1 Proposed Development at Ajax Plaza Windcorp Grand Harwood Place Ltd. Presentation to Ajax Council July 4, 2013
2 Introduction 1. Background 2. Planning Policies and Regulations 3. Downtown Community Improvement Plan 4. The Vision 5. The Proposed Development 6. Servicing 7. Economic Feasibility Analysis 8. Parking Implications 9. Agreement Overview 10. Related Processes 11. Communications 12. Next Steps Ajax Plaza late 1950 s
3 Background Initial shops opened in September,1951. Plaza buildings were developed incrementally up until the early 1960 s. In 1953 and 1956, land for the municipal parking lot was transferred by CMHC to the Improvement District of Ajax. The Plaza is currently divided amongst 31 separate owners. The Town is the largest land owner and holds the east and west parking lots store front walkways and other vacant lands.
4 Background Issues related to flawed design and awkward land development pattern are well known: Poor image; Poor definition between public and private property; Awkward property pattern makes land assembly for urban mixed use redevelopment difficult; Undesirable land uses; Outdoor storage; Lack of screening of garbage, servicing and utility functions; A number of areas have fallen into disrepair, including building facades, walkways and pavement areas; Municipal liability for on-going maintenance of public property.
5 Town of Ajax Official Plan Commercial Mixed Use - permits a broad range of retail, service commercial, office, and residential uses: Encourages a combination of uses within each building or on the property; Front facing buildings close to the street. Two east-west future local roads are shown. Intent: Establish a lively and active mixed use shopping district including single use, live-work and mixed use developments characterized by high-quality design standards; Flexible transportation options; Achieve urban densities; Encourage pedestrian activity along the street and enhance public transit use. Ajax Plaza
6 Town of Ajax Zoning By-law Downtown Central Area/Mixed Use DCA/MU : Permits commercial uses, financial institutions, hotels, offices, personal services shops, places of entertainment, restaurants, retail stores up to 4,654 m 2 (50,000 sq. ft.); Permits residential uses including townhouses, multiple attached dwellings and apartments; Prohibits drive-through facilities, drive-through restaurants and taxi depots; Development standards regulate building setbacks, minimum building heights, parking standards, lot coverage, etc. Minimum density of 1.25 FSI is required.
7 Downtown Community Improvement Plan (CIP) Establishes the framework for investment - under s. 28 of the Planning Act; A priority site Authorizes the use of incentives including: Exemptions from Town of Ajax development charges; Rebates from planning and building permit application fees; the ability for tax increment financing to be offered by the Town.
8 Visioning Downtown Ajax - current
9 Visioning Downtown Ajax
10 Visioning Downtown Ajax
11 Visioning Downtown Ajax
12 Development Approach Break-up the superblock : Create the ability for urban scale development blocks than can be redeveloped separately; Create a new urban road pattern; Improve pedestrian connections; Establish additional street frontages for new high density mixed use buildings; Make improvements to the pedestrian environment along all streets.
13 Centre Block Aerial Rendering Urban mixed use development based on a grid pattern of public streets; Two 8 storey residential condominium towers on a street related retail/office podium (total height 10 storeys); Stacked condominium townhouses (Phase 1B); Underground and decked parking.
14 Proposed Phase 1A Two residential towers would comprise 134 units each; Podium would provide 65,455 sq. ft. of office and retail space facing Harwood Avenue; 31,861 sq. ft retail space; 33,583 sq. ft. office space; Utility Lands - Includes 3 southerly lots/buildings in the plaza to accommodate servicing, access and a road connection; Public roads would surround Phase 1A development and would remain in Town ownership. Utility Lands
15 Phase 1A Street Level Looking South Retail uses and entranceways at street level encourage pedestrian activity; Offices and condominium residences above grade; High densities and a mix of uses.
16 Phase 1A - Sections North South East West
17 Phase 1A Terrace Level Residential condominium units overlook a roof garden a common green space for the residents of the development. Stacked town houses in Phase 1B would overlook and have direct access to the roof garden. The garden would be above the parking deck.
