A pair of Wallaceburg businesses are in line for some tax relief, through Chatham-Kent’s new community improvement plan (CIP).
Council is set to vote on two reports at their electronic meeting scheduled for Monday, October 19, 2020, which includes staff recommendations to move forward with property tax increment equivalent grant agreements with 2738336 Ontario Inc., owner of 63 McNaughton Avenue, and Five Star Tool & Die Limited, owner of 375 Arnold Street.
The staff recommendations are for the Municipality to provide an annual grant equivalent to 100% of the increase in municipal property taxes, resulting from a new building addition for a commercial use on both properties, for five years.
Ryan Jacques, manager of planning services, said in a report 2738336 Ontario Inc. has applied for the grant for the development a new combination gas bar and convenience store, approximately 138.95 sq. m (1,496 sq. ft.) in area, along with fuel dispenser islands and associated canopy and underground fuel tanks.
The development, located on the east side of McNaughton Avenue, south of Reaume Avenue, has a declared construction value of $450,000, Jacques said.
“The subject property was previously developed as a gas bar with a convenience store and manual car wash,” Jacques said in his report.
“The gas bar and car wash were removed in October 2010 when associated buildings and structures were demolished. This project is eligible under the CIP for a grant equal to the amount of new municipal property taxes levied because of new assessment growth related to the development.”
In a separate report, Jacques said Five Star Tool & Die has applied for the grant for the development of a new 596 sq. m (6,417 sq. ft.) addition to its existing building.
“The addition represents an expansion of approximately 20% of the existing building area,” Jacques said.
“The addition has a declared construction value of $599,550.”
On March 2, 2020, Council approved the Chatham-Kent CIP, which covers the entire Municipality of Chatham-Kent.
Jacques said the CIP supports the Chatham-Kent growth strategy and 2018-2022 Council term priorities in order to allow market driven investment for targeted needs throughout the community, for example: rental/affordable housing, commercial and employment business growth.
“The CIP replaced the downtown and main street areas, commercial, and employment CIPs,” Jacques said in both reports.
“The CIP brought forward or enhanced the most impactful and popular programs from the former CIPs and introduced new incentives focused on encouraging much needed rental housing and affordable housing in the Municipality.”
Jacques added: “The property tax increment equivalent program provides economic incentive for the development, redevelopment, adaptive reuse or rehabilitation of properties in the CIP areas. Specifically, it provides an incentive to reduce the tax increase that can result when a property is developed, redeveloped or rehabilitated. This may provide assistance in securing project financing and is anticipated to increase the assessment base in the Municipality.”
Some other details about the CIP, include:
Monday’s Council meeting begins at 6 p.m.
It will be LIVE streamed, here.