A few changes are set to happen for North Battleford’s land pricing and tax incentive policies at City Hall.
A one-year sale of residential properties in Killdeer Park and Fairview Heights is in the works, as the city looks to sell more lots in the face of a slow housing market. A new incentive for renovating commercial buildings on the corridor route is also coming.
Other recent incentives aimed at revitalization are set to continue. City administration is recommending extending the downtown incentive program for another 24 months. They also favour keeping in place the disincentive tax on vacant properties both downtown and in the commercial corridor.
Council members sitting as the planning committee Tuesday were generally supportive of the recommendations presented by administration. The next task for administration will be to prepare a policy for council’s consideration and approval.
Following is a rundown of recommendations outlined in the report, prepared by City Planner Ryan Mackrell.
One-year sale on Killdeer/Fairview residential properties, plus incentives for new residential:
Administration is recommending a one-year sale on residential properties in Killdeer Park and Fairview Heights, at 10 to 15 per cent off the currently listed price.
This is the best option, said administration, given the downturn in the market and the city’s current high inventory of residential lots.
Administration also recommended incentivizing new residential builds. The most likely option would see 100 per cent of the municipal portion of property taxes exempted through years one to three, followed by 75 per cent in year four and 50 per cent in year five.
The other option is to follow this incentive for infill lots only, and set the incentive for Killdeer and Fairview at 100 per cent in year one, 75 in year two, 50 per cent in year three and 25 per cent in year four. However, administration is not recommending this latter route, given the number of neighbourhood lots available.
Mackrell noted housing builds were significantly down across the province, and didn’t see things picking up anytime soon.
“I think it will be a tough year in 2019 if we don’t incentivize anything,” said Mackrell.
The city is also proposing a one-year trial for the land sale and residential incentive, which Director of Planning and Development Jennifer Niesink said might spur on interest.
The general direction from council was for an aggressive approach. They expressed support for a one-year trial period and a sale price of 15 per cent off.
Mayor Ryan Bater said this was called for, pointing to the debt that was borrowed to service Killdeer.
“Every year that we’re not selling those lots is a year that we’re paying for debt servicing,” said Bater, adding, “It makes more sense to be as aggressive as we can.”
Councillor Kevin Steinborn also expressed support for a reduction of 15 per cent.
“I’d like to see those lots start to move,” said Steinborn.
Councillor Kelli Hawtin, who chaired the meeting, also favoured 15 per cent, provided the price “covers costs and debt servicing.”
Mackrell noted the city would lose money reducing the price any more than 15 per cent.
Additional 24 months for downtown incentive policy:
Administration said they believe the wide-ranging downtown incentive policy is working.
“Let’s have it keep working,” was Niesink’s comment.
The existing Downtown Incentive Policy runs another three months. Administration recommended keeping it going as it is for another 24 months. Council members were supportive.
Five applications under the policy were approved: the Capital Theatre renovation, the new theatre construction, the new Giant Tiger build, Linda’s Pawn renovations and the Moon’s Kitchen renovation.
Mackrell also noted other improvements were done on a dozen other properties and businesses downtown outside of the policy.
“Just bringing more people downtown will create more of that spin-off that you’ve just seen from the construction,” said Mackrell.
Corridor disincentive tax stays:
The key corridor disincentive tax, which saw higher mill rates imposed on vacant properties throughout the 100th Street-Railway Avenue corridor, is also seen as working.
However, Mackrell noted that due to Cities Act provisions, council cannot increase the mill rate on these properties any further. He explained the Cities Act only allows them to go nine times higher than the lowest mill rate.
“We’re maxed out on how much we can increase it now,” said Mackrell. Instead of “hitting them with a stick,” he suggested offering a “carrot.”
Commercial incentive for building renos on 100th Street-Railway Avenue corridor:
Administration recommended targeted incentives for renovation of buildings along the key 100th Street-Railway Avenue corridor. Specifically cited were the old police station, the former Shell station and a number of Railway Avenue properties.
Administration recommended a three-year, 100 per cent municipal tax exemption for renovations valued over $250,000 and four years for $500,000-plus.
No to outside-of-downtown commercial incentive:
This has been a particularly hot topic given the application last fall for a tax incentive for a proposed strip mall on 1542-100th Street, outside the downtown area.
That project looks like it is out of luck. Administration’s report stated it “does not recommend incentivizing commercial properties outside of the downtown in 2019.” Mackrell indicated it could hinder potential developments in the downtown.
“It was tough to justify with everything going on downtown,” said Mackrell. “I think any incentive for a commercial new build would hurt downtown right now.”
There was sentiment from Mayor Bater and others on council to include a clause where there is an incentive granted when a vacant or derelict building is demolished and a new build goes up in its place outside downtown. Mackrell indicated that could be included in the policy.
