Wilmot looks to spur brownfield redevelopment with new incentive program

By Galen Simmons

Wilmot Township is moving ahead with a proposed Community Improvement Plan (CIP) designed to encourage the cleanup and redevelopment of contaminated commercial and industrial properties by sharing a portion of the future property-tax revenue generated by those projects.

During a public meeting July 27, township staff outlined the proposed Brownfield Remediation Community Improvement Plan, which would establish the entire township as a community improvement project area and introduce a Tax Increment Equivalent Grant (TIEG) program.

Under the proposed program, eligible property owners would receive annual grants equal to a portion of the increase in municipal property taxes generated after a brownfield site is redeveloped. Rather than providing money upfront, the grants would be paid over a period of up to 10 years and could not exceed the eligible cost of environmental remediation.

Senior policy planner Rachel Greene said the goal is to help offset the significant costs associated with cleaning contaminated sites, making redevelopment more financially viable.

"The goal is to encourage investment in underutilized properties and help level the playing field compared to greenfield or non-contaminated sites," Greene told council.

Staff are also exploring a joint program with the Region of Waterloo, which already operates similar programs with Cambridge, Kitchener and Waterloo. Greene said regional participation could significantly increase the incentive because regional taxes account for roughly 60 per cent of a property's tax bill.

Coun. Stewart Cressman asked whether the program could apply to properties that had already been remediated but not yet redeveloped, citing the former creamery site in New Dundee as an example.

Greene said the proposed township program does not include a timeline restricting eligibility.

"I know there are some opportunities that sites may have been remediated already and those potentially would be eligible to apply for this program if they haven't been redeveloped yet," she said.

Coun. Lillianne Dunstall asked whether the program would primarily support infill development.

Greene agreed that would generally be the case but noted the proposed CIP would apply across the entire township, allowing contaminated sites in rural settlement areas to qualify as well.

Coun. Kris Wilkinson said he had been looking for a simple way to explain the program to residents.

"It's not that we're giving up funds. We're not writing a cheque today, but we're promising to share some of the future increase in property taxes from a cleaned-up contaminated site so that it will essentially encourage or incentivize owners or developers to redevelop brownfield properties," Wilkinson said.

Greene agreed, noting the township would not receive those increased tax revenues if the sites remained vacant or underutilized.

"If the property weren't redeveloped, the township wouldn't be seeing those increase in taxes anyways," she said. "Once that time period is over, the township will begin collecting at the new assessment rate."

No members of the public spoke during the public meeting.

Staff will now consider any feedback received before returning to council with a final Community Improvement Plan for approval at a future meeting. The proposed program is intended to support private investment, increase the township's long-term assessment base and encourage redevelopment of contaminated sites that might otherwise remain vacant.