THE CORPORATION OF DELTA. Delta Industrial & Tourism Revitalization Tax Exemption Program Bylaw No. 7353, 2016

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1 THE CORPORATION OF DELTA Delta Industrial & Tourism Revitalization Tax Exemption Program Bylaw No. 7353, 2016 A bylaw to establish a revitalization tax exemption program to encourage higher value industrial and commercial tourism development in Delta WHEREAS Council may, by bylaw, establish a revitalization tax exemption program to encourage various types of revitalization to achieve a range of economic, social and environmental objectives, pursuant to Section 226 of the Community Charter; AND WHEREAS Council recognizes the importance of accelerating new business, industrial and commercial investment, and new employment; AND WHEREAS Council has identified areas where there are opportunities for industrial and commercial tourism development and wishes to encourage revitalization through incentives; AND WHEREAS a revitalization tax exemption program bylaw may only be adopted after notice of the proposed bylaw has been given in accordance with Section 227 of the Community Charter; AND WHEREAS Council has considered the proposed bylaw in conjunction with the objectives and policies set out in Delta s five-year financial plan; NOW THEREFORE the Council of The Corporation of Delta, in open meeting assembled, ENACTS AS FOLLOWS: PART ONE CITATION 1.1 This Bylaw may be cited as the Delta Industrial & Tourism Revitalization Tax Exemption Program Bylaw No. 7353, PART TWO OBJECTIVES 2.1 The Revitalization Tax Exemption program is intended to: Promote the development of industrially-zoned land for higher-end industrial uses, such as industrial parks; Encourage the rezoning of I-3 (Industrial extraction) land to higher value industrial zones; Encourage industrial development that involves the consolidation of a minimum of four smaller lots to create larger, single development sites;

2 PART THREE DEFINITIONS Protect the Burns Bog Ecological Conservancy Area from the impacts of developments that may occur on adjacent property through measures such as buffer zones, stormwater management, lighting and noise mitigation; and Encourage the diversification and expansion of tourism accommodation and facilities, consistent with the Delta Tourism Strategy. For the purposes of this Bylaw: Agreement Application Form Base Year means a Revitalization Tax Exemption Agreement between the Owner of a Parcel and Delta pursuant to this Bylaw and Section 226(7) of the Community Charter in the form attached to and forming part of this Bylaw as Schedule B. means the Application Form prescribed by the Director of Finance. means the year in which the Tax Exemption Certificate is issued. Construction Value Delta Delta Tourism Strategy Director of Finance Economic Incentive Investment Zone Eligible Project means the total value of all construction work related to an Eligible Project, as certified by a qualified professional. means The Corporation of Delta. means The Corporation of Delta Tourism Strategy, dated October 2006, prepared by Grant Thornton. means the Director of Finance for Delta or his or her designate who is the municipal officer for the purpose of section 226(13) of the Community Charter. means the area within the boundaries of Delta, designated and shown on Schedule A, which is attached to and forms part of this Bylaw. means a project with a minimum Construction Value of $5 million located on an Eligible Property within the Economic Incentive Investment Zone which involves at least one of the following: (i) (ii) a redevelopment of an existing industrially-zoned parcel with a project construction value of $10 million or more; a rezoning of land from I-3 (industrial extraction) to another industrial zone or a comprehensive development zone, as approved by Delta Council; Page 2 of 17

3 (iii) (iv) the consolidation of a minimum of four industrially-zoned lots; or development involving the diversification or expansion of tourism accommodation or facilities in a C-3 zone or comparable zone that permits tourism/accommodation uses. For projects on land immediately adjacent to the Burns Bog Ecological Conservancy Area, an Eligible Project must also comply with the conditions outlined in Schedule D. Eligible Property means a property zoned Industrial or Commercial Tourism (C-3) within the Economic Incentive Investment Zone, with the exception of: properties that are eligible for financial incentives under the Delta DLC Landfill Site Economic Investment Zone and Revitalization Tax Exemption Program Bylaw No. 6985, 2011; the Burns Bog Ecological Conservancy Area; land in the Agricultural Land Reserve; and land owned by a Public Authority. Land or Lands means the property for which a Tax Exemption Agreement and Tax Exemption Certificate have been issued. Municipal Property Tax Owner Parcel Public Authority means property taxes Delta Council has imposed pursuant to Section 197(1)(a) of the Community Charter, S.B.C. 2003, c. 23, and does not include any other taxes. means any person who is a registered owner in fee simple of a Parcel. means a legal parcel within the Economic Incentive Investment Zone upon which an Owner proposes to undertake an Eligible Project. means any of the following: the government of Canada, the government of British Columbia or the government of another province, or an agent of any of them; a local government body, educational body or health care body, as those terms are defined in the Freedom of Information and Protection of Privacy Act; a first nation; a body in another province or country that provides local government services; Page 3 of 17

