Whitehorse mulls $500K tax grant for downtown developer

Whitehorse city council is considering a major tax rebate for a downtown builder that, if approved, would be the biggest grant to date under the city's new major development incentive policy.

A company called only 535756 Yukon Inc. is already working ona four-storey building on 303 Alexander St, a property that has sat vacant. It will include three floors of government offices, six penthouse apartments and underground parking.

The developer also plans major landscaping for the city-owned boulevard along Alexander Street, including street furniture.

"It would be a nice streetscape to look at and to see," says city planner Kinden Kosick.

City planners are recommending council approve up to half a million dollars in tax grants over the next 10 years.

'Deferred income'

Kosick says incentives like tax rebates have become popular across Canada in municipalities seeking development of vacant downtown properties.

"And at this point there is nothing on the land there so there is no tax coming in," he says. "We are more just deferring the income we would see on this project to ensure we get development on key locations."

If approved, Kinden says the $400 to $500 thousandrebate would be the biggest grant to date under the new policy.

'Building another box'

While the Alexander Street development may qualify for tax breaks, it's not winning any praise for aesthetics.

City Councillor Betty Irwin wasn't impressed with its design.

"Underground parking to me is just, Wow. That's icing on the cake. But it's got to be one of the most uninteresting buildings I've seen goup in Whitehorse in a long time," she said. "Here we are, building another box."

Construction is already underway on the building's foundation.

When it's finished, the building will house the offices of the Yukon Economic Development department.