YORKTON - Yorkton Council reviewed and updated its Business Improvement Incentive Program at its regular meeting Monday.
The Business Improvement Incentive Program Policy was adopted by City Council in 2020, upon request of the Yorkton Business Improvement District (YBID), Yorkton Chamber of Commerce, and the City’s Economic Development Committee (EDC), explained Michael Eger – Director of Planning, Building & Development with the city.
The purpose of the policy is “to encourage all commercial property owners in the City of Yorkton to enhance the appearance of their buildings and properties, and to provide incentives for the creation and expansion of locally-owned businesses,” he said.
The Policy consists of three streams:
* Façade and Site Improvements Incentive, which provides 1/3 reimbursement for up to $30,000 of eligible façade and/or site improvements. YBID funds an additional 1/3 reimbursement for their members.
* Business Creation and Expansion, which provides a regressive tax abatement for new construction or business expansions. The abatement starts at 100 percent in the first year and drops 20 percent annually until the sixth year, and applies when improvements create over $50,000 of assessed improvements, and are capped at $500,000. This stream applies only to locally-owned businesses (at least 50 percent of shareholders reside in Yorkton Regional Planning District).
* Vacant Building Tax Abatement, which provides a regressive abatement for new, locally-owned businesses to occupy vacant buildings. This abatement starts at 100 percent in the first year, and drops 25 percent per year until the fourth year.
The program was to be adopted for five years, meaning it would expire at the end of 2025, offered Eger.
In looking at the history of the program Eger explained, starting in 2021, the City has budgeted $100,000 annually for the Façade and Improvements stream and also rolled over unused funds to the following year, while YBID has budgeted $50,000 in each year.
Concluding 2024, the City has issued nearly $300,000 to 34 successful applicants, while YBID has issued an additional $195,000 to 22 of its members. This stream saw its highest uptake in 2024, with 16 successful applicants and a combined total of $187,000 funds issued.
“Since 2021, the Business Creation and Expansion stream has provided tax abatement to five locally-owned businesses, while the Vacant Building stream has provided tax abatement to another three locally-owned businesses,” added Eger.
The Program will always have limitations, due primarily to finite funds which are available for municipalities to offer through incentives, said Eger.
“However, there are some modifications that could be made to address some of the issues,” he said.
The changes recommended and ultimately approved unanimously Monday by Council were;
* Separating the Program into three separate and distinct policies to reduce confusion for applicants.
* In the Façade and Site Improvements stream, qualifying that “windows” be eligible improvements only “when part of a larger façade improvement”.
* Requiring two quotes only if they are not issued by local contractors.
Funds for the Program are funded from the operating budget. While the 2025 budget is yet to be approved by Council, Administration has earmarked the same $100,000 in funding that could be utilized for Program renewal.
