City Council - Planning Meeting Agenda

Transcription

1 City Council - Planning Meeting Agenda February 12, :30 p.m. Council Chambers, Guelph City Hall, 1 Carden Street Please turn off or place on non-audible all electronic devices during the meeting. Please note that an electronic version of this agenda is available on guelph.ca/agendas. Open Meeting 6:30 p.m. O Canada Silent Reflection First Nations Acknowledgment Disclosure of Pecuniary Interest and General Nature Thereof Council Consent Agenda: The following resolutions have been prepared to facilitate Council s consideration of various matters and are suggested for consideration. If Council wishes to address a specific report in isolation of the Consent Agenda, please identify the item. It will be extracted and dealt with separately as part of the Items for Discussion. IDE Development Priorities Plan Summary Recommendation: That Council approve a 2018 target for the draft approval of 286 housing units and the potential for registration of 1014 housing units within plans of subdivision in accordance with the 2018 Development Priorities Plan. Public Meeting to Hear Applications Under Sections 17, 34 and 51 of The Planning Act (delegations permitted a maximum of 10 minutes) IDE Huron Street - Proposed Zoning By-law Amendment File: ZC Ward 1 Staff Presentation: Katie Nasswetter, Senior Development Planner Delegations: Chris Pidgeon, GSP Group Jason Fleming Melissa Fleming Monday, February 12, 2018 City of Guelph Council Agenda Page 1 of 2

2 Correspondence: Alex Barlow Staff Summary (if required) Recommendation: That Report IDE from Infrastructure, Development and Enterprise dated February 12, 2018 regarding a proposed Zoning By-law Amendment application (ZC1709) from GSP Group Inc. on behalf of 120 Huron GP Inc. to permit a residential development on the property municipally known as Huron Street and legally described as Part of Lots 1 & 2, Range 2, Division F, City of Guelph and Part 1 of 61R-4274, be received. Items for Discussion: The following items have been extracted from the Committee of the Whole Consent Report and the Council Consent Agenda and will be considered separately. These items have been extracted either at the request of a member of Council or because they include a presentation and/or delegations. IDE Downtown, Brownfield and Heritage Grant Performance Monitoring: and Potential CIP Review Directions Presentation: Ian Panabaker, Corporate Manager, Downtown Renewal Tim Donegani, Policy Planner Recommendation: That Council receive report # IDE titled Downtown, Brownfield and Heritage Grant Performance Monitoring: and Potential CIP Review Directions. Special Resolutions By-laws Resolution to adopt the by-laws (Councillor Gibson). Mayor s Announcements Please provide any announcements, to the Mayor in writing, by 12 noon on the day of the Council meeting. Notice of Motion Adjournment Monday, February 12, 2018 City of Guelph Council Agenda Page 2 of 2

3 Staff Report To Service Area City Council Infrastructure, Development and Enterprise Services Date Monday, February 12, 2018 Subject 2018 Development Priorities Plan Summary Report Number IDE Recommendation That Council approve a 2018 target for the draft approval of 286 housing units and the potential for registration of 1014 housing units within plans of subdivision in accordance with the 2018 Development Priorities Plan. Executive Summary Purpose of Report To summarize the annual Development Priorities Plan, and provide key recommendations for 2018 subdivision related development approvals. Key Findings Staff recommend that Council approve the potential for 286 housing units be draft approved and 1014 housing units be registered in Financial Implications All capital works required for plans of subdivision recommended for registration in 2018 have been previously approved by Council in the capital budget. Report Background Generally the Development Priorities Plan (DPP) is an annual report that sets out recommended dwelling unit targets for subdivision registration and draft plan approval. The recommendations are based on project-readiness, related capital projects being accounted for in the budget, and services being available. Since 2007, the recommended levels of draft plan approval and registration in the annual DPP has been higher than the actual level of approvals achieved. Recommending higher levels of subdivision approvals provides a degree of market flexibility and mitigates against factors that can impact timing of approval, such as appeals and market conditions. Page 1 of 5

4 The actual number of units created through subdivision approvals combined with unit creation through zone changes and draft plans of condominium has been sufficient to maintain a healthy short term housing supply in accordance with the housing supply policies as defined by the 2014 Provincial Policy Statement. This healthy short term housing supply, in turn, supports sustained strong annual building permit activity. In 2017, there were no subdivisions draft approved, one draft approved plan was registered and no new draft plan of subdivision applications were received. Given the low volume of current subdivision activity, staff have provided a brief summary of this year s Development Priorities Plan and recommend that the plans that were anticipated for approval in 2017, or forecast for approval in 2018, be permitted to continue to work towards registration. Subdivision Registration The 2017 DPP recommended that up to 885 dwelling units within nine (9) plans of subdivision could be brought forward for registration. Only one phase of one plan was registered in 2017 with a total of 98 units (Phase 1A of Victoria Park Village subdivision). The number of units registered in 2017 was less than what occurred in Staff recommend that for 2018 that a total of 1014 potential dwelling units in eight (8) draft approved plans could be registered (as shown in ATT-1). 176 of the residential units recommended for registration are within the built boundary, and 838 are within the designated greenfield area. Staff note that several of these draft plans are actively working towards subdivision registration at this time. ATT-2 shows the anticipated timing of all current subdivision applications in the City. Staff have updated the standard DPP background information review and can confirm that adequate water and wastewater capacity are available at the City s Water and Wastewater Treatment Plants; and that any capital works needed for the proposed plans to be registered in 2018 are complete or approved Capital projects. Staff are able to recommend to Council that these plans of subdivision continue to work towards registration in Draft Plan Approvals The 2017 DPP identified that up to 286 units in two (2) plans in the east end of the City (Cityview Ridge and Hyland subdivisions) could be brought forward for draft plan approval, but by year end neither was ready to proceed. Both of these plans have been carried forward into the 2018 DPP and both plans, if ready for approval, could proceed to Council for draft plan approval this year (as shown in ATT-1, Table 2). Of the 286 proposed dwelling units, all are in the Greenfield area and 110 are single detached, 54 are semi-detached, 68 are townhouses, and 54 are apartments. There were no new draft plan of subdivision applications in Page 2 of 5

5 Financial Implications All capital works required for plans of subdivision recommended for registration in 2018 have been previously approved by Council in the capital budget. Consultations Developers, property owners and planning consultants with active proposals and subdivision applications were asked to provide their anticipated timing in order to update City projections for registration. Corporate Administrative Plan Overarching Goals Service Excellence Service Area Operational Work Plans Our Resources - A solid foundation for a growing city Attachments ATT-1 Anticipated Subdivision Activity in 2018 ATT-2 Anticipated Subdivision Registration Timing Map Departmental Approval Not applicable. Report Author Katie Nasswetter Senior Development Planner Approved By Chris DeVriendt Manager of Development Planning Approved By Recommended By Todd Salter Scott Stewart, C.E.T. General Manager Deputy CAO Planning, Urban Design and Infrastructure, Development and Enterprise Building Services , ext , ext scott.stewart@guelph.ca Page 3 of 5

