Transforming Winnipeg`s Downtown using TIF

Transforming Winnipeg’s Downtown using TIF
Strategy, Implementation and Outcomes
Rayanne Legros, Manitoba Municipal Government
Braden Smith, City of Winnipeg
Tom Janzen, TVJ Projects
Overview
• Winnipeg’s Downtown
• What is “Tax Increment Financing (TIF)”?

Municipal vs Provincial TIF

The Mechanics

Manitoba TIF supporting downtown
redevelopment
Winnipeg’s Downtown
 Winnipeg’s downtown has suffered through
decades of slow physical and population
growth.
 Winnipeg’s downtown geography is
significantly larger than any other for its
population size.
 Regulatory environment was such that
suburban development flourished while
downtown deteriorated.
Why Incent Downtown
Redevelopment?

Direct development to serviced areas leveraging existing infrastructure and
mitigating increases to ongoing servicing (soft & hard)

Environmental and health benefits in multi modal transportation
connectivity

Proximity to amenities, services, work- “live, work, play”

Leveraging architectural assets by preserving heritage districts

24/7 presence-increased safety and vibrancy

Creating a range of housing choices
4
What is “TIF”?
 A financing tool that allows for future increased
property taxes to be used to encourage
improvements and development today.
 Two types taxes means two types of TIF:
Municipal
&
Provincial
Property Taxation in Manitoba
 Municipalities levy municipal and school taxes on
the property tax bill which includes:
 A municipal levy for city services and
infrastructure
 School Division /Special levy portion for K-12
 Education Special levy for post-secondary
 Different property classes pay different levies
(residential-municipal and SD; commercial all 3)
Municipal TIF
 The Municipal Act and the City of Winnipeg
Charter gives broad enabling authority
 Incremental taxes placed in a reserve fund
City Policy Direction on Municipal TIF
 Support the vision of City Council
 Vibrant and attractive neighbourhood
 Revitalization
 Diversity of population in an area
 Complete Community
 Financial responsibility – Leverage existing
City investments (infrastructure). Use of Tax
Increment $ that would not normally be
available.
Current Reality for Our City
 A focus on:
 Revitalization of our Downtown
 Rethinking the way we live, work, play
and get around
 Planning for growth and sustainability
10
11
12
Partnerships
 Key element to success!
Provincial TIF
 In 2009, The Community Revitalization Tax
Increment Financing Act became a law of the
Province of Manitoba
 The Act gives the Province authority to levy a
new tax called the CRL in lieu of applicable
school-related tax revenues on designated
properties and place them into a Community
Revitalization (CR) Fund.
CR Fund
Grants from the CR Fund can be used to:
 Revitalize communities or neighbourhoods
 Encourage economic development
 Enhance social and cultural development
 Preserve heritage properties
Provincial TIF
Province can only designate a property where:
 significant improvement are to occur; and
 it is in the public interest that the improvements
be made
the project proposed to receive a TIF grant would not
proceed without public investment (“But for” clause )
Provincial TIF
Can only be used if:
 If the municipality agrees to the purpose of the
grant;
 The local school division has been consulted;
 The TIF grant is reinvested in the same
municipality, community or neighbourhood as
TIF’ed property; and
 The TIF’ed property will be taxable upon
redevelopment.
the
Who can receive a Provincial TIF grant?
• The person in whose name the community revitalization
property is assessed;
• An occupier of the community revitalization property;
• The municipality in which the community revitalization
property is situated; or
• A person or organization carrying on activities or
projects that are consistent with the purposes of the
fund and that are in the same community or
neighbourhood as the community revitalization
property.
How TIF works
$12,000/year over 15 years
Before
How TIF works
$92,000/y
ear
$12,000/year over 15 years
After
How are we using TIF?
Downtown Winnipeg Housing Development
Programs
DRDG Program Goals
 Increase the population of the Downtown
 Create dense residential clusters
 Develop a Downtown that reflects the
income diversity of the city
 Support existing Downtown neighbourhoods
How are we using TIF?
Public space Enhancement
What is CentreVenture?
Mandate
District Strategies • Portage
Avenue Dev. Strategy / SHED / ExchangeWaterfront Dev. Plan / South Main
Community Building
• Social Enterprise / Community Investment / Public
Engagement
Program Administration
• Downtown Residential
Development Grant Program / SHED / Live Downtown /
Exchange-Waterfront Neighbourhood Dev. Plan
Project Financing
• Market gap financing
Land Assembly / Generating Value in Land
• Marketing and executing the sale and development of surplus city lands and strategic properties
Facilitation and Coordination
• Identifying opportunities, initiating partnerships and providing assistance to development interests
1999
2015
Portage Avenue Development Strategy
The SHED
Primary Objectives:
• Activate the District
• Create connections
• Protect investment
• Promote innovation
• Establish District-specific
management approach
• Improve safety
TIF Investments
Eligible Projects:
• Streetscaping and public
realm enhancements
• Portage Avenue Lighting
Plan
• District Management
• Marking and Promotions
• Storefront Enhancements
• Skywalk Enhancements
• Land Assembly
• Administration
TIF Phasing
1
Phase 1
CentrePoint
$8.3m over two years
Phase 2
True North Square
$16.6m over two years+
2
Phase 1 - Centrepoint
Phase 1 - Centrepoint
Phase 2 – True North Square
Phase 2 – True North Square
Lessons Learned
• Effective in generating development interest and
investment
• Need for flexible timelines
• Lender risk
• Managing developer expectations
• Ensuring sufficient contingencies are in place
• Skepticism of approach
• Competing priorities
The Future of TIF in Downtown
The Future of TIF