Whitehorse Daily Star

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City planning manager Pat Ross and Mayor Dan Curtis

Twenty-four-unit rental development proposed

Centennial Street could soon be home to at least 24 new residents with a proposal for two dozen new rental apartments on a lot near Poplar Road.

By Stephanie Waddell on October 21, 2014

Centennial Street could soon be home to at least 24 new residents with a proposal for two dozen new rental apartments on a lot near Poplar Road.

Christina Zahar has already been issued development and building permits for the project at 2008 Centennial St.

She is applying for a major development incentive from the city which could amount to close to $500,000 in property tax rebates.

City planning manager Pat Ross brought forward a recommendation at Monday evening’s council meeting that the incentive be approved for the project.

As Ross explained, the proposal meets all the criteria set out in the policy established in 2011 for a major development incentive.

“In this case, the applicant will provide a development with a minimum 10 rental housing units for a minimum term of 10 years,” Ross said.

To receive the grant, the units must remain as rentals under one owner. While the incentive can be transferred to a new owner if the property is sold, all the units have to remain under one owner.

The incentive was established to encourage the development of rental units in the city.

“The grant would be in the amount that the developer would have paid in annual municipal taxes as a result of the new improvements to the property,” Ross said.

“The base amount is determined at the time of issuance of a building permit.”

The 10-year term for the incentive then begins one year after the building permit for the development is issued.

“This ‘phase-in’ period is provided as there may be minimal change in the assessed value,” Ross said.

For the Centennial Street development, that would mean coming into effect in 2015.

The proposed incentive will apply to the 24 units currently planned for the site.

However, Ross confirmed under questioning by Coun. Dave Stockdale that Zahar could be eligible for another incentive if she goes ahead with a further 24 rentals she’s considering for the property after the initial development is finished.

He noted in his report that any further development would have to meet the eligibility criteria for the incentive as well.

Under the policy, Zahar could get up to $500,000 over the 10-year period in the form of grants as that is the maximum set out in the policy, though it will likely be a bit less based on the property tax equation.

“While there are no directly comparable projects in this area, the assessment value of other similar projects across the city ranges from $3.24 million to $4.03 million,” Ross said.

“Based on the current mill rate, this would equate to a yearly tax rate and incentive grant between $38,000 and $47,000.”

The portion of taxes collected for the land alone would stay with the city and amounts to about $1,300.

This marks the third major development incentive to come forward since the grant was established.

The Options for Independence supportive housing project downtown was the first to receive the incentive, approved in 2012.

Then, earlier this year, council approved an incentive for a proposed 11-unit townhouse project in Whistle Bend that’s being developed by Lars Hartling.

While council won’t vote on the incentive until next week, Mayor Dan Curtis stated his excitement for the project when Zahar appeared before council to address any questions members had.

With no questions from council members, Curtis noted the city is familiar with the project, adding he’s excited about the prospect of more rental units in the city.

Coun. John Streicker was absent from Monday’s council meeting.

Comments (4)

Up 6 Down 3

bobbybitman on Oct 24, 2014 at 10:48 am

Savings of $170 a month per rental unit for 10 years. $1540 per year, a $15,400 subsidy in total per unit, doled out over 10 years.

A far better deal than the +/- $150,000 per unit that Tony Zedda and two other developers were dissappointed to not receive through the Housing Trust money in exchange for building one bedroom and bachelor rental apartments to be rented out just below 'market rent', for 10 years. In fact, 10x the bang for the buck. Goes to show just how bad that Housing Trust deal really was.

Up 24 Down 19

francias pillman on Oct 22, 2014 at 12:56 pm

Sorry groucho but you are wrong. The only one this will benefit is the developer. They don't build things like this out of the goodness of their hearts. They build it for profit. Period. I can imagine how expensive these units will be.

Up 8 Down 9

Wayne on Oct 21, 2014 at 6:03 pm

Is there no other place for this? Porter Creek should secede.

Up 13 Down 12

Groucho d'North on Oct 21, 2014 at 5:13 pm

Bravo Mayor and council! I'm glad there is still courage to see a problem for what it is and not the political football it has become. Actions count and yours will benefit the desperate housing situation in this city. Well done.

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