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HomeMy Public PortalAboutRevitalization Tax Exemption Consolidated Bylaw 1328TOWN OF OLIVER BYLAW 1328 A bylaw to establish a Revitalization Tax Exemption Program to provide relief from certain municipal property taxes for eligible development projects. Whereas: A. Council wishes to encourage revitalization by providing certain tax exemptions for qualifying developments in designated areas of Oliver; B. Council may provide revitalization tax exemptions pursuant to section 226 of the Community Charter; C. Council has given notice of its intention to adopt this Bylaw in accordance with section 227 of the Community Charter; D. Council has considered this Bylaw in conjunction with the objectives and policies set out under section 165 (3.1) (c) of the Community Charter in its financial plan; Now therefore, the Council of the Town of Oliver, in open meeting assembled, enacts as follows: Citation 1. This bylaw may be cited for all purposes as “Revitalization Tax Exemption Bylaw 1328”. Definitions 2. In this Bylaw: “Apartment Building” means a non-strata building under single ownership used or to be used for monthly rental of individual dwelling units. “Application Form” is the form referred to in section 14(2) of this bylaw. “Assessed Value” means the assessed value of land and improvements of the property, as determined by the BC Assessment Authority, for the purpose of calculating property taxes. “Baseline Assessment” means the BC Assessment Authority’s last published land and improvements assessed value immediately before the commencement of the Eligible Development. “Building Inspector” means the person designated to issue building permits and to perform building inspections pursuant to the Town’s Building Bylaw and the British Columbia Building Code. Amended by Bylaw 1328.01 Sept. 22, 2014 Revitalization Tax Exemption Bylaw 1328 Page 2 of 27 “Construction Value” means the estimated value of construction, acceptable to the Building Inspector and using the methodology for determining the value of construction on a building permit, and, if required by the Building Inspector, must be determined by an estimate prepared by the Owner’s architect or engineer. To the extent necessary, the Building Inspector may divide the Construction Value into separate components representing new construction, renovations and additions, as well as industrial, commercial and residential building components. “Co-op” means a development that is set up and operated as a housing cooperative under the Cooperative Association Act of British Columbia. “Council” means the elected council of the Town of Oliver. “Designated Officer” means the person authorized by Council under section 3 of this Bylaw to administer this Bylaw. “Eligible Hotel Development” means a building or group of buildings containing not less than 50 sleeping units which are available to the general public for short term daily occupancy for not less than 182 days each year. An Eligible Hotel Development may include attached or ancillary conference and recreation facilities, restaurants, service businesses and retail outlets. If sleeping units are stratified, the strata lots must be subject to a Land Title Act, section 219 covenant requiring them to be used for tourist occupancy not less than 182 days each calendar year. “Eligible Housing Development” means an Apartment Building, a Co-op, or a building containing Restricted Strata Units. “Eligible Improvement” means a building or part of a building for which a tax exemption under this Bylaw is granted. “Exemption Agreement” means a revitalization tax exemption agreement referred to in section 15 of this bylaw. “Exemption Certificate” means a tax exemption certificate referred to in section 17 of this bylaw. “Final Inspection” means a written notice issued by the Building Inspector certifying that all work related to a building permit has been completed. “Occupancy Permit” means written authorization from the Building Inspector to occupy a building for its intended use. “Oliver Airport” means the property operated as an airport by the Town, comprised of the following parcel of land: Parcel Identifier: 007-629-583; Lot 2, DL 2450s, SDYD, Plan 38137, Except Plan 40263 and Plan KAP70549. Revitalization Tax Exemption Bylaw 1328 Page 3 of 27 “Owner” means the registered owner of a property or group of properties for which a tax exemption under this Bylaw has been applied for or granted and includes a tenant leasing land from the Town on the Oliver Airport. “Program” means the revitalization tax exemption program established under this Bylaw. “Property” means a parcel or group of parcels within a Revitalization Zone that is eligible for a tax exemption under this Bylaw. “Restricted Strata Unit” means a Strata Unit within a multi-unit residential building that is subdivided under the Strata Property Act, and that is subject to a no separate sale covenant under section 219 of the Land Title Act, and that is subject to a housing agreement under section 905 of the Local Government Act, restricting the use of the dwelling unit to rental only for a period of at least 10 years following receipt of an Occupancy Permit. “Revitalization Zone” means a geographical area of the Town that has been established to provide tax exemptions for qualifying developments within that zone. “Strata Unit” means a strata lot within a multi-unit residential building that is subdivided under the Strata Property Act. “Town” means the Town of Oliver as a municipal corporation or the physical boundaries of the Town of Oliver, as the context requires. “Work” means site servicing, building construction, and landscaping related to a development for which a tax exemption is