4 any other body prescribed by regulation as a public authority for the purposes of one or more provisions of this Act or the Local Government Act. Tax Exemption Tax Exemption Certificate PART FOUR means a Revitalization Tax Exemption pursuant to a Tax Exemption Certificate. means a Revitalization Tax Exemption Certificate issued by the Director of Finance pursuant to this Bylaw and pursuant to the provisions of Section 226(8) of the Community Charter, in the form attached to and forming part of this Bylaw as Schedule "C". ESTABLISHMENT OF ECONOMIC INVESTMENT INCENTIVE ZONE AND REVITALIZATION TAX EXEMPTION PROGRAM 4.1 Pursuant to the Community Charter, there is hereby established the Delta Industrial and Tourism Economic Incentive Investment Zone. 4.2 Pursuant to the Community Charter, there is hereby established a Revitalization Tax Exemption Program for the Delta Industrial and Tourism Economic Incentive Investment Zone, providing a Revitalization Tax Exemption for Eligible Projects. PART FIVE REVITALIZATION TAX EXEMPTION PROGRAM 5.1 The amount of the Tax Exemption from Municipal Property Taxes for an Eligible Project under this Bylaw will be equal to the difference of amount between: i. the current year s annual Municipal Property Taxes for the Parcel, for land and improvements, and ii. the annual Municipal Property Taxes payable in the Base Year for the Parcel, for land and improvements. 5.2 A Tax Exemption Certificate will apply to a Parcel after the following conditions are met: i. The Owner has satisfied all applicable provisions of this Bylaw; ii. The Owner has entered into an Agreement with Delta, substantially in the form and with the content of the Agreement attached as Schedule C ; and iii. The Owner has applied for and received a Tax Exemption Certificate for the Parcel. 5.3 The maximum term of a Tax Exemption for a Parcel is five years. 5.4 The Tax Exemption Program does not apply retroactively. Page 4 of 17

5 5.5 After December 31, 2023, no further Tax Exemption Certificates will be issued under this Bylaw. 5.6 After all the provisions, terms and conditions in this Bylaw and the Agreement are met, and after Council authorizes the issuance of the Tax Exemption Certificate, the Director of Finance shall issue a Tax Exemption Certificate for the Parcel. 5.7 The terms and conditions upon which a Tax Exemption Certificate may be issued are as set out in this Bylaw, the Agreement and the Tax Exemption Certificate. 5.8 For Eligible Projects on property immediately adjacent to the Burns Bog Ecological Conservancy Area, the Owner must comply with those additional requirements outlined in Schedule D to this Bylaw, to mitigate environmental impacts on Burns Bog. 5.9 For a Tax Exemption to commence in any given year, the Owner must submit an Application Form for a Tax Exemption Certificate to Delta by July 31 of the preceding year in order to receive the certificate by October An Owner who wishes to apply for a Tax Exemption must submit to Delta a completed Application Form in writing, accompanied by: i. a certificate that all taxes assessed and rates, charges and fees imposed on the Parcel have been paid and, where taxes, rates or assessments are payable by installments, that all installments owing at the date of application have been paid; ii. a copy of the current property assessment notice for the Parcel as issued by the British Columbia Assessment Authority; and iii. a description of the Eligible Project, including cost estimates A Tax Exemption Certificate may be cancelled by Delta at the request of the Owner or if any of the following occur: i. The Owner breaches any condition of the Agreement or the Tax Exemption Certificate, or ii. The Parcel is put to any use that is not permitted or fails to meet any of the requirements for an Eligible Project If the Tax Exemption Certificate is cancelled: i. the Director of Finance will notify the Owner as soon as is practicable; and ii. the Owner will remit to Delta an amount equal to the value of the Tax Exemption received. Page 5 of 17