6 ATT-1 Anticipated Subdivision Activity in 2018 A. Plans of Subdivision Anticipated to be Registered in 2018 Semi- Plan Name Location Detached Townhouses Detached Victoria Park Village Ph 2 Victoria Park Village Ph 3* Kortright East Ph 4A* Kortright East Ph 4B* Harts Village Ph 1* NiMa Trails Ph 1A* NiMa Trails Ph 1B* 55 & 75 Cityview Ph 1* Grange* Apartments Total Housing Units S S S S S E E E E Grange* E Cityview Ridge Ph 1 E OVERALL TOTAL Portion of Total in Built Boundary Portion of Total in Greenfield (*) indicates carried over from approved 2017 DPP; B. Plans of Subdivision Anticipated to be Draft Approved in 2018 Plan Name Location Detached Semi- Total Housing Townhouses Apartments Detached Units 23T Cityview NE Ridge* 23T Hyland Rd* NE OVERALL TOTAL Portion of Total in Built Boundary Portion of Total in Greenfield (*) indicates carried over from approved 2017 DPP. NOTE: Data in green denotes location in designated greenfield area. Page 4 of 5

7 ATT-2 Anticipated Subdivision Registration Timing Map Page 5 of 5

8 Staff Report To Service Area City Council Infrastructure, Development and Enterprise Services Date Monday, February 12, 2018 Subject Statutory Public Meeting Report Huron Street Proposed Zoning By-law Amendment File: ZC1709 Ward 1 Report Number IDE Recommendation That Report IDE from Infrastructure, Development and Enterprise dated February 12, 2018 regarding a proposed Zoning By-law Amendment application (ZC1709) from GSP Group Inc. on behalf of 120 Huron GP Inc. to permit a residential development on the property municipally known as Huron Street and legally described as Part of Lots 1 & 2, Range 2, Division F, City of Guelph and Part 1 of 61R-4274, be received. Executive Summary Purpose of Report To provide planning information on an application requesting approval of a Zoning By-law amendment to permit the redevelopment of an existing four storey industrial building into an 86 unit apartment building and the development of 96 stacked and cluster townhouses. This report has been prepared in conjunction with the statutory public meeting for this application. Key Findings Key findings will be reported in the future Infrastructure, Development and Enterprise recommendation report to Council. Financial Implications Financial implications will be reported in the future Infrastructure, Development and Enterprise recommendation report to Council. Page 1 of 17

9 Report Background An application for a Zoning By-law amendment has been received for the site municipally known as Huron Street. The applicant has proposed the redevelopment of an existing four storey industrial building into an 86 unit apartment building together with the development of 96 stacked and cluster townhouses, for a total of 182 residential units. The application was received November 21, 2017 and deemed to be complete on December 20, The other buildings on the site, a brick powerhouse, and office/laboratory, and a shed were approved for demolition in November A tree permit was also issued in November 2017 to remove the trees from the southerly half of the site to permit the remediation of contaminated soils on site. Location The subject site is approximately 2.5 hectares in size and located on the southeast corner of the intersection of Huron Street and Alice Street (see ATT-1 and ATT-2). Surrounding land uses include: To the north, across Alice Street, a variety of single and semi-detached dwellings To the east, a spur line that connects to the Guelph Junction Railway To the south of the site is a parking lot for the Owens Corning industrial site on York Road; To the west, there are two small scale apartment buildings, a variety of single detached dwellings and a community garden; To the northwest, on the opposite corner of the intersection, is Sacred Heart Catholic Church. Official Plan Land Use Designations and Policies The Official Plan land use designation that applies to the subject property is Mixed Office/Commercial (See ATT-3). The Mixed Office/Commercial designation is intended to accommodate a variety of freestanding small-scale commercial, office, residential or mixed use buildings. Further details of this designation are included in ATT-3. Existing Zoning The subject property is currently zoned B.4-1 (Specialized Industrial) Zone in the City of Guelph s Zoning By-Law (1995) Details of the existing zoning are included in ATT-4. Description of Proposed Zoning By-law Amendment The applicant is requesting to rezone the subject lands from the B.4-1 (Specialized Industrial) Zone to a R.4A-?? (Specialized Apartment Residential) Zone with site specific regulations to permit the redevelopment of the existing industrial Page 2 of 17

10 building into an 86 unit apartment building together with the development of 96 stacked and cluster townhouses. The following specialized zoning regulations are being requested through the proposed Zoning By-law amendment application: to permit stacked and cluster townhouse units; to permit a minimum front yard of 2 metres where 6 metres is required; to permit a minimum 4.5 metre exterior side yard where 6 metres is required; to permit a minimum rear yard of 5 metres where 7.5 metres is required; to permit a minimum common amenity area of 1800 square metres where 3840 square metres is required. The proposed zoning details are further provided in ATT-5. Proposed Development The proposed development consists of the redevelopment of the existing four storey industrial building along Alice Street into an apartment building containing 86 residential units. The other buildings on the site, a brick powerhouse, and office/laboratory, and a shed are planned to be demolished and were approved for demolition in November South of the apartment building, a mix of 96 stacked and cluster townhouses are proposed, with stacked townhouses along Huron Street on the westerly side of the site and standard cluster townhouses on the easterly interior side of the site. In total, 182 residential units and 228 parking spaces are proposed. The applicant s conceptual development plan and proposed building elevations are shown in ATT-6. Supporting Documents The following reports and material have been submitted in support of this application: Planning Justification Report, prepared by GSP Group, dated November, 2017; Urban Design Brief, prepared by GSP Group, dated November, 2017; Cultural Heritage Resource Impact Assessment, prepared by CHC Ltd, dated August 22, 2017; Functional Servicing Report, Site Grading & Servicing Plan and Site Access & Traffic Control Plan, prepared by GM BluePlan, dated November 16, 2017; Stage 1-2 Archaeological Assessment, prepared by Detritus Consulting Ltd., dated October 31, 2017; Page 3 of 17

11 Transportation Impact Study, Transportation Demand Management and Parking Justification Report prepared by Paradigm Transportation Solutions Ltd, dated November, 2017 Environmental Noise Impact Study, prepared by GHD, dated November 20, Phase I Environmental Site Assessment, prepared by CRA, dated December, Site Plan, Building Elevations and Building Elevation Renderings, prepared by ABA Architects Inc., dated November 14, Site Survey, prepared by ACI Survey Consultants, dated May 16, Staff Review The review of this application will address the following issues: Evaluation of the proposal against the 2014 Provincial Policy Statement and Places to Grow: Growth Plan for the Greater Golden Horseshoe; Evaluation of the proposal s conformity with the Official Plan; Review of the proposed zoning and need for specialized regulations; Review of the proposed site and building design; Review of traffic, parking and servicing; and Address all comments and issues raised during the review of the application. Once the application is reviewed and all issues are addressed, a report from Infrastructure, Development and Enterprise with a recommendation will be considered at a future meeting of Council. Financial Implications Financial implications will be reported in the future staff recommendation report to Council. Consultations The Notice of Complete Application and Public Meeting was mailed on January 3, 2018 to local boards and agencies, City service areas and property owners within 120 metres of the subject lands and was also advertised in the Guelph Tribune on January 18, Notice of the application has also been provided by signage on the property. Corporate Administrative Plan This report supports the following goals and work plans of the Corporate Administrative Plan ( ): Page 4 of 17