18 Phase 1A - Residential Unit mix would include: 1 bedroom; 1 bedroom + den; 2 bedroom and; 2 bedroom + den.
19 Proposed Phase 1B Behind the towers would be 112 stacked townhouse units: 28 units would be developed on the east side of a new local street (from phase 1A); 84 units would be developed between the new local street and Commercial Avenue; Underground parking; Extension of Kings Crescent to Commercial Avenue.
20 Phase 1A and 1B Interior Looking Southeast Harwood Avenue is the focus: Buildings heights reduce with distance from Harwood Avenue; Stacked townhouses would be developed as part of Phase 1B.
21 Servicing Sanitary Servicing The proposed development and future development to the north would discharge to the Monarch Avenue sewer; Sanitary main under Commercial Avenue to be relocated; Potential future development to the south would discharge to the Kitney Drive sewer. Water Water distribution would follow the road network, connecting to Harwood Avenue and Commercial Avenue; Upgrades may be required where breakages have occurred in the past. Stormwater Management Relocation and upsizing of storm sewers required on Commercial Avenue from Hunt Street to Station Street; Stormwater management controls are required to minimize impact on the Harwood Avenue storm sewer.
22 Parking Demand and Utilization Study November /December, 2012: Parking Demand and Utilization Study undertaken to determine how the parking areas at the plaza are currently being used and to determine current parking need. Parking area divided into 6 zones - each zone assessed based on actual use.
23 Parking Demand and Utilization Study 73 spaces 43 spaces 217 spaces 74 spaces 44 spaces 112 spaces 563 surface public parking spaces in Phase 1 and 2 areas.
24 Parking Demand and Utilization Study 66 spaces used 36 spaces used 74 spaces used 156 spaces used 18 spaces used 46 spaces used 396 parking spaces used
25 Parking Demand and Utilization Study (7 surplus) (7 surplus) (61 surplus) (0 surplus) (26 surplus) (66 surplus) Total: 127 surplus parking spaces in the Phase 1 area. Parking Turnover is greatest in Zones 1, 5 and 6 (along Harwood Avenue and Station Street)
26 Interim On-Site Parking Strategy Sales Phase (Pre-construction) Approximately 8 parking spaces displaced by proposed Sales Pavilion; Construction of Sales Pavilion to commence in the fall of 2013.
27 Interim On-Site Parking Strategy Phase 1A South Building During Construction To ready the Phase 1A development site, the Utility Lands will be required for servicing, access and temporary parking; The Phase 1A south building site and staging area will displace 153 parking of the total 217 spaces; 78 parking spaces will be provided temporarily within the Road 1 right-of-way and Utility Lands while the south building is under construction opens access to surplus parking at the rear of the plaza. 44 parking spaces will be provided at the north end of the plaza (south of Station Street); 41 parking spaces remain unaffected.
28 Interim On-Site Parking Strategy North and South Building - Phase 1A only 91 parking spaces will be provided temporarily within Road 1 and the Utility Lands until Phase 1B redevelops; Access to surplus parking at the rear of the plaza remains; 44 parking spaces at the north end of the plaza remains.
29 Economic/Financial Feasibility Study Challenge to assemble the site in a cost effective manner. Market value of Phase 1 would be completely negated by acquisition and demolition costs; Market for high density residential development is limited; Underground parking adds significantly to construction costs beyond typical projects in the Region. The local market will make it difficult to recover costs of underground parking for office and retail components; Developer is taking additional risk as a first new condominium entrant into the downtown Ajax market.
30 Economic/Financial Feasibility Study Benefits A catalyst for the redevelopment of the remainder of the Plaza; 94 jobs in retail/service, and 112 jobs in office (total 206 jobs); The Town would collect $167,000 annually in property taxes from Phases 1A and 1B, compared to $52,000 from the current Phase 1 properties. The Region would collect $272,000 compared to $85,000 currently. The school boards would collect $291,000 compared to $92,000 currently; After 2025, Phase 1A and 1B would generate $659,000 in property taxes annually for the Town; $1,018,000 for the Region; and $1,092,000 for the school boards; Total construction costs for Phase 1A and 1B estimated at $118.7 million. This would generate approximately $60.7 million in labour income and 1,100 person years of employment during the construction period.
