THAT Committee of the Whole recommends that Council pass a By-law to adopt the Community Improvement Plan (CIP) for Downtown Wasaga Beach;
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- Emily Howard
- 6 years ago
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1 STAFF REPORT TO: FROM: SUBJECT: Committee of the Whole of Council Nathan Wukasch, Planner Community Improvement Plan Downtown Wasaga Beach DATE: November 21, 2017 RECOMMENDATION: THAT Committee of the Whole recommends that Council pass a By-law to adopt the Community Improvement Plan (CIP) for Downtown Wasaga Beach; AND THAT Committee of the Whole recommends that Council adopt the Community Improvement Plan (CIP) for Downtown Wasaga Beach; AND THAT Council direct staff to prepare the supporting administrative application forms and a communication strategy to launch the Downtown Community Improvement Plan in 2018 upon the completion of the Downtown Wasaga Beach policy framework (Official Plan Amendment, Zoning By-law Amendment, and Urban Design and Architectural Design Guidelines). BACKGROUND: Since February 2015, the Town has been working to promote the evolution of a livable, compact, accessible, and sustainable downtown for the entire community. This process included consultation with the community about a potential Downtown location (2015), establishing a framework for creation of a downtown through Official Plan policy (2016), and completion of the Downtown Development Master Plan (2017). The Town adopted Official Plan Amendment No. 42 on May 24, 2016, which delineated the boundaries and established a Special Policy Area for Downtown Wasaga Beach. OPA No. 42 also identified the Downtown as a Community Improvement Project Area. The County of Simcoe approved this amendment in September After an extensive consultation process, the Town s Downtown Development Master Plan (DDMP) was completed in March A staff report to Committee of the Whole accompanied the final plan, and on March 28, 2017, Council passed Resolution B, which provided staff with direction to develop a Community Improvement Plan for Downtown Wasaga Beach. Part (g) of this resolution stated: THAT Council recommends that the Wasaga Beach Downtown Development Master Plan be approved; AND FURTHER THAT Council approve the following next steps to commence implementing the Downtown Development Master Plan:
2 g. staff be directed to single-source N. Barry Lyon Consultants Limited to develop CIP policies for Downtown Wasaga Beach based on the market research and development pro forma work already conducted during the DDMP process and report back to Committee of the Whole with recommendations for consideration;. Council received two presentations on community improvements plans (CIPs) on June 20, 2017; the first was from legal counsel, Aird and Berlis, about general information on community improvement plans and expropriation; and the second being a presentation from N. Barry Lyons Consulting on the draft Community Improvement Plan for Downtown Wasaga Beach. Staff also provided an information report on the Downtown CIP to supplement the presentations, in advance of the public meeting. The Town held a Public Meeting on June 27, 2017 in the Council Chambers at the Townhall to hear comments from the public on the draft CIP. The potential financial incentive programs identified in the CIP include: Residential / Mixed-Use Development Incentive Program (Development Charge Rebate); Tax Increment Equivalency Grant Program; Municipal Application Fee Rebate Program; and, Parking Ratio Exemption. DISCUSSION: General information: What is a Community Improvement Plan? Community Improvement Planning is a tool the Town can use as a means to assist planning and financing development activities that effectively use, reuse and restore lands, buildings and infrastructure. Municipalities are prohibited from providing bonuses to assist individual businesses under the Municipal Act. However, the Municipal Act provides for an exemption to this prohibition if the Town has adopted a Community Improvement Plan. The Planning Act provides the legislative authority to create a Community Improvement Plan, allowing significant tools including a) acquiring land; b) constructing, repairing, rehabilitating or improving buildings; c) selling, leasing, or otherwise disposing of any land and buildings acquired or held by the municipality; d) making grants or loans to the registered owners and tenants of lands and buildings. The purpose of a Community Improvement Plan (CIP) is to stimulate the revitalization of a community improvement project area through the provision of incentives for redevelopment and provide certainty to the development community with respect to the municipal vision for the area. In short, a CIP allows the Town to identify development goals to achieve, and a toolkit of incentives to promote/assist in redevelopment. A CIP establishes the rationale and identifies the public benefits realized through the outcome of the community improvements. Written Comments Received The following written correspondence was received as a result of the circulation of the notice of Public Meeting on June 27, 2017.
3 Letters of Support: Letters of No objection: Letters of Concern: Letters of Objection: The Ministry of Municipal Affairs and Housing (MMAH) provided comments, dated September 7, 2017 (attached as Appendix E). None None None Correspondence has been received from Thomson Rogers Lawyers on behalf of Canada Ltd., the owner of 140 Main Street, requesting to be notified of the adoption and future meetings for the Downtown Community Improvement Plan as well as indicating that intend to object to future Official Plan policies until they have an opportunity to review, consider and comment on those policies. Verbal Comments Received at the Public Meeting The minutes of the public meeting on June 27, 2017 are attached as Appendix A. A number of residents provided comments on the draft Community Improvement Plan at a preceding public meeting on a different topic at the same Council meeting on June 27, Excerpts from that public meeting are also attached as Appendix B. Review of Identified Issues The following is a list of identified issues from the comments at the public meetings, and in the letter from MMAH. 1. How will the Downtown Master Plan affect the property of landowners and residential areas within the downtown. 2. Concern about expropriation of private property. 3. Communications with landowners regarding the Downtown Master Plan process. 4. Notification of the public meeting to landowners. 5. Annual financial commitments from the Town. 6. Private development interest in the Downtown Master Plan. 7. CIP incentive programs for existing buildings. 8. CIP evaluation team and process. 1. How will the Downtown Master Plan affect the property of landowners and residential areas within the downtown. The Town is in the early stages of implementation of the Downtown Development Master Plan (DDMP). The DDMP provides the basis for changes to the Official Plan and Zoning Bylaw that must be made in order for redevelopment to occur. The Official Plan and Zoning By-law Amendments will include a public consultation process, providing landowners and residents opportunity to provide feedback on land use, zoning, and development standards within the Downtown. These processes and consultations will also assist landowners in understanding the DDMP and how it relates to their specific properties.
4 The Town will also be preparing Architectural and Urban Design Guidelines that will guide future development in achieving the goals of the DDMP. This process will also involve public consultation. The goal of the Town is to create a high quality vibrant, pedestrian-friendly, compact mixeduse downtown in Wasaga Beach. New Land use policies, zoning and Urban Design Guidelines are intended to create a predictable and clear planning policy framework to guide the development community.. The attached Community Improvement Plan provides a set of potential incentives that the Town could employ to encourage re-investment in the priority redevelopment area.. 2. Concern about expropriation of private property. The Town is seeking to partner with landowners to implement the vision in the Downtown Development Master Plan. Residents were advised at the public meeting on June 27, 2017 that any lands required to implement the DDMP could be acquired through negotiation or partnership, with expropriation being a last resort. The priority for Downtown implementation is the Priority Investment Area in the CIP lands that front onto Main Street between Beck and the Nottawasaga River, and the two public squares. The Town has been working on a Memorandum of Understanding with landowners in the priority investment area to build partnerships and collaboratively work towards the vision in the DDMP. Landowners are assured that expropriation is the absolute last resort, only to be used when negotiations and partnerships are not achievable. 3. Communications with landowners regarding the Downtown Master Plan process. Following the feedback at the public meeting, the Town recognized the need for effective communications regarding the implementation of the Downtown Master Plan. Town staff, through the Communications Officer, brought forward a Downtown Master Plan communication strategy to Coordinated Committee on July 20, The purpose of the communication strategy is to convey the various steps in implementing the DDMP so that residents and business owners can understand what is happening with the DDMP implementation at all times. The strategy includes regular newspaper advertisements, frequent community meetings, weekly open house sessions, a project website (Build Wasaga.com), Town newsletter, and utilizing social media. The goal is to allow stakeholders to ask questions, seek clarification, and provide comment about the process and the project. Town staff have been available every Wednesday morning since early September at Town Hall to answer questions and discuss the DDMP and Community Improvement Plan. An evening open house session was also held. The Town also has reached out to numerous property owners in the Downtown s priority investment area to discuss the DDMP and gauge the level of support. Representatives of Fram Building Group were in attendance.
