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

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NetEligible Remediation Costs$5,208,565.00 The TIG would be cost-shared between the Region and the City of Kitchener with grant property in the year the application was submitted (2011). Property taxes in 2011 determine that approximately 61.1% (maximum of $3,182,877) of the TIG would be provided by the Region and the remaining 38.9% (maximum of $2,025,689) would be provided by the City of Kitchener. The Cityncremental tax revenue following the phased redevelopment of the property. The Applicant has requested a six phase TIG. Annual payments are expected to last between one and six years for each phase and payments for the first two phases could start as early as 2019. REPORT: Environmental Remediation and Eligible Costs The Phase Two Environmental Site Assessment confirmed the presence of petroleum hydrocarbons and heavy metals in the soil and/or groundwater exceeding Ministry of the Environment and Climate Change standards. The site has been fully remediated and a Record of Site Condition has been filed. City of Kitchener and Regional staff have conducted a detailed multi-year review of the Remedial Work Plan for the site, all subsequent soil testing and disposal work, as well as all submitted invoices. Based on this review, a total of $7,135,059 in direct remediation costs could be substantiated and are accepted as eligible remediation costs for the site. This amount plus a 10 per cent allowance for indirect costs afforded under the joint TIG program ($713,506), results in a net maximum eligible joint TIG of $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 potential Total Tax Increment Grant net of other assistance for Victoria Common is $5,208,565. No other brownfield financial assistance is pending for this development. Joint TIG Calculations and Payment Schedule The estimated payment schedule for the joint TIG is based on the following information: 10 - 3