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HomeMy WebLinkAboutCouncil Minutes - 1995-07-04 SCOUNCIL\1995-07-04-SPE J U LY 4, 1995 SPECIAL COUNCIL MINUTES CITY OF KITCHENER A special meeting of City Council was held at 4:00 p.m. this date with all members present except Councillor C. Weylie. Notice of the special meeting had been previously given to all members of Council by the City Clerk pursuant to Chapter 25 of the Municipal Code. Mayor R. Christy advised that the purpose of this special meeting was to receive the Final Report of the Mayor's Task Force on the Downtown. Mayor Christy thanked the Task Force, comprised of Mr. lan MacNaughton (Chair), Mr. John MacDonald, Ms. Mary McLaughlin, Mr. Mac Voisin and Mr. Bruce Whitestone, for their efforts. He also extended thanks to the staff participants; namely, Ms. Sybil Frenette, Administrative Director, Mr. David Corks, Planner, and Ms. Catherine Heal, Administrative Assistant. The report, which was previously circulated to Members of Council broadly outlines an action plan for revitalization of the Downtown and includes 47 separate recommendations grouped around the following major components: Support Business; Bring People Downtown; Increase Housing; Improve the Physical Environment; and, Management Structure. Mayor R. Christy noted that he was pleased with the way the Task Force had formed partnerships with Council, citizens, business and staff in carrying out its mandate. He also noted that the Task Force has ensured that the recommended actions are cost-effective. Mr. lan MacNaughton spoke on behalf of the Task Force and noted that the Final Report follows upon the receipt of 100 separate briefs, attendance at numerous public meetings and a survey of the attitudes of Kitchener residents toward the Downtown. He pointed out that the Task Force has worked for approximately five months and believes in the recommendations in its Final Report. Mr. MacNaughton then introduced Task Force members. Mr. lan MacNaughton referred to the specific recommendations which have already been addressed by Council; namely, free parking along King Street and side streets and twenty-four hour cleaning of the Downtown. He pointed out that Mayor Christy's decision to establish a Task Force appears to have coincided with general public feeling and support for Downtown revitalization, and that this support and interest is in evidence in all sectors of the community. He referred to a new and more positive attitude toward the Downtown and pointed out that citizens want the Downtown to be successful because they are proud of their City. Mr. lan MacNaughton referred to some of the current problems in the Downtown including office vacancies exceeding 40%, an annual loss of tax revenue amounting to approximately $2,000,000, the loss of important retailers and a decline in retail share to its present level of less than 10%. He pointed out that business has migrated from the Downtown to suburban malls and that though this is in evidence across North America, the Task Force does not accept the attitude that the trend is beyond local control. He referred to the development of successful Downtowns in both Waterloo and Guelph, as well as positive factors like a strong Regional economy and the lowest unemployment rate in the country. Mr. MacNaughton stressed the importance of encouraging Downtown investment and referred to a recent decision by the Cora Group to convert a Downtown office tower into an upscale condominium development. He suggested that this action would not have taken place in the absence of the initiative shown to date by Council. Mr. lan MacNaughton referred to three broad components of the Task Force Strategic Action Plan involving the role of the private sector in creating a positive climate for business, initiatives to bring people into the Downtown and the development of a management plan to create a common focus. He suggested that the City focus on elements of appearance, cleanliness and safety and not become entangled in the private sector mandate. Mr. MacNaughton referred to the contribution to the Task Force made by Ms. S. Frenette, Mr. D. Corks and Ms. N. Brawley and recommended that they be included in the management structure outlined in the report. Mr. Mac Voisin outlined the section of the Strategic Action Plan entitled "Support Business" and the related recommendations. He referred to developing retail trends and the shift away from warehouse style retailers toward shops offering unique products. He noted that such retailers would look for attractive street settings and would be a welcome addition to the Downtown. He also referred to current Iow rents which would also be attractive to small, new businesses, as well as established retailers who prefers streetfront as opposed to mall locations. Mr. Voisin also referred to development of an action plan JULY 4, 1995 SPECIAL COUNCIL MINUTES - 285- CITY OF KITCHENER for business development which would be jointly sponsored by the City and the Kitchener Downtown Business Association (KDBA). The plan which would be used to attract targeted new businesses would examine the existing retail market, profile customers who presently use the Downtown and those who would come for specific retail opportunities. Mr. Voisin pointed out that Downtown parking has consistently been cited as one of the greatest deterrents to maintaining and attracting business and urged development of a new