5 4. Notification of the Community Improvement Plan public meeting (June 27, 2017) to landowners. The notice of the Community Improvement Plan public meeting was published in the Wasaga Sun twenty days prior to the public meeting in accordance with the Planning Act. In addition, all landowners within the Community Improvement Project Area were mailed a notice of the public meeting to their respective mailing addresses included in the municipal tax roll. This mass-mailing included those individuals who expressed that they had not received a notice of the meeting. 5. Annual financial commitments from the Town. The approval of this Community Improvement Plan does not obligate the Town to providing incentives. Council has the opportunity to make a decision on each application whether to award incentives to a proposed development project. It is important to note that the CIP incentives are performance-based, meaning that a project must demonstrate through a financial development pro forma that the proposed incentives are required to make the project financially feasible. Each application for CIP incentives must meet eligibility criteria and will be evaluated on their individual merits by staff, with a recommendation provided to Council. The advice from N. Barry Lyon Consultants to date is that Council may need to allocate an amount in an annual budget as a form of a maximum amount that Council may be willing to provide for that budget year in incentives. The Town is not at a stage yet to indentify an estimated amount for future CIP incentives. It should be noted that all of the potential CIP incentive programs are structured as potential rebates that could be credited back to a developer at various project milestones. The CIP incentive programs are described in Section 4 of the CIP (Appendix E to this report). If Council decides to enter into an agreement with a developer for CIP incentives, the Town will know in advance what the financial impacts of the foregone revenue are for future years as the project is constructed, which will inform the budget process on an annual basis. The Town Treasurer is gathering information and investigating methods of financing CIP incentives over time that will assist the Town as the CIP is rolled out. 6. Private development interest in the Downtown Master Plan. The Town released a Request for Expressions of Interest (RFEOI) on April 26, 2017, seeking experienced mixed-use developers interested in participating in the development of Town land within Downtown Wasaga Beach. The Town received five expressions of interest to the RFEOI which closed on May 26, The Downtown Master Plan Steering Committee evaluated the five proposals on June 8 and 9, Staff provided a recommendation report to Committee of the Whole on June 20, 2017 that recommended that: a. Fram Building Group Ltd. & Slokker Canada Corp., be short-listed for Council s consideration to be the development partner with the Town to develop Town-owned lands within the Downtown; b. Council meet with and tour built projects of Fram & Slokker, prior to making a decision whether to partner with Fram & Slokker;
6 c. a third-party party audit be undertaken to ensure that Fram & Slokker has the financial strength to carry out the project to the satisfaction of the Town; and d. that the Town negotiate a future form of rights to future phases based upon meeting performance milestones to the satisfaction of the Town, as will be spelled out and agreed to in a subsequent development agreement. The Town held a Downtown Master Plan information session on August 29, 2017, in which Fram Building Group participated to update the community on the progress of the Downtown Development Master Plan. The Town is currently finalizing the third-party audit. 7. CIP incentive programs for existing buildings. The goal of the Downtown Wasaga Beach CIP is large-scale redevelopment of the Downtown, with particular focus on the Priority Investment Area. The Priority Investment Area are those lands that front onto Main Street between Beck Street and the Nottawasaga River, and that front onto the two public squares. Therefore, the CIP incentives do not include smaller-scale incentive programs that are geared towards façade improvement or renovations of existing building stock. 8. CIP evaluation team and process. Staff recommend that the CIP include a staff evaluation team with the addition of the Chair of the Downtown Master Plan Steering Committee (or designate). The process for preconsultation and meeting eligibility criteria is set out in the CIP, as well as an administrative process for applicants to follow. The CIP administration team would evaluate CIP incentive applications based on a performance-based matrix with criteria and scoring identified in a CIP appendix. If a proposed project is determined to meet eligibility criteria, the proponent will be provided a Downtown CIP Incentive Application. Applications for CIP incentive programs will be evaluated by the CIP program administration team. The composition of the CIP program administration team will be as follows, and is subject to change at the direction of Council; Chair of the Downtown Development Master Plan Steering Committee or designate; Director or designate from Economic Development and Tourism Department; Manager or designate from Planning Department; Chief Building Official or designate from Building Department; Director or designate from Public Works Department; and, Director or designate from Treasury Department. Community Improvement Plan for Downtown Wasaga Beach The Downtown Community Improvement Plan (Appendix E) is intended to provide incentives to achieve immediate results in the two primary areas identified in the DDMP for implementation: Lower Main Street and the Beachfront. These areas are identified as the Priority Investment Area in the draft CIP. At the outset of Downtown Development Master Plan implementation, N. Barry Lyons Consulting (NBLC) recommends that the financial incentives offered by the Town are performance-based and tightly focussed on properties that are either: a) fronting along Main Street between the Community Hub and the Nottawasaga River and/or the public square in the Lower Main area; or
7 b) fronting on the public square and/or Spruce Street in the Beachfront area. The Priority Investment Area mirrors the lands included in the draft Memorandum of Understanding that staff are discussing with landowners within this area and Fram & Slokker. Identifying a Priority Investment Area ensures that the CIP incentives promote investment in Phase One of the Downtown Development Master Plan. The proposed CIP contains goals and objectives, rationale and general requirements for the incentive programs, and a summary of the proposed incentive programs, including the following: Residential / Mixed-use Development Incentive program Tax Increment Equivalent Grant (TIEG) program Municipal Application Fee Rebate program Exemption/Reduction from Parking Ratio Requirements Affordable Rental and Market Rental Housing Program (Downtown-wide) Incentives would only be available for new construction, not conversions or additions to existing buildings. Potential applicants for CIP incentives will be required to pre-consult with Town staff and external agencies on their development proposal ($500 application). Initial eligibility criteria will have to be met in order to qualify to submit an application. These criteria include: 1. The proposed development conforms to the Official Plan, Zoning By-law, and Downtown Urban Design Guidelines. 2. The proposed development implements the Downtown Development Master Plan. 3. The property on which the development is proposed has frontage on Main Street, Spruce Street and/or one of the two public squares, as identified within the priority investment area in the CIP. 4. The proposed development consists of a mixed-use building with a minimum three-storey height, containing commercial uses at grade. 5. The applicant must submit a proposed development pro forma that demonstrates the need for Downtown CIP financial incentives in order to make the project financially viable. If a proposal within the Priority Investment Area (PIA) meets these initial eligibility criteria, the applicant will be provided the opportunity to submit an application for CIP incentive program(s). Applications for CIP incentives will be evaluated by the CIP program administration team, using a performance-based scoring matrix that is attached within Schedule B Evaluation Criteria to the CIP (Appendix E to this report). The performance-based criteria will include the following categories: Evaluation Criteria Potential Score Quality of Architecture and Site Design Excellence /20 Scale and Massing of the Building /10 Positive Contribution to the Public Realm /15 Type of Commercial Uses /15 Financial Viability /40 Affordable Housing Bonus * up to 10 add l points Total /100
8 The evaluation criteria are weighted towards financial viability, which reinforces the importance of the applicant demonstrating the need for proposed incentives in order to make the project financially viable. The goal is to provide incentives only to those projects that can demonstrate the need. The Town reserves the right to use consultants to review and verify financial pro forma information submitted in support of a project. Bonus points could be awarded to proposals that include an affordable housing component. The CIP incentives will also be available to projects that contain affordable rental or market rental housing throughout the Downtown (outside the Priority Investment Area) to encourage a broad range of housing opportunities that fill the needs in the community. Separate eligibility requirements are outlined in the CIP for these type of projects. The following is a list of revisions to the CIP completed since the public meeting: Strengthening the CIP as being performance-based, which requires an applicant to demonstrate the need for CIP incentives to make a project feasible through a development pro-forma; Setting out the expectations for a supporting development pro-forma; More detailed administrative application process, using preconsultation to determine eligibility, followed by an application process, review and recommendation from a staff evaluation team; More detailed evaluation process, including eligibility criteria and CIP application evaluation criteria matrix and point system; Identification of the staff evaluation team with one member of the Downtwon Master Plan Steering Committee; Clarifying the definition of affordable housing that is in line with the Provincial Policy Statement; Minor changes in accordance with MMAH comments that clarify the CIP. SUMMARY: In order to encourage redevelopment within specific areas of the Downtown (the Priority Investment Area), Staff recommends utilizing the powers under Provincial legislation (Municipal Act and Planning Act) to adopt a Community Improvement Plan for Downtown Wasaga Beach. Through this CIP, the Town is able to undertake activities that support the goals and objectives of the Downtown Development Master Plan, and provide incentive programs intended to facilitate redevelopment by potential investors. Staff recommend that Council approve the attached Community Improvement Plan for Downtown Wasaga Beach and pass a By-law to enact the CIP. Staff also seek authorization to prepare the supporting administrative process guidelines, application materials, and education/promotion/communications strategy to support a formal launch of the CIP upon the completion of the Policy framework for Downtown Wasaga Beach (Official Plan Amendment, Zoning By-law Amendment, and Urban Design and Architectural Design Guidelines) in 2018.