issued under this Bylaw. Designated Officer 3. The person appointed as the Chief Financial Officer of the Town is appointed as the Designated Officer to administer this Bylaw. In addition, a person appointed as Deputy Chief Financial Officer may also act as the Designated Officer in place of the Chief Financial Officer. Delegation to Designated Officer 4. For each Exemption Agreement that is entered into pursuant to this Bylaw, Council hereby delegates to the Designated Officer the authority to solely sign and issue the applicable Exemption Certificate. Establishment of Revitalization Zones 5. This Bylaw creates the Revitalization Zones listed below: (1) Downtown Commercial Revitalization Zone, as described in Schedule C; (2) Core Area Residential Revitalization Zone, as described in Schedule D; (3) Industrial Revitalization Zone, as described in Schedule E; and Revitalization Tax Exemption Bylaw 1328 Page 4 of 27 (4) Airport Revitalization Zone, as described in Schedule F. (5) Hotel Development Revitalization Zone, as described in Schedule G. Revitalization Tax Exemption Program – Reasons and Objectives 6. The Revitalization Tax Exemption Program is hereby established. The reasons for and objectives of the Program are to foster economic growth, community revitalization, and housing availability by encouraging the construction and renovation of buildings within the Revitalization Zones established in this Bylaw. More specific objectives of each Revitalization Zone are stated in the attached Schedules. 7. The Program is intended to accomplish its objectives by providing property tax relief for qualifying developments in Revitalization Zones. Qualification Deadline 8. This Bylaw commences on the date of its adoption, and developments that are under construction as of that date or for which a building permit has been issued on or prior to that date are not eligible for a tax exemption under this Bylaw. 9. In order to be eligible for an Exemption Certificate under this Bylaw, an Owner of a Property must submit a completed Application Form for a tax exemption on or before May 31, 2023 and enter into a Tax Exemption Agreement with the Town on or before June 29, 2023. Scope of Tax Exemption 10. The tax exemption available under this Bylaw is limited to the property value taxes imposed for general municipal purposes excepting property value taxes for policing services by the Town under section 197(1)(a) if the Community Charter. This Bylaw shall not include an exemption from any local area service taxes or business improvement area taxes payable in the designated areas in which the Property is located 11. This Bylaw is intended to provide tax relief only and nothing in this Bylaw shall be interpreted such that an Owner is entitled to a tax refund or any other payment from the Town. 12. If the Eligible Improvement is destroyed or demolished or otherwise removed, the tax exemption for improvements, and the tax exemption for land (if applicable) under this Bylaw, shall cease until another Eligible Improvement has been reconstructed on the Property within the term of the tax exemption. Strata Subdivision 13. Where an Eligible Improvement is a Strata Unit or is subdivided into a Strata Unit under the Strata Property Act: (1) the tax exemption for improvements under this Bylaw for each Strata Unit will be granted such that the tax on improvements for that Strata Unit will be imposed on the assessed Amended by Bylaw 1328.02 January 8, 2018 Amended by Bylaw 1328.03 July 23, 2019 Amended by Bylaw 1328.02 January 8, 2018 Revitalization Tax Exemption Bylaw 1328 Page 5 of 27 value of the improvements minus the total Construction Value apportioned in accordance with the unit entitlement of the Strata Unit, and (2) the tax exemption for land under this Bylaw (if applicable) for each Strata Unit will be granted such that the tax on land for that Strata Unit will be imposed on the Assessed Value of the land minus 35% of the Baseline Assessment of the lands. Tax Exemption Criteria 14. In order to qualify for a tax exemption, the following criteria must be met in relation to a Property: (1) Compliance with Bylaw – There must be strict compliance with the criteria established by this Bylaw, including its Schedules. (2) Application – A completed Application Form for tax exemption under this Bylaw must be submitted by the Owner in writing to the Town on the form established by the Designated Officer from time to time, but completion of the form does not relieve the Owner from providing all additional information required by the Designated Officer. (3) Exemption Agreement – Upon submission of a satisfactory application, an Exemption Agreement must be approved by Council and executed by the Owner and the Town, and the Owner must not be in breach of the Agreement during the term of the Agreement. (4) Exemption Certificate – Once all the requirements of the Exemption Agreement are complied with, an Exemption Certificate shall be issued and there must be compliance by the Owner with the conditions of the Exemption Certificate. (5) No Government Orders – The construction on the Property must not be a response to an order of the Town or of another public authority. (6) Payment of Taxes – All property taxes, rates, fees, and other charges levied by the Town, including penalties and interest, on the Property and on other land owned by the Owner within the Town must have been paid at the time of application for the Tax Exemption and be kept current during the terms of the Exemption Agreement and the Exemption Certificate. (7) Compliance with Laws –The Owner must, at the time of the application for the tax exemption, be using and occupying the Property in compliance with and at all times during the term of the