This lot on 15th Street East will be home to a 30,240 square foot retail/agricultural development. (Alison Sandstrom/paNOW Staff)

By Alison Sandstrom

New build

City approves tax exemption for multi-million dollar development

Apr 14, 2020 | 5:01 PM

Prince Albert city council has approved a tax exemption for a company planning to build a $9 million retail/agricultural development on 15th Street East.

Prism Holdings, which also owns Rally Motor Group, plans to break ground on the project this spring, with construction expected to last seven months.

The 30,240 square foot building is estimated to employ 120 people when completed.

The five-year sliding scale tax exemption approved by council on April 6 will see Prism Holdings receive a full tax exemption in 2021, with partial exemptions from 2022-2024. In total, the city will give up around $308,000 in projected tax revenue.

Mayor Greg Dionne said that’s the price of doing business.

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“To get businesses to build in your community, you have to have incentives,” Dionne told paNOW on Wednesday. “Today, cities are competing all over the province for these businesses so you have to make it attractive for them to come.”

Based on 2019 taxation rates, once construction is complete the property will generate around $123,000 in municipal taxes annually.

“That land is vacant, and it’s been vacant for years,” Dionne said. “We can leave it vacant for another four or five years or we can give a tax exemption and in two years it starts to pay taxes.”

The mayor added jobs created by the project including during construction will aid the local economy in its recovery from the pandemic.

Six councillors plus the mayor voted in favour of the exemption with only Coun. Charlene Miller and Terra Lennox-Zepp voting against it.

Prism Holdings did not respond to a request for comment.

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alison.sandstrom@jpbg.ca

On Twitter: @alisandstrom