(File Photo/paNOW Staff)

By Alison Sandstrom

Council reconsiders denying tax relief to affordable housing building

Feb 5, 2020 | 3:26 PM

It appears the P.A. Community Housing Society will be getting a tax break on their new building at 861 River Street after all.

Councillors have reversed an earlier decision to deny the tax abatement on the basis that the organization had already accessed an incentive program to help construct the building.

At the Jan. 27 council meeting, P.A. Community Housing Manager Linda Boyer said the organization would rather receive tax relief than the $30,000 they had been approved for through the affordable housing initiative.

She told councillors that building on a flood plain cost the project an additional $400,000 and appealed to them to reconsider granting the tax break.

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“P.A. Community Housing is willing the build in areas considered high risk and therefore improve the appearance of areas that most need it,” she said. “But we need the city to work with us.”

She also emphasized the apartment complex’s value to the community.

“By reducing the number of homeless we also reduce the usage of services such as police, fire, ambulances and hospital,” she said.

Councillors seemed to agree they wanted to provide the tax break, but wanted more information on the form it would take.

While the organization is asking for tax to be kept at the bare land rate of $926.22 for a period of five years, most tax breaks in the city operate on a declining five-year scale (an applicant pays no tax the first year, 25 per cent of the regular tax the second, 50 per cent the third year, and so on).

Council voted to have administration bring a further report on the tax break to an upcoming meeting at which time they will make a final decision.

The 14-unit apartment building at 861 River Street is expected to open this August. The first floor will house people with mental disabilities or acquired brain injuries, while the second floor will be for women who have recently exited the correctional system.

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alison.sandstrom@jpbg.ca

On Twitter: @alisandstrom