HomeMy WebLinkAboutDSD-2022-112 - Downtown Financial Incentive Program Update Facade Grant Program
Development Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: April 4, 2022
SUBMITTED BY: Cory Bluhm, Executive Director, ext. 7065
PREPARED BY: Darren Becks, Manager of Downtown Development & Innovation,
ext. 7064
Victoria Filippelli, Downtown Development Assistant,
ext.7197
WARD(S) INVOLVED: 9 & 10
DATE OF REPORT: March 16, 2022
REPORT NO.: DSD-2022-112
SUBJECT: Downtown Financial Incentive Program Update: Façade Grant
Program
RECOMMENDATION:
That the Façade Grant Program be reinstated, with the City accepting applications
until December 31, 2027, in accordance with the Downtown Community Improvement
Plan;
That Council Policy FIN-GRA-535 be repealed and replaced with the revised Council
Policy FIN-GRA-535 as attached to report DSD-2022-112, to the satisfaction of the City
Solicitor and Clerk.
Further, that staff be directed to consider businesses that have made inquires and
registered interest in a façade grant, during the period of January 1, 2021 to the date
of approval of this report by Council, as eligible for the Façade Grant program in
accordance with report DSD-2022-112.
REPORT HIGHLIGHTS:
The purpose of this report is to recommend Council repeal and replace the expired
Council Policy FIN-GRA-535 in order to extend the Façade Grant Program while not
extending the Startup Landing Pad Grant.
The financial implications will align with the current budget allocations from the Capital
Budget.
Community engagement included the Downtown Action & Advisory Committee and the
Economic Development Advisory Committee.
This report supports A Vibrant Economy.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
BACKGROUND:
The Façade Grant Program commenced in 2009, as part of the Downtown Community
Improvement Plan (CIP). Under this program the City offers matching grants of up to
$10,000 per storefront to support exterior façade improvements including signage. Since
the program began, the City has provided aid for over 90 storefronts within the CIP
boundary. Since the onset of the COVID-19 pandemic, the need to support small businesses
and main street upgrades is essential to advancing economic recovery in Downtown
Kitchener.
REPORT:
It is standard practice that all financial incentive programs establish sunset clauses,
requiring City Council to repeal, amend, or extend the program, typically on a 5-year basis.
The current Façade Improvement Grant Program expired on December 31, 2020. Staff took
2021 to conduct research including a façade audit of downtown businesses. Staff
assessment indicates that over 40 storefronts could benefit from substantial façade and/or
signage enhancements. At the time of writing, 12 businesses have inquired about the
program since its expiration and have been placed on a waitlist review.
Many of these businesses have stated the need for financial support due to the COVID-19
pandemic and see an exterior façade renewal as a part of their post pandemic recovery.
Benefits of the Façade Improvement Grant Program
1. Overall Aesthetic & Design Improvements
All applications are vetted by staff using the King Street Façade Guidelines. This ensures
that every project is aesthetically pleasing, consistent with adjacent storefronts, and is
respectful of any architectural or historic features. When the overall design quality of an
area is enhanced (particularly in a downtown core), the net results include increased
community pride, an enhanced visitor experience, positive perceptions of safety, increased
interest for redevelopment/commercial investment, improved accessibility, and elevated
attractiveness for future residents and commercial tenants.
As part of this proposed program extension, staff are recommending additional language
to address exterior barrier free upgrades within the municipal right-of-way (such as ramps)
to assist with the accessibility needs of the community. Without this program, the City
would have little opportunity to encourage these upgrades and enhancements.
2. Retail Attraction & Retention
The COVID-19 pandemic has added additional stresses to the downtown community.
ng Street corridor confirms that the
open store front rate consistently hovers around 10-12%. The facade incentive program
can be an additional enticement for a business owner considering relocating to, or opening
a new business, in Downtown Kitchener. Businesses have noted that the rising material
costs can be a financial barrier to upgrading their façade or signage.
3. Support Streetscape Enhancements
Aligning with Make It Kitchener 2.0 vision to support economic recovery by ensuring
commercial, main street, and downtown areas remain vibrant, the Façade Grant Program
is an effective tool to encourage businesses to occupy vacant buildings along streetscapes
recently enhanced by the City, such as through the recent Queen Street Placemaking
improvements.
