Downtown Yellowknife apartment building won't get tax break after motion fails

A downtown apartment complex in Yellowknife will not receive a tax reduction after a motion failed to pass through city council.

The motion to extend a tax relief for the next five years on the building called, “The Nest,” failed to pass after a tie in votes at the city council meeting Monday.

Borealis Development, owner of The Nest, is under a five-year tax abatement plan that began in 2022. It had requested for a five year extension of the plan.

The building used to house federal government offices but is now home to 72 apartments.

Coun. Steve Payne wanted to know if it was usual for businesses to apply for tax relief several months in advance.

Planning director Charlsey White said businesses were encouraged to apply early so the city could make plans.

“So is it normal for a residential property like or a commercial property like this to get a 10-year tax abatement?” asked Payne.

White replied there were no current requests from businesses in Yellowknife, but other cities do have declining tax abatement rates.

The property is on a 100 per cent abatement plan, meaning the business gets a tax relief of about $100,000 every year.

City councillors had decided on a declining rate for the property over the next five-year period, which meant it would get to keep about $300,000 over the next five years.

"I know we're going to be voting here in a couple of minutes on this, but I just want to have it on the record that I will not be supporting this additional five years,” Payne said. He did not give any reasons.

Coun. Rob Warburton said he supported the declining tax rate after a discussion because it “does allow (the city) to collect some taxation as we go forward.”

The councillors in favor of giving the property tax relief were Tom McLennan, Garett Cochrane and Warburton. Those opposed were Stacie Arden-Smith, Rob Foote and Payne.