The City of Yorkton is looking to expand who may be eligible for its Business Improvement Program.
Yorkton Council approved the new Business Improvement Incentive Program (BIIP) in November, with incentives taking effect in January of this year.
The Program consists of three parts: the Fa莽ade and Site Improvements Incentive, the New Construction Incentive and the Vacant Building Tax Abatement.
"There has been strong interest in the Program, especially for the Fa莽ade and Site Improvements Incentive, where six businesses have already initiated the formal application process," explained Michael Eger Director of Planning, Building & Development with the City at the regular meeting of Yorkton Council Monday.
However, there have been concerns about eligibility.
"Though uptake has been positive, City Administration, along with our partners at YBID and Chamber of Commerce, have been receiving negative feedback about the 鈥渓ocal鈥� requirement that is laid out for the New Construction Incentive and the Vacant Building Tax Abatement," said Eger.
"This regulation states that a business may only qualify for these parts if 51 percent of their shareholders reside in the City. The rationale was partly that we needed to define what 鈥渓ocal鈥� means, but more so that City incentives are funded by our taxpayers and that it would be unfair to fund non-resident."
The report to Council Monday from Administration was to "gauge Council鈥檚 willingness to change the criteria on what is considered local, potentially opening up the program to business owners who reside in neighbouring communities, and possibly beyond," said Eger.
It was suggested Council may wish to apply a sliding benefit 鈥� for example, two-thirds to a business whose majority of shareholders live in a neighbouring RM, and one-third to a business whose majority shareholders live outside the neighbouring RMs but are still within the City鈥檚 primary trading area.
The rationale for non-residents qualifying is that "regardless of where they pay their residential taxes, business owners will be investing into our economy and also paying commercial property taxes," detailed Eger.
"The reason to consider a sliding benefit is because non-residents who live near the City likely support Yorkton businesses in the same way a resident would, but obviously do not pay residential property taxes.
"Business owners from further away would still support many of our more regional businesses, but would typically participate in our economy at a lesser level."
Councillor Chris Wyatt moved the recommendation Administration be directed to expand the applicability of Business Improvement Incentive Program by allowing business owners who reside in neighbouring communities to be considered for pro-rated incentives that are otherwise available to those who reside in the City, and return to a future Council meeting for adoption. In making the motion he noted he wasn't concerned about where the owners lived as they would still be making their building better, and in that process "make the city look better."
Coun. Darcy Zaharia took a similar view stating "as long as businesses are in Yorkton it doesn't matter where the owners are."
Coun. Randy Goulden was on side with the idea too. She said the program would still be "going to enhance businesses" that the City collects taxes from.
