New Suite of Incentives for Downtown Development to Be Produced
By 250 News
Tuesday, August 10, 2010 04:25 AM
Prince George, B.C.- The City of Prince George is going to try to produce a complete incentive package to encourage development in the downtown.
That is the decision following the examination of the 8 submissions received which offered comment on a consultant’s report on extending the tax exemption to 15, 20, 30 or 40 years.
The consultant concluded there was no business case for such an extension. Most of the feedback seems to support that conclusion. The current tax exemption bylaw will expire at the end of next year.
Council has supported the development of a new bylaw which would renew the program .
The submissions to the City noted soft costs, such as fees, present barriers to development. Banks won’t provide financing for those fees as there is nothing tangible attached to the loan.
While the fees can’t be removed entirely, the City could look at a plan to further reduce those fees. For instance, the current fees for landscaping must be submitted up front and the deposit is 120% of the cost of the landscaping. It has been suggested the deposit amount be reduced, and if the developer fails to provide the landscaping, the amount owed could be tied to the tax bill.
Prince George already has some of the lowest Development Cost Charges in the province, and recently passed a bylaw which further reduced Development Cost Charges in the downtown.
Staff will also look at some incentives that provide immediate benefit to the developer as opposed to stretching benefits out over a longer period of time.
The staff report also calls for a comprehensive development plan for the downtown saying it is necessary to fully describe Council’s plan for downtown revitalization and development.
Public feedback of the Revitalization Tax Exemption report indicated no support for an extended tax exemption.
In a detailed report, unanimously supported by its Board of Directors, Initiatives Prince George says the developers they spoke with expressed concern on any development that relied on long term tax breaks. They told IPG any development should be able to stand on it’s own merits. IPG says developers are looking for strong signals of commitment from the City and the Province to move forward with planned “catalytic projects” such as the wood innovations centre or the RCMP building.
In its submission to the City, the Downtown Business Improvement Association proposes a suite of incentives for residential and commercial including direct cash incentives for each new housing unit started and a cash allowance for new underground parking spaces created.
City Staff intend to have a proposed suite of incentives back to Council as soon as possible with hopes it can be ready for implementation in January of 2011.
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Posted by: Retired on August 10 2010 10:37 AM
If there is an opportunity to invest some money in a relatively sure thing, then business people will invest.
The invested in a total rebuild of the CH shopping Centre a few years ago. They invested in building a whole series of box stores along HWY 16 from Ferry to Domano. They invested in building hotels and a casino at or near the intersection of HWY16/97.
The City as well as the Province helped by increasing as well as improving the infrastructure to support those developments which were partly paid by Development Cost Charges.
The Casino could have been forced to build downtown by not allowing the re-zoning. The City did not do that.
The City allowed the PG main branch of the BoM to relocate on Central contrary to the OCP.
The City has made the wrong decision several times. They are right now engaged in the same exercise of "wrong decision making" with the golf course land proposals.
I say developers will develop downtown when they feel that is in their best interest. It makes no sense to develop in a place where your investment is at more risk than in another location. So far, for the type of capacity that was needed, downtown simple did not fit the bill.
They are right. Show that you mean business, City of PG. Show that you are willing to invest in the downtown. What have you got planned? Rather than spending the time on golf course lands to plan, what does the downtown look like that the City wants? Make that connection to the river that the Millar group wants and you endorsed. Bring Studio 2880 downtown. Create a Boulevard out of Dominion street. Dedicate a whole city block to a true downtown park in the middle of the retail area. Build a year around farmers market as part of that park.
Come on, get those creative juices flowing and implement some of those SGOG things.
THAT is what developers want to see, that there is a reason to go downtown. If there were, they would not be complaining about those fees.