tax exemption must use and occupy the Property in compliance with all enactments, 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, and approvals, including all the rules, regulations, policies, guidelines, criteria or the like made under any such laws. Form of Exemption Agreement 15. The substantive terms of the Exemption Agreement to be entered into under this Bylaw are contained within the agreement attached as Schedule A, subject to such additional site- Amended by Bylaw 1328.01 Sept. 22, 2014 Revitalization Tax Exemption Bylaw 1328 Page 6 of 27 specific conditions as are considered necessary by the Designated Officer or by Council in respect of any particular Property. Timing of Agreement 16. When an Owner has completed the Application Form and provided all other information required by the Designated Officer, all to the satisfaction of the Designated Officer, the Designated Officer will request that Council consider entering into an Agreement with the Owner. Exemption Certificate 17. Once the conditions established under the Exemption Agreement have been met, an Owner of Property shall be entitled to an Exemption Certificate issued by the Designated Officer with the substantive terms of the certificate attached as Schedule B, plus any other site- specific conditions contained in the Exemption Agreement for that Property. Date of Effectiveness of Certificate 18. Where the Exemption Certificate is issued on or before October 31 of a given year, the first year of the tax exemption is the taxation year subsequent to the year in which the Exemption Certificate is issued. Where the Exemption Certificate is issued after October 31 of a given year, the first year of the tax exemption is the second year following the year in which the Exemption Certificate is issued. Cancellation of Exemption Certificate 19. An Exemption Certificate will be cancelled by Council: (1) on the request of the Owner; or (2) if any of the conditions in the Exemption Certificate are not met. Recapture of Taxes 20. If Property that has benefitted from a tax exemption under the Program established by this Bylaw ceases to meet all the conditions of the Exemption Certificate, then the Exemption Certificate shall be cancelled as per subsection 19(2) of this bylaw and all tax exempted commencing in the calendar year in which the conditions under the Exemption Certificate were not met shall be calculated by the Designated Officer and shall become a debt immediately payable by the Owner at that time to the Town and must be repaid by the Owner at that time. Interest shall be calculated on the outstanding amount, from the date the conditions of the Exemption Certificate were not met, at the rate set by the Province for arrears of taxes, compounded monthly and shall continue to accrue until the debt is paid in full. No Multiple Exemptions 21. Notwithstanding any other provision of this Bylaw, a Property which is receiving a tax exemption pursuant to any other bylaw may not apply for or qualify for a tax exemption under this Bylaw. Revitalization Tax Exemption Bylaw 1328 Page 7 of 27 Schedules 22. This Bylaw includes and incorporates the following seven schedules: Schedule A – Form of Exemption Agreement Schedule B – Form of Exemption Certificate Schedule C – Downtown Commercial Revitalization Zone Schedule D – Core Area Residential Revitalization Zone Schedule E – Industrial Revitalization Zone Schedule F – Airport Revitalization Zone Schedule G – Hotel Revitalization Zone” Read a First time on January 14, 2013. Read a Second time on March 25, 2013. Read a Third time on April 8, 2013. Notice pursuant to section 227(3) of the Community Charter was published on April 3, 2013 and on April 10, 2013. Adopted on April 22, 2013. Original signed by Mayor Original signed by Corporate Officer ___________________________ ________________________ Mayor Corporate Officer Amended by Bylaw 1328.02 January 8, 2018 Revitalization Tax Exemption Bylaw 1328 – Schedule A Page 8 of 27 Schedule A – Form of Exemption Agreement THIS AGREEMENT dated for reference the ___ day of ___________, 20___ BETWEEN: [Insert Owner Name and Address] (the "Owner") AND: Town of Oliver 6150 Main Street PO Box 638 Oliver, BC V0H 1T0 (the “Town”) WHEREAS: A. The Town has, by the Bylaw (defined later in this Agreement), established a Revitalization Tax Exemption Program for the purpose of encouraging revitalization of certain areas of the municipality; B. The Owner is the registered owner, or the registered leaseholder of the Land, as defined in this Agreement; C. The Land is located in an area designated within the Bylaw as a revitalization area; D. The Owner has applied for a Tax Exemption under the Bylaw and a copy of the Application Form is attached to this Agreement, and the Owner has provided to the Town’s Chief Financial Officer all additional information required for the purposes of this Agreement, which additional information is also attached; E. This Agreement contains the terms and conditions respecting the issuance, by the Town, of an Exemption Certificate granting a partial municipal property tax exemption on the Land; and F. The Owner and the Town wish to enter into this Agreement. THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained in this Agreement (the receipt and sufficiency of which consideration the Town and the Owner hereby expressly acknowledge), the Town and Owner covenant and agree with each other as follows: Definitions 1. In this Agreement the following words have the following meanings: "Agreement" means this Agreement. Revitalization Tax Exemption Bylaw 1328 – Schedule A Page 9 of 27 "Bylaw" means "Revitalization Tax Exemption Bylaw 1328". "Land" means [Insert complete legal description of the lands, including