31 Community Improvement Plan Incentives Program Description Amount Total Value Rehabilitation Grant Program (TIF) Planning and Development Fees Grant Program Development Charge Exemption/Grant Program Reduced Parkland Dedication Program Rebate of 80% of the increase in the municipal property taxes until December 31, Full rebate of development application processing fees. Full exemption of the Town s Development Charges for residential, commercial and office development. Charge of 5% of the value of the land prior to development as opposed to 1 hectare per 300 dwelling units. Town will collect $254,379 as opposed to $2,692,279 $4,916,642 $4,916,642 Site Plan Application Fees: $121,722 Building Permit Fees: $340,788 Demolition Fees: $1,599 $2,543,758 Difference between 1 ha per 300 du valuation and 5% valuation: $2,437,900 $464,109 $2,543,758 $2,437,900 Total $10,362,409
32 Agreement Lands to be Sold Approximately 0.95 hectares (2.35 acres) in size; Area does not include a 20 metre (66 ft.) right-of-way around the perimeter of the site, to be retained for public road purposes in front of the existing shop fronts; Total price of $2,820,000 ($1,200,000/acre); Purchase price would be reduced if onsite environmental contamination or hazardous materials are discovered.
33 Agreement Principles Sale of a portion of the Town owned plaza parking lot would be applied as an incentive to acquire privately owned properties to enable redevelopment. In order to provide an incentive for the redevelopment of the Utility Lands Phase 1B, the Town would provide a credit back to the Developer on the purchase price of the Town owned Phase 1A Lands - if Phase 1B is assembled. Utility Lands Phase 1B Phase 1A
34 Agreement The purchase price would be reduced by Eligible Assembly Costs of acquiring the Utility Lands and the privately owned Phase 1B Lands, as follows: acquisition costs; demolition costs; environmental remediation; servicing relocation costs under the existing Commercial Avenue right-of-way. If the Developer does not acquire the Phase 1B lands, then the reduction to the purchase price by the Eligible Assembly Costs (with the exception of the servicing relocations) would not apply.
35 Agreement Land Assemblies Required As a requirement for Phase 1A, the Developer is responsible for acquiring and removing 3 buildings on the Utility Lands. The Developer has up to 2 years from the date of execution of the agreement to enter into purchase and sale agreements with the owners of the Utility Lands, following which the Town would agree to commence expropriation. Expropriation (if necessary) would not commence until: the economic feasibility of the development is satisfied or waived by the Developer; The developer is satisfied with the geotechnical, soil and other investigations; The Town has granted site plan approval for the development.
36 Agreement Phase 1B The Developer will use its reasonable commercial efforts to acquire the privately owned Phase 1B Lands, from 6 months up to 3 years after the Execution Date. Reasonable commercial efforts would mean that the Developer has obtained an appraisal of the market value for each parcel in the Private Phase 1B Lands that it has been unable to acquire and has provided evidence to the Town, including a copy of the appraisal, that it has made reasonable commercial efforts to acquire the parcel at the appraised market value.
37 Agreement Sustainable Elements Provisions for roughed-in conduits for plug-in electrical vehicles; On-site bicycle parking in weather-protected secure areas; Weather protected pedestrian areas and pedestrian specific lighting; Provisions for planting large growing shade trees at 6-8 metre intervals; Environmentally Conscious Roofing Systems; Measures to minimize stormwater runoff, including measures to manage and clean stormwater that leaves the property; The use of water efficient plant material and a minimum of 50% native species; Bird friendly design elements; Measures to minimize light pollution; Dedicated areas for storing and collecting recycled materials and organics; Recycling at least 75% of non-hazardous construction debris.
