No Tax Break for Logistics Park…Yet
Monday, June 10, 2013 @ 7:12 PM
Developer wanted tax exemption for lots in light green shown on this promotional map from NDITrust
Prince George, B.C.- A request for a tax exemption for the Prince George Global Logistics Park is on hold.
Staff had submitted a report to Council advising the request be denied citing it as “premature” because Boundary Road, the access road for the site, has not yet been completed.
The request was for a tax exemption that would help spur the development, and it referenced a similar offer available at the Abbotsford Airport. But the lands in that case are owned by the City of Abbotsford. Prince George Director of Development , Ian Wells, says the Abbotsford scenario is not successful because the lands have to be leased, and developers are not interested in establishing a business on leased land.
Some Councillors were taken aback over process, namely that a letter to Mayor and Council had already been sent to staff for the development of a report and recommendations. New City Manager Beth James says she directed the steps be taken in order to offer a timely response. Councillor Lyn Hall says seeing a staff report put before him on a matter that had not yet been presented to Council left him feeling “ham strung” and “boxed in” and he felt it was Council’s responsibility to decide what action, if any, should be taken on a letter. Councillor Dave Wilbur offered praise to Ms James for “coming forward with clarity”.
Once the issue of process was cleared, Council agreed to revisit the request in a year’s time.
The marketing of the Prince George Logistics Park lands is a key project of Initiatives Prince George, the development is also featured on the Northern Development Initiative Trust’s development portal on the web.
Comments
Seems the new City Manager has a little further to go in her learning curve.
Council can look at this tax exemption in a year, however I would suggest it will not be a go even then. We are not going to tolerate tax exemptions for new business’s that have to be paid for by tax increases, by established business, and citizens. That’s just plain Horse S…
Have a nice day.
Setting up business in the new global logistics park should be a no brainer given all the increased traffic from the cargo airlines using the new extended runway and needing services.
Since the $36 million dollar extended runway officially opened on February 20, 2009, how many international cargo jets have used it since then? Five (5) maybe?
Oh well, lets adopt the Liberal Government mantra… repeat after me…we are well positioned… we are well positioned… we are well positioned… waiting… next global economic boom… waiting…
There is no reason for airlines to re-route their cargo traffic here period. But we do have a nice long runway just in case one or two stop to pick up some helicopters. We could stage a really big camp in air show. At least the local car club gets to use the north end for some car racing.
If not now, then pretty soon, we will have to say that the Airport Expansion (and maybe the establishment of the Airport Authority in Prince George) is a failed project.
The question then arises,. After the expenditure of some $35 million plus dollars on this project who will take responsibility for this wrong decision???
If we run true to form, the answer is nobody. No one will man up and say that we blew it. Standard form for politicians. Take credit when it works, and hide in the bush when it fails.
One thing that isn’t really covered here are the other benefits to the travelling public. The longer runway sure cut down on the number of cancelled flights due to fog and weather related issues. I know they also added enhanced ILS meaning that landing here is safer than it was before.
Jazz has already, and West Jet will (probably) very soon go to the smaller Dash 8 aircraft. We hardly need a two mile runway for this type of aircraft.
Seems the Airlines are going in the opposite direction than the Airport Authority.
Usually businesses are established to meet a product or service demand. Yet here we are proceeding with a global logistics park that currently has zero demand now, and likely into the future.
Save the taxpayer’s money and mothball the park until such time, if ever, cargo jets begin landing and refuelling in any significant numbers.
The run way is built, get over it people. Tax money would have went somewhere. Would it have been better to piss it away in Kamloops? Its naïve to think that if it wasn’t spent here, it would say, pay down debt. Not likely. Instead it would pay for a Bollywood festival or a gazebo. This will be an asset for years to come. Way to early to classify this as a white elephant.
Harry Rempel is a astute businessman and has invested a significant amount of private money on the park. This type of venture does not spring up overnight and certain things have to be in place before an airline will even look at relocation.
