Major Office Incentives Program details
Changes to Peel Region's Role in Land Use Planning
On July 1, 2024, under the Planning Act, Peel Region was designated an "upper-tier municipality without planning responsibilities." Consequently, the Cities of Brampton and Mississauga and the Town of Caledon are the land use planning authorities responsible for local and regional official plans and development applications. The Ministry of Municipal Affairs and Housing is the approval authority for certain official plan reviews and amendments.
In 2020, Peel Region undertook an assessment to consider how it could encourage and incentivize more Major Office type development, and as a result, increase employment in Peel.
The result of this assessment was a resolution from Regional Council to incentivize Major Office development by establishing a Peel Major Office Incentives program to support local municipal Community Improvement Plans (CIPs) that incentivize major office development.
About the Tax Increment Equivalent Grants (TIEG) incentive
Regional Council directed that an incentive be provided by Peel through Tax Increment Equivalent Grants (TIEGs) by matching TIEGs provided by local municipality CIP programs.
When a local municipality provides a Tax Increment Equivalent Grant (TIEG) for an eligible office development, Peel Region will contribute a financial incentive via a TIEG that matches the reimbursement percentage and the duration of the local TIEG provided that it satisfies the Regional Office Incentives Program criteria.
Peel Region is offering a TIEG for successful applications which meet criteria.
Peel Region's grant will be a TIEG that matches the local municipal TIEG by structure, within the following thresholds:
- The TIEG starting percentage must be no higher than 100%.
- The TIEG must decline by no less than 7% each year.
- The TIEG will be in place for up to ten years.
Program expiry: The MOI Program is open to receive applications until December 31, 2026.
TIEG process
The high-level process for determining the Grant to be issued is:
- Determine the Base Tax Level:
What is the current assessed value, tax rate, and property tax payment of the property prior to the development occurring? - Determine the Post-Development Tax Level:
What is the newly assessed value, tax rate, and property tax payment of the property once development has occurred, and the property has been reassessed? - Determine the Incremental Difference:
What is the difference between the base and post-development tax level? - Refund a Portion of the Incremental Difference:
A grant will be issued for a portion of this incremental increase as per the outlined structure.
Project criteria and eligibility checklist
- The project or application (or both) must be proposing the development of major office within Peel and specifically within a designated Community Improvement Area in one of Peel's local municipalities.
- A new standalone major office development or a new major office component that meets Peel's definition of major office: Major Office employment of 20,000 sq. ft. (1,858 m2) or above (up to 10% less will be considered as well).
- In a mixed-use development or structure, only the new major office component, as defined will be eligible for incentives.
- The project/application must conform to the Regional Official Plan and the subject local municipality's official plan.
- Owner-occupied or multi-tenant buildings can be eligible.
- Only new major office construction or the adaptive reuse of non-office buildings to major office uses, where the payment of increased property taxes would apply, are eligible.
The MOI Program is open to receive applications until December 31, 2026. Applicants who already have a building permit issued shall not be eligible to apply for the program.
- Applications submitted to the local municipality
- CIP and MOI application review and qualification process
- Letter of confirmation of eligibility1
- Standard Development Review process
- Local and regional agreements
- Tax granting process (post-construction)
1Regional Council approval may be required.
Following the approval of successful projects, Peel will outline the terms of the commitment.
Contribution agreements
Agreements may include, but are not limited to, the following:
- Calculations of expected property tax grants.
- Amount of Peel incentives to be provided.
- Time period of Peel incentives to be provided.
- Commitment time limits of the proposal.
- Expiry date if not utilized.
- Confirmation of the amount of major office space being developed that meets Peel Criteria.
- Confirmation of conformity with Local Municipal official plans.
Final agreements will be made after the post-construction property tax assessment is available, with the TIEG value informing the Regional Council budgeting for the MOI Program. Regional Council or the staff delegate will make a grant to the local municipality to then be provided to the applicant.
Interaction with other planning incentives
Projects receiving a TIEG from the local level are eligible for Peel incentives to increase the overall likeliness of project success.
Links to local municipal CIPs for major office development
Note: Only formal application materials should be used to determine appropriateness of the Peel Major Office Incentives Program for specific projects. Formal application materials and detailed legal requirements and agreements will be finalized following the confirmation of eligibility of an application.