38 Agreement Downtown CIP Incentives: Rehabilitation Tax Rebate Program The Town would provide a property tax rebate of 80% of the incremental difference between the property taxes capable of being provided from the Phase 1A Lands on the Execution Date and the date of occupancy; Planning and Development Fees Grant & Development Charge Exemption/Grant Programs The Town would provide a rebate of all development application fees, and an exemption of all Town of Ajax Development Charges for the Development; Reduced Parkland Dedication Program The Town would accept a reduced requirement for cash-in-lieu of parkland based on the ratio of 5% of the land area for residential development and 2% of the land area for non-residential development. The amount would be payable on the Closing Date.
39 Agreement Assistance with Other Incentives The Town would support the Developer by making submissions to the Region under the Regional Revitalization Program, and would provide support for programs offered by the Province under the Brownfields Tax Incentive program to enable a reduction in education property taxes to offset potential site remediation costs, if applicable.
40 Agreement Component Timeframe Execution Date - date agreement signed. July, 2013 Stopping Up of Phase 1A Lands - within 90 days of Execution Date. October, 2013 Site Plan Application Submission January 15, 2014 Developer satisfied with soil, geotechnical and environmental state of Phase 1A Lands days after the Execution Date. Site Plan Approval - subject to receipt of a complete application and diligent responses to municipal comments. Developer satisfied with the economic feasibility of the development - first anniversary after the Execution Date, with the right to two, 6 month extensions up to 24 months. Closing Date: 90 days after which all of the Purchaser s conditions have been satisfied. Construction Commences: Not later than 3 months from the Closing Date. January, 2014 January 15, 2015 July, 2015 September, 2015 December, 2015
41 Other Processes Downtown Ajax Road Connectivity Environmental Assessment The study will recommend improvements to the road network to facilitate future intensification. The study area will be from Station Street to Hunt Street and from Commercial Avenue to Harwood Avenue. The project will: plan for vehicle and pedestrian facilities; recommend improvements to traffic flow and congestion; improve connections for pedestrians; provide a long term plan for a road network that supports redevelopment and intensification of Ajax Plaza.
42 Other Processes Expand Retailing Permissions on Neighbouring Lands Designated Downtown Central Area - Employment Mixed Use : a transition area between the mixed use areas of the Downtown and employment lands to the west; allows for retail and wholesale sale up to 100% of the Gross Leasable Floor Area of the building, but any individual retail use may not exceed 4,645 square metres (50,000 sq. ft.) in size. Retail Stores are not currently a permitted use within the Zoning By-law. A Town-initiated zoning by-law amendment to permit retailing as allowed within the Town of Ajax Official Plan is appropriate.
43 Communication/Consultation Process Three Components: i. Communicating the Plan ii. Engaging Stakeholders and Businesses iii. Marketing Opportunities for Public Input: i. Planning Review process ii. Environmental Assessment Public Information Centre iii. Town-initiated Zoning By-law Amendment Consultation will take place in a coordinated fashion, to enable public to obtain information and provide input on all initiatives at the same venue.
44 Next Steps i. July, 2013: Agreement Executed; ii. Starting July, 2013: Marketing, Sales Pavilion and Signage; i. Summer, 2013: Discussions with affected stakeholders; ii. iii. Fall, 2013: Stop up and close road allowance; Late, Early, 2014: Public Consultation: i. Proposed Development; ii. Downtown Ajax Road Connectivity Environmental Assessment; iii. Town initiated Zoning By-law Amendment to Expand Retailing Permissions to the west.
45 Thank You! 206 jobs by project completion; Total construction costs estimated at $118.7 million; Approximately $60.7 million in labour income; 1,100 person years of employment during the construction period; Satisfies the Vision for urban mixed-use pedestrian oriented development in the Downtown.
The Corporation of the Town of Ajax GENERAL GOVERNMENT COMMITTEE Thursday, July 4, 2013 In-Camera at 1:00 p.m. Open Meeting at 2:00 p.m. River Plate Room, Town Hall 65 Harwood Avenue South PRESENTATIONS
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