Purpose:
To stimulate private investment in the CIP Project Area and to promote the undertaking of building improvements and development on vacant land.
Grant Amount & Disbursement:
The total amount of the grant provided will not exceed the value of the work that resulted in the reassessment.
This grant excludes the education and County portions of the tax bill. The Township is only able to rebate the municipal portion of the tax bill.
The grant is provided over 5 years, where the tax increase is paid back to the applicant as follows:
- 100% rebate in year 1
- 80% rebate in year 2
- 60% rebate in year 3
- 40% rebate in year 4
- 20% rebate in year 5
The owner is paying based on the full assessed amount in year 6.
The Grant will be disbursed as follows:
- 100% after payment of taxes, once the property has been reassessed by MPAC, following completion of the CIP project
The Township will collect the full amount of property taxes owed by each of the years of the program's applicability and will issue the grant to the approved applicant after final tax bills for each year have been collected. If the tax bill is not paid in full, the Township will cancel all future grants and collect past grants made as part of this program.
The grant will not be provided based on a graduated reassessment by MPAC if done prior to completion of the project.
Eligible Costs:
Any improvements to properties/buildings in the CIP project areas which meet the CIP goals, objective, and design guidelines.
Additional Requirements:
- Minimum increase in assessment: $25,000, directly related to a building permit for CIP improvements.
- The Tax increment Grant may be received by a property owner and/or assignee in combination with any other incentive program offered by the CIP.
- Property owners and/or assignees will be required to submit a complete application to the Township describing, in detail, the improvements that are planned. The application must be submitted to the Township and approved prior to the improvements being made in order to be eligible for this program. The Township will review the application to ensure that the improvements are eligible. For the purpose of this program, eligible improvements are deemed to be improvements that will lead to an increase in the property's assessed value by improving the physical condition of the building and/or property in a manner that is consistent with the CIP's intent.
- Projects are required to be in compliance with the Township's other By-laws and policies, including zoning and building regulations.
- The subject property shall not be in a position of tax arrears or any other financial obligation towards the Township.
- This program does not exempt property owners from an increase in municipal taxes due to a general tax rate increase or a change in assessment for any other reason after property has been improved, except by reason of an assessment appeal.
- The grant will be forfeited and repaid to the Township if the owner makes the decision to demolish or alter the property in a manner that does not comply with the Community Improvement Plan before the grant period elapses.
- If the property is sold prior to completion of the project and receipt of the grant, subsequent owners may re-apply to the Township to be eligible to receive the grant.
- If the property is sold after completion of the project, and while the tax increment grant is being received, the grant expires upon transfer of ownership. Subsequent owners are not eligible to continue receiving the grant for the tax increase associated with the project which has already been completed.
- The grant amount will be established after the final inspection of the improvements in accordance with the Ontario Building Code, and the Municipal Property Assessment Corporation (MPAC) has established a new assessment value based on the building permit for the CIP project.