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Canwest, a “sister” company of North Prairie Developments Ltd., would still pay full property tax on the land.

The tax break was estimated at $425,000 a year for a total of $2.13 million. A City of Saskatoon administration report recommended a 95 per cent property tax abatement, but Atchison successfully convinced the committee the project deserved a 100 per cent break.

“I don’t think this is an unfair request at all,” Atchison said.

Atchison cited the 192 parking spots for vehicles in the planned underground parking facility and 20 bike stalls. The building will host a 3,000- to 4,000-square-foot restaurant on the ground floor, he said.

“I don’t see any difference between this and Parcel Y or any of the other buildings we gave 100 per cent abatement to,” Coun. Troy Davies said.

The tax abatement is part of a program that dates back to 2011 to encourage development on vacant or underused properties in the downtown. The abatement currently applies to both the municipal and education portion of property tax, but the province has indicated it may reconsider whether the education portion will continue to be part of the abatement program, a city report says.

Such a move could reduce the abatement by about 40 per cent.

Completion of the building is scheduled for early 2020, Atchison said. The building on the southeast corner of Third and 22nd was originally projected to be the location of a 27-storey tower as part of a twin-tower project by North Prairie.

Atchison confirmed “eventually” a second tower will be built, but the Haultain building could be demolished and converted into a parking lot before that.

“The sooner we are successful with the first site, the sooner we will be successful with the second site,” Atchison. He declined to elaborate further after the meeting, citing the tenants in the Haultain building.

ptank@postmedia.com

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