Community Revitalization Levy
What is it?
A community revitalization levy (CRL) is a way municipalities can dedicate future property tax revenue in a specific area to pay for a new public facility or new infrastructure in that area.
In this way, the general property taxes in the rest of the city do not pay for the new public facility or infrastructure.
A CRL can be used to fund public projects designed to encourage new development and revitalize a specific part of the city. A new public project would encourage private sector investment that otherwise would not occur. The resulting new development generates tax revenue that would not otherwise occur, and raises property value within the area.
How it works?
The City invests in public infrastructure in a particular area. That improvement spurs new development. The property tax revenue from that development, along with any revenue from a lift in the value of existing property, is dedicated to paying the costs of the infrastructure, including financing costs, for the next twenty years.
Funds generated through the CRL are revenues that otherwise would not be realized. Once the initial investment has been repaid, the revenues realized from the development would be directed to the City’s general tax levy.
The Provincial Government also contributes the education portion of the new municipal tax revenue towards the initial investment amount. (This portion of the tax is normally collected by the City and paid to the Province).
It’s estimated the new development stimulated by the construction of an arena would generate enough property tax revenue to fund $125 million of the initial construction costs of an arena, as well as the financing cost.
The Community Revitalization Levy FAQ page has more details.
For more information:
| Online | Contact 311 Online |
|---|
| Telephone | In Edmonton: 311 Outside Edmonton: 780-442-5311 |
|---|---|
| TTY | 780-944-5555 |
| 311@edmonton.ca |
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