12 Overarching Goals Service Excellence Service Area Operational Work Plans Our People- Building a great community together Attachments ATT-1 ATT-2 ATT-3 ATT-4 ATT-5 ATT-6 Location Map and 120m Circulation Orthophoto Official Plan Land Use Designations and Policies Existing Zoning Proposed Zoning and Details Conceptual Development Plan and Building Elevations Departmental Approval Not applicable. Report Author Katie Nasswetter Senior Development Planner Approved By Chris DeVriendt Manager of Development Planning Approved By Recommended By Todd Salter Scott Stewart, C.E.T. General Manager Deputy CAO Planning, Urban Design and Infrastructure, Development and Enterprise Building Services , ext , ext scott.stewart@guelph.ca todd.salter@guelph.ca Page 5 of 17

13 ATT-1 Location Map and 120m Circulation Page 6 of 17

14 ATT-2 Orthophoto Page 7 of 17

15 ATT-3 Official Plan Land Use Designations and Policies Page 8 of 17

16 ATT-3 (continued) Official Plan Land Use Policies Mixed Office/Commercial Objectives a) To allow for a variety of freestanding small-scale commercial, office, residential or mixed-use buildings. b) To ensure that a compatible transition in built-form is provided between uses in this designation and surrounding residential properties. c) To allow for a range of compatible business uses adjacent to residential areas. d) To promote the continued use, revitalization and intensification of these areas for a mix of uses. Policies 1. The Mixed Office/Commercial designation as identified on Schedule 2 defines areas where a variety of small-scale commercial, office and mixed-uses including residential may be permitted. 2. While a variety of commercial uses may be permitted by the Mixed Office/Commercial designation, office, convenience commercial, retail commercial and personal service uses that serve the needs of the surrounding neighbourhoods are specifically promoted. 3. Commercial buildings incorporating residential units, either above or behind the ground floor commercial space or freestanding residential buildings are encouraged. 4. The Mixed/Office Commercial designation located peripheral to Downtown includes a variety of small-scale commercial and office operations or mixed commercial-residential uses. This Plan promotes the continued use and revitalization of these distinctive areas. 5. New commercial, office or mixed-use development within the Mixed Office/Commercial designation will be subject to the following criteria: i) building design should have a street orientation, promote continuity in the streetscape and adhere to the Urban Design policies of this Plan; ii) building, property and ancillary structures are designed to be compatible with surrounding properties in terms of form, massing, appearance and orientation; Page 9 of 17

17 iii) iv) adequate parking, loading and access are provided; and adequate municipal services are provided. Permitted Uses 6. The following uses may be permitted within the Mixed Office/Commercial designation subject to the applicable provisions of this Plan: i) convenience commercial and small-scale retail commercial; ii) small-scale office; iii) personal service; and iv) detached, semi-detached, townhouses and apartments. Height and Density 7. The maximum height is four (4) storeys. 8. Residential development may be permitted to a maximum net density of 100 units per hectare. 9. Increased height and density may be permitted in accordance with the Height and Density Bonus policies of this Plan. Page 10 of 17

18 ATT-4 Existing Zoning Page 11 of 17

19 ATT-4 (continued) Existing Zoning and Details Page 12 of 17

20 ATT-5 Proposed Zoning and Details Page 13 of 17

21 ATT-5 (continued) Proposed Zoning and Details The applicant is proposing a specialized R.4A-?? (Residential Apartment) Zone. The following specialized zoning regulations are being requested through the proposed Zoning By-law amendment application: to permit stacked and cluster townhouse units; to permit a minimum front yard of 2 metres where 6 metres is required; to permit a minimum 4.5 metre exterior side yard where 6 metres is required; to permit a minimum rear yard of 5 metres where 7.5 metres is required; to permit a minimum common amenity area of 1800 square metres where 3840 square metres is required. Page 14 of 17

22 ATT-6 Conceptual Development Plan Page 15 of 17

23 ATT-6 (continued) Proposed Building Elevations Apartment Building Elevations Page 16 of 17

24 Townhouse Elevations Page 17 of 17

25 Hello, For the Feb 12 Meeting on the proposed condominium at Huron Street some comments. As a resident of Alice St, I encourage the committee and the City to consider the entry points to the property given the significant increase in residents to the area. Alice Street includes a school zone, has high pedestrian traffic, and is very narrow, and so I encourage you to ensure that the main entrance points to the property are on the south end of Huron in order to avoid additional congestion onto Alice Street. As a member of the community for 10 years I am excited about the new developments and seeing properties which have been eyesores become beautiful homes in our neighborhood. Thanks. Alex Barlow Business Development Executive Mentor Works Ltd.

26 February 12, 2018 City Council Meeting Downtown, Brownfield and Heritage Grant Performance Monitoring: and Potential CIP Review Directions Version 1.3 January 30,

27 Agenda Purpose of the Report: Background on Tax Increment Based Grant (TIBG) & TIBG Reserve 5 Year Performance Review of Downtown and Brownfield Redevelopment Community Improvement Plans (CIP) Draft Directions for update of CIPs and financial approach 2

28 Meeting Purpose To provide the background to the Downtown & Brownfield CIPs coming up for renewal. To provide background to TIBG Reserve which supports CIPs and Heritage Redevelopment Policy. To provide time for feedback on CIP update direction. 3

29 Program Summaries: Type: Purpose: Programs Available: Downtown Brownfield Heritage Community Improvement Plan (CIP) To stimulate private sector investment towards meeting Downtown Secondary Plan targets. Feasibility Study Façade Improvement Renovation Major Redevelopment (TIBG) CIP To incentivize the redevelopment of contaminated properties. Environmental Study Tax Assistance during remediation Remediation Assistance (TIBG) Council Policy To encourage the redevelopment of protected heritage properties. Scope: Urban Growth Centre City-wide City-wide Established: Major Amendment Renewal Required: Redevelopment of Ontario Heritage Act protected resources (TIBG) No fixed date 4

30 TIBG is approved Construction starts Project is complete Project is reassessed What is a Tax Increment Based Grant? Eg Downtown Major Grant: All Land Uses Supported Municipal Tax Value Post-development $600,000 Municipal Portion Tax Income Municipal Tax Value Pre-development $100,000 $500,000 Potential TIBG Value (total $5M) Taxes if no development occurred The payment is a grant, following the completion & reassessment of the project It takes about 4 years from approval to first payment All taxes are paid we pay the grant separately through the TIBG Reserve The grant is based on the City tax portion only TIBGs only work where the property pays taxes 5

31 TIBG Reserve Approach developed and approved in 2012 given the scale of the programs contemplated Need for tax rate stability & funding transparency $33M fund cap established ($17M BF, $12M DT, $4M Heritage) Peak Reserve contributions of $3.5M in 2021 running down to $0 in

32 TIBG Reserve Status Current Approved Commitments 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 - Original $33M Reserve Annual Payments Total Annual Contribution Program Awards This is what it looks like: Reserve build-up and payment profile shown Long term arc based on grants being 10 years long Most of the funding committed within the first two years 7

33 Brownfield Awards: Studies TIBGs The Brownfield CIP is citywide Over 400 sites originally estimated Sites tend to centre around older built-up areas, but not always As a groundwater-based community we want to encourage as many of these sites to be addressed as possible 8

34 The 2012 Downtown CIP Strategy: 1 st CIP Period TBD Small Scale programs launched 2010 Secondary Plan CVA = $1B+ Current CVA = ~$500M Momentum Building: Large Scale Programs Incentivise new housing units Planning Horizon: 3,000 new housing units 1,500 new jobs Prior to DSP & CIPs there had been no private development in downtown in 20 years Eligible costs relate to site challenges identified in studies and sector interviews: structured parking, off-site infrastructure, etc. All projects pay their DC s, Fees and Parkland contributions = city-wide equal treatment The long range goal is to transform assessment value through economic intensification NB. Graph represents Present Value Dollars 9