parcel identifier number]. Bylaw Definitions 2. Any terms not defined in this Agreement but defined in the Bylaw have the meanings given in the Bylaw. Term 3. This Agreement shall commence on the date of its full execution and shall terminate: (1) if a Final Inspection and an Occupancy Permit [if applicable] for the Eligible Improvement are not obtained on or before [insert deadline date for completion] ; or (2) upon issuance of an Exemption Certificate if an Exemption Certificate is issued . Revitalization Zone 4. The Owner has applied to the Town for a Tax Exemption in the following revitalization zone [check one]:  Downtown Commercial  Core Area Residential  Hotel Development  Industrial  Airport Tax Exemption Certificate 5. If the Owner meets all of the following conditions, the Town will issue an Exemption Certificate, in form generally attached as Schedule B to the Bylaw, for the applicable Tax Exemption, as authorized by the Bylaw, in respect of the Land: (1) Construction or Alteration – The Owner must have constructed to a state of completion as evidenced by a Final Inspection and also by an Occupancy Permit, if applicable, issued by the Building Inspector, the following Eligible Improvement on the Land: [Insert project description here] (2) Completion of Work – All Work must be completed in accordance with the BC Building Code and applicable bylaws and servicing agreements with the Town, as well as any building permit or permit issued by the Town under Part 26 of the Local Government Act, including completion of all on-site and off-site landscaping or servicing Work that is required by any such bylaw, permit or servicing agreement. (3) Schedules – The Property must be developed in accordance with all applicable criteria set out in the Bylaw, including the Schedules to the Bylaw. (4) Utility Connections – The Owner must have paid to the Town the costs of all tie-ins of works and services associated with the Eligible Improvement to existing storm and sanitary sewers, water mains, water meters, driveways, and other municipal services. Amended by Bylaw 1328.02 January 8, 2018 Revitalization Tax Exemption Bylaw 1328 – Schedule A Page 10 of 27 (5) No Government Orders – The construction of the Eligible Improvement must not have been a response to an order of the Town or an order of another public authority. (6) No Change in Zoning – The Owner must not have applied to the Town during the term of this Agreement to change the zoning of the Land to some use other than the proposed use stated in the application. (7) Payment of Taxes – All property taxes, rates, fees, and other charges levied by the Town, including penalties and interest, on the Property and on other land owned by the Owner within Town must be paid. (8) Subdivision – The Owner must not have, during the term of this Agreement, subdivided the Land or any building on the Land, whether by conventional subdivision or in any other way, except for a strata subdivision creating a Strata Unit or a Restricted Strata Unit or stratifying a commercial, industrial or mixed-use building. (9) Compliance with Laws and Covenants – The Owner must have, during the term of this Agreement, used and occupied the Land in compliance with all enactments, 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 any such laws and shall have complied with all land use covenants and land use agreements and charges registered against upon title of the Land. (10) Change of Ownership – The Owner must not have sold, assigned or otherwise transferred all or a portion of his or her equitable or legal interest in the Land during the term of this Agreement unless the transferee took an assignment of this Agreement, in a form satisfactory to the Town, and agreed to be bound by it. (11) Additional Site-Specific Terms – [List additional terms here] Entire Agreement 6. This Agreement constitutes the entire agreement between the Owner and the Town with regard to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written of the Town with the Owner. Further Assurances 7. The Owner shall, on the request of the Town, execute and deliver or cause to be executed and delivered, all such further transfers, agreements, documents, instruments, easements, 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 the Town, necessary to give full effect to the intent of this Agreement. No Town Representations 8. It is mutually understood, agreed and declared by and between the parties that the Town has made no representations, covenants, warranties, guarantees, promises, or agreements Revitalization Tax Exemption Bylaw 1328 – Schedule A Page 11 of 27 (oral or otherwise), expressed or implied, with the Owner other than those expressly contained in this Agreement. Notices 9. All notices to be given under this Agreement must be in writing and may be delivered by hand or mailed by first-class prepaid registered mail to the address for the party at the top of this Agreement. Any notice delivered by hand is deemed to be given and received on the day it is sent. Any notice mailed is deemed to be given and received on the fourth day after it is posted (unless there is a mail strike, slow down or other labour dispute which might affect delivery, in which case the notice will be effective only if actually delivered). Notices must be addressed to the addresses on page 1 or to such other address as may from time to time be advised by a party in writing. Notices to the Town must be addressed to the attention of the "Corporate Officer". Powers Preserved 10. Nothing contained in or implied by this Agreement prejudices or affects the rights and powers of the Town in the exercise of its functions under any enactment or at common law, all of which may be fully and effectively exercised