Executive Summary: Location: Figure 1: Location of Subject Land

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1 Report Regarding a Commercial Building Façade Improvement Grant, Planning Fees Grant, Residential Intensification Grant, and Revitalization Grant Application Received for 1421 Pelham Street (File No. CP-03-16) Executive Summary: The purpose of this report is to provide Council with information regarding an application for a Commercial Building Façade Improvement Grant for the front, side, and rear façade; Planning Fees Grant; Residential Intensification Grant for the construction of five (5) residential rental units; and, a Revitalization Grant for 1421 Pelham Street. In addition, the project is eligible for the Town and Niagara Region Development Charges Reduction Program. Location: The subject land is located on the east side of Pelham Street at the terminus of Church Hill (refer to Figure 1). The legal description is Part Lot 25 Plan 717 Fonthill as in RO508226, S/T RO508226; Pelham; Together with an Easement over Part Lot 27 Plan 717 Fonthill Designated as Part 2 on 59R as in SN Figure 1: Location of Subject Land

2 Project Description and Purpose: The Town has received a Commercial Building Façade Improvement Grant, Planning Fees Grant, Residential Intensification Grant, and a Revitalization Grant application for 1421 Pelham Street. The main floor of the building, facing Pelham Street, is occupied by Quality Cleaners. The upper level currently contains one apartment. The side façade is visible from the private alley, owned by the applicant, between Pelham Street and Pelham Town Square that is utilized by the public and the rear façade is highly visible from Pelham Town Square. Commercial Building Façade Improvement Grant The applicant wishes to carry out a number of improvements to the exterior of the building (refer to Appendix 1). The extent of the exterior work that is eligible under the town s façade grant program includes: Front Facade replacing existing windows and the entrance door to the commercial unit on the main floor; replacing existing windows with French patio sliding doors on the second floor; installing Arriscraft façade and cornices, and red brick over existing concrete block and board; removing the existing signage and installing Arriscraft architectural cornice and a steel and concrete balcony to support new signage; and, installing new exterior lighting to showcase the new façade. Side Facade removing the existing balcony and stairs; installing five new doors with sidelights and transoms for the residential units; installing red brick and Arriscraft cornice and a limestone base course over the existing concrete block; and, installing a canopy over the residential entrances.

3 Rear Façade installing new doors and windows for the new commercial unit, Kame and Kettle, on the lower level; installing new windows, doors, and steel balcony guards on the second floor; installing new exterior lighting to showcase the new facade; and, replacing the existing concrete block and aluminum siding with red brick, limestone sills, and Arriscraft Façade and Cornice treatments.; and, planting landscaping materials. The Town, through the Commercial Building Façade Improvement Grant, may provide a grant equal to 50% of the costs of eligible façade and storefront improvement and restoration works, up to a maximum grant per property/project of $12, 500. Based on the work proposed and the cost estimates provided to Planning staff, the applicant will be eligible for a grant of $12, 500. At the discretion of Council, a separate matching grant equal to 50% of the cost of eligible rear and/or side façade improvement and restoration works, up to a maximum grant per property/project of $7, 500 may be made available provided the rear and/or side facades are highly visible from Pelham Street or Pelham Town Square. Based on the work proposed and the cost estimates provided to Planning staff, the applicant will be eligible for a grant of $7, 500 from the Town. In total, the applicant will be eligible for a grant of $20, 000 from the Town. The Niagara Region Smarter Niagara Incentive Programs (SNIP) Building and Façade Improvement Grant will match the Town s grant subject to the maximum Regional program funding contribution limits, subject to the satisfaction of Regional criteria, and subject to funding availability. The Regional matching grant available for front façade improvements is up to a maximum $10,000 per property.

4 The Regional matching grant available for side and/or rear facades is up to a maximum $10, 000 per property; however, as the Town s maximum grant for rear and/or side facades is $7, 500, the maximum amount that may be granted by the Region is $7, 500. In total, the applicant may receive a matching grant to a maximum of $17, 500 from Niagara Region, subject to meeting Regional criteria, and subject to funding availability. As part of the grant approval process, the applicant is required to enter into an agreement with the Town. The agreement specifies the details for the grant that will be provided following the work being completed and inspected by Town staff. Planning Fees Grant The applicant wishes to receive a grant equivalent to the fees paid on planning and development applications. The applicant has paid fees for the following applications: $921 for a minor variance (A9/2015P) application, $1, 450 for a consent application (B14/2015P), and $3,584 for a site plan control (SP-06-15) application. The Town, through the Planning Fees Grant, will reimburse eligible planning and development fees minor variance, consent and site plan control application fees are eligible in this program. The Town requires payment of all planning and development application fees at the application stage. Upon completion and substantial occupancy of the project, the Town will provide a grant equivalent to 100% of the eligible planning and development fees paid by the owner. Based on the paid application fees, the applicant is eligible for a grant of $ 5, 955 at the completion and substantial occupancy of the project. For Council s information, the Niagara Region does not have a matching Planning Fees Grant program.

