Downtown apartment projects to receive city-provincial tax refunds
The latest round of city-provincial tax incentives aimed at stimulating the creation of downtown housing will help build 857 apartments in a total of seven new projects, downtown development agency CentreVenture says.
The "live downtown" program, which allows developers of new downtown apartments to receive property-tax refunds, is now fully subscribed, CentreVenture development manager Loretta Martin said Thursday in an interview.
The refunds will be equal to the additional property taxes the owners would pay to the city and province as a result of the improvements they're about to make to their properties.
This incentive program, which employs a funding mechanism known as tax-increment financing, is different from the cash incentives offered to downtown condo developers under a previous housing-stimulus package called the downtown residential development grant program. That program offered up-front grants in one lump sum, instead of smaller refunds over the course several years.
The city-provincial incentives for the seven new apartment projects could total $32 million over 20 years, if the developers receive the maximum possible refunds, the city and province stated Friday morning at a press conference at the James Avenue Pumping Station.
The historic structure on James Avenue at Waterfront Drive is one of the seven new projects that will receive tax-increment financing under the "live downtown" program.
Developers Rick Hofer and Bryce Alston expect to take possession of the pumping station in November and begin work on enclosing the machinery within it and building offices in the rafter portion of the building. Residential apartments will be built in additions on the east and west sides of the building.
The tax incentives will also help build apartments at a former surface-parking lot at 98 Market Ave., the Galpern Building at 165 McDermot Ave. and projects at 272 Main St., 300 Main St., 104 James Ave. and 316/318 Ross Ave.
Winnipeg Mayor Brian Bowman and Manitoba Premier Brian Pallister revealed the latter four projects at the Friday press conference.
They would not confirm another round of property-tax incentives for downtown housing.
