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HomeMy WebLinkAboutDSD-2022-313 - Regional Official Plan Review - Proposed Growth Approach and Draft Policies Development Services Department www.kitchener.ca REPORT TO: Special Council DATE OF MEETING: July 18, 2022 SUBMITTED BY: Rosa Bustamante, Director of Planning, 519-741-2200 ext. 7319 PREPARED BY: Tim Donegani, Senior Planner, 519-741-2200 ext. 7067 WARD(S) INVOLVED: All DATE OF REPORT: July 13, 2022 REPORT NO.: DSD-2022-313 SUBJECT: Regional Official Plan Review - Proposed Growth Approach and Draft Policies RECOMMENDATION: That the City comments included within report #DSD-2023-313 be endorsed and any comments provided through Council discussion/resolution at the July 18, 2022 Council meeting be provided to the Region of Waterloo for their consideration in the of review of the Regional Official Plan. REPORT HIGHLIGHTS: The purpose of this report is to: o Official Plan (ROP) policies, and implications for Kitchener; o approach and policies; o provide City staff comments on the preferred growth approach and draft policies for council endorsement; and o provide City Council with an opportunity to provide additional comments to the Region. City staff does not have any significant concerns or objections with respect to the preferred growth approach and are satisfied that it has been prepared in accordance with the Provincially-prescribed Land Needs Assessment process. The preferred approach to growth mostly addresses City C prior input on the ROP, with one area (allocation of additional DGA) flagged for further Council discussion. This report supports the delivery of core services. EXECUTIVE SUMMARY The Region of Waterloo is updating its Official Plan to plan for growth to the year 2051. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. The Region is planning to make a final decision on this matter in August of 2022. This report highlights the implications of the proposed growth approach and policies for Kitchener and affords City Council an opportunity to provide comments to the Region. The Regionally recommended growth approach follows the Provincially prescribed Land Needs Assessment methodology and would see Kitchener grow by 140,100 people (46% l growth would occur within the built-up area of the City and 40% in greenfield communities. Intensification would be focused towards Downtown Kitchener, Major Transit Station Areas along the ION corridor, along a newly established Ottawa Street Corridor and at Local Centres and Corridors. Regional direction to plan for a more balanced mix of low, medium and high- s growing and changing population. Meaningful changes to the ROP are proposed to address housing affordability and climate change. In June, City Council advised the Region of the following priorities for their consideration through the ROP review: 1. Address a current housing supply deficit; 2a. Take an intensification first approach to growth; 2b. See Kitchener receive its fair share of growth within the Greenfield Area; 3. Ensure that any Greenfield boundary expansions are within the Countryside Line; 4. Allow for a range and mix of housing including missing middle housing; 5. Research and advance best practices in Affordable Housing; and 6. Provide Complete, Sustainable, Walkable and Transit supportive Communities Staff does not have any significant concerns or objections to the growth approach 2b has been flagged for further discussion. The preferred approach plans for 150 ha of new Designated Greenfield Area for community area, primarily within the Townships; and 456 ha of Employment Area. All new Designated Greenfield Area is within the Countryside Line. No new Designated Greenfield Area has been assigned to Kitchener. While staff does not object to this direction, information is provided to Council should they wish to advocate for Kitchener to be allocated a portion of the proposed 150 ha Community Area expansion. The proposed growth approach includes the allocation of new DGA community area to Breslau. Staff has concerns with the initial proposal to service significant growth in Breslau and will continue to work with the Region and Woolwich Township on appropriate servicing solutions. BACKGROUND: In 2018, the Region of Waterloo commenced a review of their Official Plan (ROPR) to, Greater Golden Horseshoe (AP2G), 2020. In March 2021, Council considered report DSD- 2021-05 and endorsed staff comments on Employment Areas, Major Transit Station Area Boundaries, new Regional Corridors, Climate Change and Affordable Housing. In August 2021, City Council considered reports DSD-2021-127 and DSD-2021-160 that explored growth scenarios. On May 30, June 8 and June 13, 2022, City Council considered reports DSD-2022-260 and DSD-2022-291that highlighted the key implications of three growth options for Kitchener and provided Council an opportunity to comment on the draft Land Needs Assessment (LNA), which is an exercise undertaken by the Region that follows a Provincially prescribed methodology, to determine how much additional land a municipality may require to accommodate future growth. On June 13, City Council resolved: WHEREAS Kitchener acknowledges we are in a housing affordability crisis; WHEREAS Canada has the lowest housing supply per capita among the G7; WHEREAS Ontario has the lowest housing supply per capita among all provinces, WHEREAS, not accounting for any future growth, Ontario requires approximately 650,000 more homes to meet the Canadian average per capita, and approximately 1.2 million more homes to meet the average among the G7; housing affordability i 1. THEREFORE BE IT RESOLVED that Kitchener urges the Region to research the broader supply issue and explore options outside of those proposed; notably to increase absolute growth targets to adjust for the current housing supply debt/deficits, to date; 2. THEREFORE BE IT RESOLVED that the Region be requested to work with City staff to ensure Kitchener's fair share of growth with respect to infill and intensification but also in determining where greenfield expansion is appropriate via efficiencies of existing or planned near-term servicing. City of Kitchener Council supports consideration of higher intensification targets and that the target be set at a minimum of at least 60%; 3. THEREFORE BE IT RESOLVED that any required greenfield growth be confined to within the country-side line / on lands not designated Protected Countryside; 4. THEREFORE BE IT RESOLVED that the City of Kitchener urges the Region of Waterloo to allow for zoning of a mix of housing types throughout all growth areas 5. THEREFORE BE IT RESOLVED that the City of Kitchener urges the Region of Waterloo to continue researching the broader issues affecting affordable housing supply and implement best practice policies to advance our shared goal of making housing more affordable for all residents; and, 6. THEREFORE BE IT FINALLY RESOLVED that the City of Kitchener urges the Region of Waterloo to provide for complete, sustainable and walkable communities, supported by LRT and other forms of public transit and be consistent with our climate change commitments. On June 29 2022, Regional Council considered Regional staff reports PDL-CPL-22-20 and PDL-22-21 (included as Attachment A and B) regarding the preferred growth approach and draft ROP policies respectively. Regional Council endorsed in-principal the staff recommended growth approach and directed Regional staff to undertake statutory public consultation regarding draft policies. REPORT: The recommended approach to growth builds on Option 2 from the April 2022 Draft Land PDL-CPL-21-49 (see Attachment A). Compared to Option 2, the recommended growth approach has a slightly higher intensification rate, lower designated greenfield area density targets, and a significantly reduced amount of land recommended for community area expansions. Expansions for employment area have also been limited by using a higher intensification target. The Regionally-endorsed growth approach: Would see Kitchener grow by 140,100 people (1.4% annually) to 409,200 people by 2051. This would represent 46% of Regional population growth and 44% of Regionally forecasted population of 923,000; Would see Kitchener grow by 59,500 jobs (35% growth) to 170,500 by 2051; Seeks to a of creating an equitable, thriving and sustainable Waterloo Region, while meeting Provincial requirements by providing an appropriate range and mix of housing that considers market demand; Takes an intensification first approach to support transit, infrastructure investments and housing opportunities including high density and missing middle housing; Sets a Region-wide minimum residential intensification target of 61% and 60% for the City of Kitchener; includes 150 hectares of community area expansions, primarily within the Townships, to provide opportunities for them to grow sustainably into complete 15-minute communities; Sets a Region-wide Designated Greenfield Area minimum density target of 59 residents and jobs per hectare (r+j/ha) and 65 r+j/ha for the City of Kitchener; Includes employment land Designated Greenfield Area expansions of 456 ha and a 25% employment lands intensification rate. New information since the April growth scenarios include: Technical refinements to the Land Needs Assessment and the land supply to address stakeholders comments; Greenhouse gas evaluation; Infrastructure and financial analysis (Regional infrastructure only); and An evaluation of growth options per the criteria outlined in A Place to Grow (AP2G). This report evaluates the preferred growth approach and draft ROP policies against City ry where appropriate. Recommended Approach and City Council Resolution Staff does not have any significant concerns or objections to the preferred growth approach Assessment (LNA) methodology to appropriately plan for growth and provides a balanced approach to addressing shared City and Regional objectives regarding housing choice, missing middle housing, complete 15-minute communities, climate change, protection of farmland, equity, economic vitality and growth management. 1 Current Housing Supply Deficit PARTIALLY ADDRESSED current deficit in the number of housing units in the Region. The Provincially prescribed Land Needs Assessment methodology is not designed to directly address any current deficit of housing units. Further, the Regional Official Plan Review process is not a solution to short- term supply concerns nor short-term housing fluctuations as the Land Needs Assessment methodology examines land supply over a 30-year horizon. Nevertheless, the ROPR identifies that there is sufficient land supply through intensification and greenfield development to accommodate 30 years of housing supply rather than the 20-year planning horizon of the current ROP. If the market were to move more quickly than expected and absorb land supply to meet a current unit deficit (for example, if the market provided 10 years of supply within one year), there would still be 20 years of land supply available. If this were to occur, the City and Region would have ample time to adjust planning approaches before a developable lands supply shortage could put acute pressure on opportunities to grow and housing prices. The LNA has identified a land supply of 9,472 unit registered plans of subdivision and 14,308 units on DGA lands remaining to be draft approved. This supply is sufficient to accommodate the 30-year DGA growth forecast for Kitchener across low, medium and high-density housing types. Based on building permit data, Kitchener has averaged 433 low density units, 181 medium density units and 195 high density units annually within the DGA over the last 10 years. If these historic trends were to continue (not as is forecast in the LNA), Kitchener would have 12 years of supply within vacant draft approved or registered plans, and 18 years of supply within lands that have yet to receive subdivision approvals for a total of 29 years worth of supply. 2a Intensification First ADDRESSED intensification first. Kitchener is forecast to add 32,605 units within the built-up area by 2051. This represents 44% of all Regional intensification. The recommended approach includes a minimum intensification target of 60% for Kitchener, and 61% Region-wide. This addresses City Council request for a target of at least 60%. Staff feel this approach is reasonable considering recent trends and the capacity for growth within intensification areas and within the built-up area generally. The LNA identifies a capacity of built up land supply considering opportunities within Urban Growth Centre (Downtown Kitchener), MTSAs, Regional Corridors and local intensification opportunities. Additional policies direct the majority of this intensification to Strategic Growth Areas. Policies further directs the City to identify local centres and corridors to further shape growth and to advance 15-minute neighbourhoods and transit supportive development as further described in under section 6 of this report. 2b Kitchener receives its fair share of new Designated Greenfield Area growth PARTIALLY ADDRESSED / FOR DISCUSSION The preferred growth approach may address this City Council interest. 