HomeMy WebLinkAboutDSD-2024-149 - Supplemental Report to DSD-2024-111 Inclusionary Zoning for 97-101 Park Street and 186-194 Victoria Street SouthStaff Report
Development Services Department www.kitchener.ca
REPORT TO: Special Council
DATE OF MEETING: March 25, 2024
SUBMITTED BY: Rosa Bustamante, Director of Planning and Housing Policy, 519-
741-2200 ext. 7319
PREPARED BY: Tim Donegani, Senior Planner 519-741-2200 ext. 7067
WARD(S) INVOLVED: Ward 9
DATE OF REPORT: March 21, 2024
REPORT NO.: DSD -2024-149
SUBJECT: Supplemental Report to DSD -2024-111 Inclusionary Zoning for 97-
101 Park Street and 186-194 Victoria Street South — DSD -2024-149
RECOMMENDATION:
That recommendations included in Report DSD -2024-111, as they apply to 97-101
Park Street and 186-194 Victoria Street South, be approved as shown in the Official
Plan Amendment and Zoning By-law Amendments in Attachments B and C to report
DSD -2024-149; and
That pursuant to Section 35(17) of the Planning Act, R.S.O. C P.13, as amended further
notice is not required to be given in respect of the Zoning By-law Amendment.
REPORT HIGHLIGHTS:
• The purpose of this report is to describe additional dialog between staff and the
consultants for 97-101 Park Street and 186-194 Victoria Street South as it pertains to
Council's deferral of the application of Kitchener's Inclusionary Zoning framework to
these properties.
• Staff continue to recommend that the Inclusionary Zoning Official Plan policies and
Zoning By-law provisions included in report DSD -2024-111 apply to 97-101 Park Street
and 186-194 Victoria Street South.
• Should Council determine that the approach to affordable units for these properties as
outlined in Council's approval of development applications for these properties from
June 2023 continue, alternative site-specific Official Plan and Zoning By-law
Amendments have been prepared to remove these properties from the Inclusionary
Zoning requirements established through the Official Plan amendment and Zoning By-
law amendment approved by Council on March 18, 2024.
• There are no financial implications arising from this repot.
• This report supports the delivery of core services.
BACKGROUND:
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 5 of 32
1928393 Ontario Inc is proposing to construct a minimum of 436 units in a mixed-use
building within the Central Station Protected Major Transit Station Area (PMTSA) at 97-101
Park Street and 186-194 Victoria Street South. In June 2023, through Council's approval of
the site specific Official Plan and Zoning By-law amendments, the provision of 30 affordable
housing units at 80% of market rate for a period of 25 years was agreed to. As noted by staff
at that time, there was no legal mechanism to secure these affordable units through the
development approvals process.
On January 29 and March 18, 2024, Council considered Official Plan and Zoning By-law
amendments for Inclusionary Zoning that would require some affordable units to be provided
within new multi unit development within Protected Major Transition Station Areas (PMTSA).
The recommended policy and by-law would establish different affordable housing
requirements than what was agreed to through Council's June 2023 approval of the
development applications for the properties.
A submission was made by the consultants for these properties requesting that the
affordable housing approach approved by Council in June 2023 be maintained (Attachment
A). This was supported by verbal delegation from the consultants at the March 18, 2024
Council meeting, where, in addition to the written submission, it was suggested that a site-
specific amendment to implement the June 2023 decision of Council would be appropriate
and that it could lapse by January 1, 2030 and revert to the PMTSA wide approach to
inclusionary zoning.
On March 18, 2024, the Staff recommended Inclusionary Zoning By-law and Official Plan
amendments were approved but a decision on 97-101 Park Street and 186-194 Victoria
Street South was deferred to allow staff to have conversations with the consultants for these
properties.