in relation to the Improvement and the Land. Relationship 11. Nothing in this Agreement is to be interpreted as creating an agency, partnership or joint venture between the Town and the Owner. Time 12. Time is of the essence in this Agreement. Remedies not Exclusive 13. No reference to or exercise of any specific right or remedy by the Town prejudices or precludes the Town from any other remedy, whether allowed at law or in equity or expressly provided for herein. Headings 14. The headings appearing in this Agreement have been inserted for reference and as a matter of convenience and in no way define, limit or enlarge the scope or meaning of this Agreement or any provision of it. Waiver 15. An alleged waiver of any breach of this Agreement is effective only if it is an express waiver in writing of the breach in respect of which the waiver is asserted. A waiver of a breach of this Agreement does not operate as a waiver of any other breach of this Agreement. Revitalization Tax Exemption Bylaw 1328 – Schedule A Page 12 of 27 Interpretation 16. Wherever the singular or masculine or neuter is used in this Agreement, the same will be construed as meaning the plural, the feminine or body corporate where the context or the parties so require. Severance 17. If any section, subsection, clause or phrase of this Agreement is held to be invalid for any reason by a court of competent jurisdiction, the invalid portion shall be severed and the decision that it is invalid shall not affect the validity of the remainder of the Agreement. Enurement 18. This Agreement enures to the benefit of and is binding upon the parties and their respective successors and in the case of the Owner, its permitted assigns. Statutory References 19. A reference in this Agreement to a statute includes regulations made pursuant to it and includes all amendments and replacements to them from time to time. Modifications 20. No amendment or modification of any of the terms or provisions of this Agreement will be of any force or effect unless the amendment or modification is in writing and duly executed by the Town and the Owner. Governing Law 21. This Agreement will be governed by and interpreted in accordance with the laws of British Columbia. Joint and Several Liability 22. In circumstances where two or more persons comprise the Owner, those persons shall be jointly and severally liable for performance of the obligations of the Owner under this Agreement. Expense of Owner 23. The expense of performing the obligations and covenants of the Owner contained in this Agreement, and of all matters incidental to them, is solely that of the Owner. Owner's Representations and Warranties 24. The Owner represents and warrants to the Town that: (1) If the Owner is a corporation, all necessary corporate actions and proceedings have been taken by the Owner to authorize its entry into and performance of this Agreement; Revitalization Tax Exemption Bylaw 1328 – Schedule A Page 13 of 27 (2) If the Owner is a corporation, the Owner has the corporate capacity and authority to enter into and perform this Agreement. (3) Upon execution and delivery on behalf of the Owner, this Agreement constitutes a valid and binding contractual obligation of the Owner; (4) 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 to the Land; and As evidence of their agreement to be bound by the terms of this Agreement, the parties have executed this Agreement on the dates written below. DATED the __ day of ________, 20 __ ) ) Executed by the Town of Oliver ) by its authorized signatories: ) ) seal ) _____________________________ ) ) ) _____________________________ ) ) DATED the ___ day of ________, 20__ ) ) (insert corporate name) ) by its authorized signatory(ies): ) seal ) ) ) ) Revitalization Tax Exemption Bylaw 1328 – Schedule B Page 14 of 27 Schedule B: Form of Exemption Certificate This Tax Exemption Certificate is issued in accordance with: A. Revitalization Tax Exemption Bylaw 1328 (the "Bylaw"); B. The Revitalization Tax Exemption Program (the "Program") established by the Bylaw; and C. The Revitalization Tax Exemption Agreement dated for reference the ___ day of _________________, 20____ (the "Agreement") entered into between the Town of Oliver (the “Town”) and the: [select one]:  registered owner(s)  registered leaseholder(s) (the “Owner”) of those land(s) and improvements within the Town, legally described as: Parcel Identifier: _____________________ Legal Description: ________________________________________________________ ________________________________________________________________________ Property Tax Roll Number(s): _______________________________________________ Civic Address: ____________________________________________________________ (the “Land”) Whereas the Owner has constructed on the Land certain improvements described below, which qualify for a tax exemption under the Bylaw and under Section 226 of the Community Charter: [Identification of Eligible Improvements] ____________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Now therefore, this Certificate certifies that the Land is subject to a revitalization tax exemption as follows: [Years and values are illustrative only and are to be amended or deleted as applicable.] The total term of Tax Exemption is ___ years, commencing in ______ and ending in _______. Table 1: Improvement Value Assessment Exemption Year Amount of Exemption 1 – 5 (2014-2018) Lesser of $1,000,000 or assessed improvement value 6 (2019) Lesser of $800,000 or assessed improvement value 7 (2020) Lesser of $600,000 or assessed improvement value 8 (2021) Lesser of $400,000 or assessed improvement value 9 (2022) Lesser of $200,000 or assessed improvement value 10 (2023) Lesser of $100,000 or assessed