95% of the Region-wide vacant Community Area DGA has already been identified through previous ROPs. 150 hectares of new Community Area is proposed to be added, primarily within the Townships. No new DGA is assigned to Kitchener. The Region has indicated that the preferred location for new DGA lands is the townships to provide opportunities for township communities to grow sustainably into complete 15-minute communities. The cities are already well positioned to address this objective through intensification and the existing DGA. Kitchener would need to plan to achieve a DGA density target of 65 residents and jobs per hectare (r+j/ha). (higher than the previously proposed option 2 but lower than option 3) in support of a regionwide DGA density target of 59 r+j/ha The preferred approach includes Kitchener existing supply of 1,150 hectares of vacant DGA lands. This represents 40% of the Regional vacant DGA Community Area total - more than any other municipality, as shown in Figure 1. Kitchener is forecasted to accommodate 23,799 new units within the DGA, 46% of the Regional total. Figure 1 Vacant Community Area DGA (ha) ЊЍЉЉ ЊЋЉЉ ЊЉЉЉ БЉЉ ЏЉЉ ЍЉЉ ЋЉЉ Љ 9ǣźƭƷźƓŭ ΛЋЉЊВΜtƩƚƦƚƭĻķ Kitchener to accommodate the 30-year growth forecast that was conducted according to the Provincially prescribed methodology. Regional staff have worked collaboratively with Kitchener staff to ensure that the growth needs and vision of the City of Kitchener are reflected in the Regional Official Plan Amendment. The Region will continue to work on language in the Amendment that will ensure the City has a key role in identifying future priority areas of growth that can be considered through subsequent ROP Reviews. City staff notes that future growth in SKPA will require the affected landowners to work together on a While Kitchener staff concur with the LNA findings that there is sufficient DGA capacity within Kitchener and Regional staff have provided assurances about the future consideration of SKPA lands through future ROP reviews, should City Council wish to advocate for a proportionate share of the 150 ha of additional required community area proposed to be Kitchener is home to 44% of Regional population. If 44% of the proposed new community area DGA were allocated to Kitchener, it would result in approximately 66 ha of land within SKPA being included as community area. 66 ha of land represents less than half of the SKPA land area within the Countryside Line and as such, not all land within SKPA would be included as DGA community area based on the above approach. The land holdings within SKPA, including lands inside and outside the Countryside Line, for the four primary land owners are: o Activa 56 ha o Schlegel 58 ha o Branthaven 61 ha, and o Grambian 19 ha. Staff recommend that the following conditions or assurances be provided through this or future ROP reviews, and any related projects/processes, to ensure that City interests and strategic priorities regarding the SKPA lands are advanced: a. The ROP should include policies that enable and encourage area municipal policies that manage the staging and timing of growth. Local policies and approaches that maintain flexibility as to when to undertake the planning and development of lands within SKPA is crucial. The Region and City should plan for orderly development; complete communities; support achievement of intensification targets; and prevent premature extension of infrastructure, City services and planning resources while maintaining an adequate supply of land to address short and medium-term housing demand. b. The ROP should include policies to provide for the Region and City to ensure that sufficient measures are taken to minimize environmental and financial risk to the City (and existing residents/ratepayers) of any required innovative/extraordinary infrastructure and water management approaches. This could include area-rated development charges, area-specific stormwater utility fees, and long-term developer securities, monitoring and infrastructure maintenance obligations, and coordinated infrastructure implementation amongst different land owners. c. The ROP should ensure that Region-wide standards for climate-supportive planning are met or exceeded in SKPA. This may include requirements for green development standards or the like. 3. New greenfield growth must be within the Countryside Line ADDRESSED The recommended growth approach fully addresses this City Council interest. New DGA for Community Area and Employment Area are entirely within the Countryside Line. The Countryside Line has been established to include most of the lands within the Southwest Kitchener Policy Area as shown in Figure 2. While these lands are not proposed to be identified as DGA through this ROP, their designation within the Countryside Line (and not as Protected Countryside) provides an opportunity for these lands to be considered through future ROP reviews should additional community area lands be needed. Figure 2 Proposed Countryside Line and Protected Countryside within Southwest Kitchener Policy Area 4. Allow for a mix of housing types including missing middle housing ADDRESSED The preferred growth scenario and draft ROP policies address Kitchener Council interest. The preferred growth approach forecasts 54,615 new units within Kitchener by 2051, mostly in medium and high-density forms that represent missing middle, mid-rise and high- from a majority of single and semi-detached houses to a more balanced housing stock to meet the needs of the forecasted households and help address affordability pressures. Through draft ROP policies, area municipalities are proposed to be required to permit neighbourhood missing middle housing, including multiple dwellings between two and four storeys across all residential neighbourhoods with flexibility provided regarding standards and regulations. Mid-rise housing is proposed to be permitted in Regional corridors as well as local centres and corridors. Figure 3 Kitchener Forecasted Housing Mix Low - Single-detached and semi-detached Medium Townhouses and duplexes High - Stacked townhouses and apartments City Comments The secondary unit (additional dwelling unit) forecast for Kitchener of 45 units per last five years. Raising this would better align with recent trends and missing middle objectives and policies. Staff are pleased to see policies that encourage neighbourhood missing middle housing. Neighbourhood missing middle should be defined to include multiplexes and low-rise apartments. Mid-rise housing should be encouraged where appropriate without policies prescribing the minimum and or maximum heights within any particular area. The City will continue to work with the Region to address policy and non-policy barriers to implement more missing middle and mid-rise housing. 5. Research and advance best practices in Affordable Housing PARTIALLY ADDRESSED The proposed ROP policies address City interest in supporting affordable housing by: Setting a target for 30% of new housing to be affordable to low and moderate income households; Protecting existing rental through strengthened condominium conversion policies and encouraging area municipalities to institute rental demolition control; Establishing the protected MTSAs required to establish Inclusionary Zoning; and Supporting a Regional role for maintaining the ongoing affordability of affordable units through the planning approvals process. City comments The City will continue to work with the Region to: provide more granular affordability targets to address affordability across the spectrum of low and moderate households; advance inclusionary zoning policy, monitoring, enforcement and administration of inclusionary zoning; and work with the Region to secure the ongoing affordability of affordable units that are secured through development approvals processes. 6. Provide Complete, Sustainable, Walkable and Transit supportive Communities - ADDRESSED The recommended growth approach and draft policies mostly address this City Council interest. Climate and Sustainability The Greenhouse Gas Impact Analysis evaluated the greenhouse gas impact on additional population and employment under the three growth scenarios and found that the Option 3 with no community area expansion reduced GHG emissions by 30% compared to Option 3 can be more easily adapted to a no/low carbon form. It recommended net zero buildings, low embodied carbon construction, active transportation, transit, and electric vehicles as The proposed ROP policies include climate supportive polices such as: Reducing energy needs through 15-minute neighbourhoods; Prioritising active mobility and transit; Direction of green development standards to be established by area municipalities; and The requirement for neighbourhood energy plans for large-scale development. City Comments The City appreciates the inclusion of tangible and actionable policies that enable the Region and area municipalities to meet their climate commitments (such as Region- wide green development standards). Further work is required to support hat by 2050: o most trips are taken one foot, bicycle and supported by frequent transit o all vehicle trips are zero emission o business and homes do not use fossil fuel for heating or cooling The City looks forward to working with the Region to ensure that all planning policies are sufficient to ambition and scale to ensure our land use and development patterns enable meeting our shared climate commitments. Regional Structure The proposed Regional structure is a key ROP tool in providing complete and sustainable communities by focusing growth towards higher order transit and new or existing complete communities where most daily needs can be met within a 15 minute walk. Figure 4 Proposed Regional Structure existing Urban Growth Centre in Downtown Kitchener, Regional Corridors along Phase 1 and Phase 2 ION as well as a new Regional corridor along Ottawa Street. The Regional structure maintains the location of the built boundary and Urban Area as in the current ROP. Major Transit Station Areas Areas (MTSAs) along Phase 1 and Phase 2 ION. A minimum target of 160 r+j/ha has been identified for all but 3 stations. Block Line has a minimum intensification target of 80 r+j/ha. The delineation and targets generally align with the MTSA boundaries and targets endorsed by City Council in March 2021 through report DSD-2021-5. Regional Intensification Corridors The proposed ROP would add an Ottawa Street Intensification Corridor to the current ION Phase 1 and 2 Regional corridors. The Ottawa Street Intensification Corridor could be the location of a third phase of ION that connects east/west transportation needs and intensification opportunities along Ottawa Street to Phase 1 ION, the Airport and Employment Areas east of the Grand River. This corridor would represent the third tier of a hierarchy of Strategic Growth Areas for intensification. The City and Region will need to delineate corridor boundaries and set a density target and implementing policy and regulation in the coming years. The proposed ROP polices provide for the full range and mix of housing types in Regional Intensification Corridors as well as mid-rise missing middle housing up to 12 storeys. Local Centres and Intensification Corridors Area municipalities are required to identify local centres and corridors for intensification. These are required to permit mid-ies nodes and corridors across the city that permit a range and mix of commercial and residential uses in a variety of building typologies. Employment Areas Employment Areas are proposed to be established in the ROP for the first time. Regionally identified Employment Areas can only be converted to non-employment uses through a comprehensive ROP review. The proposed Regional employment area boundaries generally align with those endorsed by City Council in March 2021 through report DSD- 2021-05. Municipalities are encouraged to plan for local employment areas in addition to entifies employment areas including those proposed to be identified as Regional Employment Areas through the ROP. City Comments: Staff support the proposed Regional Structure; Staff support the proposed MTSA delineation and minimum density targets; The ROP policies should include additional clarity that UGC and MTSA density targets are minimums, and that good planning likely warrants planning for higher targets in some cases; The ROP policies should clarify that not all lands within MTSA are suitable for significant intensification; The City supports the identification of the Regional Ottawa Street Intensification corridor; It will be challenging to delineate Ottawa Street Corridor boundaries, establish minimum density targets and implement policy and zoning as required by the draft policies until such time as conceptual stop locations have been identified. The City would be pleased to participate in the transit stop identification process; Highland Road west of Fisher-Hallman Road is likely not a good candidate for intensification and should not be specifically identified in the ROP as a local corridor; and The preamble and policy should distinguish Regional Employment Areas from Local Employment Areas, and all employment lands and other areas planned for jobs. Wastewater Considerations of Growth in Woolwich Wastewater flows from Breslau in Woolwich Township are currently transmitted to the Victoria Street Pumping Station. Woolwich Township pays Kitchener a proportionate share of the cost of constructing, operating and maintaining the Victoria Street Pumping Station. 50% of the pumping station capacity is allocated to the Township. The Township has recently requested access to 75% of the capacity to accommodate future growth. Woolwich is likely to be serviced by the Elmira and St. Jacobs wastewater networks, with flows from Breslau serviced through the Kit resulting from potential growth in Breslau would be diverted to the Kitchener WWTP. The growth diverted to the Kitchener WWTP is unknown at this time. Depending on the growth option, if 2,000 11,000 people could be diverted to Kitchener, there would be sufficient Employment Growth in the East Side Lands is proposed to be serviced by a new trunk sewer leading directly to Preston and/or Kitchener Wastewater Treatment Plant that would be cost shared by Cambridge and Woolwich. The Region has not provided an evaluation of wastewater transmission capacity or issues. City comments The City sees diminishing value in maintaining the operational and risk burdens of the Victoria Street Pumping Station that would primarily service development in Breslau. Increasing utilisation of the Victoria Street pumping station to accommodate growth in Breslau will accelerate the need for downstream improvements to Ki sanitary system before they would otherwise be required to accommodate financial implications. and intensification opportunities The City supports the long-planned Regional sanitary sewer as the long-term solution Lands The City of Kitchener would need to continue discussions with Woolwich and the Region regarding a sanitary solution for Breslau if these lands are added through the ROP review Next Steps for Regional Official Plan Review July 19 Open House to discuss proposed ROP amendment July 27 Statutory Public Meeting of Regional Council to consider ROP Amendment August 11 Regional Standing Committee to consider adopting ROP Amendment August 18 Regional Council to consider adopting ROP Amendment Late 2022 Provincial Decision on ROP amendment Mid 2023 Update to other ROP policies (e.g. agriculture, natural and cultural heritage, infrastructure) STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget The recommendation has no impact on the Capital Budget. Operating Budget The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: DSD-2021-5 Regional Official Plan Review DSD-2021-127Regional Official Plan Review: Growth Scenarios DSD-2021-160 Supplemental Report - Regional Official Plan Review: Growth Scenarios DSD-2022-260 Regional Official Plan Review Draft Land Needs Assessment DSD-2022-291 Addendum Report to DSD-2022-260: Regional Official Plan Review Draft Land Needs Assessment REVIEWED BY: Natalie Goss, Manager, Policy and Research APPROVED BY: Justin Readman, General Manager Development Services ATTACHMENTS: Attachment A Region Report PDL-CPL-22-20 - Regional Official Plan Review Recommended Growth Approach from the Land Needs Assessment Process Attachment B - Region Report PDL-CPL-22-21 - Draft Regional Official Plan Amendment (Growth-Related Component of ROP Review) Report: PDL-CPL-22-20 Region of Waterloo Planning, Development and Legislative Services Community Planning To:Chair Galloway and Members of the Planning and Works Committee Meeting Date: June 29, 2022 Report Title:Regional Official Plan Review–Recommended Growth Approach from the Land Needs Assessment Process 1.Recommendation: That the Regional Municipality of Waterloo take the following actions with respect to the recommended approach to growth as described in Report PDL-CPL-22-20, dated June 29, 2022: a) Endorse, in principle, the recommended growth approach as outlined in Report PDL- CPL-22-20 and appendices; and b) Direct Regional staff to apply the recommended growth approach as key inputs in finalizing the draft Regional Official Plan amendment (Report PDL-CPL-22-21). 