A Kamloops Councillor says a proposal to provide a ten-year municipal tax exemption for new commercial daycare buildings will help alleviate a crisis in the city.

The proposal comes after a May 2020 Community Child Care Planning Program report noted there is a serious need for more registered daycare spaces in Kamloops.

Dale Bass tells NL News she first raised the issue about a lack of childcare spaces when she was elected in 2018, but notes there was pushback from some colleagues.

“It was important to get something done,” Bass said. “To get to the point that we’re acknowledging it as an issue that the municipal government can address was really big for me.”

“It basically went from a ‘this is not an issue we can deal with’ to ‘we’re going to do something really positive about it’ and we did that in two years. It was good to see that finally come to fruition.”

The proposed tax exemption for new daycare buildings was part of a larger discussion on the bylaws currently in place downtown and on the North Shore. Staff are also proposing a ten-year tax exemption to hotels and motels across Kamloops that get redeveloped into new multi-family or mixed-use developments.

The tax-exemption bylaws are meant to incentivize development by deferring the increase in assessed value for a period of ten years by calculating the difference between the assessed value before and after a project.

“[That amount is exempted] for a ten-year term,” Planning and Development Supervisor, Eric Beech, said. “After the ten years, the property values no longer receive an
RTE, and the municipality receives more tax revenue than if the investment had not been made.”

Developers hoping to take advantage of the daycare tax exemption will have to acquire the necessary licenses and keep the facility operational for the entire ten-year exemption period.

“I know there are developers out there who will take advantage of this,” Bass added. “I’ve talked to them and they are starting to see the value in having childcare because its a whole lot easier for families to afford childcare if it is there and [parents or caregivers] can both work.”

“There is an incentive out there now for new builds for childcare centres and I’m really hoping that maybe some of these multi-family developments that are going to be created will include that type of a daycare facility. The idea is out there in the development community.”

Existing daycares in Kamloops will not qualify for a tax exemption if the owners were to make improvements to their facilities.

“The RTE Engagement Group explored if BC Assessment would increase the assessed value due to minor improvements if tenants in an existing commercial building were to make improvements to permit a daycare use,” Beach wrote in his report to council.

“It was concluded that most tenant improvements will have little effect on the assessed value; however, it was determined that if a new, stand-alone commercial building was constructed for a commercial daycare, the increased assessed value would be significant, and an RTE would assist with the commercial daycare’s financial viability.”

Council was unanimous in giving the proposed daycare bylaw first, second, and third reading at their meeting on Tuesday.

All four tax exemption bylaws will be returning to the Feb. 15 City Council meeting for a final vote.