Public Discussion on RTE Continues

By 250 News

Prince George, B.C.-  When it comes to extending a tax break for  downtown development (revitalization  tax exemption) Prince George –Mackenzie MLA and Minister of Forests and Range Pat Bell says he has heard plenty of information  on the pros of extending a tax break past 10 years, but not too much on the negative side.

Speaking on the Meisner program on CFIS FM this morning, Bell  says most investors expect to get a return on their investment within 10 years, because anything beyond that is not considered a good business plan.  "In today's world, if you can't make your money back in five, six or seven years,  boy, you're probably not going to consider that investment."

Bell says there is also the  matter of committing  future City Councils to  that long term break "If you  are talking about  20 years,  you are potentially committing up to 7 Councils  to that tax regime, and that's a pretty significant committment.  So  I don't want to ever say 'never' you want to listen to the arguments on both sides of the equation but clearly in making a decision of that nature there are two issues.  One is, is  it really needed because the investment cycle would indicate to me that you want to make a return sooner than that, and second of all, do you really want to commit seven future Councils to a specific tax regime?"

The City of Prince George offers a tax break of up to 10 years on the assessed value of improvements to downtown properties.  There is a push underway to have that increased to 20, 30 or as long as 40 years in an effort to spur development in the downtown. 

A presentation by the Downtown Business Improvement Association calls for public discussion on the issue. 

Currently,   under the Municipal Charter,  the maximum  break allowed by law is 10 years. A recent report presented to City Council indicated  it is highly unlikely  the Province would approve the longer terms because  of the precedent it might set.  The report’s authors also indicated the Union of B.C. Municipalities would  not support such an extension and the UBCM would  have to be on side for this kind of  extension to be approved by the Provincial Government.

The matter of  extending  the  Revitalization Tax Exemption is now open for public input.   The City of Prince George will accept  written submissions on the idea  until 5:00 p.m. July 12^th.  Submissions can be mailed to the City of Prince George, or  sent via email to;  RTEsubmissions@city.pg.bc.ca

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