improvement value Revitalization Tax Exemption Bylaw 1328 – Schedule B Page 15 of 27 Table 2: Land Value Assessment Exemption Year Amount of Exemption 1 – 5 (2014-2018) 35% of assessed value of land only 6 (2019) 30% of assessed value of land only 7 (2020) 25% of assessed value of land only 8 (2021) 20% of assessed value of land only 9 (2022) 15% of assessed value of land only 10 (2023) 10% of assessed value of land only Conditions of Tax Exemption 1. This Certificate is issued on the following conditions: (1) Compliance with Bylaw – The Land must strictly meet and continue at all times to meet the criteria within Revitalization Tax Exemption Bylaw 1328 (the “Bylaw”), including its Schedules. (2) No Change in Zoning – The Owner must not apply to the Town during the term of the tax exemption to change the zoning of the Land to a category of use (residential / commercial / industrial) other than the category of use for which the tax exemption was granted. (3) Ongoing Occupancy / Business Operations - The Eligible Improvement must be continuously used for and only for a residential use or a commercial or an industrial business operation, whichever is applicable, during the term of the tax exemption. (4) Subdivision – The Owner must not have subdivided the Land or any building on the Land, whether by conventional subdivision or in any other way, except for a strata subdivision creating a Strata Unit or a Restricted Strata Unit or stratifying a commercial, industrial or mixed-use building. (5) Demolition / Destruction – If the Eligible Improvement is destroyed or demolished or otherwise removed, the tax exemption for improvements under the Bylaw, and the tax exemption for land (if applicable), shall cease until another Eligible Improvement has been reconstructed on the Land within the term of the tax exemption; however, the term of this Certificate will not be extended. (6) Compliance with Laws and Covenants – The Owner must during the term of the tax exemption use and occupy the Land in compliance with all enactments, 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 any such laws and shall remain in compliance with all land use covenants and land use agreements and charges registered against upon title of the Land. (7) Business License – Where applicable, the Owner must at all times possess a valid business licence issued by the Town in respect of the business carried on at the Land. Revitalization Tax Exemption Bylaw 1328 – Schedule B Page 16 of 27 (8) Payment of Taxes - All property taxes, rates, fees, and other charges levied by the Town, including penalties and interest, on the Land (minus taxes exempted under the Bylaw) and on other land owned by the Owner within the Town must be paid during the term of the tax exemption. For clarity, If taxes payable on the Land or on other land owned by the Owner within the Town become in arrears, this Certificate shall be cancelled. Strata Subdivision 2. Where the Eligible Improvement is a strata lot or is subdivided into a strata lot under the Strata Property Act: (1) the tax exemption for improvements under the Bylaw for each strata lot will be granted such that the tax on improvements for that strata lot will be imposed on the assessed value of the improvements minus the improvement value exemption shown in Table 1 apportioned in accordance with the unit entitlement of the strata lot, and (2) [if applicable] the tax exemption for land under the Bylaw for each strata lot will be granted such that the tax on land for that strata lot will be imposed on the assessed value of the land minus the land value exemption shown in Table 2. Cancellation of Certificate 3. This Certificate may be cancelled by the Council of Oliver: (1) on the request of the Owner; or (2) if any of the conditions in this Certificate are not met. Partial Recapture of Exempted Taxes 4. If the Land ceases to meet all the conditions of this Certificate, then this Certificate shall be cancelled and all tax exempted commencing in the calendar year in which the conditions under this Certificate were not met shall be calculated by the Designated Officer and shall become a debt immediately payable by the Owner at that time to the Town and must be repaid by the Owner at that time. Interest shall be calculated on the outstanding amount, from the date the conditions of this Certificate were not met, at the rate set by the Province for arrears of taxes, compounded monthly and shall continue to accrue until the debt is paid in full. No Refund 5. For clarity, under no circumstances will the Owner be entitled under the Program to any cash credit, carry forward tax exemption credit or any refund for any property taxes paid. DATED the ___ day of _________ , 20 ___ Town of Oliver by its authorized signatory: __________________________________ Chief Financial Officer Revitalization Tax Exemption Bylaw 1328 – Schedule C Page 17 of 27 Schedule C: Downtown Commercial Revitalization Zone 1. The Downtown Commercial Revitalization Zone is comprised of the shaded area, outlined in dashed lines, illustrated below: Revitalization Tax Exemption Bylaw 1328 – Schedule C Page 18 of 27 2. The specific objectives of the Downtown Commercial Revitalization Zone are: (1) To encourage commercial development of existing vacant properties in the historic downtown core area of Oliver; (2) To encourage introduction of new commercial activities and new commercial buildings and to sustain existing commercial activities by encouraging revitalization of existing buildings in the downtown core area; (3) To enhance the livability and vibrancy of the downtown area by encouraging construction of new residential dwelling units above commercial developments in the downtown core area; (4) To enhance the aesthetic appearance of the downtown core area by encouraging renovation to the facades and other exterior components of buildings in the area. 3. The following tax exemptions apply in the Downtown Commercial Revitalization Zone: (1) New Construction and Expansion – For new commercial construction on vacant lots and for expansion of existing commercial buildings, including construction of residential dwelling units above the ground floor of a commercial building, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. (2) Interior Renovations and Façade Improvements – For interior renovations or facade improvements in excess of $100,000 Construction Value, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. 