Committee recommends grant for former SilverCity theatre redevelopment

A project to redevelop the former Silver City on Walker Road could receive about $1.9 million in city grants over the next 10 years, a council committee decided to recommend Monday night.

The former movie theatre has been vacant for nearly two years after Cineplex closed the location during the pandemic. Since then, the building's owner, local developer Joe Mikhail, has spoken out about issues with theft and vandalism in the empty space.

According to the application presented to the committee Monday, Mikhail appliedfor the grant proposing to re-develop thebuilding, the majority of which will once again be theatre space. Two of the theatre bays in the former movie theatre are slated to become office or retail space, though that portion of the project is not covered by the grant process.

The city's business developmentgrant program has been inplace since 2011, and provides incentive for new development projects that create or retain jobs to expand Windsor's economy. The proposal submitted by Mikhail falls under the creative industries section of the program.

While Miklhailwill pay taxes on the property, the city will also provide grants equal to about $1.9 million over the 10-year program or the difference between the current municipal taxes and the future taxes on the re-developed property.

"Because the Business Development Grant Program does not cancel taxes, the applicant must pay the full amount of property taxes annually and will subsequently receive a grant for the difference between the pre and post-development municipal taxes," staff wrote in a report to the committee.

The re-development will cost about $6.5 million, according to the application. The property value is expected to climb to about $8 million after developmentup from the $2.5 million current assessment.

The project is expected to employas many as 30 full-time staff.

The property has been vacant for about two years since Cineplex closed the theatre amid the COVID-19 pandemic. Owner Joe Mikhail has spoken about the issues with the property including several thefts and the destruction of the building's cooling units.

After Cineplex pulled out of the building, Mikhail told CBC at the time he saw few other options than to tear down the space. Earlier this year, Milkhail said vandals destroyed a $100,000 heating and cooling unit.

The city's development and heritage standing committee approved the application which will move to council for final approval. The agreement must be signed within a year of council approval. .