Winnipeg city council approves True North Square tax rebates
City council has approved future property-tax rebates that will help True North Development build the $8.9-million public-plaza component of True North Square.
Council voted 14-2 Wednesday to refund up to $3.2-million worth of municipal property taxes that will flow from the first phase of True North's $400-million development after construction is completed in 2018.
The province is mulling a request to rebate another $5.7 million worth of proceeds from provincial property taxes on 225 Carlton St., where two towers and a plaza are under construction.
The parcel generated $116,000 of total property taxes last year, city records state. True North Development president Jim Ludlow said he expects the parcel to generate $4.2 million worth of taxes every year once construction is complete.
Councillors Ross Eadie (Mynarski) and Russ Wyatt (Transcona) voted against the property-tax rebate.
Eadie said he can't support more aid for True North until the owner of the Winnipeg Jets and Manitoba Moose agrees to give the city the proceeds of the entertainment taxes charged on tickets to events at MTS Centre.
"They are prospering! They are rich! They are wealthy!" Eadie told council.
Mayor Brian Bowman, however, noted the net benefit to downtown from the $400-million project is far greater than the tax rebates.
"This is a game changer for downtown," Bowman said. "This council's commitment to rebuilding downtown is unwavering."
Council also agreed to allocate $17.6 million of previously approved tax rebates from properties in the vicinity of MTS Centre to pay for streetscaping, sidewalk and intersection improvements around True North Square, as well as new skywalks that will connect Cityplace mall to the RBC Convention Centre through True North Square.
The second phase of the project, at the former Carlton Inn site at 220 Carlton St., will involve the construction of a residential tower and luxury hotel.
The rebates are a form of tax-increment financing, where increases in property-tax revenue that result from improvements to a piece of land are either returned to the property owner or spent on public amenities in the immediate area. This funding mechanism is most commonly applied to blighted areas.
