WESTLOCK – The Town of Westlock Council approved the first reading a brownfield tax incentive that outlines a 5-year municipal tax break for businesses who develop brownfield properties.
A Brownfield property is a location where a previous business that used hazardous materials operated, and the ground is contaminated.
“The bylaw as proposed would provide an exemption for five years of 100 per cent per year which applies to the municipal taxes of the subject property,” said Danielle Pougher, director of planning and development for the Town of Westlock.
Th bylaw would apply for projects with a final assessed value above $1 million, Pougher said.
The brownfield tax incentive bylaw would offer tax relief to redevelop brownfield properties which had been previously contaminated, Pougher said.
“The bylaw is intended to encourage remediation and development of those contaminated properties.”
“This is one of the tools that the Municipal Government Act allows municipalities to develop in order to help with turnover on those properties as they are more expensive to develop than a standard greenfield site.”
A greenfield site refers to a location where it is natural land that has not been previously developed.
The exemption would apply to the increase in assessment so any base taxation would remain and cannot be exempted through this program, Pougher said.
Pougher detailed additional criteria for the exemption to be applied including proof of property contamination, a remediation construction schedule, compliance with valid permits, no outstanding taxes, utilities or debts to the town.
The brownfield bylaw spells out the process to submit an application, how the applications are received and processed, as well as acceptance and rejection actions to be taken. It also notes that decision disputes that council would be the reviewing authority.
Councillor Randy Wold asked for clarification on the $1 million value that it did not include the land worth.
Pougher remarked that the $1 million criteria would be the remediation improvement value.
Mayor Jon Kramer questioned the outflow of information if the bylaw was approved, showing his concern for existing businesses on brownfield properties.
Pougher stated that the first method of contact would be with existing businesses with a full communication plan defined through various channels to the community once the bylaw was adopted.
Before the brownfield bylaw can be adopted a public hearing will be held on Dec. 9.