Acceptance of Applications
Since the passing of the Façade Grant Program submission deadline, numerous
businesses have inquired about accessing this program should it return. Should Council
approve this report, City staff would consider businesses who have expressed interest
since the program went dormant, provided any improvements have not been substantially
completed to date and the proposed improvements meet all of the criteria of the program.
In assessing applications, staff will continue to prioritize those applications which
demonstrate the highest need for funding support and deliver high quality improvements.
Additional Consideration #1 Upper Storey Renovation Program
As part of the Downtown Community Improvement Plan, the City has historically offered a
variety of programs. Until 2014, the City provided loans and grants to support the
conversion of vacant upper floor space to residential units. In 2014, this program went
dormant with applications no longer being received and funding no longer allocated to
support it. This program was initially introduced in response to a proliferation of upper
storey space that was unused and left to deteriorate by a building owner. Today, the
majority of upper storey space in the Downtown has either been upgraded or is currently
well utilized. Very little space remains vacant and/or in poor condition. Despite the
program being dormant, Council Policies associated with this program were never deleted
from Council Policy FIN-GRA-535. As staff are not recommending reopening this
program, it is prudent to remove these policies. In the future, should Council wish to
restart the program, these policies could be reintroduced at that time.
Additional Consideration #2 Startup Landing Pad Grant Program
The submission period for the Startup Landing Pad Grant Program has also passed and
staff are no longer accepting new applications. This program has supported the
conversion of vacant upper floor space to office space intended for new, emerging and
growing companies. The submission date for this program has since passed and staff are
no longer accepting new applications. Due to the uncertainty of the post COVID-19
pandemic office environment, the shift towards hybrid and virtual work, and the current
availability of traditional office space, there is limited rationale for the City to incentivize the
creation of new office space. As such, staff are not recommending an extension to this
program. Council could choose to restart the program at a future date subject to the
identification of a funding source.
Policy Implications
The proposed changes to Council Policy FIN-GRA-535 do not eliminate any programs
from the Downtown CIP or modify the CIP in any way. They simply remain inactive. As
such, Council can restart either of the above noted programs without requiring Provincial
approvals.
Conclusion
Small businesses are the foundation of our city - they create jobs, drive our economy and
breathe life into the streets and neighbourhoods. Small businesses have consistently
identified the need for supports as they adapt to the post-pandemic worlds. Continuing the
Façade Grant Program is one tool the City can utilize to support impacted businesses
while acting as an incentive in attracting new businesses to the Downtown.
STRATEGIC PLAN ALIGNMENT:
This report supports A Vibrant Economy. This report also supports the
Recovery Framework associated with Make it Kitchener 2.0.
FINANCIAL IMPLICATIONS:
No new funding is required beyond what is currently allocated in the 10-year Capital Budget
forecast. Applications are approved base on the availability of funding. In the 2022 Capital
Budget, approximately $45,000.00 has been allocated to downtown financial incentives. In
2023 there is approximately $55,000 allocated to downtown financial incentives.
The recommendation has no impact on the Operating Budget.
COMMUNITY ENGAGEMENT:
Downtown Action & Advisory Committee: The advisory committee was informed by staff
via a presentation on October 28, 2021 of the purpose of the CIP and the financial incentive
programs. The Committee was generally supportive of the proposed changes. On March
24, 2021 the Downtown Action & Advisory Committee will receive an update on the
proposed policy.
Economic Development Advisory Committee: The advisory committee was informed that
e Grant Program.
EDAC deferred comment to DAAC and requested an update once Council has determined
next steps.
PREVIOUS REPORTS/AUTHORITIES:
CAO-18-001 Downtown Financial Incentive Update: Façade Grant Program
Council Policy FIN-GRA-535 Combined Façade/ Interior Loan/ Upper Storey
Renovation Program
City of Kitchener, Downtown Kitchener, Community Improvement Plan
APPROVED BY: Justin Readman, General Manager
ATTACHMENTS:
Attachment A Proposed Council Policy FIN-GRA-535
Attachment B Current Policy FIN-GRA-535
POLICY Policy No: FIN-GRA-535
Approval Date: Click here to enter a
Policy Title: Downtown Façade
date.
