The Tax Increment Equivalency Grant (TIEG) is an incentive offered through the Employment Development Community Improvement Plan (CIP). Applications are accepted on a rolling basis.
The TIEG program incentivizes development by providing a yearly grant for a period of up to five years. The TIEG uses the future property tax gains generated by a development to help finance the actual development through the provision of grants. The value of the grant is equal to the incremental increase in municipal property tax resulting from the increase in property assessment as a result of the improvements. The grant starts with 100% in year one and declines 20% per year for an additional four years.
The grant is provided to the owner (registered or assessed), tenant or assigned third party, after the property taxes have been paid in full. The grants will only be provided after the development is complete and after the reassessment of the property by the Municipal Property Assessment Corporation (MPAC) has demonstrated an increase in the assessed value of the property. The pre- and post-improvement assessment and tax values will be used to calculate the incremental increase in municipal property tax revenue and the total value of the grant. The total payment shall not exceed the cost of (re)development.
The annual grant will be equal to a percentage of the tax increment paid for the City’s portion on the property taxes, in decreasing percentages of the increment as follows:
- Year 1 – 100% of tax increment (pro-rated)
- Year 2 – 80% of tax increment
- Year 3 – 60% of tax increment
- Year 4 – 40% of tax increment
- Year 5 – 20% of tax increment
The tax increment shall be calculated as the difference between:
- The annualized municipal taxes resulting from the increased assessment from project completion, as provided by MPAC, adjusted if applicable by subsequent assessment appeal decisions, and
- The annualized municipal taxes based on assessment the day before the effective dates of the assessment increase noted above.
If awarded a grant, an agreement between the owner (registered or assessed owners of lands/buildings) and the City may be required, which will set out the terms, duration, and default provisions of the grant. This may be registered on title of the subject lands at the discretion of the City. The owner will be required to contact the City following the issuance of a Property Assessment Change Notice from MPAC following development/redevelopment. The City may discontinue or rescind any financial incentive, plus interest, where there is not compliance with an executed agreement.
Eligibility
To be eligible for the TIEG program under the Employment Development CIP, applicants must meet all eligibility requirements in Sections 3.3.1 and 3.3.2 of the Employment Development CIP. Please read and review the Employment Development CIP before completing an application.
- Projects must be located within the City of Barrie municipal boundary as it existed on the date of passing By-law Number 2026-018 to be eligible for financial incentives.
- Project sites shall not be located on lands subject to flooding hazards, erosion hazards, including wetlands.
- Projects must be employment or industrial uses including but not limited to advanced manufacturing (inclusive of priority sectors such as automotive, defense, mining, and life sciences). Residential, office, mixed-use, commercial and retail projects would not be eligible.
- May be vacant land or underutilized industrial buildings.
- Priority will be given to projects anticipating the creation or retention of a large number of jobs.
- Priority will be given to projects anticipating the creation of a large amount of new/redeveloped gross floor area and large construction values.
- Priority will be given to projects in priority sectors such as automotive, defense, mining, and life sciences.
- Priority will be given to projects receiving funding through Invest Ontario, or other provincial or federal funding agencies.
- Projects must have received Site Plan Control approval if applicable. An application for the TIEG should be submitted at the time a building permit application is made.
How to Apply
An application for the TIEG program under the Employment Development CIP must be submitted at the time a Building Permit application is made. Applications can be accepted after Building Permit issuance but must be received prior to issuance of an Occupancy Permit.
Please see the guidelines for full information, an overview of application requirements and links to applications. The application must be submitted along with the required cover letter and required supplemental materials.
Invest Barrie staff aim to confirm TIEG eligibility within two weeks of receiving a completed application. Once staff have confirmed eligibility, applicants will be notified in writing, Then, legal agreements will be finalized and registered.