THUNDER BAY — The City of Thunder Bay is proposing modifications to the incentive plan that encourages the development or redevelopment of property around Thunder Bay International Airport.
In 2003, city council designated the 345-hectare airport property a Community Improvement Plan project area, as permitted under provincial law.
That, in turn, allowed for the adoption of a financial incentive program to stimulate investment and development.
The current plan grants back any increase in municipal property taxes which arises from the development of any "aerospace" activity, to a maximum of the total value of the cost of the development.
The rebates are given yearly until they reach 100 per cent of the original expenditure.
City staff are now proposing a reimbursement deadline of 25 years, upon which no further rebates would be provided even if the developer's expenses haven't been completely covered.
A city spokesperson says some other cities have established deadlines of only 10 years
Another change to the plan would broaden the definition of aerospace-related developments beyond manufacturing.
The use of the property, however, would still have to directly support airport activity, such as a hangar, cold storage or warehousing.
A planning department official said a restaurant, hotel or car rental agency would not likely qualify.
Leslie McEachern, manager of planning services for the city, said the program is aimed at helping Thunder Bay Airport stay competitive with other airports looking for development.
"We certainly have a lot of developable land at the airport," McEachern said. "Any investment in the community works toward supporting our economy, so we're certainly interested in seeing our airport thrive and continue to develop to support a variety of economic activities" in Thunder Bay.
Since the Airport Community Improvement Plan was introduced in 2004, three developments on airport property have been approved for tax rebates.
Airport CEO Ed Schmidtke could not be reached Monday for comment, but a city spokesperson said "the Airport Authority assures us that this program helps them interest potential developers and industries and remain competitive."
She said the airport "continues to actively engage other developers and businesses that may be eligible."
According to McEachern, the city has rebated about $545,000 in taxes under the program so far.
"We believe the incentive plan has been a success," she said.
