Brownfield Tax Increment Grant

Purpose

To provide an economic incentive for the rehabilitation and remediation of brownfield properties by providing a grant to the owner of the property to pay a portion of the local taxes (excluding education taxes) attributable to the increased assessment over a five (5) year period.

Grant Amount Available

1. Calculation: The grant is calculated based on the increased assessment value after the renovation/construction, as determined by the Municipal Property Assessment Corporation (MPAC), at the tax rate that was applicable in the year the renovation or construction was completed.
2. Period: The grant will be provided for approved projects on a declining basis over a five (5) year period. Assessment is fixed from year one and the change in assessment will be determined by MPAC assessment such that the market value portion of increased assessment is not eligible.
3. Ineligible Tax Increases: Tax increases resulting from general re-assessments, changes in tax legislation, or increases in the tax rate are not eligible to be considered for the purposes of calculating this grant.

Sample Grant Calculation:

7. The total value of all grants received for a subject property shall not exceed the cost of rehabilitating the lands and buildings. The amount of the grant over the life of the program shall not exceed eligible costs as per Section 28(7) and 28(7.3) of the Planning Act, as amended.

Eligible Costs

Eligibility for Brownfield  Tax Increment Grant is restricted to brownfield remediation or rehabilitation on properties. Projects must have previously conducted a Phase II ESA and show demonstrated viability of property improvement. Environmental Site Assessments (ESAs) are not eligible for funding under this grant, but may be eligible under the Environmental Remediation Grant. 

Eligible Areas

The program is available to properties in any of the CIP areas, subject to all other policies of this CIP.

Other Eligibility Requirements

1. Tenure Type: The Applicant shall be the registered owner of the property.
2. Building Permit Value: The building permit for the project must have a minimum permit value of six thousand five hundred dollars ($6,500) for the project to qualify.
3. Performance Expectations: Projects considered for the Brownfield Tax Increment Grant must demonstrate specific performance expectations directly related to property or building rehabilitation.
4. No Duplication: The Brownfield Tax Increment Grant is not eligible to be combined with fee exemptions through the Norfolk County Development Charges By-law 19-100, as may be amended. Applicants which enter into an agreement for the Brownfield Tax Increment Grant shall forfeit such exemptions and be subject to all charges due by the methods established within the Development Charges By-law.
5. Grant Available for Existing Structures Only: Eligibility for the Brownfield Tax Increment Grant is restricted to projects comprising building renovations, refurnishing, repurposing, and expansions. Substantial physical improvements or alterations made to existing structures including façade, structural, and site improvements are eligible costs.
6. Application Required before Commencement of Work: All Applicants shall submit an application for the specific program(s) to Norfolk County prior to the commencement of any works.
7. Agreement: All Applicants that are approved to receive a Brownfield Tax Increment Grant will enter into Site-Specific Funding Agreement with Norfolk County that specifies the terms of the grant.
8. Transference: Approved grants are not transferable to any other property but may be transferred to a new owner of an approved property, provided the new owner meets and agrees to the terms and conditions of the grant.
9. Council’s Right to Discontinue or Cancel Program: Norfolk County may discontinue or cancel a program at the sole discretion of Council.
10. Required Documentation: Submission of drawings and/or plans shall be required as part of the application. The applicant shall provide a copy of all Environmental Site Audits, invoices and payments for site remediation, acknowledgment of Record of Site Condition and any documentation deemed necessary to confirm the site as a brownfield that required and was remediated or rehabilitated. Any documents may be reviewed by Norfolk County staff or a third party expert to confirm eligibility, to the satisfaction of the Director of Strategic Innovation and Economic Development (Director).
11. Estimates & Proposal: The Applicant must submit an application including a detailed proposal and at least two estimates for consideration, prior to commencement of the improvement works. The Director, or designate, shall review each application to ensure the eligibility of the Applicant.
12. Approval by Council: The Director, or designate, shall submit a report to Norfolk County Council with a recommendation for the Application. Applications for funding under the Brownfield Tax Increment Grant program must be reviewed and approved by Norfolk County Council.
13. Pre-Improved Assessed Value: The pre-improved assessed value of the property will be the MPAC assessed value of the property on the date of the application for the building permit.
14. Completion of Project: The Chief Building Official, or designate, will inspect and approve improvements of the building upon completion, as required. Improvements shall be consistent with any existing design guidelines or other policies.
15. Audit: Norfolk County may undertake an audit of work completed and associated costs if it is deemed necessary.
16. Compliance with Policies and Standards: All works approved through the CIP shall comply with all Municipal policies and standards, including zoning, design guidelines (if any) and heritage matters and will be subject to planning and development approvals and building permits pursuant to the Ontario Building Code.
17. Outstanding Work Orders: Any outstanding work orders registered against the subject property shall be satisfied prior to the grant being made or be satisfied as part of the proposed work.
18. Conditions for Issuing Grant: For the Brownfield Tax Increment Grant to be paid, the final project must be significantly consistent with the project outlined at the application stage. Otherwise, the Director, or designate, may refuse to issue a grant.
19. Implementation of Agreement: On completion of the project, if the construction complies with all applicable program guidelines, including verification of eligible costs, the owner(s) and Norfolk County will implement a Site-Specific Funding Agreement.
20. Demolition Forfeits Grant: If the property is demolished, in whole or in part, before the expiration of the grant period, the grant shall cease, and all previously received grant payments will be repayable to Norfolk County.
21. Nature of Agreement: The Brownfield Tax Increment Grant Agreement will stipulate the pre-improved and post-improved assessed value, applicable municipal tax rate of that year, the amount of the grant in that year, the method to be used to calculate the grant in the subsequent four years, and the anticipated delivery dates of the grant.
22. Applicability to Provincial Funding: Applicants may be eligible to apply for concurrent funding at the provincial level, such as the Provincial Brownfields financial tax incentive program (BFTIP) to receive assistance with the education portion of property taxes.
23. All applicable general terms also apply.

Grant Payment

1. Schedule: The Brownfield Tax Increment Grant will be provided in accordance with a schedule to the registered owner(s) of the property on an annual basis, as outlined in the Site-Specific Funding Agreement between the owner(s) and Norfolk County.
2. Other Conditions: Norfolk County shall not pay an annual grant that exceeds Norfolk County’s portion of the property tax collected in any year.
3. Annual Confirmation of Taxes Paid: It is the responsibility of the Applicant to confirm that taxes, utilities and any other municipal financial obligations have been paid in November of each year, and to request that the grant be paid in December of each year if taxes are paid. The Brownfield Tax Increment Grant payment must be recorded in the Norfolk County financial system in the appropriate fiscal year. Applicants who do not confirm that taxes are paid and request the grant before the deadlines may forfeit their right to the grant funds.
4. Option to Terminate Future Grant Payments: All property tax installments owing for each year must be fully paid for the entire year prior to the provision of any annual grant amount under this program. If a property tax installment is missed, or payment is late, Norfolk County will have the option, without notice and at its own discretion, to terminate all future grant payments.