REPORT:
On March 20, 2024, staff met with the consultants for 97-101 Park Street and 186-194
Victoria Street South to discuss different approaches for site-specific inclusionary zoning
measures to reflect and secure the affordable housing approach approved by Council in
June 2023. Through these discussions, the consultants suggested a site-specific definition
of affordable housing based on 80% of market rents published on rentals.ca. Staff identified
significant concerns with the reliability and continuity of this data source. Unlike the definition
of affordable housing within Kitchener's Council approved Inclusionary Zoning Official Plan
and Zoning By-law amendments, which is based on the lesser of an income and market-
based definition, the proposed definition of affordable housing is market-based only. This
definition does not conform to the Provincial Policy Statement, Regional Official Plan, or
Kitchener's Official Plan. Staff have also identified significant concerns with the clerical and
administrative application and implementation of a site-specific definition of affordable
housing.
Staff continue to recommend a PMTSA wide approach to inclusionary zoning, that is aligned
with the approaches in Cambridge and Waterloo, and reflective of the varying market
strengths of the different PMTSAs across the Region, and do not recommend a site-specific
approach to inclusionary zoning for the subject lands. A staff recommended site-specific
Official Plan Amendment and Zoning By-law Amendment are attached to this report as
Attachments B and C respectively.
Page 6 of 32
Should Council wish to advance a site specific approach for affordable housing for these
properties in line with its June 2023 decision, a site-specific exemption to inclusionary zoning
can be considered as outlined in Attachments D and E respectively. As proposed by the
consultants, these exemptions would lapse if a building permit was not issued for the
development by January 1, 2030. It is important to note that the site-specific Official Plan
and Zoning By-law amendments attached to this report that would exempt these properties
from inclusionary zoning requirements, will not secure, in a by-law, the affordable housing
requirements of Council's June 2023 decision. This site-specific approach is agreeable to
the consultants.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
There are no financial implication arising from this report.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• DSD -2023-236 Official Plan Amendment Application OPA23/003/V/CD, and
Zoning By-law Amendment Application ZBA23/007/MV/CD, 97-101 Park Street
and 186-194 Victoria Street South, 1928393 Ontario Inc.
• DSD -2024-029 Official Plan Amendment OPA23/015/K/TD and Zoning Bylaw
Amendment ZBA23/027/K/TD — Inclusionary Zoning
• DSD -2024-111 — Supplemental Report to DSD -2024-029 Inclusionary Zoning
• Provincial Policy Statement, 2020
• A Place to Grow: Growth plan for the Greater Golden Horseshoe, 2020
• Regional Official Plan
• Planning Act
• Residential Tenancies Act
• Housing Services Act
REVIEWED BY: Natalie Goss, Manager Policy & Research
APPROVED BY: Justin Readman, General Manager Development Services
ATTACHMENTS:
Attachment A — 97-101 Park St.& 186-194 Victoria St. S IZ Submission
Attachment B — Staff Recommended Proposed Amendment to Official Plan 1994
Attachment C — Staff Recommended Proposed Amendment to Zoning By-law 85-1
Attachment D — Optional Proposed Amendment to Official Plan 1994
Attachment E - Optional Proposed Amendment to Zoning By-law 85-1
Page 7 of 32
Mayor Berry Vrbanovic and Members of Council
Kitchener City Hall
200 King Street West, 2nd Floor
Kitchener, ON N2G 4G7
Date: March 6, 2024
Our Ref: 119760
Subject: 1928393 Ontario Inc.
ARCADIS
Arcadis Professional Services (Canada) Inc.
410 Albert Street
Suite 101
Waterloo, Ontario N2L 3V3
Canada
Phone: 519 585 2255
www.arcadis.com
Request for Council to Honour Site -Specific Affordable Housing Agreement (Inclusionary Zoning)
97-101 Park Street and 186-194 Victoria Street South, Kitchener
Dear Mayor Vrbanovic and Members of Council,
On behalf of our client, 1928393 Ontario Inc., owners of the subject lands identified as 97-101 Park Street and
186-194 Victoria Street South, Kitchener, we are very concerned that staff are proposing to unilaterally override
the affordable housing commitment made to Council by our client in consideration of receiving additional density
permissions and reduced parking rates.
Please accept this letter, on behalf of our client, requesting that uouncii approve the encioseq site-specitic
amendment to the proposed Inclusionary Zoning regulations, which would facilitate an appropriate transition
of Council's prior affordable housing agreement on the subject lands into the Inclusionary Zoning regime.
