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HomeMy WebLinkAboutDSD-2024-332 - Proposed Update to the Heritage Grant Program 2024 Development Services Department www.kitchener.ca REPORT TO: Heritage Kitchener DATE OF MEETING: August 6, 2024 SUBMITTED BY: Garett Stevenson, Director of Development and Housing Approvals, 519-741-2200 ext. 7070 PREPARED BY: Jessica Vieira, Heritage Planner 519-741-2200 ext. 7291 WARD(S) INVOLVED: All Wards DATE OF REPORT: July 10, 2024 REPORT NO.: DSD-2024-332 SUBJECT: Proposed Update to the Designated Heritage Grant Program RECOMMENDATION: That staff be directed to finalize the draft revised Designated Heritage Grant Program and associated guidelines, attached as Appendix B to DSD-2024-332; and That staff be directed to finalize changes to the Designated Heritage Grant Program and associated guidelines with Kitchener City Council as part of the 2025 Budget. REPORT HIGHLIGHTS: The purpose of this report is to consult and seek support Heritage Grant Program (DHG Program) and implement new administration and operation guidelines as outlined in the draft Program Guidelines for the Designated Heritage Property Grant, attached as Appendix B to this report. The key finding of this report is that the Designated Heritage Grant Program is intended to support the conservation efforts of property owners within the City. However, average identification and designation of more cultural heritage resources. As such it is an appropriate time for the existing program to be reviewed and updated. There is a $60,000.00 yearly increase to the Capital Budget. This must be approved by Kitchener City Council as part of Budget 2025 for some of the proposed changes to take effect. Community engagement included informing residents by posting this report with the agenda in advance of the Heritage Kitchener Committee meeting and consulting with Heritage Kitchener. This report supports the delivery of core services. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. BACKGROUND: History of the Designated Heritage Grant Program first established on July 2, 2002, when Council passed By-law 2002-134. The program was updated three years later on July 4, 2005, when Council repealed the original by-law and passed By-law 2005-139 which altered the administrative procedures and operating guidelines of the program. The changes included minor housekeeping items as well as established the minimum grant value, notification requirements, and types of eligible work. The intent of the Designated Heritage Grant program is to provide funding for owners of properties designated under Part IV or Part V of the Ontario Heritage Act, to be used towards the conservation or restoration of their cultural heritage resource. The protection and care of the of cultural heritage resources within the City of Kitchener is an important part of planning for the future. Kitchener has its own unique culture and heritage. Our places, spaces, and stories are integral to our identity. There are economic, environmental, and informational values as well to cultural heritage. Heritage conservation is capable of enhancing property value and assessments, attracting investments, and creating opportunities for tourism and other specialized industries. The most sustainable and environmentally friendly buildings are ones that already exist; heritage buildings contain embodied carbon, and their use or reuse reduces the release of emissions and material consumption while keeping waste material out of the landfill. It should be recognized that our heritage resources are a finite and non-renewable resource. The City plays a critical role and has a responsibility towards the conservation of cultural heritage properties. The Official Plan contains objectives and policies which require the attributes, and integrity are retained. The administration of the Designated Heritage Grant Program is one such way in which the City can fulfil or support the fulfillment of this responsibility. Program Statistics and Performance The existing administrative and operating guidelines set out criteria for eligible conservation work and establishes the process for applicants to follow in making a submission. At present, the DHG Program may award applicants up to 50% of total eligible project costs, from a minimum of $500 to a maximum of $3000 per property per calendar year. Table 1 provides an overview of the statistics of the Designated Heritage Grant Program in the past 10 years, while Table 2 provides an overview of its performance. Table 1: Statistics of the Designated Heritage Grant Program Number of Number of Total Project Average Program YearApplications Applications Costs Project Costs Applied For Issued 2014 20 13 $ 99,555.40 $ 7,658.11 2015 12 10 $ 99,358.11 $ 11,039.79 2016 20 13 $ 176,854.28 $ 13,604.18 2017 17 14 $ 195,988.87 $ 13,999.21 2018 24 14 $ 177,050.56 $ 12,646.47 2019 13 9 $ 403,076.28 $ 44,786.25 2020 13 10 $ 89,156.53 $ 8,915.65 2021 