HomeMy WebLinkAboutCAO-12-051 - Regional Brownfield Incentive Program UpdateREPORT TO:Finance and Corporate Services Committee
DATE OF MEETING:
November 26, 2012
SUBMITTED BY: Rod Regier, Executive Director, Economic Development,
519-741-2506
PREPARED BY:
Rob Morgan, Capital Investment Advisor, 519-741-2734
WARD(S) INVOLVED:
All
DATE OF REPORT:
November 15, 2012
REPORT NO.:
CAO-12-051
SUBJECT:
Regional Brownfield Incentive Program Update
RECOMMENDATION:
“WHEREAS the Region of Waterloo’s Brownfield Remediation Tax Increment Grant (TIG)
program supports the mutual objective of the City of Kitchener and Region of Waterloo
with respect to revitalizing underutilized properties, growing the assessment base,
intensification, creating employment and environmental stewardship;
AND WHEREAS the City of Kitchener was advised on October 26, 2012 that the Region of
Waterloo’s TIG and Phase Two Environmental Site Assessment Grant was being
suspended immediately due to lack of funding;
AND WHEREAS the suspension of these programs will likely delay or stop important
redevelopment projects that are currently at various stages of planning and that require
both City and Regional TIG funding to remain viable;
NOW THEREFORE IT BE RESOLVED THAT the City of Kitchener requests that the Region
of Waterloo include funding in the 2013 budget to maintain the existing Brownfield
Remediation TIG program and the Phase Two Environmental Site Assessment Grant
program;
AND FURTHER the City of Kitchener requests that Regional Council direct Regional Staff
to continue to receive and process applications for the Brownfield Remediation
Programs;
AND FURTHER THAT copies of this resolution be circulated to all area municipalities
within the Region of Waterloo”.
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BACKGROUND/REPORT:
The Regional Brownfield Financial Incentive Program was established as a pilot program in
2006 by the Region of Waterloo with limited funding. On September 25, 2012 Regional Council
allocated the remaining funds and consequently funding is no longer available. As a result,
applications made where an approval has not already been granted have been put on hold
subject to any future approval of additional funding by Regional Council. Further, the Region is
not accepting any new applications for the portion of the program that have been put on hold.
The Regional incentive program has three components:
1. Phase II Environmental Site Assessment (ESA) Grants
2. Regional Development Charges By-law Exemptions
3. Regional Tax Increment Grant Program (TIG)
The Phase II ESA grants and the TIG programs have been put on hold; the Development
Charge Exemption component of the program is still active.
The City and Regional Brownfield programs recognize the need to focus growth within existing
built up areas, cleaning up older sites that a previous use has left contaminated plays a key role
in creating a more sustainable and healthy community. Redevelopment of these brownfield sites
is often complicated by the additional costs and liability concerns for potential investors and
developers. The Regional Brownfield incentive program combined with the City’s Brownfield
incentive program helps “level the playing field” between Greenfield development and
revitalizing old underutilized properties.
The Regional Brownfield Financial Incentive program has proven to be a valuable key to
revitalizing local brownfield properties. City staff recommends that the Region be encouraged to
maintain the program in its present form in order to ensure the continued success of the
program in revitalizing underutilized contaminated properties.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The remediation and redevelopment of brownfield properties implements our Community Vision
and the Citizens’ Vision for the Environment:
“Together, we will build an innovative, caring and vibrant Kitchener with safe and thriving
neighbourhoods”;
“Our shared vision is for Kitchener to be a community that focuses significant energy and
resources on becoming more environmentally friendly through investments in things like bike
trails, improved transit systems, tougher environmental bylaws and stricter growth management
policies that limit sprawl.”
The remediation of brownfield properties is in keeping with the following Environmental Strategic
Direction:
“Endorse and implement the proposed Environmental Remediation Strategy.”
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FINANCIAL IMPLICATIONS:
The discontinuation of the Regional Tax Increment Grant Program will result in the City being
required to fund a greater portion of the remediation through our TIG program. Additionally, it
will cap the tax incremental grant (TIG) where the remediation costs exceed the City’s portion of
the tax increment over the 10 year period. This will increase the cost to the redevelopment
project and inhibit the ability for projects to proceed that require this full incentive to be viable or
on a level playing field.
COMMUNITY ENGAGEMENT:
N/A
ACKNOWLEDGED BY: Rod Regier, Executive Director, Economic Development
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