By Lyonel Doherty
The Town of Oliver has given Desert Sun Counselling and Resource Centre a 50 per cent tax exemption on its affordable housing project on Main Street.
But not before some debate on Monday.
Desert Sun applied for a 100 per cent tax exemption for its affordable housing complex in Sandalwood Court.
Mayor Martin Johansen said he was “struggling” with this application because of the precedence it would be setting – using tax savings to support secondary services (housing) elsewhere in the community as opposed to counselling services.
He said affordable housing definitely provides value in the community, but he doesn’t think it should qualify for tax exemptions.
The mayor said there are other ways to support affordable housing projects, such as reduced development cost charges, relaxed parking requirements and reduced tax rates.
“The other thing for me is protecting the Town’s tax base; we don’t have a very robust tax base and every time you give a tax exemption, we’re cutting into that and putting the burden on the rest of the community to pay for those other things we need.”
Johansen said a better way to support Desert Sun is a grant-in-aid.
Councillor Aimee Grice pointed out that the Town has already set a precedent by giving Kiwanis housing a 100 per cent tax exemption.
But Johansen and Chief Financial Officer Doug Leahy noted that is a statutory exemption previously set by provincial legislation.
Councillor Petra Veintimilla said Desert Sun provides a needed service for vulnerable people in Oliver, while fellow Councillor Larry Schwartzenberger reminded council that the organization is a non-profit.
Johansen said he didn’t want anyone to misinterpret his comments as negative towards Desert Sun, reiterating they provide tremendous value to the community.
Schwartzenberger made a motion to give Desert Sun a 50 per cent tax exemption for one year and then look at what type of tax break they can get as supportive housing.
Council supported the motion unanimously.