5 Residential Intensification Grant The applicant will alter the existing m 2 (1,200 ft 2 ) commercial space on the main level into one 350 square foot commercial unit and one m 2 (1,125 ft 2 ) barrier free apartment suite. On the second level, one existing m 2 (1,200 ft 2 ) apartment will be converted into two 74.3 m 2 (800 ft 2 ) apartments. On the third level, two new 83.6 m 2 (900 ft 2 ) apartments will be constructed. In total, five residential units are being constructed. The Town, through the Residential Intensification Grant, will provide a grant equal to 50% of the cost of rehabilitating existing residential units and/or constructing new residential units to a maximum of: $15 per square foot of habitable floor space rehabilitated or constructed; $15,000 per unit; and, 5 units per property/project. The program can be used for rental or ownership units. The following types of projects are eligible: conversion of/addition of existing commercial and mixed use buildings that creates two or more residential units; upgrading/renovation of existing residential buildings/units to bring them into compliance with the Ontario Building Code, Ontario Fire Code, and the Town s Property Standards By-law; construction of at least two residential units on vacant property (e.g. vacant lots and parking lots). Based on the five units proposed, and the grant of $15 per square foot of habitable floor space, the applicant will be eligible for a grant of $67,875 from the Town. The Niagara Region Smarter Niagara Incentive programs (SNIP) Residential Grant will match the Town s grant to a maximum grant of $7,500 per unit and 20 units per property, subject to the satisfaction of Regional criteria, and subject to funding availability. Based on the five units proposed, and the maximum grant of $7,500 per unit, the applicant may receive a grant of $37,500 from the Region, subject to meeting Regional criteria, and subject to funding availability.

6 As part of the grant approval process, the applicant is required to enter into an agreement with the Town. The agreement specifies the details for the grant that will be provided following the work being completed and inspected by Town staff. Revitalization Grant The applicant is redeveloping and intensifying the subject parcel and it is expected to result in an increase in property assessment and property taxes. The owner is expected to initially pay for the entire cost of the project. As the Town receives the increased property taxes that results from the project, the Town will reimburse the owner in the form of an annual grant equivalent to 70% of the municipal tax increment (the increase in Town and Regional property taxes) that results from the project for up to ten (10) years or up to the time when total grant payments equal the total eligible program costs. Existing commercial, residential, and mixed use buildings, vacant properties, and parking lots are eligible if there is the creation of more than two net residential units. Only properties that result in an increase in property assessment and property taxes are eligible for funding under this program. The Niagara Region Smarter Niagara Incentive Programs (SNIP) Property Rehabilitation and Redevelopment Tax Increment Financing (TIF) grant will match the percentage of the tax increment granted by a rehabilitation or redevelopment project that is paid by the local municipality in the form of a grant to the applicant. As the Regional tax share is sometimes larger than the local municipal tax share, this means that the Region often contributes more to the tax increment based grant than the local municipality. The Region will continue to match the percentage and duration of any local Property Rehabilitation and Redevelopment Tax Increment Financing (TIF) grant paid by the local municipality, but if the project conforms to the Region s Smart Growth design criteria, it will receive a minimum 75% Regional Property Rehabilitation and Redevelopment Tax Increment Financing (TIF) grant.

