Stettler town council began 2022 by offering a carrot on a stick to new businesses and those existing businesses looking to upgrade: a property tax incentive to attract new businesses or encourage existing businesses to revitalize themselves.
The bylaw was passed at the Jan. 4 regular meeting of council.
Town Chief Administrative Officer (CAO) Greg Switenky introduced Bylaw 2147-22 Non-residential new construction and/or existing business revitalization, redevelopment or expansion property tax incentive, a long name for something fairly simple in conception: new businesses, or existing ones willing to upgrade, can get a property tax break.
Switenky stated the bylaw reflects changes made by the provincial government allowing municipalities to offer, in effect, tax incentives for business.
While the provincial rules allow incentives up to 15 years, the CAO stated Stettler’s bylaw will only include four years of incentives, generally 100 per cent property tax rebate in year one to 25 per cent rebate in year four, depending on the assessed value of the property in question.
The CAO also noted several times the bylaw only applies to new businesses in Stettler and those existing businesses performing revitalization, redevelopment or expansion.
He also stated that, since the bylaw only applies to commercial and industrial businesses, home-based businesses aren’t included in this bylaw.
Assistant CAO Steven Gerlitz noted that the new bylaw covers some areas previously handled by repealed policies, and it makes it easier on staff to have everything included in one document.
Gerlitz also stated that town staff, when drafting the bylaw, looked at similar documents in other municipalities and the Town of Stettler felt four years was a fair length of time.
He also pointed out the purpose of the bylaw is to encourage growth and prosperity while eventually benefitting Stettler’s taxpayers.
“There has to be an economic gain to the Town of Stettler,” said Gerlitz.
Mayor Sean Nolls noted that Stettler wants to attract new businesses that plan on staying in town long-term, and this bylaw keeps that goal in mind.
He added that initially, with this bylaw, businesses get a break at the beginning but their tax bill increases over time and he also felt four years was a fair length of time for the bylaw to apply.
Coun. Gord Lawlor stated developing a bylaw like this was challenging, as he wanted it to be fair to everyone.
Coun. Scott Pfeiffer stated that, when developing this bylaw, he and his peers looked at what is fair for both new and existing businesses.
Mayor Nolls added that the town has to be fair and equitable to existing businesses, because they are the ones that got Stettler into the comfortable place it occupies now. “It has to be fair and equitable,” said Nolls.
The bylaw contains many sections and conditions too numerous to list here.
The CAO pointed out a section of the bylaw which notes that provincial requisitions that appear on a Town of Stettler property tax bill aren’t covered by this bylaw and must still be paid; also, he pointed out the bylaw takes effect after it’s officially approved by council and is not retroactive.
Switenky added that he thought the bylaw was comprehensive, but not every situation can ever be predicted beforehand and the bylaw may need to come back before council in the future.
Councillors unanimously passed all readings of the bylaw necessary to bring it into effect.
Stu Salkeld, Local Journalism Initiative reporter
ECA Review
