The owners of a new apartment building set for construction in Chatham will be getting a tax break on the property.
On Monday, council approved the execution of the Property Tax Increment Equivalent Grant Agreement with Skyline Real Estate Holdings Inc. for its two new apartment buildings that are currently in the works on Riverview Drive.
The grant agreement is through the Chatham-Kent Community Improvement Plan and will provide an annual grant equivalent to 100 per cent of the increase in municipal property taxes for ten years.
The Chatham-Kent Community Improvement Plan was approved by council in early 2020 to help support the municipality's growth strategy and encourage market-driven investments for targeted needs.
The Property Tax Increment Equivalent Program provides economic incentives for the development, redevelopment, adaptive reuse or rehabilitation of select properties and reduces the tax increase that can result when a property is developed, redeveloped or rehabilitated. The program is applicable to commercial uses, employment uses, mixed-use commercial or residential buildings, major rental housing developments and affordable housing developments.
Skyline's proposed new apartment buildings will be located on the north side of Riverview Drive, between Keil Drive South and Merritt Avenue. Described by the municipality as a "major rental housing development," each building is set to have 71 units with a ground floor area of 19,855 sq. ft. as well as a 3,710 sq. ft. amenity building.
According to a staff report that went to council, the project is eligible for a grant under the Community Improvement Plan equal to the amount of new municipal property taxes levied because of new assessment growth related to the development.
Grant amounts will be determined following the completion of the project.