On the other end of the spectrum....
Here is an article from the Downtown Biz website.
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Downtown housing incentives set
Apr. 03, 2007
Downtown housing incentives set
Expanded tax refunds planned
Tue Apr 3 2007
By Bartley Kives of the Winnipeg Free Press
THE City of Winnipeg is close to unveiling a small battery of incentives to create more housing downtown and redevelop vacant buildings in the heart of the city.
City planners are working on expanding existing tax refunds that speed the construction of new condominium and apartment buildings in downtown Winnipeg, the new president of development agency CentreVenture said on Monday.
Other sources say the city is also planning to stimulate the redevelopment of empty buildings and vacant lots through a mechanism known as a tax-increment financing zone. The gist is, increased property taxes generated by improvements within a specific portion of downtown could be funnelled back into other projects in the same area -- instead of that tax money flowing straight into city coffers.
A report recommending both forms of incentives is expected at city council within weeks, thanks to the political push provided by last May's Winnipeg City Summit and campaign promises made by Mayor Sam Katz in September.
"We all hope to see something in the near future which looks at accelerating incentives to the private sector to encourage housing, and specifically housing in the downtown," said Coun. Russ Wyatt, who chairs city council's downtown development committee.
"That was one of the issues we heard coming out of the city summit and it's one of the issues we keep hearing about over and over again.
"For downtown revitalization to be successful, we need to have more residential properties and more people living downtown."
"As the taxes are paid to the city, they're refunded back to the developer," explained Ross McGowan, CentreVenture's new president and CEO, who was summoned to address Wyatt's downtown committee on his first day on the job.
The city doesn't actually commit any new money to the program because the refunds represent cash the city would not have collected if the incentives were not in place, he explained.
"These tax credits will be here for five or six years but the benefits will be here 50, 60 years down the road," McGowan said. "Rather than having a vacant parcel of land that's not generating any revenue, let's bring it on to the tax rolls."
The tax-increment financing zone being considered by the city would cover all sorts of developments, not just housing. In essence, it allows any new taxes the city collects from improved properties inside the zone to fund even more improvements, such as streetscaping or more developments -- instead of just penalizing property owners for making improvements.
Sources say city planners are still in the midst of deciding what portions of downtown would be designated a tax-increment financing zone, pending city council approval.
Both Wyatt and Mayor Sam Katz said Winnipeggers should get a peek at the proposed downtown incentives in the near future.
"There's a lot of work going on behind the scenes to make sure we're going to get the biggest bang for the dollar that we can, and that it will be a success," Wyatt said.
"It's no secret that housing is a big priority of mine and more people living downtown is a priority, too," added Katz.
Since the mid-1960s, downtown Winnipeg has undergone dozens of revitalization efforts, including megaprojects such as the Centennial Centre complex on Main Street, Portage Place, The Forks and MTS Centre.
The city's existing tax refund program has been credited for stimulating the construction of high-end condominiums along Waterfront Drive. City council and CentreVenture hope an expanded program will also stimulate the creation of more affordable downtown housing.
How it would work
Mechanisms for revitalizing downtown Winnipeg.
1. MULTI-FAMILY DWELLING GRANT PROGRAM
Status: A three-year pilot program under review by city planners.
What it does: Stimulates the development of multi-family dwellings such as condominium and apartment buildings in designated improvement zones, including downtown Winnipeg.
How it works: Essentially, this is a tax rebate that allows developers of new condo or apartment buildings to recover part of their construction costs. Right now, developers can reclaim a maximum of $250,000 per building in the form of tax rebates, which are paid back to the city as taxes are collected. Rebates can be paid back up to a maximum of six years.
Proposed changes: City planners are thinking about making the rebate based on the number of units in the building, which would allow developers of even larger condos or apartments to recover even more money.
2. TAX-INCREMENT FINANCING ZONE
Status: Proposed revitalization measure. Currently in place in dozens of North American cities, including major centres such as Chicago and San Antonio.
What it would do: Stimulates the redevelopment of existing buildings or empty lots in depressed areas by allowing property owners to make improvements that market forces alone would not support.
How it would work: First, the city sets a property-tax benchmark for buildings and lots within a designated area of downtown Winnipeg. When owners renovate or otherwise improve those properties, the resulting tax increases from future assessments are diverted from city coffers and funnelled back into other improvements in the immediate area, which can include more renovations by the same developer. The diversion of tax funds would take place for a set amount of time, such as five, 10 or even 20 years.
Where exactly would this happen? City planners are still working on that, sources say.
e is an article from the Downtown Biz website.
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Finally a political leader in Manaitoba who has figured it out. Attract investment and build momentum in the downtown.
Just what the doctor ordered!! Sam Katz is a great leader.
Great things are starting to happen at the city level.