2. Purpose / Issue: The purpose of this report is to recommend a growth approach that best positions Waterloo Region to achieve its vision for an equitable, thriving, and sustainable Waterloo Region, through strategic and targeted growth that supports critical community building and climate change objectives, while also meeting Provincial obligations to plan to accommodate forecasted population and jobs to a 2051 planning horizon. 3. Strategic Plan: The recommended growth to approach will shape how and where the community will grow to the year 2051. It therefore addresses all Strategic Focus Areas, particularly: Thriving Economy; Sustainable Transportation; Environment and Climate Action; and Health, Safe and Inclusive Communities. It also relates to Action 3.5.1, “Promote efficient urban land use through greenfield and intensification policies while conserving natural heritage and agricultural areas.” 4. Key Considerations: a) Waterloo Region is a consistent leader of innovation in land use planning, environmental protection, and community building. The Regional Official Plan (ROP) establishes the Page 1 of 27 June 29, 2022Report: PDL-CPL-22-20 framework for guiding Waterloo Region’s long-term growth and development in keeping with Council’s vision for an inclusive, thriving and sustainable community. Through the Regional Official Plan Review, the Region has an opportunity to build on this leadership by accommodating its future growth to 2051 in a manner that achieves Council’s vision. b) Waterloo Region is required to plan for a forecasted population and employment growth of 306,000 people (50%) and 168,000 jobs (56%) by the year 2051. Based on Provincial requirements through the Growth Plan, a review of the ROP is required. One component of this review is to complete a LNA using a standardized Provincial methodology. c) In November 2021, Regional Council directed staff to complete a LNA and engagewith area municipalities and the public prior to making a recommendation on an approach to growth. The draft LNA and associated growth options were presented to Regional Council on April 12, 2022 (PDL-CPL-22-11) and an engagement and evaluation period has followed, using the growth options as a way to illustrate a range of possibilities for how to accommodate growth. A summary of the feedback is provided in high-level in this briefing note, and a more detailed summary is provided in Appendix B. d) A recommended approach to growth was identified based on a series of technical refinements to the land inventory, technical evaluations that focused on growth management, infrastructure, climate change, and other key considerations, in addition to critical and substantive feedback from all area municipalities, First Nations, and the public. e) The ultimate result is a recommended approach to growth that puts into numerical terms a way to best meet the community vision, addresses corporate strategic priorities, responds to public and area municipal feedback and support of key principles of growth, while also adhering to the prescribed steps of the LNA methodology and the Province’s directive to look to a 2051 planning horizon. f) The recommended approach to growth for the community area, when compared to Option 2, has a slightly higher intensification rate, lower designated greenfield area density targets, and a significantly reduced amount of land recommended for community area expansions in addition to an intentional focus on creating 15-minute neighbourhoods as a transformational outcome. Expansions for employment area have also been limited by using a higher intensification target. The recommended approach to growth addresses feedback from the public and area municipalities, as further described in Table 2 below. The recommended growth approach includes four key features that best align with community vision, corporate strategic priorities, technical considerations, and all feedback. The four key features are: 1. It best advances the Region’s and the community’s strategic priorities while meeting provincial requirements. The recommended approach provides for efficient and affordable infrastructure, maintains the Countryside Line, protects Page 2 of 27 June 29, 2022Report: PDL-CPL-22-20 farmland and natural areas, and supports transformational climate action by enabling the clean energy transition and preparing the community to thrive in a global low- carbon future. It provides an appropriate and achievable range and mix of housing that considers market demand resulting in an incremental shift to a higher proportion of medium and higher densities, while also maintaining a 45% inventory of housing in a form dominated by low-density, ground-related housing to 2051. 2. It reflects an intensification-first approach to optimize intensification opportunities to support a more compact built form within the existing Built-Up Area (BUA). Focusing growth within the BUA (City and Township) supports the Region’s strategic transit and infrastructure investments, provides access to services and achieves a broader diversity of housing options including higher density and maximizing missing middle housing. This will be critical for retrofitting existing neighbourhoods into 15-minute neighbourhoods that are complete, energy efficient communities. Regarding intensification within the Townships, the recommended approach to growth aims to implement appropriate types, forms and scale of intensification for smaller urban areas consistent with the creation of 15-minute neighbourhoods and the long-term needs of the residents of the community, including an aging population. 3.It targets a select number of strategically located Community Area expansions that are needed to enable the retrofit of existing urban areas in the Townships into affordable and energy-efficient 15-minute neighbourhoods with a full range of housing types. This is in order to address the unique challenges they will face in transitioning their existing urban areas into energy-efficient 15-minute neighbourhoods, where people can meet their daily needs through a short trip by walking, cycling, and rolling. These recommended expansions have been tailored to each neighbourhood, where the addition of adjacent new neighbourhoods that are more energy efficient will be a critical addressing climate change and equity by completing existing communities. The completion of these communities will enable access to a greater range and mix of housing forms and more convenient local access to amenities, and ultimately greater choice and affordability for both housing and mobility. This will provide the foundation to ensure township residents can thrive in a low-carbon future within their unique communities and are not left behind in the clean energy transition. 4. It limits employment area land expansion by using an ambitious and achievable intensification rate of 25% for employment areas, and designates 456 hectares of new Employment Area lands to support the Region’s strong employment base and protect them for employment uses in the long-term. The recommended Employment Page 3 of 27 June 29, 2022Report: PDL-CPL-22-20 Area expansions are provided to the area municipalities that made a request (Appendix C). g) The numerical details of the recommended approach to growth areas follows: Table 1: The Region of Waterloo’s Recommended Approach to Growth Population Growth, 2021-2051 306,000 people Employment Growth, 2021- 2051 168,000 jobs Housing Need, 2021 - 2051121,000 housing units Community Area Intensification RateA minimum of 61% of all new housing units to be built within the Delineated Built-Up Area, Region-wide (2,453 housing units per year). City Average – 2,346/year Township Average – 106/year Community Area Designated Greenfield A minimum of 59 residents and jobs per Area Density hectare, Region-wide average Additional urban land required through 150hectares expansion to accommodate residents Employment Area Intensification RateA minimum of 25% A minimum of 35 jobs per developable Employment Area Density Target hectare, Region-wide average Additional urban land required through 456 hectares expansion to accommodate employment Total Recommended Urban Area 606hectares Expansion h) While the province requires all forecasted growth to be allocated now, there will be many opportunities to revisit assumptions, market trends and legislation in the next thirty years and future changes will be reviewed through these processes and appropriate amendments to the ROP can be considered at that time. i) Mapping of recommended expansions is included in Appendix C. Not included in the mapping is an urban expansion of 17 hectares in the Township of Wellesley, for which specific locations will be determined through a future process and implemented through a future ROP amendment. The LNA identifies a small Community Area expansion of 8hectares Page 4 of 27 June 29, 2022Report: PDL-CPL-22-20 for Cambridge, for which specific locations will be determined through future processes. j) The proposed policies presented in the Draft Regional Official Plan amendment, as outlined in Report PDL-CPL-22-20, will implement the recommended growth approach. The policies in the draft amendment reflect the Region’s strong commitment to inclusivity, thriving communities, and sustainability. The draft amendment showsWaterloo Region’s leadership on climate action and equity through policies aligned with implementation of the TransformWR community climate action strategy, which goes far beyond a traditional greenhouse gas (GHG) reduction plan to enable the community’s transformation into an equitable, prosperous, resilient low-carbon community over the next 30 years. The broader amendment will have a significant influence over how our community will grow into an equitable, thriving, and sustainable Waterloo Region, both within existing and future neighbourhoods. 5. Background Building an Equitable, Thriving, and Sustainable Community Waterloo Region has been a leader in land use planning over the last two decades. The introduction of the Countryside Line (CSL), the Protected Countryside, Environmentally Sensitive Landscapes (ESLs), the Regional Recharge Area (RRA), strong water protection policies, and a focus on intensification that has surpassed expectation, are some examples of this innovation. There is a strong community desire to continue building on this leadership by ensuring that the community vision for Waterloo Region is fulfilled and results in equitable, thriving, and sustainable communities. The community vision for the Region of Waterloo, identified in the Region’s Corporate Strategic Plan is, “Waterloo Region will be an inclusive, thriving, and sustainable region of connected urban and rural communities with global reach, fostering opportunities for current and future generations.” This vision was generated through an extensive, multi-year, community visioning exercise. Waterloo Region, like many other municipalities, is at a critical juncture with respect to land use planning. There is a rapidly changing planning environment, influenced by changing growth patterns due to a variety of factors including: the COVID-19 pandemic; adjacency to the Greater Toronto and Hamilton Area; boomers/millennials, immigration; migration; economic development; climate change; transportation, and; the clean energy transition. It is imperative that the way in which the region continues to grow is rooted in decisions that align with community-building objectives and that build on the region’s policy strengths. Community-Building Objectives The community-building objectives that align with the corporate strategic focus areas are: Creating 15-minute neighbourhoods across Waterloo Region that are compact, well- connected places with a clustering of a diverse and appropriate mix of land uses, including a range of housing types, shops, services, local access to food, schools and day care Page 5 of 27 June 29, 2022Report: PDL-CPL-22-20 facilities, employment, greenspaces, parks and pathways. 