The following sections review the existing affordable housing commitment on the subject lands, the impact of the
proposed Inclusionary Zoning commitment, and an overview of our recommended site-specific Zoning By -Law
Amendment.
The Existing Affordable Housing Commitment
Our client is proposing to construct at least 436 units of much needed housing in a landmark, mixed-use building
within the Central Station PMTSA at 97-101 Park Street and 186-194 Victoria Street South, Kitchener.
At the June 5, 2023 meeting of the Planning and Strategic Initiatives Committee (PSIC), members of Committee
and the public expressed a desire for additional community benefits including specific references to affordable
housing contributions. We were approached by City planning staff after that meeting regarding our client's
willingness to provide affordable housing units as part of this development provided that additional density would
be permitted. In consultation with our client, we negotiated in good faith with City planning staff and ultimately
proposed "the provision of 30 affordable housing units at 80% of market rate for a period of 25 years" provided
that an updated Official Plan Amendment and Zoning By -Law Amendment was approved to increase the
permitted Floor Space Ratio from 7.7 to 8.5 and to reduce the minimum parking rate from 0.8 parking spaces per
residential unit to 0.6 parking spaces per residential unit.
Page 81& 32
Mayor Vrbanovic and Members of Council
City of Kitchener
March 6, 2024
Council adopted the revised Official Plan Amendment No. 51 (OPA23/003/V/CD) and approved the revised
Zoning By -Law Amendment 2023-091 (ZBA23/007/MV/CD), which were prepared by City planning staff, on June
26, 2023. The affordable housing commitment was made in writing to City staff on June 21, 2023, was made
verbally to Council at the meeting on June 26, 2023, and was noted in the Council Minutes. Members of Council
thanked both our client and City planning staff for bringing forward a revised proposal on this site that included
affordable housing.
The Impact of Inclusionary Zoning
City staff have repeatedly indicated that the proposed Inclusionary Zoning (DSD -2024-029, OPA23/015/K/TD,
ZBA23/027/K/TD) and Growing Together (planning amendments are intended to work together), with the
additional density and elimination of minimum parking requirements mitigating the negative financial impacts on
new development from Inclusionary Zoning regulations.
On our client's site, City staff are proposing to unilaterally discard the good faith affordable housing commitment
made by our client while maintaining our client's lands under the existing site-specific limitations on density and
parking requirements. In effect, City staff propose that Council break its existing agreement with our client on this
site to unilaterally impose more stringent requirements.
Based on our recent discussions with Tim Donegani, we understand that staff prefer the proposed one -size -fits -all
approach across the Region and indicated we would need to make this direct request to Council for consideration
of a more appropriate transition of this existing Council agreement into the new Inclusionary Zoning regime.
Our Proposal
In order to satisfy the concerns of City planning staff regarding securing the agreement and clear definitions
through a planning instrument, we propose that Council adopt the enclosed site-specific Zoning By -Law
amendment, which would:
• Translate the existing affordable housing commitment of 30 affordable housing units at 80% of market
rent for 25 years into site-specific Zoning By -Law regulations, including providing for a definition of
"market rent", and
• Require that the site-specific regulations and other provisions be secured through an agreement
registered on title.
Based on the above comments and as previously noted, we respectfully request that Council approve the
enclosed site-specific amendment to the proposed Inclusionary Zoning regulations.
www.areadis.com 2/3
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Mayor Vrbanovic and Members of Council
City of Kitchener
March 6, 2024
Conclusion
We appreciate the opportunity to provide input to the City and to Council on this important public planning
process. We will attend and delegate at the Council meeting on March 18, 2024. We are also available to discuss
this matter further with yourselves or to further review the proposed site-specific amendment with City staff prior to
Council considering the Inclusionary Zoning amendments.
Respectfully Submitted,
ARCADIS PROFESSIONAL SERVICES (CANADA) INC.