parking strategy which is more supportive of the business environment. Mr. Voisin then referred to the 14 recommendations aimed at strengthening existing Downtown businesses, promoting economic activity through business recruitment, and marketing the downtown as a place to do business. Mr. Voisin also referred to his belief that in implementing these recommendations, the City will see a gradual increase in property values. Ms. Mary McLaughlin outlined the section of the Strategic Action Plan entitled "Bring People Downtown" and associated recommendations. She noted that the hiring of a professional Downtown Events Co- ordinator to animate King Street, Civic Square and Victoria Park is a key recommendation. Ms. McLaughlin pointed out that the continuing emphasis on bringing people Downtown is based on the premise that many identified safety problems will disappear as people attract more stores and services, make others feel safer, undesirables less visible and the atmosphere more vibrant. She then highlighted the six associated recommendations, five of which were assigned a No. 1 priority. Mr. Bruce Whitestone outlined the section of the Strategic Action Plan entitled "Increase Housing" and the associated recommendations. Mr. Whitestone stressed that housing will add people to the Downtown permanently and is a key ingredient of the Action Plan. He suggested that the City must do everything it can to encourage new residential development through the waiving of fees and levies while at the same time protecting existing neighbourhoods and supporting individual homeowners. Mr. Whitestone then highlighted each of the five recommendations. Mr. John MacDonald outlined the section of the Strategic Action Plan entitled "Improve the Physical Environment" and associated recommendations. He emphasized that there are two major thrusts in this regard, the first involving a change to the physical environment to create an integrated whole that is pedestrian friendly, safe, and creates relationships among people. The second thrust involves continually increasing the minimum standard for an acceptable Downtown environment. Mr. MacDonald referred to general upgrading, safety issues, and the pattern of the Downtown road network, which the report characterizes as awkward, indirect and pedestrian unfriendly. Mr. MacDonald pointed out that the Task Force recommends returning to the traditional layout of the Downtown which would involve the addition of on-street parking and two-way traffic on Duke and Charles Streets. He then reviewed the nineteen associated recommendations. Mr. lan MacNaughton reviewed the proposed Management Structure for Downtown revitalization and the three related recommendations. He presented a graphic of the proposed management model for Downtown headed by the Mayor ("Mr. Downtown") and City Council with input from a community-based Downtown Advisory Committee. Other components would include the Downtown Action Team (Planner, Business Development Officer, Events Co-ordinator and support resources), a Downtown Co-ordination Team (Downtown Director), a Dedicated Inter-Departmental Team of City staff, and a Downtown Strategic Team (Chief Administrative Officer, City Treasurer, General Manager of Planning & Development). Mr. MacNaughton suggested that Mr. D. Corks of the Planning & Development Department, as well as a representative of the Economic Development Department be seconded for a two-year period to work exclusively on the Downtown. He noted that the Events Co-ordinator is a new position, and suggested that outside talent be sought for this task. Mr. Mac Voisin elaborated on the concept of the "Downtown Strategic Team" noting that at present no single organization has a mandate to give Downtown Kitchener priority treatment, and that this has resulted in a lack of cohesion and common purpose which makes it difficult to promote the Downtown, pursue opportunities and respond pro-actively. In addition, Mr. Voisin reported that the Task Force is proposing that the Downtown Action Committee be renamed the Downtown Advisory Committee and new terms of reference developed. He thanked the Downtown Action Committee for their past efforts, and referred to their proposed future role in Downtown development. Mr. Voisin stressed that the Task Force is explicitly recommending the City not hire new persons to undertake the management of the Downtown, given the importance of staff developing the in-house skills to work with the business and investment community, and the level of talent in the current staff complement. He stated that the Task Force believes that the Downtown Director, Downtown Planner and Downtown Business Development Officer positions can be filled from within City Hall by shifting resources. JULY 4, 1995 SPECIAL COUNCIL MINUTES - ~86- CITY OF KITCHENER The Task Force then answered questions posed by individual members of Council. Councillor G. Lorentz thanked the Task Force for the time and effort put into the Report and asked for clarification as to the value of the municipal fee exemptions referred to in Recommendation No.4. Mr. lan MacNaughton responded that recent annual fee revenue in this area totalled approximately $30,000. He also stressed the importance of gaining new assessment revenue by encouraging projects which will in turn illustrate that revitalization is taking place in the Downtown. Councillor Lorentz also requested clarification of Recommendation No.5 