15-minute neighbourhoods are complete communities that enable people of all ages and abilities, at all times of year, to conveniently access the necessities for daily living with a 15-minute trip by walking, cycling, and rolling, and to meet other needs by taking direct, frequent, and convenient transit, wherever this service is possible. The Cities are in a strong position to create energy efficient 15-minute neighbourhoods by building on their existing population, employment, amenities, and larger land bases that are already able to accommodate a significant amount of forecasted growth. The Townships will face a different set of challenges in retrofitting their urban areas into energy-efficient 15-minute neighbourhoods with a full range of housing types and amenities so residents can meet their daily needs within a short trip by walking, cycling, and rolling. Due to smaller existing built areas, most of these have more limited opportunities to increase density that could work toward transit-supportive densities and enable 15-minute neighbourhoods through intensification. For the township areas, the addition of adjacent new neighbourhoods, built to be energy efficient and complete existing communities, will play a critical role in ensuring township residents can experience the benefits of 15-minute neighbourhoods and thrive in a low- carbon future within their unique communities, and are not left behind in the clean energy transition. Maximizing opportunities to align transit with growth by directing growth to Major Transit Station Area and other strategic growth areas, including Urban Growth Centres and Regional Intensification Corridors, and promoting transit investments in these areas. Adapting to the effects of a changing climate by preparing the community for warmer, wetter, and wilder weather as a result of climate change. This means designing communities to reduce the urban heat island effect, and to protect lands to ensure a balanced natural water system that can manage future flooding. Complete communities can be more resilient to the impacts of climate change, as they are more self-sufficient and less reliant on global production chains, and improve the health of residents by reducing heat island effect and improving air quality. Reducing future energy needs and greenhouse gas emissions by creating energy efficient communities that enable people in diverse communities across the region to use less energy, use clean energy and produce local clean energy. Land use planning is key to reducing energy needs, including: making new and existing communities into 15-minute neighbourhoods where people can meet their daily needs using low-energy mobility options like walking, cycling, and rolling, and can travel to other destinations using transit where it is available; adding people and jobs to existing neighbourhoods to support the additional services and amenities that people will be able to access with little to no energy use close to home; building higher density housing forms, like townhomes and various types of apartments, to reduce the energy use and greenhouse gas emissions per person Page 6 of 27 June 29, 2022Report: PDL-CPL-22-20 frombuilding heating and cooling; and maintaining natural lands and agricultural lands that sequester carbon from the atmosphere wherever possible. Providingfiscally responsible infrastructure and this is accomplishedby integrating land use and infrastructure planning. Infrastructure is the physical structures that form the foundation for development. The coordination of land use planning and infrastructure planning allows municipalities to identify the most cost-effective options for sustainably accommodating forecasted growth to support the achievement of complete communities. Providinga range and mix of housing options at different price points to best address housing affordability,and to reflect an existing as well asforward-looking approach to market-based housing. The recommended approach to growth provides for a dominant supply of low-density, ground-related housing forms to the year 2051 (almost 50% of the total housing inventory), while addressing the need for ‘missing middle’ housing, by continuing to introduce more medium and higher-density housing options that can have lower rental and purchase prices than detached homes. Continuing to protect water, natural and agricultural systems by minimizing urban expansion and integrating systems-level conservation approaches, as well as through the ongoing proactive identification of key resources coupled with strong policies for their conservation, enhancement, and adaptation to a changing climate. These community-building objectives highlight outcomes through which the ROP will support building an equitable, thriving, and sustainable community. To do this, it is necessary to move beyond trying to “balance” these different objectives in land use planning. These three aspects of community – inclusivity, thriving, and sustainability – are fundamentally connected, and must be achieved together. The remainder of the Background section of this report is structured around the following headings: I.The Regional Official Plan Process II.The Purpose of a Land Needs Assessment III. An Overview of the Growth Options IV. Evaluation and Consultation Process V. Summary of the Results of the Evaluation and Consultation Process VI. Key Points of Area Municipal, First Nations, and Public Feedback VII.The Recommended Approach to Growth I.The Regional Official Plan Review Process The overall purpose of the ROP Review is to comprehensively update the Region’s current ROP to ensure it is consistent with the policies of the PPS, 2020, reflect matters of Provincial interest under the Planning Act, and conforms to the Growth Plan, 2019. The ROP review has four main, highly Page 7 of 27 June 29, 2022Report: PDL-CPL-22-20 integrated and iterativephases, as shown in Figure 1. Figure 1: ROP Review in Four Phases A major component of the review includes a comprehensive growth analysis, referred to as a Municipal Comprehensive Review (MCR), to examine the Region’s land needs to 2051, analyze various growth options, and identify strategic growth areas (SGAs) to achieve the Region’s minimum intensification and density targets. The following sections of this report speak to the purpose of the LNA and the supporting documents used to complete a LNA, a brief overview of the growth options that were presented for public consultation, and a summary of the evaluation of the growth options. II. Purpose of A Land Needs Assessment The Region completed a Land Needs Assessment (LNA) using a prescribed provincial methodology to ensure that sufficient land is available within municipalities to accommodate all types of households at all stages of life to the horizon of the plan, while avoiding shortages that would increase the costs of housing and employment. The focus of the LNA is on how theRegion can accommodate forecasted growth. The recommended approach to growth identifies specific Community Area and Employment Area expansions for consideration, based on alignment with the community-building objectives, and they are shown on Appendix C. When the Province released a standardized methodology on how to complete a LNA, the intent was to acknowledge that the way in which growth has been occurring can be improved and therefore highlights a focus on intensification, and providing a technically-consistent approach across the Greater Golden Horseshoe. The results of a LNA, implemented through a strong set of land use policies, allows the Region to re-orient growth away from expensive, inequitable development and better prepare to grow and thrive in the future. While the technical purpose of a LNA is to assess land need, the intent is to facilitate the potential to move away from the past Page 8 of 27 June 29, 2022Report: PDL-CPL-22-20 patterns of growth towards a future that addresses significant challenges such as the effects of climate change, the needs of our aging population, efficiently using our existing infrastructure, and working to create more 15-minute communities. The draft LNA, prepared by Watson and Associates Economists Ltd., presented on April 12, 2022 (PDL-CPL-22-11), identified several growth options for Community Area and Employment Area. Community Areas include lands for residential, retail/commercial, institutional and major office uses – it is land that is not meant to exclusively accommodate homes. Employment Areas are lands that primarily accommodate warehousing, manufacturing, and logistic uses. The associated technical work that supports the analysis in the LNA is documented in the following Technical Briefs and Reports, available on the EngageWR page: Regional Recharge Area Delineation Study (October 2019); Upper Cedar Creek Scoped Subwatershed Study (October 2019); Hydrogeological Assessment Strasburg Well Field (November 2019); Technical Approach to the Delineation of the Regional Recharge Area in the Regional Official Plan (November 2019); Long-Term Population and Housing Growth Analysis, 2051 (December 2020); Policy Direction Paper on Climate Change (January 2021); Employment Strategy Technical Brief (July 2021); Intensification Strategy Technical Brief (August 2021); Draft Land Needs Assessment Report (April 2022) and Land Needs Assessment - Addendum (June 2022) Greenhouse Gas Impact of Land-Use Scenarios on GHG Emissions (June 2022) (Appendix D); Growth Option Infrastructure Review and Class D Cost Estimates (June 2022) (Appendix E); Growth Evaluation Technical Brief (June 2022) (Appendix F); Region of Waterloo Growth Options Fiscal Considerations and Addendum to Region of Waterloo Growth Options Fiscal Considerations (June 2022) (Appendix G). III. Overview of the Growth Options The illustrative growth options that were presented on April 12, 2022 (PDL-CPL-22-11) related to both Community Area and Employment Area; a six-week public engagement period followed the release of this report where feedback was requested on the growth options. Staff approached the public engagement period as an opportunity to have conversations around how best to achieve the community vision and, based on the results of these conversations, to make refinements to the growth options, resulting a recommended approach to growth. Page 9 of 27 June 29, 2022Report: PDL-CPL-22-20 The three growth options served to illustrate different approaches to accommodating growth and the different kinds of choices that are necessary to realize the community vision. The growth options considered factors such as transportation planning, development financing, employment planning, infrastructure and servicing, protection and enhancement of agricultural lands, and a range of intensification and density targets. The three Community Area and two Employment Area growth options presented the April 12, 2022 information report (PDL-CPL-22-11) were as follows: Figure 2: Illustrative Growth Options Staff developed the three options in response to, and consistent with, Council’s motion on November 9, 2021 regarding the preliminary results of the draft LNA released at that time. In particular, Council directed staff to prepare the LNA in accordance the Provincial methodology, review the draft LNA with the community, and then report back to Council on the results of the consultation process prior to finalizing the LNA. Option 1 reflected the minimum targets set out in the Provincial Growth Plan. These target are well below what the Region is currently achieving, but provide a reference point for evaluating the other two growth options. Option 2, represented an ambitious but achievable set of targets that would require a modest urban expansion of 376 hectares of land for Community Area growth. This was presented by staff to Regional Council in November 2021 (without full area municipal allocations), Option 3 set out a DGA density target higher than Option 2, but would not trigger any urban expansions for Community Area Growth.This option addressedthe spirit and intent of Council’s direction on November 9, 2021 for staff to explore an option for growth that resulted in no urban area expansion, without creating excess lands in the region. Page 10 of 27 June 29, 2022Report: PDL-CPL-22-20 With respect to the Employment Area growth options, both options usedthe same density target of 35 jobs per hectare. The employment options are associated with the community area options. These two options generate the same Employment Area land need for the Region as a whole and result in varying employment lands employment allocations by Area Municipality. The density target of 35 jobs per hectare is the same for the options, which allows the Region the ability to accommodate a wide range of employment uses on employment lands. Within the two options there are two choices presented in the amount of employment growth estimated to be accommodated through intensification of the Region’s existing employment areas. A more detailed breakdown of the growth options is contained the draft LNA, available on the ROP EngageWR platform (www.engagewr.ca/regional-official-plan). In addition, an evaluation of each growth option is available (Appendix F). IV. Evaluation and Consultation Process How Were the Growth Options Evaluated? Recommending an approach to growth that best positions Waterloo Region to achieve the identified community-building objectives involves two main components: 1) Identifying how the Region wants to grow through alignment with the community vision and community-building objectives; and, 2) Meeting provincial requirements by including an intensification target of at least 50% and a designated greenfield area density target of at least 50 people and jobs per hectare, and by completing a LNA, specifically addressing forecasted land need by housing type, mix, supply and demand (see Appendix A). To help identify the recommended approach to growth, each growth option was evaluated through the following analyses: A Growth Option Evaluation Framework was developed reflecting priorities for development and growth in both Provincial and local policies, as well as in using public and stakeholder feedback (Report PDL-CPL-21-29). Impact of Land-use Options on GHG Emissions (Appendix D), which was completed by Sustainability Solutions Group to illustrate therelative energy use and GHG effects of the three options compared to each other; Growth Option Infrastructure Review and Class D Cost Estimates (Appendix E), which was completed by Dillon Consulting Limited, analysed the infrastructure requirements for each of the three growth options and identified initial capital costs associated with infrastructure; Financial Impact Assessment by Growth Option (Appendix G), which was completed by Watson and Associates, used the capital