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Home My WebLink AboutDSD-19-187 - Provincially Significant Employment Zones ConsiderationREPORT TO:Community & Infrastructure Services Committee DATE OF MEETING:August 12, 2019 SUBMITTED BY:Alain Pinard, Director of Planning, 519-741-2200 ext. 7319 PREPARED BY:BrandonSloan, Manager, Long Range & Policy Planning, 519- 741-2200 ext. 7648 WARD(S) INVOLVED:Wards 3 & 5 DATE OF REPORT:August 1, 2019 REPORT NO.:DSD-19-187 SUBJECT:Provincially Significant Employment Zones Consideration RECOMMENDATION: THATthe Ministry of Municipal Affairs and Housing be requested to consider the lands outlined in Appendix A to Report DSD-19-087, which includes the Huron Business Park and the adjacent General and Heavy Industrial Employment areasto the east, as part of the Phase 2 review of Provincially Significant Employment Zones; AND FURTHER THATstaff discuss this matter with the Economic Development Advisory Committee. BACKGROUND: In May 2019, the provincial government the Greater Golden Horseshoe. Within it, the province introduced a new concept-Provincially 1 Significant Employment Zones parks or traditional manufacturing districtsthat play a prominent role within the economy.They must be designated as employment areas in aThe primary purpose is to ensure there is policy protection for strategically located areas of high economic output that provide opportunities for employment and coordination between land use planning, economic development and infrastructure investment. The province is undertaking a multi-phased approach to the identification and confirmation of Provincially Significant Employment Zones (PSEZs). Within Phase 1, there were 29 areas 2 identified as PSEZs; however, there are none inKitchener.The citiesof Waterloo, Cambridge, 1 Areas defined by the Minister in consultation with affected municipalities for the purpose of long-term planning for job creation and economic development. Provincially significant employment zones can consist of employment areas as well as mixed-use areas that contain a significant number of jobs. They are separate from an Urban Growth Centre and its policies. 2 A very small portion of PSEZ #23 (Cambridge North-Toyota area) has some land that is technically within the City of boundary, which is unresolved at this time and is intended to be considered in the provincial Phase 2 review. 7 - 1 Guelph and Hamilton all have business parks/industrial areas that are currently identified as provincially significantalong with the east side lands in the Region of Waterloo. The Ministry of Municipal Affairs and Housing is now proceeding with Phase 2 Requests for Reconsideration. This phase includes an in-depth reviewof municipal requests for boundary realignments or submissions to identify new areas. As part of the process, the province requires aCouncil resolution for any new submissions to be considered. tings with the Ministry and Region of Waterloo. REPORT: Kitchenereconomic sectoris rooted in manufacturing. Manufacturing employment still represents 18% of the overall regional employment, which is the highest sector.Industrial employmentuses are a vital component of a diversifiedand vibrant economy, a complete and healthy community, and provide necessary jobs for our residents. Lands that are identified as a PSEZ are to be protected in the long-term for industrial and business park employment uses while lands that are not are subject to less stringent policies to protect their employment function and more at risk for conversions to non-employment uses. 3 Considerations for assessment Any request for boundary changes or new zones will bereviewed based on how the proposal supports regional and provincial economic development, the local planning context, and if the municipality supports it. The land in the request may: be located inside the settlement area and not in the Greenbelt not be under appeal at the Local Planning Appeal Tribunal be located near infrastructure for major transportation or movement of goods have a high concentration of employment have a high economic impact or play an economic or strategic role to the region be vulnerable to conversion to non-employment uses include development potential for employment uses share a common border with an existing zone Requested Area Planning and Economic Development staff reviewed a number of locations designated and used for industrial and business park employment with the city.Currently, the industrial vacancy rates is 1.5%, which is unprecedented.The largest and most contiguous industrial/business employment area that has multiple connections to major transportation corridors is theproposed locationoutlined in Appendix A. Thisarea is almost 600 hectares in size and includes the Huron Business Park and the large Heavy and General Industrial Employment lands between Homer Watson Boulevard and Wabanaki Drive. These lands play a key role and have a high economic impact to the region This area is equally as competitive on the provincial scale (and beyond) as other PSEZs identified in the Greater Golden Horseshoe and may equally merit long-term protection for skilled employment jobs. 3 Content is from https://www.ontario.ca/page/provincially-significant-employment-zones#section-2 7 - 2 This location includesa high concentration andrange of manufacturing and industrial businesses along with some office space and supporting services.Portions of the area are vulnerable to conversions (lands at Bleams/Homer Watson were redesignated and rezoned from industrial to commercialthrough an OMB process). This area does include further potential for development to complete the Huron Business Park and other redevelopment potential to more intensive employment uses. It does not share a common borderwith another PSEZ.There are only a few remaining parcels of undeveloped industrial land left in the city. Therefore,critical employment landsneed to be protected for the long term. Next Steps Provincial staff recently indicated that they intend to conduct direct discussions with Planning and Economic Development staff from both lower and upper tier municipalities on any requests as part of their Phase 2 work. This is to occur within the next month or two. The review and 4 decision-making may be compressed. Should Kitchener wish to meetwith provincial staffand discuss any considerations about these type of employment areas, we are advised that Council support is needed.The purpose of this report and recommended council resolution is to ensure the city has a seat at the tableto discus the possibility of a PSEZ in Kitchener. No recommendation on a final PSEZ is being made at this time. According to the provincial information, essentially the process involves:1) Request, 2) Evaluation including meeting, 3) Agree, 4) Submit Council endorsed letter including support based on the consensus reached between upper-and lower- that City and Regional Planning and Economic Development representatives would meet with Regional staff have reviewed this report. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: VIBRANT ECONOMY conditions that will make Kitchener an ideal destination to start, move or grow businesses in a variety of industries. FINANCIAL IMPLICATIONS: N/A COMMUNITY ENGAGEMENT: INFORM council / committee meeting. CONSULT Staff recommendsthat Advisory Committee during thePSEZ review process. 4 The City is participating in the recently initiated Region Official Plan review, which includes an assessment of all employment lands. Given recent experience, it is highly likely that this provincial review will conclude prior to the regional review and staff do not want to miss the opportunity. 7 - 3 CONCLUSION: The contiguous area consisting of the Huron Business Park and the industrial lands from Homer Watson Boulevard to Wabanaki Drive represent a significant amount of employment land. Industrial and business park employment is key to the history of Kitchener, a diversifiedand evolving economy and the provision of jobsin our community. This area is worthy of being considered significantfrom a provincial standpoint. Staff will be making asubmission to the province requesting consideration of this area.In order to capitalize on the immediate opportunity to meet with the Ministry on this topic, a Council resolution of support is required. REVIEWED BY: Brian Bennett, Manager, Business Development Tim Donegani, Senior Planner Alyssa Bridge, Supervisor, Regional Official Plan Review, Region of Waterloo ACKNOWLEDGED BY: Justin Readman-General Manager,Development Services Attachments: APPENDIX A Subject Area for Consideration 7 - 4 R D E N A B V A A W E I Z N I K O D R D U O T I N A M S T S N I L K N A R F C B I E H D R D R S TH SE L N L O XE I S DEH ELL D Y R D I W R E L T S A R . O G N . C R R D O O W L R D N A I R A P L O D U L R D K OO DR N AI ER L W O H R D S 7 - 5