City's Downtown Revitalization Tax Exemption Program seemingly finding few takers to date

The City's Downtown Revitalization Tax Exemption plan
is directed to property owners looking to improve
the appearance of their buildings

A question  related to one of the City's financial tax exemption programs that came out of Monday's City Council Approval of the Financial Plan and Property Tax Bylaws, has provided for an update on a highly touted program to help  provide incentives to clean up downtown properties.

During the final Budget discussion for 2022 on Monday evening, Councillor Nick Adey asked about the current status of participation in the Downtown Revitalization Tax Exemption Program.

"Just a question, I'm on page four where it talks about policy with regard to Permissive Tax Exemptions and there are four items, or four categories identified there. 

I'm curious about the fourth one, the Downtown Core Revitalization Tax Exemption program which came to existence in 2020.   

I'm just wondering if we have any information on how effective that's been, or what the kind of revenue outcome of that has been"-- Councillor Nick Adey

Ms. Corinne Bomben, the City's Chief Financial Officer and Deputy City Manager noted that the program is not part of the Permissive Tax Exemptions element of the Tax Bylaw that was the topic for the night. 

However, she did update the Councillor on the program which went into effect in early 2021, noting that so far only one property owner appears to have taken advantage of the program.

"The Downtown Development Revitalization Tax Exemption is not inclusive within the Permissive Tax Exemption, it's under different legislation.

We actually don't have  ... we have one application that has been received by Council and we don't have any information quite yet as to the non-market change that is going to be exempted. 

We won't that know for some time, probably into next year.

We don't anticipate that there will actually be that much exempted because it was really just painting and some changes to the front door" -- Chief Financial Officer/Deputy City Manager Corrine Bomben

The participation rate with their marquee program might perhaps be a bit of a disappointment for Council, which brought the program forward after some extensive discussion to the topic in 2020 and early 2021.

January 2021 -- After lengthy back and forth discussion, council members come to a compromise on amendment for Downtown Tax Incentive Bylaw

November 2020 -- City Council Moves forward towards introduction of Downtown Revitalization/Tax Exemption program  

The concept of a downtown revitalization tax program was also the focus of a Small Business Committee Report back in 2018, which seems to have been the seed that germinated in 2020.

Upon the introduction of the Tax Exemption program in 2021, Mayor Brain noted that it was time to clean up the city and that the new financial incentive package would aid in that cause.

The City followed up on their clean up themes with warning letters to property owners in February.

In 2021, Council received a report related to one local organization that had taken advantage of their program, that of Lax Kw'alaams Holdings.

While there has seemingly been a bit of success in improving the look of some areas of the downtown core, whether through the new program or outside of it.  For the most part, in recent months it seems that there has been more empty space introduced to that region than anything else. 

With fewer buildings dotting the city streetscape today to be revitalized, than there were back when the program took effect in 2021. That coming following a number of building demolitions, or destruction by fire.

The site of the Old Large Clinic is one of a number of 
downtown lots that have been cleared in the last few years
though no new uses have been establish to this point

The City followed up on the Downtown Revitalization Tax Exemption program with a similar program for Industrial land, introduced in December of 2021 to encourage the use of land for logistical enterprises.

Considering the sparse nature of participation to date, Council may want to task someone at City Hall, perhaps the City's Economic Development Officer Paul Venditelli, who we haven't heard much from of late, to try to determine why local business owners don't seem to be taking to the tax incentive program to this point. 

And as a side project, staff could try to find out if and when anyone plans to build anything on the growing volume of empty lots across the downtown core.

The short overview of the Program can be reviewed through the City's Video Archive, the Downtown Revitalization element is mentioned at the 18 minute mark.

For those that may not be familiar with the Downtown Tax Exemption program some background on it can be reviewed from the City of Prince Rupert website.

Further notes on Monday's Council Session can be explored through our Council Timeline.