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HomeMy WebLinkAboutFCS-13-069 - Downtown BIA Boundary Expansion REPORT TO: Finance & Corporate Services Committee DATE OF MEETING: May 6, 2013 SUBMITTED BY: Rod Regier, Executive Director of Economic Development PREPARED BY: Cory Bluhm, Manager, Downtown Community Development (ext. 7065) Colin Goodeve, Supervisor, Legislated Services (ext. 7278) WARD(S) INVOLVED: 9 & 10 DATE OF REPORT: April 19, 2013 REPORT NO.: FCS-13-069 SUBJECT: DOWNTOWN KITCHENER BUSINESS IMPROVEMENT AREA (BIA)BOUNDARY EXPANSION RECOMMENDATION: That pursuant to Section 209 of the Municipal Act, 2001, notice of the proposed by-law to alter the boundaries of Downtown Kitchener Business Improvement Area (BIA) be sent to every person who is assessed for rateable property that is in a prescribed business property class which is located within the existing and newly proposed boundaries, as outlined in Appenervices Department report FCS-13-069. BACKGROUND: A Business Improvement Area (BIA) is a geographic area of a municipality where all businesses within this boundary are taxed an additional levy on top of typical property taxes. The levied funds are managed by a board of management and are usually used to fund initiatives relating to marketing, promotions, beautification and festivals. The current Downtown Kitchener BIA boundary is highly irregular, although generally includes all properties which front onto Duke Street, King Street and Charles Street, between Francis Street and Cedar Street. Most of the office towers along Weber Street, as well as the loft offices of the Innovation District (72 Victoria, the Tannery, Breithaupt Block) are currently outside the BIA boundary. The historic intent of this BIA has been to support street-level commercial activity. However, given the significant growth of the Downtown office sector in the past decade, most recently attributed to growth of the Tannery, the Downtown business community is very different today. The relationship between office users and retailers is much stronger, and a growing portion of the BIA services benefits both office users and owners of office buildings. past decade to include both the traditional retail streets, the office towers and the Innovation District. 2 - 1 REPORT: ii.further align the efforts of the City and BIA as Downtown Kitchener Action Plan (2012-2016); However, the BIA wishes to proceed with a staged approach to its expansion. This initial phase of expansion would include all of the lands between Weber Street and Charles Street, between Victoria Street and Cedar Street, as well as a number of properties along Victoria and Charles (such as the Tannery). In the future, the BIA would undertake further expansion as office growth in the Innovation District continues. Municipal Act Powers & Process Section 209 of the Municipal Act, 2001 empowers a municipality to alter the boundaries of an improvement area.Before a by-law may be passed to alter the boundaries of the BIA, notice of the proposed by-law shall be sent by prepaid mail to every person who is assessed for rateable property that is in a prescribed business property class which is located within the existing boundaries of the BIA; as well as in the geographic area the proposed by-law would add to the improvement area. Within 30 days all persons who received the notice are required to provide a copy of it to each tenant of the property to which the notice relates who is required to pay all or part of the taxes on the property. In addition, within that 30 day timeframe they are required to provide the Clerk with a list of all such tenants and the share of the taxes that each tenant is required to pay; as well as the share that the property owner is required to pay. A municipality is not permitted to pass a by-law to expand the boundaries of an improvement area if written objections are received by the Clerk within 60 days after the last day of mailing of the notices; and, those objections have been signed by at least one-third of the total number of persons entitled to notice and/or those tenants that pay all or part of the taxes of an effected property. To prevent the passage of the boundary expansion by-law, those objectors must account for at least one-third of the taxes levied for purposes of the general local municipal levy on rateable property in all prescribed business property classes in the improvement area; or,at least one-third of the taxes levied in the geographic area the proposed by-law would add to the existing improvement area. The Municipal Act assigns responsibility to the Clerk to make a 2 - 2 determination as to whether the objections to the proposed boundary expansion meet the stipulated thresholds. If the prescribed thresholds are met then the by-law would not be put their existing configuration. If no objections are received, or they fail to meet the requirements set out in the Municipal Act, then it is anticipated that a by-law would be brought forward in the fall of 2013 to expand the Request by the Downtown Kitchener BIA may proceed with the formal consultation process as described by the Municipal Act. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The Downtown Kitchener BIA is a key strategic partner with the City in creating a Dynamic Downtown. The additional levy created by this expansion further enables the BIA to provide programs and services that enhance the Downtown. FINANCIAL IMPLICATIONS: The proposed boundary expansion would result in a levy increase for the BIA in excess of $200,000. This is additional levied dollars over and above property taxes. As such, there is no additional cost to City. The BIA will be covering the cost for the registered mailing to each property owner. COMMUNITY ENGAGEMENT: The proposed boundary expansion was considered at the March 19, 2013, Downtown Kitchener BIA Board of Directors meeting, at which time the Board endorsed the recommendation contained herein. At the April 24, 2013 Annual General Meeting of BIA members, the membership unanimously endorsed the proposed boundary expansion. In addition to the prescribed engagement process of the Municipal Act, the BIA will also be undertaking the following additional outreach: In the winter of 2013, a survey was conducted of existing members, of which 13% responded. Only 2% of respondents were opposed to the proposed expansion; A public information session will be held in May for all interested parties to attend; and, One-on-one meetings will be held with all major property owners and key businesses; and, Prospective members in the proposed expanded area will be invited to attend BIA member networking events in May and June to connect with existing members and learn more about the BIA. ACKNOWLEDGED BY: D. Chapman, Deputy CAO -Finance & Corporate Services Department 2 - 3 207 215-219