costs identified in Appendix E and Page 11 of 27 June 29, 2022Report: PDL-CPL-22-20 calculated growth-related and net costs per capita, and provided an indication of potential future operating costs for each of the scenarios and the recommended approach to growth. Synthesisand Analysis of Area Municipal and Public Feedback-The purpose of engagement on the growth options was to generate discussion, solicit feedback and opinions on priorities for the community and then refine the approach to growth to identify a recommended approach to growth. In addition, collaboration with area municipalities, and having frequent discussions around area municipal visions and priorities for growth was critical in shaping the recommended growth approach. The recommended approach to growth that staff identifies must be holistic, strategic, and focused on advancing the region’s community vision. Appendix B provides a detailed summary of the consultation process, a high-level summary of feedback received organized by theme, and high-level staff responses. In addition, there is a list of all consultation dates, meeting dates with ROP committees, area municipal staff, stakeholders, and the public, as well as a summary of engagement through the ROP EngageWR page. V. Summary of the Results of the Evaluation and Consultation Process The following is a high-level summary of the results of the evaluation and consultation processes. Growth Option Evaluation Results (Appendix F) o Based on the results of this evaluation assessment, the options that minimized the outward expansion of the Region’s urban areas best supported the criteria identified in this evaluation framework, particularly with respect to climate change mitigation and adaptation, the energy transition, agricultural land preservation and natural environment protection. o From a technical perspective, Option 3 appeared to achieve a number of the Region’s community-building objectives, however, there were also some major challenges associated with implementing the target housing mix, as it relied on the Cities and Townships planning for very high levels of density on vacant greenfield lands. o Comparatively, Option 2 provided the best general fit with the criteria by avoiding the challenges associated with very high densities on greenfield land. However, there is an opportunity to further refine aspects of Option 2 and 3 to better optimize the distribution of growth, maximize a number of the positive aspects and minimize the challenge. o Option 1 provided little alignment with the criteria and should not be considered as a recommended approach to growth. This has been a unanimous opinion of all stakeholders. Page 12 of 27 June 29, 2022Report: PDL-CPL-22-20 Impact of Land-use Options on GHG Emissions (Appendix D) o In general, growth options thatsupporteda more compact built form would accommodate the needed people and jobs with fewer greenhouse gas emissions resulting from thenew population’s activities. o This is due to the lower energy needs per person as density of the housing form increases, and due to lower vehicle kilometres travelled for households in more central areasand in denser forms of housing. A smaller role is played in quantifiable emissions by the amount of farmland converted to urban uses and which will no longer sequester carbon. o It should be noted that the quantitative GHG analysis only compared relative emissions under the three illustrative growth options with each other, and only covers new residents added through new units within the planning horizon. It is not able to quantify the effects on existing emissions in existing neighbourhoods that might result from an option’s ability to support the creation of 15-minute neighbourhoods to improve the energy efficiency of existing lower-density neighbourhoods. Area Municipal Feedback o Overall, there was consensus among the area municipalities on the importance of the community building objectives, specifically maintaining the Countryside Line, climate change considerations, complete communities, and achieving a range and mix of housing, with an emphasis on ‘missing middle.’ o There was also consensus on focussing growth through intensification. o There was some support for the principles of Option 4, as submitted by Smart Growth Waterloo Region (see Table 3 for a summary) by the Township of Woolwich o There was some support for the direction of Option 2, with some modifications from the Township of North Dumfries. Public/Stakeholder Feedback o There was strong consensus across the community on the importance of the community building objectives highlighted above, with particular focus completing communities, climate action, protecting natural heritage, agricultural and heritage features, as well as affordable housing. o There was also a general consensus that Option 1, based on Growth Plan minimum intensification and density requirements, should not be considered further, since it does not meet community objectives, and underperforms compared to what is being achieved already. o Some members in the development community indicated support for an option with higher intensification and density targets than Option 1, but lower than Option 2. This Page 13 of 27 June 29, 2022Report: PDL-CPL-22-20 approach would necessitate a significant Community Area expansion. o There was strong support for Option 3 as it resulted in no Community Area land need, with those supporting it highlighting climate action, affordable housing, protection of agricultural lands, and support for ‘missing middle’ housing. o There was also strong community support for a no Community Area expansion option that would increase intensification targets in the Built-Up Area, relative to what was presented in Option 3, rather than increasing density targets in the unbuilt portions of new Designated Greenfield Areas. VI. Key Points of Area Municipal Council and Public Feedback With respect to communication and engagement with Area Municipalities, since the release of the draft LNA in April 2022, Regional Staff have had active and continuous conversations with the municipal planning staff of all seven local Area Municipalities, as well as their CAOs, and attended meetings of most Area Municipal Councils. In addition, each Area Municipal Council has provided feedback or comments, and this feedback from municipal councils and/or staff are found in Appendix B. With respect to communication and engagement with First Nations, Métis and other local Indigenous peoples, the Region recognizes its responsibility to engage on planning matters that may affect their rights and interests, and the unique role that Indigenous peoples have had and will continue to have in the growth and development of this region. The ROP Review provided an opportunity to build stronger relationships with First Nations and Métis based on shared values of respect, trust, meaningful dialogue and cooperation. The Region is committed to improving processes for notification and on-going engagement, and will include language in the ROP to recognize the importance of reconciliation and building relationships with Indigenous peoples who have lived and are currently livingin the region. Throughout the ROP Review, and more specifically engagement on the growth options, staff have been continuouslyengaging with Six Nations of the Grand River and the Mississaugas of the Credit First Nation. Staff have also reached out to the Métis Nation of Ontario through the Grand River Métis Council, and look forward to a forthcoming meeting. Please see Appendix B for a summary of meetings. With respect to public feedback, Table 2, below, summarizes key points from public consultation submissions, along with staff’s high-level response to each point. These comments were received between April 12 and June 10, 2022 from the development community, environmental and agricultural stakeholders, the Regional Ecological and Environmental Advisory Committee, and the general public. These comments were received through virtual public engagement sessions, EngageWR, and individual or group meetings. The Response Report (Appendix B) provides a more comprehensive summary of the engagement period. Page 14 of 27 June 29, 2022Report: PDL-CPL-22-20 Table 2: Summary of Public/Stakeholder Feedback and High-Level Staff Responses Development Community Feedback and Staff’s High-Level Response Feedback High-Level Response Concerns that the draft LNA was not completed using The Regional LNA follows the prescribed steps in the the prescribed Provincial methodology. Provincial methodology. Concerns that a housing supply and housing demand See Appendix A for the detailed inventory of greenfield analysis are missing from the Draft LNA. housing supply and need by type. Concerns that LNA has errors in the identification of The definition of Community Area includes not only Community Areas. residential lands, but those that can accommodate schools, including post-secondary institutions such as Conestoga College, some office uses, and retail/commercial areas. We have refined the delineation ofthe vacantCommunity Areas based on feedback through the public engagement process. Community Areas are not meant to accommodate only houses. The LNA correctly identifies Community Area lands. Concern that a 60% intensification rate, or higher, is Historical intensification rates in very recent years have been well above the Region’s recommended 61% unachievable over a 30 year period. intensification rate. For example, development activity throughout Kitchener, and particularly along the ION corridor, is very strong, signalling an increasing market demand. Further intensification opportunities will be realized as construction commences on ION Stage 2 through Cambridge. Townships have also indicated a desire for policies to support further intensification, allowing for senior-oriented housing, as well an ability to look towards transit opportunities. Expression that none of the growth options provide The recommended approach to growth builds into the for housing choice based on market-demand.inventorya greater range and mix of housing forms. Recognition that Option 1, the provincial minimum Option 1 is not being pursued as a recommended approach targets, would not be responsive to a variety of policy to growth. objectives including responding to climate change, and managing growth in a manner that is walkable, transit oriented, fiscally responsible, and healthy. Some requests for an option with higher density and The requested approach to growth is not supported by the intensification than Option 1, but lower density and recommended approach to growth as it does not align well intensification, and therefore more urban expansion, with the community vision, community-building objectives, climate change objectives, or re-orienting growth to make than Option 2. better use of existing infrastructure. A request for an option with the same intensification While a focus on missing middle housing aligns with the as Option 1 and density target as Option 2, in order recommended approach to growth, the current delineated to better address ‘missing middle’ housing. Built-Up Areas can accommodate a higher intensification rate (than requested) that better aligns with supporting Page 15 of 27 June 29, 2022Report: PDL-CPL-22-20 climate action objectives. Concerns that the Region overestimated the The Regions assessment of vacant DGA lands is consistent amount of vacant land that can be developed, and with the provincial methodology. that we should exclude lands that will be used for roads, parks, etc. Concerns that DGA densities proposed are Adjustments to the DGA densities in some municipalities unreasonably high in a few area. has been based on feedback from the area municipalities and the public. There are existing development throughout the Region that have similar densities to what is proposed in the LNA Concern that the Region’s LNA underestimates The Region’s LNA forecasts total housing need to 2051 the total amount of housing required. consistent with the provincial methodology, using housing propensity data to inform the total housing need over the forecast period. Concerns that the proposed housing mix cannot The proposed housing mix has been informed by historical be achieved. housing unit construction and housing units by type within the development approvals process. Roughly half of the units in the development pipeline are high density units. Environmental and Agricultural Community Feedback and High-Level Staff Response Feedback High-Level Response Advocacy towards continuing tradition of being The identified minimum intensification and density targets leaders in land-use planning/be bold, ambitious and and among the highest of all the municipalities in the visionary. Greater Golden Horseshoe. In addition, a focus on implementing the transformative concept of 15-minute neighbourhoods within the ROP, in combination with addressing a changing climate by moving towards a clean energy transition and preparing to thrive in a global low-carbon future, is considered ambitious and bold, particularly when compared to other area municipalities. Strong public support for an option that does not The Region is required fulfill the direction of the Province by require urban area expansion for community lands.realistically analysing land need to 2051. The final land needs assessment does not support an approach to growth that results in zero community area expansion. There was a perception that zero community area The Region is required to meet Provincial obligations and expansion was the most “future proof” option, since complete an LNA that looks towards a 2051 planning lands can be added in a future review of the ROP, horizon. The results of the LNA indicate that land is but designated lands are very difficult to de-required to meeting forecasted population and employment designate. growth. Significant support for Option 3 or Option 4, as The recommended approach to growth aligns very closely submitted by Smart Growth Waterloo Region. with the principles identified in Option 4, as submitted. In addition, the draft policies presented in the Draft ROP Option 4 requests the following: Amendment (PDL-CPL-22-20) advance these principles. - use higher intensification rates to encourage better With respect to Option 3, the