involving relocation of the Kitchener Farmers' Market. Mr. John MacDonald replied that the Task Force believes that this issue would likely come forward as part of a major business development plan and that the Farmers' Market as an institution has a major role to play relative to the theme and ambience of the Downtown. He noted, however, that though the Market's success is fairly localized, it has the potential to attract from beyond the City and Region and its location should be optimized to improve its drawing power. Councillor G. Lorentz also asked for clarification of Recommendation No.7 which involves linking the Kitchener Downtown Business Association (KDBA) to the City's computer network. Ms. S. Frenette replied that creation of a new database is proposed which would facilitate communication between the Downtown Action Team and the KDBA. The purpose of the database would be to identify current market and physical information useful in promoting Downtown development. Mr. lan MacNaughton also pointed out that the database could be used to monitor improvements in the assessment base and vacancy reductions. He suggested initial monitoring intervals of six months and one year. Councillor M. Yantzi offered the opinion that the value of the Task Force report is that its recommendations seem both realistic and achievable. Mr. MacNaughton stressed the importance of bringing about action through focusing on a target and relentlessly pursuing a result. Councillor M. Wagner thanked the Task Force for what he characterized as a fresh, new look at the Downtown and questioned the priority assigned to moving the Farmers' Market in the context of the overall Strategic Action Plan. Mr. MacNaughton replied that the Task Force is not advocating a quick relocation, and that a move should only occur if Council is convinced a package solution is in place relative to Market Square, and a new location has been identified which will lead to a more successful Market. In response to Councillor Wagner, both Mr. MacNaughton and Mr. MacDonald stressed the importance of the media liaison person for the Downtown. It was noted that it is important in this regard to look at existing staff who could be trained in this function. Councillor T. Galloway asked for clarification of the $30,000 figure referred to earlier by Mr. MacNaughton in conjunction with Recommendation No.4 involving a three-year exemption on municipal fees. Mr. T. McCabe verified that the amount is reasonably accurate and that development charges would account for $3,000 with the remaining $27,000 being building permit fees. Councillor Galloway asked for comment on the premise underlying Recommendation No.3 involving a financial analysis of tax structure impediments to Downtown business development. Mr. MacNaughton pointed out that the assessed value of property in the Downtown is artificially high based on the most recent assessment and is discouraging business. He added that taxes in the Downtown should more accurately reflect current property values. Councillor Galloway referred to an upcoming 1996 reassessment and questioned whether any discrepancies would be corrected at that time. Mr. MacNaughton acknowledged that the assessment situation may be corrected over time; however, the problem is already several years old and unless the situation is corrected, new business cannot be attracted to the Downtown and the City runs the further risk of losing more existing businesses. Councillor Galloway argued that there is no net increase in tax revenues as a result of reassessment and that any downward adjustments must be matched elsewhere in the community by assessment increases. Mr. MacNaughton acknowledged the necessary balance, but urged Council not to leave this adjustment to the Province but to obtain expertise in this area to better understand what will happen. He also urged Council to listen to the views of the business owners presently in the Downtown. Councillor Jake Smola asked for clarification of Recommendation No.9 involving creation of a "small business incubator in Downtown office buildings". Ms. S. Frenette replied that this notion was promoted by the Economic Development Department as a means of using vacant space in the Downtown. Ms. V. Gibaut advised that the incubator idea has been discussed with potential retailers and would involve leasing space at Iow rent for a short period of time to test or otherwise gain experience in the business environment. In response to Councillor Jake Smola, Ms. Gibaut pointed out that the small business office located in City Hall provides pre-start up consultation only and is the only such service in the area. Councillor Jake Smola enquired as to the fees paid by Canada Trust to the City as a result of construction of the first phase of its corporate headquarters. Mr. T. McCabe replied that to the best of his recollection, $150,000 was paid for building permit fees, and if the Development Charge By-law was in effect at that time, they would have paid an additional .84 cents per square foot. In response to Councillor Jake Smola, Mr. J. Gazzola indicated that he was uncertain as to the premise for Recommendation No.3 (financial analysis of tax structure impediments to Downtown business) as he feels there is already equitable assessment Region-wide. He noted that it is difficult to compare the assessment base for JULY 4, 1995 SPECIAL COUNCIL MINUTES - ~87- CITY OF KITCHENER businesses in