35 Downtown TIBG Projects: Each downtown site is unique and can be a mix of Heritage, Brownfield and Downtown eligibility DT H H DT BF/DT DT H BF/DT BF BF Downtown Community Improvement Plan Area BF/DT 10

36 Downtown CIP Delegated Program Activity Applications Received Applications Approved Applications Executed Executed Projects Application Value ($) Total CIP Grant Value ($) Leverage (Public$ to: Total$) Development Activity Supported Assessment Impact Feasibility Study Grants ( ) cancelled $40,248 $14,950 1 : 2.6 Studies N/A (1) Façade Improvement Grants ( ) cancelled $2,133,897 $627,934 1 : 3.4 Exterior Facades & Signage N/A (1) Minor Activation Grants ( ) cancelled $2,337,934 $443,800 1 : residential units 41,000 sqft of Commercial /Office space Average 61% assessment increase (12%/yr vs. 5% citywide) Budget Totals: $4,512,079 $1,086,684 1 : 4.2 (1) correlation of façade and study grants to individual MPAC assessment change is not identifiable against the general growth trend 11

37 Downtown CIP Delegated Programs How d we do? 10 Wyndham Van Gogh s Ear 31 Gordon Red Lion Inn 12

38 Downtown CIP Delegated Programs How d we do? Petrie Building 31 Gordon 10C/Ackers 13

39 Downtown + Brownfield CIPs & Heritage RETURN ON INVESTMENT once fully built Results of the $32.5M TIBG Reserve funded projects: $316M $293M $3.4M ,000m2 4 29ha Construction Value leveraged (private 10 times larger) MPAC Assessment Value created (9 times existing) City Tax Income created (65% more compared to 2012) Residential units supported (exceeded target!) Commercial/Office space developed (331 jobs estimated) Designated sites redeveloped (10% added to downtown) Brownfields remediated (7 sites) 14

40 Increase in Taxes from TIBG projects once all are complete, $3.2M annually Macdonell Morris 5 Gordon 40 Wellington 150 Wellington 160 MacDonell 180 Gordon 72 York Petrie 5 Arthur Gummer 12 projects supported by $32.5M of TIBGs across three programs yields $3.2M increase in municipal taxes every year includes completed project actuals and estimates for those underway 15

41 Billions Millions Downtown assessment growth is now trending steeper than City-wide: $27 $25 $23 Phased-in Assessment Value, Downtown now trending steeper than City-wide $580 $530 $21 $480 $19 $17 $15 $13 Façade and Study programs Minor and Major programs $430 $380 $330 City-wide UGC Downtown $ $280 16

42 Draft Directions for Discussion Address financial capacity Address CIP administrative issues Review and recalibrate Downtown strategy 17

43 Address financial capacity: 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , TIBG Reserve Direction Original $33M Reserve Sustained Reserve Capacity Maintain Peak Contribution (with budgetary indexing) Total Annual Contribution Original CIP Awards Reopen programs with new priority-setting award basis 2018 onwards Reconfiguring a one-time 5 year program to a long-term sustainable redevelopment fund Long-term sustainable funding = Better Strategic Investment program design to support long-term strategic projects that will most benefit the City reliability and stability in the program better supports the development community longer time horizon offers more flexibility in program design to meet changing needs Financial capacity opens up beyond 2021 to allow new application process to start in

44 Address Administrative Issues: Regularize Tax Increment Current programs offer different number of years and formulas available to calibrate value towards eligible costs. Create consistency in the programs. This avoids conflicts created by current programs Add DC Deferral Option Allow TIBG programs to offer deferral and payment of DCs with interest through the tax-increment grant. This is a major improvement! Priority Setting & Flexibility Consider framework for awarding highest value projects At the same time be open to opportunities and not closing priority programs due to lack of Reserve 19

45 PRIORITY MODEL ISSUES: Considering hard partitions between programs, with Brownfield in particular being more flexible to opportunities, and Downtown working within a cap that awards best projects that address established priorities With the sustained reserve model we have the ability to more flexibly react to applications We want to more regularly engage Council in the oversight of this significant program The programs need to enable clear decision making and clear communication with the development community 20

46 Downtown Recalibration: DOWNTOWN CIP: Market conditions have changed in Downtown over the 5 years Recommendations need to be data driven towards the most effective investment strategy Delegated Programs (Study, Façade, Minor) Maintain and update the administrative details Separate funding for Study Grants to be more proactive Prevent one large project swamping the competition Build case for more renovation funding over coming budgets 21 21

47 DOWNTOWN CIP, cont : Major Activation Grant (TIBG) Focus on NON-RESIDENTIAL: Jobs and Innovation Metrolinx investments coming (jobs support Major Transit Hub) Non-residential DCs are falling for of projections Reduce incentive for RESIDENTIAL 2031 Growth Target remains a challenge Retest market viability measurements against growth of market Program always intended to phase out over time with improved market conditions. 22

48 Next Steps: Dates March 19, 2018 Council Planning May 14, 2018 Council Planning Report Public Meeting under the Planning Act Recommendations presented on program changes Decision Meeting and Bylaw Bringing final versions of CIPs based on comment period Financial Implications supported Adopting enabling bylaws 23

49 Questions 24

50 Staff Report To Service Area City Council Infrastructure, Development and Enterprise Services Date Monday, February 12, 2018 Subject Report Number Downtown, Brownfield and Heritage Grant Performance Monitoring: and Potential CIP Review Directions IDE Recommendation That Council receive report # IDE titled Downtown, Brownfield and Heritage Grant Performance Monitoring: and Potential CIP Review Directions. Executive Summary Purpose of Report To report on the performance of the Brownfield Redevelopment CIP, Downtown Guelph CIP and Heritage Redevelopment Reserve Program. To report on the City s three Tax Increment Based Grant (TIBG) Programs: the Major Activation Grant under the Downtown Guelph Community Improvement Plan (CIP); the TIBG program under the Brownfield redevelopment CIP; and the Heritage Redevelopment Policy. To present draft directions for potential revisions to the Downtown CIP and the Brownfield Redevelopment CIP; and the City s financial approach to TIBGs To receive Council feedback on the draft directions. There are no decisions required at this meeting. The next step in the process will be to present proposed revisions to the CIPs at a Statutory Public Meeting in accordance with the requirements of the Planning Act in March. Key Findings In 2012, the City took a significant step in the coordinated establishment of improved investment programs through the Downtown and Brownfield CIPs. The Heritage Redevelopment Reserve was established in 2007 for the same purpose. These major programs were supported by the establishment of a Tax Increment Based Grant Reserve for each program. In 2017, these three TIBG reserves Page 1 of 10

