Wellington County council has approved a program of tax incentives for the new Pearle Hospitality development in Elora, in partnership with the Township of Centre Wellington.
County councillors agreed, following an in-camera session on March 31, that once the development is complete and increased assessment values are reflected by the Municipal Property Assessment Corporation (MPAC), the county will provide property tax rebates as a result of the development improvements.
The county states the incentives are designed to rebate a percentage of the incremental taxes on a declining balance basis over a five-year term.
A resolution approved at the March 31 meeting indicated the incentives will amount to 100% of the tax increment in year one; 80% in year two; 60% in year three; 40% in year four; and 20% in year five; returning to full taxation in year six.
“The County of Wellington supports and looks forward to the restoration and expansion of the former Elora Mill site,” Warden George Bridge stated in an April 1 press release.
“This development will enable us to host large conferences and have visitors stay in the community longer. This four-season destination will also create economic spin-offs all across the county.”
Centre Wellington has identified the Pearle Hospitality development proposal for the Elora Mill and former Little Folks property redevelopment as a priority site and has approved tax increment equivalent grant financing of 80% each year, for the next 10 years.
“I am extremely pleased that the county has expedited their Community Improvement Plan (CIP) program to support the Pearle development proposal for the Elora Mill and former Little Folks Property Redevelopment,” stated Centre Wellington Mayor Kelly Linton.
“The Township of Centre Wellington approved our CIP program in the spring of 2015 to facilitate improvements and authorized incentive programs for rehabilitation, development and redevelopment projects within the targeted areas of Centre Wellington.
“Within one year of implementing this, we have already seen successful results of what the CIP can do to improve local businesses and our economy.”
In a joint press release, the county and township highlight a number of projected benefits to the municipalities:
– approximately 205 new full-time jobs and 40 part-time jobs in Centre Wellington and the county, including five skilled management positions and five full-time maintenance positions;
– diversification of the local economy;
– development of opportunities for longer tourism stays, rather than day-trips; and
– increase to the commercial and industrial assessment base.