Kitchener to other localities such as Toronto or London. He reminded Council that the Province uses an equalization factor in this regard and questioned whether Downtown businesses are in fact being penalized. Mr. Gazzola asked that he be provided with a list of ten businesses in the Downtown which have been adversely affected by reassessment and that he could investigate each of these and report. Mr. lan MacNaughton clarified that Recommendation No.3 does not mean suspension of all taxes, but proposes that the City understand the changes which will occur and how these compare to the competition. Ms. Sheila Fiedler-Schneider appeared in her capacity as the operator of Fiedlers of Kitchener, 197 King Street East, a family business which has been operating in the City for approximately 36 years. Ms. Fiedler-Schneider referred to the increase in taxes since she took over operation in 1992, which she characterized as a great deal higher than in other Cities where she has business contacts. She also acknowledged that she has considered relocating her business. Mayor R. Christy asked that Ms. Fiedler- Schneider provide Mr. Gazzola with any relevant information. Mr. Gazzola responded that he often hears complaints from ratepayers claiming their taxes are higher than their neighbours and that in the vast majority of instances, the neighbours are supplying the wrong information. Councillor Jake Smola also asked for a comparison of business assessment in the Downtown and Victoria Street areas. Councillor G. Lorentz referred to Recommendation No.15 concerning the hiring of the Downtown Events Co-ordinator, and in particular the discrepancy in cost-estimates. It was noted that the Task Force estimates a combined salary and event cost of $69,000 whereas the Parks & Recreation Department anticipated costs of approximately $170,000. Mr. lan MacNaughton replied that the Task Force had not intended that the City create any new positions other than the Events Co-ordinator and that it was intended that any secretarial support would be reallocated from existing staff. Councillor G. Lorentz enquired as to the impact on the private sector of Recommendation No.20 which involves providing free meeting and convention facilities in City Hall. Ms. S. Frenette indicated that eligible groups would likely be organizations such as Architect's Associations which would not normally use other, larger local facilities. Councillor B. Vrbanovic questioned whether the Task Force sees the Downtown Events Co- ordinator and the City Media/Liaison positions as directly related or functioning separately. Ms. M. McLaughlin responded that the positions would involve two distinct individuals who would work in a co- ordinated effort. Mr. lan MacNaughton recommended that an existing staff member be trained in media liaison, but that the focus of this activity be Downtown promotion rather than general public relations. Councillor M. Wagner questioned whether Recommendation No.25 involving the waiving of fees associated with residential construction in the Downtown had been discussed with the development industry. Mr. lan MacNaughton replied that discussions had taken place and mixed messages were received. He advised that on the one hand some developers would not undertake high density residential development in the Downtown without receiving the land free-of-charge, while others, like the Cora Group, are willing to look at conversion options. He added that in his opinion the strong Regional economy and other attributes of the area place Kitchener in a good position to attract this type of development. Councillor B. Vrbanovic questioned why Recommendation No.31 involving the creation of a tree-lined pedestrian connection between City Hall and Victoria Park would entail design in 1995 but no implementation until 1998. Mr. lan MacNaughton replied that the Task Force was of the opinion that King Street development should be the first priority and any development off of King Street, a secondary consideration. Ms. Nancy Brawley appeared on behalf of the Kitchener Downtown Business Association (KDBA) and expressed the membership's approval of the Task Force recommendations. She characterized the Final Report as consolidating membership concerns and identifying action-oriented tasks which will result in improvements. She pointed out that changes in perception of the Downtown have already occurred and that the KDBA has received some interesting and positive enquiries. Mayor R. Christy again thanked the Task Force members on behalf of Council. Councillor Jake Smola questioned when the recommendations in the report would be revisited and the procedure which would be followed. Mayor R. Christy suggested that the Task Force Report be sent to Management Committee for comment after which there would be further consideration by Council. He offered the opinion that some actions could be undertaken in July and August, but that most of the recommendations would be addressed in September. Councillor Jake Smola expressed concerns over the process being followed and suggested that the Downtown Action Committee should be given an opportunity to comment consistent with the procedure followed for the Interim Task Force Report. Management Committee should also be given an opportunity to comment. Moved by Councillor J. Ziegler Seconded by Councillor G. Lorentz JULY 4, 1995 SPECIAL COUNCIL MINUTES - ~88- CITY OF KITCHENER That Council approve, in