The Canadian Motor Speedway scored major financial backing opportunities this week from the region of Niagara. This is the first form of measurable support that the Niagara regional has thrown behind the CMS despite the fact that the speedway is an incredible commercial investment for the City of Fort Erie.
Canadian Motor Speedway now eligibal for regional financial incentives
The region approved major tax breaks under the terms of the Niagara Gateway Economic Zone and the Centre Community Improvement Plan program. They have waived a $1.5 million development charge. The CMS is now eligible to apply for tax incentives that could amount to approximately $1.4 – $1.8 million in relief each year for the project over 10 years. The incentives are available under the first phase of development.
The project was originally endorsed by the Fort Erie councillors back in March, the Fort Erie Councillors then urged the Region of Niagara to reconsider the CMS as a priority under the Gateway Economic Zone and the Centre Community Improvement Plan program.
Niagara Gateway Economic Zone and Centre Community Improvement Plan
The program is run through Niagara region in conjunction with the municipalities of Fort Erie, Port Colborne, Welland, Thorold and Niagara Falls. The local and then regional councils must both approve the grant applications. The CIP offers two programs:
Tax Increment Based Grant Program (TIBG)
– applies to regional and local government property taxes
– available for up to 10 years for projects within the outlined strategic locations and for 5 years for projects outside of the strategic locations
Regional Development Charge Grant Program
– granted to “exceptional” projects that achieved high economic and environmental design performances under the program established markers
– applies to the regions development fees only with a cap of $1.5 million.
Canadian Motor Speedway by the Facts
$400 million track developed on 821 acres of land
To become Canada’s largest stadium with 65,000 seats
700 permanents jobs created, 1200 construction jobs created over 20-month period
Completion scheduled for 2017
Town of Fort Erie endorsed a $15 million investment to pre-development
Niagara Region approved tax incentives up to $1.8 million per year over 10 years and waived a $1.5 million development fee
Debate over whether a four lane interchange should be built at Bowen Road continues. CSM announced this week that their team will present a third party traffic management study to the Ministry of Transportation later this month. This study confirms that the current two lane overpass is sufficient enough to manage the extra traffic.
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