Improvement Grant
Program
Reviewed Date: Click here to enter text.
Policy Type: COUNCIL
Next Review Date: Click here to enter
text.
Category: Finance
Reviewed Date: Click here to enter text.
Sub-Category: Grants, Rebates & Incentives
Last Amended: Click here to enter a
date.
Author: Manager of Downtown
Development & Innovation
Replaces: FIN-GRA-535
Dept/Div: Development Services \\
Repealed: Click here to enter a date.
Economic Development
Replaced by: Click here to enter text.
Division
Related Policies, Procedures and/or Guidelines:
Downtown Community Improvement Plan
Downtown Kitchener Community Improvement Area
Ontario Building and Fire Codes
City of Kitchener Zoning Bylaws
1. POLICY PURPOSE:
To promote economic development and to support businesses and property
owners with the financing of façade improvements in the Downtown Community
Improvement Area (CIP). The policies identified below are in addition to those
prescribed in the Downtown Community Improvement Plan.
2. DEFINITIONS:
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Policy No:
Policy Title:
CIP means the City of Kitchener
Downtown Community Improvement Plan made pursuant to section 28 of the
Planning Act, adopted by Council on January 20, 1997, and approved by the
Ministry of Municipal Affairs and Housing on April 2, 1997, as last amended on
March 31, 2014.
means the geographic area within which
financial incentives can be provided
Community Improvement Plan.
Council
means the Executive Director of Economic Development,
their successors in title, or their approved delegate.
Façade means the face of a building, especially the principal front that looks
onto a street or open space. For the purpose of the Façade Grant Program, it is
limited to those street fronting building faces which directly abut a public roadway
or publicly accessible space and excludes parking lots.
means the Façade Improvement Grant
Program as set out in section 9.4 of the CIP.
3. SCOPE:
POLICY APPLIES TO THE FOLLOWING:
All Employees
All Full-Time Employees All Union
Management C.U.P.E. 68 Civic
Non Union C.U.P.E. 68 Mechanics
Temporary C.U.P.E. 791
Student I.B.E.W. 636
Part-Time Employees K.P.F.F.A.
Specified Positions only: Development Other: Community Business Owners and
Services Employees, Financial Services Tenants
Employees
Council Local Boards & Advisory Committees
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Policy No:
Policy Title:
4. POLICY CONTENT:
4.1 General
Whereas section 9.4 of the Downtown Community Improvement Plan outlines the
Façade Improvement Grant Program, as approved by the Ministry of Municipal
Affairs and Housing, the following additional policies also apply. Those policies
listed herein are not subject to Ministry approval, and may be modified from time
to time through Council resolution:
4.2 Allocation of Funding
As enabled through policy 9.4.D.2 and 9.4.D.3 of the Downtown Community
Improvement Plan:
a.
item, with any unallocated funds transferred to the subsequent year.
b. For each year of available funding, preference for financial assistance
will be given to vacant buildings fronting King Street East and King
Street West.
4.3 Submission Requirements
As enabled thorough policy 9.4.F.1 of the Downtown Community Improvement
Plan:
A complete application shall consist of:
Application form filled out in its entirety;
2 written estimates from a qualified architect or contractor
2 copies of the conceptual elevation plan, identifying dimensions,
materials and colours of the entire street-oriented façade;
2 copies of the proposed sign plans, identifying dimensions,
materials and colours;
If applicable, tenant must provide written authorization from
registered property owner; and,
For the subject property, upon application, an owner must provide
details of funding from any other government sources.
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5
Policy No:
Policy Title:
4.4 Review of Applications
All applications will be reviewed by all applicable staff including representation from
Economic Development and Building. Other departments may be required to
comment depending on unique circumstances as they arise, such as Planning,
Heritage Planning, Legal and Finance.
The Executive Director of Economic Development will have final approval and
refusal of all grants and will be authorized to execute each agreement upon
approval.
