Committee supports $2.9M tax break for Porsche dealership

Ottawa's finance committee has unanimously approved a tax break worth up to $2.9 million for a future Porsche dealership on the main business strip of a lower-income area despite residents who argued it would be "social assistance for millionaires."

Mayor Jim Watson, however,called approving the grant "a very good deal for taxpayers".

The local Mrak family, owners of Mark Motors, are the first applicants of a two-year-old City of Ottawa program aimed at revitalizingMontreal Road in Ottawa's Vanier neighbourhood.

• City considers grant for new Porsche dealership in Vanier
• City touts tax plan to boost business on Montreal Road

If Mark Motorsbuilds a flagship Porsche store at Montreal Road and St. Laurent Boulevard, city staff project the site'sproperty taxes wouldspiketo $355,000 annually, or 14 times more than the owners currently pay. In exchange for upgrading the property, the city would pay the Mraks agrant worthup to 75 per cent of the difference over 10 years.

Watson said itwould put the city $1 million ahead ifthe Porsche store is built.

"It is not some bail out for a fancy car company," Watson told reporters. "It's injecting more money into the city coffers so we can provide greater social services, more social housing, greater infrastructure."

The Porsche dealershipwould create 20 more jobs than the 40 at the site's existing luxury car dealership, the owners said. City staff said they hope five orsix more such applications will be submitted in the coming years to act as a "magnet" for renewal in Vanier.

"It's the kind of investment we're hoping to see more of along Montreal Road," said DonHerweyer, the city's director of economic developmentand long-range planning.

Porsche no gateway to Vanier, residents say

Brother and sister Michael and Lisa Mraktold committee they grew up nearby and want to invest in the area.

The Quartier VanierBusiness Improvement Area supported the family's community involvement and said their investment was a sign of confidence in the neighbourhood's future.

"Why can't Vanier have nice things, too?" added Quartier Vanier'schair, Mark Kaluski, whosaid the brand name Porsche should beirrelevant in deciding whether to approve the application.

The site is just beyond the Vanier neighbourhood, but is within its business improvement area andpart of the section of Montreal Road the city has designated for such grants.

Rideau-Rockcliffe Coun.Rawlson King, supported the community improvement grantand underscored it was set up to expand the tax base and is "designed not to draw upon the public purse."

Sam Hershsaw it differently in the public delegation he gave.

"Money that is supposed to be taxed but is untaxed is money that is lost that could have been used," Hersh argued.

"To me, this is equivalent to providing social assistance to a millionaire," saidresident Philippe Denault.

He dismissedcity staff's assessment thatthe Porsche dealership would be a suitable "gateway" to Vanier, saying that was "detached from reality."

Several delegations said a car dealership, no matter how nice, was not in keeping with the city's goal of creating pedestrian-friendly neighbourhoods. Benches outsideof a Porsche showroom did not constitute public space, they said.

Given the unanimoussupport at finance and economic development committee, the Mraks' grant application is likely to receivefull city councilapproval on May 26.