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HomeMy WebLinkAboutDTS-10-097 - Kitchener Energy and Water Efficiency for Land & Buildings Community Improvement Plan REPORT REPORT TO: Development and Technical Services Committee DATE OF MEETING: June 7, 2010 SUBMITTED BY: Alain Pinard, Interim Director of Planning PREPARED BY: Leon Bensason, Coordinator, Cultural Heritage Planning (519-741-2306) WARD INVOLVED: All DATE OF REPORT: May 5, 2010 REPORT NO.: DTS-10-097 SUBJECT: KITCHENER ENERGY AND WATER EFFICIENCY FOR LAND AND BUILDINGS COMMUNITY IMPROVEMENT PLAN RECOMMENDATIONS: That the proposed by-law dated May 7, 2010 attached as Appendix ‘A’ to DTS-10- 097, be adopted to designate the Community Improvement Project Area for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan; and, That the proposed by-law dated May 7, 2010 attached as Appendix ‘B’ to DTS-10- 097, be adopted to approve the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan; and further, That the Kitchener Green Housing Incentive Program proposed as part of a Local Environmental Action Fund (LEAF) application approved in 2009, form part of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan, attached as Appendix ‘C’ to Report DTS-10- 097. BACKGROUND: Ontario municipalities are generally prohibited from granting bonuses or incentives to private enterprises, directly or indirectly, through the restrictions of the Municipal Act. An exception to this general rule is provided through Part IV Section 28 of the Planning Act. Section 28 allows municipalities, where there are provisions in its Official Plan relating to community improvement, to designate by Bylaw, a “Community Improvement Project Area”, and subsequently provide for the preparation of a “Community Improvement Plan”. Community improvement planning provides a means of planning and financing activities that relate to the effective use, reuse or restoration of lands, buildings and infrastructure. Through a Community Improvement Plan municipalities can: ïî ó ï focus public attention on local priorities and specific municipal initiatives; target areas in transition or in need of repair, rehabilitation and redevelopment; facilitate and encourage community change in a co-ordinated manner; and, stimulate private sector investment through municipal incentive-based programs. The City of Kitchener has previously used Community Improvement Plans for residential neighbourhood restoration, commercial area improvements, downtown incentives, and adaptive re-use and brownfield remediation. Common to these and all CIP programs is the alteration of the physical landscape so that public benefits can be achieved, resulting in more socially cohesive, environmentally friendly and/or economically sound communities. In 2007, Kitchener City Council approved the creation of a five million dollar Local Environmental Action Fund or LEAF. The goal of LEAF is to reduce or repair Kitchener’s impact on the environment focusing on the reduction of greenhouse gases, and to enhance the ability of the Kitchener community to live sustainably into the future. In 2009, a LEAF application from Community Renewable Energy Waterloo (CREW) to establish a Kitchener Green Housing Incentive Program was received, and funding in the amount of $500,000 over three years was approved. The intent of the Kitchener Green Housing Incentive Program is to offset as much of the direct building impacts on energy, water and waste as possible for new home construction. Residential dwellings built and certified to LEED standards would receive a financial incentive in the form of a grant. The amount of the grant is incremental dependent upon the LEED performance level. For example, a single detached dwelling built to a LEED platinum standard would receive a larger grant than a single detached dwelling built to the base LEED certification standard. During the evaluation of the application by the LEAF Steering Committee, it was noted that the provision of a financial grant to the building industry via the Kitchener Green Housing Incentive Program, would necessitate the establishment of a new Community Improvement Plan (CIP). REPORT: As Ontario’s economy continues to be shaped by global economic, environmental and social trends; there is a need to build, reinforce and reshape our cities to meet global and local challenges in ways that reduce the impact on our environment. The need to establish a Community Improvement Plan to enable the implementation of the Kitchener Green Housing Incentive Program provides the City with a unique opportunity to prepare a Plan that broadens its scope to support and implement strategies relating to energy and water conservation. Kitchener Energy and Water City staff have drafted a Community Improvement Plan entitled the Efficiency for Land and Buildings Community Improvement Plan ( attached as Appendix ‘C’ to this report). The goal of the Community Improvement Plan is to encourage the construction or reconstruction of buildings or the use of land, in a way that achieves measurable improvement or efficiency in energy and water conservation. This goal is consistent with policy directives at the provincial, regional and local levels. This includes recent changes to the Planning Act which add theimprovement of energy efficiency to the definition of “community improvement”; and the provision of energy efficient uses, buildings, structures, works and improvements or facilities, to the scope of eligible costs for which municipalities can provide community improvement grants or loans. ïî ó î The Community Improvement Plan would enable the City to proceed with the implementation of the Kitchener Green Housing Incentive Program, and additionally, makes provision for the possibility of adding other qualifying programs to the Community Improvement Plan, by amendment. Programs qualifying under the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Planshall meet the following program parameters: Program(s) may offer grants, loans, refunds, exemptions, tax increment-equivalent financing or other incentives and assistance to registered owners, assessed owners and tenants of lands and buildings within the community improvement project area, and to any person to whom such an owner or tenant has assigned the right to receive such financial incentive to pay for the whole or any part of the eligible costs of the community improvement plan, subject to available funding. Program(s) shall relate directly to achieving energy or water conservation objectives and shall address but not necessarily be limited to one or more of the following: -air quality through the reduction of emissions harmful to the environment; - water efficiencyby reducing water demand or maximizing the re-use and recycling of water; -energy conservation through alternative or renewable energy generation and distribution, energy demand management to reduce energy consumption, and design standards that result in more energy efficient green buildings and development; or -waste management by enhancing waste reduction through composting, material re-use, recycling and waste diversion initiatives; Program(s) shall measure improvement in energy and water efficiency by using government or industry accepted benchmarks or certifications (e.g. LEED - Leadership in Energy and Environmental Design certification). Financial assistance shall not be issued for work on buildings located on property in property tax or utility arrears or any municipal financial obligations. The total of grants, loans or other financial assistance provided under a program is limited to the amount of the eligible costs of the program. Program(s) contained in the CIP shall not commence until City Council has approved and adopted the CIP or respective amendment to the CIP. Council’s consideration of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan includes that the Kitchener Green Housing Incentive Program form part of the CIP. The Kitchener Green Housing Incentive Program is consistent with the goal and program parameters for the CIP. The Program will implement strategies in support of water and energy conservation, including air quality protection and improvements in waste management. Further, it aims to stimulate the construction of buildings that achieve an improvement or efficiency in environmental conservation through the LEED measurable standard. LEED is a third party certification program and an internationally accepted benchmark for the design, construction and operation of high performance green buildings. The CIP will allow other programs and ïî ó í measurement standards to be considered. A program description is provided in Section 4 of the CIP, and full program