Canadian Tire gets break

Author: Rick Vanderlinde

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Innisfil council has decided to ignore its own March 31 deadline by giving Canadian Tire a $300,000 break on development charges for a new store in Alcona.
But the majority of councillors hope the reprieve will see the new Canadian Tire at Innisfil Beach Road and Sideroad 20 built sooner, which could reap financial benefits in the long run.
“I think there could actually be a financial advantage for us by doing this as this time,” Mayor Brian Jackson said.
Jackson pointed to an immediate influx of $900,000 in pre-paid development charges under the old rate and $500,000 a year in commercial taxes once the development is built.
“If they don’t end up locating here we could lose that for some time,” he said.
Council set a March 31 deadline for its new development charges, meaning developers that apply for a building permit after that date would pay significantly higher rates.
But Canadian Tire sent council a letter March 19 saying it couldn’t meet the deadline. The letter warned that the “project would not be financially viable” if Canadian Tire was forced to pay the higher rate.
“Canadian Tire is disappointed that the Town is willing to levy such a substantial increase in charges against our store that has been in the pipeline for such a significant period of time,” Alicia Kuntz, the corporation’s vice-president of real estate, wrote.
In the end, council voted 6-2 in favour of allowing Canadian Tire to pre-pay the old development charges. But it must be ready to apply for a building permit by Sept. 1 or face additional charges.
Councillors Lynn Dollin and Paul Wardlaw voted against the move, arguing taxpayers will end up paying the $300,000 in lost fees to attract retail growth that will eventually arrive anyway.
“This is not a Honda plant,” Dollin said. “This is retail, and when there is residential growth there is retail growth. We’re going to have to ask residents to pay the $300,000 so we can have these (45) jobs come to town.”
Meanwhile, a No Frills store planned for the north side of Innisfil Beach Road did meet the deadline and will pay the old development charge rate.
The grocery store and Canadian Tire, which will include a Mark’s Work Wearhouse, are the only two developments affected by the deadline.
Although he sees the Canadian Tire development as boon for Alcona, Deputy Mayor Gord Wauchope said he would not vote to extend the deadline again.
“This is the final time,” he said. “This is going to be a great event for the Alcona area as an entrance to the downtown core. It will attract other businesses. This is great advantage for the Town of Innisfil at this time.”
Jackson added, “Alcona has been commercially deficit for years. I think we need to move ahead on this. It’s been a long time getting to a population that warrants having a new Canadian Tire and No Frills store.”
Council sees the stores as a “gateway” to a new downtown in Alcona, a vision that includes a $20 million plan to create a state-of-the art streetscape for Innisfil Beach Road between Sideroad 20 and Lake Simcoe.