OTTAWA -- The city's finance and economic development committee (FEDCO) will vote Tuesday on a proposal to provide a $2.9-million grant to a company that wants to build a luxury auto dealership at the corner of Montreal Road and St. Laurent Boulevard.
According to documents prepared for the FEDCO meeting, staff are proposing that councillors approve a submission by Mrak Holdings Inc., a.k.a. Mark Motors, for a Community Improvement Plan Grant, which would be worth no more than $2,910,171 over ten years.
The property at 458 Montreal Rd. is currently an Audi dealership, while Mark Motors Porsche is located at 611 Montreal Rd. The staff report described the proposed new building as "world class", saying it would cost approximately $17-million to build.
"The new facility will take up more frontage along Montreal Road and St. Laurent Boulevard with elegant design and materials, and include a gateway feature that will accommodate plantings, bench seating, and product display," the report states.
Staff say the granted funds will be recouped by a massive increase in property taxes at the site. The report says the current property tax bill for 458 Montreal Rd. is $25,625, which will balloon to approximately $355,620 a year. The city also says the permits and development charges will bring in $1.9 million.
Staff add that the proposed grant would not be paid in advance, but would instead be tied to the development of the project and subsequent property tax income.
"If the development does not proceed then no grant would be paid," staff said.
New dealership to be an 'important gateway to Vanier': staff
Montreal Road is in the midst of a major redevelopment, aimed at creating a "vibrant and welcoming main street with a well-balanced transportation network that will allow residents and businesses to thrive," according to the city. The $64-million project includes burying hydro wires, replacing water and sewer mains and redesigning the street.
Staff say the proposed dealership would "represent an important gateway to the Quartier Vanier shopping district and showcase the City’s newly upgraded streetscape."
Construction has Montreal Road closed to all but a single westbound lane until late 2022.
