Sign up for the paNOW newsletter

Review for Downtown Business Improvement District revenue runs by council

Apr 24, 2018 | 2:00 PM

When property reassessment in 2017 led to a significant drop in taxes for many downtown property owners, it also cut deep into funding for the Prince Albert Downtown Business Improvement District (PADBID).

Alongside a grant from the city of $22,000, PADBID receives a majority of its funding through a four-per-cent levy on businesses in the downtown area. The funds raised from that levy dropped from $82,000 in 2016 to $46,000 in 2017, though it increased slightly to $50,000 in 2018. PADBID was initially told to budget for around $90,000, but it was recently discovered that number would instead be $72,000. The $20,890 shortfall for 2018, coupled with another $5,482 shortfall in 2017, left some at PADBID scratching their heads, concerned about future planning and operations.

“It will really impede us from moving forward,” PADBID Board Chair Stacy Coburn said during a presentation to city council Monday. “We will have to dip into reserves and that only gives us a year and a half that we can operate.”

Coburn’s comments sparked the curiosity of a number of councillors, including Ward 2’s Terra Lennox-Zepp who asked for a report from the finance department to provide options on how the city could provide the originally-budgeted funding in 2017 and 2018 and into the future. Lennox-Zepp suggested the city could redirect some additional funds from parking metre revenue to the PADBID. 

Mayor Greg Dionne said it was perhaps time to look at increasing the levy from four per cent to five or six. He said he had spoken to many downtown business owners, and since their property tax bill did drop, several said they would be willing to chip in a few extra dollars towards the levy.

“All options should be on the table,” Dionne said. “I have always objected, since the BID was opened, that the levy was way too low and, for them to operate, they need more.”

The PADBID also expressed mixed feelings on the soon-to-come ‘Big Dig’ for Central Ave. Much of the city infrastructure underground is over 100 years old and needs to be replaced. While Executive Director Rick Orr said businesses were worried about the prolonged lack of access, which could impact their bottom line, it is a key piece in the revitalization puzzle.

“This lays the groundwork for 50 to 100 years of growth in our downtown,” Orr said. “The short-term pain we are going to experience from the businesses community is going to be a huge benefit in the future for redevelopment and property investment.”

It is not yet known if the ‘Big Dig’ will take place in 2019. A previous motion passed through council which will bring the item up for debate during 2019 budget deliberations this fall. Council said it is a priority, but will ultimately come down to money.

Ward 6 Coun. Blake Edwards said entering into discussions with businesses will be crucial as the dig nears, and the city could possibly find temporary locations for some affected businesses.

“We certainly don’t want to handcuff you a whole lot,” Edwards said. “It is going to bring some hardship to each business.”

A report on new revenue options for PADBID is expected to come before city council in May.

 

tyler.marr@jpbg.ca

On Twitter: @JournoMarr