4. The above tax exemptions shall be provided for the following terms: (1) For all qualifying construction under section 3(1) of this Schedule, the full tax exemption shall be granted for 5 years, then reduced such that references to Assessed Value are reduced to the following amounts: (a) Year 6 – 80% of Assessed Value (b) Year 7 – 60% of Assessed Value (c) Year 8 – 40% of Assessed Value (d) Year 9 – 20% of Assessed Value (e) Year 10 – 10% of Assessed Value. (2) For qualifying construction under subsection 3(2) of this schedule the tax exemption shall be granted for 5 years only. Amended by Bylaw 1328.02 January 8, 2018 Amended by Bylaw 1328.01 Sept. 22, 2014 Revitalization Tax Exemption Bylaw 1328 – Schedule E Page 19 of 27 Schedule D: Core Area Residential Revitalization Zone 1. The Core Area Residential Revitalization Zone is comprised of the shaded area, outlined in dashed lines, illustrated below: Revitalization Tax Exemption Bylaw 1328 – Schedule E Page 20 of 27 2. The specific objectives of the Core Area Residential Revitalization Zone are: (1) To enhance the livability and vibrancy of the downtown area by encouraging construction of new multi-family residential dwelling units in the downtown core area; (2) To encourage realization of the medium to high-density residential designation of this area in the Official Community Plan; (3) To create a residential base within walking distance from the downtown commercial area thus encouraging the evolution of a walkable downtown area in accordance with smart growth principles; and (4) To encourage creation of rental and co-op housing opportunities. 3. The following tax exemptions apply in the Core Area Residential Revitalization Zone: (1) New Construction (a) For construction of a new Eligible Housing Development that is an Apartment Building or a Co-op containing not less than four dwelling units and being not less than two stories high on an existing land parcel, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. (b) For construction of a new building containing not less than four Strata Units or Restricted Strata Units and being not less than two stories high on an existing parcel, a tax exemption for each Strata Unit or the Restricted Strata Unit, as applicable, will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the total Construction Value apportioned in accordance with the unit entitlement of each Strata Unit or Restricted Strata Unit, as applicable.” (2) Assembly Parcels (a) For construction of a new Eligible Housing Development that is an Apartment Building or a Co-op containing not less than four dwelling units and being not less than two stories high on land made up of former lots that were assembled and/or consolidated for the purpose of the development, (i) a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements; and Amended by Bylaw 1328.01 Sept. 22, 2014 Amended by Bylaw 1328.01 Sept. 22, 2014 Revitalization Tax Exemption Bylaw 1328 – Schedule E Page 21 of 27 (ii) a tax exemption on the land will be granted such that the tax on land will be imposed on the Assessed Value of the land minus 35% of the Baseline Assessment of the land. (b) For construction of a new building containing not less than four Strata Units or Restricted Strata Units and being not less than two stories high on land made up of former lots that were assembled and/or consolidated for the purpose of the development, (i) a tax exemption for the Strata Unit or the Restricted Strata Unit, as applicable, will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the total Construction Value apportioned in accordance with the unit entitlement of the Strata Unit or Restricted Strata Unit, as applicable; and (ii) a tax exemption on the land of each Strata Unit or Restricted Strata Unit, as applicable, will be granted such that the tax on land will be imposed on the Assessed Value of the land minus 35% of the Baseline Assessment of the land. 4. The above tax exemptions shall be provided for the following terms: (1) For Strata Units, the above exemptions will be granted for 5 years only. (2) For Restricted Strata Units and other Eligible Housing Developments, the above exemptions will be granted for 5 years, then reduced such that references to Assessed Value of improvements and to 35% of Assessed Value of land are reduced to the following amounts: (a) Year 6 – 80% of Assessed Value of improvements and 30% of Assessed Value of land, where applicable (b) Year 7 – 60% of Assessed Value of improvements and 25% of Assessed Value of land, where applicable (c) Year 8 – 40% of Assessed Value of improvements and 20% of Assessed Value of land, where applicable (d) Year 9 – 20% of Assessed Value of improvements and 15% of Assessed Value of land, where applicable (e) Year 10 – 10% of Assessed Value of improvements and 10% of Assessed Value of land, where applicable Amended by Bylaw 1328.01 Sept. 22, 2014 Revitalization Tax Exemption Bylaw 1328 – Schedule E Page 22 of 27 Schedule E: Industrial Revitalization Zone 1. The Industrial Revitalization Zone is comprised of the shaded area, outlined in dashed lines, illustrated below: Revitalization Tax Exemption Bylaw 1328 – Schedule E Page 23 of 27 2. The specific objectives of the Industrial Revitalization Zone are: (1) To create employment opportunities by encouraging industrial and commercial development in the established industrial areas of Oliver; (2) To encourage introduction of new industrial and commercial buildings and activities and to sustain existing industrial and commercial activities by encouraging revitalization of existing buildings in industrial zones. 