Staff Report to Council - Bylaw No. 2208 Revitalization Tax Exemptions for Industrial Development Bylaw Amendment #1

EXECUTIVE SUMMARY

At the October 18, 2021 Regular Council meeting, Council adopted City of Langford Revitalization Tax Exemptions For Industrial Development Bylaw No. 2006, 2021 for the purpose of encouraging revitalization for commercial and industrial development within the Revitalization Area made up of the properties identified in Schedule A of the bylaw, currently known as 2207 Millstream Rd, 2155 Millstream Rd, 2213 Millstream Rd, 2217 Millstream Rd and land that was formerly Hordon Rd. This area is commonly known as the Speedway Lands.

It has come to staff’s attention, through BC Assessment, that Bylaw No. 2006 as drafted can not be applied by BC Assessment to determine and apply the intended exemptions. As such, staff have worked with the property owner and BC Assessment to amend the bylaw to reflect the original intent, while ensuring the bylaw can be applied by BC Assessment.

Bylaw No. 2006 as originally drafted applied an exemption based on taxes payable but in order for BC Assessment to apply the terms of the Revitalization Bylaw and any corresponding exemption, the exemption needs to be based on assessed value. Bylaw No. 2208, if approved by Council, will amend Bylaw No. 2006 to adjust the exemption from property tax based to assessed value based, thus ensuring the exemptions can be applied by BC Assessment, ensuring the original intent is achieved.

BACKGROUND

At a high level, there are essentially three areas within the Revitalization Area: Area A, Area B and “Residential Area”. The “Residential Area” will not be eligible for any portion of tax exemption. Area A will be eligible for a revitalization tax exemption for a period of 5 years. Area B will be eligible for a revitalization for a period of 7 years. The revitalization exemption will only apply to the municipal portion of property taxes, and it will only apply to any assessed value on these portions of the Revitalization Area above what the assessed value was for these properties in 2021. Effectively, should Council wish to approve this bylaw, the net taxable assessed value for these portions of land will not increase for a period of 5 or 7 years.

FINANCIAL IMPLICATIONS

As the taxable assessed values on these properties will effectively be frozen at the 2021 amounts, the City is effectively still collecting the same revenue as would have been collected should the property not be revitalized. Taxes that will be exempt over the term of this bylaw will be additional taxes in future years for the City.

LEGAL IMPLICATIONS

Under Section 226 of the Community Charter, Council may by bylaw adopt a tax exemption program for the purpose of encouraging revitalization in areas within the Municipality. Council may choose to establish a revitalization tax exemption program to encourage property investment and revitalization in the Revitalization Area.

OPTIONS

Option 1
THAT Council give first, second and third reading to City of Langford Revitalization Tax Exemptions for Industrial Development Bylaw No. 2006, 2021, Amendment No. 1, Bylaw No. 2208, 2024

OR Option 2
THAT Council not proceed with City of Langford Revitalization Tax Exemptions for Industrial Development Bylaw No. 2006, 2021, Amendment No. 1, Bylaw No. 2208, 2024.

SUBMITTED BY

Michael Dillabaugh, CPA, CA, Director of Finance

Concurrence:

• Melisa Miles, Manager of Legislative Services
• Donna Petrie, Senior Manager of Communications & Economic Development
• Yari Nielsen, Director of Parks, Recreation and Facilities
• Matthew Baldwin, RPP, MCIP, Director of Development Services
• Leah Stohmann, RPP, MCIP, Director of Community Planning and Climate Change
• Katelyn Balzer, P.Eng., Director of Engineering and Public Works
• Braden Hutchins, Deputy Chief Administrative Officer

Attachments: City of Langford Revitalization Tax Exemptions for Industrial Development Bylaw No. 2006, 2021, Amendment No. 1, Bylaw No. 2208, 2024