Council Says Yes to Ammending Tax Benefit Deal with NDIT
Prince George, B.C.- Council for the City of Prince George, has approved the amendment to its downtown revitalization benefit agreement with Northern Development Initiative Trust.
Under the plan, which was designed 5 years ago to kick start development in the downtown of Prince George, developers could apply for an up front benefit, or a tax break over ten years, The amended agreement allows a developer to qualify for both, as long as the total amount doesn’t exceed the maximum tax estimate that might have been otherwise collected over the ten years.
For example, if a property is likely to be taxed at $200 thousand a year, the total entitlement would be $2 million dollars. Under the new agreement, a developer could get $1 million up front and get a $100 thousand dollar break in their taxes in each of the next ten years. The City would collect the $100 thousand dollar balance over that 10 year period and remit those dollars to NDIT to replenish the funds used for that up front benefit.
The agreement also makes the City fully liable for the funds in the event the property owner fails to pay their taxes.
The amendment has been approved by the NDIT Board.
Are you kidding me? I don’t think that was the intent when the province sold BC Rail. That’s OK, elections are coming. Time to clean house.
The money is coming back to replenish NDIT’s fund.
The problem is that the City is not collecting the $200 thousand a year it would normally receive. It is collecting only $100,000 peer year which goes to NDIT. The other hundred thousand is a tax reduction.
The full $200,000/year in tax is being gifted to the owner of the development ….. the implication is that the more such tax benefits are given to a few, the more those who have no access to such benefits will have to pay in taxes to maintain the City.
When one takes a close look at the program, there are some benefits to the City since they are using existing streets and services.
However, I think the citizens who have to make up the net loss in taxes after the few savings are calculated, deserve to see that calculation and see how much, if any, this will automatically increment the annual tax increases we have been burdened with over the last 2+ decades.
Workingstiff you realize that this is the city not provincial??? It must be the Liberals fault-Alternative dipper facts!
Lets keep in mind that there is no such thing as a tax break. If someone gets a 10 year break then someone else has to pay their taxes. This is what is happening to all these tax breaks downtown.
If we did not have these tax breaks, perhaps we would get a reduction in taxes, or at least no increase.
The whole concept of taxation in Prince George needs to be looked into.
This is what holds PG back IMO… The constant focus on downtown development at the expense of the rest of the city. Ideas like this tax break scheme, or putting UNBC residence downtown. It’s about time the city stop trying to control where the city grows and just let the chips fall where they may.
I think the downtown is a dumb location. It’s literally right across the river from three refineries and two pulp mills. On a bad day it can drive ones sinuses nuts, so why would anyone want to develop there unless it’s tax free. I think the focus for high density residential should be between Massey and Ferry or the industrial area between Central and Ospika. Clean air and lots of elevation from ground water for underground infrastructure like parking. Don’t give away any tax benefits, just allow for development in an area that has a future and watch the city grow.
Rotten deal, the City closed a same kind of business, the Connaught Inn a few hundred feet away. The City should offer the same deal there.. Looks like older business properties in Pr Geo are subject to close and tear down.
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