Tax Increment Grant Program (TIG)

By mmuise
Description:

The TIG Program provides tax grants to help property owners with the remediation and redevelopment of contaminated sites. This program provides a grant equal to the full amount, or a portion of the amount, of the property tax increase after a property is redeveloped and reassessed. The City uses the difference in taxes between the pre-remediated and redeveloped site to provide a grant to the applicant for some costs related to environmental remediation.


Comments on Funding:

Funding is a grant equal up to 100% of the Cambridge and Regional tax portion of property taxes per year for a maximum of ten years or the total cost of remediating the land and buildings minus the total of all grants, loans and other tax assistance provided, whichever occurs first.
The City uses the difference in taxes between the pre-remediated and redeveloped site to provide a grant to the applicant for some costs related to environmental remediation.

Deadline: Continuous Intake
Eligibility:

Brownfield sites must meet the following eligibility criteria:

  • The site must be located within the City of Cambridge;
  • The applicant must be the registered owner of the site or the assignee of the owner and must demonstrate clear title and responsibility for the land at the time the TIG is approved by the City of Cambridge Council and Regional Council;
  • The applicant cannot be responsible for causing the on-site contamination that requires remediation;
  • The remediation and redevelopment undertaken must result in a minimum increased property assessment value of $100,000;
  • The Phase One and Phase Two Environmental Site Assessments (ESA) must be completed by a “Qualified Person” as defined by Ontario Regulation 153/042, as amended, before a TIG application can be submitted;
  • Redevelopment plans must meet all approved policy and should comply, where feasible and appropriate, with applicable design guidelines;
  • The site must not be in a position of tax arrears or have any other outstanding municipal financial obligations; and
  • Application for a Tax Increment Grant must be made prior to the issuance of a building permit(s) for the redevelopment;
  • Only brownfield sites that have been remediated and redeveloped are eligible to receive TIG funding.
Application Steps:

Applicants:

1. are required to contact the City of Cambridge or the Region prior to submitting their application and should be made aware early in the process of the following:

a) TIG payments do not begin until after remediation and redevelopment of the brownfield site has taken place, and may be several years after an initial application before a grant payment is made;

b) site owners are still responsible for property tax payments during and after the remediation and redevelopment period; and

c) TIGs are capped at the lower of the net eligible costs of remediation or the sum of the annual tax increment for 10 years after the redevelopment.

2. must make their application as early in the remediation process as possible. The costs of any work undertaken more than 12 months prior to an application are generally ineligible for the grant.

3. must mail or deliver the Application Form (Part B, C and D) to the City of Cambridge Senior Reurbanization Planner (listed in Part A).



4. Applications will be reviewed by staff at the City of Cambridge and the Region in order to determine program eligibility. Once eligibility has been determined, staff will make recommendations to their respective Councils.

5. Applicants who receive approval for the TIG are required to enter into a formal Tri-Partite Legal Agreement with the City of Cambridge and the Region. The interim agreement will set out the estimated TIG payment and schedule, the terms and conditions, the obligations of the municipalities and property owners, and the defaults and remedies.

6. The agreement will be finalized only after the actual eligible remediation costs have been verified, the final post-remediation and redevelopment assessment by MPAC has been completed and all conditions have been met by the applicant.

Documentation Needed:

Applicants must submit:
1. 2 copies of the completed Application Package and all supporting documentation (one each to the City and Region);
2. a letter of intent;
3. copies of the completed Phase One and Phase Two Environmental Site Assessments (ESAs) and a Remedial Work Plan containing cost estimates. Ensure that all ESAs, other studies and the Remedial Action Plan have been prepared
by a “Qualified Person” as defined by Ontario Regulation 153/04, as amended. Ensure that the name and contact information of the Qualified Person is included on any documentation provided.
4. Planning Applications and concept plans for redevelopment.

Upon completion of the remediation work, the Applicant files a Record of Site Condition with the Ministry of the Environment. The Applicant then provides 2 copies of the RSC and MOE acknowledgement to the City of Cambridge (these must be submitted prior to commencing any development or redevelopment).
Once the development is complete, the property will be assessed by MPAC. The property owner will be issued a new tax notice based on the postremediation and redevelopment assessment value. Applicant forwards the post-remediation and redevelopment assessment to the City of Cambridge Financial Services Division.

Other Things to Note:

Contact the Senior Planner, Reurbanization for more information.

The tax increment grant was reduced by 10 per cent (from 110% to 100%) to match the region's program. (https://www.cambridgetoday.ca/local-news/city-revising-its-brownfield-remediation-incentives-3815928)

About the author
mmuise