51 o o o o o o were consolidated into one Redevelopment Reserve Fund for ease of managing the administrative process. The programs were all designed to incent projects that would create significant tax assessment increases in areas deemed a high priority in the City. The corresponding property tax levy could be used to offset eligible costs recognized under the programs. The TIBG program established in 2012 had a total funding commitment of $33M. Detailed reports for each of the CIPs are attached to this report, however the highlights are as follows: The $33M City investment in TIBGs has leveraged a ten-fold private investment in strategic projects When fully built out approved projects will increase city tax revenue by approximately $3.4 million annually. The projects approved to date, when fully built-out, will create approximately 827 housing units and 16,000 m 2 of commercial and accessory office space. Four cultural heritage resources are being rehabilitated and protected through adaptive re-use and designation. 29 ha of contaminated land has been remediated along with the related reduction in threats to the City s drinking water. The $33M funding envelope has been substantially committed since 2014, and as a result, no new major projects have used the program in the past four years. Revisions to the Downtown CIP are being considered to reflect the evolution of the downtown real estate market since 2012 and to continue to align public investments with city building and economic development CIP objectives. Financial Implications The financial model approved by Council is to fund the original $33M commitment to the TIBG program through an incremental annual build-up of the base budget for contributions to the TIBG Reserve Fund. Each year for ten years the funding would increase to a peak amount of $3.5M in 2021 at which point the base budget would then begin to decline back to zero in This funding strategy was in place to match the TIBG program requirements and commitments of $33M. The proposed revisions to the CIP programs hinges on moving the financial commitment for redevelopment from a one-time TIBG program to a long-term sustainable redevelopment incentive program. Staff are recommending that future funding for TIBG programs be modeled on the financial assumption that the base budget amount of $3.5M will continue in perpetuity until such time that financial incentives are considered not required for redevelopment in the City. Further, staff are recommending that this amount be indexed annually effective 2022 to keep the redevelopment program competitive with the tax rates in effect in future years. For context, by maintaining the base budget redevelopment contribution at the 2021 levels a total of $25M would be available for renewed TIBG programs between the years of Sustained financial capacity to award beyond 2021 would enable the TIBG supported programs to be re-opened and would allow new projects to start as early as Page 2 of 10

52 Given the transformative performance results experienced in the first five year TIBG program, staff believes that the financial return on the City s investment supports the renewed long-term financial model. The benefits of a long-term financial approach for redevelopment incentives are realized by both the development community and the City. Program stability for the development community reinforces better and more strategic development projects as it removes the unwarranted sense of urgency to apply as quickly as possible before the program funds are depleted. Further it enables the City to be more flexible and agile to respond to development opportunities as they arise knowing that the time horizon is not fixed to five years. Report Downtown CIP Background Developed over the same period as the Downtown Secondary Plan consultations ( ), the Downtown Guelph Community Improvement Plan focus is on incentives that spur private sector investment in Downtown Guelph, an area of the city that had seen little private development investment over the preceding 20 years. The small scale programs were initiated in 2010, including the Feasibility Study Grant and the Façade Improvement Grants. The larger scale programs known as the renovation grants (Minor Downtown Activation) and major grants (Major Downtown Activation) were approved through amendment in Community Improvement Plans exist in many of Guelph s competitor municipalities, particularly around the challenges of core area investments in mid-sized cities which continue to grow through greenfield expansion areas. The cost and complexity of urban renovation projects means that projects are generally not competitive compared to suburban development forms. The CIP contains a range of scale of programs to support initiatives that would both renovate existing buildings as well as incent major new projects. The goal is to: a) improve the downtown by encouraging existing businesses and owners to re-invest as well as land new projects and enterprises and b) to build a new economic environment in an area that has had little private investment and lagging assessment growth as a result. A policy developed early on was that while the CIP tool does allow municipalities to incent private developments in one geographic area distinct from others, there would remain a level playing field in terms of requiring all City fees and development charges (DCs) to be paid. The Downtown CIP was also established as a response to the provincial growth planning directions. The Downtown Secondary Plan outlines the vision of much more intensified land use in Downtown Guelph, and the CIP has been a key tool to shift the momentum and spur the transformational shift contemplated in the plans. Page 3 of 10

53 Brownfield CIP Background Brownfields are abandoned, idled, or underused properties where expansion or redevelopment is complicated by real or perceived environmental contamination as a result of historical land use practices. These sites can have significant environmental, economic and social impacts on the community. However, remediation and redevelopment can result in improvements to soil and groundwater conditions, lead to job retention and creation, improve public safety and security and allow for efficient use of existing hard and soft services. The purpose of a Brownfield Redevelopment Community Improvement Plan (CIP) is to provide financial incentives that partially offset the cost of investigation and remediation of sites with redevelopment potential and stimulate private investment in brownfields. The City s first Brownfield Redevelopment CIP was approved in 2004 and established the following financial incentives: -Environmental Study Grant (ESG) program -Tax Increment Based Grant (TIBG) program -Tax Assistance (TA) programs A review beginning in 2010 resulted in a new CIP that was adopted in The 2012 CIP added detail and clarification to the existing programs but did not change them fundamentally. The CIP includes provisions to monitor the outcomes of the programs and to review and update the CIP as necessary every five years. Heritage Redevelopment Reserve Program Background While Guelph had, on an ad hoc basis, supported early heritage projects (the Mill Lofts and Stewart Mill) through the use of tax increment based grants, the policy was formalized in 2007 following the Gummer Building fire and subsequent support of that project as the first approved under the Heritage Redevelopment Reserve Policy (HRR). The HRR is possible through broad provisions under the Ontario Heritage Act allowing municipalities to grant or loan funds toward the conservation of designated heritage resources. The HRR uses the TIBG approach, looking at the pre- and post- development assessment increases created by a project to support the conservation and restoration of elements related to the designation bylaw. Sites that have been supported through this policy also enter into a Heritage Conservation Easement Agreement to establish appropriate controls over the longterm protection of elements that have had public investment support. Tax Increment Based Grant Mechanism The Major Activation Grant program in Downtown CIP, the Brownfield CIP s TIBG program, and the HRR program all rely on the tax increment based grant mechanism. TIBGs use the increase in City taxes (tax increment) generated by an increase in property assessment as a result of the renovation to offset eligible costs Page 4 of 10

54 related to the project. Each of the three programs outlines different eligible costs connected to the goals of the program. The grant is the lower of the eligible costs or the tax increment for 10 years. TIBG programs are popular among municipalities because of their low risk. There is no grant funding paid until the redevelopment project is complete, the property is reassessed, and increased taxes have actually been collected. In 2012, Council approved a CAFES Report #12-01 that set the financial and accounting parameters for the three TIBG programs with a $33 million funding envelope. This envelope was largely committed by 2014 and the City has not been able to award large TIBGs since that time. TIBG Programs Performance Overall, the CIPs have been successful in incenting private development that has remediated and redeveloped brownfields, intensified downtown, conserved cultural heritage resources. The CIPs have brought about long-term fiscal, economic, social and environmental benefits as part of these incented projects. The TIBG programs are the highest value programs within the CIP and the HRR programs. The City has awarded 17 TIBGs applying to 11 sites with estimated grants valued at $32.5 million Program # Projects Grant Value Downtown 7 $19.4 M Brownfield 6 $10.3 M Heritage 3 $2.8 M Total 11* $32.5 M** *Does not sum because three projects have multiple grants. **The remaining $500k from the original $33M envelope is budgeted for Brownfield Environmental Study Grants. The City investments are estimated to support (both existing and projected): $316 million in construction value (9X leverage) $3.4 million in increased yearly City tax revenue 827 residential units created 16,000 m 2 commercial floor area built or rehabilitated $293 million in increased property assessment 29 ha of contaminated land remediated (7 sites) 331 estimated permanent jobs created Additional details on the Downtown and Brownfield Redevelopment CIPs performance, including that of the lower value CIP programs, are included in Attachments 1 and 2 respectively. CIP and TIBG Funding Review Both CIPs, approved in 2012 are due to be reviewed in Reviews have been initiated and include lessons from administering the CIPs over the past five years, Page 5 of 10

