{"id":54824,"date":"2025-01-31T15:52:03","date_gmt":"2025-01-31T19:52:03","guid":{"rendered":"https:\/\/www.chmafm.com\/welcome\/?p=54824"},"modified":"2025-01-31T15:55:20","modified_gmt":"2025-01-31T19:55:20","slug":"council-considers-how-late-is-too-late-for-a-180000-development-incentive-grant-2","status":"publish","type":"post","link":"https:\/\/www.chmafm.com\/welcome\/council-considers-how-late-is-too-late-for-a-180000-development-incentive-grant-2\/","title":{"rendered":"Council considers how late is too late for a $180,000 development incentive grant"},"content":{"rendered":"\n
\"\"
Mike Wilson of AIL Group and developer John Lafford are partnering on a proposed seven-storey building for York Street in Sackville. Photo: Erica Butler<\/figcaption><\/figure>\n\n\n\n

Tantramar council has opted to consider an application for a $180,000 development incentive grant to Mike Wilson\u2019s Right Coast Realty, even though the application came nearly 2.5 years late, according to the rules of Sackville\u2019s economic development incentive program.<\/p>\n\n\n\n

Councillors weighed in on both sides of the issue at Monday\u2019s committee of the whole meeting, with Councillors Matt Estrabrooks and Michael Tower speaking in favour of awarding the grant and Councillors Josh Goguen, Debbie Wiggins-Colwell, and Allison Butcher speaking against.<\/p>\n\n\n\n

Manager of tourism and economic development Ron Kelly Spurles told council that staff recommended against awarding the grant. \u201cOur role is to ensure that program criteria are implemented as approved by Council,\u201d said Kelly Spurles, \u201ctherefore, unfortunately, staff recommends that this not proceed.\u201d<\/p>\n\n\n\n

The incentive program was put in place in 2020 by the former town of Sackville, and aims to attract and encourage development in the former town by offering developers the opportunity to receive staggered rebates on their taxes over 5 or 10 years, depending on the size of their project.<\/p>\n\n\n\n

The rules of the program require property owners to apply for the incentive in advance of starting construction on their project, and even before applying for a building permit.<\/p>\n\n\n\n

The building permit for the AIL Pipe Factory at 108 Walker Road was issued in August 2022, but the property owners, Right Coast Realty Inc., did not apply for the incentive program until nearly two and a half years later, on January 9, 2025. And so municipal staff rejected the application because it didn\u2019t meet the general conditions of the incentive program.<\/p>\n\n\n\n

Right Coast Realty, owned by AIL Group CEO Mike Wilson, then requested the matter be brought to council for a decision.<\/p>\n\n\n\n

Staff recommend rejecting application<\/h2>\n\n\n\n

In their report to council, Tantramar staff recommended rejecting Wilson\u2019s grant application, citing the program criteria and the fact that the AIL factory had indeed already been built when the application was submitted. But the report also offered up two other options for council to consider, both of which involve ignoring the timing criteria and offering to pay out the financial incentive after the fact.<\/p>\n\n\n\n

Councillor Matt Estabrooks spoke in favour of the third option outlined by staff, approving the $180,000 grant to Right Coast Realty, but starting payment in 2026, so the municipal budget can reflect the expense.<\/p>\n\n\n\n

Estabrooks chalked up the two and a half year late application to a mistake in paperwork. \u201cIt seems like maybe somebody forgot to check a box or something,\u201d said Estabrooks. He said he supported an option where \u201cthe developer, would still, you know, reap the benefits. And we need that business. We want that business. We want those things to happen here.\u201d<\/p>\n\n\n\n

Councillor Josh Goguen had a different take on the situation. \u201cIt’s unfortunate that this was missed by the developer,\u201d said Goguen. \u201cI really don’t know what we could do better to help in this case.\u201d<\/p>\n\n\n\n

Both Goguen and Councillor Debbie Wiggins-Colwell said they were concerned about the precedent that awarding the incentive after the fact would set. Wiggins-Colwell wondered if future applicants would think that they could also ignore parts of the program criteria, and that ignoring the rules could affect the general reputation of the municipality.<\/p>\n\n\n\n

\u201cKudos to the company for doing it,\u201d said Wiggins-Colwell. \u201cYou have to try\u2026 But as myself, as a councillor, and all the elected officials here, where we were elected to do a job\u2026 If we did this, I think [the company] would look at us in different set of eyes.\u201d<\/p>\n\n\n\n

‘There should be some kind of recognition’<\/h2>\n\n\n\n

Councillor Michael Tower said he shared concerns over the precedent that could be set, but at the same time argued that council should consider giving the incentive grant as recognition for the role AIL Group and Right Coast Realty in the municipality.<\/p>\n\n\n\n

\u201cThere should be some kind of recognition for a company that brings those jobs into town,\u201d said Tower. \u201cThey employ a lot of people, pay a lot of taxes, and a lot of their workers live in town and own property in town. So that’s something big for our municipality.\u201d<\/p>\n\n\n\n

Councillor Allison Butcher took issue with the idea that council would pick a company they thought worthy of the $180,000 grant.<\/p>\n\n\n\n

\u201cWe already have an incentive program in place that has clear criteria,\u201d said Butcher. \u201cAnd if we are deciding that we no longer want to follow that criteria for whatever reason, then I don’t think we need to be picking and choosing who gets to do it. I think we need to go back to that incentive program and adjust it accordingly.\u201d<\/p>\n\n\n\n

\u201cI am not interested in seeing this one go further,\u201d said Butcher.<\/p>\n\n\n\n

In the end council did vote to send the application ahead to a future council meeting for consideration, with Councillors Butcher and Goguen voting against. The approved motion asked staff to come up with a list of other possible developments that may have missed the application timeline in the past five years.<\/p>\n\n\n\n

Another $1.5 million incentive grant on the docket for Feb 4<\/h2>\n\n\n\n

Before the late Right Coast Realty application returns to council, another much larger grant under the Sackville economic development incentive program will be back for consideration, also involving AIL Group\u2019s Mike Wilson.<\/p>\n\n\n\n

Wilson and developer John Lafford have teamed up as Wilford Development Incorporated to build a new 7 story building on York Street, and that development stands to get a rebate from the municipality of over $1.5 million over 10 years, if approved by Tantramar council at its meeting next week on Tuesday, February 4.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tantramar council has opted to consider an application for a $180,000 development incentive grant to Mike Wilson\u2019s Right Coast Realty, even though the application came nearly 2.5 years late, according 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