Penticton council can’t dictate the market’s needs

Amendments to city's economic investment zone bylaw must balance economic incentives with a competitive marketplace

The continuing reverberations from the global financial crisis have left Penticton council walking a tightrope to balance the best interests of the community they serve.

At one end of the spectrum are incentives designed to attract new business and the jobs they bring with them, while the need for a competitive marketplace looms large on the horizon.

The city’s delicate path was in clear view at this week’s council meeting, where third reading was given to an amendment that would provide a $500,000 tax incentive for the developer of a retirement resort.

Regency Resorts has announced plans to build a $25 million, 159-unit retirement resort off Yorkton Avenue in the south end of the city. Southwind Retirement Resort is anticipated to create about 50 full-time jobs and inject an estimated $2.5 million into the local economy.

But the $500,000 tax break, coupled with a $150,000 discount on building permit fees, has left some of the city’s other retirement complexes feeling their future competition is being given an unfair advantage.

“You are interfering with the marketplace (using) taxpayer dollars,” said Leo Mead, the owner of Athens Creek retirement lodge.

While maintaining a competitive marketplace is something council needs to bear in mind, the primary goal of the economic investment zone bylaw must be providing incentives to create local jobs and stimulate economic activity.

Southwind Retirement Resort will do just that, but council has clouded the issue through the wording of the proposed bylaw amendment. It limits tax breaks to facilities with a “resort-like atmosphere” and at least 25 per cent amenity space.

It is not for council to dictate what a business should provide to its customers. Council simply needs to create a climate to encourage sustainable growth, and allow the marketplace to determine what services are in demand.

 

Just Posted

(Pixabay photo)
Morning Start: Goosebumps helped scare off predators

Your morning start for Tuesday, June 15, 2021

Sue Birds captured this sunset photo that took place in between the rain and thunder Monday night, June 15, 2021. (Sue Birds)
Stormy sunsets over Okanagan Valley

Monday night had thunder, rain and stunning sunsets

Owner Daren McWhinney is really excited about the new location of Angry Vegan which just opened up at 536 Main Street. (Monique Tamminga Western News)
Penticton’s Main Street turns into foodie heaven

Angry Vegan, Wild Ginger, Twisted Chopsticks and Gratify recently opened

Penticton Overdose Prevention Society co-founders Desiree Franz, Shane Surowski and Stephanie Lines have created the city’s first unsanctioned public overdose prevention site using an old wine-tour bus. The site began operations in June 2021. (Desiree Franz/Facebook)
Volunteers launch Penticton’s first public supervised injection site

2021 is on pace to be the deadliest year for overdoses in Penticton on record

Four golfers from Fairview Mountain Golf Club in Oliver will golf from sunrise to sunset to raise funds for ALS on June 29. (Submitted)
Golfing from sunrise to sunset in Oliver for ALS

Four golfers from Fairview Mountain Golf Club have taken up the challenge June 29

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

Port Alberni court house (Alberni Valley News)
Coroners’ inquest into 2016 death of Port Alberni teen rescheduled for June 21

18-year-old Jocelyn George died of heart failure after spending time in jail cell

Children’s shoes and flowers are shown after being placed outside the Ontario legislature in Toronto on Monday, May 31, 2021. THE CANADIAN PRESS/Frank Gunn
Ontario commits $10 million to investigate burial sites at residential schools

Truth and Reconciliation Commission identified 12 locations of unmarked burial sites in Ontario

Two hundred and fifteen lights are placed on the lawn outside the Residential School in Kamloops, B.C., Saturday, June, 13, 2021. The remains of 215 children were discovered buried near the former Kamloops Indian Residential School earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Days after Kamloops remains discovery, Tk’emlups families gather to unite, move ahead

‘We have to work together because this is going to be setting a precedent for the rest of the country’

In this Saturday, May 29, 2021, file photo, people crowd the Santa Monica Pier in Santa Monica, Calif. California, the first state in America to put in place a coronavirus lockdown, is now turning a page on the pandemic. Most of California’s coronavirus restrictions will disappear Tuesday, June 15, 2021. (AP Photo/Damian Dovarganes, File)
With COVID tamed, it’s a ‘grand reopening’ in California

No more state rules on social distancing, no more limits on capacity, no more mandatory masks

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

(Dave Ogilvie photo)
One injured after being pinned by fallen forklift near Peachland

West Kelowna emergency crews responded to reports of a person stuck under a forklift

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

B.C. ambulance station in Revelstoke is expected to get a new system called the Scheduled On-Call (SOC) this fall. (Liam Harrap - Revelstoke Review)
B.C. ambulance changes could put Revelstoke residents at risk, warn local paramedics

Paramedics said to expect a substantial increase in ambulance response time starting this fall

Most Read