By Angela Brown

City of North Battleford proposing vacant building tax

Jun 21, 2017 | 10:02 AM

City of North Battleford is considering imposing a vacancy tax bylaw to deal with a chronic problem of numerous empty commercial buildings occupying the downtown area.

The aim of the tax is to help improve economic development, not to increase revenues, said Mayor Ryan Bater. He said the objective is to “further increase the economic development of our economy by getting commercial properties back into the commercial-property market.”

The additional funds the city receives with the proposed initiative will be put into economic development.

Bater introduced the bylaw at Tuesday’s Battlefords Chamber of Commerce meeting.

“The downtown is our report card…,” he said. “We believe in good governance; I am here to listen.”

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The ultimate goal is to bring back active business to the downtown corridor and get rid of the blight of empty store fronts.

Buildings affected are in the key commercial corridor: the downtown area, Railway Avenue East and the south-east quadrant of the city, 100 Street, and Highway 4 North from downtown to the city limits.

The mayor explained the plan as a two-pronged approach. The disincentive plan, which when partnered with an upcoming incentive program in the works, will help coax property owners of these vacant buildings to do something with their properties – to improve their properties and either try to sell or rent them, or redevelop them.

The disincentive program was devised by the city’s administration. Council will vote on the issue at the next council meeting on Monday, June 26. Council previously carried first reading of the bylaw at its last meeting and will give second and third reading at the next meeting.

The city is currently involved in consultation to seek feedback.

“We still have to debate it and hear from the people,” said Bater.

As part of the plan, the city will establish a sub-classification known as a vacant commercial building class.

It will also begin charging owners of vacant buildings the flat rate for utility charges.

“Even if a building isn’t using water they would still have a utility bill because they have access to it and are contributing to the fixed cost of having utilities. Every single utility customer in the city, every commercial property is contributing to those base costs – except for these ones that don’t have a hook up,” said Bater. “This is meant to encourage those buildings to start contributing to the fixed costs like the rest of the buildings are.”

When the property owners of these vacant commercial buildings start paying utility fees they will also start paying more of the UPAR (Underground Pipes and Asphalt Replacement project) costs, which are factored into property owners’ property taxes and utility fees.

The city will also establish a certain higher mill rate for the new tax classification – vacant commercial building properties.

Bater said the problem with vacant commercial properties is that property owners disconnect their utilities and have no business licence. The new tax will apply to commercial buildings that have been vacant for two years or longer.

Overall, Chamber of Commerce members applauded the city’s vacancy tax disincentive plan.

Chamber director Jim Lafreniere called it “a fantastic initiative” to bring back business to downtown.

City manager Jim Puffalt said after the first year the city can expand the program to other areas of the city over the next four years where vacant buildings are marring the landscape

Some chamber members said empty buildings can have a negative affect on neighbours’ property values and they also present a safety concern.

Bater’s main concern is vacant buildings in the downtown core are an eyesore to visitors and hurt economic development 

One chamber member who was opposed to the idea complained that the disincentive plan will discourage businesses from renting downtown, adding he “doesn’t see the rationale.”

Bater said the city has the potential to collect an additional $78,500 on these 25 vacant properties. He stressed the money raised is not to generate revenue, but for economic development.

“In the end, we want the revenue generated to be zero,” he said.

angela.brown@jpbg.ca

On Twitter: @battlefordsNOW