Project may get tax break

by Jennifer Smith - Vernon Morning Star posted Dec 22, 2013 at 1:00 AM
Tolko could be getting a break from the taxman with its proposed pellet plant. The 7.1 acres directly north of the Lavington mill may be added to Coldstream’s tax revitalization exemption bylaw, if ALC approval is granted to the pellet plant project. The bylaw was created in 2012 in four areas of the community to encourage construction of new buildings and improvements of existing buildings to create economic activity for the community. Currently the map for the Lavington industrial revitalization area includes the Tolko mill and Tolko has applied to have the proposed pellet plant location included. Doing so would defer any tax increase due to construction for five years, followed by a gradual recuperation over the next five years.. “They will continue to pay taxes on the value of what’s there today, but for the increased construction value the taxes aren’t levied on that,” said Trevor Seibel, Coldstream’s CAO. “By them doing this project, even though we’re going to defer when we collect our municipal taxes on it, we still collect all the other associated fees. It provides some relief just to assist. It’s a way of encouraging economic development. They’re putting $40 million into the community, they’re going to create some jobs, create economic activity.” But one councillor has some issue with the loss of tax dollars. “I believe the municipality has given the applicant relief from the zoning already,” said Coun. Peter McClean, who opposed the move. “I feel the municipality could use those tax revenues.” Along with the Lavington area, there are tax revitalization opportunities for the Trintec shopping centre, Ricardo Road industrial area and the Town Centre.