Montague expands tax reduction zone to include hotel

Steve Sharratt, The Guardian
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Owner Robert Jay enjoys the vista of the marina and waterfront in Montague from the balcony of his new Riverhouse Inn expected to open soon in the heart of Montague.

MONTAGUE — The tax reduction zone in eastern P.E.I.’s largest town has been expanded to assist the owner of a new hotel.

Businessman Robert Jay sought to have his new Riverhouse Inn hotel included in the tax reduction zone that was designed by the town to encourage business to the downtown area.

At the time, there were numerous business vacancies along the Main Street and the tax reduction effort was focused on attracting new operators.

“However, the construction of a new hotel is an important addition to this town and I think we should really consider this,” said CAO Andy Daggett. “It’s a tax reduction on a sliding scale for a five-year period.”

Town councillors here agreed the multimillion-dollar hotel that opened earlier this year was a major project and certainly represented a new business endeavour.

“It’s probably the most important new building we’ve seen constructed here in some time,’’ said Coun. Jim Bagnall.

The hosting of major events, both in sports and commerce, has been lost over the years because of the lack of a facility in the town with enough overnight rooms or conference space.

The Riverhouse Inn is a 30-room building with a 100-seat multi-media room and offers convention-like facilities. However, it is built along the Montague River and outside the current tax reduction zone.

“I think this hotel has become a major anchor for this town and should be included in our incentive system,’’ said Deputy Mayor David Mabon.

The town reimburses 100 per cent (based on the increase in municipal assessment) during the first year and follows a pattern of 90, 75, 50 and 25 per cent for the next five years.

Before approving the inclusion of the hotel, council was told the reimbursement from the town would tally around $10,000 this year.

Organizations: Riverhouse Inn

Geographic location: Eastern P.E.I., Montague River

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Recent comments

  • Wondering
    August 20, 2014 - 18:53

    Wondering who else gets this deal in Montague. Anyone? Anyone?

  • alister
    August 20, 2014 - 18:15

    Curious this Island is, every rule is meant to be broken, --- you just cant abide by anything, - there is always somebody ready to abet somebody in breaking the rules and getting advantages where they should not, --- how can you all live with yourselves???? Greetings from 'From away'.

  • Joe Blow
    August 20, 2014 - 13:49

    He already saved a pile of money by not hiring an Engineer & Architect, why give another break? It says right in the article that the Tax Incentive was done to attract business to the downtown area....why apply it to a new building?...The business is already there!

  • Again
    August 20, 2014 - 09:22

    Here they go again , granting special privileges to a already established business that most likely allowed for taxes before building . Really not the intent of getting the empty buildings on main street filled as this tax incentive was meant to do . Just what does the regular Joe that is trying to stay in their homes & are paying full assessment think of this . Curious question ; how many on council are property owners & paying property taxes in Montague ???????

  • Chester L
    August 20, 2014 - 08:18

    The View from Martinvale......Chester L Great idea this tax free zone, we need to encourage more business capital investment in our Business Zones so good for business and now lets get some tax relief for our consuming public.....just so we do not forget how important they are to the economy also.:)