OLDS — Residential lots in in Phase 6B of the Vistas development are now eligible for a program that provides municipal tax cuts on a sliding scale over three years.
Town council made that decision during its May 27 meeting.
The tax cuts end after the three years are up.
The program, provided under policy 1003C, enables council to grant a municipal tax cut ranging from 80 per cent the first year to 40 per cent in the third and final year.
“Once a parcel is sold or transfers owners, it immediately eligibility for and participation in the development incentive program ends,” a memo in town council’s May 27 agenda package says.
Corporate services director Sheena Linderman told council that the financial impact of granting those tax cuts would be a drop of $18,570 in the town’s municipal tax revenue.
Coun. Dan Daley asked whether the property in Vistas 6B will actually be developed.
“Are we looking at these parcels selling after the program has run its three years or are we looking at these lots sitting empty for the next three years and then going from there?” he asked.
Chief administrative officer Brent Williams said, “I haven’t driven there in a couple of weeks, but I believe at least a third of the lots have been sold and another few are under active consideration, from what I understand.
“I believe there’s five housing starts right now in there. So I think it’s moving quite well, to be fair, compared to the previous phase, which was a bit more on the higher end of lot pricing.
“But we believe within three years all the lots should be sold, in which case it becomes ineligible for the program.”
With that, council passed a motion from to include The Vistas Phase 6B development in the residential development incentive program.