6 PART SIX BUILDING PERMIT, PLUMBING PERMIT AND APPLICATION FEES 6.1 Despite any other bylaw, building permit fees, plumbing permit fees and land use application fees for Eligible Projects will be reduced by up to 60%. PART SEVEN SEVERABILITY 7.1 If any part of this bylaw is held to be invalid by the decision of a court of competent jurisdiction, such decision does not affect the validity of remaining portions of this bylaw. READ A FIRST TIME this 9 th day of May, READ a second time this 9 th day of May, READ a third time this 9 th day of May, FINALLY CONSIDERED AND ADOPTED this 13 th day of June, 2016 Lois E. Jackson Lois E. Jackson Mayor Robyn Anderson Robyn Anderson Municipal Clerk Page 6 of 17

7 SCHEDULE A DELTA INDUSTRIAL & TOURISM ECONOMIC INCENTIVE INVESTMENT ZONE AND POTENTIALLY ELIGIBLE PROPERTIES FOR MUNICIPAL TAX EXEMPTION Page 7 of 17

8 SCHEDULE B THIS AGREEMENT dated the day of, 20. BETWEEN AND WHEREAS: REVITALIZATION TAX EXEMPTION AGREEMENT [Insert name and address of Owner of Land in respect of which the revitalization exemption will apply] (the Owner ) THE CORPORATION OF DELTA 4500 Clarence Taylor Crescent Delta, British Columbia V4K 3E2 ( Delta ) A. The Owner is the registered Owner in fee simple of Land in Delta at [civic address] legally described as [legal description]; B. Delta Council has established a Revitalization Tax Exemption Program for the purpose of encouraging higher-value industrial and commercial tourism development and has included within the Delta Industrial and Tourism Revitalization Tax Exemption Program Bylaw No. 7353, 2016 a designation of areas, which include the Land, as the Delta Industrial & Tourism Economic Investment Incentive Zone; and C. The Owner proposes to undertake an Eligible Project on the Land and has applied to Delta to take part in the Revitalization Tax Exemption program in respect of the Eligible Project and Delta has agreed to accept the Eligible Project under the program. THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained in this Agreement and the payment by the Owner to Delta of consideration in the amount of $1 (One Dollar), the receipt and sufficiency of which are acknowledged by Delta, Delta and Owner covenant and agree with each other as follows: Page 8 of 17

9 DEFINITIONS 1. Unless otherwise defined herein, all words and phrases in this Agreement shall have the same meaning as in the Delta Industrial & Tourism Revitalization Tax Exemption Program Bylaw No. 7353, 2016 (the Bylaw ). 2. In this Agreement: (a) (b) (c) Building Bylaw means Delta Building/Plumbing Bylaw No. 6060, 2002, as may be amended from time to time; Building Official means the person appointed to that position or a person authorized by the Chief Building Official to perform duties under the Bylaw; Final Approval means the final approval granted by the Building Official in accordance with the Building Bylaw REVITALIZATION TAX EXEMPTION 3. Subject to fulfilment of the conditions set out in this Agreement and in the Bylaw, Delta shall issue a Tax Exemption Certificate entitling the Owner to a Tax Exemption in respect of Municipal Property Tax for the calendar year(s) set out in this Agreement. The Tax Exemption Certificate shall be in the form prescribed by the Bylaw. TERM 4. Provided the requirements of this Agreement and of the Bylaw are met, the Tax Exemption shall be for the taxation years to, inclusive. 5. Throughout the term of this Agreement, the Owner shall operate, repair and maintain the Land and Eligible Project and will keep the Land and Eligible Project in a state of good repair as a prudent owner would. CONDITIONS 6. The following conditions must be fulfilled before Delta will issue a Tax Exemption Certificate to the Owner in respect of the Land: (a) (b) The Owner must provide documentation that the project is an Eligible Project in accordance with the Bylaw, including but not limited to costs associated with the project, future land-use development plans, and, for properties located immediately adjacent to the Burns Bog Ecological Conservancy Area, a report on proposed mitigation measures to minimize impacts on Burns Bog. For an Eligible Project involving a redevelopment of an existing industriallyzoned parcel, the minimum project construction value of $10 million must be certified by a qualified professional. Page 9 of 17