The longer runway is in place and I think the refueling pads are nearing completion which will allow for more efficient tech stops. Airlines do have contracts with other airports so it will take time to pry away a carrier or two, this is where IPG should be working their butts off selling the advantages of PG(instead of headhunting and hosting job fairs). Having a fully serviced park is another selling feature to help lure them. The warehouse type buildings required can be banged up in no time.
The next step is to build out a logistics park, air to rail/truck and rail/truck to air etc. This does have the potential to employ quite a few people and have the city grow for a change
That being said does he deserve a tax break at this stage? NO. Maybe in 5 or 10 years and the park needs a little boost to grow to the next stage. They would be better off using their contacts to lobby NAV Canada to reduce the landing fees to better compete with Alaska.
Anybody know if Henry Rempel still owns the apartments on the corner of Westwood and Ferry? If he does, I have to agree, he is a very astute businessman. The place is run-down, poorly managed and some of the balconies are ready to fall off!
Tax incentives are an investment in the future. It may be the difference in setting up shop in Prince George, going elsewhere, or not setting up shop at all. The first two years of any business seldom sees a profit. So how many future tax dollars will Prince George get if the business does not set up shop here? This is a very short sighted decision by council. Perhaps council are feeling a bit snake bit with ‘developers’ ,
The first essential is location. If PG is not the right location, nothing will happen that is likely to have any sustainable value.
Second is physical and regulatory infrastructure supplied by service agencies – the airport, the city, the province and, possibly the feds (tax free port).
Third is the new infrastructure by the business locating here.
We happen to have inherited the location which may or may not be advantageous now or sometime in the future. We reap the benefit of that should it happen. Right now there do not seem to be any strong indications of that with respect to the transportation component. However, there may be other assets to the location that no one seems to be talking about.
The City, the Province and the Feds have invested in the physical infrastructure and even a small part of the regulatory conditions which would allow such a facility to survive. (The City managed to get the land removed from the ALR â the Feds have yet to make some decision about giving the airport area special taxation consideration for an intermodal and assembly manufacturing processes â right now Winnipeg looks like it is it â there is an election issue there as well as a lobbying issue for our âMinister of jobsâ that has not hit the public yet. Perhaps it is time that it does.)
So, to help the potential developers of particular properties for warehousing, light industrial, etc. is a bit early because we do not have any idea of whether cost of development is a hurdle. The fact is, the City has already made substantial investments in this project. That was not to give property owners a tax break. It was to get people to build and collect taxes.
The decision was the right one in my opnion. Wait to see what develops. The argument to support it was not made.
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I can picture a future meeting at City Hall .. say 2018 ….
We are seeking a continuation of the tax incentives since our business has not been able to develop to the extent we thought. Giveus another 3 years until we are out of the current economic min-slump.
All we are doing is becoming involved in someone else’s business. If they cannot operate it within the parameters set for them, they should not be in that business.
“Tax incentives are an investment in the future”
It is my taxes that will rise once again to provide that investment. Right now, I an not prepared to invest in a risky investment any more than I have.
Which actually goes to this opinion:
This entire project was not thought out from the start to the finish or, if it was, it was never shared with the community since the citizens of PG are the actual people who are on the hook for funding much of it.
People talk about the PAC not being out in the open as far as funding. It is an easy hit because it is considered a special interest group. Boundary Rd. may actually be a much larger “investment” that has not been given the opportunity of public scrutiny. It too is being developed for a special interest group.
My favorite part of the story….
“Councillor Lyn Hall says seeing a staff report put before him on a matter that had not yet been presented to Council left him feeling âham strungâ and âboxed inâ and he felt it was Councilâs responsibility to decide what action, if any, should be taken on a letter. “
As she got up to speed in her new role perhaps Ms. James has reviewed some of the decisions this group has made in the recent past and decided it is best that they be spoon fed. I like her!
Have to crawl before you walk Lyn:P
“A timely response?” How about a plain and simple NO! How is that for timely? Would work for me and my wallet.
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