The optics don’t look good.
The idea of offering tax breaks to lure economic development has been around for almost as long as taxes, so the fact Delta has created zones in an effort to spur such activity is hardly ground breaking. What you give up in the short-term is more than made up for in the long run, and when you factor in new jobs as well as other spin-off benefits, it’s difficult to find fault with the approach.
Difficult, but not impossible, as the Gateway casino proposal is showing us.
The purpose of the tax break is to tip the scales in Delta’s favour by providing an incentive for a business that might be considering a number of possible locations or might be wavering on whether to pull the trigger on a particular project. It’s that little – or not so little – inducement that’s supposed to seal the deal.
The casino proposed for the Delta Town & Country Inn property stands to benefit from these tax exemptions to the tune of as much as $700,000, yet I think it’s safe to say those savings had absolutely no bearing on the project.
Firstly, Delta was chosen as the host local government by the B.C. Lottery Corporation so it’s not like Gateway had a choice or we were competing with neighbouring jurisdictions for the business. What’s more, I’m sure the proponent didn’t require that extra financial incentive because owning a casino in the Lower Mainland has, after all, proven to be a licence to print money.
To be fair to Delta, the tax exemption initiative is a one-size-fits-all kind of thing so if a project is in the designated zone and meets the qualifications, it gets the breaks, regardless if it needs them or its development decisions are being influenced by them. On the surface it doesn’t make a lot of sense to give a casino those kinds of benefits, but I guess you can’t cherry pick when it comes to the legislation.
It’s similar to what’s happening in Tsawwassen where redevelopment plans for the Town Centre Mall qualify for tax exemptions even though the owner had been looking at a refresh before the incentive program came into effect.
From a purely financial standpoint, a casino is good for Delta, breaks or no breaks, but the unnecessary relief gives opponents one more reason to dislike the application.
