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
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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.
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SPECIAL COUNCIL MINUTES
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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
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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
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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
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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.
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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
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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.