Developer offered tax breaks if construction ‘activity’ on Oshawa rental project begins this fall

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Published June 28, 2024 at 12:43 pm

NEO
The NEO project on the east side of Oshawa's downtown

Atria Developments, which has several prominent projects on the go around Oshawa, wants the City to provide a range of incentives – and help convince the Region of Durham to do the same – to get a 213-unit rental building on Bond Street East off the ground.

Oshawa has agreed to give the development the financial relief, but only on the condition Atria acquires the permit to pour the foundation by October and there is some sort of construction “activity” within three months.

The original staff requirements that the foundation for the project – dubbed NEO – be complete by March 31 of next year and the building ready for occupancy by October 31, 2026 still stand.

“If we’re going to be providing this level of political currency and incentives we need the project to actually come out of the ground, activate, and provide the housing we need,” said Tito-Dante Marimpietri, who chairs the City’s Economic and Development Services Committee.

Oshawa has agreed to waive the payment of all City development charges and parkland dedication fees and provide an increased assessment grant (50 per cent of the applicable taxes) for 16 years to help cover the $24.8 million cost of a planned 3-level parking lot.

The City will also retroactively apply a Brownfields Renaissance funding program to provide both a property tax grant and a Brownfields Study Grant.

(The Brownfield Renaissance program was created to aid in cleaning up and developing often contaminated brownfield sites by offering financial perks through a variety of incentives.)

The 2024 assessment of the undeveloped site is just under $2 million, equating to taxes of approximately $22,431 per year. Atria estimates the post-development assessed value of the 12-storey development (which will include 2,200 sq. ft of retail on the ground floor) will be $90.47 million, which would provide the City more than $643,00 per year in property taxes.

The City has also agreed to draft a letter of support to Durham Region for a waiver of Regional development charges, though Oshawa staff noted the Region is generally “consistent” in applying development charges when building permits are issued.

“This puts a little crunch on the developer,” said Oshawa Councillor and Deputy Mayor Bob Chapman. “We’re prepared to do all this stuff they need to start building (but) this gives them a little push to get this going.”

The official address of the future project is 200 Bond St. E, with the project – located at the eastern edge of downtown – comprising current buildings at 35, 40 and 45 Division Street, 46 Kenneth Avenue and 196, 200 and 204 Bond St. E.

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