9 Respectfully submitted, Nathan Wukasch, MCIP, RPP Planner Appendix A - MMAH Comment Letter Appendix B - Minutes of Community Improvement Plan Public Meeting on June 27, 2017 Appendix C - Excerpts from Official Plan Review Public Meeting on June 27, 2017 Appendix D - Downtown Community Improvement Plan By-law Appendix E - Community Improvement Plan for Downtown Wasaga Beach
10 Appendix A Ministry of Municipal Affairs and Housing letter
11 Ministry of Municipal Affairs and Housing Municipal Services Office Central Ontario 777 Bay Street, 13 th Floor Toronto ON M5G 2E5 Phone: Fax: Toll-Free: Ministère des Affaires municipales et du Logement Bureau des services aux municipalités Centre de l Ontario 777, rue Bay, 13 e étage Toronto ON M5G 2E5 Téléphone: Télécopieur: Sans frais: September 7, 2017 By Only Nathan Wukasch, Planner 30 Lewis Street Wasaga Beach, ON L9Z 1A1 Dear Mr. Wukasch: Re: Draft Downtown Community Improvement Plan MMA File #: 43-CP Thank you for providing the opportunity for staff from the Ministry of Municipal Affairs/Ministry of Housing (Ministry) to review and comment on the Town of Wasaga Beach s (Town) draft Downtown Community Improvement Plan (CIP). Ministry staff generally support the direction of the Town s draft CIP to implement the vision of the Town s Downtown Development Master Plan by increasing the attractiveness of the Town s Downtown as a destination for permanent residents and help shift the Town from a seasonal tourism-based destination to a more complete four-season community. Ministry staff acknowledge that Subsection of the Town s Official Plan (OP) contains policies to support the establishment of a Community Improvement Plan and that Council adopted Amendment 42 to the OP in May 2016 which outlined the Community Improvement Plan Area (CIPA) boundaries of the Downtown in Schedule H of the OP. Ministry staff understand the Town s draft CIP proposes to use four financial incentives programs that have the intention of reducing costs associated with new development to catalyze new investment in the CIPA. Ministry staff offer the following comments on the Town s draft CIP: Section 3.3 Prioritization of Affordable and Rental Housing The CIP makes the statement that incentive program use should be focused in the Priority Investment Area, but could also be provided for new affordable ownership and purpose-built rental units throughout the rest of the Downtown boundaries. Ministry staff suggest revising this statement to be clear on whether or not the 1
12 incentives are proposed to be available as it pertains to the rest of the Downtown. Section 3.6 General Requirements for the Incentive Programs The incentive programs have been designed for new construction only and conversions and additions to existing buildings are not eligible for the programs outlined in the CIP. The Town outlines additional eligibility criteria for each incentive program is discussed in the descriptions of each program. Ministry staff are concerned that the incentive programs in the draft CIP are limited to new construction only, and that conversions and additions to existing buildings are not eligible for the programs outlined in the CIP. Ministry staff believe that not including some provisions for renovation, retrofitting, heritage enhancement would be a missed opportunity to provide additional rental/living space in existing commercial buildings. Therefore it is recommended the Town incentivize these types of development to enhance the quality of the public realm within the Downtown which would help the Town achieve one of the identified objectives of the CIP. As any application for funding through the CIP would be subject to criteria outlined in subsection 28(7) of the Planning Act, Ministry staff suggest that the CIP include a reference to subsection 28(7.3) of the Planning Act, namely: The total of the grants and loans made in respect of particular lands and buildings under subsections (7) and (7.2) and the tax assistance as defined in section of the Municipal Act, 2001, that is provided in respect of the lands and buildings shall not exceed the eligible cost of the community improvement plan with respect to those lands and buildings. Ministry staff further suggest that the CIP demonstrate how the Town will factor the sale of municipal property at below fair market value in the determination of the eligible cost as per subsection 28(7.3) of the Planning Act. Section 4.1 Residential / Mixed Use Development Incentive Program Ministry staff suggest removing the term multi-family when discussing more intensive residential development. Given the current need to increase the supply of seniors housing, this term could be misinterpreted. Ministry staff suggest it would be sufficient to encourage intensive development without the reference to multifamily. This section also states that if no applications are approved in a given year, funding from that year should be added to that of future years in order to respond to any future increased demand for the program. Ministry staff suggest elaborating on the details of this process (e.g., the funds would be stored in a reserve), to provide more details to applicants. Section 4.3 Planning and Building Permit Fee Rebate Program Ministry staff suggest that additional detail be provided in this section of the reference made to Section 37 of the Planning Act to help applicants who may not be familiar with what this means (e.g., small business or property owners). It is also 2
13 recommended that that the term rebate used in this section be replaced with the term grant to ensure conformity with Section 28 of the Planning Act. Further, the use of the term grant could imply a level of discretion, while the term rebate may imply more of an obligation. The Town should also consider caps on building and/or planning fees. Section 4.4 Parking Rate Exemption It is not clear that that a CIP would be the authority to provide parking ratio exemptions as proposed in this section of the draft CIP. Ministry staff suggest that the Town clarify or reference the legal authority the Town is relying on to amend parking ratios on a site-specific basis. Section 4.5 Other Initiatives This section suggests that the Town may acquire more property to achieve the goals of the CIP. Pursuant to the Municipal Act, 2001, municipalities are required to adopt and maintain a policy with respect to the sale and other disposition of land. In any future property acquisition, the Town will need to follow its policies in this respect. Section 5.1 Application Process This section makes references to an applicant in good standing but does not define or provide parameters as to what this means. It is recommended that the Town be very clear in terms of applicant eligibility criteria to ensure a fair evaluation process. In addition to this, numerous references are made to a CIP administration team, but there are no details to who (e.g., Town departments or positions) would be included in this team. It is recommended that the Town ensure the process, reporting structure and evaluation criteria are clearly outlined for the applicant. This section also provides that Town Council may require a successful applicant to enter into a legal agreement. Ministry staff suggest that either a legal agreement be provided for all CIP applications or that the CIP provide some guidance on when a legal agreement would / would not be required. Generally speaking, this draft CIP provides greater discretionary authority for Town Council to make decisions on a case-by-case basis than other CIPs that Ministry staff have reviewed. The Town should be aware there are accountability and transparency risks in this approach. The Town may also want to consider including a section or process on application reconsiderations and/or appeals. Section 5.2 Monitoring and Review Timeline This section states that [a]ny major amendments made outside of the five-year review timeframe should be approved by Council. These amendments may include adding or removing a new financial incentive program, amending the amount of financial assistance available under the programs, or a change to the CIPA boundaries. These amendments shall be undertaken in accordance with Section 28 of the Planning Act. It is unclear what would constitute a minor amendment, or what situations a proposed amendment to the CIP could be undertaken outside of section 3
14 28 of the Planning Act. Ministry staff suggest either removing the clause related to minor amendments or clarifying what constitutes a minor amendment that would not require a public process. Other General Comments: To support the interpretation and implementation of the CIP, it may be beneficial to include a glossary or definitions section for those terms that have a particular meaning, including those terms Ministry staff recommend be clarified or defined in the comments above. In addition to the CIP, the current provincial policy framework provides for additional planning tools that could work in concert with the CIP to further meet the Town s objectives. We would encourage the Town to consider the various other planning and financial tools available to municipalities that can be used to support municipal goals for economic development. These tools are outlined in the Municipal Planning and Financial Tools for Economic Development handbook which explores ways to approach economic development based on the built environment. The handbook is available on the Ministry website at Thank you for the opportunity Ministry staff to review and comment on the Town s draft Downtown CIP. If you have any questions please do not hesitate to contact me at or by at Patrick.M.Miller@ontario.ca or alternatively at or by at Aldo.Ingraldi@ontario.ca. Yours truly, Patrick Miller, Assistant Planner 4
15 Appendix B - Minutes of CIP Public Meeting on June 27, 2017 The following written correspondence was received as a result of the circulation of the Notice of Public Meeting: Letters of Support: Letters of No objection: Letters of Concern: Letters of Objection: None None None None The Director, Legislative Services and Clerk noted that there has not been any further letters or correspondence received in regards to this application. Mr. Nathan Wukasch, Town Planner, and Mr. Josh McLeod, of N. Barry Lyon Consultants Ltd. were in attendance and made a brief presentation to provide further details with respect to the proposed Downtown Wasaga Beach Community Improvement Plan. Mayor Smith asked if there was anyone present that would like to provide comments and input regarding the proposed Community Improvement Plan. Nick Glenwood Drive - I have a concern for use of the word acquisition. What security do we have as homeowners if forced to sell and at what price? - Mr. Wukasch advised that the CIP process provides the municipality with the ability to acquire lands. There are a number of steps that need to be done prior to these decisions being made and more conversations with the public regarding the goals of the downtown. - Mayor Smith noted that there are many ways to acquire land and the hope here is that any land required that isn t owned by the town will see the acquisition completed between the private developers and land owners. The Mayor believes a developer will approach an owner and make a significant offer. Mayor Smith also noted that we don t have all the answers to this as we aren t there yet noting that expropriation is an absolute last resort but it is not out of the question. - Mr. Conway also noted that we are just at the very beginning and expropriation is a last resort. A vast majority of projects are dealt with on a person to person basis and have a mutual outcome. Robert Bortlisz nd Street South - I am pleased with the CIP. Is there any program for existing businesses to fix up their businesses, I only see new build information? - Mayor Smith advised that development and redevelopment is purpose of the CIP and if there is a current land owner that wants to redevelop something, Council could consider through the CIP. - Mr. Conway noted that those types of policies are very easy to insert and that he would be happy to recommend to Council.