details are included in the appendix of the CIP. FINANCIAL IMPLICATIONS: Programs forming part of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan may offer grants, loans, refunds, exemptions, tax increment- equivalent financing or other incentives and assistance. Such programs require Council approval and are subject to available funding. Funding for the Kitchener Green Housing Incentive Program, in the amount of $500,000 over three years (2009-2011), was approved by Council in 2009 as part of a Local Environmental Action Fund (LEAF) application made by Community Renewable Energy Waterloo (CREW) in conjunction with the City of Kitchener Building Division. Any additional funding or any increase in the financial incentive being offered within a municipal CIP program, requires an amendment to the CIP, which would require Ministry pre-consultation and City Council approval. COMMUNICATIONS As a result of changes made to Section 28(8) of the Planning Act and Section 365.1 of the Municipal Act and provided community improvement policies exist in the Official Plan, municipalities are no longer required to submit community improvement plans or amendments to the Ministry of Municipal Affairs and Housing for approval. However, municipalities are still required to pre-consult with the Ministry prior to adoption of the by-law approving the Community Improvement Plan. In this regard, City staff consulted with the Ministry, providing a draft of the Community Improvement Plan on March 18, 2010. The Ministry replied to the City on April 19, 2010 offering comments for the City’s consideration and which have been incorporated into the final Community Improvement Plan. Notice of the June 7, 2010 public meeting of the Development and Technical Services Committee was advertised in The Record on May 14, 2010. A copy of the advertisement is attached as Appendix ‘A’ to the Community Improvement Plan. The Kitchener Green Housing Incentive Program was received and reviewed by the City’s Local Environmental Action Fund (LEAF) Steering Committee prior to being considered and approved by City Council in 2009. The Program was also discussed with KW Homebuilders. A full marketing, promotional and education strategy is included in the program structure. City Staff will be providing Committees who may have an interest in the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan, such as KW Homebuilders and the Environmental Committee, with an information update on the establishment of the CIP. ïî ó ì CONCLUSION: The goal of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan is to encourage the construction or reconstruction of buildings or the use of land, in a way that achieves measurable improvement or efficiency in energy and water conservation. The Plan provides the basis for the City’s ability to implement programs, such as the Kitchener Green Housing Incentive Program, which are consistent with the CIP goal and objectives and which may offer grants, loans or other incentives and assistance to eligible applicants. The CIP and implementing program will help further Kitchener as a healthy community. REVIEWED BY: Brandon Sloan, Interim Manager of Long Range & Policy Planning ACKNOWLEDGED BY: Jeff Willmer, Interim General Manager Development and Technical Services Department List of Attachments Appendix A: Proposed By-law dated May 7, 2010 to designate the Community Improvement Project Area for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. Appendix B: Proposed By-law dated May 7, 2010 to establish the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. Appendix C: Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. ïî ó ë APPENDIX ‘A’ to Report DTS-10-097 Proposed By-law - May 7, 2010 BY-LAW NUMBER OF THE CORPORATION OF THE CITY OF KITCHENER (Being a by-law to designate a Community Improvement Project Area in the City of Kitchener for the purpose of preparing and implementing the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan) WHEREAS the Official Plan for the City of Kitchener contains provisions relating to community improvement in the City of Kitchener; AND WHEREAS Sections 28 and 17 of The Planning Act, R.S.O. 1990, Chapter P.13, as amended, provide for the designation of a Community Improvement Project Area; NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as follows: “1. That all the lands within the City limits of the City of Kitchener be designated as a Community Improvement Project Area for the purposes of preparing and implementing the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan.” PASSED at the Council Chambers in the City of Kitchener this day of ______________, 2010. _____________________________ Mayor _____________________________ Clerk ïî ó ê APPENDIX ‘B’ to Report DTS 10-097 Proposed By-law - May 7, 2010 BY-LAW NUMBER OF THE CORPORATION OF THE CITY OF KITCHENER (Being a by-law to adopt the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan) WHEREAS By-law No. 2010-___, passed on the ______ day of ________, 2010, designated the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Project Area; AND WHEREAS Section 28 of the Planning Act states that where a by-law has been passed to designate a community improvement project area, the Council may provide for the preparation of a plan suitable for adoption as a community improvement plan for the community improvement project area; AND WHEREAS for the purpose of Section 28 the Planning Act states that “community improvement” means “the planning or replanning, design or redesign, resubdivision, clearance, development or redevelopment, construction, reconstruction and rehabilitation, improvement of energy efficiency, or any of them, of a community improvement project area, and the provision of such residential, commercial, industrial, public, recreational, institutional, religious, charitable or other uses, buildings, structures, works, improvements or facilities, or spaces therefore, as may be appropriate or necessary”; AND WHEREAS the Council of The Corporation of the City of Kitchener considers it appropriate to adopt a community improvement plan for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Project Area in accordance with the Planning Act, for the purposes of the community improvement of the designated Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Project Area, through various municipal initiatives as set out in the community improvement plan; AND WHEREAS Council, by its Development and Technical Services Department, held a public meeting on __________________ to discuss and receive public input regarding adoption of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan, and has taken all of the other required steps, prior to the enactment of this by-law to adopt a community improvement plan for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Project Area, as required by the Planning Act; AND WHEREAS the City has prepared a plan entitled “Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan” attached hereto as Schedule “A” and forming part of this By-law. ïî ó é NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as follows: The Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan annexed hereto as Schedule “A” and forming part of this By-law is hereby adopted as the Community Improvement Plan for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Project Area designated by By-law No. 2010-___. PASSED at the Council Chambers in the City of Kitchener this day of June, 2010. _____________________________ Mayor _____________________________ Clerk ïî ó è APPENDIX ‘C’ to Report DTS-10-097 KITCHENER Energy and Water Efficiency for Land and Buildings COMMUNITY IMPROVEMENT PLAN Adopted by the Council of the Corporation of the City of Kitchener on __{date}____ (By-law 2010-____). 