Brownfield Tax Exemption

The Brownfield Tax Exemption encourages redevelopment of under-utilized or contaminated properties in Fort Saskatchewan’s mature neighbourhoods.

The Brownfield Tax Exemption:

• Offers a 100% exemption on the incremental increase in municipal property taxes.
• Applies to new multi-unit and mixed-use residential development on qualifying Brownfield properties.
• Exemption is available for up to 15 years.
• Total exemption value is limited to 5% of the project’s eligible capital costs.
• Brownfield sites are defined as properties that:
  • Are, or may be, contaminated
  • Are vacant, derelict, or under-utilized
  • Have potential for redevelopment

Funding and Calculation of Exemption

The Brownfield Tax Exemption program provides a 100% exemption of the municipal portion of property taxes for a period of up to 15 years and up to a maximum of 5% of the Eligible Capital Costs for eligible projects.

Eligible Capital Cost are defined as the lower of the actual total capital costs incurred to build the Project, and the estimated capital costs to the Applicant to build the Project as outlined in the Complete Application. Capital costs shall include any new expenditures on labour, engineering, materials or other costs associated with the construction of a Project, including remediation or other environmental costs to a maximum of $2,000,000, but shall not include costs related to the acquisition of land, improvements to land, or buildings that existed on the land before construction commenced, maintenance costs, or other non-capital costs such as legal/regulatory/permitting fees.

1. Upon Completion of Construction, the Applicant must submit documentation or other supporting evidence to establish the actual total capital costs of the Project.
2. Upon receiving the documentation or other supporting evidence of the actual total capital costs of the Project submitted by the Applicant, the City Manager shall establish the Eligible Capital Costs of a Project.
3. Subject to the provisions of the Bylaw, an Exemption will begin in effect:
   • following Completion of Construction;
   • when the first taxation year to which an Exemption will apply, as provided in the certificate granting the Exemption, is reached;
   • when occupancy of the Project has been authorized by a qualified Safety Codes Officer; and
   • the City Manager has established the Eligible Capital Costs, in accordance with this Bylaw.
4. A certificate granting an Exemption will be required for all granted Exemptions.

Eligibility

To be eligible for an Exemption, the following eligibility criteria must be met:

1. Requirements for a Project:
   • be constructed on Eligible Property;
   • be New Construction ;
   • be a minimum of 2 storeys;
   • result in the construction of a minimum of
     • four (4) new Dwelling Units per Multi-Unit Development;
     • two (2) new Dwelling Units above ground-floor commercial per Mixed Use Development; or
     • 50% of the total area (m2) of the Project consists of Dwelling Units.
   • obtain all necessary development approvals from the City;
   • either:
     • commence construction subsequent to the passing of Bylaw C15-22; or
     • Completion of Construction occurs subsequent to the passing of Bylaw.
2. Requirements for a Property:
   • be an Eligible Property;
   • be in compliance with all conditions of any applicable Development Permit, excluding any condition of an ongoing nature;
   • not be subject to a stop order, pursuant to section 645 of the Act;
   • not be in arrears or have amounts owing with regards to property tax, utilities, or other fees owed to the City;
   • not going through foreclosure;
   • not be the subject of an application or grant under the City's development grants program; and
   • not be in violation of a development agreement or the Safety Code Act at any time during the term of the Exemption provided for in a certificate issued pursuant to this Bylaw.
3. Requirements for Applicant:
   • Applicant is the Assessed Person or authorized agent for the Assessed Person;
   • Assessed Person must not be in arrears or have amounts owing with regards to property tax, utilities, or other fees owed to the City;
   • Assessed Person must not be in bankruptcy or receivership;
   • Assessed Person must be in compliance with terms and conditions of any grant or other financial assistance received from the City, irrespective of the Project; and
   • Assessed Person and their agent must not furnish false information within an application, or furnish false information or misrepresent any fact or circumstance to the City.

Application and Guidelines

The application process and details regarding funding, the calculation of exemption, the tax incentive certificate, cancellation of exemptions, and the review board process, are detailed in Bylaw C15-22.