Jeffen , M.A. Planning
Urban Planner
Email: ieff.henryP_arcadis.com
Direct Line: 519 585 2255 ext. 63223
J H/VL/baw
cc: Erik Olsen, 1928393 Ontario Inc
Vic or Lab eche, R P, MCIP
Associate Principle — Practice Lead, Planning
Email ,/ictor.labrecheP_arcadis.com
Direct Line: 519 585 2255 ext. 63252
Rosa Bustamante, Director of Planning and Housing Policy/City Planner
Natalie Goss, Manager, Policy and Research
Garett Stevenson, Manager of Development Review
Tim Donegani, Senior Planner
Craig Dumart, Senior Planner
Dianna Saunderson, Manager of Council Committee Services & Deputy Clerk
www.arcadis.com 3/3
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AMENDMENT NO. XX TO THE OFFICIAL PLAN
OF THE CITY OF KITCHENER
CITY OF KITCHENER
Page 11 of 32
AMENDMENT NO. XX TO THE OFFICIAL PLAN
OF THE CITY OF KITCHENER
CITY OF KITCHENER
97-101 Park Street and 186-194 Victoria Street South
INDEX
SECTION 1 TITLE AND COMPONENTS
SECTION 2 PURPOSE OF THE AMENDMENT
SECTION 3 BASIS OF THE AMENDMENT
SECTION 4 THE AMENDMENT
APPFnrnir,.F.q
APPENDIX 1 Notice of the Meeting of Planning and Strategic Initiatives
Committee of January 29, 2024
APPENDIX 2 Minutes of the Meeting of Planning and Strategic Initiatives
Committee — January 29, 2024
APPENDIX 3 Minutes of the Meeting of City Council — March 18, 2024
APPENDIX 4 Minutes of the Meeting of City Council — March 25, 2024
2
Page 12 of 32
AMENDMENT NO. XX TO THE OFFICIAL PLAN OF THE CITY OF KITCHENER
SECTION 1 —TITLE AND COMPONENTS
This amendment shall be referred to as Amendment No. XX to the Official Plan of the City of
Kitchener (1994). This amendment is comprised of Sections 1 to 4 inclusive.
SECTION 2 — PURPOSE OF THE AMENDMENT
The purpose of this Amendment is to apply a Special Policy Area to the property known as 97-
101 Park Street and 186-194 Victoria Street to apply the inclusionary zoning requirements of the
2014 Official Plan.
SECTION 3 — BASIS OF THE AMENDMENT
Section 16(4) to 16(13) of the Planning Act provides that municipal Official Plans may contain
policies authorizing Inclusioanry Zoning. Official Plan amendment 48, which was approved by
Council on March 18, 2024, introduced Inclusionary Zoning policies into the Official Plan. Through
Council's March 18, 2024 decision, a decision on Inclusionary Zoning was deferred for 97-101
Park Street and 186-194 Victoria Street. This Amendment will apply the Inclusionary Zoning
requirements from OPA 48 to 97-101 Park Street and 186-194 Victoria Street.
Page 13 of 32
SECTION 4—THE AMENDMENT
The City of Kitchener Official Plan (1994) is hereby amended as follows:
a) Part 3, Section 13.6.4 Special Policies is amended by adding Special Policy 13.6.4.XX
thereto as follows:
"XX. The Official Plan 2014 policies 4.C.1.43 - 4.C.1.56 regarding inclusionary zoning
on lands municipally known as 97-101 Park Street and 186-194 & 200 Victoria
Street South shall apply."
b) Map 16 — Secondary Plan — Victoria Street Neighbourhood Plan for Land Use is
amended by adding to the lands municipally known as 97-101 Park Street and 186-194
Victoria Street South Special Policy Area XX, as shown on the attached Schedule `A'
Page 14 of 32
APPENDIX 1 — Statutory Public Meeting Notice
Advertised in The Record — January 5, 2024
NOTICE OF PUBLIC MEETING �
proposing lndusionary Zoning requirements for
Aordabte housing within major transit station areas {:i
Tim Donegani, Senior Ptanner
tim.donegani,,4)kitchener.ca
519.741,2200 x7067
Have Your Voice Heard!
