At this point, the development in Rexdale calls for a facility called Woodbine Live, to be built at a cost of more than $700 million. It will feature live entertainment venues, bars, restaurants, shops and a skating rink.

Phase II would include 1.5 million sq. ft. of office space and 2,500 residential units.

A proposal is before city council now for a $120 million tax break spread over 20 years, which would apply only to Phase I. That initial portion of the project is to include an entertainment, restaurant and shopping development adjacent to Woodbine Racetrack.

The proposal has a partial endorsement of city staff who are recommending the tax break, to be spread over 20 years, is granted.

Under the proposal, the city would continue to collect taxes based on the property's current value, but forgoes the taxes that would be garnered on the added value of the property over the specified time.

While many municipalities, over the years, have considered or even wanted to issue tax breaks to potential investors in their communities, municipal officials have always said their hands were collectively tied by provincial guidelines. Basically, providing some one-time credit development charges such as roadway improvements, curbs, etc.

Even with those, they have been quite rare as municipalities simply have not had the budgetary ability to absorb large pieces of infrastructure, even if it would mean a long-term boost to their coffers.

The City of Toronto has implemented its own, new program to attract development in areas of the city where times are particularly tough and the resulting development which would ensue pushes up a property's value.

Typically, such tax breaks are more common in the U.S., where developments average a tax break of 30 per cent of the overall project's cost.

While the proposed contribution for the Woodbine project is only 12 per cent, it is a start.

Now, economic renewal is the cornerstone of such a tax credit program's success. Some guideline to ensure projects were created in locations with high unemployment and low incomes, as well as requiring what Toronto officials describe as "community benefits" is a no-brainer.

It is crucial to note that this has nothing to do with the casino or gambling aspect of Woodbine. It is a massive project that takes in residential and retail uses, as well as entertainment. That does not mean one needs to be naive to the point that there could be some residual spin-off of traffic -- certainly the profile would skyrocket -- but this type of development could be in most city cores, too.

Projections do call for $76 million in new taxes, with another $75 million in added slot machine revenue from the growth, both over the 20-year period outlined.

It is likely the added slot revenue is a bargaining chip in that the developer saves now, but the city will recoup its investment in a couple of ways, but that does not detract from the fact such tax credit programs make sense to drive positive economics into underdeveloped areas.

It will be most interested to see how the proposal plays out.