1 ïî ó ç TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 Summary 1 1.2Organization of the Community Improvement Plan 1 1.3General Information on Community Improvement Planning 1 2.0 LEGISLATIVE AUTHORITY AND POLICY DIRECTION 2.1Provincial 2 2.1.1 Ontario Planning Act 2 2.1.2 Green Energy and Green Economy Act, 2009 3 2.1.3 Provincial Policy Statement 3 2.1.4 Growth Plan for the Greater Golden Horseshoe 3 2.2Regional 4 2.2.1 Regional Official Plan 4 2.2.2 Regional Growth Management Strategy 4 2.3 Local 4 2.3.1 Kitchener Official Plan 4 2.3.2 A Plan for a Healthy Kitchener 4 2.3.3 Strategic Plan for the Environment 5 2.3.4 Kitchener Growth Management Strategy 5 3.0 KITCHENER ENERGY AND WATER EFFICIENCY FOR LAND AND BUILDINGS COMMUNITY IMPROVEMENT PLAN 3.1 Community Improvement Project Area 5 3.2Purpose 5 3.3Goal 5 3.4Program Policies 6 3.4.1 Program Parameters 6 3.4.2 Amendments 6 4.0 CIP PROGRAMS 4.1 Kitchener “Green” Housing Incentive (greenHOUSE) 7 4.1.1 Background 7 4.1.2 Program Description 7 4.1.3 Conformity with the CIP 8 2 ïî ó ïð 5.0 APPENDICES 9 A - Notice of Public Meeting 10 B - Staff Report DTS-10-097 15 C - Minutes of Public Meeting 16 D - Kitchener Green Housing Incentive Program Details 16 D.1- Program Description 16 D.2- Objective & Strategy 17 D.3- Program Incentives 18 D.4- Eligibility 18 D.5- Program Duration 18 D.6- Program Administration 19 D.7- Marketing 20 D.8- Monitoring 21 D.9 - Application Form 3 ïî ó ïï 1.0 INTRODUCTION 1.1Summary The fate of the environment, and the crisis associated with declining fossil fuels, increased greenhouse gas emissions and resulting global climate change, can be said to be the greatest challenge faced by this generation. As Ontario’s economy continues to be shaped by global economic, environmental and social trends; there is a need to build, reinforce and reshape our cities to meet global and local challenges in ways that reduce the impact on our environment. Through changes made to the Planning Act in 2007, municipalities can make use of Community Improvement Plans to offer incentives related to the energy efficiency of land Kitchener Energy and Water Efficiency for Land and Buildings and buildings. The Community Improvement Plan will encourage the construction or reconstruction of buildings or the use of land, in a way that achieves measurable improvement or efficiency in energy and/or water conservation. This will be achieved through the provision of programs which could make grants, loans, refunds, exemptions, tax increment-equivalent financing or other incentives and assistance available, in accordance with qualifying programs and available funding. 1.2Organization of the Community Improvement Plan The Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan (CIP) includes the following components: General information on community improvement planning; Review of the legislative authority supporting the establishment of the CIP Identification of the CIP project area, purpose, goal, and program policies Description of CIP programs Appendices relating to the CIP and program details 1.3General Information on Community Improvement Planning Common to all Ontario municipalities is the need to build, reinforce or reshape themselves to meet global challenges and residents’ future needs in a sustainable way that delivers a high quality of life. Community improvement planning, one of the many community planning tools found in the Ontario Planning Act, can help municipalities address some of these challenges, as it provides a means of planning and financing activities that relate to the effective use, reuse or restoration of lands, buildings and infrastructure. Through a Community Improvement Plan municipalities can: focus public attention on local priorities and specific municipal initiatives; target areas in transition or in need of repair, rehabilitation and redevelopment; facilitate and encourage community change in a co-ordinated manner; and, stimulate private sector investment through municipal incentive-based programs. 1 ïî ó ïî Community improvement project areas may range from specific properties and employment areas to streets, neighbourhoods, or as is the case with this CIP, an entire community or City. Program coverage can span a wide spectrum of municipal objectives from municipally driven programs relating to infrastructure works, to incentive based programs providing grants, loans or tax increment-equivalent financing. The City of Kitchener has previously used Community Improvement Plans for residential neighbourhood restoration, commercial area improvements, downtown incentives, and adaptive re-use and brownfield remediation. Common to these and all CIP programs is the alteration of the physical landscape of communities so that public benefits can be achieved, resulting in more socially cohesive, environmentally friendly and/or economically sound communities. 2.0 LEGISLATIVE AUTHORITY AND POLICY DIRECTION 2.1 Provincial 2.1.1 Ontario Planning Act Ontario municipalities are generally prohibited from granting bonuses or incentives, directly or indirectly, through the restrictions of the Municipal Act. An exception to this general rule is provided through Part IV Section 28 of the Planning Act. Section 28 allows municipalities, where there are provisions in its Official Plan relating to community improvement, to designate by Bylaw, a “Community Improvement Project Area”, and subsequently provide for the preparation of a “Community Improvement Plan”. Through Bill 51, amendments to the Planning Act have been made to expand the scope of CIPs. The most significant of these changes is a new definition for “community improvement.” As of January 1, 2007 community improvement: “means the planning or replanning, design or redesign, resubdivision, clearance, development or redevelopment, construction, reconstruction and rehabilitation, improvement of energy efficiency, or any of them, of a community improvement project area, and the provision of such residential, commercial, industrial, public, recreational, institutional, religious, charitable or other uses, buildings, structures, works, improvements or facilities, or spaces therefore, as may be appropriate or necessary” (Planning Act, Part IV Section 28(1)). Directly related to the focus of this CIP are new changes made to the Planning Act which add the improvement of energy efficiency to the definition of “community improvement”; and the provision of energy efficient uses, buildings, structures, works and improvements or facilities, to the scope of eligible costs for which municipalities can provide community improvement grants or loans. Specifically, Part IV Section 28 of the Planning Act includes the following: 2 ïî ó ïí “Grants or loans re eligible costs (7) For the purpose of carrying out a municipality’s community improvement plan that has come into effect, the municipality may make grants or loans, in conformity with the community improvement plan, to registered owners, assessed owners and tenants of lands and buildings within the community improvement project area, and to any person to whom such an owner or tenant has assigned the right to receive a grant or loan, to pay for the whole or any part of the eligible costs of the community improvement plan. Eligible costs (7.1) For the purposes of subsection (7), the eligible costs of a community improvement plan may include costs related to environmental site assessment, environmental remediation, development, redevelopment, construction and reconstruction of lands and buildings for rehabilitation purposes or for the provision of energy efficient uses, buildings, structures, works, improvements or facilities.” 2.1.2 Green Energy and Green Economy Act, 2009 The purpose of the Green Energy and Green Economy Act 2009 is to facilitate the development of a sustainable energy economy that protects the environment while streamlining the approvals process, mitigates climate change, engages communities and builds a green industrial sector. The Act supports the development of renewable energy, clean distributed energy and a culture of conservation. 2.1.3 Provincial Policy Statement The Provincial Policy Statement 2005 (PPS) provides policy direction on matters relating to land use planning that are of provincial interest. It is issued under the authority of Section 3 of the Planning Act and applies to all applications, matters or proceedings commenced on or after March 1, 2005. The 2005 Provincial Policy Statement is based on building strong communities. Specifically, Policy 1.8 of the PPS provides policy direction to planning authorities on how Ontario’s energy goals can be achieved by encouraging energy efficiency, conservation, and a new clean energy supply. 2.1.4 Growth Plan for the Greater Golden Horseshoe One of the guiding principles of the Growth Plan for the Greater Golden Horseshoe is to “protect, conserve, enhance and wisely use the valuable natural resources of land, air and water for current and future generations”. Specifically, Policy 4.2.4 (A Culture of Conservation) of the Growth Plan for the Greater Golden Horseshoe provides direction to municipalities to develop strategies in support of water and energy conservation, air quality protection and waste management. 3 ïî ó ïì 2.2Regional 2.2.1Regional Official Plan Both the Regional Official Policies Plan and the Regional Official Plan 2029 (ROP) are based on a vision for a sustainable community. Specific energy conservation policies in the ROP “promote building designs and orientations that incorporate energy conservation features”. 