55 reviews of CIP performance data included in Attachments 1 and 2, interviews with program participants, City staff, and other municipal staff. Concurrently, staff are reviewing the funding mechanism for TIBGs with the goal of offering these programs again. The Heritage Redevelopment Reserve Policy is not a CIP and is not under review at this time, although it is affected by the TIBG funding discussion. DRAFT FUTURE DIRECTIONS 1. Long Term Sustainable Funding Approach The financial modeling approved to fund the original $33M commitment to the TIBG program called for an incremental annual build-up from 2012 to 2021 of the base budget for contributions to the TIBG Reserve Fund to a peak amount of $3.5M at which point the base budget would then begin to decline back to zero in 2027 (see the red line on Chart 1 below). The funding strategy was originally planned over a ten-year period but has extended to a 15-year timeline to match the expected grant expenditures; the estimated base budget peak year of $3.5M will be reached in Staff are recommending that funding for TIBG programs be modeled on the financial assumption that the base budget amount of $3.5M will continue in perpetuity and subject to budgetary indexing until such time that financial incentives are considered not required for redevelopment in the City (see blue line in Chart 1 below). Further, staff are recommending that this amount be indexed annually effective 2022 to keep the redevelopment program competitive with the tax rates in effect in future years. $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Chart 1 - TIBG Reserve Fund Base Budget Strategy Proposed Current Reconfiguring the one-time five year program to a long-term sustainable redevelopment model better supports long-term strategic projects that will most benefit the city. Furthermore, reliability and stability in the program better supports the development community with a longer time horizon offering more flexibility in program design to meet changing needs. Sustained financial capacity beyond 2021 would enable the TIBG supported programs to be re-opened and would allow new grants to start to be committed in Page 6 of 10

56 2. Distinct Treatment of Downtown, Brownfield and Heritage TIBGs In 2012, the programs were opened up on a first come, first served basis. And while the $33M budget was established through the combined estimates of uptake, with each program identified and allocated, this structure was modified as opportunity projects came to be identified through applications. This meant that the initial allocations had to be adjusted between programs with the result that Downtown projects took more of the cap than initially projected. The reallocation led to tension and confusion amongst the public and developers. Staff would like to better address this dynamic in future administration of the programs. Staff will suggest distinct funding envelopes for each of the three programs. Funding Allocation 2012 Projection (in millions) 2018 Actuals (in millions) Potential Future Funding Parameters Downtown CIP $12 $19 Within fixed budget Brownfield CIP $16.5 $10.5 Flexible Heritage $4 $3 TOTAL $32.5 $32.5 Whereas the Downtown TIBG is premised as a discrete program with 5-year program iterations, and used to incent specific redevelopment goals, the Brownfield program does not have the same discrete 5-year focus and is viewed as open to address ongoing community benefits of addressing site contamination issues in the city. That is, while remediation and redevelopment of brownfield sites results in increased tax revenue from previously under-utilized or abandoned properties, the fundamental benefit is how the program mitigates potential risk to groundwater resources, reduces risks to human health and the environment, and enhances the City s social well-being. Accordingly, additional flexibility is proposed for the Brownfield TIBGs that would enable the City to support valuable projects on a continuous basis within certain financial parameters. TIBGs would continue to be reviewed by staff and awarded on a case-by-case basis and recommended for approval by Council. Staff suggest that Downtown grants be evaluated in a competitive framework such that grants are allocated to the best projects within a specific annual envelope. Staff are considering an annual call for proposals with projects to be evaluated against clear evaluation criteria and then brought to Council for approval. Page 7 of 10

57 3. Review of Downtown CIP Targets and Emphasis Given the investment environment in 2012, the eligibility requirements for the first tranche of Downtown TIBG funding were wide open all types of land uses were supported. The Downtown Secondary Plan places a significant emphasis on creating new downtown residential development, and as there had been no privately developed residential projects over the previous two decades, these were seen as equally important to other development types such as employment or commercial projects. With the success of the first five years in the residential market, the recalibration of efforts towards employment is under consideration. While there have been smaller successes, there has not been significant new office space created in downtown as yet (the majority of the 16,000 m 2 of commercial supported by CIPs was retail and service space). And, with recent announcements such as The Co-operator s future relocation out of the downtown, this sector, as well as the retail sector, is much less predictable despite ongoing and future public investments in transit, parking and the rail corridor. Although value of downtown residential real estate has increased dramatically since 2012, development costs have increased as well. Development industry stakeholder interviews as well as independently commissioned research shows that there is still shortfall in market values to make downtown residential projects truly viable. Accordingly, staff are considering a reduction or phase out to grant amounts for residential development but sustaining the current scale of the program for commercial and office development. 4. Late payments of Development Charges A key insight from stakeholder interviews, and the most fundamental critique of the TIBG mechanism, is how late the benefits/payments come in the project s development timeline. Grants earlier in the timeline would be more impactful to the proponents, per City dollar invested. One potential revision under consideration is allowing TIBG grant recipients under all three programs to have all or a part of their Development Charges (DCs) deferred up to the amount of eligible costs within the grant programs. DCs would be recovered with interest through the TIBG payments. 5. Brownfield Program Refinements Staff are considering amending the Environmental Study Grant program to allow greater flexibility in how applicants can use the $30,000 per property maximum grant. Other minor administrative changes will be considered. Next Steps Revisions to CIPs follow the same Planning Act process as Official Plan amendments. Subject to Council feedback, the next step will be to formally present Page 8 of 10

58 proposed revisions at a statutory public meeting of Council in March, and for a decision in May. Concurrent with the recommended approval of CIP revisions in May, the recommended sustainable TIBG funding model will be presented to Council for endorsement. Financial Implications The financial modeling approved to fund the original $33M commitment to the TIBG program called for an incremental annual build-up of the base budget for contributions to the TIBG Reserve Fund to a peak amount of $3.5M at which point the base budget would then begin to decline back to zero. The funding strategy was originally planned over a ten-year period but has been stretched to fifteen years to match the TIBG program, it s estimated that this base budget peak year will be reached in The proposed revisions to the CIP programs hinges on moving the financial commitment for redevelopment from a one-time TIBG program to a long-term sustainable redevelopment incentive program. Staff are recommending that funding for TIBG programs be modeled on the financial assumption that the base budget amount of $3.5M (to be reached in 2021) will continue in perpetuity until such time that financial incentives are considered not required for redevelopment in the City. Further, staff are recommending that this amount be indexed annually effective 2022 to keep the redevelopment program competitive with the tax rates in effect in future years. For context, by maintaining the base budget redevelopment contribution at the 2021 levels, a total of $25M would be available for renewed TIBG programs between the years of Sustained financial capacity to award beyond 2021 would enable the TIBG supported programs to be re-opened and would allow new projects to start as early as Consultations In support of the Brownfield CIP review, key stakeholders who have had direct experience with the programs including City staff and program applicants were interviewed. Six interviews were conducted and two s were received. Downtown stakeholders were interviewed and an online survey was undertaken, both for existing applicants and the downtown business community as a whole. The key stakeholders have been informed of this report coming to Council and will be informed of further meetings of Council. Corporate Administrative Plan Overarching Goals Innovation Financial Stability Page 9 of 10