Planning & Strategic Initiatives Committee
Gate: January 29.2024
Location; Council Chambers,
Kitchener City Hall
200 King Street West
orVirtuat Zoom Meeting
Go to kitchener ca/meet i ngs
and select
Current agendas and reports
(posted 10 days before meeting)
Appear as a delegation
• Watch a meeting
To learn more visit-
www.engagewr.ca/
inclusionary -zoning
The City of Kitchener will consider city -initiated Official Plan an Zoning 6y -law
amendments that would require some affordable housing units tote included as part of
new buildings within Protected Major Transit Station Areas. These requirements are
called Inclusionary Zoning and would establish a minimum number of units that would
be required to be set aside to be rented to low and moderate income households at
affordable rents for the next 25 yearn
Page 15 of 32
APPENDIX 2 Minutes of the Meeting of Planning and Strategic Initiatives
Committee — January 29, 2024
Page 16 of 32
APPENDIX 3 Minutes of the Meeting of City Council — March 18, 2024
Page 17 of 32
APPENDIX 3 Minutes of the Meeting of City Council — March 25, 2024
Page 18 of 32
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PROPOSED BY-LAW NUMBER xxx
OF THE
CORPORATION OF THE CITY OF KITCHENER
(Being a by-law to amend By-law 85-1 known as the Zoning By-law for the City of Kitchener —
Inclusionary Zoning 97-101 Park Street and 186-194 Victoria Street South.)
WHEREAS it is deemed expedient to amend By-law 85-1 for the lands specified above;
NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as follows:
1. Appendix "D" to By-law 85-1 is hereby amended by deleting Section 814 thereto in its
entirety and replacing as follows:
"814. Section 5.34 Inclusionary Zoning of this By-law within the lands zoned MU -3 and
shown as being affected by this subsection on Schedule Number 73 of Appendix `A',
section 5.34 shall apply."
2. This By-law shall become effective only if, Official Plan Amendment No. 48 (Inclusionary
Zoning) and Official Plan Amendment No. XX (Site Specific Inclusionary Zoning Exemption
97-101 Park Street and 186-194 Victoria Street South), comes into effect pursuant to Section
24(2) of the Planning Act, R.S.O. 1990, c. P. 13, as amended.
PASSED at the Council Chambers in the City of Kitchener this day of , 2024.
Mayor
Clerk
Page 20 of 32
AMENDMENT NO. XX TO THE OFFICIAL PLAN
OF THE CITY OF KITCHENER
CITY OF KITCHENER
Page 21 of 32
AMENDMENT NO. XX TO THE OFFICIAL PLAN
OF THE CITY OF KITCHENER
CITY OF KITCHENER
97-101 Park Street and 186-194 Victoria Street South
INDEX
SECTION 1 TITLE AND COMPONENTS
SECTION 2 PURPOSE OF THE AMENDMENT
SECTION 3 BASIS OF THE AMENDMENT
SECTION 4 THE AMENDMENT
APPFnrnir,.F.q
APPENDIX 1 Notice of the Meeting of Planning and Strategic Initiatives
Committee of January 29, 2024
APPENDIX 2 Minutes of the Meeting of Planning and Strategic Initiatives
Committee — January 29, 2024
APPENDIX 3 Minutes of the Meeting of City Council — March 18, 2024
APPENDIX 4 Minutes of the Meeting of City Council — March 25, 2024
2
Page 22 of 32
AMENDMENT NO. XX TO THE OFFICIAL PLAN OF THE CITY OF KITCHENER
SECTION 1 —TITLE AND COMPONENTS
This amendment shall be referred to as Amendment No. XX to the Official Plan of the City of
Kitchener (1994). This amendment is comprised of Sections 1 to 4 inclusive.
SECTION 2 — PURPOSE OF THE AMENDMENT
The purpose of this Amendment is to apply a Special Policy Area to exempt the property known
as 97-101 Park Street and 186-194 Victoria Street from the inclusionary zoning requirements of
this plan for a period up to January 1, 2030.