most comparable growth use of existing infrastructure and provide a wider option, the intensification rate is slightly higher; DGA target range of affordable housing options and minimize the is lower; land need has been reduced significantly, to a Page 16 of 27 June 29, 2022Report: PDL-CPL-22-20 need for urban expansions;threshold that can be technically supported by the LNA and meets direction by the Province. - no Community Area expansions and no farmland loss occur until better information regarding the In addition, the recommended approach to growth prioritizes trends and issues is available; implementing the transformative concept of 15-minute neighbourhoods within the ROP, which addresses a - the principles of the Countryside Line and Protected changing climate by moving towards a clean energy Countryside be upheld; transition and preparing to thrive in a global low-carbon future. -a focus on more sustainable growth, including initiatives related to adopting inclusionary zoning, and increasing seniors housing, accessory units, and the missing middle for all municipalities; - investigate and implement appropriate types, forms and scale of intensification for smaller urban areas consistent with the creation of complete communities and the long term needs of the residents of the community; - a focus on development of complete, walkable communities with active transportation and public transportation options; and, - Employment Lands Option #2 with 25% or higher intensification is supported to minimize farmland loss. Regional Ecological and Environmental Advisory Committee Feedback and Staff High-Level Response Feedback High-Level Response Indicated a preference for Option 3 (Community The recommended approach to growth optimizes an Area) since it offers the most compact form and most intensification rate that supports compact growth and protection of natural heritage, water, and agricultural minimizes, to the extent possible while still adhere to the resources. Provincial direction regarding planning to a 2051 horizon, disruption to natural heritage, water, and agricultural resources. Beginning this September, staff will focus on the second phase of the ROP review. That phase will update the balance of the ROP policies (e.g., agriculture, natural heritage, cultural heritage resources, infrastructure and other policy areas) to align with Provincial policy. That process will culminate in a second proposed ROP amendment targeted for the spring of 2023. Improvements requested relating to creating more This feedback is captured in the recommended approach to opportunities for complete communities spread growth. throughout the region and not as focussed in the Cities of Kitchener and Waterloo. Only identify additional lands for development only This feedback is captured in the recommended approach to once there is a defined need and also contributes to growth. creating a complete community. Page 17 of 27 June 29, 2022Report: PDL-CPL-22-20 Further assessment and consideration of the Beginning this September, staff will focus on the second Protected Countryside is necessary before there is phase of the ROP review. That phase will update the any consideration of expanding beyond the balance of the ROP policies (e.g., agriculture, natural Countryside Line. heritage, cultural heritage resources, infrastructure and other policy areas) to align with Provincial policy. That process will culminate in a second proposed ROP amendment targeted for the spring of 2023. There may be an opportunity through this process to better capture this feedback. Support Employment Area option 2 (25%/35 j/ha) This feedback is supported in the recommended approach while giving consideration for more innovative to growth. approaches to increasing densities. Need to include more diverse housing forms within This feedback is supported in the recommended approach existing neighbourhoods (city and township) to allow to growth. for all ages and income levels to remain within the community. General Public Feedback and High-Level Staff Responses Feedback Response Concerns that 66 people and jobs per hectare, as a The recommended approach to growth presents a lower minimum and an average across both the existing density target to address this feedback. and new DGA, would be difficult to achieve. Better protect the region’s natural heritage and The policies in the current ROP are some of the most agricultural systems. protective in the province. Beginning this September, staff will focus on the second phase of the ROP review. That phase will update the balance of the ROP policies (e.g., agriculture, natural heritage, cultural heritage resources, infrastructure and other policy areas) to align with Provincial policy. That process will culminate in a second proposed ROP amendment targeted for the spring of 2023. Think bolder and seek more ambitious intensification The identified minimum intensification and density targets in and density targets for new greenfield communities.the recommended approach to growth are among the highest of all the municipalities in the Greater Golden Horseshoe. Take stronger actions to mitigate and adapt to The recommended approach to growth prioritizes mitigating climate change.and adapting to climate change. To implement this feature of the recommended approach to growth, the Draft ROP Amendment (PDL-CPL-22-20) highlights proposed key policy innovations that relate specifically to climate action. Increase the supply of affordable and “missing The recommended approach to growth prioritizes providing middle” housing. a greater range and mix of housing to 2051, at various price Page 18 of 27 June 29, 2022Report: PDL-CPL-22-20 points and specifically through “missing middle” housing. To implement this feature of the recommended approach to growth, the Draft ROP Amendment (PDL-CPL-22-20) highlights proposed key policy innovations that relate specifically to affordable and missing middle housing. Select a growth option that limits the financial impact The recommended approach to growth is a fiscally on municipalities. responsible approach for municipalities, as outlined in Appendix G. Ensure the LNA is completed correctly to provide a The Regional LNA follows the prescribed steps in the sufficient supply of land to accommodate future Provincial methodology. growth. Growth cannot only be in the form of high rise towers.The recommended approach to growth provides for a mix of housing forms to accommodate growth to the year 2051. Needmore time to review the draft LNA with key There will be further opportunities throughout July 2022 to stakeholders to provide for a more equitable provide input into draft policies that seek to implement the distribution of growth between the cities and the principles of the recommended approach to growth, if townships. endorsed. A few supporters of Option 1 (50%/50 pj/ha) The recommended approach to growth does not support indicated a preference that best preserves the Option 1. However, the draft policies contained in the Draft character of existing neighbourhoods from ROP Amendment (PDL-CPL-22-20) provides further context intensification, supports the market demand for low for how intensification, housing mix, and distribution of density housing types, andprovides for a more population and employment growth between the region’s equitable distribution of residential housing between cities and townships will occur. Heritage resources and the Region’s urban and rural municipalities. community character will be protected and enhanced through policy. A few community members preferred Community The recommended approach to growth supports this Area Option 2 because it would strike the balance of feedback. having a limited urban expansion while also providing for a range and mix of housing options. VII. The Recommended Growth Approach Highlights Several significant considerations have led to this recommended approach to growth. First, based on further review and feedback on the draft LNA, and more specifically, a review of the total amount of Community Area DGA land supply, overall Community Area land need to 2051 has been significantly reduced, compared to Option 2. Second, in consideration of staff’s responsiveness to public feedback, as well as the desires of area municipalities, in addition to the results of the technical background work and evaluation, and strategic priorities of Regional Council, the technical elements of the LNA have been refined. Page 19 of 27 June 29, 2022Report: PDL-CPL-22-20 The ultimate result is a recommended approach to growth that puts into numerical terms a way to best meet the community vision, addresses corporate strategic priorities, responds to public and area municipal criticisms, concerns, and support of key principles of growth,while also adhering to the prescribed steps of the LNA methodology and the Province’s directive to look to a 2051 planning horizon. The recommended approach to growth is not a compromise between other possible options for accommodating growth, and it does not make trade-offs between being an equitable, thriving, and sustainable community. Instead, the recommended approach to growth is a holistic approach that best sets Waterloo Region up for success over the next 30 years and beyond. Table 3, below, summarizes the recommended approach to growth. Table 3: The Region of Waterloo’s Recommended Approach to Growth Population Growth, 2021-2051 306,000 people Employment Growth, 2021 –2051 168,000 jobs Housing Need, 2021 – 2051 121,000 housing units Community Area Intensification Rate A minimum of 61% of all new housing units to be built within the Delineated Built- Up Area, Region-wide (2,453 housing units per year). City average – 2,346 Township average - 106 Community Area Designated Greenfield A minimum of 59 residents and jobs per Area Density hectare, Region-wide Additional urban land required through 150 hectares expansion to accommodate residents Employment Area Intensification Rate A minimum of 25% A minimum of 35 jobs per developable Employment Area Density Target hectare, Region-wide Additional urban land required through 456 hectares expansion to accommodate employment Total Recommended Urban Area 606 hectares Expansion Page 20 of 27 June 29, 2022Report: PDL-CPL-22-20 This recommended approach includes the following key features, all of which address either the concerns, criticisms, support, or calls for advocacy and leadership provided throughout the engagement period. The recommended approach to growth best advances the Region’s and the community’s strategic priorities while meeting provincial requirements, by: providing an appropriate range and mix of housing that considers market demand resulting in an incremental shift to a higher proportion of medium and higher densities, while also resulting in a 45% inventory of housing form dominated by low-density, ground-related housing in 2051; supporting housing and community affordability by continuing to add to the inventory of medium and high-density housing forms throughout the region; supports the provision of efficient and affordable infrastructure by focusing growth and development in the cities to support future growth while allocating land, only where necessary, in all townships to encourage and support the creation of 15-minute neighbourhoods where residents can continue to live, work and play in close proximity; maintaining the Countryside Line and only expanding in a very limited, targeted and strategic manner in order to support other community-building objectives related to living and working in close proximity; minimizing expansion into farmland and natural areas, to the greatest extent possible given the results of the final LNA, while providing a strategic range and mix of population and employment growth; and addressing climate change and achieving the community’s clean energy transition while preparing Waterloo Region to thrive in a global low-carbon future by directing forecasted growth to existing areas and only providing for additional growth in areas where 15- minute neighbourhoods can be created. The recommended approach to growth optimizes the intensification target, by: focusing growth within all BUAs across the region (city and township), at a rate of 61%. This means 61% of all new development, averaged Region-wide, will occur within the delineated BUAs. This approach supports the Region’s strategic transit and infrastructure investments, provides access to services and achieves a broader diversity of housing options including higher density and maximizing missing middle housing. This will be critical for retrofitting existing neighbourhoods into 15-minute neighbourhoods that are complete, energy efficient communities. maximizing opportunities associated with medium-density housing, or the “missing middle”, in locations throughout the Region that are amenity-rich, and support existing and future investments in transit infrastructure. This recommended approach provides for a greater choice of housing options in the BUAs across the region, which can be Page 21 of 27 June 29, 2022Report: PDL-CPL-22-20 accommodated by families and an aging population. avoiding negative consequences of increasing the intensification rate beyond 61%, specifically: o avoiding the potential to limit grade-related housing options (particularly medium-density housing) within the region due to the limited land supply in the BUA for such housing forms; and, o avoiding an excess land scenario in Cambridge and Kitchener. The recommended approach to growth targets expansion to complete or create 15-Minute neighbourhoods, by: focusing the recommended 150 hectares of Community Area and 456 hectares of Employment Area to accommodate forecasted population and employment growth to the planning horizon of 2051 to areas that advance the community-building objectives noted above. Table 5, below, provides the recommended allocation of Community Area and Employment Area. enabling the development of 15-minute neighbourhoods in specific existing urban areas in the townships. While the cities are in a strong position to create energy efficient 15- minute neighbourhoods within their existing community areas given the significant amount of existing vacant DGA lands, the townships will face a different set of challenges in retrofitting their unique urban areas into