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RFD- 4222 Bylaws   Item #   10. c.    
Regular Council Meeting Agenda   
Meeting Date: 03/08/2021  
Title:    C-1146-21 - Non-profit Community Organization Exemption Bylaw - First Reading - Frostad
Department: Corporate Services  
Strategic Vision Element: n/a Related Goal: n/a

Request for Decision Summary
Bylaw C-1146-21 - Non-Profit Community Organization Exemption Bylaw is being brought forward for Council's consideration. This bylaw will authorize a property tax exemption under section 364 of the Municipal Government Act for a property owned by St. Michael's Grove Manor, located at 260 Pioneer Road.

Proposed Motion
That first reading be given to Bylaw C-1146-21 - Non Profit Community Organization Exemption Bylaw.
St. Michael's Grove Manor applied for property tax exemption for their property located at 260 Pioneer Road.  St. Michael's Grove Manor is involved in providing subsidized senior's housing in the community.  Their existing property on King Street is exempt under Section 362(m) of the Municipal Government Act (MGA) as it meets the dual criteria of being property held by a foundation constituted under the Senior Citizens Housing Act prior to 1994 and is used to provide senior citizens with lodge accommodation as defined in the Alberta Housing Act.  Their new property at 260 Pioneer Road qualifies under these same legal conditions, but the land is not yet being used to provide senior's accommodation.  Upon confirmation from legal counsel, the exemption cannot be granted by administration under section 362 of the MGA as the dual requirements of ownership and accommodation are not being met.  The decision to proceed with the exemption must therefore be considered by Council.  Section 364(1) of the MGA allows a Council to pass a bylaw exempting from taxation property held by a non-profit organization.

St. Michael's Grove Manor has requested that Council consider providing them this exemption for the period of construction, which they estimate to be three years.

The bylaw before Council indicates that the taxpayer must apply annually so that the City may confirm that the property in question is still meeting the criteria for exemption as outlined in Schedule A.  The required criteria in Schedule A allows for consideration of this exemption under section 364 of the MGA until the end of the year in 2024.  This time period will allow for three full years of construction from the spring of 2021.

Upon completion of construction, if the property meets the appropriate usage as outlined in section 362 of the MGA, the property will be exempt and the provisions of this bylaw will no longer be required.  

The property in question has been under a recent subdivision application for the purposes of dividing a portion for resale.  Only the portion intended for construction of the senior's facility will be exempt under the provisions of this bylaw.  The conditional approval of this subdivision application is expected by the end of February.
If Council does not elect to pass a bylaw exempting the property in question, the property will remain taxable until construction is completed and accommodation to seniors is being provided, at which time the property will then become exempt under section 362 of the MGA.
Legal counsel was secured advising of the actions required within this request for decision.  Discussion with City administration departments also occurred to ensure a robust understanding of the complexities of the application.
St. Michael's Grove Manor will be advised of the status of their application.  If the property is made exempt with the passage of the bylaw, they will be advised to file an annual application for update on their property status.

Fiscal Impact
Financial Implications:
In 2020, the property at 260 Pioneer Road yielded $29,472 in municipal property tax.  This property is a total of 6.29 acres.  The subdivision application will result in a 4.926 acre parcel for the senior's accommodation construction.  (78% of original property).  Using this as a calculation percentage, the approximate fiscal impact to the municipality of this tax exemption would be $22,988 annually.
Proposed Bylaw C-1146-21 Non-Profit Community Organization Exemption Bylaw

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