59 Service Area Operational Work Plans Our Resources - A solid foundation for a growing city Attachments ATT-1 Downtown CIP Performance Monitoring ATT-2 Brownfield Redevelopment CIP Performance Monitoring Departmental Approval Tara Baker CPA, CA City Treasurer, General Manager of Finance Report Author Tim Donegani Policy Planner Report Author Ian Panabaker Corporate Manager, Downtown Renewal Approved By Approved By Peter Cartwright, PLE, RPP, MCIP Todd Salter General Manager, Business General Manager Development and Enterprise Planning, Urban Design and Building ext Services peter.cartwright@guelph.ca (519) ext todd.salter@guelph.ca Recommended By: Scott Stewart, C.E.T. Deputy CAO Infrastructure, Development and Enterprise ext scott.stewart@guelph.ca Page 10 of 10

60 Downtown Guelph Community Improvement Plan (CIP) Performance Report Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Purpose of the Report: This report provides reporting on overall performance of the Downtown Guelph CIP programs to date. Note: Concurrent to the release of this report, an interactive map has been developed and is now available online at: Guelph.ca/downtownbusiness. The map illustrates all the program awards, grant details and locations within the downtown in a searchable format. Background: The Downtown Guelph CIP had the following broad purpose as adopted in 2010 and carried forward in the major amendment in 2012: Downtown Guelph CIP, 2012: 1.1 Purpose The purpose of this CIP is to revitalize and enhance the Downtown as a focal area for public and private investment. The CIP provides City Council with broader authority to encourage and implement public and private investment in the Downtown. The Downtown Guelph CIP focuses on delivering municipal incentive programs to support private sector investment in the form of façade improvement, feasibility study grants, and larger scale renovation and redevelopment programs called the minor and major downtown activation grants. Programs Overview: The first three programs (Feasibility Study Grants, Façade Improvement Grants and Minor Activation Grants) are funded through a Grants line in the BDE Operating Budget. Downtown Renewal staff have Delegated Authority to administer and award these grants, and report back annually on the programs. These programs are based on the cost-sharing principles. The Study and Façade programs provide funding to a maximum of 50% public cost-share with limits on the City contribution. The Minor Activation program is a maximum 30% contribution by the City up to $120,000 per address. Grants are paid following the completion of the work. The Major Activation Grants are tax-increment based incentives that are funded through the Tax Increment Based Grant (TIBG) Reserve shared by the Brownfield CIP and Heritage Redevelopment Reserve Policy. These grants, because of their scale, remain as Council approvals. They also work on the basis of grant Downtown Guelph CIP Performance Page 1 of 14 V 1.1 January 30, 2018

61 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 payments not being made until the work is complete and reassessed. Figure 1 illustrates how the TIBG grants work. Figure 1: Tax Increment Based Grants (TIBG) Model (City of Guelph, CAFES Presentation, ) Projects are committed to years in advance of the grant payment Projects need to be approved development before committing funding The TIBG is based on the City-portion of property taxes only. All other tax benefits from the projects flow as usual upon completion of the project. Both the Minor and Major Activation Grants target, at different scales, the redevelopment of vacant or underutilised sites that would explicitly add new assessment value as well as other public or economic activation benefits to the Urban Growth Centre. Timeline & Program Overlaps: The Downtown CIP was introduced in 2010 with the small programs and then underwent a major amendment in 2012 to update and install the renovation and major redevelopment programs. Each program was run with a five year window: Feasibility Study and Façade programs only 2012 Amendment No. 1 adds Minor and Major Activation Programs All programs active Minor and Major Activation Programs only (though the Major program was unavailable) 2017 Since the end of 2016 all programs have lapsed Downtown Guelph CIP Performance Page 2 of 14 V 1.1 January 30, 2018

62 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Program Funding: The Operating Budget contributions to the CIP to offer the Study, Façade Improvement and Minor Activation Grants were as follows: Budget Year 2010 $140, $160, Major Amendment to CIP $260, $130, $130, $130, $130,000 TOTAL: $1,080, was the only year the Downtown CIP program was funded at the recommended level based on the scale of the programs being added in Amendment No. 1. The operating budget was halved in 2013 and never restored. This led to a large number of Minor Activation applications, which tended to be larger grant amounts, not being able to be supported due to lack of funds. The TIBG Reserve limit which supports the Major Activation Grants was reached after two years in These grants within the CIP, with the exception of two heritage projects through the Heritage Redevelopment policy, have not been open to applications since Figure 2: Illustration of projected role of Downtown CIP / TIBGs in creating a renewed investment environment in Downtown Guelph (City of Guelph, CAFES Presentation, ) The CIP was seen as catalytic to creating new investment momentum The provisional target was for new residential units over 5 years Downtown Guelph CIP Performance Page 3 of 14 V 1.1 January 30, 2018

63 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Figure 2. illustrates the concept behind creating the Downtown CIP, which was based on recognizing the need to incent the major market shift that the Downtown Secondary Plan implied in its growth vision. This illustration was part of the original presentation materials used to achieve Council support for the TIBG financial programs. The basis for investing in the transformational change to downtown was: That there had been no substantial private redevelopment in the downtown in the past 20 years. That looking ahead to 2031, in order to achieve the major growth targets and realize their implications to change the CVA (Current Value Assessment) of the area, there would be a need to stimulate economic conditions. That reaching the long-term goals implies at least a doubling of the CVA of the planning area, which is a direct Return on Investment for the City through the corresponding property tax levies. That the 5 year windows on the CIP allowed for evaluation and recalibration of the incentive tools based on market uptake, updated planning inputs, if any, and community feedback. Downtown CIP Administration Study, Façade Improvement and Minor Activation Grants: The delegated programs were run by the Downtown Renewal Office as an annual application call, based on the limited funding available. A cross-departmental team was established along with consistent application formats, rating criteria and weighting based on Downtown Secondary Plan and Downtown Public and Private Realm Plan objectives. The annual call was widely publicized and parties indicating interest were supported in developing their applications and creating complete submissions. Pre-consultations were strongly recommended to improve application quality and consistent submissions for evaluation. Typically the application process was open for 6-8 weeks. All applicants were notified of the outcomes and Council was provided an annual Information Report on the activities. Major Activation Grants: These grants were also publicized and listed on guelph.ca. Each application is a custom recommendation that is negotiated and taken to Council for approval. Given the size of the commitments, these were not delegated to staff for award. Many of the projects were combined with other TIBG programs (Heritage or Brownfield) and the initial funding allocations between the programs were adjusted over the course to reflect the activity levels during their being available. Downtown Guelph CIP Performance Page 4 of 14 V 1.1 January 30, 2018

