HomeMy WebLinkAboutEcon Dev Adv Comm - 2004-05-26ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
MINUTES
May 26, 2004
11:00 am - 1:00 p.m.
Conestoga Room - City Hall
Attendance:
Staff:
Regrets:
Pete Benninger
Lawrence Bingeman
Edward Brooker
Peter Cook
Robert Denton
Mark Paleczny
Glen Woolner
Patricia Bacon
Rob Browning
Hans Gross
Carla Ladd
Janette MacDonald
Scott Baird
Howie Budd
Manfred Conrad
Shawky Fahel
Councillor John Smola
Councillor Christina Weylie
Mayor Carl Zehr
Rob Morgan
Frank Pizzuto
Edwina Weiss
Kathy Weiss
Jeff Willmer
Jane Jantzi
Henrik Noesgaard
Hans Pottkamper
1. Approval of Minutes of April 28, 2004
Minutes of April 28, 2004 were approved as amended.
Moved by: John Smola
Carried
2. EDAC Chair Meeting Update
Carla Ladd advised the Committee of the recent corporate restructuring to support the
$110 million dollar investment strategy. Downtown Development, Economic
Development and Project Administration will be combined under Strategic Services.
Due to personnel changes Carla Ladd will take the lead, with Kathy Weiss and Hans
Gross assisting. Chair Weylie requested a detailed staffing chart for the June agenda.
Staff will investigate merging EDAC and DAC in the future.
3. Grand River West Business Park Land Sales
Kathy Weiss provided an update on the status of Grand River West Business Lands.
She indicated that the six (6) 2-acre lots have been sold. The remaining B2 lot that is
3.8 acres will not be ready to market until summer 2005 due to remediation of soils
taking place. There are only 3 lots remaining in this business park.
4. Grand River West Land Prices/Commission Rates
Kathy Weiss explained that the purchase price of B2 land within the City of Kitchener,
will increase to $125,000 per acre. The commission rate payable to realtors selling
industrial land has changed from 5% to 3%. This is a reflection of the amount of work
that city staff contributes as the selling agent.
5. "Seed Money Concept"
This item has been deferred to the June meeting on order for Hans Pottkamper to
speak to it.
6. Proposed Development Charges Impact
At the April meeting Pauline Houston provided an overview of the rationale behind
Development Charge increases. The ED staff were then asked to provide their opinion
and research on competing jurisdictions and illustrate the impact on a "phantom
company" using key cost variables. Rob Morgan from the ED staff provided the
following information:
Specifically:
The "phantom company", a 30,000 sq.ft, manufacturing facility assuming a $1.80M
building cost constructed on 3 acres of land:
a) Guelph - lowest tax rate, highest DC's
b) Kitchener- utilities slightly higher, although hydro is lowest in Ontario
c) Brantford- highest tax rate, lowest DC's
Staff suggested that the city's rate increase will not have a significant impact, but the
regional increase may be an issue. There was some discussion about differentiating
the DC rate between industrial, retail and office which is an approach used by some
other cities to offset the cost of DC's for industrial. This was not pursued since it was
difficult to justify based on the fact that the costs to service industrial lands was higher
than retail or office and any rate decrease for industrial would have to be an outright
EDAC Minutes
May 26, 2004
subsidy by City Council. A discussion followed regarding the consideration for
transitional provisions to phase in the new non-residential DC rate. The difference
could be substantial and affect whether or not negotiations in progress would be
completed and succeed.
Recommendation:
That the City of Kitchener and the Region of Waterloo consider the option of phasing in
the non-residential Development Charge rate and that the rate remain frozen, utilizing
the 2003 rates for an additional 6 months to accommodate transactions already in
place, and that the new non-residential rates become effective January 1 st, 2005.
7. New Business
a. Tourism
Ed Brooker raised the issue of the city's direction and role for tourism. Carla Ladd
explained that Rosemary Pittfield has been contacted to arrange for a presentation at
the June meeting. Councillor Weylie suggested that this would provide the opportunity
to determine whether or not Tourism should be run out of Economic Development
rather than the Communications Department.
The meeting adjourned at 12:15 pm.
Bernadette Lowry, Recording Secretary
Economic Development Advisory Com m ittee
Next Meeting June 23, 2004
11:00 am to 1:00 pm
Conestoga Room, Kitchener City Hall
EDAC Minutes
May 26, 2004