in Chatsworth, Grey Highlands, Southgate, West Grey
August 12, 2022
Photo: Alena Darmel
BY SOUTHGREY.CA STAFF — The Town of Hanover has begun the process of approving the first attainable housing project to access funding from Grey County's Community Improvement Plan (CIP) Tax Grant. Two 6-storey, 71-unit multi-residential buildings are proposed at 651 23rd Avenue.
A total of 142 units are proposed through this development. With stackable incentives permitted through the CIP Program, this property is also being considered for conditional development charge exception.
Grey County's Tax Increment Equivalent Grant (TIEG) is one of the most significant incentives available through the program of financial support provided to local municipalities to assist with various incentives. The program facilitates the revitalization and improvement of the entire County, including increases in attainable housing stock, secondary suites, multi-unit housing, purpose-built rental housing, rooming house developments, and apartment dormitory style developments.
The TIEG is one of the most significant incentives available through the CIP Program. It is meant to stimulate major investment by deferring part of the increase in property taxation because of a redevelopment or rehabilitation project.
The participating municipality receives a grant to pay a portion of the Municipal taxes attributed to the increased assessment over a period of up to 10 years. The incentive phases in tax increases relating to re-assessments resulting from property improvements. The benefit of this program is that it assists in reducing the significant upfront costs associated with a major development. The Hanover TIEG specifically supports the creation of new attainable housing stock.
The Town of Hanover TIEG Program is structured as a five-year period with descaling increments to a maximum 50% of the total eligible costs of the improvements or a maximum grant as determined by Town Council.
The applicant has confirmed that $60 million will be invested at 651 23rd Avenue in Hanover to create 142 units over two phases. They have requested a TIEG to a maximum of $525,000 per building, each over a 5-year period. The County portion is estimated at $216,000, each over a 5-year period.
To trigger the agreement, Hanover will provide formal written notice of their request for County participation in the TIEG application to the County.
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