7 Regional staff will confirm if the project conforms to the Region s Smart Growth design criteria, and if it is eligible for a minimum 75% Regional Property Rehabilitation and Redevelopment Tax Increment Financing (TIF) grant. As part of the grant approval process, the applicant is required to enter into an agreement with the Town. The agreement specifies the details for the grant, providing yearly estimates of the grant, which will be provided following the work being completed and inspected by Town staff. Once the project is complete and the Municipal Property Assessment Corporation (MPAC) has reassessed the property, Town staff will ensure that the property is not in tax arrears and will use the new assessed value to calculate the actual municipal tax increment and the grant amount. The Town will send a new property tax bill to the owner. Once payment of property taxes has been received in full for one year (or equivalent) by the Town, the Town will issue payment of the grant in the amount specified as per the calculation of the actual grant. The maximum grant amount is $129, The estimated combined Town and Regional grant amount for a ten year period is provided in Table 1. Table 1: Grant Calculation Schedule Year Grant Municipal Tax Increment (3) = Municipal post-project property taxes Grant (2 *3) (N) (1) Factor (2) in Year N Municipal pre-project property taxes 1 70% $16, $11, % $16, $11, % $17, $12, % $17, $12, % $18, $12, % $18, $13, % $19, $13, % $19, $13, % $20, $14, % $21, $14,

8 Development Charge Exemption Program The subject parcel is eligible for an exemption of 75% of Town development charges, as outlined in the Town s Development Charges By-law (By-law 3527 (2014)). In addition, it is eligible for an exemption of 50% of the applicable Regional development charges, as outlined in the Region s Development Charges By-law (By-law ). There is the opportunity for the applicant to qualify for a refund for the remaining 50% if the proposal must satisfy the requisite number of Smart Growth Design Criteria or achieve any level of LEED. Staff Comments: Planning staff is of the opinion that the proposed improvements align with the Town s Downtown Master Plan, December It is noted that the land uses are in conformity with the Town s Official Plan, 2014 and Zoning By-law No (1987). The proposed improvements will enhance the appearance and structure of the property. The redevelopment will result in five (5) residential rental units in addition to revitalized commercial space. In addition, the proposed work will have a positive impact on the revitalization efforts along Pelham Street and Pelham Town Square. Funding for the Commercial Building Façade Improvement Grant, Planning Fees Grant, and Residential Intensification Grant come from the Community Improvement Reserve fund. The Director of Corporate Services advices that there currently are funds available in the Community Improvement Reserve fund for this project. The applicant will receive the yearly Revitalization Grant following full payment of Town and Regional taxes. Corporate Services staff will annually calculate and process the Revitalization Grant. Planning staff recommend that Council approve the Commercial Building Façade Improvement Grant, the Planning Fees Grant, the Residential Intensification Grant, and the Revitalization Grant application.

9 Prepared by: Julie Hannah, MCIP, RPP, Planner Reviewed by: Barbara Wiens, MCIP, RPP, Director of Community Planning and Development Alternatives: Council could choose to not approve the by-law to enter into the Commercial Building Façade Improvement Grant agreement, the Planning Fees Grant agreement, the Residential Intensification Grant agreement, and the Revitalization Grant agreement. Council could alter the term length of the Revitalization Grant agreement. Recommendation: BE IT RESOLVED THAT the Community Planning & Development Department Report for 1421 Pelham Street (File No. CP-03-16) be received; THAT Council approve the by-law authorizing the Mayor and Clerk to enter into a Commercial Building Façade Improvement Grant agreement on the amount of up to $20,000 for 1421 Pelham Street between the Town of Pelham and McGill Turpel Family Holding Corporation; a Planning Fees Grant agreement on the amount of $5,955 for 1421 Pelham Street between the Town of Pelham and McGill Turpel Family Holding Corporation; a Residential Intensification Grant agreement on the amount of $67,875 for 1421 Pelham Street between the Town of Pelham and McGill Turpel Family Holding Corporation; and, a Revitalization Grant agreement on the maximum amount of $129,965 for 1421 Pelham Street between the Town of Pelham and McGill Turpel Family Holding Corporation.

10 Report Regarding a Commercial Building Façade Improvement Grant, Planning Fees Grant, Residential Intensification Grant, and Revitalization Grant Application Received for 1421 Pelham Street (File No. CP-03-16) Appendix 1: Proposed Façade Improvements at 1421 Pelham Street Front Façade (West Elevation) Current Proposed

11 Report Regarding a Commercial Building Façade Improvement Grant, Planning Fees Grant, Residential Intensification Grant, and Revitalization Grant Application Received for 1421 Pelham Street (File No. CP-03-16) Side Façade (South Elevation) Current Proposed

12 Report Regarding a Commercial Building Façade Improvement Grant, Planning Fees Grant, Residential Intensification Grant, and Revitalization Grant Application Received for 1421 Pelham Street (File No. CP-03-16) Rear Façade (East Elevation) Current Proposed

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