City said to be receiving proposals worth between ‘tens of millions to multiple billion dollars’
The City of Sault Ste. Marie is looking for ways the sweeten the incentives offered to companies proposing big-time projects for our city.
In a resolution passed by city council last week, Ward 2 Coun. Luke Dufour and Ward 5’s Corey Gardi disclose that the city is considering proposals worth between “tens of millions to multiple billion dollars.”
“We have been in discussions with a number of projects that are looking to be established in the community,” said Mayor Matthew Shoemaker.
“If you’re investing $10 million or $15 million into an economic development project, you’re eligible for a four-year tax increment grant.
“If you’re investing in a $100-million or $200-million project, you’re eligible for a four-year tax increment grant. So the idea that other municipalities have come up with is that the greater the level of investment, the longer the term of the grant can be,” the mayor said.
“We just did this with our tax increment grant for new housing developments. If you have a greater level of affordability, it stretches out the benefit over a longer period of time.
“So similarly, if there is a greater economic benefit, it would stretch out the incentive over a longer period of time, which would help the economics of the project.
“That is something that I think is wise for us to look at …. recognizing that we have other incentives like a lack of development charges that are a benefit for those organizations and businesses doing expansion in Sault Ste. Marie or establishing themselves in Sault Ste. Marie,” Shoemaker said.
“When it comes to our long-term tax competitiveness,” Coun. Dufour added.
“Ensuring that residential ratepayers don’t pay the greater burden of the inflationary increase, it’s really important that we have a competitive economic incentive program.
“Because we’ve seen over the last probably 10 to 15 years, a number of situations where due to reassessments, things of that nature, the city hasn’t fully realized the benefit of all of the residential growth that we’ve been experiencing.
“I think that creating a structural program like this is going to help us to build a healthier tax base for tomorrow and attract some of those companies that are going to be providing those jobs,” Dufour said.
Here’s the full text of the resolution passed by city council last week.
Economic Development Community Improvement Program
Mover: Coun. L. Dufour
Seconder: Coun. C. Gardi
Whereas there are projects being proposed across the municipality that would, if approved, spur significant economic development and re-shape the local economy; and
Whereas the projects being proposed range in the investment required from tens of millions of dollars to multiple billion dollars; and
Whereas the Economic Development Community Improvement Program (CIP) does not currently distinguish the incentives available based on the value of the investment to be made; and
Whereas it would be prudent to ensure the Economic Development CIP incents projects to as great of a degree as similar programs in other Ontario municipalities, all while ensuring compliance with the Municipal Act; and
Whereas a graduated incentive, based on the value of the investment to be made is one way in which the City of Sault Ste. Marie may be able to better compete for any number of projects being proposed both within the municipality, and within Ontario more broadly;
Now therefore be it resolved that staff be directed to review the Economic Development CIP and report back to city council on any proposal that:
ensures Sault Ste. Marie’s Economic Development CIP is competitive with CIP programs across other Ontario municipalities, recognizing that Sault Ste. Marie has other incentives such as a lack of development charges
looks to have a graduated tax increment level, and/or a longer term, for projects that require greater investment, and create greater long-term benefits; and
examines any other changes required to our Economic Development CIP as staff may recommend or bring forward for council’s consideration