June 12, 2008
Innovative Tax Increment Financing Would Support Inland Port, Affordable Housing, Revitalization Initiatives: Ashton
The province would support the further development of Winnipeg’s inland port as well as the construction of affordable housing by expanding the use of tax increment financing (TIF), Intergovernmental Affairs Minister Steve Ashton announced today.
The Community Revitalization Tax Increment Financing Act was introduced today which would provide an innovative way to support municipal and provincial priorities that would focus on the revitalization of Winnipeg, Brandon and other communities in Manitoba.
“One of our first priorities for TIF will be to support the further development of Winnipeg’s inland port, as well as affordable housing in downtown Winnipeg,” Ashton said. “These are projects that will build our economy and build our community.”
Tax increment financing had been requested by the City of Winnipeg, Centre Venture and the City of Brandon. The City of Winnipeg and other municipalities currently have municipal tax increment financing authority. This would enhance the effectiveness of the tool by expanding it to the entire property tax bill.
Under the new bill, properties or areas would be designated as development or revitalization zones and would then become eligible for TIF. This would mean that incremental property tax increases in the zone would be placed into a separate fund for time-limited period to pay for infrastructure and other economic supports in the zone. Once the zone is redeveloped, and the TIF zone is lifted the expanded tax base returns to the municipality, the province and the school division.
Ashton said the measure would boost new private-public sector efforts to grow the inland port in Winnipeg.
Manitoba’s inland port in Winnipeg includes a number of assets:
· the James Richardson International Airport, the only unrestricted 24-hour airport on the prairies;
· Canada’s largest collection of air cargo handlers working in one airport;
· three class one railways with CN and CPR operating intermodel yards in Winnipeg, the only location where routes for the two railways come together between central Ontario and the west coast;
· headquarters for many of Canada’s largest trucking operations;
· integrated logistics firms and warehousing facilities; and
· a non-congested U.S. border crossing south of Winnipeg at Emerson, now the top border crossing in western Canada.
Tax increment financing is used in several American cities to support revitalization and renewal initiatives. In Manitoba, these levies would be used to support significant economic development, community revitalization such as housing, social and cultural development and heritage preservation.
“This new measure will complement other provincial revitalization programs such as Neighbourhoods Alive! and support for Winnipeg inner-city housing through the HomeWorks Program,” Ashton said. “School divisions also come out winners, benefiting from stronger, stable neighbourhoods and from an expanded tax base that generates revenue for education.”
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