Rocky Mountain House town council is exploring new ways to attract businesses to vacant commercial and industrial spaces by potentially offering incentives to tenants, not just property owners.
Coun. Dale Shippelt introduced a notice of motion asking administration to look at financial incentives for businesses leasing space in existing buildings that require leasehold improvements.
“We have incentives now for anybody who builds their own building, but we don’t have an incentive plan which allows for a tenant within that building,” Shippelt said during the council meeting. “So if we have a new business move into a rented unit, it puts them at an unfair advantage if there’s a competing business right now that would have built a new building and have got the tax incentive.”
Shippelt said the goal is to “have a level playing field” for tenants and building owners. “So my recommendation is that we have administration look at the possibility of formulating something that would address that.”
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He noted that current tax incentives go to building owners, and questioned how the town could ensure a benefit goes to tenants as well.
“So we have some vacant businesses or vacant buildings on Main Street that have been vacant for a long time. Possibly by having some type of incentive for a new business to open in one of those buildings would be advantageous so we don’t have empty buildings on Main Street.”
Some councillors voiced concern about whether supporting tenants in this way might blur responsibilities that typically fall on landlords.
“These buildings that are in town that are rented out have probably been rented out for the last 50 years,” said Coun. Dave Auld. “Would it not be up to the landlord and the new tenant to design that building to meet the needs of the new renters?”
Others worried the proposal could create inconsistencies in how businesses are treated.
“What if business A just moved in a month ago and we put something in place and their neighbour beside them gets incentive — so that’s now not become a level playing field,” said Deputy Mayor Tina Hutchinson.
Despite the mixed opinions, council approved the motion, directing administration to prepare a report exploring financial incentive options to promote and encourage new and expanded commercial or industrial development in existing buildings requiring leasehold improvements.
“If there’s nothing, then so be it,” said Shippelt. “But I just want to see us encourage the empty buildings have a tenant in them. And it may not take a lot of dollars to do that — just any kind of incentive saying we’re a community that cares.”
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