Loading...
HomeMy WebLinkAboutFCS-13-124 - Downtown Kitchener Business Improvement Area (BIA) - Boundary Expansion By-law REPORT TO: Finance & Corporate Services Committee DATE OF MEETING: August 12, 2013 SUBMITTED BY: Christine Tarling, Director of Legislated Services PREPARED BY: Colin Goodeve, Supervisor, Legislated Services (ext. 7278) WARD(S) INVOLVED: 9 & 10 DATE OF REPORT: July 23, 2013 REPORT NO.: FCS-13-124 SUBJECT: DOWNTOWN KITCHENER BUSINESS IMPROVEMENT AREA (BIA) BOUNDARY EXPANSION BY-LAW RECOMMENDATION: That the by-law, as attached to Finance and Corporate Services Department report FCS- 13-124, be enacted to amend City of Kitchener Municipal Code Chapter 70 (Board of Management Downtown Improvement Area) to expand the boundaries of the Downtown Kitchener Business Improvement Area (BIA). BACKGROUND: The current layout of the Downtown Kitchener Business Improvement Area (BIA) boundary is inconsistent, although it 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 the Downtown Kitchener 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. Likewise, the City’s Downtown boundary (as defined in the Official Plan) has grown over the past decade to include traditional retail streets, office towers and the Innovation District. Accordingly, the BIA has proposed to expand its boundaries to incorporate some of this new growth. REPORT: On May 13, 2013, Council gave direction for the Clerk to issue notices of the proposed by-law to alter the boundaries of the Downtown Kitchener BIA. Said notices were sent to every person who was assessed for rateable property in the prescribed business property class located within the existing and newly proposed boundaries. In accordance with Section 209 of the Municipal Act, 2001, a municipality is not permitted to pass a by-law to expand the boundaries of an improvement area if written objections are received from 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 for an affected property. To prevent the passage of the 3 - 1 boundary expansion by-law, those objectors must also account for at least one-third of the taxes levied on rateable property in all prescribed business property classes within the existing improvement area; or, at least one-third of the taxes levied in the geographic area that the proposed by-law would add to the Downtown Kitchener BIA. The Municipal Act, 2001 further assigns responsibility to the Clerk to make a 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 forward for Council’s consideration and the BIA’s boundaries would retain in their existing configuration. The following provides an overview of the objections that were received as a part of this process: Prescribed Thresholds to Prevent the BIA Boundary Expansion Properties Entitled to Projected BIA Levy BIA Levy Existing Notice New Area Area 267 $233,310 $670,000 Total One Third (33%) Threshold Required to 89 $77,770 $223,333 Prevent the Passage of the By-law Number of Objections 3$981$1,349 Received Objections as a 1.12% 0.42% 0.2% Percentage of Total A total of four objections were received to the proposed boundary expansion. One of those objections was disqualified as it was submitted by a tenant who does not pay any part of the taxes for the affected property; and, was therefore deemed ineligible to submit an objection. The three remaining objections equate to only 1.12% of the total number of notices that were served. In addition, those objectors represent only 0.2% of the existing levy and 0.42% of the projected levy for the geographic area that is proposed to be added to the BIA. Accordingly, it has been determined by the Clerk that the objections fail to meet the prescribed thresholds and subsequently there are no legislative impediments to the proposed boundary expansion. Taking into account that objections were not submitted by 98.88% of those persons affected by the boundary expansion, it is being recommended that consideration be given to the draft by-law attached hereto. If approved, the by-law to expand the boundaries of the Downtown Kitchener BIA will not come into force and effect until January 1, 2014 to coincide with the application of their next levy. 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 would further enable the BIA to provide programs and services that enhance the Downtown. FINANCIAL IMPLICATIONS: The proposed boundary expansion could result in a levy increase for the Downtown Kitchener BIA in excess of $200,000. This is additional levied dollars over and above property taxes; and as such, there is no additional cost to City. The exact levy increase will be approved through a separate process for 2014. 3 - 2 The Downtown Kitchener BIA covered the cost related to mailing the required notices to each property owner within the new and existing boundaries. 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 boundary expansion. At the April 24, 2013 Annual General Meeting of the BIA members, the membership unanimously endorsed the proposed boundary expansion. Pursuant to the Municipal Act, 2001, 267 notices were sent as a part of this process, which accounts for every person who was assessed for rateable property in the prescribed business property class located within the existing and newly proposed boundaries. In addition to the prescribed engagement process set out in the Municipal Act, 2001, the BIA and Economic Development staff undertook the following additional outreach activities: 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. In-person visits were conducted of prospective members by BIA staff, which included dropping off an invitation to a Networking evening at the Tannery in May where they could learn more about the BIA and boundary expansion. 14 prospective members attended out of 60 attendees. Prospective members were invited to the BIA’s June Networking event; of which six prospective members attended. One-on-one meetings were held with all major property owners and key businesses. Various telephone conversations were undertaken with prospective members to explain the project and the value of BIA membership. Board members were assigned to reach out to prospective members about the project and answer questions (via a combination of telephone and in-person visits). ACKNOWLEDGED BY: D. Chapman, Deputy CAO - Finance & Corporate Services Department 3 - 3 BY-LAW NUMBER OF THE CORPORATION OF THE CITY OF KITCHENER (Being a by-law to amend Chapter 70 of The City of Kitchener Municipal Code with respect to Board of Management Downtown Improvement Area) WHEREAS it is deemed expedient to amend Chapter 70 of The City of Kitchener Municipal Code as adopted by By-law 88-100; ND WHEREAS Council wishes to expand the Downtown Improvemen At Area; AND WHEREAS notice of the intention of Council to pass this amending by- law has been served by mail as required by section 210(1)(a) of the Municipal Act, 2001, S.O. 2001, c. 25; AND WHEREAS 60 days from the date of the last mailing of such notice have passed; AND WHEREAS the Clerk of The Corporation of the City of Kitchener has considered section 210(3) of the Municipal Act, 2001, S.O. 2001, c. 25 and has determined that the objections received would not prevent Council from passing this amending by-law; NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as follows: 1. The Downtown Improvement Area within Schedule “A” is hereby expanded b y substituting the new Schedule “A” attached hereto. 2. This by-law shall come into force and effect on January 1, 2014. PASSED at the Council Chambers in the City of Kitchener this day of , A.D. 2013. ___________________________________ __ Mayo r ___________________________________ __ Cler k 3 - 4 14 207 215-219 3 - 5