16 Angelo Monaco Main Street - The CIP looks good. Page 11 of the plan says Council may sell property at below market value. Why would you want to sell at below market if you are giving incentive to redevelop? - Mayor Smith noted that there has been no discussion amongst staff or Council to sell at below market value. - Mr. Monaco asked how Council plans to maintain transparency and inform residents if this changes and happens. - Mr. Conway advised that - any applications for incentives would need to be rationalized and explain why you need money done on a case by case basis based on established criteria and Council would make the decision. - Mr. Monaco asked again about selling town assets at below market value. - Mr. Conway advised that this is a decision of Council and it would go through a staff analysis. Jason Bokesch 43 Nancy Street - When will people in phase 1 receive notice regarding their properties? - Mayor Smith advised again that the town is in the very beginning stages of the CIP process which will have many more meetings and consultations going forward. The Mayor added this is an important process and we will look to have staff reach out to the business owners and residents in these areas and set up a time/place to get answers to your questions. Sandra Boland 40 River Road East - Can the Town expropriate land and sell at less than market value to a developer? - Mr. Conway advised that the Town could do that today if they wanted. - Ms. Boland asked if there is longevity to this plan or if a time has been set. - Mayor Smith commented that the areas develop as the phases move along and is based on many different factors. - Ms. Boland asked if there is room for amendments to the plan if someone is beyond Phase 1 but has a great development to offer. - Mr. McNeil advised yes. Mr. Gupta 32 Main Street - I don t remember seeing timelines. How early will we find out from the Town as we have to pay for inventory early for next year? - Mr. McLeod commented that there isn t a set timeline on this. As for the land acquisition, the purpose is more focused around the main square and most development will be undertaken by the private sector. At some point when the Town decides if they want to acquire land they would negotiate with you. - Mayor Smith advised that when the Town gets to that point they will give all impacted owners notification at the earliest time possible. - Mr. Gupta stated he is giving the Town notice today that if they try to acquire his land after the month of September then they have to pay for the goods that are ordered and paid for as the business owner. He would like to know as early as possible. - Mayor Smith stated this is a fair question and advised Mr. Gupta he will get as much notice as possible and that there is a negotiation process.
17 Julie M Main Street - Most of this will come from the private sector developers. Has the Town put out requests for interest, have any developers come forward? - Mayor Smith advised that a RFEOI was put out and five developers came forward; the related recommendation from staff is before Council for consideration tonight. Mark Winegarden 63 Frank Street - CIPs have to have a fixed cost in the annual budget have there been any discussions regarding the overall budget knowing that it will affect all tax payers. - Mayor Smith advised that it does not matter if we spend it or offer it through incentives it has to be budgeted for and the whole community will be affected. - Mr. Conway noted that the Town is not at that stage yet and that the amount council budgets will be part of a discussion as the plan evolves. It will be what Council can afford and some years they may have money and some years they may not. - Mr. Winegarden asked if there are any changes in zoning ie: certain portion of community needs to be designated as employment lands? - Mr. Wukasch commented that the Growth Plan for the Greater Golden Horseshoe and the County Official Plan have requirements to plan for appropriate employment over the span of the Official Plan. The OP process will look at how much land needs to be designated. Linda Benson th Street North - Somewhere on the Agenda shows that the CIP will be part of the OP, does that mean the CIP can t start until the OP is finalized? - Mr. Conway advised that the CIP can be adopted through an amendment to the existing OP should Council see fit and it can be included within the new Official Plan process. Salvatore Campanella- Glenwood Drive - What do you have planned for families and houses on Glenwood Drive? - Mayor Smith advised that the vast majority of Glenwood Drive although included in the Master Plan is not impacted. - Mr. Wukasch noted that Glenwood Drive is part of the Downtown Master Plan which is in the process of being implemented and in order to change any land use designations they need to complete the OP and zoning amendment and this will be a public process. Currently this area (Glenwood Drive) is designated and zoned residential. - Mr. McNeill advised that the goal is to try and stimulate development on town owned land and to leave existing houses as untouched as possible but it s too early to commit at this point. Valda (Albatross Motel) 160 Main Street - The arena life expectancy is coming to an end, is the arena still going in the area proposed in the Master Plan? - Mayor Smith advised that no absolute decision has been made on anything at this time. - Mr. McNeill noted that staff is working on the scope of work for the Community Hub and through the Master Plan staff has identified potential uses that could include an arena, etc. Staff will bring forward a report to Committee and will have a more detailed discussion with all impacted groups to find out the public needs. - Valda noted that the current arena timeframe is almost up and the Town needs to move in on this matter.
18 - Mr. McNeill advised that it should be around a 10 week process and then staff will bring something forward to Council on the next steps. Peter S Glenwood Drive - The plan shows my property as a parking lot; is that true? - Mr. McNeill advised that it is too early to say anything in this area. We need to bring on a development partner first. The goal is to minimize the impact to this neighborhood. Trent Gow 265 Shore Lane - In regards to the CIP Administration, how is this constituted? Who are they accountable to and how are they chosen? - Mr. Conway advised that there would be a team of staff persons that would evaluate the proposals with Council making the final decision. - Mr. Gow asked if there would be Terms of Reference. - Mr. McLeod advised yes there would be. - Mr. McNeill added that no discussion has occurred yet regarding the structure. Mayor Smith asked if there were any further comments from the public. There were none. Mayor Smith asked members of Council if they had any questions or comments with regards to the proposed Community Improvement Plan. Councillor Belanger noted that the incentives related to the CIP is a leverage to integrate affordable housing which is a significant need in our community and it will be making a decision on a long-term benefit of our community. Councillor Belanger noted that the KPMG report showed we are 97% reliant on property tax and the Downtown Master Plan will revitalize our area. Deputy Mayor Bifolchi commented that there are a lot of property owners included in this red circle who have concerns and that while it might be for the betterment of the community, there are people who love their homes and properties don t want to sit for years and wonder what will happen. The Deputy Mayor advised that she would have a problem with this if it happened to her and that there should be something (meeting) on a weekend so that the working people and cottagers can be here adding there needs to be several meetings before the CIP is approved. Mayor Smith noted that the comments received today will be referred back to Development Services Section of Coordinated Committee where a decision will be made whether to recommend the proposed Community Improvement Plan proceed further through the approval process. Mayor Smith advised members of the public that if they would like to receive the Notice of Decision for the proposed Community Improvement Plan, to please make a written request to the Clerk of the.
19 Appendix C - Excerpts from Official Plan Review Public Meeting on June 27, 2017 The following is a record of comments made during another public meeting at the Council meeting on June 27, 2017 that pertain to the draft Community Improvement Plan: James O Brien Beck Street - I see on the plans that the Town Square will be in my area and a large building where my property is. What are the plans for my property? I have put a lot of money into my home and also have put in an application to sever my property as I own a double lot. Why would I continue to do this now if the Town is going to take my property? What happens if we don t want to sell? - Mayor Smith advised Mr. O Brien to leave his contact number with the Clerk to arrange for a meeting with the appropriate staff. - Mr. O Brien noted that he didn t receive a notice for the CIP. - Mr. Wukasch advised that Staff sent out Notices of the CIP to all land owners within the downtown boundary. He will follow up to see why Mr. O Brien did not receive notice. - Mayor Smith informed Mr. O Brien that Town staff will be in contact with him and he will meet with him as will to address any questions. David Smith 49 Beck Street (on behalf of Shirley Smith- owner/mother) - Has the same concerns as Mr. O Brien and would like to have a group meeting not individual meetings to address the concerns. - Mayor Smith advised that the town will look into having staff reach out to residents in that area and go through the process with everyone so there is a clear understanding. Mr. Gupta 32 Main Street - He is also in the affected area and would recommend a group meeting of everyone impacted in the downtown area including commercial and residential owners. Jason Bokesch - 43 Nancy Street - He is also in the impacted area downtown and hopes that Council and staff are keeping these people in mind when developing. The PowerPoint included a slide regarding concerns to community but nothing was listed about resends in the affected area. - Mr. Wukasch noted that this process is a town wide project related to the Official Plan and the second public meeting is specific to the downtown area which may answer his questions. Nick Monteleone 10 Forest Avenue - I took the day off work to come to this meeting. Can I see some pictures or can you tell me if my house is going to be affected? - Mayor Smith advised that the next presentation will be focused on the downtown area.
