Bringing a hotel conference centre to Whitby has been a long-term aim for the town, but convincing a major chain to commit and build one will need financial incentives – a strategy that council is ready to support.
Residents, however, have mixed opinions about the proposal.
At a special meeting on Wednesday, Whitby Council approved two targeted incentive plans designed to promote development in response to the absence of a hotel and conference centre in town, as well as to encourage more rental housing construction.
The council voted 8-1 against staff recommendations, endorsing a 50 percent discount on development charges for applicants of the town’s Hotel and Conference Centre Attraction program. To stimulate purpose-built rental housing projects, they also approved an initiative that allows discounts of up to 50 percent on residential development charges, which can be paid over ten years after occupancy.
Whitby Mayor Elizabeth Roy stated that attracting a “much-needed” hotel and conference centre to the area and increasing both the availability and diversity of housing options are key goals outlined in the town’s 2023-2026 Community Strategic Plan.
This year, the committee previously endorsed the Hotel and Conference/Convention Centre Attraction program – with staff indicating at that time there was “demonstrated market interest” from hoteliers but additional incentives were necessary to draw in major hotel chains. Roy pointed out that “multiple councils” have tried before to establish a convention centre in Whitby.
Roy mentioned that these incentives are crucial due to the “challenging” construction environment, noting that discounts for hotels and conference centres would be available only if applicants secure building permits within 18 months.
“High construction costs, financing challenges, labor pressures, and economic uncertainty are making it tougher for significant developments to move forward. Even projects backed by strong market demand can be scaled down or halted if financial conditions aren’t favorable,” she explained.
Roy added that reports from staff along with feedback from Whitby’s sports, business, and tourism sectors indicate that there’s not enough hotel or conference capacity right now to meet current and future needs.
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“This gap limits our ability to fully capitalize on the significant sport-tourism opportunities created by the new Fieldgate Sports Complex as well as tourism demand generated by attractions like Thermea Spa Village.”
The issue has sparked conversations on local community social media platforms. One commenter expressed opposition against council’s decision to “subsidize” private commercial development since staff had advised against it.
Others supported council’s choice in response; one individual remarked that development charges are taxes and “reducing taxes is a good idea when it encourages investment.”
For clarity’s sake, staff recommended in their report no further discretionary DC discounts because some success has already been seen with existing timely construction/development incentives; three companies have signed up for this program so far.
Roy believes more incentives are essential while emphasizing that the town seeks “significant public benefits in return,” including growth in tourism, economic activity increases, tax revenue boosts, job creation opportunities as well as community amenities enhancements.
A discount of 50 percent on development charges could represent around $1 million to $2 million per hotel project. The town anticipates collecting between $540,000 and $870,000 each year from currently enrolled projects through property taxes along with Municipal Accommodation Tax revenue.
The three developments are also expected to generate between $8.4 million and $14 million annually in off-site visitor spending which would support local restaurants, retailers , attractions , and other businesses within Whitby , according to Roy.
Their construction would create jobs during building phases while ongoing operations will provide continued employment opportunities across various roles including hospitality , food service , event management , maintenance , among others.
“Municipalities frequently utilize targeted incentives when developments promise wider lasting benefits. For instance , Niagara Region runs a Hotel/Motel Grant program designed specifically for reducing regional development costs tied directly with qualifying initiatives ; meanwhile York Region offers its own separate favorable category focused solely on hotels.” p >
“In such challenging times for construction markets just standing still means losing out important projects – along side their benefits – towards other communities. These measures put careful thought into turning plans into actual ground-breaking reality.” p >
Councillor Maleeha Shahid voiced her full support behind both Hotel & Convention Centre initiatives. p >
“The fact is we can’t keep waiting forever. Whitby plays host regularly hosting big sports events like lacrosse festivals hockey tournaments alongside various community celebrations but often those athletes families visitors coming here tend stay & spend outside our city.” p >INSAUGA Canada’s Editorial Standards and Policies
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