SmartCentres appeals for tax break reconsideration at Barrie City Council after initial rejection

The Barrie City Council heard from SmartCentres REIT as it sought it to reconsider a tax exemption for an 80-acre property at 15 Harvie Road, during a session held on Wednesday. This request came shortly after the council rejected a three-year extension of a temporary-use bylaw on April 10th that allowed farming on the same site, a decision driven by concerns over the lower tax rate applicable to agricultural land.

During the session held on April 10, SmartCentres, boasting a market capitalization of $3.39 billion, had proposed using the land for agricultural purposes—a move that would have continued the significant tax savings it has enjoyed since 2016. However, this proposal was met with opposition from several council members, including Ward 7 Councillor Gary Harvey, who criticized the developer for poor communication.

Mark Resnick, Vice President of Development at SmartCentres REIT, responded to these criticisms by making a personal appearance at Barrie City Hall, urging the council to reconsider. He highlighted the benefits of agricultural use as a productive interim use that reduces nuisance and dumping on the property, while also supporting a local farmer. The exemption, if granted, would allow SmartCentres to save between $50,000 to over $175,000 annually in taxes.

Despite some support from Councillors Riepma and Kungl, who viewed the agricultural exemption as a potential incentive, the proposal was strongly opposed by Mayor Alex Nuttall and the majority of the council. The council ultimately voted against extending the tax exemption, reflecting ongoing concerns about the fair application of tax policies and the future development plans for the area.

The property, located on the west side of Highway 400, is currently zoned for light industrial, general commercial, and environmental protection uses following the rejection of the bylaw extension. City staff have estimated that the taxes could increase significantly, ranging from $50,000 to $175,000-plus with this zoning, compared to the current $8,250 when zoned agricultural.

This land also holds potential for significant development. It was rezoned last June and is planned to feature commercial uses on its east side and residential development, including 155 semi-detached homes, townhouses, and two apartment blocks, on the west side. Despite these development plans, the rejection of the bylaw extension and the tax exemption leaves the property's future use and fiscal contributions to the city in question.

The matter may resurface in future council meetings if SmartCentres continues to push for reconsideration, suggesting ongoing debates about development priorities, fiscal strategies, and land use in the growing city of Barrie.