DSD-18-031 - Brownfield Remediation Program Application - 1 Adam Street (Victoria Common)

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BACKGROUND: In September 2011, the City of Kitchener and Region of Waterloo received a Joint Tax Increment Grant (TIG) application from 1841362 Ontario Ltd. (the Applicant) for the remediation and redevelopment of Victoria Common in Kitchener. The property was municipally known as 1 Adam Street, 340 Louisa Street, and 175, 217 and 225 St. Leger Street (please see location map in Attachment A). The 6.12 hectare (15.1 acre) property is a former industrial property that once included a tannery, a woodworking shop and several auto- related businesses. The property, now known as Victoria Commons, is a transit oriented development that is a strong example of reusing underutilized, contaminated lands for intensified residential infill uses. The first three phases included the construction of 208 townhouses and 191 condominium units. An additional 551 condo units are expected in the next three building phases. This TIG would represent the seventh successful joint Municipal and Regional TIG application with approved grants contributing to the development of approximately 1,549 residential units, 55,700 square metres of office and retail space, 39 acres of remediated industrial land and an estimated total post redevelopment tax assessment increase of $528,891,272 vs a pre- redevelopment tax assessment of $8,075,250.00. Based on a detailed assessment of the remediation information and invoices provided, a total of $7,135,059 in direct remediation costs are considered eligible for this TIG. With a 10 per cent allowance for incidental costs afforded under the TIG program ($713,506), the total maximum potential TIG (before deductions for brownfield financial assistance) is $7,848,565. In September 2013, the Regional Municipality of Waterloo approved a Phase Two Environmental Site Assessment Grant of $20,500 and a Brownfield Regional Development Charge Exemption of $2,619,500 for the site. Therefore, the total maximum potential TIG, net of other assistance, for Victoria Common is $5,208,565. Remediation of the site is complete and no other brownfield financial assistance is pending for this development. Eligible Remediation Costs (including 10% allowance)$7,848,565.00 Less other Brownfield Financial Assistance Regional ESA Grant$ 20,500.00 Regional DC Brownfield Exemption$ 2,619,500.00 Total Brownfield Financial Assistance$2,640,000.00 10 - 2