2.2.2Regional Growth Management Strategy Goal 1: Enhancing our Natural Environment of the Region of Waterloo’s Growth Management Strategy, identifies the need to reduce energy consumption and minimize the urban footprint. One of the recommended action items of this goal is to “investigate the potential for more environmentally-friendly development in urban areas”. 2.3 Local 2.3.1Kitchener Official Plan The City of Kitchener Official Plan (approved May 25, 1995) includes policies regarding ‘Community Improvement’ (Part II - Section 5.4). The objective of the Community Improvement policies in the Official Plan is to maintain, improve and rehabilitate Kitchener’s current and former industrial, commercial, residential and public areas. Community Improvement Policy 5.4.1 of the Official Plan states that: ”All lands within the City Limits of the City of Kitchener are considered eligible for Community Improvement initiatives, and eligible to be designated as a “Community Improvement Project Area”, pursuant to the provisions of Section 28 of the Ontario Planning Act.” In addition, Part II - Section 5 (Conservation and Community Improvement) of the Official Plan, contains policies to improve the environmental impacts of development and specifically to promote energy and water conservation within the City. 2.3.2A Plan for a Healthy Kitchener Kitchener’s healthy community model, A Plan for a Healthy Kitchener (approved by Council in 2006) is directly integrated into the Corporate Strategic Plan. This plan identifies several strategic directions; including Quality of Life, Leadership, Development and Environment, that support a healthy community (which includes an environmentally sustainable community). 4 ïî ó ïë 2.3.3Strategic Plan for the Environment Some of the key guiding principles of the City’s Strategic Plan for the Environment (approved by Council in 1992 and updated in 2008) include being a partner, supporting and collaborating with community participants on initiatives that can have maximum benefit to the environment. The objectives of this plan incorporate the conservation of water resources, emission-reduction and air quality improvement, integrating the principles of environmental conservation with development, and reducing energy usage. 2.3.4Kitchener Growth Management Strategy One of the objectives within Goal 1 of the Kitchener Growth Management Strategy (approved by Council in 2009) is to implement energy conservation measures. Another objective is to ensure new development limits its impact on water and wastewater systems. 3.0 KITCHENER ENERGY AND WATER EFFICIENCY FOR LAND AND BUILDINGS COMMUNITY IMPROVEMENT PLAN 3.1 Community Improvement Project Area The Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan applies to all lands within the City of Kitchener. 3.2 Purpose purpose The of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan is to support and implement provincial, regional and local policies and strategies relating to energy and water conservation. This will be achieved through the provision of one or more programs which could make grants, loans, refunds, exemptions, tax increment-equivalent financing or other incentives and assistance available subject to available funding. All qualifying programs forming part of this Community Improvement Plan shall be identified in Section 4.0 (CIP Programs) and may meet varying aspects of the goal of the Community Improvement Plan. 3.3 Goal goal Theof the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan, is to encourage the construction or reconstruction of 5 ïî ó ïê buildings or the use of land, in a way that achieves measurable improvement or efficiency in energy and water conservation. 3.4 Program Policies 3.4.1 Program Parameters Programs qualifying under the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Planshallmeet the following program parameters: Program(s) may offer grants, loans, refunds, exemptions, tax increment-equivalent financing or other incentives and assistance to registered owners, assessed owners and tenants of lands and buildings within the community improvement project area, and to any person to whom such an owner or tenant has assigned the right to receive such financial incentive to pay for the whole or any part of the eligible costs of the community improvement plan, subject to available funding. Financial assistance shall not issued for work on buildings located on property in property tax or utility arrears or any municipal financial obligations. The total of grants, loans or other financial assistance provided under a program is limited to the amount of the eligible costs of the program. Program(s) shall relate directly to achieving energy or water conservation objectives and shall address but not necessarily be limited to one or more of the following: -air quality through the reduction of emissions harmful to the environment; -water efficiencyby reducing water demand or maximizing the re-use and recycling of water; -energy conservation through alternative or renewable energy generation and distribution, energy demand management to reduce energy consumption, and design standards that result in more energy efficient green buildings and development; or -waste management by enhancing waste reduction through composting, material re-use, recycling and waste diversion initiatives; - Program(s) shall measure improvement in energy and water efficiency by using government or industry accepted benchmarks or certifications (e.g. LEED - Leadership in Energy and Environmental Design certification). Program(s) contained in the CIP shall not commence until City Council has approved and adopted the CIP or respective amendment to the CIP. 3.4.2 Amendments Amendments to the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan and to programs contained in the CIP shall meet the following parameters: 6 ïî ó ïé An amendment to the CIP is required where there is (1) a change the geographic area to which financial or land programs outlined in the CIP apply; (2) a change in the purpose or goal of the CIP; (3) a change in the eligibility criteria of a program contained in the CIP; (4) an addition of a new municipal assistance program(s) to the CIP involving grants, loans, tax assistance or land; (5) an increase in the financial incentive offered within a program contained in the CIP, regardless of its significance. If an amendment results in the commitment of additional public dollars or the foregoing of public dollars, public notice should be given. All amendments to the CIP shall require pre-consultation with the Ministry of Municipal Affairs and Housing, and City Council approval. An amendment to the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan is not required where (1) a CIP program is discontinued or cancelled; or (2) funding to a CIP program is decreased. 4.0 CIP PROGRAMS 4.1 Kitchener “Green” Housing Incentive (greenHOUSE) 4.1.1 Background It is acknowledged that the building industry, while recognized as a major contributor to the economic vitality of cities, is also a major consumer of energy and supplier of emissions detriment to our environment. Buildings consume a significant portion of the world’s energy consumption through their construction and operation. Kitchener as a community has numerous growth areas with more new housing proposed. Knowledge and technology exist today to incite enhanced “green” building practices. While changes to the Ontario Building Code will require higher minimum standards of construction and home operating efficiencies, there is an opportunity to strive for a greater measure of energy and water efficiency than is minimally required. In 2009, Kitchener City Council approved an application made under the Kitchener Local Environmental Action Fund (LEAF) for funding to provide financial incentives for new home construction that achieves certain LEED (Leadership in Energy and Environmental Design) efficiency standards. In order to facilitate this grant and potentially other similar incentive programs, the City established that a Community Improvement Plan for energy and water efficiency was required. 