Grey Highlands council has just barely approved a Community Improvement Program (CIP) grant for a downtown Markdale construction project.
At its meeting on Jan. 17, council gave the thumbs to a CIP application totaling a maximum of $8.500 in a tight 4-3 recorded vote with Deputy Mayor Dane Nielsen and councillors Tom Allwood, Nadia Dubyk and Joel Loughead in favour.
The project involves a property located at 51-53 Main Street West in Markdale and includes general improvements to the property and the replacement of an old coach house that had fallen into disrepair.
Staff reviewed the application and determined it was eligible for three components of the CIP program: maximum of $3,500 for property, landscape and parking improvements, a maximum of $2,500 for the planning permit fees and a maximum of $2,500 for the building permit fees.
Property owner and project proponent Elizabeth Dingman spoke to council about the CIP application during the open forum portion of the meeting.
“This is a pretty big project,” she said.
Several members of council expressed skepticism about approving the grant recommended by staff.
Mayor Paul McQueen worried that approving up to $8,500 for one project wouldn’t leave much in the budget for other applications.
“I don’t know if I can support the full $8,500, maybe a portion of it,” he said.
McQueen also noted that Grey County had recently decided to stop providing $20,000 in annual funding to local municipalities for CIP grants, which was going to put a damper on the funding available for the CIP.
Coun. Paul Allen had reservations about approving a grant for the coach house aspect of the project.
“I’m not sure we should be funding something that was junk,” he said.
McQueen moved an amendment to limit the grant to the maximum of $3,500 for the general property improvements, but his amendment was defeated by council.
Michele Harris, the municipality director of economic and community development, said the staff team had reviewed the application and determined it was eligible for the CIP funding.
“(The CIP) is meant to stimulate private investment in the community,” she said.
Harris said staff are planning a review of the CIP program in light of the county’s decision to withdraw funding. Harris said Grey Highlands had $45,000 in the annual budget for the CIP, which included the county funding. Harris said the county had provided a total of $100,000 ($20,000 per year for five years) for the CIP and the municipality still had plenty of money available for the program.
“I think this program will need some changes,” she said.
CAO Karen Govan warned council that turning down the application would mean council was voting against its own CIP policy framework.
“You do have a policy in place. It has been determined that these meet the criteria. Now you’re going against your own policy,” said Govan.
