{"id":56257,"date":"2025-03-27T09:22:59","date_gmt":"2025-03-27T12:22:59","guid":{"rendered":"https:\/\/www.chmafm.com\/welcome\/?p=56257"},"modified":"2025-03-27T13:27:23","modified_gmt":"2025-03-27T16:27:23","slug":"legal-advice-convinces-tantramar-council-to-turn-down-late-application-for-180k-tax-rebate-2","status":"publish","type":"post","link":"https:\/\/www.chmafm.com\/welcome\/legal-advice-convinces-tantramar-council-to-turn-down-late-application-for-180k-tax-rebate-2\/","title":{"rendered":"Legal advice convinces Tantramar council to turn down late application for $180k tax rebate"},"content":{"rendered":"\n
\"\"
\u201cI feel we need to do something to make this instance right,\u201d said Deputy Mayor Matt Estabrooks on Monday. Image: TantramarNB on Youtube, June 2024<\/figcaption><\/figure>\n\n\n\n

A request from a local businessman to get a belated $180,000 tax rebate <\/a>may be dead in the water.<\/p>\n\n\n\n

At their committee of the whole meeting on Monday, Tantramar council heard for a second time about an application from Right Coast Realty to belatedly qualify for an economic development incentive program that would rebate them roughly $180,000 in municipal taxes over five years. Right Coast is owned by Mike Wilson of AIL Group, and the application was regarding a plastic pipe factory built by the company in 2023 on Walker Road.<\/p>\n\n\n\n

Staff had previously rejected the application based on program rules which require developers to apply for the incentive rebate in advance. The Right Coast Realty application was dated January 2025, years after the company filed building permits for the project. Despite the staff rejection, Wilson requested a council decision on the matter, and after a discussion in January, councillors asked staff for more information on their options in the matter.<\/p>\n\n\n\n

On Monday, staff presented advice from the municipality\u2019s lawyer, warning that council would set a \u201cpractical and dangerous precedent\u201d if it chose to clearly defy its own policy. The lawyer also said that making an exception for Right Coast Realty would create an expectation from future applicants that they also can miss the program deadline with no impact.<\/p>\n\n\n\n

Manager of Tourism and Economic Development Ron Kelly Spurles told council that according to Plan 360, there is one other development that could have qualified for the development incentive, if they had applied in time.<\/p>\n\n\n\n

The building permit for a commercial building at 95 Bridge Street was approved in August 2021, after the town of Sackville incentive program had been approved. The fitness centre and offices was estimated at $750,000 in construction costs.<\/p>\n\n\n\n

Goal to incentivize development<\/h2>\n\n\n\n

The economic development incentive program<\/a> was passed by the former town of Sackville in 2020<\/a>, and aims to incentivize large developments in mixed use, highway commercial, industrial or higher density residential (R3) zones by offering hefty municipal tax rebates. Developers qualify for the incentive if they apply during the planning stages of their project, before applying for a building permit.<\/p>\n\n\n\n

Right Coast Realty bought the Walker Road property for just over $500,000 in 2022, a few months after Tantramar council changed its zoning rules to allow development using on site water and septic systems. That decision prompted considerable opposition from neighbouring residents<\/a> concerned over the impact on their wells and the potential for environmental contamination surrounding the factory.<\/p>\n\n\n\n

A Tantramar staff report says the company spent about $4.3 million on the development. The assessed value of the Right Coast property rose to about $2.5 million in 2025, the year that the company submitted its application for the incentive program.<\/p>\n\n\n\n

Councillors concerned over process<\/h2>\n\n\n\n

Council reactions to the report from staff and solicitor were mixed.<\/p>\n\n\n\n

Councillor Allison Butcher said she was concerned the municipality failed in its promotion of the program. \u201cSomehow, somewhere, we didn’t do our due diligence with making sure that the program information was available,\u201d said Butcher.<\/p>\n\n\n\n

Councillor Barry Hicks also expressed disappointment in the process.<\/p>\n\n\n\n

\u201cI don’t see how this happened. I think the developer couldn’t have been notified of it somehow, or they wouldn’t pass up free money,\u201d said Hicks. \u201cSo I want something in place so it never happens again.\u201d<\/p>\n\n\n\n

\u201cI don’t like not giving them something,\u201d said Hicks, \u201cbut I see what the lawyer said.\u201d<\/p>\n\n\n\n

We need to \u2018make this right\u2019<\/h2>\n\n\n\n

Deputy Mayor Matt Estabrooks agreed with Hicks, saying he would follow the lawyer\u2019s advice, begrudgingly.<\/p>\n\n\n\n

\u201cI understand the implications of us doing something that we shouldn’t do,\u201d said Estabrooks. \u201cAnd I certainly understand and respect the legal opinion that was obtained. That said, I’m not happy.\u201d<\/p>\n\n\n\n

Like Hicks and Butcher before him, Estabrooks called for a review of the incentive program policy, and indicated that Right Coast was not being treated fairly.<\/p>\n\n\n\n

\u201cI feel we need to do something to make this instance right,\u201d said Estabrooks. \u201cI don’t know what that is, or how we can do that legally\u2026 but it doesn’t sit well with me that something that should have been available to the developer\u2014and an employer in area\u2014was not available.\u201d<\/p>\n\n\n\n

\u2018It\u2019s their responsibility\u2019<\/h2>\n\n\n\n

Councillor Josh Goguen took a different view of the matter, saying that he believed it was the responsibility of Right Coast Realty to know about the programs available to them.<\/p>\n\n\n\n

\u201cIt’s up to an individual or a company to know what rebates or incentives are available to you,\u201d said Goguen. \u201cIf I’m applying for the Canada Greener Homes grant, it’s up to me to know that this needs to be done before the work gets done. So it’s up to an individual to take the responsibility.\u201d<\/p>\n\n\n\n

\u201cI can understand that they’re coming to us to ask us, can you guys give us a leniency?\u201d said Goguen. \u201cBut in the end of the day, it’s their responsibility to take ownership of this and realize that maybe some things weren’t done. So to me, I can’t approve this. It’s not even an option.\u201d<\/p>\n\n\n\n

Incentive program review needed<\/h2>\n\n\n\n

Councillor Michael Tower suggested a review of the incentive policy could include some application timeline leeway for developers. He also suggested increasing the minimum qualifying amount of the project from $500,000, to reflect rising building costs.<\/p>\n\n\n\n

CAO Jennifer Borne responded to some of council concerns by promising that the town\u2019s new director of community and corporate services, who will start in April, would have a \u201cvery proactive approach to economic development.\u201d Borne said the municipality could work with Plan 360 to help make developers aware of the incentive program, but noted that Tantramar developers may apply for permits in any Plan 360 office in the southeast, where Tantramar programs may not be known.<\/p>\n\n\n\n

Borne said Monday\u2019s report was for council\u2019s information only, and would not come forward at a future council meeting. <\/p>\n\n\n\n

Unless a councillor decides to put forward their own motion on the issue, the staff decision to reject the tax rebate incentive application from Right Coast Realty will stand.<\/p>\n","protected":false},"excerpt":{"rendered":"

A request from a local businessman to get a belated $180,000 tax rebate may be dead in the water. At their committee of the whole meeting on Monday, Tantramar council 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