4.1.2 Program Description Kitchener “Green” Housing Incentive The intent of the is to offset as much of the direct building impacts on energy, water and waste as possible for new home construction. Residential dwellings that are built and certified to LEED standards will receive a financial 7 ïî ó ïè incentive in the form of a grant. The amount of the grant is incremental dependent upon the LEED performance level. For example, a single detached dwelling built to a LEED platinum standard would receive a larger grant than a single detached dwelling built to the base LEED certification standard. As Kitchener continues to grow, the Kitchener Green Housing Incentive Program will help reduce Kitchener’s future carbon footprint and provide substantial water and landfill savings. The details of the program’s specific objectives, financial incentives, duration, and administration are contained in Appendix “D” to this CIP. 4.1.3 Conformity with the CIP The Kitchener “Green” Housing Incentive Program is consistent with the goal and Program parameters for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. The Program will implement strategies in support of water and energy conservation, including air quality protection and improvements in waste management. Further, it aims to stimulate the construction of buildings that achieve an improvement or efficiency in environmental conservation through the LEED measurable standard. LEED is a third party certification program and an internationally accepted benchmark for the design, construction and operation of high performance green buildings. The program establishes that it will: Reduce the potential incremental impact of the built environment on energy and water systems; Contribute to the enhancement of local air quality and indoor air quality improvements that benefit human health, through the reduction of fossil fuel use in the home; Reduce greenhouse gas emissions in new home construction; Create a sustainable, long-term benefit given the greenhouse gas and water savings inherent in a new LEED home should last the duration of the house; Achieve a net gain in the quality of the local environment resulting in an improved qualify of life in the community; Improve local construction knowledge and implementation of more efficient construction techniques; Increase community awareness of the economic, environmental and social benefits of environmentally efficient use of land and buildings; Provide a boost for local businesses to establish themselves as leaders in the “green” building marketplace and to be proactive in preparing for the energy efficiency changes to the Ontario Building Code in 2012; Educate and promote change at a community level by: - leading green building workshops and tours at local LEED buildings; - involving builders and their trade partners in green building techniques; - enabling homebuyers and visitors to tangibly experience the benefits of smarter, more energy-efficient homes; - attracting media exposure to “green” buildings; - creating a new standard of “green” building in the local building industry that will last after the incentive is gone; - establishing Kitchener as a “green” community. 8 ïî ó ïç 5.0 APPENDICES Kitchener Energy and Water Efficiency For Land and Buildings Community Improvement Plan - Notice of Public Meeting________________________________ Advertised in The Record – May 14, 2010 PLANNING MATTERS: PROPERTY OWNERS AND INTERESTED PARTIES ARE INVITED TO ATTEND A PUBLIC MEETING TO DISCUSS THE PROPOSED DESIGNATION OF A COMMUNUITY IMPROVEMENT PROJECT AREA AND ADOPTION OF A COMMUNITY IMPROVEMENT PLAN UNDER SECTIONS 17, AND 28 OF THE PLANNING ACT Kitchener Energy and Water for Land and Buildings Community Improvement Plan The purpose of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan is to encourage the construction or reconstruction of buildings or the use of land, in a way that achieves measurable improvement or efficiency in energy and water conservation. The Plan provides the basis for the City’s ability to establish and implement programs, such as the Kitchener Green Housing Incentive Program, which are consistent with the CIP goal and objectives and which may offer grants, loans or other incentives and assistance to eligible applicants. The Community Improvement Project Area applies to all lands within the City limits of the City of Kitchener. Development and Technical Services Committee The public meeting will be held by the , a Committee of Council which deals with planning matters on: MONDAY, June 7 at 7:00 P.M. nd COUNCIL CHAMBERS, 2 FLOOR, CITY HALL 200 KING STREET WEST, KITCHENER. Any person may attend the Public Meeting and make written and/or verbal representation either in If a person or public body that files a support of, or in opposition to, the above noted proposal. notice of appeal of a decision, does not make oral submissions at this public meeting or make a written submission prior to approval/refusal of this proposal, the Ontario Municipal Board may dismiss all or part of a subsequent appeal. ADDITIONAL INFORMATION is available by contacting the appropriate staff person noted below, viewing the report contained in the meeting agenda (available on the Friday afternoon prior to the meeting, in the calendar section of the website http://www.kitchener.ca/calendar/calendarEvent.aspx), or in person at the th Development and Technical Services Department - Planning Division, 6 Floor, City Hall, 200 King Street West, Kitchener between 8:30 a.m. - 5:00 p.m. (Monday to Friday). Leon Bensason , Coordinator, Cultural Heritage Planning - 519-741-2306 (TTY: 1-866-969-9994) leon.bensason@kitchener.ca 9 ïî ó îð Kitchener Energy and Water Efficiency For Land and Buildings Community Improvement Plan - Staff Report DTS-10-097_______________________________ REPORT TO: Development and Technical Services Committee DATE OF MEETING: June 7, 2010 SUBMITTED BY: Alain Pinard, Interim Director of Planning PREPARED BY: Leon Bensason, Coordinator, Cultural Heritage Planning (519-741-2306) WARD INVOLVED: All DATE OF REPORT: May 5, 2010 REPORT NO.: DTS-10-097 SUBJECT: KITCHENER ENERGY AND WATER EFFICIENCY FOR LAND AND BUILDINGS COMMUNITY IMPROVEMENT PLAN RECOMMENDATIONS: That the proposed by-law dated May 7, 2010 attached as Appendix ‘A’ to DTS-10- 097, be adopted to designate the Community Improvement Project Area for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan; and, That the proposed by-law dated May 7, 2010 attached as Appendix ‘B’ to DTS-10- 097, be adopted to approve the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan; and further, That the Kitchener Green Housing Incentive Program proposed as part of a Local Environmental Action Fund (LEAF) application approved in 2009, form part of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan, attached as Appendix ‘C’ to Report DTS-10- 097. BACKGROUND: Ontario municipalities are generally prohibited from granting bonuses or incentives to private enterprises, directly or indirectly, through the restrictions of the Municipal Act. An exception to this general rule is provided through Part IV Section 28 of the Planning Act. Section 28 allows municipalities, where there are provisions in its Official Plan relating to community improvement, to designate by Bylaw, a “Community Improvement Project Area”, and subsequently provide for the preparation of a “Community Improvement Plan”. Community improvement planning provides a means of planning and financing activities that relate to the effective use, reuse or restoration of lands, buildings and infrastructure. Through a Community Improvement Plan municipalities can: 10 ïî ó îï focus public attention on local priorities and specific municipal initiatives; target areas in transition or in need of repair, rehabilitation and redevelopment; facilitate and encourage community change in a co-ordinated manner; and, stimulate private sector investment through municipal incentive-based programs. The City of Kitchener has previously used Community Improvement Plans for residential neighbourhood restoration, commercial area improvements, downtown incentives, and adaptive re-use and brownfield remediation. Common to these and all CIP programs is the alteration of the physical landscape so that public benefits can be achieved, resulting in more socially cohesive, environmentally friendly and/or economically sound communities. In 2007, Kitchener City Council approved the creation of a five million dollar Local Environmental Action Fund or LEAF. The goal of LEAF is to reduce or repair Kitchener’s impact on the environment focusing on the reduction of greenhouse gases, and to enhance the ability of the Kitchener community to live sustainably into the future. In 2009, a LEAF application from Community Renewable Energy Waterloo (CREW) to establish Kitchener Green Housing Incentive Program a was received, and funding in the amount of $500,000 over three years was approved. The intent of the Kitchener Green Housing Incentive Program is to offset as much of the direct building impacts on energy, water and waste as possible for new home construction. Residential dwellings built and certified to LEED standards would receive a financial incentive in the form of a grant. The amount of the grant is incremental dependent upon the LEED performance level. For