The company behind a plan to build 321 units in two apartment towers on the site of a former car dealership on Hespeler Road has applied for a grant worth up to $2.2 million to clean up the property.
City staff is recommending council approve an application from the developer of 201 – 217 Hespeler Rd. for a joint brownfield tax increment grant, or TIG, that would see Cambridge contribute up to $918,402 to the clean up.
The region would pay the bulk of the grant, if approved by regional council, of up to about $1.3 million.
The money would eventually be recouped by the municipalities through increased property taxes collected from up to 10 years of assessment growth once the apartments are built.
The TIG proportions are determined by the region's and the city's share of taxes levied on the property.
Based on a 2016 assessment, the property is valued at $2.8 million and generates over $24,000 in annual taxes for the city and over $34,000 for the region now.
Once redeveloped, the property's estimated value will rise to $69 million and generate annual property taxes of $574,803 for the city and $813,383 for the region.
"Although the owner uses the city services paid for by the rest of the tax base until the grant has been fully paid, it is considered a reasonable outcome based upon a brownfield site being remediated and redeveloped," reads the staff report headed to council tomorrow night.
Any other financial incentives the developers receive to clean up the site are subtracted from the overall amount available from the city and the region.
The Joint Brownfield Tax Increment Grant program was developed in collaboration between the City of Cambridge and the Region of Waterloo in 2008 to assist property owners with the remediation and redevelopment of contaminated properties within the city’s core areas.
In 2010, council approved the expansion of the TIG to include properties within the entire city.