20 Appendix D Downtown Community Improvement Plan By-law
21 THE CORPORATION OF THE TOWN OF WASAGA BEACH BY-LAW NUMBER A BY-LAW TO DESIGNATE A COMMUNITY IMPROVEMENT PROJECT AREA FOR DOWNTOWN WASAGA BEACH WHEREAS The Corporation of the has adopted an Official Plan which covers all of the land within its boundaries and which contains provisions relating to community improvement and which are in force and effect at this time; AND WHEREAS Section 28(2) of the Planning Act, R.S.O. 1990, c.p. 13., empowers the council of a municipality in which an official plan is in effect to designate the whole or any part of the municipality covered by the official plan as a community improvement project area; AND WHEREAS Section 28(1) of the Planning Act, defines a community improvement project area as a municipality or an area within a municipality, the community improvement of which in the opinion of council is desirable because of age, dilapidation, overcrowding, faulty arrangement, unsuitability of buildings or for any other environmental, social or community improvement economic development reason ; AND WHEREAS the Council of The deems it expedient and in the interest of the municipality to designate the land hereafter described a community improvement project area; NOW THEREFORE the Council of the Corporation of the HEREBY ENACTS as follows: 1. THAT pursuant to Section 28 (2) of the Planning Act, the lands illustrated on Schedule A to this bylaw are hereby designated as a Community Improvement Project Area to be known as Downtown Wasaga Beach Community Improvement Project Area. 2. THAT this By-law shall come into force and take effect in accordance with the provisions of the Planning Act.
22 READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS TH DAY OF, Brian Smith Mayor Andrea Fay Director of Legislative Services and Clerk
23 Schedule 'A' Nottawasaga Bay Ash St. Jenetta St. River Rd. E. Browns Ln. Hiawatha Ave. 6th St. N. Dyer Dr. Mosley St. D onald Royal Beech Dr. 2nd St. N. Cres. Blueberry Tr. Beach Dr. Access Rd. Willow St. Spruce St. Glen St. River Ave. Cres. Glenwood Dr. Forest Ave. Nancy St. Beck St. Laidlaw St. Elm Dr. Main St. Culham Tr. Westbury Rd. Beachway Tr. Stonebridge Blvd. Northgate Rd. Savarin St. Berkely St. Ansley Rd. Zoo Park Rd. Georgian Glen Dr. Wally Dr. Promenade Mews Leo Blvd. River Rd. W. Christy Dr. Meadow Ln. Wesley Ave. Downtown Wasaga Beach Community Improvement Project Area This is Schedule 'A' to By-Law Passed the day of Signatures of Signing Officers Mayor Clerk Meters
24 Appendix E Community Improvement Plan for Downtown Wasaga Beach
25 Downtown Community Improvement Plan October 2017 N. BARRY LYON CONSULTANTS LIMITED
26 Downtown Community Improvement Plan Table of Contents 1.0 Background and Overview Legislative and Policy Framework The Downtown Community Improvement Plan Summary of Incentive Programs Implementation Appendix A Mapping Appendix B Evaluation Criteria Appendix C Pro Forma... 30
27 1.0 Background and Overview 1.1 Introduction Downtowns allow for the efficient use of land and municipal resources for the social and economic benefit of the community. They include an interesting mix of residential, commercial, and public uses and spaces. Well-designed, they can become a source of community pride and identity. Downtowns can offer a sense of place that yields benefits in terms of improving the quality of life for residents, creating a strong investment environment, and supporting growth. The ( the Town ) has had a significant amount of growth over the past 20 years, however, much of that growth has been focused on the edge of the community. The planning direction for the historic core of the community has been focused on tourism based activities. As a result, investment in the core areas has been minimal, leaving the Town without a community focus. In 2015, Council for the Town approved boundaries for the new Downtown (see page 3). They identified that as the Town transitions from a seasonal destination to a more complete community, the development of a new Downtown core would serve several functions. A healthy Downtown will enhance the economic competitiveness of the Town, will aid in rebranding the Town with a more sophisticated and inclusive image, and will help attract new residents, businesses, and jobs, diversifying the local economy. While the Town will always have a significant component of tourism, its increasing attractiveness as a destination for permanent residents has underpinned the need for a Downtown that builds on the growing sense of community. In June 2016, Council awarded Forrec Limited and their associated sub-consultants (N. Barry Lyon Consultants Ltd, J.C. Williams Group, CBRE, Toole Design Group) the contract to lead the development of the Downtown Development Master Plan ( DDMP ), initiating the planning process for the creation of a new Downtown. Over the months that followed an intensive evaluation of the social, physical, cultural, and economic influences at play were analyzed. The key barriers and impediments blocking the development of a legitimate Downtown were identified. The path forward is to stimulate reinvestment with a balance of public and private investment. The public investment component features two important public spaces. The first being a town square in the future Downtown that will form an important civic space to help organize and frame future Downtown development while offering a central town venue for public events and celebrations. The second public space is Festival Square which will be an integral part of future development on Beach One. This space will be designed for both passive and active programing 1 P a g e
28 but primarily for seasonal tourist based activities. Similar to the Downtown square, Festival Square will provide an organizing element for future development. Artist s impression of the Downtown public square designed to accommodate public events and celebrations with private sector investment flanking its perimeter Artist s impression of the Festival Square that will be designed primarily to accommodate seasonal activities but will also help encourage and organize new investment. The CIP polices will work hand in hand with these, and other physical investments. 2 P a g e
29 These public investments are seen not only as amenities for the community but also as strategic investments that will improve the marketability and value of the adjacent real estate. The Downtown Development Master Plan ( DDMP ) recommended that financial incentives be offered concurrently with these physical investments to help market and stimulate interest in the community. In order to provide these incentives, a Community Improvement Plan would be needed. On March 28, 2017, Council adopted the DDMP, along with several recommendations from staff. This Community Improvement Plan responds to the direction of Council with respect to the associated recommendations contained in the staff report submitted to the Committee of the Whole on March 21, Downtown area, as approved by Council in December Community Consultation The DDMP process featured a comprehensive public engagement program that helped guide and shape its recommendations. Over the course of several months, the consultation process included 3 P a g e
30 a number of public presentations, workshops, drop-in sessions, and stakeholder meetings. The findings from this public engagement and the DDMP process will aid in informing the Community Improvement Plan. As part of the Community Improvement Plan process, a statutory public meeting was held on June 27, P a g e
31 2.0 Legislative and Policy Framework The following legislative framework provides the authority for a Community Improvement Plan. 2.1 Planning Act The Planning Act, R.S.O. 1990, c. P. 13, as amended ( Planning Act ) provides the statutory framework for the creation of Community Improvement Plans in the Province of Ontario. Where there is an official plan in place that contains provisions related to community improvement, Section 28 of the Planning Act provides authority for municipalities to designate by by-law a Community Improvement Project Area ( CIPA ). The Planning Act further authorizes Council to prepare a plan suitable for adoption as a Community Improvement Plan ( CIP ) for the CIPA. Subsection 28(7) of the Planning Act states that: for the purpose of carrying out a municipality s community improvement plan that has come into effect, the municipality may make grants or loans, in conformity with the community improvement plan, to registered owners, assessed owners and tenants of lands and buildings within the community improvement project area, and to any person to whom such an owner or tenant has assigned the right to receive a grant or loan, to pay for the whole or any part of the eligible costs of the community improvement plan. Subsection 28(7.1) of the Planning Act continues by stating the eligible costs of a community improvement plan may include costs related to environmental site assessment, environmental remediation, development, redevelopment, construction and reconstruction of lands and buildings for rehabilitation purposes or for the provision of energy efficient uses, buildings, structures, works, improvements, or facilities. 2.2 Municipal Act, 2001 Subsections 106(1) and 106(2) of the Municipal Act, 2001, S.O. 2001, c. 25 ( Municipal Act ) prohibits municipalities from directly or indirectly assisting any manufacturing business or other industrial or commercial enterprise through the granting of bonuses. However, subsection 106(3) provides an exception to this bonusing rule for municipalities exercising powers under the provisions of Section 28 of the Planning Act. Additionally, subsection 365.1(2) states that: a local municipality may pass by-laws providing for the cancellation of all or a portion of the taxes for municipal and school purposes levied on one or more specified eligible properties, on such conditions as the municipality may determine, and a by-law may apply in respect of the 5 P a g e
32 rehabilitation period for a specified property, the development period for a specified property, or both. 2.3 Official Plan of the Subsection of the Official Plan of the ( Official Plan ) contains policies to support the establishment of a Community Improvement Project Area (CIPA) and a corresponding Community Improvement Plan. This subsection contains goals and objectives for areas designated as a CIPA (subsection ), as well as considerations to be addressed through the preparation of Community Improvement Plans (subsection ). Council adopted Official Plan Amendment ( OPA ) 42 in May 2016 which outlined the CIP boundaries of the Downtown in Schedule H of the Official Plan. OPA 42 was approved by the County of Simcoe in September P a g e