10 (c) (d) (e) For an Eligible Project involving a rezoning of land from I-3 (industrial extraction) to another industrial zone or a comprehensive development zone, the Owner must first submit a rezoning application to Delta. For an Eligible Project involving the consolidation of a minimum of four industrially-zoned lots, the Owner must first submit a lot consolidation plan application to Delta s Approving Officer. For an Eligible Project involving the diversification or expansion of tourism accommodation or facilities in a C-3 zone or comparable zone that permits tourism/accommodation uses, the Owner must first submit a rezoning application or, if rezoning is not required, a building permit application to Delta. 7. A Tax Exemption Certificate is subject to the following conditions: (a) (b) the Owner must complete or cause to be completed construction of the Eligible Project in a good and workmanlike fashion and in strict compliance with the plans and specifications attached to and forming part of this Agreement as Appendix A ; the Owner must provide Delta with a certificate from the Owner s design professional in form and content acceptable to the Delta s Director of Community Planning and Development, certifying the actual cost to complete the Eligible Project; (c) the Eligible Project must receive Final Approval on or before December 31, 20 ; (d) (e) the Owner must not sell, assign, or otherwise transfer all or a portion of its equitable or legal interest in the Land unless the transferee takes an assignment of this Agreement and agrees to be bound by it unless stratified pursuant to section 17; the property taxes in respect of the Land must not go into arrears or become delinquent. 8. The Owner shall construct the Eligible Project and, at all times during the term of the Tax Exemption, use and occupy the Land and the Eligible Project in compliance with all statutes, law, regulations and orders of any authority having jurisdiction, and without limiting the generality of the foregoing, all federal, provincial, or municipal laws, statutes, bylaws licences, permits or approvals, including all the rules, regulations, policies, guidelines, criteria or the like made under or pursuant to any such laws. 9. The Owner must pay to Delta in relation to the Eligible Project the cost of all tie-ins of works and services associated with the alteration to improvements, to existing storm and sanitary sewers, water mains, water meters, driveways and other municipal services. Page 10 of 17

11 10. For greater certainty, under no circumstances will the Owner be entitled under this Agreement or the Bylaw to any cash credits, any carry forward Tax Exemption credit or any return for any taxes paid or Municipal Property Tax paid. TAX EXEMPTION 11. The amount of the Tax Exemption from municipal property value taxes shall be equal to the difference of amount between the current year s annual property tax for the Land and improvements, and the annual property tax payable in 20 (Base Year) for Land and improvements. 12. Subject to early cancellation of the Certificate under section 13, the Tax Exemption will be available for up to five (5) calendar years. CANCELLATION 13. Delta Council may in its sole discretion cancel the Tax Exemption Certificate at any time: (a) (b) (c) on the written request of the Owner; effective immediately if the Eligible Project fails to meet any of the requirements for an Eligible Project as defined in this Bylaw; or effective immediately if at any time any of the conditions in the Tax Exemption Certificate or this Agreement are not met. 14. A Tax Exemption Certificate cancellation does not apply to taxation in a calendar year unless the Tax Exemption Certificate is issued or cancelled, as applicable, on or before October 31 in the preceding year. 15. Despite Section 11, if for any reason whatsoever the Tax Exemption Certificate is cancelled, the Owner of the Land for which the Tax Exemption Certificate was issued will remit to Delta an amount equal to the value of the Tax Exemption received. 16. Despite Section 11, if the Eligible Project does not receive Final Approval on or before December 31, 20, the Owner of the Land will remit to Delta an amount equal to the total value of the Tax Exemption received under the Tax Exemption Certificate. EFFECT OF STRATIFICATION 17. If the Owner stratifies the Land under the Strata Property Act, the Tax Exemption shall be prorated among the strata lots in accordance with the unit entitlement of each strata lot for: (a) the current and each subsequent tax year during the currency of this Agreement if the strata plan is accepted for registration before May 1; or Page 11 of 17

