Barrie’s Downtown Business Association (BIA) board has asked to defer its 2021 share of Meridian Place’s construction costs of $151,295.
“Unfortunately, COVID-19 continues to force many of our business and property owners to completely halt their regular business operations,” Downtown BIA executive director Kelly McKenna said in a May 20 letter to city treasurer Craig Millar. “This has caused uncertainty and stress for the business owners we represent.”
She said an agreement between the city and BIA for a repayment schedule can be discussed in the coming months for Meridian Place, an outdoor events space in downtown Barrie.
McKenna also said the deferral would allow the BIA board to stick to its 2021 budget of $561,077.
Imposing an additional charge of $151,295 this year would add an average levy of $493.35 to each of the BIA’s 256 properties, bringing the total average levy to almost $2,323.
Coun. Clare Riepma, who first raised the issue of the BIA repaying its share of Meridian Place, says he is satisfied.
“I am glad that the BIA has made the formal request to defer the 2021 payment for Meridian,” he said Friday. “That clarifies their position on this matter.
“Due to the pandemic, many businesses in Barrie are suffering and our downtown is no exception. I am sure that council will consider this request and I think it is something that we should do,” Riepma added. “I am also pleased that city staff are going to sit down with the BIA to work out a repayment schedule for future years.”
As requested by Barrie councillors, staff met this week with McKenna and one BIA board member. They committed to seeking board consent to submit a written request to council to defer a capital contribution payment in 2021 due to the effects of COVID-19 on the local downtown economy.
The agreement between the city and BIA, signed in 2015, states the BIA will pay one-third of the shareable Meridian Place project costs through the city imposing a special charge, according to the Municipal Act. It would be charged during a 10-year period beginning two years after the substantial completion in 2018 of Meridian Place, located in downtown Barrie just below Memorial Square. So the BIA was initially due to repay about $1.51 million in full on or before 2030.
But this deal did not include a specific requirement that a payment be made each year.
Last year, due to the pandemic and lockdown restrictions on businesses, city council approved an extension of that 10-year timeline for the remaining payments by one additional year, with final payment in 2031.
The BIA is also responsible for co-ordinating community contributions or fundraising for Meridian Place, which are to be at least one- third of the total cost of the project. Any shortfall in fundraising will be added to the BIA’s share, and any contributions exceeding one- third of that total cost will be used to decrease the BIA’s share. The city is responsible for paying the final one-third of the project.
There are 256 properties in the BIA area and the median assessment value of these properties is $531,000, according to city staff.
Based on the BIA board’s approved 2021 budget, a property at the median value will be levied almost $1,830 this year in addition to the general City of Barrie property taxes which are applicable.
Imposing an additional capital charge in 2021 of $151,295, or one-tenth of the BIA’s total Meridian Place commitment, would add $493.35 to the levied amount — bringing the total BIA levy portion to $2,323, or an increase of 26.97 per cent.
Downtown BIA asks to defer its 2021 share of Meridian Place costs - BarrieToday
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