33 3.0 The Downtown Community Improvement Plan 3.1 Community Improvement Project Area (CIPA) The area under study for the DDMP is characterized by a mix of land uses ranging from new retail and medium density residential uses located at Stonebridge at the southeast of the Downtown, to weak tourism based uses and vacant or underutilized land in the traditional core areas of the Town, including along Main Street and in the Beach area. The Stonebridge development offers important amenities to the community but, by design, is oriented to car use and offers only a supportive role in the establishment of a new Downtown. The challenge resides in the balance of Main Street westward to Beach One. Along this strip, land uses are either underperforming or serve only a very focused summer market and contribute little to the community form and function. Several sites are vacant or unoccupied, and in the Beach Area, a fire destroyed much of the buildings fronting onto the Main Street pedestrian mall. The Town wisely acquired a good portion of the remaining Beach lands in anticipation of a strategic municipal response the DDMP. During the course of the development of the DDMP a great deal of discussion was centred on which parts of the Downtown should be the primary focus. There was an agreement that the core area should be compact, at least at first, to ensure that efforts are focused. A compact CIPA within the broader area designated as the Downtown Area in the Official Plan recognizes that the Town s resources are finite and projects should not be too spread out, allowing for the maximum benefit to be captured. It was also agreed during the analysis phase of the DDMP and consultations with the public that the Downtown should be primarily for permanent residents but not ignore the tourism based activities centred around Beach One. The peak summer activity, from an economic perspective, was viewed as an opportunity to support businesses located in the Downtown. These factors underpinned the basic logic for the establishment of two distinct areas, within a walkable distance but with unique functions, that together make up the CIPA. The idea of a town square, to help frame and organize a future Downtown, while at the same time creating a community amenity for special events and celebrations helps further rationalize the boundaries of the CIPA. The Community Improvement Plan Area is shown in Appendix A. These boundaries were adopted by Council in May Overall Approach of the CIP While the Town has exhibited strong growth, virtually all of this growth is occurring outside of the boundaries of the Downtown. Barriers to investment therefore lie largely on the area s 7 P a g e
34 appearance, fragmented pattern of land use and ownership, land uses that are inconsistent with new investment, and outdated planning policies. The overall approach to this CIP is to link the public sector investment proposed in the CIP related to public space and road network enhancements with private sector financial inducements. The programs offered in the CIP are designed to work hand in hand with the other actions recommended in the DDMP to help offset some of the market shortfalls by using financial mechanisms, in the form of grants and loans, to reduce the cost of development and redevelopment in the Downtown area and attract new investment. These financial tools can be used to catalyze new development and investment in early years until a market has been established. The financial incentives that are offered in the CIP will be performance-based and focused on properties that are located primarily along Main Street between Elm Drive and Beach Drive. This includes all properties fronting on both proposed town squares. This area is highlighted as the Priority Investment Area in Appendix A, and is illustrated in detail below. The performance-based criteria used to evaluate the applications will include factors such as location adjacent to one of the two public squares, the inclusion of ground floor commercial / community space, four-storey building heights, high-quality design, demonstrated financial need, and how well the application meets the goals and objectives of the Official Plan and the DDMP. Location of Priority Investment Area for Community Improvement Plan programs 8 P a g e
35 The purpose of this focused approach is to ensure that the limited funds available for these incentives are used efficiently, and to promote priority investment in line with the objectives of the DDMP. 3.3 Prioritization of Affordable and Rental Housing One of the goals of the CIP is to create a broad mix of housing forms in the Downtown that meets the needs of a wide range of residents. This includes not only market ownership units, but also affordable rental, affordable homeownership, and purpose-built rental units. Within the Priority Investment Area, eligible projects may be awarded bonus points in the evaluation scoring if they create affordable housing units. While the incentive programs in this CIP are to be primarily used in the Priority Investment Area, they should also be provided for new affordable housing rental units and new purpose-built rental units throughout the rest of the Downtown boundaries. Incentives are not available for marketrate ownership housing outside the Priority Investment Area. However, affordable and market rental housing projects are encouraged outside of the Priority Investment Area and would be evaluated on a case by case basis in consultation with the County of Simcoe. Outside of the Priority Investment Area, projects are only eligible for CIP incentives if they create affordable rental or market rental housing units and meet specific eligibility criteria including demonstrating the need for Downtown CIP financial incentives in order to make the project financially viable through submission of a proposed development pro forma. Locating affordable housing in the Downtown will improve the lives of a broad range of residents including aging populations who need to live in convenient, walkable locations where they can access amenities and services to meet their daily needs without the use of a car. Providing incentives for affordable housing units in the Downtown that align with the provincial growth forecast and provincial priorities could attract additional funding from senior levels of government to make affordable housing development in the Town more feasible. As per Section 6.0 of the Provincial Policy Statement, 2014, affordable housing is defined as: In the case of ownership housing, the least expensive of: Housing for which the purchase price results in annual accommodation costs which do not exceed 30 percent of gross annual household income for low and moderate income households; or Housing for which the purchase price is at least 10 percent below the average purchase price of a resale unit in the regional market area; In the case of rental housing, the least expensive of: 9 P a g e
36 A unit for which the rent does not exceed 30 percent of gross annual household income for low and moderate income households; or A unit for which the rent is at or below the average market rent of a unit in the regional market area. 3.4 Objectives of the Community Improvement Plan The overall objectives of the community improvement plan are to: Help shift the Town from a seasonal tourism-based destination to a more complete fourseason community; Encourage existing property owners to reinvest in terms of more intensified developments consistent with the directions of the DDMP; Facilitate future growth by encouraging private sector investment in a broader range of housing forms for a greater number of smaller households (as forecasted in Hemson Consulting Ltd. s Development Charges Background Study, 2015), growing the number of senior households, and assisting in the creation of affordable housing; By strategically investing with the private sector, promote the Town for additional downstream investment; Enhance the quality of the public realm in a walkable, pedestrian-friendly environment as an amenity to permanent residents of the Town; Create a focus for community activities and a symbolic heart of the Town to build a sense of community identity and pride; Encourage the renewal and upgrading of tourism-based accommodation; Encourage new tourism activity that attracts broader benefits to the Town in terms of shared amenities, as well as economic spin-offs; Maximize the use and efficiency of in place municipal infrastructure; and, Grow the property tax base. 3.5 Rationale for the Incentive Programs The primary rationale for the financial incentive programs contained in this CIP is to implement the recommendations and vision of the DDMP. The financial incentives will aid in creating a 10 P a g e
37 vibrant, healthy, and pedestrian-friendly Downtown area while aiding to establish a market for new residential and commercial uses that does not currently exist without them. They are also intended to support the creation of affordable and rental housing units within the Downtown. The financial incentive programs provided in this CIP include: Residential / Mixed-Use Development Incentive Program; Tax Increment Equivalency Grant Program; Municipal Application Fee Rebate Program; and, Parking Ratio Exemption. The four financial incentive programs were chosen with the intention of reducing costs associated with new development to catalyze new investment in the Downtown area. These financial incentive programs are expected to offer the greatest impact for future investment in the Downtown. 3.6 General Requirements for the Incentive Programs All financial incentive programs described herein are subject to the following general requirements. These requirements are not intended to be exhaustive. The Town reserves the right to include other reasonable requirements and conditions on a project-specific basis. Approval for annual funding under the financial incentive programs will not be issued on a first come, first served basis, but rather will be based on which application(s) best meet the goals of the Official Plan and the DDMP. The performance-based criteria used to evaluate applications for financial incentive programs within the Priority Investment Area are identified in Appendix B. The criteria may be adjusted from time to time as required. The development of these criteria and their use in evaluation of applications will be at the discretion of Council and the CIP program administration team. Outside of the Priority Investment Area, projects are only eligible for CIP incentives if they create affordable rental or market rental housing units, and meet the following eligibility criteria: Affordable or Market Rental Housing Eligibility Criteria (Outside Priority Investment Area only) 1. The proposed development conforms to the Official Plan and Downtown Urban Design Guidelines. 11 P a g e