64 Attachment 1 IDE Staff Report IDE-18-01, February 12, Performance of the CIP: Applications Received Applications Approved Summary of Downtown CIP Activity Applications Executed Executed Projects Application Value ($) Total CIP Grant Value ($) Leverage (Public$ to: Total$) Development Activity Supported Assessment Impact Feasibility Study Grants ( ) cancelled $40,248 $14,950 1 : 2.6 (Minimum target 1:2) Studies N/A (1) Façade Improvement Grants ( ) cancelled $2,133,897 $627,934 1 : 3.4 (Minimum target 1:2) Exterior Facades & Signage N/A (1) Minor Activation Grants ( ) cancelled $2,337,934 $443,800 1 : 5.3 (Minimum target 1:3.3) 0 residential units 41,000 sqft of Commercial /Office space Average 61% assessment increase (12%/yr vs. 5% city-wide) Budget Totals: $4,512,079 $1,086,684 1 : 4.2 Major Activation Grants (TIBGs) ( ) $235,500,000 $19,351,163 (2) Average Grant: $3,230,841 1 : 12.2 (Minimum target 1:3.3) 750 residential units (target was ) Grants represent $1,938,504 in new annual City taxes 27,650 sqft of Commercial /Office space (3) (1) Correlation of façade and study grants to individual MPAC assessment change is not identifiable against the general growth trend (2) This represents the Downtown Major Activation Grants value only. (3) These results represent future full build-out of projects, some of which are still under development Over the course of the 2010 initial offerings and the 2012 Major Amendment, the CIP had a high level of interest and application activity: All programs exceeded their minimum targets for leverage. The Major Activation Grants exceeded their minimum targets by a significant margin. Consistently there was not enough funding for awarding all eligible and highscoring projects. Because of limited funds, annual applications, which were adjudicated by a cross-discipline staff team, created a perception of winners and losers. Many of the sites utilised a combination of the programs. Downtown Guelph CIP Performance Page 5 of 14 V 1.1 January 30, 2018

65 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 PROGRAM DISCUSSIONS and REPRESENTATIVE PROJECTS Note: for a complete searchable listing and map of the awarded applications, please see Guelph.ca/downtownbusiness. Feasibility Study Grant: This program had the least uptake over the period. Since it was also part of the annual application competition process, the timing and alignment to opportunities was not optimal. Of the three awarded grants, only one project took the report findings and undertook the project. Staff are considering isolating a small funding stream to allow this program to operate outside of the annual competition call to avoid it competing against the larger programs. Example: Feasibility Study Grant: 31 Gordon Street Before: After: Description: Study to review potential restoration of significant heritage resource (Red Lion Inn) The Feasibility Study led to the subsequent restoration project that included a successful Façade Improvement Grant application. Fire-damaged vinyl siding covering historic brick, stone and wood façade. Pre-construction condition: Grants: Feasibility Study (2013) - $5,000 Façade Improvement (2014) - $10,000 Additional Public 2016 ACO Guelph-Wellington Gordon Couling Award winner Benefits: Downtown Guelph CIP Performance Page 6 of 14 V 1.1 January 30, 2018

66 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Façade Improvement Grants: By far the most active category of the CIP, the Façade Improvement Grant supported a wide range of projects, from minor signage upgrades to full façade restorations. Projects were selected on level of impact as well as improvement and activation of the public realm. There continues to be interest in the program as new tenants and owners continue to consider building upgrades within the Urban Growth Centre. Example: Façade Improvement Grant: 10 Wyndham Street North -- Van Gogh s Ear Before: After: Description: Complete exterior renovation of 19 th Century corner heritage property. Renovation included recladding and glazing of ground floor commercial space. Painted brick with applied 1960s angel stone commercial façade at grade. Pre-construction condition: Grants: Façade Improvement Grant - $30,000 (2010) (corner property, upper and lower facades, more than one commercial unit) Additional Public Benefits: Coordinated with conversion of ground floor from an evening-only tavern to full daytime restaurant and outdoor patio. Downtown Guelph CIP Performance Page 7 of 14 V 1.1 January 30, 2018

67 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Minor Activation Grants: The Minor Activation Grants came on in 2012 and were initially slow in uptake. There was a period for owners/tenants to understand the program and what was eligible. That said, by the end of the five years, there were over 27 applications and some significant projects were able to be supported through the program. One of the major program issues was the wide range of application costs (from $1 to $120,000) which meant high-scoring/high-ranking large projects could squeeze out eligible smaller projects. Staff want to improve the program design to address this issue in future iterations. Example: Minor Activation: 15 & 19 Wyndham Street North Petrie Building Before: After: Description: Pre-construction condition: Grants: Additional Public Benefits: Renovation and Restoration of the nationally significant pressed-metal Petrie Building and adjacent 19 th C property. Ground Floor commercial activities with vacant upper storeys (abandoned for decades) Minor Activation Grant(s) - $240,000 ($120,000 per address) (2015) Heritage Redevelopment Reserve - $91,000, upset limit Restored and rehabilitated nationally identified Building at Risk and iconic local heritage building. Upper storeys, approximately 15,000sqft previously vacant are now populated with new businesses and office tenants with modern accessible facilities (not including existing ground floors). Downtown Guelph CIP Performance Page 8 of 14 V 1.1 January 30, 2018

68 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Example: Minor Activation: 42 Carden Street Acker s / 10C Before: After: Description: Renovation of a long-standing furniture store/warehouse into a Community Co-working Hub. Pre-construction Ground Floor commercial activity with upper storeys used condition: for warehousing. Grants: Minor Activation Grant - $110,000 (2016) Additional Public Benefits: Activation of building with innovation and Guelph-centred community development program. The community hub will provide additional meeting space and support to the non-for-profit sectors in Guelph. Project raised considerable funding through an innovative Community Bond. Created over 12,000sqft of newly accessible office space downtown (not including existing ground floor) Downtown Guelph CIP Performance Page 9 of 14 V 1.1 January 30, 2018

69 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Major Activation Grants: The Major Activation Grants were associated with the larger scale redevelopment projects occurring in the Downtown Secondary Plan area. The program was designed to address unique challenges in developing downtown in terms of the cost of providing structured parking and dealing with significant local servicing upgrades. The projects contribute on a level playing field all Development Charges, Parkland Fees and other municipal costs the same as developments outside of the CIP. The awarded projects were primarily residential, which was one of the key targets for the program. Example: Major Activation: 160 Macdonell -- RiverHouse Description: Pre-construction condition: Grants: Assessment Impact Additional Public Benefits: 130 unit residential condominium with ground floor commercial space of 3,500 sqft. Surface parking with small commercial building (former Coop Daycare) Combined CIP project: Brownfield CIP - $1,750,700, upset limit Downtown CIP - $3,122,553, upset limit Total $4,873,253 63X increase estimated from pre-construction levels This was one of the first projects to establish a new market for residential ownership within the Downtown. Downtown Guelph CIP Performance Page 10 of 14 V 1.1 January 30, 2018

70 Attachment 1 IDE Staff Report IDE-18-01, February 12, 2018 Example: Major Activation: 40 Wellington Shops in the Park Description: Pre-construction condition: Grants Awarded: Tax Impact Additional Public Benefits: ~37,000sqft commercial plaza Fenced, derelict industrial lot (vacant for over 20 years) Brownfield CIP - $865,395, upset limit Downtown CIP - $1,111,462, upset limit Total $1,976, X increase Project included improvements to Royal City Park, including the ball diamond renovation, and the creation of the adjacent additional public parking. The project transformed a long-standing derelict corner into a new gateway into the Urban Growth Centre. Impact of the Downtown Guelph CIP Current Assessment Value (CVA) Analysis A basic measure of the impact of the programs is to track the overall land value performance trends of the Urban Growth Centre against Guelph as a whole, since the Downtown CIP was created to address the investment environment of the area and create conditions for the core to become an active economic development zone for the city, assessment growth should be reflected. The following graph (Figure 3) is based on GIS output of MPAC assessment on the Urban Growth Centre boundary in comparison with the city as a whole. The figure shows: Downtown Guelph CIP Performance Page 11 of 14 V 1.1 January 30, 2018