A tax incentive bylaw in the works in Morinville could assist with the development of vacant lots in downtown Morinville. – File Photo
By Colin Smith
A program to provide an incentive for new commercial and mixed-use development or redevelopment along 100 Street and 100 Avenue was favourably received by members of council at its regular meeting on Tuesday, Oct. 8.
Council approved the first and second reading of the Coeur de Morinville Non- residential Tax Incentive Bylaw, which sets out the program.
It would reimburse developers for the required upgrades, replacements, or installation of new storm, sanitary, and waterlines for a property in the area.
The reimbursement of a maximum of $40,000 in project costs would come through a reduction of up to 50% in municipal tax on the property assessment increase resulting from the development.
Economic Development Officer Stephen Novak told council that the aim of the bylaw is to deal with the servicing factor that discourages development in the Coeur de Morinville, in comparison with greenfield areas.
That supports the strategic plan priority of attracting new business and supporting existing business, along with increasing the town’s non-residential tax base.
The Morinville & District Chamber of Commerce petitioned for the development of an incentive program at the request of their membership, Novack added.
In developing the bylaw Administration sought input from the chamber and consulted with it on the completed draft.
Novak said the group supported the bylaw as presented.
First and second readings of the bylaw were moved by Councillor Ray White.
“Over a long period of time we have seen a lot of vacant lots that stayed vacant,” White said. “There hasn’t been a lot of new and additional building on either 100 Street or 100 Avenue. When you dig deeper as to why it’s apparent that there needs to be some incentive-based improvements in that area of town,” he said.
“This is a really good first step for getting some of those lots utilized by businesses that are needed in this town.”
Mayor Simon Boersma agreed that the measure could help level the playing field for Coeur de Morinville development.
“I think it’s a great incentive for businesses,” he said. “Greenfield has pipe right to the curb, and for them not to have that [is a problem.] It’s great to see this changing.”
Councillors Scott Richardson and Stephen Dafoe both speculated that $40,000 might prove not to be enough of an incentive considering current development costs.
“One of the stumbling blocks with 100th Avenue is having to deal with Alberta Transportation,” Dafoe said. “I’m in support of second reading but I’m not sure what 40 grand is going to do to move that.”
If the bylaw is passed at third reading, the incentive will run until Dec. 31, 2033, unless extended or rescinded by a future council.
Also at the meeting, council passed a motion directing Administration to review the Coeur de Morinville Area Structure Plan and policies related to redistricting and use of direct control districts.
According to Novak, Administration has identified regulations that may not be conducive to the plan goals.
The review is intended to bring forth amendments that will remove barriers to economic development.