The redevelopment of the mall in downtown Chatham will get a bit of a tax break following a unanimous vote at Monday’s council meeting.
Municipal staff put forward a motion to support the 100 King project by providing an annual grant equivalent to 100 percent of the increase in municipal property taxes resulting from the redevelopment of a Major Employment and Commercial Use in a Downtown Area. The grant will be provided for a period of ten years.
The grant comes from the Property Tax Increment Equivalent Program, which offers financial incentives for the development, redevelopment, adaptive reuse, or rehabilitation of properties within designated areas.
This grant helps offset the property tax increases that typically occur after a redevelopment, making it more attractive for investors to revitalize key areas of Chatham-Kent.
Chatham King Street LP and 100 King Street Holdings Inc., the groups behind the project, applied for the grant as part of a redevelopment phase with a proposed construction value of approximately $16 million.
The final grant amount will be calculated once the project is completed, based on a reassessment by the Municipal Property Assessment Corporation (MPAC) and the resolution of any appeals through the Assessment Review Board (ARB).