4.5 Interpretations
a) Pursuant to section 9.4.B, free-standing ground mounted signs, not attached
to the façade, do not qualify as eligible works;
b) Pursuant to section 9.4.B, street fronting facades do not include facades which
are separated from the street line by a surface parking lot or vacant lot.
Facades which are separated from the street line by a City park or urban plaza
would be considered street fronting facades;
c) Pursuant to section 9.4.D.4, entranceways to office or residential buildings are
only eligible if the majority of the ground floor of the building has commercial
uses (either existing, planned or currently vacant). For the purpose of this
program, office is not considered a commercial use.
d) Pursuant to section 9.4.E.1, a building with multiple storefronts may include
those buildings where the width of an individual storefront is, in the opinion of
the Executive Director of Economic Development, more than double the width
of an average storefront, or where an individual storefront currently occupies
what had historically been two or more storefronts.
e) Pursuant to section 9.4.B, where an application proposes permanent exterior
improvements to enhance barrier free accessibility (such as ramping, etc.), said
improvements may be considered eligible even when said improvements would
occur within the municipal right-of-way.
4.6 Termination of Program
This program, unless otherwise extended by City of Kitchener Council, will expire
st
on December 31, 2027. Any application received after this date will not be
considered.
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Policy No:
Policy Title:
5. HISTORY OF POLICY CHANGES
Administrative Updates
2016-06-01 - Policy I-535 template re-formatted to new numbering system and
given number FIN-GRA-535.
2018-05-10 - Minor changes relating to corporate reorganization April 2018.
Formal Amendments
2009-01-12 - As per Council resolution, see report CAO-08-041
2009-04-27 - As per Council resolution, see report CAO-09-020
2010-04-19 - As per Council resolution, see report CAO-10-004
2014-02-10 - As per Council resolution, see report CAO-14-009
2018-03-19 - As per Council resolution, see report CAO-18-001.
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Attachment B
POLICY Policy No: FIN-GRA-535
Approval Date: November 7, 2005
Policy Title: COMBINED
FAÇADE/INTERIOR
Reviewed Date: July 2016
LOAN/UPPER STOREY
RENOVATION PROGRAM
Next Review Date: July 2021
Reviewed Date:
Policy Type: COUNCIL
Category: Finance
Last Amended: March 19, 2018
Sub-Category:Grants, Rebates& Incentives
Repealed:
Author: Manager of Downtown
Replacedby:
Community Development
Dept/Div:Development Services \\
Economic Development
Division
Related Policies, Procedures and/or Guidelines:
Downtown Community Improvement Plan
Façade Improvement Grant Program - Ministry of Municipal Affairs and Housing
Downtown Kitchener Community Improvement Project Area
Ontario Building and Fire Codes
City of Kitchener Zoning By-law 85-1
1.POLICY PURPOSE:
To promote Downtown economic sustainability through residential intensification,
developing upper storey underused space and the exterior façade or interior of
Downtown commercial/mixed use buildings.
2.DEFINITIONS:
To be included at next review.
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Policy No: FIN-GRA-535
Policy Title: COMBINED FAÇADE/INTERIOR LOAN - UPPER STOREY RENOVATION
PROGRAM
3.SCOPE:
POLICY APPLIES TO THE FOLLOWING:
All Employees
All Full-Time EmployeesAllUnion
ManagementC.U.P.E. 68 Civic
Non UnionC.U.P.E. 68 Mechanics
TemporaryC.U.P.E. 791
StudentI.B.E.W. 636
Part-Time EmployeesK.P.F.F.A.
Specified Positions only:Other:
CouncilLocal Boards & Advisory Committees
To be included at next review.
