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.