This year, the Township launched the newly expanded Community Improvement Plan (CIP-E).
This version expands the eligibility of applicants to include businesses in the urban fringe and rural areas, in essence, all businesses outside of the Millbrook downtown core.
The 2023 Capital Budget for the program was $25,000 and eligible applicants could apply to any one of the sixteen (16) incentive programs outlined in the CIP-E and the Millbrook Community Improvement Plan (MCIP). The application period ran for roughly two weeks from August to October. Despite the expanded potential pool of eligible businesses, only one application for the grants was received, in the Business Retention and Expansion Grant category. This particular program strives to incentive projects that assist in the maintenance and creation of permanent local jobs, and provides up to 50% of eligible costs to a maximum of $10,00 per project/property.
Iron Equipment Ltd. applied for funding to assist in the construction of a large fabric building to protect its equipment from weather. This is a growing company servicing the equipment industry which relocated to Cavan Monaghan from a neighbouring community, bringing with it ten employees. It has since added another six staff and continues to grow along with the demand for their services. Salaries for their employees range from $40,000 to $110,000 per year.
The applicant received $10,000, which is the maximum allowed per project. The total cost of the investment is estimated to be $138,842.
Since its inception in 2019, the township has contributed a total of $114,650 to the program which has been supplemented by a $45,456 contribution by the province, bringing the total amount available to $160,106. This latest investment brings the total value of CIP grants issued by the township to $100,388. That total investment is estimated to have stimulated a total private investment of more than $700,000.
The pandemic is partly responsible for the undistributed funds earmarked for this program, as the program was never launched in 2022. In the three years preceding this, the program was fully subscribed. There is now a total of $59,718.01 of unspent funds that have accumulated over the five year period, which have been secured and allocated in previous budget discussions, and rolled over for future spending. Staff recommended that these funds roll over once again into the 2024, providing a substantial pool of funds and eliminating the need for new funds in the 2024 budget.
Economic uncertainty and rising costs loom large in any business owners’ decisions to make capital investments, even when they are incentivized with subsidies. Community Improvement programs are powerful tools to encourage specific investments that can improve the beauty, viability and functionality of our neighbourhoods and businesses. Kg
