Quoted from a letter from the Chamber to town council. The full letter can be viewed at www.niverville.com.
• Policy F4-16 refers to refunds being granted to any business “establishing a new business or relocating to Niverville.” Could council please clarify who will receive the tax refund? The policy states it will be “the business in question.” In many cases, developers and contractors build buildings and then lease them to businesses. Under F4-16, it appears that the new businesses will get the refund but not the developer/contractor, so where is the incentive for developers/contractors to build on spec? What if the business taking over new space is an existing business—does that mean no one gets the tax refund?
• Mayor Dyck, during the media conference, identified the Heritage life lease venture and a private business as being “grandfathered” under this policy because their establishments were not yet occupied. We would like council to explain the following:
• F4-16 makes no reference to grandfathering of as-yet-to-be-occupied buildings. If a business that is currently in the process of building reviews this policy, there is no indication that they could qualify for a refund. To ensure transparency and fair treatment of all, how does council intend to communicate the “grandfathering” provision?
• Business ventures that wish to succeed conduct feasibility studies and develop business and financial plans before they put a “shovel in the ground.” We would expect that their financial projections would not, and should not, expect tax forgiveness after the fact. That would not be astute business planning. Could council explain why it decided to extend tax forgiveness to entities that should have based their business ventures on sound economic assessment prior to building? Under the circumstances as they have been presented, F4-16 becomes a tax gift rather than a tax incentive. Is this an appropriate use of tax dollars?
• Policy F4-16 [states], “Council shall have sole discretions in the application of the grids set out above.” Could council expand on the exact meaning of this point? Does it mean that council will approve every application for a tax refund? Does it mean that council will look at each application, review the explicit details, determine what line of the grid applies to each applicant, and then make a decision? How does council intend to avoid the potential for real or perceived political favoritism?
