GrantNew BrunswickProperty Development

Downtown & Heritage Properties Financial Incentive Program

Grants under this Policy aim to incentivize Redevelopment and revitalization of vacant and under-

utilized Downtown Core Community Improvement Plan (DCCIP) Area, and Designated Heritage Properties, Downtown Business Improvement Area (BIA) or Central Business District (CBD) Zone Properties.

This Policy applies to privately-owned DCCIP Properties, BIA or CBD Properties, and Heritage

Properties.

Offered by City of Moncton (Economic Development Department)

Amount

Redevelopment Grants paid on an annual basis for up to 5 years for projects with a Final Building Permit Value of less than $10,000,000 and up to 10 years for $10,000,000 or more (City-changing Projects up to 3 years, extendable by 2 years with at least $500,000 invested in Municipal Infrastructure), annual disbursements not to exceed the Incremental Revenue; Building Permit and Planning Fee Equivalent Grant equal to the value paid by the Applicant to the City in fees

Quick eligibility check

Years in business
No minimum stated
Employees
No limit stated
Revenue
No limit stated
Legal structure
No requirement stated
Location
New Brunswick

Who can apply

This Policy applies to privately-owned DCCIP Properties, BIA or CBD Properties, and Heritage

Properties.

  1. The following are the minimum eligibility requirements that must be met for Grants under this

Policy:

  1. The Property for which the Grants are sought is a DCCIP Property, Heritage Property, or

BIA or CBD Property.

  1. The Property is not in violation of any City By-Laws.
  2. The Applicant demonstrates to the City, and the City establishes that the proposed

Development on the Property qualifies as at least one of the following:

  1. A Redevelopment of Surface Parking Lot.
  2. A Development on a Vacant Property or Under-Utilized Property.
  3. A Redevelopment of a Property which involves the demolition of Non-Residential

Use, Residential Use or Industrial Use buildings. Conversion of an Under-Utilized Property having a Non-Residential Use into a densified Residential Use of upper-level floors (e.g. apartments).

  1. Rehabilitation or adaptation of the use of an existing Building.
  2. The construction of a Parking Structure which must include Bicycle Parking and/or EV

Ready Parking.

  1. The proposed Development for the Property fully complies with City By-Laws.
  2. Where new housing is proposed in a Development, a minimum of 10% of all Dwelling Units

are new affordable housing units.

  1. The Final Building Permit Value of the proposed Development must be $1,000,000.00 or

greater, unless the proposed Development is with respect to a Heritage Property or with respect to a City-changing Project.

  1. The Final Building Permit Value of the proposed Development for a Heritage Property

must be $500,000.00 or greater. viii. In order to be eligible for a Redevelopment Grant, the Development of a BIA or CBD Property must qualify as a City-changing Project as shown in the designated map (Schedule E).

  1. An Application for a Building Permit and Planning Fee Equivalent Grant must be for a

Development located on a Vacant Property.

  1. The Applicant must submit an Application with all required information to the City before a

Building Permit is applied for the proposed Development.

  1. The following conditions are applicable for disbursements of any Grants under this Policy:
  2. Start of Construction of a proposed Development must commence no later than two (2)

years following the date that Council approves an Application, otherwise the Application shall automatically expire and be null and void, without any further requirements of the City or the Applicant.

  1. The Development has received the Final Building Inspection Review.
  2. The Property is not in violation of any City By-Laws.
  3. All required Affordable Housing remain affordable for a minimum period of 10 years.
  4. If the Development includes new affordable housing units, and where the affordability

criteria are met through a CMHC or provincial subsidization program, which said program includes agreements or other conditions to monitor and enforce rental rates for compliance with the said affordability criteria, the Applicant must submit documentation to the City indicating acceptance into said program showing that all new affordable housing units will continue to be affordable throughout the required 10-year period under.

  1. If the Development includes new affordable housing units, and where the affordable

criteria are met through separate means and not through a CMHC or provincial subsidization program, the Applicant must submit documentation to the satisfaction of the City (e.g. annual rent rolls) indicating that units continue to be affordable throughout the required 10-year period.

  1. All applicable building and development fees, including but not limited to Development

Permit, the Building Permit, rezoning for a Municipal Plan By-Law or Zoning By-Law amendment, Variance Application, and other Planning Advisory Committee applications, must have been paid in full to the City by the Applicant. viii. The Taxes and BIA Levy on the Property for which an Application is made are paid in full and not in arrears.

  1. The Applicant must not: be bankrupt; have received orders against them; have made

assignments for the benefit of creditors; have taken the benefit of a statute relating to bankrupt or insolvent debtors; or have had an order made or a resolution passed for their winding up.

  1. A Grant Payment Agreement has been signed by the City and the Applicant.
  2. All other conditions under this Policy and the Grant Payment Agreement have been met.

The evaluation system below determines eligibility under this Policy. The system evaluates Development proposals to achieve the City’s desired development objectives. To be eligible for the Redevelopement Grant, a Development must achieve a minimum of 100 points based on the createria below.

About the funding

  1. The following Grants are available to eligible Applicants under this Policy:
  2. Redevelopment Grants including those relating to the Municipal Infrastructure component;

and

  1. Building Permit and Planning Fee Equivalent Grants.
Show all funding details

“Building Permit and Planning Fee Equivalent Grant” means a grant issued under this Policy being equal to the value paid by an Applicant to the City in fees for a Development, for the following:

  1. The terms of Redevelopment Grants are as follows:
  2. With the exception of City-Changing Projects, Redevelopment Grants shall be paid on an

annual basis for up to 5 years for projects with a Final Building Permit Value of less than $10,000,000, and up to 10 years for projects with a Building Permit Value of $10,000,000 or more.

