Yorkton businesses, at least those meeting certain criteria, may be eligible for new rebates and tax breaks from the city.
At the first meeting of the latest edition of Yorkton Council Monday a new Business Improvement Incentive Program Policy received unanimous support.
In outlining the new policy City Manager Lonnie Kaal explained, the City of Yorkton initiated an EnterpriseZone Incentive Program in 2005 to encourage property development in a specific area of the City.
The program expired years ago, and recently there has been discussion about initiating a new program, she continued.
With that in mind, consultationswith members of the Yorkton Chamber of Commerce, Yorkton Business Improvement District and other key individuals in the community have taken place, said Kaal.
From the discussions City Administration created a draft policy, said Kaal, adding the document was reviewed by the Economic Development Committee, who after making some minor edits, has recommended that Council approve the incentive programs.
Kaal said the uniqueness of the program put forward is two-fold.
*The Yorkton Business Improvement Districtis willing to share in funding the Fa莽ade and Site Improvements Incentive Programfor those properties that are located within the District.
*The targeted market for those able to qualify for Business Creation and Expansion Incentives are those that are 鈥渓ocally owned businesses.鈥� If the business is incorporated, the majority of shares must beheld by individuals who reside within the City of Yorkton. It is the responsibility of the applicant to provide documentation to support 51 per cent local ownership.
Generally, the purpose is to encourage all commercialproperty owners in the City of Yorkton to enhance the appearance of their buildings/properties and to provide incentives for the creation and expansion of locally-owned businesses, detailed Kaal.
Applications would be available January 2021 for the upcoming tax year.
The objectives are to:
*Encourage the enhancement of fa莽ade and site improvements for all businesses in the City. The City will rebate one-third of eligible costs up to a maximum of $10,000 (ie: total costs of up to $30,000); and for those that are within the Yorkton Business Improvement District a further one-third of eligible costs up to a maximum of $10,000 will be provided by YBID.
*Encourage the expansion of locally-owned businesses such that those that improve the value of their property by more than $50,000 willbe eligible to receive tax abatements for five years on the improved portion/assessment of the property.
*Encourage the re-investment into vacant commercial buildings such that those that occupy and upgrade vacant properties may be eligible for a complete tax holiday on the entire property in year one and modified tax rebates in year two & three. This would also apply to vacant units within a largerbuilding (ex: Linden Square Mall).
The programs are targeted so they are deemed affordable while still providing the desired results:
*Both the City and YBID have agreed to fund the Fa莽ade and Site Improvement program by providing $50,000 each annually.
*Phasing in taxes on increased assessment does not technically cost money (it does not need to be funded from the budget), but growthin tax revenue will be deferred as it will be five years before these increased values are fully taxed.
*The Vacant Building Tax Incentive Program is anactual cost as properties that have been levied taxes in the past could receive 100 per cent abatement in year one. While it is difficult to determine the impact, the estimated cost of these incentives is $50,000.
Incentives are a cost against tax revenue and$100,000 expenditure for incentives with regards to these programs have been included in the 2021 operating budget, said Kaal.
Councillor Darcy Zaharia said 鈥渒udos鈥� were due to City Administration to working with YBID to create the policy.
But, Zaharia did want to know what happens if the money is used up and someone else applied.
Applications will be 鈥渙n a first come, first serve basis,鈥� said Kaal, adding if someone applied after the money is allocated they would simply be put at the top of the list for the following year if the program is continued after 2021.
Along similar lines Coun. Goulden wanted to know if unused funds would roll forward.
鈥淭hat would be up to Council,鈥� said Kaal.
Coun. Ken Chyz said from being involved with YBID he could input YBID was not planning to roll unused dollars forward in terms of their portion of the funding.
Other Councillors were simply in favour of the policy in general terms.
Coun. Chris Wyatt said he liked the idea, in particular the aspect focused on filling vacant properties, calling that 鈥渁n excellent idea.鈥�
鈥淚 think this is a fantastic program,鈥� said Coun. Dustin Brears.
鈥淚 am absolutely thrilled with this,鈥� added Mayor Mitch Hippsley.
