HomeMy WebLinkAboutCAO-10-004 - Update on Upper Storey Renovation Program & Facade Improvement Grant ProgramREPORT
REPORT TO:
Finance & Corporate Services Committee
DATE OF MEETING:
April 12, 2010
SUBMITTED BY:
Cory Bluhm, Manager of Downtown Community Development
PREPARED BY:
Cory Bluhm, Manager of Downtown Community Development
WARD(S) INVOLVED:
1 and 6
DATE OF REPORT: March 26, 2010
REPORT NO.:
CAO-10-004
SUBJECT:
Update on Upper Storey Renovation Program and Façade
Improvement Grant Program
RECOMMENDATION:
1.
THAT clause 4.1.1 of Council Policy I-535 be modified to enable up to $175,000 in
façade grant funding for 2010, while reducing the amount for 2013 to $25,000 ; and,
2.
THAT the remainder of this report be received for information purposes.
BACKGROUND
The City of Kitchener administers a variety of financial incentives in Downtown Kitchener,
including the Upper Storey Renovation Program (USRP) and the Façade Improvement Grant
Program (FIGP). Both programs are approved as part of, and administered based on,
Community Improvement Plans approved by the Province.
REPORT
Upper-Storey Renovation Program (USRP) Update
The USRP was initiated in 2005, offering loans for the rehabilitation of underused upper-storey
floor space for residential purposes. In its five year existence, the following results occurred:
Approved Applications: 7
Completed Projects to Date: 6 Projects Outstanding: 1
Units Created to Date: 26 Units Still to be Created: 3
New Potential Downtown Residents: ~38
Total Value of Repayable Loans (for all 6 completed projects): $244,625
Total Value of Forgivable Loans (for all 6 completed projects): $244,625
Estimated Total Private Sector Investment (for all 6 completed projects): $1.46 million
Total Construction Value to Date: $1.7 million
Estimated Total Private:Public Sector Investment:
5.9:1
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The USRP expired on December 31, 2009. As a result, the City can no longer approve any new
applications. As part of the Downtown Strategic Plan (2010 Strategic Themes & Actions),
Council has directed staff to evaluate all of our residential financial incentives. Staff will
undertake this research in the Fall of 2010, with recommendations for Council’s consideration in
early 2011. Staff will include the USRP as part of the evaluation process, to determine if the
USRP should continue in its current state, continue under modifications, or lapse in its entirety.
Façade Improvement Grant Program (FIGP) Update
2009 was the first year of the five year FIGP. Building and business owners may apply for
grants to assist with exterior façade improvements (fascia, signage, entryways, windows, etc.).
Applicants can receive up to $10,000 per storefront or facade, where the applicant covers a
minimum of 50% of the total costs. Buildings with multiple storefronts can receive grants of up
to $30,000. Council authorized staff to issue up to $200,000 worth of façade grants in 2009, with
the following results:
2009 Summary:
Number of Applications Approved:
12
Number of Applications Completed to Date:
4
Number of Applications Commenced but not Completed:
5
Number of Applications to Begin in 2010:
2
Number of Applications Withdrawn:
2
Value of Grants Issued to Date:
$65,500 (of $175,500)
Total Value of Completed Construction to Date:
$252,200 (of an estimated $546,800)
Estimated Total Private:Public Sector Investment to Date:
2.9:1
2010 Summary:
In 2010, staff are currently authorized to issue up to $124,500 worth of façade grants ($100,000
plus $24,500 carried over from 2009). The initial deadline for applications was December 22,
2009.
Number of Applications Received:
9
Value of Grants Applied For:
$114,500
Estimated Total Value of Proposed Construction:
$395,000
While staff are still negotiating final approvals, should all applications be successful, staff would
have $10,000 to distribute for the remainder of 2010. That is the equivalent of one façade
application. Staff have already been contacted by six potential applicants who, if funding is
available, would be interested in completing facade enhancements in 2010. In addition, the
Downtown Kitchener BIA and City will be undertaking a business attraction strategy to try and
attract new retailers and restaurants. The facade grant could be used as an incentive to attract
these businesses.
To capture existing development interests in 2010, staff suggest increasing the 2010 grant
application from $100,000 to $175,000. This would allow the City to issue up to $199,500 worth
of grants in 2010 (including the remaining $24,500 from 2009). The City would reserve $50,000
specifically for prospective retail and restaurant tenants, to assist in business attraction efforts.
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FINANCIAL IMPLICATIONS
Sufficient cash flow exists within the Façade Loan/Grant account to fund the advancement of
funds to 2010. Funds will only be transferred once grants are ready to be issued to applicants,
thus maximizing the amount of interest earned by the fund. Funding for subsequent years will
be reviewed annually to determine the amount of cash flow available, prior to each call for new
applications.
COMMUNICATIONS
This report was reviewed by both the Downtown Advisory Committee and the Downtown
Kitchener BIA. Both committees passed motions in support for the recommendations as written.
CONCLUSION
Staff recommend that funding for the FIGP be accelerated from 2013 to 2010 to capture existing
development interest.
ACKNOWLEDGED BY:
Rod Regier, Executive Director of Economic Development
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