Photo: Kamloops

Some parts of the city where a new specially designed rental revitalization tax exemption will apply.

Kamloops council has adopted a bylaw that brings into play a new revitalization tax exemption aimed at spurring the construction of new rental housing in central areas of the city.

The 10-year tax exemption will apply to new buildings with 10 or more rental units built in specific areas of the city.

“The bylaw seeks to revitalize and encourage the development of rental housing in areas with (a) a high degree of walkability and good access to services and amenities,” said a staff report prepared for the council last month.

These areas include downtown Kamloops, the North Shore and part of Brocklehurst, parts of Sahali, and central areas in Westsyde and Valleyview.

“While some purpose-built rental development may occur without a revitalization tax exemption, the exemption program could make the difference for other projects in terms of whether the developer proceeds or not,” the report says.

Staff noted that the exemption bylaw could also influence developers to build purpose-built rentals rather than strata title developments.

“Incentivizing new purpose-built rentals could also encourage redevelopment stemming from market units. In the long term, more units in Kamloops will increase property tax revenue,” the report says.

Other revitalization tax exemption statutes already exist for Encourage commercial and residential development in the center and on the north coast.to stimulate the redevelopment of existing hotel or motel sitesand build new nurseries.

The city report noted that purpose-built rental tax exemptions differ in that they apply to municipal and provincial taxes.

“Each revitalization tax exemption will require a housing agreement to secure the units as a purpose-built rental in perpetuity,” the report says.