4.POLICY CONTENT:
4.1General
11.1.1The Upper Storey Renovation Program and the Façade/Interior The Upper Storey Renovation Program and the Façade/Interior The Upper Storey Renovation Program and the Façade/Interior
The Upper Storey Renovation Program and the Façade/Interior The Upper Storey Renovation Program and the Façade/Interior The Upper Storey Renovation Program and the Façade/Interior The
Upper Storey Renovation Program and the Façade/Interior
Policies shaded
Improvement Loan Program funding are combined.Improvement Loan Program funding are combined.
in yellow
are proposed
to be deleted
11.2.2An applicant can apply for either or both programs, as well as other An applicant can apply for either or both programs, as well as other An applicant can apply for either or both
programs, as well as other
available incentives, but the total value of all forgivable loavailable incentives, but the total value of all forgivable loavailable incentives, but the total value of all forgivable
loans/rebates ans/rebates
under the City’s Downtown Financial Incentives Program shall not exceed under the City’s Downtown Financial Incentives Program shall not exceed under the City’s Downtown Financial Incentives
Program shall not exceed
the cost of rehabilitating the lands and buildings. the cost of rehabilitating the lands and buildings.
11.3.3All applications for assistance are subject to availability of funding. All applications for assistance are subject to availability of funding.
11.4.4For each year of available funding, preference for financial assistance will For each year of available funding, preference for financial assistance will For each year of available
funding, preference for financial assistance will
be given to vacant buildings fronting King Street.be given to vacant buildings fronting King Street.
11.5.5All applications will be reviewed by a staff committee including All applications will be reviewed by a staff committee including All applications will be reviewed by a staff committee
including
representation from Downtown Development, Finance, Legal and Building. representation from Downtown Development, Finance, Legal and Building. representation from Downtown Development,
Finance, Legal and Building.
Other departments may be required to comment depending on unique Other departments may be required to comment depending on unique Other departments may be required to comment depending
on unique
circumstances as they arise.circumstances as they arise.
11.6.6The Executive Director of Economic Development will have final approval The Executive Director of Economic Development will have final approval The Executive Director of Economic
Development will have final approval
and refusal of all loans and will be authorized to execute each agreement and refusal of all loans and will be authorized to execute each agreement and refusal of all loans and will
be authorized to execute each agreement
upon approval.upon approval.
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Policy No: FIN-GRA-535
Policy Title: COMBINED FAÇADE/INTERIOR LOAN - UPPER STOREY RENOVATION
PROGRAM
1.7Financial assistance for the Façade/Interior Improvement Incentive Financial assistance for the Façade/Interior Improvement Incentive Financial assistance for the Façade/Interior
Improvement Incentive
Program approved and issued prior to June 1, 2005 are not covered under Program approved and issued prior to June 1, 2005 are not covered under Program approved and issued prior to June
1, 2005 are not covered under
this policy.this policy.
11.8.8The combined program will terminate on December 31, 2009 unless The combined program will terminate on December 31, 2009 unless The combined program will terminate on December
31, 2009 unless
Council approves an extension to the program.Council approves an extension to the program.
11.9.9For the subject property, an owner must provide, upon application, details For the subject property, an owner must provide, upon application, details For the subject property,
an owner must provide, upon application, details
of funding from any other government sources.of funding from any other government sources.
11.10.10In order to be considered, all applications must be fully completed and all In order to be considered, all applications must be fully completed and all In order to be considered,
all applications must be fully completed and all
required supporting documentation must be providedrequired supporting documentation must be provided. .
4.24.2Upper Storey Renovation ProgramUpper Storey Renovation Program
22.1.1EligibilityEligibility
22.1.1.1.1Any registered owner of a property within the “Downtown Kitchener Any registered owner of a property within the “Downtown Kitchener Any registered owner of a property within
the “Downtown Kitchener
Community Improvement Project Area” may apply for assistance Community Improvement Project Area” may apply for assistance Community Improvement Project Area” may apply for assistance
under the Program. under the Program.
22.1.2.1.2Eligible projects have vacant or underused space which is situated Eligible projects have vacant or underused space which is situated Eligible projects have vacant or underused
space which is situated
above commercial use space.above commercial use space.
22.1.3.1.3The proposed project’s total cost must be greater than $40,000 and The proposed project’s total cost must be greater than $40,000 and The proposed project’s total cost must
be greater than $40,000 and
create new self contained apartment style residential units with a create new self contained apartment style residential units with a create new self contained apartment style residential
units with a
minimum of 650 square feet in size per unit.minimum of 650 square feet in size per unit.
