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HomeMy WebLinkAboutFinance & Corp - 2004-03-01FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 1~ 2004 CITY OF KITCHENER The Finance and Corporate Services Committee met this date, commencing at 12:40 p.m. Present: Chair - Councillor B. Vrbanovic Mayor C. Zehr and Councillors M. Galloway, J. Smola, G. Lorentz, J. Gazzola and C. Weylie. Staff: J. Fielidng, Chief Administrative Officer G. Sosnoski, General Manager of Corporate Services & City Clerk P. Houston, General Manager of Financial Services & City Treasurer F. Pizzuto, General Manager of Downtown Development & Community Services C. Ladd, General Manager of Strategic Services L. MacDonald, City Solicitor G. Borovilos, Director of Economic Development J. Willmer, Director of Planning R. Pitfield, Director Corporate Communications/Marketing J. Koppeser, Manager of Licensing G. Richardson, Manager of Downtown Planning P. Bacon, Senior Economic Development Officer D. Gilchrist, Committee Administrator SSD-04-002 - BUSINESS ENTERPRISE CENTRE UPDATE - FUNDING REQUEST As Mr. P. Eichinger was unable to attend this meeting, the Committee agreed to defer consideration of this matter to its March 22, 2004 meeting. CSD-04-035 - LIQUOR LICENCE APPLICATION REVIEW - PASSIONS RESTAURANT AND LOUNGE - 320 KING STREET WEST The Committee was in receipt of Community Services Department report CSD-04-035, dated February 25, 2004, in response to an application to the Alcohol and Gaming Commission of Ontario by Natasha Thomas, for a liquor licence for Passions Restaurant and Lounge, 320 King Street West, Kitchener. The report recommends the City oppose the application; however, should it be granted, the applicant requests specific conditions be imposed by the Alcohol and Gaming Commission on her licence, or she agree with the City to comply with the specific conditions. Mr. G. Richardson introduced the report explaining that unfortunately staff and the Liquor Licence Application Review Committee recommend the application to the Alcohol and Gaming Commission be opposed, due to an incident that took place on this property in Ms. Thomas's absence. Also, Ms. Thomas has not been very forthcoming with the information requested by staff with respect to her business operation. Ms. Thomas was in attendance and advised that the primary use of her business is a restaurant. With respect to the incident referred to by Mr. Richardson, she explained that someone rented her facility for a private function, and she was advised that a Special Occasion Permit had been obtained by the people renting the property. She was not in attendance when the incident occurred, and was not part of the event. Ms. Thomas then circulated a copy of her proposed menu noting that the ratio of food sales to liquor sales will be 70/30. Ms. Thomas also advised that she was been waiting several weeks for her Business Licence, for which she has paid the required fee. Ms. J. Koppeser advised that Hydro must still approve the Public Hall Licence before it can be issued, a Public Hall Licence being required for the assembly of over 100 people. Upon questioning, Ms. Thomas advised that her experience in running a restaurant comes from the fact that her parents owned a restaurant. Mr. M. Schreiter, KDBA, advised that Ms. Thomas' plan for the running of the restaurant is incomplete, and it is appropriate for the City to oppose the liquor licence application. He noted that resources to assist Ms. Thomas with her business plan are available through the Business Enterprise Centre. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 1 ~ 2004 - 28 - CITY OF KITCHENER CSD-04-035 - LIQUOR LICENCE APPLICATION REVIEW - PASSIONS RESTAURANT AND LOUNGE - 320 KING STREET WEST (CONT'D) Councillor Lorentz put forward a motion that the City not oppose the liquor licence application, stating that Ms. Thomas should be given the benefit of the doubt. The discussion then returned to the incident that took place at the premises, and the Committee was advised by Ms. Sheryer that charges are still pending and should not be discussed publicly. On motion by Mayor C. Zehr - it was resolved: "That an In-camera meeting be held immediately to consider a matter subject to solicitor-client privilege." This meeting recessed at 1:10 p.m. and reconvened at 1:15 p.m. following an In-camera meeting. Councillor Lorentz spoke in support of his motion not to oppose the Liquor Licence Application. Some Committee members spoke against the motion, noting that the property was used as a Public Hall without a licence, and concern was raised as to whether Ms. Thomas has a clear grasp of her responsibility as a restaurant owner. Councillor Lorentz motion was voted on and lost. On motion by Councillor J. Gazzola - it was resolved: "That the Alcohol and Gaming Commission of Ontario (AGCO) be advised that the Council of the Corporation of the City of Kitchener opposes the application for a liquor license for Passions Restaurant and Lounge, located at 320 King Street West, Kitchener, applied for by Natasha Thomas (herein referred to as the "Applicant"); and, That staff enter into an agreement with the applicant, should she be willing, wherein the applicant agrees to abide by the following conditions, and to request they be added to her licence if the AGCO chooses to issue the licence in spite of Council's opposition: 1. To post in a conspicuous place and abide by the Downtown Licensed Establishments Code of Conduct; 2. To become a member of the Kitchener Downtown Business Association's License & Entertainment Committee and attend its meetings; To abide to a set 30% monthly ratio of alcohol sales to gross refreshment sales (including food and other sundries) as set out in her applications (in other words, alcohol sales will be limited to 30% of gross refreshment sales); 4. To stop serving alcohol by 2:00 a.m. daily; 5. To voluntarily surrender the liquor license to the AGCO should the applicant cease to operate this establishment in the future; To notify the Clerk of the City of Kitchener in writing of any applications to change the license at the time the application for the change is made to the AGCO, and not to expand the establishment without the consent of the City's Council; 7. To comply with the noise by-law and the smoking by-law; and, 8. These conditions shall bind all successors, assigns and subsequent licence holders (if any); and further, FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 1 , 2004 - 29 - CITY OF KITCHENER 3. PRESENTATION - COMMUNITECH TECHNOLOGY ASSOCIATION INC. - FUNDING REQUEST That staff request the AGC© to attach the above mentioned conditions to the liquor licence should they issue the licence in spite of Council's opposition." Ms. J. Jantzi of Communitech Technology Association was in attendance to support the association's request for increased funding from the City of Kitchener in 2004. In this regard Ms. Jantzi gave a PowerPoint presentation outling: the relationship between the City of Kitchener and Communitech, Communitech's accomplishment over 2002-2003, and the funding request. A printed copy of this presentation had previously been provided to Committee members. Ms. Jantzi advised that the additional funds will be used to help finance the Business Accelerator Program, the Website and Marcomm, and the pursuit of other government funding. She advised the Committee that although the association is self-sustaining with respect to their current program, they can not expand unless they receive additional funding. Ms. Jantzi noted that funding from the City of Cambridge will not be forth coming this year, neither will they be purchasing a membership in 2004. A discussion then took place with respect to anticipated funding from the City of Waterloo and the Region, and whether the Region should provide all the municipal funding being requested by this association. Councillor J. Gazzola requested that Communitech's complete financial statements be provided to the Committee. On motion by Mayor C. Zehr - it was resolved: "That consideration of request of Communitech Technology Association for funding of $35,000. from the City of Kitchener in 2004, be deferred and referred to the Special Finance and Corporate Services Committee meeting of March 8, 2004/' 4. CRPS-04-029 - 2004 STREET VENDORS BY-LAW The Committee was in receipt of Corporate Services Department report CRPS-04-029, dated February 26, 2004, recommending that, at the March 8, 2004 Council meeting, the 2004 Street Vendors By-law be adopted. A draft version of the proposed by-law was attached to the staff report. On motion by Councillor G. Lorentz - it was resolved: "That the 2004 Street Vendors By-law, substantially in the form of the draft by-law attached to Corporate Services Department report CRPS-04-029, be considered at the March 8, 2004 Council meeting." SSD-04-007 - REVISED OFFER TO PURCHASE - SITE 154 - HURON BUSINESS PARK - WASHBURN DRIVE The Committee was in receipt of Strategic Services Department report SSD-04-007, dated February 23, 2004, recommending acceptance of two offers to purchase land in Phase III of Huron Business Park, and, if accepted, release of one of the proposed purchasers from an earlier agreement with the City for all the lands which are the subject of the two new offers. It was noted in the report that the proposed change in purchasers will have no detrimental financial impact on the City, and the uses and site design will be the same as that for the original offer. Ms. P. Bacon was in attendance to represent the report and answer any questions the Committee might have. FINANCE & CORPORATE SERVICES COMMITTEE MINUTES MARCH 1,2004 - 30 - CITY OF KITCHENER SSD-04-007 - REVISED OFFER TO PURCHASE - SITE 154 - HURON BUSINESS PARK - WASHBURN DRIVE (CONT'D) On motion by Councillor G. Lorentz - it was resolved: "That the City accept an Offer to Purchase from H. Polzl Consulting Limited in Trust for a company to be incorporated, for part of Part 2 on Reference Plan 58R-11564 being a parcel of land in Huron Business Park, Phase III, having an area of approximately 2.95 acres at the price of $80,000 per acre, for a total purchase price of $236,000, shown as Parcel "A" on Schedule A, attached to Strategic Services Department report SSD-04- 007, and the Mayor and Clerk be authorized to execute any necessary documentation in this regard required by the City Solicitor; and, That the City accept an Offer to Purchase from 1581662 ONTARIO INC. for Part 7 and part of Part 2 on Reference Plan 58R-11564, being a parcel of land in Huron Business Park, Phase III, having an area of approximately 5.98 acres at the price of $80,000 per acre, for a total purchase price of $478,400, shown as Parcel "B" on Schedule A, attached to Strategic Services Department report SSD-04-007, and the Mayor and Clerk be authorized to execute any necessary documentation in this regard required by the City Solicitor; and, That Parcel "B", on Schedule A be exempt from the resolution requiring a 2.0 metre berm along the Bleams Road property and in place require a landscape buffer to the satisfaction of the City of Kitchener; and further, That the City release the agreement made with 1581662 ONTARIO INC. for Parts 2 and 7 on Reference Plan 58R-11564, being a parcel of land in Huron Business Park, Phase III, having an area of approximately 8.93 acres at the price of $80,000 per acre, for a total purchase price of $714,400, provided the above Offers of Purchase are accepted by the