First use of Revitalization Tax Exemption downtown

Mar. 12, 2012 City Of Kelowna

Davara Holdings Ltd. is the first property developer to take advantage of a tax exemption bylaw designed to encourage quality building developments. Council approved a Revitalization Tax Exemption Agreement Monday with the developer for a property at the corner of Leon Avenue and Bertram Street. The property owner qualifies for a 50 per cent municipal share tax exemption for 10 years on the improvements after the new office building is constructed. "It's encouraging to see this tax exemption being used now. I hope other property owners look at this option to revitalize the downtown incentive area and in the Rutland urban centre," said Mayor Walter Gray. The Revitalization Tax Exemption Bylaw was amended in 2011 as an incentive for property owners to invest in new projects that energize sections of urban centres. Properties within the incentive areas can qualify for municipal share tax exemptions on the improvements of up to 100 per cent. The bylaw applies to an area downtown roughly bounded by Harvey Avenue, Lawrence Avenue, Ellis Street and the laneway behind Abbott Street. The Rutland urban centre incentive area covers a general area along Highway 33 between Rutland Road South and Hollywood Road. The long-term objective of these agreements is to create places that attract pedestrians, commercial activity and residential development. Along with the commercial and esthetic benefits of energetic city streets, the compact arrangement of residences and businesses encourages more walking and requires less vehicle use.