22.1.4.1.4The proposed project consists of building renovation which, upon The proposed project consists of building renovation which, upon The proposed project consists of building
renovation which, upon
successful completion, results in an increase in both the property’s successful completion, results in an increase in both the property’s successful completion, results in an increase
in both the property’s
assessment and taxes. assessment and taxes.
22.1.5.1.5Applicants must have credit in good standing, be current with Applicants must have credit in good standing, be current with Applicants must have credit in good standing, be
current with
municipal taxes and utility accounts and not be in conflict or municipal taxes and utility accounts and not be in conflict or municipal taxes and utility accounts and not be in conflict
or
involved in litigation with the City of Kitchener.involved in litigation with the City of Kitchener.
22.1.6.1.6All proposed improvements shall be made pursuant to an issued All proposed improvements shall be made pursuant to an issued All proposed improvements shall be made pursuant
to an issued
Building permit and constructed in accordance with the Ontario Building permit and constructed in accordance with the Ontario Building permit and constructed in accordance with the Ontario
Building and Fire Codes, all applicable Zoning requirements and Building and Fire Codes, all applicable Zoning requirements and Building and Fire Codes, all applicable Zoning requirements
and
comply with all outstanding Orders issued against the property and comply with all outstanding Orders issued against the property and comply with all outstanding Orders issued against
the property and
any other applicable requirements pursuant to the renting of the any other applicable requirements pursuant to the renting of the any other applicable requirements pursuant to the renting
of the
units in Ontario.units in Ontario.
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Policy No:FIN-GRA-535
Policy Title:COMBINED FAÇADE/INTERIOR LOAN -UPPER STOREY RENOVATION
PROGRAM
22.1.7.1.7Upgrading existing substandard residential units may be Upgrading existing substandard residential units may be Upgrading existing substandard residential units may be Upgrading
existing substandard residential units may be Upgrading existing substandard residential units may be Upgrading existing substandard residential units may be Upgrading existing substandard
residential units may be Upgrading existing substandard residential units may be Upgrading existing substandard residential units may be
considered where the propoconsidered where the propoconsidered where the proponent demonstrates a major upgrading nent demonstrates a major upgrading nent demonstrates a major upgrading
with high quality materials and design.with high quality materials and design.
22.1.8.1.8Application approval is required prior to commencement of work Application approval is required prior to commencement of work Application approval is required prior to commencement
of work
proposed in the application. This work does not include demolition, proposed in the application. This work does not include demolition, proposed in the application. This work does not
include demolition,
boarding or other temporary preparation boarding or other temporary preparation work.work.
22.1.9.1.9All applicants must provide documentation from their financial All applicants must provide documentation from their financial All applicants must provide documentation from
their financial
institution for substantiation of total debt service capacity.institution for substantiation of total debt service capacity.
2.22.2Financial AssistanceFinancial Assistance
22..22.1.1The City of Kitchener will provide financial assistance for the The City of Kitchener will provide financial assistance for the The City of Kitchener will provide financial
assistance for the The City of Kitchener will provide financial assistance for the The City of Kitchener will provide financial assistance for the The City of Kitchener will provide
financial assistance for the The City of Kitchener will provide financial assistance for the The City of Kitchener will provide financial assistance for the
building building building renovation/upgrade/conversion up to $100,000 per renovation/upgrade/conversion up to $100,000 per renovation/upgrade/conversion up to $100,000 per renovation/upgrade/conver
sion up to $100,000 per renovation/upgrade/conversion up to $100,000 per renovation/upgrade/conversion up to $100,000 per renovation/upgrade/conversion up to $100,000 per
municipal address based on 50% of project renovation cost. 50% of municipal address based on 50% of project renovation cost. 50% of municipal address based on 50% of project renovation
cost. 50% of
the financial assistance will be in the form of a grant given as a the financial assistance will be in the form of a grant given as a the financial assistance will be in the form of
a grant given as a
forgivable loan and 50% will be a loan.forgivable loan and 50% will be a loan.
2.22.2.2.2Over the life of the prograOver the life of the prograOver the life of the program, the maximum financial assistance for m, the maximum financial assistance for
any one owner is $100,000.any one owner is $100,000.
