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Grant helped keep century-old business in Orillia (9 photos)

McLean and Dickey Insurance received grant as part of city pilot project; staff hope program becomes permanent in new year

The city is looking at a downtown redevelopment project as a shining example of how one of its newest grant programs can help revitalize the area.

Mayor Steve Clarke joined city staff Tuesday at McLean and Dickey Insurance at 4 King St. for its grand opening.

The company was the first to receive the city’s tax increment grant as part of the Downtown Tomorrow Community Improvement Plan (DTCIP).

The grant was given for 70 per cent of the new taxes related to the redevelopment of the building — formerly a Goodwill store — and is worth up to $250,000 over five years.

McLean and Dickey will still have to pay all of its taxes, but the tax increment grant allows it to receive 70 per cent of the new taxes back for the first five years after reassessment.

The company received the grant as part of a pilot project under Tier 3 of the DTCIP. In addition to the tax increment grant, Tier 3 includes a brownfield tax assistance grant and a development charges grant. Tiers 1 and 2 of the DTCIP are fully established and are for smaller projects.

“The Tier 3 program has the potential to incentivize major catalytic projects in Orillia, and that means lots of jobs, lots of housing,” said Laura Thompson, the city’s senior manager of business development.

If it weren’t for the grant, McLean and Dickey might have left town. It had spent a decade looking for a permanent location in Orillia. Its five-year lease at 174 West St. S. was set to expire this year.

Danielle Tisi, a partner at McLean and Dickey, said consideration was given to various properties and even the construction of a new building.

“We even considered moving to another municipality in order to make this space work, but, in the end, we really wanted to stay in Orillia,” she said. “Orillia is a community that has supported us for almost 100 years.”

In early 2020, when the opportunity at the King Street building came up, “we knew that we had finally found our new home for McLean and Dickey,” Tisi said.

The large space was completely retrofitted and the company used as much local talent as it could for the project, from electric and climate control to IT and furnishing.

“I look around town and I look at underdeveloped areas where there is potential for transformation and ... you’ve transformed this space. It is fantastic and truly something to celebrate,” Clarke said.

The Goodwill store at that location closed at the beginning of 2016.

“When something sits that empty for that long, it becomes derelict,” Clarke said, likening it to the former BiWay store downtown, which was also redeveloped with the assistance of a DTCIP grant.

“To me, these are two of the most successful DTCIP stories since we started the program.”

For every dollar the city invests in the program, he said, the private sector invests about $15.

City staff are excited about bringing Tier 3 out of the pilot phase. An implementation plan is in the works and is expected to be presented in November for council’s consideration. If it is approved, the goal is to launch it as early as January.

Staff held a virtual roundtable with developers earlier in the day Tuesday to get more feedback about Tier 3.

“Overall, we heard that it would be very valuable in terms of making projects happen faster than they otherwise would have or larger than they otherwise would have,” Thompson said, adding some noted the uncertainty and risk of dealing with a brownfield were challenges.

Since launching the DTCIP in 2017, more than 60 jobs and 30-plus residential units have been created in the downtown core, Thompson said, adding the city has worked with more than 200 investors, entrepreneurs and others interested in operating downtown during that time.

“It shows that Orillia is welcoming to investment and to the retention of jobs, which speaks volumes not only to local businesses, but also to investors who are choosing communities in which to locate,” she said.

More information about the DTCIP can be found here.


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Nathan Taylor

About the Author: Nathan Taylor

Nathan Taylor is the desk editor for Village Media's central Ontario news desk in Simcoe County and Newmarket.
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