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RFD- 4224 Bylaws   Item #   10. d.    
Regular Council Meeting Agenda   
Meeting Date: 04/12/2021  
Title:    C-1146-21 - Non Profit Community Organization Exemption Bylaw - Third Reading - Frostad
Department: Corporate Services  
Strategic Vision Element: Related Goal:

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 (MGA) for a property owned by St. Michael's Grove Manor, located at 260 Pioneer Road, and under a very recent application for a property owned by Meridian Housing Foundation, located at 404 Calahoo Road.

Proposed Motion
That third 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 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 St. Michael's property 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 has been signed and the registration process is underway.
This bylaw before Council indicates that the taxpayer must apply annually so that the City may confirm that the properties in question are 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 in question meet 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.
This bylaw was given first reading on March 8, 2021 and second reading on March 22, 2021. Since second reading was given, Meridian Housing Foundation has also requested exemption from taxes on their property at 404 Calahoo Road which is intended for construction of a senior's facility over the next couple years. The Executive Director, from the Meridian Housing Foundation, estimated they would begin construction in 2022 with the earliest occupancy being the end of 2023.
Meridian Housing Foundation was established as a "Housing Management Body" by ministerial order under the Alberta Housing Act in 1995. They provide seniors housing options in the tri-municipal region. They are a registered charity with
non-profit status. This is a very similar application to the St. Michael's application in that the dual requirements of ownership and accommodation are not currently being met until the facility is constructed. As such this application is also deemed appropriate for inclusion in this bylaw. Should Council wish to include this additional property within the bylaw, an amendment will be required to prior to passing of third reading in order to facilitate the exemption prior to the setting of the tax rate.
If Council does not elect to pass a bylaw exempting the properties in question, the properties will remain taxable until construction is completed and accommodation to seniors is being provided, at which time the properties will then become exempt under Section 362 of the MGA.
If Council chooses to provide a tax exemption to Meridian Housing Foundation’s 404 Calahoo Road property in addition to an exemption provided to St. Michael’s Grove Manor, they may do so with the following amendment to the bylaw:

That Bylaw C-1146-21 – Non-Profit Organization Tax Exemption Bylaw be amended to add the following to Schedule “A”:
Roll Number Property Owner Operating As Municipal Address Required Criteria
010025 Meridian Housing Foundation Meridian Housing Foundation 404 Calahoo Road Property held for construction of a Senior’s Facility prior to December
31, 2024
The draft amended bylaw is attached to this agenda report for Council’s consideration as "Proposed Bylaw C-1146-21  - amended to include Meridian Housing Foundation".
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 and Meridian Housing Foundation will be advised of the status of their applications.  If the properties in question are 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.

In 2020 the property at 404 Calahoo Road yielded $11,477 in municipal property tax.

As a result of this exemption, the two properties included in Schedule A of this bylaw have a combined municipal financial impact to the city of $34,465 annually.
Proposed Bylaw C-1146-21 - version passed at second reading
Proposed Bylaw C-1146-21 - amended to include Meridian Housing Foundation

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