2.22.2.3.3Eligible costs will be cost of materials, equipment and contracted Eligible costs will be cost of materials, equipment and contracted Eligible costs will be cost of materials,
equipment and contracted
labor based on two quotations. Labor provided by the applicant will labor based on two quotations. Labor provided by the applicant will labor based on two quotations. Labor provided
by the applicant will
not be considered eligible expenses. Professionnot be considered eligible expenses. Professionnot be considered eligible expenses. Professional fees including al fees including al fees
including
architects, designers, accountants, engineers and lawyers which architects, designers, accountants, engineers and lawyers which architects, designers, accountants, engineers and lawyers
which
relate to the eligible improvements will be considered an eligible relate to the eligible improvements will be considered an eligible relate to the eligible improvements will be considered
an eligible
expense.expense.
2.22.2.4.4For loans approved in 2005 and 2006, the interest rate will be 0%. For loans approved in 2005 and 2006, the interest rate will be 0%. For loans approved in 2005 and 2006, the
interest rate will be 0%.
Interest rates for the rInterest rates for the remainder of the life of the program will be emainder of the life of the program will be emainder of the life of the program will be
Bank of Canada prime plus 0.5%, subject to staff review and Bank of Canada prime plus 0.5%, subject to staff review and Bank of Canada prime plus 0.5%, subject to staff review and
Council approval.Council approval.
2.22.2.5.5The loan will have a maximum 10 year repayment period.The loan will have a maximum 10 year repayment period.
2.22.2.6.6The loan and forgivable loan portion of the funding will be advanThe loan and forgivable loan portion of the funding will be advanThe loan and forgivable loan portion of the
funding will be advanced ced
in three stages: 10% on approval of the application, 80% at in three stages: 10% on approval of the application, 80% at in three stages: 10% on approval of the application, 80% at
substantial completion and the final 10% after the 45 day lien substantial completion and the final 10% after the 45 day lien substantial completion and the final 10% after the 45 day
lien
period has expired, pursuant to the construction lien act.period has expired, pursuant to the construction lien act.
2.22.2.7.7Copies of actual invoices and proof of payment must be submitteCopies of actual invoices and proof of payment must be submitteCopies of actual invoices and proof of payment
must be submittedd
by the applicant prior to final payment.by the applicant prior to final payment.
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Policy No: FIN-GRA-535
Policy Title: COMBINED FAÇADE/INTERIOR LOAN - UPPER STOREY RENOVATION
PROGRAM
2.22.2.8.8The forgivable loan will be amortized over the loan repayment The forgivable loan will be amortized over the loan repayment The forgivable loan will be amortized over the loan
repayment
period. period.
2.22.2.9.9Successful applicants will be required to enter into an Agreement Successful applicants will be required to enter into an Agreement Successful applicants will be required to
enter into an Agreement
with the City of Kitchener and loans will be secured through twith the City of Kitchener and loans will be secured through twith the City of Kitchener and loans will be secured through
thehe
registration of a lien on title to the subject property for the total registration of a lien on title to the subject property for the total registration of a lien on title to the subject
property for the total
amount of the loan. To ensure repayment of the loan, the City amount of the loan. To ensure repayment of the loan, the City amount of the loan. To ensure repayment of the loan, the City
reserves the right to evaluate the applicant’s equity and ability to reserves the right to evaluate the applicant’s equity and ability to reserves the right to evaluate the applicant’s
equity and ability to
repay the loan.repay the loan.
2.22.2.10.10IfIfthe property is to be sold prior to the repayment of the loan or the property is to be sold prior to the repayment of the loan or the property is to be sold prior to
the repayment of the loan or
prior to the forgivable loan being written off, the outstanding loan prior to the forgivable loan being written off, the outstanding loan prior to the forgivable loan being written off,
the outstanding loan
balance and/or the outstanding forgivable loan on the books will balance and/or the outstanding forgivable loan on the books will balance and/or the outstanding forgivable loan on the
books will
become due and payable in full upon closing.become due and payable in full upon closing.
