By Shaun Penner

Development Incentives and Grants Program

Council approves development incentive program aimed at attracting, retaining large-scale investment

Jun 15, 2021 | 2:08 PM

Grande Prairie City Council approved the new Development Incentives and Grants program at Monday’s meeting, which the city says aims to offer business retention and new development incentives to help grow the city’s tax base over the next decade.

Interim Mayor Jackie Clayton says the program, which consists of three incentives and two grants in the industrial, commercial, and residential sectors, is a smart way to attract investment into the city, while also not raising taxes for existing ratepayers.

“If we can incentivize somebody without having cost impact to our taxpayers, that’s a win-win for everybody,” said Clayton following Monday’s meeting. “If we can see these large developments in commercial or industrial spaces come to our city, it is a great opportunity.”

“Grande Prairie is a great place to do business, it’s a great place to invest, and we want to just support those who choose to do that.”

Two of the five provisions within the program involve tax rebates.

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First, any new business development valued at over $25 million could get a 100 per cent rebate on its property taxes in the first year under the New Business Development Grant, with that amount decreasing 10 per cent per year for the next nine years.

Also, there would be a similar four-year incentive for projects worth at least $1 million that improve the assessed value of a business by 25 per cent under the Business Retention and Expansion Grant. This program could provide a 100 per cent rebate for the first year, with the rebate decreasing by 25 per cent for another three years, for improvements that raise the assessed value of a business by 25 per cent.

“It’s not money upfront, it doesn’t have a cost impact to the city,” said Clayton, adding these incentives are for larger-scale projects and investment.

“It’s not a façade improvement, it’s not a small-scale development. This is of significant size of developments in our region.

Also included in the program are:

Business Revitalization Grant: A 50 per cent matching grant up to $25,000, with a minimum $10,000 cost, for demolition or property/building improvements to a business.

Residential Infill Grant: A $15,000 grant, limit to two per builder, for infill residential construction worth at least $200,000 that will maintain or increases the residential density.

Municipal Fee Rebate: A 100 per cent rebate to a maximum of $10,000 available for permit fees within Engineering, Inspections and Planning for new residential construction.

The Grande Prairie & District Chamber of Commerce, in a letter to the city, calls this an “immediate stimulus to the local economy” as it will keep construction and tradespeople working without spending any new money.

“We’re really committed to supporting investments in our community and hope to help stimulate the local economy and expand a diversified tax base.”

While the $10.5 million program is primarily self-funded and does not impact the City’s budget, the city says approximately $1.3 million was reallocated from existing economic development grants and incentive programs into this program.

Applications are expected to open in the summer.