Economic growth and sustainability is the driving force behind DNB. Bringing together the various regions of New Brunswick to work together to make the Business Improvement Areas of our province prosper. In order to achieve this objective, we have narrowed our focus to our top 3 priorities.
1. Funding Program to Implement NB BIA Planning Initiatives
DNB in partnership with the Province of NB – Regional Economic Development Corporation and Government of Canada through ACOA must work toward the establishment of an investment program designed to stimulate growth, sustainability and future development of our BIA’s and Downtown Cores.
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The objectives of the investment program will be to:
- Enhance and encourage a positive investment spirit within the downtown business community and encourage local entrepreneurship.
- Enhance private investment and participation by providing government stimulus assistance in a strategic manner sensitive to the needs of Down- towns in Atlantic Canada which will maximize direct spin-offs locally.
- Revitalize downtowns in a manner consistent with Federal, Provincial and Municipal economic development strategies. It is imperative that downtowns continue to develop critical mass that will provide the base necessary for sustainable economic development.
- Increase the income opportunities and employment benefits through expanded retail and service retail and other businesses within downtowns Increase the income opportunities and employment benefits through expanded retail and service retail and other businesses within downtowns
2. Tax Incremental Financing Program
Tax increment financing (TIF) is a financial tool which allows local governments to encourage economic development through a public-private partnership mechanism based on property tax. TIF has been widely used in the United States; and some Canadian provinces such as Ontario, Manitoba, and British Colombia have passed TIF legislation.
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The first TIF legislation was passed in 1952 by the state of California as a means to encourage economic devel- opment in “blighted” or underdeveloped areas in which development would likely not take place without a public subsidy. TIF became popular during the US post- war period as it did not require any government expenditure or public tax burden, but rather used future tax revenue to encourage immediate economic development.
“The theory behind TIF is that the property tax generated in a blighted area is flat or declining. If redevelopment can be stimulated, property values will rise and commercial activity will increase, creating an incremental increase in the tax revenues generated” (A US Experience with Tax Incremental Financing).
3. Business Improvement Act- Review and Amendments
DNB would like to work together with the Province of NB on a review of the current BIA Act. BIA’s by nature are a creation of the commercial property owners and members, they set their own levy rate, approve their budget and request imposition of a municipal By-Law for the collection of this levy which is then returned to the BIA for their operations and reinvestment in the business area. It is important for the BIA Act to be reviewed in partnership with DNB to address short- comings related to BIA protections.