example, a single detached dwelling built to a LEED platinum standard would receive a larger grant than a single detached dwelling built to the base LEED certification standard. During the evaluation of the application by the LEAF Steering Committee, it was noted that the provision of a financial grant to the building industry via the Kitchener Green Housing Incentive Program, would necessitate the establishment of a new Community Improvement Plan (CIP). REPORT: As Ontario’s economy continues to be shaped by global economic, environmental and social trends; there is a need to build, reinforce and reshape our cities to meet global and local challenges in ways that reduce the impact on our environment. The need to establish a Community Improvement Plan to enable the implementation of the Kitchener Green Housing Incentive Program provides the City with a unique opportunity to prepare a Plan that broadens its scope to support and implement strategies relating to energy and water conservation. Kitchener Energy and City staff have drafted a Community Improvement Plan entitled the Water Efficiency for Land and Buildings Community Improvement Plan ( attached as Appendix ‘C’ to this report). The goal of the Community Improvement Plan is to encourage the construction or reconstruction of buildings or the use of land, in a way that achieves measurable improvement or efficiency in energy and water conservation. This goal is consistent with policy directives at the provincial, regional and local levels. This includes recent changes to the Planning Act which add the improvement of energy efficiency to the definition of “community improvement”; and the provision of energy efficient uses, buildings, structures, works and improvements or facilities, to the scope of eligible costs for which municipalities can provide community improvement grants or loans. 11 ïî ó îî The Community Improvement Plan would enable the City to proceed with the implementation of the Kitchener Green Housing Incentive Program, and additionally, makes provision for the possibility of adding other qualifying programs to the Community Improvement Plan, by amendment. Programs qualifying under the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Planshall meet the following program parameters: Program(s) may offer grants, loans, refunds, exemptions, tax increment-equivalent financing or other incentives and assistance to registered owners, assessed owners and tenants of lands and buildings within the community improvement project area, and to any person to whom such an owner or tenant has assigned the right to receive such financial incentive to pay for the whole or any part of the eligible costs of the community improvement plan, subject to available funding. Program(s) shall relate directly to achieving energy or water conservation objectives and shall address but not necessarily be limited to one or more of the following: - air quality through the reduction of emissions harmful to the environment; - water efficiencyby reducing water demand or maximizing the re-use and recycling of water; - energy conservation through alternative or renewable energy generation and distribution, energy demand management to reduce energy consumption, and design standards that result in more energy efficient green buildings and development; or - waste management by enhancing waste reduction through composting, material re-use, recycling and waste diversion initiatives; Program(s) shall measure improvement in energy and water efficiency by using government or industry accepted benchmarks or certifications (e.g. LEED - Leadership in Energy and Environmental Design certification). Financial assistance shall not be issued for work on buildings located on property in property tax or utility arrears or any municipal financial obligations. The total of grants, loans or other financial assistance provided under a program is limited to the amount of the eligible costs of the program. Program(s) contained in the CIP shall not commence until City Council has approved and adopted the CIP or respective amendment to the CIP. Council’s consideration of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan includes that the Kitchener Green Housing Incentive Program form part of the CIP. The Kitchener Green Housing Incentive Program is consistent with the goal and program parameters for the CIP. The Program will implement strategies in support of water and energy conservation, including air quality protection and improvements in waste management. Further, it aims to stimulate the construction of buildings that achieve an improvement or efficiency in environmental conservation through the LEED measurable standard. LEED is a third party certification program and an internationally accepted benchmark for the design, construction and operation of high performance green buildings. The CIP will 12 ïî ó îí allow other programs and measurement standards to be considered. A program description is provided in Section 4 of the CIP, and full program details are included in the appendix of the CIP. FINANCIAL IMPLICATIONS: Programs forming part of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan may offer grants, loans, refunds, exemptions, tax increment- equivalent financing or other incentives and assistance. Such programs require Council approval and are subject to available funding. Funding for the Kitchener Green Housing Incentive Program, in the amount of $500,000 over three years (2009-2011), was approved by Council in 2009 as part of a Local Environmental Action Fund (LEAF) application made by Community Renewable Energy Waterloo (CREW) in conjunction with the City of Kitchener Building Division. Any additional funding or any increase in the financial incentive being offered within a municipal CIP program, requires an amendment to the CIP, which would require Ministry pre-consultation and City Council approval. COMMUNICATIONS As a result of changes made to Section 28(8) of the Planning Act and Section 365.1 of the Municipal Act and provided community improvement policies exist in the Official Plan, municipalities are no longer required to submit community improvement plans or amendments to the Ministry of Municipal Affairs and Housing for approval. However, municipalities are still required to pre-consult with the Ministry prior to adoption of the by-law approving the Community Improvement Plan. In this regard, City staff consulted with the Ministry, providing a draft of the Community Improvement Plan on March 18, 2010. The Ministry replied to the City on April 19, 2010 offering comments for the City’s consideration and which have been incorporated into the final Community Improvement Plan. Notice of the June 7, 2010 public meeting of the Development and Technical Services Committee will be advertised in The Record on May 14, 2010. A copy of the advertisement is attached as Appendix ‘A’ to the Community Improvement Plan. The Kitchener Green Housing Incentive Program was received and reviewed by the City’s Local Environmental Action Fund (LEAF) Steering Committee prior to being considered and approved by City Council in 2009. The Program was also discussed with KW Homebuilders. A full marketing, promotional and education strategy is included in the program structure. City Staff will be providing Committees who may have an interest in the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan, such as KW Homebuilders and the Environmental Committee, with an information update on the establishment of the CIP. 13 ïî ó îì CONCLUSION: The goal of the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan is to encourage the construction or reconstruction of buildings or the use of land, in a way that achieves measurable improvement or efficiency in energy and water conservation. The Plan provides the basis for the City’s ability to implement programs, such as the Kitchener Green Housing Incentive Program, which are consistent with the CIP goal and objectives and which may offer grants, loans or other incentives and assistance to eligible applicants. The CIP and implementing program will help further Kitchener as a healthy community. REVIEWED BY: Brandon Sloan, Interim Manager of Long Range & Policy Planning ACKNOWLEDGED BY: Jeff Willmer, Interim General Manager Development and Technical Services Department List of Attachments Appendix A: Proposed By-law dated May 7, 2010 to designate the Community Improvement Project Area for the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. Appendix B: Proposed By-law dated May 7, 2010 to establish the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. Appendix C: Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. 