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Tempo Student Housing Developer is Asking to Revisit Revitalization Tax Credit that the City Granted in Error


Back in 2019, Gilbane Development applied to the City for a Revitalization Tax Credit for the Northgate undergraduate student housing project. City staff erroneously processed the application and on January 14th, 2020 the Mayor and Council unanimously approved a resolution to provide the tax credit.

The revitalization tax credit was estimated at $571,020 in projected tax savings over a five-year period, based on the standard 75%, 60%, 45%, 30%, and 15% credit for the first through fifth years.

In June 2020, staff realized that the project was not eligible for the tax credit due to amendments in 2015 that made multi-family housing intended to house undergraduate students ineligible for the City Revitalization Tax Credit.

The City informed a representative of Gilbane that the project was ineligible for the tax credit and therefore the Council approval was in error and of no effect. Gilbane has requested the City make this project eligible for the tax credit.

In order for the project to become eligible for the Revitalization Tax Credit, the Council must amend the program by an ordinance. This requires an introduction, public hearing, and vote to adopt. The Council will discuss this option at tomorrow’s meeting.

[UPDATE (3/10/2021): The City Council voted to approve the waiver. Council members Kabir, Mitchell, and Mackie voted in opposition]

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3 Comments

  1. George

    Hopefully that’s a vote for no. No need to have the burden fall on us local tax payers or to flip a law that was placed there in the first place to prevent big multi million dollar investment companies from getting a tax break from regular folks who won’t even live in or benefit from the construction.

  2. Christine A Winderlin

    Fazlul–what was the outcome?

  3. Fazlul Kabir

    Hi Christine, There were some interests to introduce the amendment allowing a tax credit in circumstances like this. The Council will then hold a public hearing and vote at a later date.

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