3. Subject to section 5 and section 6 of this Schedule, the following tax exemptions are provided in the Industrial Revitalization Zone: (1) New Construction and Expansion – For new construction or expansion of existing industrial and commercial buildings with a Construction Value of $250,000 or more, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. (2) Renovations – For renovations of existing industrial and commercial buildings with a Construction Value of $250,000 or more, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. 4. The above tax exemptions shall be provided for the following terms: (1) For qualifying construction under subsection 3(1) of this Schedule, the full tax exemption shall be granted for 5 years, then reduced such that references to Assessed Value are reduced to the following amounts: (a) Year 6 – 80% of Assessed Value (b) Year 7 – 60% of Assessed Value (c) Year 8 – 40% of Assessed Value (d) Year 9 – 20% of Assessed Value (e) Year 10 – 10% of Assessed Value (2) For qualifying construction under subsection 3(2) of this schedule the tax exemption shall be granted for 5 years only. 5. Notwithstanding Section 3 of this Schedule, no tax exemption will be granted or continued where the principal use of the Property is or becomes one or both of the following: (1) Indoor or outdoor storage facilities; and (2) Vehicle recycling facilities. 6. Notwithstanding anything else in the Bylaw or this Schedule, if the assessment class of the Property for any reason ceases to be Class 4 – Major Industry, Class 5 – Light Industry or Amended by Bylaw 1328.01 Sept. 22, 2014 Amended by Bylaw 1328.01 Sept. 22, 2014 Revitalization Tax Exemption Bylaw 1328 – Schedule E Page 24 of 27 Class 6 – Business and Other, the Property is not eligible for a tax exemption under this Bylaw and any existing tax exemption under this Bylaw ceases at the time of the change in assessment class. Revitalization Tax Exemption Bylaw 1328 – Schedule F Page 25 of 27 Schedule F: Airport Revitalization Zone 1. The Airport Revitalization Zone is comprised of the Oliver Airport located in the shaded area, and outlined in dashed lines, illustrated below: Revitalization Tax Exemption Bylaw 1328 – Schedule F Page 26 of 27 2. The specific objectives of the Airport Revitalization Zone are: (1) To create aviation-related employment opportunities by encouraging commercial and industrial development on the Oliver Airport; and (2) To enhance the financial viability of the Oliver Airport by fostering lease revenues from new commercial and industrial developments on the airport. 3. Subject to section 5 of this Schedule, , the following tax exemptions are provided in the Airport Revitalization Zone: (1) New Construction – For new industrial or commercial construction on vacant land, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. (2) Expansion – For expansion of existing industrial and commercial operations in excess of $250,000 Construction Value, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. 4. The above tax exemptions shall be granted for 5 years, then reduced such that references to Assessed Value are reduced to the following amounts: (a) Year 6 – 80% of Assessed Value (b) Year 7 – 60% of Assessed Value (c) Year 8 – 40% of Assessed Value (d) Year 9 – 20% of Assessed Value (e) Year 10 – 10% of Assessed Value 5. Notwithstanding Section 3 of this Schedule, no tax exemption will be granted or continued where the principal use of the Property is or becomes general aviation hangars for storage of non-commercial aircraft. Amended by Bylaw 1328.01 Sept. 22, 2014 Revitalization Tax Exemption Bylaw 1328 – Schedule F Page 27 of 27 Schedule G: Hotel Development Revitalization Zone 1. The Hotel Development Revitalization Zone is comprised of any parcel which is within a land use zone that permits hotel use. 2. The specific objectives of the Hotel Development Revitalization Zone are: (1) To encourage new hotel investment in the Town of Oliver; (2) To promote a higher standard of overnight accommodations and enrich the visitor’s experience while staying in the Town of Oliver; and (3) To generally reinforce the Town’s commitment to the long term development of the tourism industry in Oliver. 3. The following tax exemptions apply in the Hotel Development Revitalization Zone: (1) New Construction and Expansion – for new Hotel construction on vacant lots and for expansion of existing hotels, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. (2) Interior Renovations and Façade Improvements – For interior renovations or façade improvements in excess of $100,000 Construction Value, a tax exemption for improvements only will be granted such that the tax on improvements will be imposed on the Assessed Value of the improvements minus the Baseline Assessment of the improvements. 4. The above tax exemption shall be provided for the following terms: (1) For construction of a new Hotel Development built under section 3(1) of this Schedule, the tax exemption shall be granted for 10 years. (2) For qualifying construction under subsection 3(2) of this schedule the tax exemption shall be granted for 5 years only. Amended by Bylaw 1328.02 January 8, 2018