14 ïî ó îë Kitchener Energy and Water Efficiency For Land and Buildings Community Improvement Plan – Minutes of Public Meeting______________________________ 15 ïî ó îê Kitchener Energy and Water Efficiency For Land and Buildings Community Improvement Plan – Kitchener Green Housing Incentive Program Details________ Kitchener Green Housing Incentive Program D.1 Program Description Summary The Kitchener Green Housing Incentive Program provides financial incentives to encourage potential home buyers and new home builders to design, build and certify residential dwellings to LEED (Leadership in Energy and Environmental Design) Standards. What is LEED Certification? The Leadership in Energy and Environmental Design (LEED) Green Building Rating System encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria. LEED is a third-party certification program and an internationally accepted benchmark for the design, construction and operation of high performance green buildings. It provides building owners and operators the tools they need to have an immediate and measurable impact on their buildings’ performance. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development water efficiency energy efficiency materials selection indoor environmental quality Certification is granted by the CaGBC (The Canada Green Building Council) based on a total point system. The extent to which the project meets the requirements will determine the level of certification the building can achieve. These levels are categorized as Certified, Silver, Gold and Platinum. D.2 Objective & Strategy The objective of the Kitchener Green Building Incentive is to offset enough of the direct building costs of energy, water, and waste-saving upgrades to new dwellings in Kitchener to cause 1000 new residential dwellings to be built to either of Canada's National green certification standards, ENERGY STAR or LEED. This will reduce Kitchener's future carbon footprint by a minimum of 3600 tonnes, with additional environmental and economic benefits derived from the LEED projects. Objective 1 : Directly reduce the greenhouse gas emissions in Kitchener by 3,600 tonnes. Objective 2 : Educate and promote change at the community level by a) Directly involving builders and their trade partners in ENERGY STAR and LEED green building techniques. This helps all local residential builders and tradespeople prepare for two changes: Ontario’s proposed Green Energy Act is making energy efficiency a bigger selling point, and the Ontario Building Code will change in 2012 to require the present ENERGY STAR level of efficiency as a minimum for all new housing. b) Enabling over 1200 homebuyers and their visitors to tangibly experience the benefits of smarter, more energy-efficient homes. c) Hosting public tours and high-profile dignitary tours to demonstrate the desirability, affordability, ecological necessity, and “normalcy” of building green. 16 ïî ó îé d) Engaging local, provincial and national media to promote the program, Kitchener, and green building. Objective 3 : Create a sustainable, long-term benefit within the City of Kitchener. The greenhouse gas, water, and landfill savings inherent in a new LEED-certified home are permanent and will last for the duration of the home’s service life. In addition, by enabling the local building industry to transition to green building techniques (ENERGY STAR and LEED), we will create a new standard that will last long after the incentive has expired. Objective 4 : Improve local air quality through the reduction of fossil fuel use to heat and power homes, thus reducing the aggregate energy use across Ontario, which is often supported by polluting coal-fired power in the US that affects our airshed. Objective 5 : Reduce energy use by improving residential energy efficiency by a minimum of 30% in each new home incented, using an ENERGY STAR pre-requisite. Encourage additional energy savings and renewable energy sources by incenting LEED. D.3 Program Incentives Kitchener Green Housing Incentive Program: Ensuring the incentive program is effective, efficient and accountable, and that greenhouse gas and water savings are measured. This project proposes that a new Kitchener Green Housing Incentive be defined as follows: 2011 Incentive Levels stndrd 1 dwelling 2 dwelling 3 dwelling + Performance Level 2010 Incentive Levels stndrd 1 dwelling 2 dwelling 3 dwelling + LEED Platinum $5,000 $4,000 $3,000 $2,000 LEED Gold $4,000 $3,000 $2,000 $1,500 LEED Silver $3,000 $2,250 $1,500 $1,000* LEED Certified $2,000 $1,500 $1,000 Pre-required EnerGuide 80 (or Pre-required Pre-required ENERGY STAR) *The need for this incentive level will be re-evaluated based upon the success of the program as it progresses. Please notice that this incentive is based on a declining balance model, where the incentive level is higher for the first and second dwelling than for every dwelling thereafter. This is intended to respect the fact that builders who begin to construct to LEED standards will experience costs while they go through their own learning process for the first two dwellings, and that these learning costs will be largely passed by the third dwelling. The incentive therefore diminishes until the third dwelling and remains at the third dwelling level for each dwelling thereafter. It is expected that this declining balance model will help spread the incentive money across more builders, and will encourage greater market participation. rd Lastly, note the incentive for the 3 LEED Certified dwelling is proposed to be discontinued at the beginning of 2011, with all incentive levels decreased proportionately at that time, and the need for a 2011 rd incentive at the LEED Silver 3 dwelling level will be re-evaluated in mid to late 2010. The applicability of the 2011 incentive levels are to be re-evaluated late 2010, if the program is limited in uptake, the 2010 levels may be more appropriate levels of incentives in 2011. This is due in part to the anticipated start date of the program in relationship to the build season and economic recovery. The target for the number of green buildings that will take advantage of the program is set at 200 in 2010. As the program rolls out and the education/promotion gets underway, we expect an increase in the number of participants to 600 after which the program will need to be formally extended. 17 ïî ó îè %%%Potential Target LEEDLEEDLEEDtotal YearDwellingsCertifiedSilverGoldincentive 2010 200 80 20 5$311,075 2011 600 50 40 10$978,250* 2012 800 0 50 50$1,104,750* * program funding in excess of $500,000 and beyond 2011 would require Council approval Operational Incentives Kitchener Green Home Incentive Program: $500,000 over three years (2009-2011) less all of the following activities as subsidiary enablement tasks: CREW’s administrative costs in delivering promotional support for the program: $5,000 per year; CREW’s costs in organizing and delivering the Green Building Tour: $20,000; CREW’s costs in organizing, promoting and delivering the LEED Home Tour and LEED Open House Days (min 4): $8,000 per year; CREW’s costs in designing an 8-page technical and marketing sensitive blended summary document that will concisely explain the benefits of LEED and ENERGY STAR homes for local builders, realtors, and the public: $5,000; Direct promotional costs for print advertising and ad placement: $20,000 per year. Total incentive funds would be $58,000 in 2010, $25,000 in 2011, and $25,000 again in 2012 subject to additional funding, plus actual incentives paid out to builders. Should CREW be successful in securing an additional $1,500,000 in funding beyond 2011, it is estimated that94.6% of the budget would go to builders in the form of grants, and 5.4% would be invested in appropriate enablement activities (per above) to ensure the program’s success. D.4 Eligibility The Kitchener Green Housing Incentive Program shall comply with the Kitchener Energy and Water Efficiency for Land and Buildings Community Improvement Plan. For the purposes of this program, residential dwellings are single detached, semi-detached, duplex and street townhouse dwellings. Multiple dwellings as defined in the zoning bylaw are not eligible. The Kitchener Green Housing incentive Program is open to all newly constructed residential dwellings (as defined) built within the City of Kitchener during the program and that are constructed to and certified as LEED homes. For the purposes of this program, applicant is defined as the owner of the property. D.5 Program Duration Through the LEAF application, the program has been granted approval for 2009-2011 inclusive. An application for additional funding in 2012 is expected to be made upon successful uptake of the