16 8 $ 188,520.17 $ 23,565.02 2022 21 16 $ 256,954.24 $ 16,059.64 2023 17 14 $ 199,609.80 $ 14,257.84 In summary, since 2014 an average of 17 grant applications are made every year and an average of 12 grants are issued. Grant applications that are submitted may not have been awarded due to several reasons, including being ineligible as per the criteria set out by the administrative operations and guidelines, being withdrawn by the applicant, or funding being unavailable. Overall projects have seen a general increase in cost in the past ten years, with the exception of 2020 which may be attributed to the start COVID-19 pandemic. The median project costs in the past ten years have ranged from a minimum of $4,923.98 to a maximum of $14,228.16. In the most recent grant year (2023) the median project cost was $10,790.45. Table 2: Performance of the Designated Heritage Grant Program Program Year Grant Program Revenue Grant Amount Issued 2014 $8,865.00 $19,617.20 2015 $23,803.00 $35,821.18 2016 $30,739.00 $36,254.00 2017 $30,673.00 $27,497.48 2018 $30,607.00 $25,335.35 2019 $32,470.00 $22,096.14 2020 $32,470.00 $13,493.09 2021 $32,539.00 $29,995.48 2022 $32,539.00 $33,698.46 2023 $33,120.00 $38,381.62 Every year since 2016, $30,000 is added to the Heritage Grant Fund (capital account) annually, and the total grant amount issued generally exceeds the amount which is added. This is feasible only due to previous years in which the full grant funding available was not used. Municipal Heritage Register Review Project On October 25, 2022, the Provincial government introduced More Homes, BuiltFaster: 2023 and subsequently Bill 23, the More Homes Built Faster Act, 2022 to amend existing provincial legislation, including the Ontario Heritage Act. This was done to pursue the goal of increasing housing supply to address affordability in the Province of Ontario. One of the amendments to the Ontario Heritage Act contained in Bill 23 was the introduction of a two-year time-limit for the listing of non- designated properties on the Heritage Register. Prior to Bill 23, non-designated properties could be recognized and protected indefinitely on the Heritage Register. This amendment has eliminated the Heritage Register as a viable method of long-term recognition and protection of properties that are listed but not designated. As a result of Bill 23, Heritage Planning staff created a workplan that was presented to and th endorsed by the Heritage Kitchener Committee on February 7, 2023. The workplan, titled the Municipal Heritage Review Project, committed Heritage Planning staff to the review of 80 listed properties, to determine if they met sufficient criteria for designation. Implementation of the work plan has now commenced and is anticipated to continue until the end of 2026. As of the date of this report, a review has been complete for 78 properties. 10 properties are before the Committee as of the date of this report to be considered for designation. 26 properties have fully undergone the designation process. 27 properties are currently undergoing the designation process and are at various stages of completion. 15 properties have been reviewed and determined that no action should be taken at this time. It should be noted that Heritage Planning staff anticipate the review of more than 80 properties to be complete, due to an extension introduced by Bill 200, the Homeowner Protection Act, 2024 which received royal assent on June 6, 2024. Bill 200 extended the original timeline from January 1, 2025 to January 1, 2027. As a result of the Municipal Heritage Review Project, the number of heritage resources identified and designated within the City is anticipated to increase significantly. This, in combination with rising project costs, has prompted Heritage Planning staff to undertake a review of the Designated Heritage Grant Program. REPORT: Proposed Updates A review and comparative analysis of other municipal heritage programs as well as an analysis of the performance of the Designated Heritage Grant Program in the past 10 years (since 2014) has led staff to recommend that changes be made to the Designated Heritage Grant Program. The recommended changes are as follows: 1. The existing maximum grant value which can be awarded to a successful applicant is proposed to be increased from $3000 to $5000 per property per year, subject to the availability of funding. This amount was chosen as it reflected a former Provincial Heritage Grant Program. 