energy-efficient 15-minute neighbourhoods with a full range of housing types and amenities so residents can meet their daily needs within a short trip by walking, cycling, and rolling. Due to smaller existing built areas, most of these have more limited opportunities to increase density and enable 15-minute neighbourhoods through intensification. The strategically targeted urban expansions in the townships will provide for the addition of adjacent new neighbourhoods, built to be energy efficient and complete these existing communities. The completion of these communities will enable access to a greater range and mix of housing forms and more convenient local access to amenities, and ultimately greater choice and affordability for both housing and mobility. By providing access to lower-energy mobility and housing options, these expansions will play a critical role in ensuring township residents can thrive in a low-carbon future within their unique communities, and are not left behind in the clean energy transition. locating the recommended Community Area and Employment Area expansionsbetween the current Urban Area Boundary and the Countryside Line (CSL). These areas were identified in the current ROP as areas for potential areas of expansion, when they align with community building objectives. The recommended expansion areas do not extend beyond the CSL that was identified in the 2015 ROP and maintains the Countryside Line as presented in the 2015 ROP. Page 22 of 27 June 29, 2022Report: PDL-CPL-22-20 The recommended approach limits employment area land expansion, by: using an ambitious and achievable intensification rate of 25% for employment areas; and; designating 456 hectares of new employment area lands to support the Region’s strong employment base. Table 4: Recommended Approach to Growth - City and Township Population and Employment Growth, Community Area and Employment Area Land Need, Intensification and Density Targets to 2051 Area Population Employment Additional Additional Intensification Density Target at Growth (%) Growth (%) to Community Employment 2051 (people and job Municipality Target (%) to 2051 2051 Area (ha) Area (ha) per hectare) (minimums) City of 47% 53% 8 187 65 59 Cambridge City of 52% 54% 0 0 60 65 Kitchener City of 45% 54% 0 0 83 54 Waterloo Township 73% 74% 38 78 18 51 of North Dumfries Township 14% 20% 17 0 14 48 of Wellesley Township 30% 40% 35 15 35 43 of Wilmot Township 78% 103% 52 176 20 53 of Woolwich REGIONAL 50% 55% 150ha 456ha61% 59pj/ha 5.Area Municipality Communication and Public/Stakeholder Engagement: Consultation and engagement with the various Project Committees, including the Steering Committee, Stakeholder Committee, Technical Team and Area Municipal Working Group, as well as Indigenous engagement and public consultation is continuous throughout the ROP review project, and more specifically, with engagement on the land needs assessment component of this process. Collaboration and discussion is iterative and ongoing. Page 23 of 27 June 29, 2022Report: PDL-CPL-22-20 Feedback that was received from April to June, 2022from area municipalities and the publichas been incorporated into the recommended approach to growth and is reflected in the key features of the recommendation as well as the accompanying draft ROP policies, presented in Report PDL- CPL-22-20. A full summary of the engagement related specifically to the LNA and growth options is provided for in the Response Report (Appendix B); high-level responses to submissions are also contained in this document. 6. Financial Implications: A fiscal analysis of the three growth options and recommended growth approach has been prepared by Watson & Associates and is attached as Appendix G. The analysis uses data and findings from the Growth Option Infrastructure Review and Class D Cost Estimates completed by Dillon (Appendix E), and provides Council with the estimated financial impacts of recommended urban area expansions required by the various growth options as well as the recommended approach to growth. The fiscal analysis uses the Class D estimates prepared by Dillon relating to water supply, wastewater treatment and public transit. The fiscal analysis includes a summary of capital costs, an estimate of potential capital cost recovery from future development charges, property taxes and user rates, and a high level future operating cost estimate. s: Table 5 summarizes the fiscal analysis as follow Growth Growth Growth Recommended Option 1 Option 2 Option 3 Approach Incremental Capital Costs $711.4m $684.7m $684.9m $684.9m ($2021, in millions) Growth-related % * 64%62% 62% 62% Non-Growth-related % ** 36%38% 38% 38% Cost per capita $2,342 $2,255 $2,254 $2,225 Cost per capita range $1,921-$2,275 $1,966-$2,302 $2,008-$2,302 $1,911-$2,163 - Cities $1,488-$9,000 $1,472-$9,000 $1,351-$9,000 $1,333-$8,684 - Townships Notes: * Growth related costs are potentially recoverable from future regional development charges ** Non-growth related costs would be funded by either from property taxes or user rates Page 24 of 27 June 29, 2022Report: PDL-CPL-22-20 The total incremental capital costs are relatively similar across the three growth options and the recommended approach to growth. Growth Option 1, which reflects a higher level of greenfield development, has a slightly higher development charge recovery. Growth Options 2 and 3 reflect increased levels of intensification and therefore have a slightly lower development charge recovery as a result of higher benefits to existing development. Townships that are part of integrated urban water system and that do not have a mature transit system will have the lowest per capita cost of growth. Significant investments in the transit system will be required to support growth in the urban areas, resulting in a higher cost per capita. Townships that are on standalone water and wastewater systems that are nearing capacity will have a much higher cost per capita. This analysis is not intended to be a complete representation of the costs of growth. At this stage of the ROP Review process, the focus has been on incremental costs associated with water supply, wastewater treatment and public transit. As noted in Appendix E, it is assumed that all projects in the most recent Transportation Master Plan will be required under each scenario. Stage 2 ION has been treated in a similar manner. As such, the above figures do not include costs associated with roads expansion or Stage 2 LRT, or for other Regional services including ambulance service, the Regional Airport and policing. Also not included in the analysis are local water distribution and wastewater collection costs, which to a great extent will be incurred bythe lower tier municipalities (but also by the Region in the Townships of Wellesley and North Dumfries). The costs in the above table would be incurred at different times over the 30-year time horizon based on the location of growth and the need for the expansion. A more detailed financial analysis will be prepared based on the recommended approach to growth approved by Regional Council. 7. Conclusion / Next Steps: The ROP review is a collaborative and iterative process; one component of this process is the requirement to complete a Land Needs Assessment to determine if any Community Area or Employment Area is needed to accommodate future population and employment growth to 2051. According the results of the LNA, some land is necessary. The recommended approach to growth presented in this briefing note is ambitious and builds on Waterloo Region’s reputation for being a leader in land use planning. If endorsed by Council, it would provide strong strategic direction on where and how the region will grow and change over the next 30 years, while achieving Council’s vision for an inclusive, thriving and sustainable community. The identified minimum intensification and density targets are among the highest of all the municipalities in the Greater Golden Horseshoe. Staff are confident these targets are realistic and achievable, and will provide for a range and mix housing to accommodate the region’s growing and increasingly diverse community. The recommended approach to growth would be implemented through a proposed amendment to the ROP outlined in Report PDL-CPL-22-20. The proposed amendment would establish several new supporting policies relating to: Indigenous Relationships and Reconciliation; Equity and Inclusion; Growth Management; Climate Action; Affordable and “Missing Middle” Housing; and Page 25 of 27 June 29, 2022Report: PDL-CPL-22-20 Economic Prosperity. Subject to Council’s consideration of the recommendations in this report, staff will update the draft ROP amendment as provided in Report PDL-CPL-22-20and seek public input on it through a second round of engagement. This process will include two virtual public information meetings, and statutoryPublic Open House and Public Meeting. Following these sessions, staff will asses the feedback received from the community and compile the final recommended draft of the ROP amendment, targeted for Council’s consideration on August 11, 2022 and adoption on August 18, 2022. The key dates in the process are shown below. July 6, 2022 Virtual Public Information Meeting July 13, 2022 In-Person Public Information Meeting July 14, 2022 Virtual Public Information Meeting July 19, 2022: In-Person Statutory Public Open House July 27, 2022: Virtual Statutory Public Meeting August 11, 2022: Recommendation report to Council on adoption of the final proposed ROP amendment August 18, 2022: Council consideration of final proposed ROP amendment Attachments / Links: Appendix A – Land Needs Assessment and Addendum (Watson & Associates, Inc.) Appendix B – Response Report: Summary of Public Consultation Results Appendix C –Maps of Recommended Community Area and Employment Area Expansions Appendix D –Impact of Land-Use Scenarios on GHG Emissions (June 2022) Appendix E – Growth Options Infrastructure Review and Class D Cost Estimates and Addendum (June 2022) Appendix F –Growth Option Evaluation Technical Brief (June 2022) Appendix G – Fiscal analysis of the three growth options and recommended growth approach (June 2022) Appendix H – Settlement Area Boundary Expansion Requests Page 26 of 27 June 29, 2022Report: PDL-CPL-22-20 Prepared By: Cushla Matthews, Principal Planner Kate Daley, Environmental Sustainability Specialist Brenna MacKinnon, Manager, Development Planning Reviewed By: Danielle De Fields, Director, Community Planning and Development Approved By: Rod Regier, Commissioner, Planning, Development and Legislative Services Page 27 of 27 Report: PDL-CPL-22-21 Region of Waterloo Planning, Development and Legislative Services Community Planning To: Chair Galloway and Members of the Planning and Works Committee Meeting Date:June 29, 2022 Report Title: Draft Regional Official Plan Amendment (Growth-Related Componentof ROP Review) 1. Recommendation: That the Regional Municipality of Waterloo take the following actions with respect to the proposed draft amendment to the Regional Official Plan (ROP) described in Report PDL-CPL-22-21, dated June 29, 2022: a) Direct staff to update the draft ROP amendment to reflect Council’s decision regarding the findings and recommended approach to growth set out in the Land Needs Assessment described in Report PDL-CPL-22-20, dated June 29, 2022; and b) Direct staff to engage the community and stakeholders to obtain feedback on the updated draft ROP amendment, and schedule a statutory Open House and Public Meeting on July 19 and 27, 2022 respectively. 2. Purpose / Issue: This report presents a draft of an amendment to the Regional Official Plan (ROP) for public review and engagement. The proposed amendment would establish the planning framework for accommodating the Region’s forecasted population and employment growth to 2051, in accordance with the Growth Plan for the Greater Golden Horseshoe. The draft amendment shown in Attachment ‘A’ is a working draft intended to be updated following Council’s consideration and direction on Report PDL-CPL-22- 20, dated June 29, 2022, regarding the draft Land Needs Assessment (LNA). A summary of the key policy changes proposed through the draft ROP amendment and the next steps for community engagement is provided below. Page 1 of 9 June 29, 2022Report: PDL-CPL-22-21 3. Strategic Plan: The proposed ROP amendment directly supports several focus areas of the Region’s Corporate Strategic Plan, including: Thriving Economy; Sustainable Transportation;Environment and Climate Action; Healthy, Safe and Inclusive Communities; and Responsive and Engaging Public Service. 