Redevelopment of Existing Commercial Properties for Commercial Purposes

By mmuise
Description:

Under the tax incentive strategy a tax incentive is provided for redevelopment of existing commercial properties for commercial purposes.


Comments on Funding:

The incentive is based on the increase of the real property tax assessment as a result of the project. The annual incentive is calculated on the increase assessment portion of the municipal component of real property tax subsequent to the project being completed. The incentive allows for the temporary graduated suspension of only the increase of the municipal portion of the assessed value of properties for a period of five (5) years. Any increase in the property assessment or the tax rate levied by the City of Charlottetown during the term of the program is not covered in the Incentive Program. The incentive is a diminishing incentive over a five-year period as follows:
1. 90% municipal property tax in Year 1 on the portion of increased assessment;
2. 75% municipal property tax in Year 2 on the portion of increased assessment;
3. 60% municipal property tax in Year 3 on the portion of increased assessment;
4. 45% municipal property tax in Year 4 on the portion of increased assessment;
5. 30% municipal property tax in Year 5 on the portion of increased assessment;
6. 0% year 6 and beyond.

Deadline: Rolling deadline
Eligibility:

Applicants must:

  • be based within the downtown core;
  • redevelop existing commercial properties for commercial purposes;
  • have received approval from Innovation PEI;
  • demonstrate a commitment to environmentally sustainable construction and ongoing operational practices.
Application Steps:

Applicants must: 1. make application for the program within one year from the date of issue of the relevant Building Permit otherwise the Program will not apply to that project.

2. enter into an agreement upon completion of the project.

Documentation Needed:

Applicants must submit:
1. proof that property taxes are not in arrears, that the project complies with all City of Charlottetown Bylaws and Zoning and Development requirements, and that the project has received all the approvals, certificates and licenses that may be required, at any time and for any reason, by the City of Charlottetown;
2. documentation demonstrating that there has been an increase in the property tax assessment and showing the amount of the increase over the Base Year;
3. annually by December 15th information to the satisfaction of the City of Charlottetown demonstrating that the real property taxes for the property have been paid in full.

Other Things to Note:

A developer shall make application for the program within one year from the date of issue of the relevant Building Permit otherwise the Program will not apply to that project. The onus to make a timely application is upon the Developer.

About the author
mmuise