A Tax Increment Equivalent Grant (TIEG) is a grant equivalent to a portion of the municipal property tax increase on an improved or redeveloped property, the city said in a news release on Friday.
Upon project completion, the City provides a grant to the property owner on an annual basis for an agreed upon term. Often the grant program diminishes in scale over the duration, starting at 100 per cent at year one and dropping each year until the last year of the program. Through the Downtown Office CIP, TIEGs are limited to property taxes charged by the City and are prorated to apply to the office development only.
The CIP supports the City’s goal to achieve a 1:1 employment to resident ratio in the downtown and the 2051 Region of Peel employment growth target.
The CIP is set to expire on July 4, 2022. The City is proposing to extend the CIP to April 2026 to align with the Region of Peel’s new Major Office Incentives (MOI) program that will more than double the benefit of the City’s TIEG.
A public meeting is taking place at Planning and Development Committee to consider the proposed extension of the City’s Downtown CIP to April 2026.