Centre Wellington council heard support for a plan to revitalize the downtowns of Fergus and Elora from a subcommittee of its economic development committee on June 14.
Economic Development Officer Dave Rushton explained the plan has been prepared for nearly two years and it is a program that will encourage businesses to spruce up their properties to make the downtowns more attractive.
The four areas recommended are:
– loans for new signs;
– loans for façade improvements;
– deferred tax through a tax incremental program; and
– participation in brownfield redevelopment projects.
Rushton said the loans of $1,000 for new signs are with zero interest, for five years. He said the idea is nine businesses per year could borrow up to $9,000 for new signs.
For façade loans, a business could borrow up to $30,000 at zero interest for five years.
Rushton said the tax incremental recommendation means someone could rejuvenate an old business or property that is taking almost nothing in taxes. The first year, the new value of the building would be taxed at 10 per cent, the next year 20 per cent and so on until after ten years the property owner was paying full taxes.
The township would benefit because it would be receiving a portion of the taxes that it would otherwise not receive and a business would benefit from the deferral.
Rushton said the township is not in a position to fix properties, but it can provide tax incentives. He said the improvement means more money comes into the community at little cost.
As for brownfields, the township is already working with the Little Folks property in Elora and the old St. Joseph’s Church in Fergus. Brownfields also include such things as former gasoline stations.
Rushton said the $9,000 in sign loans could come from the economic development budget. A portion would be repaid every year and the money recycled.
Benny Di Zitti, chairman of the committee doing the report, said a Community Futures Development Corporation grant help fund the work. He said the goal of the community plan is to attract new developments in the downtowns with zero invested by the township.
Councillor Kirk McElwain sat on the committee and said it checked the plans of other communities, and picked the best and most efficient.
Councillor Walt Visser asked about losing taxes if some buildings are converted to residential from commercial.
Rushton said some buildings have storage areas and encouraging the owners to convert them to apartments could enhance the downtown and actually provide more taxes instead of less.
Councillor Fred Morris said the plan is “an excellent starting point.” He questioned the security for loans for signs.
Rushton said building inspector Bob Foster is developing guidelines for that.
Morris asked what happens if a business “goes bust.” Rushton said the loan could be added to the property tax bill. Morris said it sounded complicated, and Rushton agreed that it is.
He added the next step is to develop design guidelines and send the proposal to the Ministry of Municipal Affairs and Housing. He suggested the township ask the county to become a partner in deferring taxes.
As for brownfield lands, the province pays the education tax to have those redeveloped.
Councillor Bob Foster asked why the municipality should act like a bank and hand out money. Rushton said it is not a great amount, and the idea is to help small businesses improve. He said $1,000 or $4,000 can make a great deal of improvements to a building.
Foster said, “I just don’t see the impact.”
Visser said the proposal is what the BIAs are looking for. “Our small businesses have been struggling.”
George Mochrie attended the meeting and said on behalf of the Fergus BIA his group supports it, but “It definitely doesn’t go far enough.”
The idea is to find as many sources of funds as possible for downtowns, and he noted Guelph and others (such as Minto) made the façade improvements grants instead of loans.
“We need to stop thinking this is a handout for business,” he said. “The downtown is a cornerstone of a community.”
He warned the community improvement plan is important, but, “If you stop there, it will not work.”
The Elora BIA also supported the plan.
After speaking for the BIA, Mochrie offered his personal opinions. He said downtowns are vital, but council is not bringing any money to the table. There is no incentive to businesses, and the plan falls “abysmally short.”
He would like to see the township put some money in, but there are not even any parking lots in the downtown. He said the township dithered when Reliable Motors moved to the south end of Fergus, and that opportunity for parking was lost. “An empty downtown isn’t the way you want to project your community,” he said.
He added council should “get rid of development charges in the downtown.
In 1995, Fergus spent $35,000 to identify 20 projects to improve the downtown and, “not one of them is completed by 2010.” He said the BIA itself is partly to blame.
But, Nipigon, a community of 1,800 people managed to get $5-million worth of downtown improvements, and “others get funds. We haven’t. We haven’t applied.”
Mochrie concluded “If I don’t see the actual money to the table, it’s a clear message I should maybe buy somewhere else.”
Councillor Shawn Watters asked him about the costs of the those Fergus projects, and he said they were about $60,000.
He said the BIA could still look at some of them but, “the township has to come to the table, too.”
Mayor Joanne Ross-Zuj said there was much work done in the downtowns. She added the township must continue the dialogue with the business community.