City." PRESENTATIONS - BUSINESS CASES FOR: A) WEST SIDE EMPLOYMENT LANDS B) DOWNTOWN INVESTMENT PACKAGE The Committee was in receipt of two business cases prepared by staff: "West Side Employment Lands", dated March 2004, and "The Downtown Investment Package Downtown Kitchener: Driving Economic Growth in Waterloo Region", dated February 2004. In addition the Committee was in receipt of a printed copy of a PowerPoint presentation titled "Economic Base Analysis" prepared by Matthew Fischer & Associates Inc. Ms. C. Ladd introduced these business cases advising they are the start of an economic development investment program that will help ensure the availability of Employment Land in the City of Kitchener. She stated that there is a definite need for an investment strategy to plan for the City's future, and such planning has taken place in the City before. Although an investment strategy will cost money, there is also a cost associated with doing nothing. The strategy for Employment Lands is to maintain and expand existing businesses, at the same time attract new businesses. Ms. Ladd advised that the development of the Knowledge and Education Sector can have a rippling effect, including the adaptive reuse of buildings, and the ability to increase employment in Downtown Kitchener. She also noted that the Region has proposed industrial development around the Airport; however, this municipality has not been invited to participate at this point in time. In conclusion, Ms. Ladd advised that these two business cases will be presented to the public at a meeting on Wednesday March 3, 2004, and the public input obtained will be presented to Council. Mr. M. Fischer, Matthew Fischer & Associates Inc., presented the "Economic Base Analysis", on the City of Kitchener. He advised that jobs in the City's manufacturing sector, over the last 5 years, have not grown as rapidly as in previous years. Had the City not provided industrial MARCH 1,2004 FINANCE & CORPORATE SERVICES COMMITTEE MINUTES - 31 - CITY OF KITCHENER PRESENTATIONS - BUSINESS CASES FOR: A) WEST SIDE EMPLOYMENT LANDS B) DOWNTOWN INVESTMENT PACKAGE (CONT'D) land, the growth in industrial employment would have been even weaker. He advised that the cycle time for business is getting shorter, and it is essential that industrial land, in its highest state of development, be available. When existing companies cannot expand, they move to another municipality. With respect to the Education Sector, Mr. Fischer advised that there is good growth across the Region, and this Sector of the economy should be further explored. Mr. G. Borovilos presented the business case for the development of West Side Employment Lands. He advised that by 2006 the City will have sold its remaining industrial employment lands. If it is sold before new serviced industrial land is available, jobs and skilled labour will leave the City. He advised the West Side Employment Lands are a natural extension of the Huron Business Park, containing 350 acres. This land can be developed within a 3-5 year time frame, and has a horizon of 20 years. Although there is some privately owned land that can be put to industrial use, only some is serviceable, and most has some form of development constraint. In comparison to Huron Business Park which had 390 acres, 250 acres of which were available for sale, the West Side Employment Lands contain 350 acres and 200 acres can be developed for industrial use. Mr. J. Fielding advised there are significant problems to be faced, and although this is an expensive proposition, there is no industrial land immediately available in the Region. Development of Kitchener's East Side will take some time. A discussion then took place as to the number of potential industrial acres in this area of Highway 401, including Guelph and Brantford as well as the Region of Waterloo. Councillor Lorentz stated that if Industrial Land is not available, industries will leave Kitchener, and it is unlikely that municipalities will enter into partnerships for the development of industrial land. Private enterprise will not become involved as this type of development is not profitable for them. Mr. F. Pizzuto presented the business case for Downtown Kitchener Employment Lands, suggesting a need to diversify the City's investment; as balanced growth is essential for a healthy economy. He advised that 30 acres in downtown Kitchener plus substantial square footage of built space, is available for development, with the advantage that there is existing infrastructure. Further, Council is already committed to spending on infrastructure maintenance and improvements. This investment will take place whether Council proceeds with Downtown employment lands or not. Several members of the Committee requested cost/benefit analysis for these business cases, and when the benefits of these businesses will be realized. Mr. Pizzuto advised that there will be an immediate benefit with the Downtown economy with the establishment of the Wilfrid Laurier University of the School of Social Work. The University of Waterloo will have a small initial impact which will grow over time. He advised that they are already having discussions with private sector partners to cluster with them. The longer term benefits cannot be calculate at the time, but are there, as can be evidence by other municipalities. With the respect to the expected contribution by the City of Kitchener towards the development of Downtown Employment Lands, Mr. Pizzuto advised that staff are already investigating all funding options. The Chair thanked staff for the incredible amount of work put into the preparation of these two business cases. ADJOURNMENT On motion, the meeting adjourned at 4:35 p.m. Dianne Gilchrist Committee Administrator