program. D.6 Program Administration The incentive program is proposed to be delivered by the Building Division. The Building Division will design and secure approval for a stream-lined process for management of the incentive program including: Application by eligible applicant, including proof of third-party verification; Review by Building Division, and payment to applicant; Tracking of greenhouse gas and water savings; Semi-annual reports to be approved by council regarding incentives paid, number of homes and builders participating, and of greenhouse gas and water savings gained; 18 ïî ó îç After the incentive expires, tracking whether builders continue to maintain the LEED standard. D.7 Marketing Promotions: Publicity about the Kitchener Green Housing Incentive to ensure high participation from builders, to build market demand for green homes, and to shine a spotlight on Kitchener as a municipal leader and hub of green building. The success of the incentive program depends largely on the public’s perception thereof, and on the local industry’s participation therein. Promotion of the program will be required in order to ensure (1) that it is touted broadly as a testament to the City of Kitchener’s environmental leadership, and (2) that it has maximum participation. The following promotional activities are proposed as part of the program’s delivery: 1. Building Division will prepare and release an announcement of the incentive program, including contact information and website location for further information. The announcement will be dispersed through networks held by City of Kitchener, CREW, Waterloo Region Home Builders Association, Canada Green Building Council, and others as available. 2. Building Division will arrange and conduct information sessions for all interested builders to ensure they understand the incentive program and how to participate. 3. CREW and City of Kitchener will coordinate and conduct media outreach locally to promote the LEAF fund, to describe the Kitchener Green Home Incentive project and its benefits, and to educate the community about why the City chose to invest in green building, and LEED certification in particular. 4. CREW and City of Kitchener will coordinate and conduct media outreach nationally to promote Kitchener as a green-home community, including story submissions by CREW and pitching stories to freelance writers. 5. CREW will photo-document all green building tours/workshops for use in City of Kitchener promotions. Education - Local public education activities to increase understanding of the attributes and benefits of green homes and retrofits, and to increase market demand for green homes. The success of the incentive program depends largely on the public’s perception thereof, and arguably even more so on the local industry’s participation therein. Maximizing industry participation will require a certain degree of educating the industry on the program’s benefits and on its administration and delivery. The following educational activities are proposed as part of the program’s delivery: 1. Conduct a local media and advertising campaign to promote the benefits of LEED and ENERGY STAR (EnerGuide 80) homes, and to increase market demand for green homes in Kitchener, with a goal of increasing the demand for green homes so that the high building standards are maintained after the incentive expires. 2. Conduct the following tours and workshops: a. Green Building Tour: Most notably, this tour will leverage the grand opening of the Ontario Green Home: a LEED-Platinum show home being built this summer in Kitchener as the “Production Home” winner in OntarioGreenSpec.ca’s provincial competition. Thanks to the investment being made by OntarioGreenSpec.ca and their partners/sponsors into their competition launch, this tour will bring political leaders, building industry leaders, environmental leaders, and provincial and national media to shine a spotlight on Kitchener as a hub of green building. This tour is an opportunity for the City of Kitchener to play a role in this event as tour co-sponsor, and to promote the Kitchener Green Home Incentive program. CREW has organized a similar tour in the past, and is excited to be able to leverage this provincial competition to host another this coming year. The tour will focus on the grand opening and the invited dignitaries, but will also be open to the professional public, and will be followed on the weekend by a repeat tour for the general public. The tour will be advertised broadly, especially to the homebuilding community. b. LEED Home Tour: The intent is to capture some of the public interest generated by media coverage of the launch of the Ontario Green Home, above. It would involve a green 19 ïî ó íð building educational workshop at the Ontario Green Home, followed by a bus tour (on GRT hybrid busses) to the three other Home Sweet Home winners, co-hosted by CREW and the City of Kitchener. c. LEED Open House Days: a minimum of four public viewing days would be held throughout 2010-2011 at the Ontario Green Home, including tours throughout the day. These events would be co-hosted by the City of Kitchener and CREW, and could be expanded to include other homes incented by the program as available. The Ontario Green Home will remain open as a model for the full year, and these four days will include planned tour curriculum. 3. Produce an educational brochure to promote the attributes of LEED and ENERGY GUIDE homes, and the benefits for the City of Kitchener and the environment. Copies of the brochure would be made available electronically and in print to local builders participating in the program, to local real estate agents, and to the public. The brochure would also be used for the public education tours and at various local venues, including City of Kitchener and the Ontario Green Home. Authored primarily by CREW, the City of Kitchener LEAF fund would be prominently recognized as the sponsor. 4. Convene and coordinate a green building education committee to involve local expertise in the design and execution of all educational activities and to ensure broad levels of community networking and support for education events. 5. Organize publicity for all education events, including TV, print and radio coverage before and at the events, public service announcements, and e-networking through community organizations. 6. Produce promotional materials for tours, including posters and street direction signage. Note that OntarioGreenSpec.ca will provide educational signage throughout the Ontario Green Home, which can be leveraged in the CREW tours. 7. Organize logistics for all educational events, including refreshments, printed materials, signage, and insurance. D.8 – Monitoring The City of Kitchener will track the estimated green house gas savings, number of builders participating in the program and the level of participation. Update reports to be approved by City Council will be prepared on a semi annual basis. 20 ïî ó íï D.9 – Application Form City of Kitchener Kitchener greenHousing Incentive Program th Grant Application 5 Floor - 200 King St W, Kitchener ON N2G 4G7 p. 741-2433 For Use by Principal Authority Grant Application Number: Permit Number: Date Received: Roll Number: A. Project Information Building number, street name: Unit Number:Lot/con. Municipality: Postal Code: Plan number/other description: Project Value est. $ B. Performance Level and Incentive Objective Performance Level: Incentive Level: stndrd LEED Platinum LEED Silver 1 dwelling 2 dwelling 3 dwelling + LEED Gold LEED Certified Incentive Amount $: C. Applicant Applicant is Authorized agent of owner Last Name First Name Corporation or partnership Street Address Unit Number: Lot/con. Municipality: Postal Code ProvinceE-Mail () - () - () - D. Owner (if different from applicant) Last Name First Name Corporation or partnership Street Address Unit Number:Lot/con. Municipality: Postal Code ProvinceE-Mail () - () - () - E. Builder Last NameFirst NameCorporation or partnership Street Address Unit Number: Lot/con. Municipality: Postal Code ProvinceE-Mail () - () - () - F. LEED Consultant Last NameFirst NameCorporation or partnership Street Address Unit Number:Lot/con. Municipality: Postal Code ProvinceE-Mail () - () - () - G. Declaration of Applicant – Please Print Name I ________________________________________________________________________________________ certify that: The information contained in this grant application, and other attached documentation is true to the best of my knowledge and I have authority to bind the corporation or partnership (if applicable). ______________________ ______________________________ Date Signature of Applicant 21 ïî ó íî