38 2. The proposed development implements the Downtown Development Master Plan. 3. The applicant must submit a proposed development pro forma that demonstrates the need for Downtown CIP financial incentives in order to make the project financially viable. Evaluation of new affordable or market rental housing shall be done on a case by case basis on the merits of the application and the demonstrated need to make the project viable. Generally speaking the Town is seeking to encourage significant investments that will have a positive impact on the shaping of the Downtown in terms of its function and appearance. These uses will ideally be three to four storeys in height; The incentives contained herein are for new construction only. Conversions and additions to existing buildings are not eligible for the financial incentive programs in the CIP; Priority shall be given to mixed-use residential developments that include ground-floor retail, office, commercial, or community space. Highest priority will be provided to the properties fronting on the two planned town squares; Outside the Priority Investment Area, the incentive programs herein are only available for affordable housing units and purpose-built rental units that meet the goals of the Official Plan and the DDMP. Applicants must enter into an agreement with the Town to guarantee that any new affordable housing units meet the definition of affordable housing, as defined by the Provincial Policy Statement, in order to secure incentives; A property meeting the eligibility criteria of the financial incentive programs may apply and be approved for multiple incentive programs if it is able to demonstrate the need for funding from multiple programs; Approval of one or more of the financial incentive programs included in this CIP does not preclude the applicant from needing to obtain any other required municipal, provincial, or federal approvals associated with the project; If an applicant is not chosen for financial incentives in any given year, they are still eligible to apply for incentives in subsequent years; All approved projects shall conform to all relevant provincial legislation and municipal bylaws, standards, policies, and procedures; The financial incentives described in this CIP may be used in combination with any other program offered by the Town and/or any other level of government; 12 P a g e
39 At its discretion, Council may sell municipal property at below fair market value to achieve the goals of the Official Plan and the DDMP. An appraisal of fair market value shall be completed to determine the net benefit to a project for the purposes of compliance with subsection 28(7.3) of the Planning Act; At Council s discretion, a maximum annual CIP incentive program amount may be established for total incentives granted to projects. The Town may receive applications that exceed the maximum program amount outlined in this CIP. Council may provide incentives that exceed the defined program funding at its discretion so long as the application meets all other criteria and achieves the goals of the Official Plan and the DDMP; The Town reserves the right to peer review / audit any studies and/or projects approved under a financial incentive program, at the expense of the applicant; The Town is not responsible for any costs incurred by an applicant for any of the financial incentive programs contained herein; The applicant must remain in good standing with the Town throughout the entire duration of the CIP incentive program commitment or the project becomes ineligible for CIP incentives and any incentives received to date shall be returned to the Town. Being in good standing means a property is not in a position of tax arrears, any municipal fees and levies liable on the property or any other property owned by the applicant have been paid, no liens or legal proceedings against the property, not being in litigation of any kind opposite the Town, no outstanding By-law Enforcement, Property Standards, Building, or Fire work orders, etc. For example, any property in a position of tax arrears will be ineligible for any financial incentive program; As per subsection 28(7) of the Planning Act, eligible applicants must be either a registered property owner, assessed property owner, or a tenant of a property to whom the owner has assigned consent to receive assistance under the CIP; The eligible costs of this community improvement plan are those identified in subsection 28(7.1) of the Planning Act, which includes costs related to environmental site assessment, environmental remediation, development, redevelopment, construction and reconstruction of lands and buildings for rehabilitation purposes or for the provision of energy efficient uses, buildings, structures, works, improvements, or facilities; As per subsection 28(7.3) of the Planning Act, the total of the grants and loans and the tax assistance that is provided shall not exceed the eligible cost of the community improvement plan with respect to those lands and buildings; 13 P a g e
40 Works that commenced prior to submitting an application for one of the financial incentive programs are ineligible; The Downtown CIP incentive programs are available for a period of five years from the adoption of the CIP. Applications for CIP incentives shall not be submitted any later than 5 years from adoption of the CIP, unless otherwise determined by Council. After 5 years Council may elect to extend the CIP incentive program; and The Town may discontinue any financial incentive program at any time. Approved properties will continue to receive agreed upon incentives after the cancellation of any program so long as the applicant remains in compliance with the requirements set out in the individual agreement; 14 P a g e
41 4.0 Summary of Incentive Programs 4.1 Residential / Mixed-Use Development Incentive Program Purpose The purpose of this program is to attract more intensive residential and mixed-use development, as well as affordable and market rental housing units in the Downtown area. The grant is meant to catalyze the market for this type of residential / mixed-use development Description Under this program, the Town will provide a grant in the form of a rebate to an applicant equivalent to or a portion of the Town s residential development charge rate. The total amount of incentive provided annually under this program will be at the discretion of Council approval. In addition to the grant for residential uses, a grant in the form of a rebate equivalent to or a portion of the Town s non-residential development charge will also be provided for developments that include commercial / retail space along the ground floor of a mixed-use building in the primary incentive area. In order to ensure completion of any project that is approved under this incentive program, 50% of the total rebate will be provided to the applicant upon the issuance of occupancy permits for half of the residential/commercial units in the project, with the remaining 50% rebate provided upon substantial completion of construction of the project being accepted by the Town. All applications will be considered subject to the availability of funding. If no applications are approved in a given year, consideration should be given to adding unused funding from that year to a reserve for future years in order to respond to any increased future demand for the program. When a market for these uses is deemed to have been established, this program may be discontinued at the discretion of Council. 4.2 Tax-Increment Equivalency Grant (TIEG) Program Purpose To encourage the redevelopment of eligible properties by providing grants equivalent to the incremental increase in municipal property tax assessment and revenue resulting from the property improvements associated with the redevelopment. A TIEG aids in putting lands which otherwise may not be redeveloped, back into productive use. 15 P a g e
42 4.2.2 Description Council may provide grants for an eligible property to an applicant who is the property owner, assessed property owner, or a tenant of a property to whom the owner has assigned consent equal to the full amount, or a portion of the amount of the estimated incremental property tax increase after the property is redeveloped. This assumes that the improvements result in an increase in assessment and taxation. The grant is provided after the improvements to the property have been completed and the property has been reassessed by the Municipal Property Assessment Corporation to ensure that the value of the property has increased. Taxes will be paid in full prior to the grant being issued. The difference in tax values from the pre and post-improvement assessments will be used to calculate the incremental increase in municipal property tax revenue and the total value of the grant. The applicant will pay the full cost of their municipal property tax bill after the increase in assessment. The incremental tax increase will then be refunded by the Town over an established pre-improvement base assessment (based on the time of approval of the application). If a project is phased over multiple years, the grant for later phases will be based on a property re-assessment prior to construction of each phase. The grant will be provided to applicants for five years after the property improvement is complete. Within the Priority Investment Area, the grant will be equal to 100% of the tax increment in years one to three. In years four and five, the grant will decrease to 50% of the tax increment, ceasing thereafter. TIEG applications must be accompanied by: Photos depicting the current condition of the eligible property; Plans, reports, estimates, contracts, and other information necessary to understand the proposed development concept for the property; and, Information on how the development meets the goals of the Official Plan, CIP, and DDMP. TIEG applications shall be approved by Council, by by-law, and the applicant will be required to enter into an agreement with the Town. If the applicant of the approved property defaults on any condition set out in the agreement, it will become void and the grants will become immediately payable to the Town, in full. In the case of a condominium apartment development, the tax savings from the TIEG should be passed to the purchasers of the units as opposed to the applicant/developer. This will incent buyers to consider purchasing a unit and investing in the Downtown, and the applicant/developer will be able to use the property tax breaks associated with the TIEG as a marketing tool, 16 P a g e
43 potentially improving sales absorption rates. By doing this, both the applicant/developer and the purchaser benefit from the incentive program. 4.3 Municipal Application Fee Rebate Program Purpose To encourage the development and redevelopment of eligible properties by providing grants associated with applications under the Planning Act and Building Code Act, 1992, S.O. 1992, c Description The Town may provide grants in the form of a rebate for applications associated with the development or redevelopment of eligible properties. These grants may include the cost of a portion of or all of the following application fees/charges/dedications: Zoning by-law and Official Plan amendments; Minor variances; Site Plan Control; Plan of subdivision / condominium; Building permits; Occupancy permits; Parkland dedication; Demolition Permits; and, Engineering Review Fees (per the Engineering Review Fee Policy). This program includes a grant in the form of a rebate to offset the costs of the aforementioned fees. Applicants are expected to pay these fees at the required times, with planning fees to be reimbursed via a rebate when the project has been approved and a building permit has been issued. Rebates related to building permit fees should be provided upon substantial completion of construction. This ensures that the incentive leads to the actual implementation of the project. This program is only applicable to fees levied by the Town. Fees associated with any outside agency or upper-level of government will be required to be paid by the applicant and are not subject to a grant unless an agreement has been made with one or more of these outside agencies / governments by the applicant. 17 P a g e
