Proposed bylaw could turn infill property tax revenue into fund to improve neighbourhoods

A new proposal at city hall would see some of the property taxes gathered from infills reinvested back into the community.

A new proposed bylaw that will be discussed by the mayor’s inner circle is looking to reinvest property tax revenue from infill developments back into neighbourhoods.

The Neighbourhood Infill Benefits Reserve Grant Program bylaw would make it so 80 per cent of the increased revenue from residential buildings would be put into a reserve fund.

That fund would then be put toward local parks and recreation projects.

A city report notes revenue can be gathered from all two, three and four-unit dwellings in identified infill areas.

It applies to new construction projects as well as changes being made to existing buildings, as long as a final building permit was received on or after June 27, 2025.

The increased revenue would be collected for a period of five years.

Secondary suites would not be used for the reserve fund, the bylaw notes.

The report on the proposed bylaw also states a grant program could come from this as well, which would allow local organizations to apply for money to work on projects.

“Based on estimates, the reserve could collect between $136,000 and $490,000 per year over the next 10 years. Wards with the most new two, three, and four-unit homes will benefit the most from this reserve,” the city’s report reads.

The director of Planning, Property, and Development would be responsible for approving all applications worth up to $100,000. If a request surpasses that price threshold, the application will go to the community committee to either be approved or denied.

“When communities grow, when they grow through infill development, there is pressure on the recreation services, the parks, the playgrounds and all the other assets in the community. This allows us to continue to invest in the recreation assets and parks that are really important to people,” said Mayor Scott Gillingham on Thursday.

If enough money is in the fund, the report said the grant program could start by mid-2027.

The Executive Policy Committee is set to discuss the proposed bylaw on March 17.