Tax breaks for developing polluted land are back

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The reintroduction of Ottawa's brownfields program, offering grants to developers working on contaminated land, has sparked discord, notably disappointing Mayor Mark Sutcliffe, who had campaigned against these tax breaks. The initiative aims to promote the revival of vacant or derelict properties, often previously hosting polluting businesses like gas stations. Although paused for review after the previous election, a revamped proposal, which imposed new grant limits and garnered Sutcliffe's support, was rejected by councillors in a 14-8 vote. This decision effectively reinstated the contentious program, despite Sutcliffe's reservations and public concerns about incentivizing development on contaminated lands.

The crux of the program lies in encouraging projects that developers might otherwise overlook. However, concerns persist regarding the application process's inability to guarantee such outcomes, as highlighted by Don Herweyer, the interim general manager overseeing planning, real estate, and economic development. The staff's recommendations, disregarded by the council, aimed to link the program with an affordable housing incentive, eliminate development charge deferrals, and cap project grants. Ottawa initiated this grant model in 2007, approving over $161 million for 69 projects, although the actual funding allocated was notably lower. Numerous other municipalities have similar programs, often covering more substantial portions of project costs, indicating a widespread adoption of this approach.

During discussions, council members contested the program's efficacy, pointing out its potential benefits for the city's growth, contrasting staff's data on the creation of office and commercial spaces and employment opportunities with the call for restructuring. The financial aspect was a pivotal debate point, with councillors highlighting increased tax revenues from these developments. However, city officials, including the mayor, and the chief financial officer, Cyril Rogers, cautioned against oversimplifying the financial gains, emphasizing the increased costs incurred by the city for services provided as developments progress. Rogers stressed the importance of safeguarding the city's finances, suggesting that the proposed program changes would have offered better protection in this regard.

Read the full article on: CBC