Hotel / Motel Grant Program
Niagara Region offers a Hotel / Motel Grant Program for new hotel and motel developments occurring within Niagara. This program will be operational from Jan. 1, 2025 to Dec. 31, 2031.
This program is only available for projects with Regional development charges payable on or after Jan. 1, 2025.
Eligibility
To be eligible for the Hotel / Motel Grant Program, the development must meet all of the following:
- Not be in a position of property tax arrears
- Meet the definition of hotel / motel
- Not have previously received a Hotel / Motel Grant from Niagara Region
A development for a hotel / motel may receive only one grant under this program regardless of whether it consists of a singe legal parcel or multiple legal parcels, or whether the development proceeds by a single phase or through multiple phases.
Niagara Region determines if a development is eligible for a grant under this program after submission of the application and all required information by the owner of the subject lands.
Apply for a Hotel / Motel Grant
Your application must include:
- Completed application
- Confirmation of Regional development charges payment, such as a municipal receipt
- Supplier registration number to receive payment from Niagara Region
- Signed declaration that the subject property is not in property tax arrears subject verification by the municipality
Contact
Application process
Application for the Hotel / Motel Grant must be:
- Made within 30 days of payment of Regional development charges
- Only submitted once all applicable development charges have been paid in relation to a development and Niagara Region has confirmed payment
The timing of the development charge being paid to the municipality will differ from the timing of payment to Niagara Region.
The developer is responsible for:
- Resolving delays with the municipality
- Ensuring that proof of payment for development charges is given to Niagara Region on time so the application can be submitted
All square footage contributing to other commercial functions, including but not limited to restaurants, theatres and / or retail space are not eligible for any grant under this program. They remain subject to the applicable unreduced commercial Regional development charges rate in accordance with By-law 2022-71 at the time of first building permit issuance.
Definitions
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Hotel / motel
A hotel / motel:
- Is a commercial establishment offering lodging to travellers and sometimes longer-term residents
- May include other services, such as restaurants, meeting rooms and stores that are available to the general public, but does not include a dwelling unit
Hotel / motel does not include vacation rental units, such as those:
- Offered through booking applications, including but not limited to Vrbo and Airbnb
- Situated within residential dwellings
-
Development
For the purposes of this program and per Regional By-law 2022-71, development means:
- The construction, erection or placing of one or more buildings or structures on land; or
- Additions or alterations to a building or structure that increases the size or usability; or
- Redevelopment of property
Development does not include temporary structures, including but not limited to:
- Seasonal hoop structures
- Seasonal fabric structures
- Tents
- Produce sales stands
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Grant
Grant means the rebate of a portion of the development charges paid by an owner / developer with respect to a development of a hotel / motel as defined in Development Charges By-law 2022-71.
The Hotel / Motel Grant only applies to that portion of a development that is required for hotel / motel operations exclusively including, but not limited to, lodging rooms, reception and / or foyer area.
Terms of grant program
The value of a grant is:
- Calculated as the total square footage of the structure that is required for hotel / motel operations exclusively, multiplied by the applicable grant rate in the applicable year, as outlined in the schedule
- Determined based on the year in which the first building permit for the development is issued or the year in which the application to the grant program is made, whichever is later
For some developments, this may differ from the rate year used for the purposes of calculating development charges payable due to Section 26.2 of the Development Charges Act.
All square footage contributing to other commercial functions, including but not limited to restaurants, theatres and / or retail space will remain subject to the applicable unreduced commercial Regional development charges rate in accordance with By-law 2022-71 at the time of first building permit issuance and will not be eligible for any grant under this program.
| Year of building permit issuance | Hotel / motel grant rate per square feet |
|---|---|
| 2025 | $2.74 |
| 2026 | $2.35 |
| 2027 | $1.96 |
| 2028 | $1.57 |
| 2029 | $1.17 |
| 2030 | $0.78 |
| 2031 | $0.39 |
| 2032 | $0.00 |
Amount of grant available
The total amount available for all grants under this program for the years 2025-2031 will be capped at $1.5M.
Once this financial cap has been reached, no further grants will be issued to eligible developments even if that occurs before Dec. 31, 2031.
An eligible development under this program may not receive a grant that is more than 25 per cent of the financial cap or $375,000, regardless of the size of the hotel / motel development.
© Niagara Region - 1815 Sir Isaac Brock Way, Thorold, ON, L2V 4T7 - Phone: 905-980-6000, Toll-free: 1-800-263-7215