2.22.2.11.11TheTheoutstanding loan balance can be paid off in full at any time outstanding loan balance can be paid off in full at any time outstanding loan balance can be paid off in
full at any time
during the term of the loan. The outstanding forgivable loan will during the term of the loan. The outstanding forgivable loan will during the term of the loan. The outstanding forgivable
loan will
continue to remain on the books and be amortized during the continue to remain on the books and be amortized during the continue to remain on the books and be amortized during the
remaining term of the loan.remaining term of the loan.
4.3 Façade Improvement Grant Program
Section 4.3 is
Whereas section 9.4 of the Downtown Community Improvement Plan outlines the
proposed to be
Façade Improvement Grant Program, as approved by the Ministry of Municipal
ammended as
Affairs and Housing, the following additional policies also apply. Those policies
shown in
Attachment A
listed herein are not subject to Ministry approval, and may be modified from time
to time through Council resolution:
4.3.1Allocation of Funding
As enabled through policy 9.4.D.2 and 9.4.D.3 of the Downtown
Community Improvement Plan:
a.Annual funding will be determined through the City’s capital budget, as
identified in, but not limited to, the ‘Downtown Financial Incentives’ line
item, with any unallocated funds transferred to the subsequent year.
b.A minimum of 70% of available annual funding will be allocated to
properties that front onto King Street.
c. A maximum of 30% of available annual funding will be allocated to
properties that do not front onto King Street.
4.3.2Termination of Program
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Policy No:FIN-GRA-535
Policy Title:COMBINED FAÇADE/INTERIOR LOAN -UPPER STOREY RENOVATION
PROGRAM
As enabled through policy 9.4.E.9 of the Downtown Community
Improvement Plan:
a)This program, unless otherwise extended by City of Kitchener Council,
st
will expire December 31, 2017 to December 31, 2020.
4.3.3Submission Requirements
As enabled thorough policy 9.4.F.1 of the Downtown Community
Improvement Plan:
A complete application shall consist of:
Application form filled out in its entirety;
2 written estimates from a qualified architect or contractor
2 copies of the conceptual elevation plan, identifying dimensions,
materials and colours of the entire street-oriented façade;
2 copies of the proposed sign plans, identifying dimensions,
materials and colours; and,
If applicable, tenant must provide written authorization from
registered property owner.
4.3.4Downtown Financial Incentives Review Team
The Downtown Financial Incentives Review team shall be comprised of
the following:
at least 1 staff member of the City’s Economic Development
Division
at least 1 staff member of the City’s Planning Division
at least 1 staff member of the City’s Building Division
at least 1 staff member of the City’s Financial Services Department
Legal, Heritage Planning, and Urban Design staff as necessary.
4.3.5Interpretations
a)Under section 9.4.B, free-standing ground mounted signs, not
attached to the façade, do not qualify as eligible works;
b)Under section 9.4.B, street fronting facades do not include facades
which are separated from the street line by a surface parking lot or
vacant lot. Facades which are separated from the street line by a
City park or urban plaza would be consideredstreet fronting
facades.
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Policy No:FIN-GRA-535
Policy Title:COMBINED FAÇADE/INTERIOR LOAN -UPPER STOREY RENOVATION
PROGRAM
c)Under section 9.4.D.4, entranceways to office or residential
buildings are only eligible if the majority of the ground floor of the
building has commercial uses (either existing, planned or currently
vacant). For the purposeof this program, office is not considered a
commercial use.
d)Program Assistance and Requirements, a building with multiple
storefrontsmay include those buildings where the width ofan
individual storefrontis, in the opinion of the Downtown Financial
Incentives Review Team, more than double the width of an average
storefront, or where an individual storefront currently occupies what
had historically been two or more storefronts.
5.HISTORY OF POLICY CHANGES
Administrative Updates
2016-06-01-Policy I-535 template re-formatted to new numbering system
and given number FIN-GRA-535.
2018-05-10-Minor changes relating to corporate reorganization April 2018.
Formal Amendments
2009-01-12-As per Council resolution, see report CAO-08-041
2009-04-27-As per Council resolution, see report CAO-09-020
2010-04-19-As per Council resolution, see report CAO-10-004
2014-02-10-As per Council resolution, see report CAO-14-009
2018-03-19-As per Council resolution, see report CAO-18-001.
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