Centre Wellington is budgeting another $60,000 for Community Improvement Plan (CIP) grants.
At the June 20 committee of the whole, township economic development officer Patricia Rutter approached council seeking the additional funding.
The money would come from general reserves and be used to support the CIP’s façade, building and property improvement grant/loan program.
Rutter noted that in 2015, council approved $60,000 for the program – but not all was spent. The township approved the same amount for 2016, but approved applications now exceed that amount.
“As a result of an increased awareness for the program, there has been a substantial increase in applications to the program this year,” stated Rutter. “Recent projects like the new Get Hitched RV building at 850 St. David St. South and John Thomson & Sons Furniture Co. at 157 St. Andrew St. West would not have occurred without the suggestions and support of the CIP program.
“Additional approved projects at the former Hutten Collision building at 645 St. David St. South and the Fountain Head Health Store & Café at 212 St. Andrew St. West will see new and expanded uses for buildings that were underutilized.”
Rutter stated the return on investment realized to this point, based on the portion of the projects used for grant/loan program eligibility, (is): for every $1 invested by the township, $3.8 was invested by the private sector.
“A total of $352,000 has been invested by the private sector to this point on projects supported by CIP grants.”
Councillor Stephen Kitras said there was a lively discussion at the economic development committee on this matter “… which I initiated.”
He remained concerned as to whether there is proof the grants actually made a difference and whether or not the improvements would have been made anyway.
“We are asking citizens to add to this fund when they don’t know if it is truly necessary,” said Kitras. He questioned whether it was necessary to essentially double the program funding this year.
Rutter said the program is something the business community has requested for some time and thus far it has largely been used for façade and building improvements.
“The program is intended to increase the value of the properties and improve the attractiveness of our business areas,” said Rutter. She noted in the previous three years there were only six building permit applications for façade improvements, but since the CIP program was initiated in 2015, there have been 11 applications.
To Rutter, that indicates the incentives are leading to work over and above what might have been done previously.
CAO Andy Goldie stated that as a result of the improved properties, when the buildings are reassessed the values will increase and the township will eventually recoup the incentive costs through increased taxation.
Councillor Kirk McElwain said while he’s pleased to see interest in the program, his concern is that council did pass a budget with a specific amount of money set aside this year for the project.
“If we start increasing this amount on demand … will next year’s budget be $120,000?”
Rutter stated in 2015 $60,000 was allocated, but only $15,000 was spent.
Goldie noted the original idea was to budget $60,000 each year for the three-year CIP project.
Councillor Steven VanLeeuwen said this was not about façade improvements, but a way to help drive economic development.
“We as the township are being asked to be aggressive in our economic development,” VanLeeuwen said. “When a building looks good, businesses want to be in it.”
Mayor Kelly Linton, who said he considers the program a great success, called the demand for more program funding “great News.” He stressed “It’s not a handout, it’s an incentive for the private sector to spend more money.”
Councillors authorized the additional funding.