12 (b) for the rest of the calendar year and each subsequent tax year during the currency of this Agreement if the strata plan is accepted for registration on or after May 1. DELTA S RIGHTS AND POWERS 18. Nothing contained or implied in this Agreement prejudices or affects Delta s rights and powers in the exercise of its functions or its rights and powers under any public and private statutes, bylaws, orders, or regulations to the extent the same are applicable to the Land, all of which may be fully and effectively exercised in relation to the Land as if this Agreement had not been executed and delivered by the Owner. GENERAL PROVISIONS 19. It is mutually understood, agreed, and declared by and between the parties that Delta has made no representations, covenants, warranties, guarantees, promises, or Agreements (oral or otherwise), express or implied, with the Owner other than those expressly contained in this Agreement. 20. This Agreement shall enure to the benefit of and is binding on the parties and their respective heirs, executors, administrators, successors and assigns. 21. The Owner shall, on the request of Delta, execute and deliver or cause to be executed and delivered, all such further transfers, Agreements, documents, instruments, easements, statutory rights of way, deeds and assurances, and do and perform or cause to be done and performed, all such acts and things as may be, in the opinion of Delta necessary to give full effect to the intent of this Agreement. 22. Time is of the essence of this Agreement. 23. This Agreement constitutes the entire Agreement between the Owner and Delta with regard to the subject matter hereof and supersedes all prior Agreements, understandings, negotiations, and discussions, whether oral or written of Delta with the Owner. 24. Any notice or other communication required or contemplated to be given or made by any provision of this Agreement shall be given or made in writing and either delivered personally (and if so, shall be deemed to be received when delivered) or mailed by prepaid registered mail in any Canada Post office (and if so, shall be deemed to be delivered on the fifth business day following such mailing except that, in the event of interruption of mail service notice shall be deemed to be delivered only when actually received by the party to whom it is addressed), so long as the notice is addressed as follows: to the Owner at: *[insert name] *[insert address] Page 12 of 17

13 and: to Delta at: THE CORPORATION OF DELTA 4500 Clarence Taylor Crescent Delta, British Columbia V4K 3E2 Attention: Director of Human Resources & Corporate Planning or to such other address to which a party hereto from time to time notifies the other parties in writing. 25. No amendment or waiver of any portion of this Agreement shall be valid unless in writing and executed by the parties to this Agreement. 26. Waiver of any default by a party shall not be deemed to be a waiver of any subsequent default by that party. 27. This Agreement is not intended to create a partnership, joint venture, or agency between the Owner and Delta. 28. This Agreement shall be construed according to the laws of the Province of British Columbia. 29. A reference in this Agreement to Delta or the Owner includes their permitted assigns, heirs, successors, officers, employees, and agents. 30. This Agreement is effective from and after the reference date in this Agreement, but only if this Agreement has been executed and delivered by the Owner and executed by Delta. 31. Unless otherwise expressly provided in this Agreement, whenever Delta is permitted to make or give any decision, direction, determination, or consent, Delta may act in its sole discretion, but will act reasonably. 32. Unless otherwise expressly provided in this Agreement, the expense of performing the obligations and covenants of the Owner contained in this Agreement, and of all matters incidental to this Agreement, is solely that of the Owner. 33. The Owner represents and warrants to Delta that: (a) (b) all necessary corporate actions and proceedings have been taken by the Owner to authorize its entry into and performance of this Agreement; upon execution and delivery on behalf of the Owner, this Agreement constitutes a valid and binding contractual obligation of the Owner; (c) neither the execution and delivery, nor the performance of this Agreement shall breach any other Agreement or obligation, or cause the Owner to be in default of any other Agreement or obligation, respecting the Land; and Page 13 of 17

