Tiffany's Boutique Mall is one of three properties qualifying for economic incentives from the city this year.

(STEVE ARSTAD / iNFOnews.ca)

PENTICTON - Three development projects in Penticton qualify this year for an economic incentive that city staff says will add an additional $250,000 in tax benefits to city coffers at the conclusion of the agreement.

City planning manager Blake Laven says the Penticton’s economic investment zone agreements have provided $1 million in tax benefits since 2010 when the program began, but at the conclusion of the agreements in five to six years, will add a quarter of a million dollars annually in taxes to the city that otherwise would not have been collected.

Laven says 30 projects have qualified for the incentive in the past five years, including 13 in the industrial park and 14 downtown.

The idea behind the program is to stimulate economic development into areas deemed strategically important to the city’s downtown and waterfront revitalization initiatives.

The program provides a tax break only on improved value of construction and the city continues to receive taxes on land. The project must be completed within the time frame set out by agreement with the city and the project may qualify for a five, seven or 10 year tax exemption, depending on eligibility.

Laven says the incentives have helped to create $36 million in new construction value to the city, while creating 290 jobs, 24 new apartment units in the downtown core and 130 additional seniors residences.

The three projects qualifying for the program this year include Tiffany’s Boutique Mall at 535 Main St., an eight unit residential building at 345 Van Horne St. and another eight unit residential building at 351 Van Horne St.

Council approved a motion to endorse the agreements in a unanimous decision.

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