4. Key Considerations: a) The ROP establishes the framework for guiding Waterloo Region’s long-term growth and development in keeping with the vision for an equitable, thriving and sustainable community. The ROP is the principal planning document for shaping where and how Waterloo Region will grow and develop in the future. Since 1976, it has guided Council’s strategic decisions on a range of planning priorities, including the development of the ION light rail transit system; the protection of our valuable agricultural lands, groundwater resources, and natural environment; and the maintenance of our high quality of life for all residents. The ROP will also play an increasingly stronger role in tackling climate change through land use policies that support energy conservation, a more compactbuilt form,and other climate initiatives. b) The Region must update the ROP to plan for and accommodate significant population and employment growth to 2051. Under the Provincial Growth Plan for the Greater Golden Horseshoe (Growth Plan), the Region must update the ROP to accommodate a forecasted population of 923,000 people and 470,000 jobs by 2051. This represents growth of approximately 306,000 people (50%) and 168,000 jobs (56%) between 2021 and 2051. The proposed ROP amendment would update the Region’s planning framework for guiding and accommodating this growth in a manner that supports the vision for creating an equitable, thriving, and sustainable regional community. c) The draft ROP amendment reflects a significant amount of input to date from the community, including Indigenous peoples, local residents, area municipalities, and other key stakeholders. The public engagement strategy sought to engage as many residents and stakeholders as possible using a variety of tools and approaches. The overall goal was to connect with people early and continuously throughout the project, and provide the necessary information to ensure the informed involvement of the community. Over the past two years, we received several hundred emails, phone calls and written submissions reflecting a broad range of comments. The project’s Engage WR Website also received over 27,000 page visits, and about 800 responses to 12 Page 2 of 9 June 29, 2022Report: PDL-CPL-22-21 online surveys. Staff also obtained valuable input through social media, virtual and in-person public information meetingsand webinars,and individual meetings.This extensive level of engagement was accomplished while overcoming the challenges posed by COVID-19. d)The draft ROP amendment represents a working draft intended to be updated following Council’s consideration of the draft Land Needs Assessment (LNA). The draft ROP amendment still contains some gaps or placeholders (e.g., intensification targets, density targets for greenfield communities, and area municipal allocations of population and job growth) that will be filled in following Council’s consideration of and direction on a recommended approach to growth in the draft LNA (see report PDL-CPL-22-20). Completing the LNA is an integral step in the project to establish minimum intensification and density targets in the ROP, and to determine the need for any urban boundary expansions to accommodate urban growth to 2051. Subject to Council’s consideration of the LNA, staff will prepare an updated draft of the amendment to reflect Council’s direction on a recommended approach to growth, and then initiate a further round of public engagement in accordance with statutory requirements (see Next Steps section below). This engagement process will culminate in a final proposed ROP amendment presented for Council’s consideration and adoption targeted for August 18, 2022. e) The draft ROP amendment proposes policy changes in several important areas. Highlights of the key policy innovations proposed through the draft ROP amendment include: Indigenous Relationships and Reconciliation Adding a new Territorial Land Acknowledgment in Chapter 1 to recognize the unique and enduring relationship that exists between Indigenous peoples and their traditional territories. Introducing objectives for integrating and respecting Indigenous values, history and cultures in planning for growth and change through respect, trust, and meaningful dialogue. Recognizing the significance of the Grand River, groundwater, local landscapes, natural features and biodiversity, and the importance of ecosystem health and opportunities for people to connect with nature. Page 3 of 9 June 29, 2022Report: PDL-CPL-22-21 Equity and Inclusion Adding objectives to plan in a manner that improves social equity and overall quality of life, including human health, for people of all ages, abilities and incomes. Introducing policies to improve accessibility for persons of all ages and abilities, and at all times of year by addressing land use barriers that restrict their full participation in society. Growth Management Promoting an intensification first approach to development and community- building to make better use of existing land and infrastructure in our cities and townships. Delineating a new hierarchy of urban areas, and of supporting nodes and corridors within them, to provide clearer direction on where and how the region will grow in the future. Introducing a new Regional Intensification Corridor along the entire length of Ottawa Street in Kitchener to Fountain Street in Woolwich, to provide transit services to the East Side Employment Lands and direction transit connection Waterloo Regional International Airport. Setting new minimum targets in the ROP for residential intensification, and development densities within Urban Growth Centres, Major Transit Station Areas, and Employment Areas to support a more compact, transit-supportive built form. Fostering the development of a high-quality urban form to create an attractive and vibrant public realm. Phasing growth, infrastructure and other community services to support sustainable growth and financial responsibility. Climate Action Requiring the development of 15-minute neighbourhoods in the cities and townships where residents can meet their daily needs for living short by a short trip from home by walking, cycling, and rolling. Supporting mobility networks that prioritize walking, cycling and rolling over automobile travel to reduce auto-dependency, support active transportation, and reduce greenhouse emissions. Facilitating urban agriculture and a thriving food system to increase peoples’ Page 4 of 9 June 29, 2022Report: PDL-CPL-22-21 access to healthy, local, and affordable food options in neighbourhoods. Providing direction to the area municipalities to create new Green Development Standards to support energy efficiency and net-zero operational buildings. Requiring green infrastructure and low impact development to bettermanage stormwater runoff and reduce flooding. Planning for more resilient communities and infrastructure that are adaptive to theimpacts of a changing climate. Requiring large-scale development proposals to submit Neighbourhood Energy Plans to reduce energy costs and greenhouse gas emissions. Affordable and “Missing Middle” Housing Setting an overall target of a minimum of 30 percent of new ownership and rental housing being affordable to low- and moderate-income households. Providing for a diverse range and mix of housing options to accommodate people at all stages of life, and meet the needs of all household sizes and incomes. Enabling the area municipalities to implement Inclusionary Zoning in Major Transit Station Areas to increase the supply of affordable housing close to transit services. Permitting “neighbourhood missing middle housing”, including additional units, on a residential lot within the Urban Area and Township Urban Areas. Permitting “mid-rise missing middlehousing” in Regional Intensification Corridors, and in Local Centres and Corridors. Protecting the conversion of the existing stock of affordable rental housing to condominiums. Economic Prosperity Ensuring that each area municipality has an adequate supply of employment lands to support job growth and local economic development. Establishing a new Employment Areas designation to provide greater long- term protection of employment lands. Facilitating the intensification of lands for employment uses to support a more compact built form. Page 5 of 9 June 29, 2022Report: PDL-CPL-22-21 Supporting existing office parks to improve connectivity with transit and mobility networks for walking, cycling, and rolling. f) The draft ROP amendment represents a major project milestone, and marks the beginning of the next round of public engagement on the ROP review. Subject to Council’s direction, staff will update the draft ROP amendment and seek public input on it through a second round of engagement. This process will include two upcoming virtual,or in-person, public information sessions, and a statutory Open House and Pubic Meeting. Staff will assess what we heard at these sessions and compile the final recommended draft of the ROP amendment, anticipated for Council’s consideration and adoption on August 18, 2022. Beginning this September, staff will then focus on the second phase of the ROP review. That phase will update the balance of the ROP policies (e.g., agriculture, natural heritage, cultural heritage resources, infrastructure and other policy areas) to align with Provincial policy. Staff will provide areport on the status of and work plan for the second proposed ROP amendment in the fall of 2022. 5. Background: The ROP establishes the long-term framework for where and how Waterloo Region will grow and develop in the future. Since 1976, it has guided strategic decisions for profound transformation of this region, including the development of the ION light rail transit system, the protection of agricultural lands, groundwater resources and natural environment, and the maintenance of our high quality of life for all residents. Under the Planning Act, the Region must review and update the ROP every five to ten years to align with any changes in Provincial planning policy. Since the approval of the current ROP in 2015, there have been significant updates to Provincial plans and policies, including the Provincial Policy Statement in 2020, the Growth Plan for the Golden Horseshoe in 2017, 2019 and 2020, and several other legislative changes. In response to these changes, in 2019 the Region initiateda process to review the ROP in two phases.Thefirst phase, which is now nearing completion, involved a Municipal Comprehensive Review (MCR) to plan for the Region’s forecasted growth to 2051 in accordance with the Provincial Growth Plan. Key components of the MCR process included: a detailed review of the Region’s population and employment forecasts; a thorough Land Needs Assessment that considered three potential growth options; and an extensive pubic engagement process to obtain input from the community and key stakeholders.The draft ROP amendment outlined in this report represents a major project milestone, and marks the beginning of the next round of public engagement on the Region’s recommended growth management framework to 2051. Beginning this fall, the second phase of ROP review will update the balance of the Page 6 of 9 June 29, 2022Report: PDL-CPL-22-21 policies in the ROP (e.g., agriculture, natural heritage, cultural heritage resources, infrastructureand other policy areas)to ensure they align with the Growth Planand Provincial Policy Statement.The results of this review will culminate in a second proposed ROP amendmenttargeted for 2023. Background Research and Technical Studies The proposed ROP amendment contained in this report involved a significant amount of background research and technical studies, including: Regional Recharge Area Delineation Study (October 2019); Upper Cedar Creek Scoped Subwatershed Study (October 2019); Hydrogeological Assessment Strasburg Well Field (November 2019); Technical Approach to the Delineation of the Regional Recharge Area in the Regional Official Plan (November 2019); Long-Term Population and Housing Growth Analysis, 2051 (December 2020); Policy Direction Paper on Climate Change (January 2021); Employment Strategy Technical Brief (July 2021); Intensification Strategy Technical Brief (August 2021); Draft Land Needs Assessment Report (April 2022) and Addendum (June 2022) Greenhouse Gas Impact of Land-Use Scenarios on GHG Emissions (June 2022); Growth Option Infrastructure Review and Class D Cost Estimates (June 2022); Growth Evaluation Technical Brief (June 2022); and, Financial Analysis of the growth options and recommended approach to growth (June 2022). Delineation of Boundaries for Major Transit Station Areas and Employment Areas At its meeting of April 21, 2021, Council endorsed the recommendations contained in Report PDL-CPL-21-17 to delineate the boundaries of the Region’s 27 Major Transit Stations Areas, and to approve alternative density targets for the Laurier-Waterloo, Block Line, and Delta MTSAs. Council also endorsed the recommendations contained in Report PDL-CPL-21-16 to designate several important Employment Areas located throughout the cities and township in the ROP. The intent is to protect the conversion of lands within these Employment Areas to non-employment uses. The draft ROP amendment incorporates the recommendations from these two reports. It also incorporates further minor boundary adjustments to certain MTSAs and Employment Areas requested by the area municipalities. Alignment with Provincial Plans and Policies The draft amendment conforms with, or does not conflict with the Provincial Growth Plan, or the Greenbelt Plan, has regard for matters of Provincial interest under the Page 7 of 9 June 29, 2022Report: PDL-CPL-22-21 Planning Act, and is consistent with the Provincial Policy Statement. 6. Area Municipality Communication and Public/Stakeholder Engagement: Consultation and engagement with the various project committees, including the Steering Committee, Stakeholder Committee, Technical Team and Area Municipal Working Group, and with Indigenous peoples and the broader community, will continue throughout the ROP review.Staff will also continue to work collaboratively with each area municipality to worktowards meeting Council's policy objectives, whilealso aligning with area municipal interests and objectives. 7. Financial Implications: The Region’s approved 2022 - 2031 Community Planning Capital Program includes a budget of $756,000 in 2022 and $3,250,000 in 2023-2031 for the Regional Official Plan Review (project 22007). The costs are to be funded from Development Charges (90%, $3,605,000) and the Community Planning Capital Reserve (10%, $401,000). 8. Next Steps: Subject to Council’s consideration of the recommendations in this report, staff will update the draft ROP amendment and seek public input on it through a second round of engagement. This process will include two virtual, or in person,public information meetings,and a statutory Open House and Pubic Meeting. Following these sessions, staff will asses the feedback received from the community and compile the final recommended draft of the ROP amendment, targeted for Council’s consideration and adoption on August 18, 2022. The key dates in the process are shown below. July 6, 2022: Virtual, or In-Person, Public Information Meeting July 13 and/or 14, 2022: Virtual, and/or In-Person, Public Information Meeting July 19, 2022:Virtual or In-Person Statutory Open House July 27,2022:Statutory Public Meeting August 11, 2022:Recommendation report to Council on adoption of the final proposed ROP amendment August 18, 2022: Council consideration of final proposed ROP amendment 9. Attachments / Links: Page 8 of 9 June 29, 2022Report: PDL-CPL-22-21 Attachment A: Draft ROP Amendment - Technical Document Prepared By: John Lubczynski, Principal Planner Brenna MacKinnon, Manager, Development Planning Reviewed By: Danielle De Fields, Director, Community Planning and Development Approved By: Rod Regier, Commissioner, Planning, Development and Legislative Services Page 9 of 9