City Weighs River District Expansion, Potentially Adding Properties to Tax Levy Area
City of Owen Sound staff will present a report to the River District Board of Management outlining the process required to expand the former DIA's boundaries to include properties west of the river.
The City of Owen Sound is taking preliminary steps toward a possible expansion of the boundaries of the River District, the area formerly known as the Downtown Improvement Area (DIA).
While no final decision has been made, City Council previously endorsed the concept “in principle” as part of the 2020 River District Action Plan. Now, a new staff report outlines how the process could move forward.
At the May 14 meeting of the River District Board of Management, staff will seek direction on whether to begin public consultation on the proposed boundary changes.
If pursued, the consultation would engage both current and prospective property owners and business tenants to gather input before any changes are formally considered by Council.
What’s Being Proposed
The River District, formerly known as the Downtown Improvement Area (DIA), currently covers the area from 7th Street East to 11th Street East and between 1st Avenue East and 3rd Avenue East.
(The River District Action Plan, on the other hand, is described by the City as “an urban rejuvenation project” with different boundaries. It includes both 1st Avenues East and 1st Avenue West from 8th Street to 10th Street.)
While no map of the proposed expansion has been released, the River District Action Plan identifies the west side of the Sydenham River and the harbour area—particularly along 1st Avenue West between 8th and 10th Streets—as a key area for possible inclusion.
This would incorporate additional harbourfront and commercial properties into the district.
Expanding the boundary would also potentially include more properties in the district's marketing and beautification efforts.
What It Means for Property Owners
If the boundary is expanded, affected properties would become part of the Improvement Area and be subject to an additional levy on top of regular municipal taxes. Tenants in commercial properties who pay all or part of property taxes would also be impacted.
The River District originated in 1973 as the Owen Sound Downtown Improvement Area (DIA) and was officially rebranded as the River District in 2022. But the governance structure of the improvement area shifted significantly years prior to that.
In 2018, the City restructured how the BIA was governed, establishing a new board of management. Meetings take place in Council Chambers at City Hall and are “supported” by the City’s senior administration.
The shift has led to concerns from some business owners and residents about public input and representation.
In January 2024, a public meeting on the River District’s annual budget drew criticism after attendees said their feedback was not considered before the budget was approved and forwarded to Council.
City staff later confirmed that the Board did not meet again to review that input prior to sending the budget forward.
Since then, City Council has approved a reduction of the number of Council members appointed to the River District board from two to one.
These developments form part of the broader context for the proposed expansion. If the boundaries are adjusted, more property owners and tenants would fall under the River District levy, and potentially be affected by decisions made by the current board structure.
What Happens Next
Under the Municipal Act, any boundary change must follow a regulated procedure. This includes sending official notices by mail to all property owners within both the current and proposed areas. Owners would then be required to notify any commercial tenants who pay part or all of the property taxes.
If one-third of property owners or tenants (based on tax share) object to the proposed changes within a 60-day window, the expansion cannot proceed.
It is not yet known whether the City itself counts in the tallying of a one-third vote. The Tom Thomson Art Gallery and Owen Sound & North Grey Union Public Library, both City-owned properties, are inside the proposed expansion area.
The River District Board of Management is being asked to authorize staff to launch a consultation process. This would include online and in-person opportunities for feedback and would be followed by a detailed report summarizing the results.
If consultation supports the idea, the City could then move forward with the formal notification and by-law process required under the Municipal Act.
The full staff report, including a map of current River District boundaries, is available on the City of Owen Sound’s website as part of the May 14 River District Board of Management agenda.
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