SECTION 3 — BASIS OF THE AMENDMENT
Section 16(4) to 16(13) of the Planning Act provides that municipal Official Plans may contain
policies authorizing Inclusioanry Zoning. Official Plan amendment 48, which was approved by
Council on March 18, 2024, introduced Inclusionary Zoning policies into the Official Plan. This
Amendment will remove these Inclusionary Zoning requirements for 97-101 Park Street and 186-
194 Victoria Street until January 1, 2030.
Page 23 of 32
SECTION 4—THE AMENDMENT
The City of Kitchener Official Plan (1994) is hereby amended as follows:
a) Part 3, Section 13.6.4 Special Policies is amended by adding Special Policy 13.6.4.XX
thereto as follows:
"XX. Nothwithstanding Official Plan 2014 policies 4.C.1.43 - 4.C.1.56 regarding
inclusionary zoning on lands municipally known as 97-101 Park Street and 186-
194 & 200 Victoria Street South shall not apply. This policy will be automatically
repealed on January 1, 2030."
b) Map 16 — Secondary Plan — Victoria Street Neighbourhood Plan for Land Use is
amended by adding to the lands municipally known as 97-101 Park Street and 186-194
Victoria Street South Special Policy Area XX, as shown on the attached Schedule `A'
Page 24 of 32
APPENDIX 1 — Statutory Public Meeting Notice
Advertised in The Record — January 5, 2024
NOTICE OF PUBLIC MEETING �
proposing lndusionary Zoning requirements for
Aordabte housing within major transit station areas {:i
Tim Donegani, Senior Ptanner
tim.donegani,,4)kitchener.ca
519.741,2200 x7067
Have Your Voice Heard!
Planning & Strategic Initiatives Committee
Gate: January 29.2024
Location; Council Chambers,
Kitchener City Hall
200 King Street West
orVirtuat Zoom Meeting
Go to kitchener ca/meet i ngs
and select
Current agendas and reports
(posted 10 days before meeting)
Appear as a delegation
• Watch a meeting
To learn more visit-
www.engagewr.ca/
inclusionary -zoning
The City of Kitchener will consider city -initiated Official Plan an Zoning 6y -law
amendments that would require some affordable housing units tote included as part of
new buildings within Protected Major Transit Station Areas. These requirements are
called Inclusionary Zoning and would establish a minimum number of units that would
be required to be set aside to be rented to low and moderate income households at
affordable rents for the next 25 yearn
Page 25 of 32
APPENDIX 2 Minutes of the Meeting of Planning and Strategic Initiatives
Committee — January 29, 2024
Page 26 of 32
APPENDIX 3 Minutes of the Meeting of City Council — March 18, 2024
Page 27 of 32
APPENDIX 3 Minutes of the Meeting of City Council — March 25, 2024
Page 28 of 32
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PROPOSED BY-LAW NUMBER xxx
OF THE
CORPORATION OF THE CITY OF KITCHENER
(Being a by-law to amend By-law 85-1 known as the Zoning By-law for the City of Kitchener —
Inclusionary Zoning 97-101 Park Street and 186-194 Victoria Street South.)
WHEREAS it is deemed expedient to amend By-law 85-1 for the lands specified above;
NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as follows:
1. Appendix "D" to By-law 85-1 is hereby amended by deleting Section 814 thereto in its
entirety and replacing as follows:
"814. Notwithstanding Section 5.34 Inclusionary Zoning of this By-law within the lands
zoned MU -3 and shown as being affected by this subsection on Schedule Number
73 of Appendix `A', section 5.34 shall not apply. Special Regulation provision 814R is
automatically repealed on January 1, 2030."
2. This By-law shall become effective only if Official Plan Amendment No. 128 (97 and 101 Park
Street, 186, 190, 192 and 194 Victoria Street South), Official Plan Amendment No. 48
(Inclusionary Zoning) and Official Plan Amendment No. XX (Site Specific Inclusionary Zoning
Exemption 97-101 Park Street and 186-194 Victoria Street South), comes into effect pursuant
to Section 24(2) of the Planning Act, R.S.O. 1990, c. P. 13, as amended.
PASSED at the Council Chambers in the City of Kitchener this day of , 2024.
Mayor
Clerk
Page 30 of 32