  1. Subject to 3.iii., Redevelopment Grants for City-changing Projects shall be paid on an

annual basis for up to 3 years.

  1. A Redevelopment Grant for a City-changing Project may be extended by an additional 2

years where the City-changing Project involves the installation of new Municipal Infrastructure, subject to the following conditions:

  1. The demonstrated need to install Municipal Infrastructure to enable the proposed

City-changing Project;

  1. The Applicant must demonstrate that at least $500,000 of capital has been invested

in Municipal Infrastructure following the date of the Application;

  1. All construction work related to Municipal Infrastructure must be inspected and

approved by the City; and

  1. Only one City-changing Project per Lot is eligible unless a proposed Development

involves multiple City-changing Projects on adjacent Lots in which case each City- changing Project would be eligible for the 2-year extension.

  1. Additional conditions for disbursements of Redevelopment Grants are as follows:
  2. A request to commence receiving Redevelopment Grant disbursements must be submitted

by the Applicant no later than five (5) years following the date that Council approves an Application, otherwise the Application shall automatically expire and be null and void, without any further requirements of the City or the Applicant.

  1. At the time the Applicant makes the request under 4.4.i. of this Policy, the City will calculate

and apply the Redevelopment Grant Formula, using Residential Use and Non-Residential Use percentages from the most current and up to date Tax Assessment or Tax Notice. The Residential Use percentage is calculated as the Residential Assessment divided by the Total Assessment, and the Non-Residential Use percentage is calculated as the Non-Residential Assessment divided by the Total Assessment. This percentage breakdown of Residential versus Non-Residential use will be used for the duration of the grant payout and will not change in any year thereafter. At the time the Redevelopment Grant Formula is applied and calculated by the City, the annual Redevelopment Grant disbursements shall be determined and established. The Redevelopment Grant disbursement amounts determined and established at that time shall be the Redevelopment Grant disbursement payable by the City to the Applicant, and, subject to 4.4.iii., the City will not recalculate the Redevelopment Grant disbursement payable in subsequent years, despite any changes in Residential Use or Non-Residential Use percentages.

  1. Although the Redevelopment Grant Formula is based on Final Building Permit Value, the

maximum annual Redevelopment Grant disbursements to be made to the Applicant shall not exceed the Incremental Revenue received by the City annually for the subject Property. For the sole purpose of confirming that the Redevelopment Grant disbursements do not exceed the Incremental Revenue for a Property each year a Redevelopment Grant disbursement is payable to an Applicant, the City will perform a verification using the Redevelopment Grant Formula.

  1. If in a given year the verification performed by the City as provided in 4.4.iii. does result in

the Redevelopment Grant disbursement being higher than the incremental increase of revenue for a Property, the disbursement to be received by the Applicant for that year will not be the Redevelopment Grant disbursement as determined and established at 4.4.ii., but will instead be calculated as the Incremental Revenue generated by the Property in that year multiplied by the percentage of portion of Redevelopment Grant, established in the Redevelopment Grant Formula, for that given year. Schedule “C” provides examples of this scenario.

The Grant Disbursements will be determined by applying the Redevelopment Grant Formula which will be paid to an Applicant on a declining scale over the terms of the Grant Payment Agreement.

Grant Payout Formula:

(Residential Building Permit Value x Grant Rate Residential) + (Non-Residential Building Permit value x Grant Rate Non-Residential) Downtown Core Community Improvement Plan Area & Designated Heritage Properties Financial model example of $10 million development:

  1. offset costs involved in Redevelopment of properties including but not limited to Environmental

Remediation, sustainable development features and site preparation; and

  1. offset costs relating to certain building and development fees payable by Applicants to the City.
  2. Development Permit;
  3. Building Permit;
  4. rezoning for a Municipal Plan By-Law or Zoning By-Law amendment; and
  5. Variance Application and other Planning Advisory Committee Applications;

These Grants do not include plumbing permit or demolition permit fees.

Similar programs

ProgramTypeAmountStatus
Accessory Dwelling Unit Grant ProgramGrantA grant in the amount of $10,000, disbursed upon approval of the Application after the project's final inspection, with one application per propertyOpen
Affordable Housing Grant for Existing Affordable HousingGrantGrant equal to up to 100% of the fees and costs for building and development permits, demolition permits and variances, based on a prioritization score of up to 400 points and prorated by the percentage of the building with affordable or sleeping unitsOpen
Affordable Housing Grant for New DevelopmentsGrantA grant equaling up to 100% of the fees and costs for building and development permits, demolition permits, subdivision approvals, Municipal Plan and Zoning By-law amendments, variances and Planning Advisory Committee applications, based on prioritization scoring (maximum 450 points) and prorated by the percentage of the building that includes affordable or sleeping unitsOpen
Agri-Land Accessibility and EnhancementGrantUp to 50% (re-development of inactive land) or 30% (other land elements) of eligible costs, maximum combined annual contribution of $7,000 for program elements 1 – 5 (not to exceed a combined total of $35,000 over April 1, 2023 – March 31, 2028)Open