Downtown development could receive city incentive
The developers of a new four-storey office and residential building under construction on Alexander Street can receive up to $500,000 over the next 10 years through a development incentive program.
The developers of a new four-storey office and residential building under construction on Alexander Street can receive up to $500,000 over the next 10 years through a development incentive program.
That became clear after city council approved a major development incentive Monday evening.
A numbered company – 535756 Yukon Inc. – is developing a mixed-use building that will include six residential units on the fourth floor and three storeys of office space below, with underground parking.
Landscaping and street furniture on the city boulevard are also planned for the project.
The overall plans meet the requirements for a city major development incentive policy.
As Mike Gau, the city’s director for planning and development services, explained at Monday night’s council meeting before the vote, the proposal meets the criteria of the policy designed to encourage mixed-use development in the downtown core, including the provision for underground parking.
Under questioning by Coun. John Streicker, Gau explained the incentive was adopted to encourage developments the city was not seeing at the time.
Essentially, developers are granted the additional amount they paid in property taxes due to the increase in value from the development. Owners still pay property tax in full on the value of the land before development.
As Coun. Betty Irwin emphasized Monday night, it is not a typical “grant.”
Gau pointed out that municipalities do not have the authority to waive taxes under the territorial Municipal Act.
So, the city can only provide this type of tax break by supplying a grant back in the amount equal to how much property taxes rose due to the increase in property value.
As Streicker commented, the city isn’t losing revenue, but rather deferring the increase in revenue it will get in future years.
Along with the benefits to the downtown from the development itself, Coun. Jocelyn Curteanu pointed to the work planned for the boulevard that everyone stands to benefit from.
Council was unanimous in approving the incentive.
Mayor Dan Curtis attended the meeting by conference call.
Comments (11)
Up 14 Down 2
Just Say'in on Jul 30, 2015 at 11:39 pm
Hold on, this is not an incentive to do this. They bid and were the successful bidder to provide YTG space. They already have the contract and are doing it, this is after the fact, no incentive at all. How do the other companies that bid on this job feel now that they see this added incentive after the fact? Something is very wrong here. When I build something the City doesn't give me anything, they just charge me. Thanks for coming.
Up 6 Down 0
north_of_60 on Jul 30, 2015 at 11:27 pm
@JuneJ
A little searching will easily yield the names of the lot owners; it was in the News. Once you find that, the rest makes 'good' political sense.
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Yukon Guy on Jul 30, 2015 at 3:13 pm
So Wil, er I mean Where is Mayor/Council Affordable housing program
What IS your position? Economic development? Social programs? I gather that with your concern over affordable housing/anti poverty you will be supporting the NDP in the next election? You are against tax incentives to promote development that will enhance the downtown core of our city?
Up 18 Down 5
Give the Anti poverty group a $500,000 they would make positive results on Jul 30, 2015 at 2:52 pm
Give the anti poverty group a $500,000 they would make positive results
What do you think liberals Mayor and some Council members.
Up 23 Down 4
Where is Mayor/Council Affordable housing program on Jul 30, 2015 at 1:57 pm
This mayor created one mess after another.
Why isn't this money going to affordable housing program nothing else.
You have all those liberals talking about housing but don't back it up!
All talk no action.
Up 13 Down 5
Joseph Campbell on Jul 29, 2015 at 10:30 pm
Great! Our governments putting more of our tax dollars in the hands of the millionaire developers. And with so many of our senior citizens struggling on fixed incomes and having to pay high rents that these developers force out of them. Maybe the city's wise councilors could install a few comfortable benches outside this Alexander St. development for some of these seniors to sleep on.
Up 11 Down 1
dcr on Jul 29, 2015 at 10:22 pm
Always rental unit's on top with office's below. I guess there's not enough area in downtown and can't build buildings to ten story's because people complain they can't see the claycliff's lol - put all government worker into one building, the one near the park in the South end of Whitehorse then there would be a lot of empty lot's for rental unit's in downtown Whitehorse. You need to plan right to get thing's done. Yukon don't need condos.
Up 17 Down 2
Yukon 56 on Jul 29, 2015 at 10:01 pm
A numbered company, hmmmm Guess who ? The 3 or 4 movers and shakers who are attached to multi levels of City, Territorial and Federal politics
Up 10 Down 2
yukonmom on Jul 29, 2015 at 7:00 pm
and the rich get richer.
Up 14 Down 1
Pjt1959 on Jul 29, 2015 at 5:25 pm
Well glad to see my taxes are going up to give tax breaks to a commercial venture. This is not a low cost housing but one for YTG to rent office space. I thought that this was to help with low cost housing but just another who knows who to get a little richer. Seems that council just does not get it. Kids parties to pay to use parks but basically office buildings get tax breaks so all of this gets downloaded to the fixed income. I would agree to tax breaks if this was all for affordable housing but I would like a break on the fees and taxes we are all looking at paying more - that is my rant. Be nice to see a councillor read some of the comments so they could see people are getting tired of paying more. That's my rant.
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June Jackson on Jul 29, 2015 at 4:45 pm
Who is behind the numbered company? A name or 4 please.