Future downtown residential developments will likely no longer be eligible for a five-year break on municipal property taxes.
The amendment to the revitalization tax exemption bylaw will be up for final adoption at council on Jan. 19.
The amendment eliminates tax exemptions for downtown residential developments or the residential portions of mixed-use developments downtown.
The amendment corrects a mistake made when the original bylaw was written, according to the district’s Gary Buxton.
“When the original bylaw was crafted, it was intended that residential component never be included. That was always council’s intent and somehow, between council meeting and the crafting of the bylaw, that distinction was lost and the residential component for mixed-use buildings downtown stayed in the bylaw,” he said, adding the amended bylaw will be in line with what applies to the Oceanfront Lands.
The error was found due to the 2015 application of the 60-unit Mireau project along the shores of the Mamquam Blind Channel, Buxton said.
“We all thought, well, there would be an exemption for the small commercial component and that will be it, but then we read the bylaw and went, ‘Oh, it doesn’t actually say what we thought it did or should say.’”
Buxton said only the Mireau project out of the five or six exemption agreements made had a residential component to exempt.
On Dec. 15, first, second and third reading of the bylaw amendment passed council.
The bylaw itself, which will expire in August, gives a five-year tax exemption for downtown commercial projects with building permits worth $500,000 or more, the commercial portion of mixed-use developments with commercial and residential uses worth $1 million or more, and industrial and indoor recreation development projects of $500,000 or more within the Squamish Business Park.
The philosophy behind the original bylaw was to give an incentive to development of the downtown and business park area. With Squamish currently experiencing a growth spurt, Buxton said it is up to council whether or not exemptions are still needed when the bylaw is up for renewal. Buxton will receive comments on the amendment until Jan. 8 at [email protected].
