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HomeMy WebLinkAboutBusiness & Ind - 1996-03-21BIAC\1996-03-21 BUSINESS AND INDUSTRY ADVISORY COMMITTEE MINUTES THURSDAY, MARCH RI, 1996 PRESENT: Mike Hiscott (Chah'), Councillor Berry Vrbanovic, Dan Beach, Susan McConnell, Carl Zeht; Elliott Currie, John Bingeman, Denise Sh'ong, John Tibbits, Bob C~ickshanl~ Jeff Morris, Atso Saarkoppel, John Hoffman, Larry Blundell and l(im Cowan ALSO PRESENT: Valerie Gibaut~ Jane Jantzi, Tim McCabe, Dave ManseH and Tom McKay RECORDER: Sandy Curzon Ray Robinson, Associate Vice-l:q'esident~ IndustHaFCommercial Ontario Division of Royal LePage, after giving a brief overview of his company and personal background, elaborated on development charges as they relate to expansion of existing companies and new venture~ kV[r. Robinson gave an example using Toyota which paid $1.90/sq. ft~ in regional development charges for its $3 million dollar additio~ The City of Cambridge exempted Toyota from paying the City development charge~ kV[r. Robinson referred to development charges for existing businesses as "legalized extortion" Nh'. Robinson reviewed average prices of industrial land and the development charges apphed to develop the land as it relates to the GTA and 'Marketplace'. The 'Marketplace' consists of cities from Cambridge east to Toronto and west to Londo~ It is his opinion that once a developer has decided to build outside the GTA area, land prices including the development charges in this 'marketplace' need to be competitive. Nh'. Robinson then proceeded to intbrm Committee that when he has a prospect that wants to locate outside the GTA area, he emphasises that Canada's Technology Triangle cities of Kitchener, Waterloo, Guelph and Cambridge are within thh'ty minutes of any location within the hqangle. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES Dave ManseH asked how municipahties should pay for intYast~cture ff development charges are not paid for non-residential development Including the development charge in the cost of land was a highly favoured optiom Nh'. Robinson backed this up by giving an example of a Guelph industry which needed to expand, the City of Guelph would not include the development charges, thus the company moved to Guelph township where the development charges were waived. This loss of an existing business cost the City of Guelph $300,000. in taxes Municipalities need to develop ways to get the new businesses, no matter what the sac~4fice. Tim McCabe advised that the city cannot legally offer special deals with respect to development charges He did illustrate however that we do have the ability to exempt a specific area~ Lc. the downtown, from development charges F~xisting PI'ovincial legislation states that no increases can be implemented pending new legislation expected in the fall of 1996. It was suggested that the Inventory of Sites and Buildings could include intbrmation with respect to applicable development charges on properties Staff will consider this suggestion in future issues Minutes of February ~, 1996 Minutes of February ~, 1996 were approved and adopted 3. Joint WEDC/BIAC Meeting This meeting is scheduled for Thursday, April 18, 1996 at the Sports Complex, in Waterloo. The joint meeting was initially called to discuss a strategic plan for Canada's Technology Triangle. Guelph and Cambridge will also be asked to be represented at this joint meeting. Other items for discussion with the municipahties could include compa~qng land pricing and development charges Discussion then centred around land pricing and how difficult it is to obtain detailed inlbrmation such as which municipality has full services, which doesn't and how development charges are affected in the sale of indust~qal lan& Economic Development Division March 51, 1996. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES Valerie Gibaut stated that she had been asked to consider increasing the land prices in Huron Business Park to $95-100,000 per acre. She felt that the market has not quite risen to those prices yet and quoted the last sales at $78,000 and $85,000 per acre. Plqvate sector sales were being negotiated even lower between $65-70,000 per acre. Valerie pointed out that in today's market it was necessary to negotiate price, unlike the past when the City's price was fh~n~ The committee agreed that there did not appear to be enough demand for land to support a price increase. It was suggested however that the price could include development charge~ It was agreed that staff would consider alternative ways of marketing the land and prepare a report for the May meeting. Jane Jantzi discussed the One Stop approach which the city's Continuous Improvement Committee k prepa~qng. When in place the idea k to have, no matter where in City Hall you enquire, a full package on development in the City as it pertains to site plan approval to the actual building per, nit and all costs associated to be paid with one cheque. The City of Kitchener has less than 74 acres of indust~qal land left in inventory. Susan McConneH left the meeting 4. Economic Development Activities a) Staff discussed a potential land sale in caucus with Committee. Moved by Carl Zehr Seconded by Jeff Morris That the Business and Industry Advisory Committee support City Staff to sell Part 13 and Part 14, Reference Plan 58R-5840 having an area of about 3.36 acres on McBrine Drive at no less than $80,000 per acre for a total purchase price of $~68,800. Carried Economic Development Division March 51, 1996. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES 5. Other Business John Bingeman made reference to an article in Kitchener This Week which Councillor Berry Vrbanovic k explo~qng with respect to user fees for Automatic Bank Tellers (ATS~s) machine~ The City of Sarnia k charging the financial institutions $L000. per machine. There are costs associated with the maintenance and policing of these machines and for those not located on bank property, no business taxes are being pai& ~V[r. Bingeman dist~qbuted a report from the Ministry of Municipal Affahs and Housing dated January 18, 1996 entitled A~end~ents will clarify intent o£ Bil126 Meeting adjourned 1:05 pm Next Meeting: Thursday, April 18, 1996 11:00 am - 1:00 pm Waterloo Recreation Complex 100 Father David Bauer Drive, Lions Room Waterloo, ON N~J 4A8 Economic Development Division March 51, 1996.