Economic Development Program
Economic Development Program
Designed to encourage commercial/residential construction within Five Rivers.
1. PROGRAM DESCRIPTION
The Financial Incentive Program grants will focus on accelerating commercial and high–density residential development in the municipality’s strategic growth areas. The Financial Incentive Program grants consist of a Tax Increment Based Grant Program and a Building Permit and Development Charge Equivalent Grant Program. It is anticipated that these grants will act as a catalyst for increased development activities in the municipality, which will in turn attract further businesses, residents and employment. Property owners that promote private sector investment, development, redevelopment and construction activity are eligible to participate in these incentive programs. The description, criteria, and application process for these programs are outlined in the following pages.
1.1 Tax Increment Based Grant Program
This program provides an incremental tax grant to completed projects within the Village of Rexton based on the project’s economic and environmental design performance. Successful applicants will receive a tax rate rebate of a percentage of the post-project values, for a period of 5 years. Savings resulting from this program can be significant
1.2 Building Permit and Development Charge Equivalent Grant Program
This program recognizes exceptional projects – those having value in excess of $1M- and provides relief from development charges for those projects.
2. PROGRAM CRITERIA
2.1 The property must be located within the municipality in an appropriate commercial or high-density residential zone as shown in Schedule “B”, Please refer to Rexton Zoning By-Law for provisions.
2.2 The property owner is registered as a Corporation under the Business Corporation Act.
2.3 The subject property shall not be in a position of tax arrears. All taxes owing shall be paid prior to the
disbursement of any fee related grant.
2.4 Approved grants are not transferable. Only the original applicant will be eligible to receive subsequent grants provided ownership continues.
2.5 Eligible Financial Incentive Program Grant Projects must represent one of following
types of projects:
- Infill and redevelopment of large surface parking lots, vacant under-utilized sites, and buildings;
- Redevelopment of properties which involves the demolition of commercial, residential or industrial buildings
- Undeveloped land
- High-density residential projects greater than 10 units per acre.
2.6 Development must significantly improve or enhance the value of the property.
2.7 Any property owner wishing to be considered for a grant under the Financial Incentive Program must complete and submit an Application Form to the General Manager prior to the commencement of any works and prior to application for building permit.
Tax Increment Based Grant Program
2.8 With the Tax Increment Based Grant Program, the maximum grant paid out by the program each year for a specific project cannot exceed the annual contribution made to the Capital Improvement Fund for that project.
2.9 Before any grant is provided to the applicant for a property for which a satisfactory grant application has been received and approved, the project has to be completed and property taxes are required to have been paid as billed each year and, the property shall be in compliance with the program’s requirements and conditions.
2.10 Actual costs for any or all of the eligible items may be subject to independent audit at the expense of the property owner (i.e. where the Municipality requires an audit, criteria will be established).
Building Permit and Development Charge Equivalent Grant Program
2.11 Any property owner wishing to be considered for a grant under the Building Permit and Development Charge Equivalent Grant Program must complete and submit an Application Form to the Municipality prior to the commencement of any works.
2.12 Applicants must pay for development fees in entirety prior to undertaking the work for which a satisfactory grant application has been received and approved. A grant for the full amount of the building permit fee will be provided to the applicant once the approved work is complete, to the Municipality’s satisfaction. Only fees paid for the following types of applications are eligible:
- Development Permit and Building Permit;
- Rezoning Fee for a Municipal Plan and Zoning By-law Amendment;
- Variance and other Planning Advisory Committee (PAC) Applications; and/or
- Demolition Permit.
2.13 The applicant will be required to enter into an Agreement with the Municipality that sets out the conditions of the annual grant.
2.14 The proposed development will commence no longer than 2 years following Municipal Council’s approval of the grant or the grant will be cancelled. The 2 year period may be extended by Municipal Council at its absolute discretion.
2.15 The first grant payment will be made to the developer any time after the 1st of July of the following year of the final inspection, when the owner provides proof that property taxes have been paid.
3. GRANT APPLICATION REVIEW AND APPROVAL
3.1 The Municipality’s General Manager will administer the Community Improvement Plan Financial Incentive Program. All applications will be evaluated by an internal review committee comprised of staff and Council representatives. This group will be responsible for providing recommendations for Council’s approval based on the program requirements specified in the Municipal Community Improvement Plan.
3.2 Applications are filed utilizing the Financial Program Grant Application Form outlined in Schedule “A”.
3.3 Eligible Funding Projects must be located within the appropriate Commercial or High-Density residential zones as shown on Schedule “B”. Please refer to Rexton Zoning By-Law for provisions.
FINANCIAL INCENTIVE PROGRAM
GRANT APPLICATION FORM
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