City rethinking commercial tax breaks for Orlans

The City of Ottawa is revamping tax incentivesaimed at attracting highly skilled jobs toOrlans, settling instead for commercial redevelopment that creates full-time positions of any kind.

Long before it targeted Vanier for revitalization, awarding aPorsche dealership therea tax break that could be worth $2.9 million over 10 years,the city created a pair of community improvement plans for Orlans.

• Tax break for Porsche dealership gets green light

One,aimed at the eastern suburb's main commercial strip ofSt. Joseph Boulevard, has resulted in seven grants since 2009, including anew Farm Boy grocery store that by next year will get back$448,621 of the $640,887 it's paid in taxes since opening in 2012, a rebate of 70 per cent.

The other program offeredtax incentives for anyredevelopmentthat lures highly skilled jobs to Orlans, where there are 120,000 residents but few employers. Only a couple of grants have been given since that second program was launched in 2013.

"Neither had the uptake that we would have liked to have seen," said Coun. Matt Luloff during a virtual community meeting Wednesday night.

Now, the city will combine bothprograms to try to lure more jobs, improve St. Joseph Boulevardand encourage street-level businesses to open nearthe new light rail extensiondue to arrive in a few years.

East end 'open for business'

Innes ward Coun. Laura Dudas said the revamped program should send the message that the east end is "open for business."

Economic development officer Chris Cope said applicants will have to show that their developments wouldn't go ahead without the city grant.

Copesaid the city wasn't having great success attractingknowledge jobs to Orlans, and will instead aim for redevelopment that can create any 20 full-time positions of any kind.

"We simply want jobs. More jobs in Orlans, I think, is a good thing," said Cope.

The tax incentive would be capped at $5 million over a decade.

Cope said staff have mapped out 700 commercial properties in Orlans that could stand to be renewed and would be eligible, but saidthe city can't"cherry pick" grant recipients.

Because provincial lawprevents municipalities from offering other financial incentives, such community improvement plans are one of the few tools the city hasto promote economic development, municipal officials say.

Council has decided toput off a cost-benefit analyis of the community improvement programuntil 2023.

The Orlans community improvement plan goes to the finance and economic development committee July 6, rising to city council the nextday.