Transforming Hamilton s Waterfront Presented By: Chris Phillips
Hamilton By the Numbers Current and Projected Population 2015 520,000 2031 660,000 10 th largest in Canada 5 th in Ontario
Hamilton by the Numbers
Hamilton by the Numbers
Hamilton by the Numbers Source: Conference Board of Canada
How others now see Hamilton Top Investment City in Canada and top 10 in corporate facility projects every year since 2012 Source: Atlanta s Site Selection Magazine & Conway Data Inc Best place to invest in Ontario Source: Calgary based Real Estate Investment Network (REIN)
McMaster Downtown Health Campus
New, Innovative Downtown Housing New York City style townhouses Stinson School, now 66 unit condo
Residences at the Royal Connaught A restoration project featuring 700 condos, 13,000 sq. ft. retail, 700 parking spaces
Hamilton s Waterfront Opportunities
Hamilton s West Harbour
The Evolution of the West Harbour Waterfront 1985-1992 Remedial Action Plan (RAP) 2000-2003 Setting Sail Secondary Plan 2008-2010 WH Waterfront Recreation Master Plan 2012-2015 City of Hamilton Strategic Plan 2014 Est. Goal Development- Ready by 2018 2016 Pier 8 Urban Design Study 13
Transforming Hamilton s West Harbour
Built on a Foundation of Public Parks & Open Spaces
Connecting People to their Waterfront with Continuous Trails
Expanding upon the Heritage & Legacy of Recreational Boating
Integrating Existing Uses & Buildings within new Development
Encouraging and Facilitating New Development
Barton-Tiffany Lands
Transformational Re-Development of Pier 8
New Public Spaces, Parks & Greenway on Pier 8
The Future of Hamilton s West Harbour
Pier 8 By the Numbers 12.5 Ha (30.8 acres) Total Area of Pier 8 5.44Ha (13.44 acres) Total Area of 9-Development Blocks 124,000 sq m (1.3 million sft) Total Gross Floor Area 1,260 1,600 residential units (110,000 sq m or 1.2 million sq ft) 13,000 sq. m (140,000 sq ft) of leasable commercial & Institutional space 1,422 Total Parking Spaces $600-$700 million in private-sector residential sales revenue * $15 - $22 million in private-sector value of commercial premises ** $8 - $9 million per year in new Municipal Taxes at full build-out *** $44 - $46 million in projected Municipal Tax Revenue between 2020-2030 *** % Private Development: 42.6% of Pier 8 % Street Network: 18.8% of Pier 8 Open Space: 38.6% of Pier 8 Pier 7&8 Urban Design Study April 2016 * Residential values are approximated based on 1,268 units, blended price psft. range of $458-$675, absorbed over 11-years ** Commercial values are approximated based on $15psf rental rate, 5% vacancy allowance at 6% cap to arrive at high-level estimate of value. *** 2016 Municipal Tax Rate over 11-year build-out
Approved Solicitation Process Prequalification (RFQ Shortlist bidders) Proposals (RFP Finalists) Negotiation (Sale & Development Agreements) Key team members Track record Financial capacity How do values align with the City s? Detailed concept Visuals and drawings that reflect concept Financial business plan and pricing Demonstrate innovation and value-add that addresses City s priorities Presentations to Council and public Final sales details Ground rules for relationship with City What-if scenarios
Guiding Principles Partnership Does the process help us find the best fit partner(s)? Transparency Will the process be perceived as fair, open, and competitive by both the public and private industry? Innovation Does the process promote creativity and innovation? City-building Can we leverage lands for more than just sale price (e.g., community benefits, control over outcomes, long-term value capture)?
Best Practices Prominent messages: Partnership, not just a transaction multi-stage solicitation process Articulate City s desired outcomes as clearly as possible Fairness Monitor is good governance Confidential commercial meetings help manage complexity RFPs and evaluation criteria are highly customized Transaction negotiation and relationship governance model determine long-term success
The Affordable Housing Continuum City of Hamilton Housing and Homelessness Actin Plan
Affordable Home Ownership Affordable homeownership: Housing units with a sale price of at least 10% below the median resale price of a home Average Household Income* $76,742 Median Condo Sale Price $271,500 10% Below Median Sale Price $244,350 Approx. Income Range Required** to Purchase $70,000-$75,000 *2011 Census Data - City of Hamilton Ward Profiles **5% Down Payment, 4.64%, 25-year Amortization plus assumptions for heat, condo fees & taxes Making Pier 8 living affordable to the Average Hamiltonian
Solicitation Process Timelines May 2016: Urban Design Study adopted by Council November 2016: Council approves recommended Solicitation Process 2016 Council & Subcommittee Briefings + Public Workshops + Market Soundings RFQ call closes RFQ call opens RFP released to Shortlist RFQ Shortlist announced 2017 April 2017: Council approves RFP Evaluation Criteria RFP responses received Negotiations conclude Design Review Panel review of Site Plan stage designs 2018 Proponent presentations and interviews Q1 2018: Finalist(s) identified / Council approves negotiation strategy Council approves entering of contracts October 2018 End of Council Term Process milestone Council approval required GIC / Subcommittee / Public touchpoints
Concurrent Processes Council approves Subdivision & Re-zoning applications Re-zoning Subdivision Council approves capital improvements beyond 2019 Site Servicing Solicitation Council approves entering of contracts Q4 2016: Council approves proposed Solicitation Process Q2 2017: Council approves RFP Evaluation Criteria Q1 2018: Council approves selection of Finalist(s) and authorizes execution of transaction negotiation strategy Block 1 DP Kickoff
Measures of Success Winning proponent brings a best-in-class concept plan that is innovative and reflects City s values City raises funds from sale of lands while also retaining some control over the long-term development of the site The waterfront is further enhanced as a desirable place for visitors and local residents profile of the City is elevated Hamilton is regarded by development industry and public sector peers as a leader in partnered city-building projects
In the media
The Future of Hamilton s West Harbour www.hamilton.ca/westharbour