundary at Pine street, and I think it's just way too wide of a net and. If there is consensus to go forward with this, we should be making much more concentrated around the downtown, lowering it to purdot. If deceive does. But regardless, I'm not in favor.

Leonard Krog Yes

Arguably, you'll never get a full cement. Can the answer ever be given? Does an incentive program work. Are more Canadians buying electric vehicles because they get a subsidy when they buy it than would have bought without the subsidy. I don't know. Unless you get some sworn declaration that has legal. Consequences from everybody who participates, a developer who. Says I built this hotel because of the tax exemption. It was the deciding factor for me. I think it's very challenging, so I think we're always going to face that issue. And I don't think you'll ever get a fulsome answer, but having said that I think council is reasonably clear. But if we hear back from the development community and they say, forget it, we're going to build outside of the downtown core. And the reason is, if we're going to pay taxes, we want to do it because it makes more sense for us to build outside of the downtown core, then we need to pay. Attention to that. And we're going to be relying on Miss Manhattan as the city has for many years. To be both voice too.

Sheryl Armstrong Yes

GPC. We were very much back and forth on the time and we actually wanted less than five years, and we actually came to concession on five. Yet now I see the bylaws ten. So just for further I will not be supporting because of the move to the ten years. We were very clear on that at the GPC. And these developers are making a lot of money, and many of them are. And the fact that. They want to be exempt for ten years does not sit well with me, so I will not. Be supporting the change.

Questions and answers

Councillor Erin Hemmens
Speaker identificationConfident
Yes

asked
I actually had a similar reaction to Councilor Armstrong, and I'm hearing rumbling, so maybe we could just have Miss Manhouse clarify. Is it five years or ten years that
City staff answered
We're looking at so for option one, that's one of the options. That would be ten years. Option two would be five years. And for that, we would come back to you at the next GPC meeting, which is on June the 17th, so it would be quickly that we come back with that change. And option three is providing.
followed up
Alternate directions. So option one is ten, option two is five. Thank you. And given that, reviewing the materials for how we voted at the GPC, we were 100% behind five years. So could I just understand why staff are
City staff answered
Recommending ten? I think it's because development community had mentioned that they would prefer ten years as opposed to five.
followed up
This team very clearly said five. So I won't support option one, but I do have a question regarding the extension. Say we take staff recommendation. We give a ten year tax exemption. And then we are allowing potentially two extensions on top of that. How long are the extensions are they year long extensions? Are they another ten year of extensions and further. If the materials indicate that the program will be wrapping or reevaluated in 2029. And everything's going to shut down, effectively, then. Until we maybe re
City staff answered
implement. I'm not sure the extension. Piece. So there's merit. So there's two different things that I think are getting. Mixed up here, and one of them is basically how long the program runs for that would be five years. So anybody who wants to apply for this program has five years. So if they want to do a project. Basically. December. The end of 2029 is how long they have to apply for this program. Beginning of. 2030. Basically, that's when the program expires. We don't need to continue this. Program after that. The tax exemption, what we would call is the benefit that is for a ten year period. So if they enter into it in 2028. They still get that? As soon as they get their occupancy for that particular project, that is when the ten year start. So that will still continue on for the ten years. And the maximum benefit they ever get is ten years or five years, whichever you choose. I think the confusion is just that the benefit period is for ten years. Whenever they become qualified. And the program itself is only going to run for five years, meaning after the program expires. We will not be taking any applications under either of those programs unless council decides they want to move forward with that. Or they might look at something
followed up
different. But basically, that's how long the program would run for. And I'm sorry this isn't clear to me. What
City staff answered
Is the extension for? The extensions are basically. We've had some developers come in the past. They need to meet two different conditions along with all the other cities, zoning and everything but the two dates. Basically. One is around building permits, so they need to get we originally established. Okay, you need to get your building permit, let's say within six months, and that's a. Date. That's in their agreement. And then the other date. That's in their agreement is that they have to get their occupancy. And so in the past, we've had some developers come before council many times. As much as four or five times. So we wanted to make sure that. We really look at that and we want them to really meet. Those deadlines in order to qualify for the program. So we really maximized it at two extensions. So ultimately that could be, like, one extension if they couldn't make the building permit, and they have to have good rationale for why. And then the other one could potentially be for occupancy. Or it could be both at the beginning. And not at the end, but really, that's the maximum extensions they would get. And again, that would be up to because. It's going to staff now. They would have to have good
followed up
rationale for why they need that extension, and staff would look at it at that point. Thank you. Just my