principle, the report of the Mayor's Task Force on the Downtown of this date, subject to further discussion and input from Management Committee and the Downtown Action Committee. Councillor K. Redman expressed her concern over deferring consideration of the three recommendations involving management structure. She advised that she would have no difficulty in endorsing the management structure as presented this date, and Mayor R. Christy suggested that this issue be dealt with at the regular Council meeting later this date. The previous motion by Councillor J. Ziegler, seconded by Councillor G. Lorentz was then voted on and Carried. On motion, the meeting adjourned at 6:10 p.m. MAYOR CLERK JULY 4, 1995 SPECIAL COUNCIL MINUTES - ~89- CITY OF KITCHENER REPORT OF THE MAYOR'S TASK FORCE ON THE DOWNTOWN SUPPORT BUSINESS 1 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) Hire a Retail Marketing Consultant to prepare an Action Plan for Business Development Create streamlined approvals and help for new and existing business Conduct a financial analysis of tax structure impediments to Downtown business development and investment Institute a 3 year exemption on municipal fees for applications, permits and certificates for business development in the Downtown Resolve the future of Market Parking garage and study the relocation of the Farmers' Market in relation to the Action Plan for Business Development Meet with senior governments, School Boards and agencies that receive public funds to encourage their location Downtown Link the Kitchener Downtown Business Association into the City computer network Target and recruit businesses that will support the adjacent residential market. Create a Small Business Incubator in Downtown office buildings Increase awareness of Downtown parking rates and locations Institute immediate free on-street parking and increase on-street spaces wherever possible Explore free parking in Downtown on Saturdays Develop an educational program to protect against abuse of free parking by downtown employees Explore innovative parking and transportation initiatives BRING PEOPLE DOWNTOWN 15) 16) 17) 18) '19) 2O) Hire a Downtown Events Coordinator. This will be a contract position after which staff will continue the work. Contribute to a Feasibility Study for the St. Jeromes Arts Centre Provide a Student Coffee House at 79 Joseph Street Bring Conestoga College into the Downtown Assign an existing staff person as media liaison for the Downtown Provide free meeting and convention facilities in City Hall for groups that will attract people Downtown INCREASE HOUSING 21) Identify sites for new and converted housing development 22) Conduct market, lifestyle and demographic research into housing needs and lifestyle preferences REPORT OF THE MAYOR'S TASK FORCE ON THE DOWNTOWN 23) Change zoning to permit live-work space in warehouse district and industrial conversions. An Artszone. JULY 4, 1995 SPECIAL COUNCIL MINUTES - ~90- CITY OF KITCHENER 24) Undertake a live-work pilot project with Kitchener Housing and artist community 25) Wave fees, dedications and levies associated with residential construction Downtown IMPROVE THE PHYSICAL ENVIRONMENT 26) Target Property Standards cleanup and upgrade vacant lots, concentrate on main entrances to the Downtown 27) Upgrade urban landscaping and street furniture 28) Improve Downtown decorations and Christmas lights 29) Extend Farmers' Market out onto Scott Street 30) Install recycling bins Downtown 31) Make Gaukel Street as a tree-lined, pedestrian friendly connection between City Hall and Victoria Park 32) Expand the Facade Improvement Program 33) Amend the Sign By-law to allow overhanging signs, set design guidelines 34) Establishment of a Kitchener Safer Community Committee 35) Assign a safety coordinator from City staff 36) Complete a Downtown and Abutting Neighbourhood Safety Audits 37) Liaisewith the Downtown Entertainment Industry 38) Increase Waterloo Regional Police presence in the Downtown 39) Improve laneway lighting, cleanup and safeproofing 40) Develop Downtown crime statistics in relation to the suburbs and other Cities 41) Use the Regional Downtown Traffic Study to return Duke and Charles Streets to a two-way system, remove the Cedar Street link and re-examine the Queen/Benton link 42) Re-evaluate other one-way roads in the Downtown 43) Develop an overall parking strategy for the Downtown addressing fees and user friendly rather than punitive enforcement 44) Redesign the parking in McKenzie King Square for all adjacent users MANAGEMENT STRUCTURE *45) Form a full time staff Downtown Action Team, working out of the Mayor's Office, consisting of a Downtown Planner, Events Coordinator and Business Developer along with staff support and resources for a two year period REPORT OF THE MAYOR'S TASK FORCE ON THE DOWNTOWN *46) Appoint a Downtown Director to head the Downtown Co-ordination Team and to call on staff resources from various Departments as required to implement the four main Action Plan themes of Business Development, Housing, Arts and Culture and Physical Improvements 47) Form a Strategic Administration Team consisting of the C.A.O., Treasurer, General Manager of JULY 4, 1995 SPECIAL COUNCIL MINUTES - ~91- CITY OF KITCHENER Planning and Development and Downtown Director to problem solve at the most senior level of the administration. * Clauses 19, 45 & 46 were amended at the regular Council meeting later this date.