Grey County’s committee of the whole has approved a plan to not collect $432,000 in property taxes over five years to support the development of an attainable apartment project in Hanover.
A report was brought forward by Director of Economic Development, Tourism and Culture Savanna Myers during a recent meeting. It recommended entering into an agreement with Hanover for the town to make use of a grant under the community improvement program (CIP).
The proposed development would see two six-storey, 71-unit, multi-residential buildings along 651 23rd Avenue, for a total of 142 units.
The report says the $60-million project will be done in two phases and the town is requesting a max grant of $525,000 for each building over five years. The county portion is estimated to be $216,000 for each over a five-year timeline, coming to a total of $432,000.
The report says as part of this project, Hanover has started the process of approving the first tax increment equivalent grant (TIEG), which assists in deferring part of the increase in property taxation as a result of a development or rehabilitation project.
The municipality that makes use of the TIEG, gets a grant to pay a portion of their taxes from the increased assessment over a period of up to 10 years.
“The benefit is that it assists in reducing those significant up front costs that developers feel when they are specifically looking around rental housing and we know that takes a little bit of time to recoup those costs that they are putting up front. That is where the TIEG really comes in,” says Myers.
This TIEG supporting Hanover, specifically targets the creation of new attainable housing stock.
Myers says this project will be geared toward more attainable housing rather than affordable.
“This project specifically is not affordable housing, so it is not within the $30,000 or below threshold or 30 per cent of incomes. It is the attainable side which we tend to look at anywhere between that $40,000 and $100,000 income level is where we tend to see attainable,” says Myers.
Hanover Mayor and coun. Sue Paterson adds, “Hanover is very pleased with this development happening, just off of Grey County Road 28 near our northern water tower. Our council did approve it unanimously and we are looking forward to the growth in accommodations and the economic growth that will happen in southern Grey County.”