14 (d) the Owner has the corporate capacity and authority to enter into and perform this Agreement. 34. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the invalid portion shall be severed and the decision that is invalid shall not affect the validity of the remainder of the Agreement. 35. If there is any conflict between the terms and conditions of this Agreement and the provisions of the Bylaw, the Bylaw shall take precedence to the extent of the conflict. 36. Wherever the singular or masculine is used in this Agreement, the same shall be construed as meaning the plural, the feminine or body corporate where the context or the parties thereto require. IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written. Executed by THE CORPORATION OF DELTA by its authorized signatories: Mayor: Lois E. Jackson Municipal Clerk Executed by by its authorized signatories: Name: Name: Appendix A Additional Information Page 14 of 17

15 SCHEDULE C TAX EXEMPTION CERTIFICATE Date of Issuance: Date of Expiry: P.I.D. - - Folio #: Address: (the Parcel ) Amount The amount of the Tax Exemption shall be equal to the difference of amount between: (a) (b) the current year's annual property tax for the Parcel, for land and improvements, and the annual property tax payable in 20 [the Base Year] for the Parcel, for land and improvements. Term This Tax Exemption Certificate shall be in effect for five (5) years from the date of issuance. Conditions This Tax Exemption Certificate is issued on the following conditions: (a) (b) (c) (d) the Owner must not sell, assign, or otherwise transfer all or a portion of its equitable or legal interest in the Parcel unless the transferee takes an assignment of this Agreement and agrees to be bound by it; the property taxes in respect of the Parcel must not go into arrears or become delinquent; the Parcel is not put to any use that is not permitted in the [insert zoning] zone; and all requirements, terms and conditions of the Bylaw, the Agreement and this Tax Exemption Certificate have been met by the Owner. If any of these conditions are not met then Delta Council may cancel this Revitalization Tax Exemption Certificate. Page 15 of 17

16 Cancellation A cancellation of this Tax Exemption Certificate does not apply to taxation in a calendar year unless it is cancelled on or before October 31 in the preceding year. If the terms and conditions of this Tax Exemption Certificate are not met, Delta may cancel the Tax Exemption Certificate and the Owner will remit to Delta an amount equal to the value of the Tax Exemption received after the date of cancellation of this Tax Exemption Certificate. However, if the Eligible Project on the Parcel is cancelled under the terms and conditions of the Agreement, the Owner of the Parcel will remit to Delta an amount equal to the total value of the Tax Exemption received under the Tax Exemption Certificate. Definitions All words and phrases in this Tax Exemption Certificate shall have the same meaning as in the Delta Industrial and Tourism Revitalization Tax Exemption Program Bylaw No. 7353, Issued By: Director of Finance The Corporation of Delta Page 16 of 17

17 Impact Assessment Report SCHEDULE D REQUIREMENTS FOR DEVELOPMENTS ADJACENT TO BURNS BOG ECOLOGICAL CONSERVANCY AREA For developments adjacent or in close proximity to the Burns Bog Ecological Conservancy Area, a report that assesses the potential ecological, hydrological and geotechnical impacts of the proposed development is required. This report must be prepared by qualified professionals, approved by Delta, with specific expertise, experience and knowledge related to Burns Bog. The report must include potential impacts on the development property as well as Burns Bog. Additional requirements: A buffer zone along any property boundaries that borders the Burns Bog Ecological Conservancy Area must be included in the project design. This buffer zone must mitigate the ecological and hydrological effects of the development on Burns Bog. Storm water from the development site must be managed to ensure that it does not enter the Burns Bog Ecological Conservancy Area. Vegetation in the buffer zone and onsite landscaping vegetation must be of appropriate species and must be actively managed to eradicate invasive species. Fencing is required to prevent public access to the Burns Bog Ecological Conservancy Area and, where appropriate, to minimize movement of deer into the industrial area and Highway 17. An assessment of noise and lighting impacts from the development is required, as well as a description of mitigation measures. Environmental Monitoring Plans A Construction Environmental Monitoring Plan and Post-Development Environmental Monitoring Plan, approved by Delta, must be provided, including adaptive management measures that will be implemented if monitoring indicates that additional mitigation is required to prevent negative impacts on the Burns Bog Ecological Conservancy Area. Page 17 of 17