44 At the discretion of the Town, an annual cap on the total value of municipal application fee grants may be implemented. 4.4 Parking Ratio Exemption Purpose To aid in reducing the costs of development by exempting new residential / mixed-use development in the Downtown from the pre-determined parking ratio Description Parking, particularly in an underground garage, can be one of the most significant costs for a applicant/developer of a new residential building. Relaxing parking standards would have relatively little financial cost to the Town and a significant savings for many projects. A parking ratio exemption would allow applicants/developers in the Downtown to be exempt from the required parking ratio in the Zoning By-law, through a zoning by-law amendment or a minor variance. This exemption places the onus on the applicant/developer to build only the parking necessary to accommodate the development from a market perspective, subject to approval from the Town. The parking ratio for a new development on an eligible property shall be negotiated with the Town s Planning Department, and the applicant shall provide supporting documentation and market evidence, at the cost of the applicant, for the proposed ratio. 4.5 Other Initiatives Public Realm Improvements In addition to utilizing financial tools to attract new investment in the Downtown, the Town will need to take several measures to signal its commitment to the revitalization process. This includes public realm and streetscape improvements in the Downtown, particularly along Main Street, beginning with the construction of the traffic circle at Main Street and Beck Street recommended in the DDMP. This also includes funding, in part or in whole, the design and construction of the two recommended town squares one at Main Street and Beck Street, and the other in Beach One in order to create community focal points on both the town and beach sides of the Nottawasaga River. These town squares should have consistent programming to attract people and drive positive awareness of the area and the wider Town for residents and tourists. The public realm improvements would make the Downtown a more attractive place, which could shorten the length of time that the financial incentive programs are needed. 18 P a g e
45 4.5.2 Property Acquisition and Disposition The Town may acquire and prepare property, including land and/or buildings, for the purpose of redevelopment within any portion of the CIPA. The Town may also dispose of, including through sale, lease or otherwise, municipal land and/or buildings within any portion of the CIPA for the purpose of achieving the goals and objectives of this CIP. In the event of a disposition of Town land, such disposition shall be carried out in accordance with the Town s By-law governing the disposition of property. Strategies for further land acquisition should be considered in order to aid in the revitalization process. The more land in the Downtown that the Town owns, the more it will be able to participate in shaping the uses and built forms that will be constructed in the Downtown. Land ownership will allow the Town to be a partner with private sector investors on the redevelopment of the Downtown. The Town was forward-thinking when it acquired a significant amount of land in the beach area, and consideration should be given to whether or not further acquisition along Main Street would be worthwhile for the revitalization process. 19 P a g e
46 5.0 Implementation 5.1 Application Process 1. Submission of Pre-Consultation Application Form: Applicant completes and submits the Pre-Consultation application form signaling intent to apply for one or more CIP programs. a. Information from the applicant should include a description of the project and expected time to completion; conceptual site plan and elevation drawings including proposed uses; incentive programs of interest and estimated CIP incentive funding request; and, information on how the project will improve the property and contribute to the goals and objectives of the CIP and DDMP. 2. Pre-Consultation Meeting: Meeting between the applicant, municipal staff, and local commenting agencies to review and provide comments on the development concept, outline the application requirements, cost and timing expectations, and determine eligibility for CIP incentive programs. 3. Pre-Application Screening: To ensure compliance with eligibility requirements and that the applicant is in good standing with the Town. The applicant must remain in good standing throughout the entire duration of the program commitment or the project becomes ineligible for CIP incentives and any incentives received to date shall be returned to the Town. If a proposed project is determined to meet eligibility criteria, the applicant will be provided a Downtown CIP Incentive Application. 4. CIP Incentive Application Submission: Completed CIP Incentive application submitted to the CIP program administration team with all supporting materials required by the Town. 5. CIP Incentive Application Evaluation: The CIP program administration team will evaluate applications based on the criteria outlined in Appendix B. Applicants must demonstrate the need for CIP financial incentives through application submission. The Town reserves the right to request the assistance of consultants for application review. 6. CIP Incentive Application Recommendation: CIP program administration team makes a funding recommendation to Committee of the Whole of Council through a staff report, who then shall make a recommendation to Council. 7. Council Decision: Council vote on providing funding through CIP programs to recommended applicant(s). Council will require a successful applicant to enter into a 20 P a g e
47 legal agreement which outlines all terms and conditions of assistance, including any limitations of the assistance. 8. Notification: Applicant is notified of the decision. If the applicant is satisfied with the decision, the project funding will commence upon the complete execution of an agreement between the Town and the applicant, as may be required by the Town, or at another date as specified by the Town. 5.2 Intake and Evaluation of CIP Incentive Applications CIP Incentive Application intake will occur on a rolling basis to help facilitate development proposals on the part of applicants/developers in a timely fashion. Potential applicants for CIP financial incentives must first apply for and attend a Pre-Consultation meeting with staff to review the conceptual development proposal. An applicant seeking incentives from the Town through the Downtown CIP shall attend a preconsultation meeting with staff in order to determine whether a project is eligible for potential incentives through the Downtown CIP (see Appendix B). A pre-consultation application form can be found here. In advance of the pre-consultation meeting, an applicant must submit a conceptual site plan, elevations, streetscape drawings, and the proposed uses within the building. If a proposed project is determined to meet eligibility criteria, the applicant will be provided a Downtown CIP Incentive Application. Applications for CIP incentive programs will be evaluated by the CIP program administration team. The composition of the CIP program administration team will be as follows, and is subject to change at the direction of Council; Chair of the Downtown Development Master Plan Steering Committee or designate; Director or designate from Economic Development and Tourism Department; Manager or designate from Planning Department; Chief Building Official or designate from Building Department; Director or designate from Public Works Department; and, Director or designate from Treasury Department. Additional Town staff with relevant expertise may be requested to attend evaluation meetings as required. The CIP program administration team will meet in a timely fashion to review and evaluate applications and forward funding recommendations to Council through a staff report. 21 P a g e
48 5.3 Monitoring and Review Timeline The CIP should be monitored on an ongoing basis to track progress towards the stated objectives. The monitoring program will be structured around a number of indicators, as outlined on the following page, and can be undertaken by Town staff. An annual staff report, presented to Council, shall be written with information pertaining to the performance of each of the available incentive programs and the response that they have received. Where possible, these reports should also address the social effectiveness of these incentive programs, particularly as they pertain to the provision of a diverse mix of new housing, including affordable housing units. These annual reports to Council should also be used to inform any future changes to this CIP, or adjustments to any budgeting decisions related to any of the financial incentive programs. CIP Program Program-Specific Indicators Residential / Mixed-Use Development Incentive Program Tax Increment Equivalency Grant Program Planning and Building Permit Fee Rebate Program Parking Ratio Exemption Number of applications received / approved Number of new residential units constructed Amount of new non-residential space constructed (sq. ft.) Value of total grants Value of private sector investment Number of applications received / approved Amount of land redeveloped under program (acres / hectares) Number of new residential units constructed Amount of new non-residential space constructed (sq. ft.) Estimate / actual increase in assessment value of approved properties Estimate / actual amount of municipal tax assistance provided to approved properties Value of private sector investment Number, type, and value of planning and building permit fees rebated Number of new residential units constructed Amount of new non-residential space constructed (sq. ft.) Value of private sector investment Number of applications proposing a lower parking ratio than Zoning By-law requirement Number of new residential units constructed Amount of new non-residential space constructed (sq. ft.) Parking ratio of new developments in the Downtown Value of private sector investment In addition to the annual reports, there should be a detailed review of the CIP policies and performance every five years. This five-year review should be tied to the statutory five-year Official Plan Review. At this time, decisions can be made as to whether new incentives are 22 P a g e
49 needed, existing incentives should be retired, or if the CIP itself has served its purpose and can be discontinued. Any amendments made outside of the five-year review timeframe should be approved by Council. These amendments may include adding or removing a new financial incentive program, amending the amount of financial assistance available under the programs, or a change to the CIPA boundaries. These amendments shall be undertaken in accordance with Section 28 of the Planning Act. 23 P a g e
50 Appendix A Mapping 24 P a g e
51 25 P a g e
52 26 P a g e
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