2. An increase to the annual capital budget allocation per year from $30k to $90k to fund increased grants and introduce a new two-tiered system, which would permit two $15k grants per year for Special Projects. Work may be classified as a Special Project if it has multiple components and demonstrates that best conservation practices are being used, and thus by extension has a higher cost than the average application. This may include the repair or restoration of structural elements, should it be demonstrated that such work is required to conserve and stabilize original buildings and/or structures on the property. Work must be approved as a Special Project by Heritage Planning staff prior to applying, and additional criteria will be considered in the awarding of this type of grant. This includes giving priority to projects where the integrity of the cultural heritage resource may be threatened if work is not undertaken, and/or projects which seek to restore existing original elements over replacement or include the maximum retention of historic fabric. Preference will also be provided to properties that have not previously been awarded a Special Project grant. If the proposed changes to the programs are endorsed then, by association, the administrative procedures and guidelines for the program must be amended. The revised Guidelines for the Designated Heritage Grant Program includes the proposed updates outlined in this report and is attached as Attachment B to this report. The amendments also include minor changes to wording and formatting to improve legibility and ease of understanding for readers and to comply with the requirements of the Accessibility for Ontarians with Disabilities Act. Heritage Grant Programs in Other Municipalities Table 3 summarizes the heritage grant programs available in fifteen different municipalities across Ontario. The research indicates that most programs offer matching grants of up to half (50%) of eligible costs. Notable, however, is the range in maximums permitted. They vary between $5,000 to $20,000, with Hamilton offering as much as $150,000 plus $20,000 for certain types of buildings in specific identified areas. Seven of the fifteen municipalities offer maximums of $5,000 for all work or general work, while one offers a maximum of $6,000. Four of the fifteen municipalities utilize tiered systems where the maximum allowed is dependent on certain criteria being met. These criteria may relate to the type of work Table 3: Comparison of Other Municipal Heritage Grant Programs Municipality Program Description Brampton Matching grant up to 50% of project cost, for a maximum of $10,000. Brantford Matching grant up to 50% of project cost, for a maximum of $20,000. Burlington Grant up to 25% of project costs, for a maximum of $15,000. Caledon Matching grant up to 50% of project cost, for a maximum of $6,000 for General Conservation Projects and $15,000 for Special Projects. Cambridge Matching grant up to 50% of project cost, for a maximum of $5,000. Centre Wellington Matching grant up to 50% of project cost, for a maximum of $10,000. Guelph No Heritage Grant Program Hamilton Matching grant up to 50% of project cost between $1,000- $5,000 or for structural work for commercial, institutional, industrial, or multi-residential buildings within specific identified areas, up to a maximum of $150,000 plus $20,000 for applicable studies or reports. Kingston Matching grant up to 50% of project cost, for a maximum of $5,000 once every two years. Markham Matching grant up to 50% of project cost, for a maximum of $5,000, or for commercial properties for a maximum of $15,000. Mississauga Matching grant up to 50% of projects costs, for a maximum of $5000 for general works, $10,000 for structural works, and $25,000 for special projects. Oakville Matching grant up to 50% of project cost, for a maximum of $15,000. Richmond Hill Matching grant up to 50% of project cost, for a maximum of $5,000. St. Catherines Matching grant up to 50% of project cost, for a maximum of $5,000. Waterloo No Heritage Grant Program STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget The review of the Designated Heritage Property Grant Program is being undertaken in two steps. The first step involves reviewing the existing program and its Administrative Procedures and Operating Guidelines (the subject of this report). A second step will involve a report addressing the Capital Budget allocated to the program. Changes to the administrative procedures and operating guidelines which are financial in nature include: Establishing a two-tiered system which will categorize projects as either Increasing the maximum grant value for General Projects from $3000 to $5000 per property per year; and Adding the opportunity for two Special Projects to be awarded a maximum of $15,000 per property per year. Under the existing program, which provides just over $30,000 from the Capital Budget to the Designated Heritage Grant Program annually, if all applicants are eligible for the maximum $3000 grant than the City could award 10-11 designated properties. Assuming the same parameters, the changes recommended in this report would result in an increase in the dollar value of the grants awarded but a decrease in the number of grants awarded. As such, Heritage Planning staff are requesting Council consideration to increase the existing Capital Budget for this program as part of its 2025 Capital Budget deliberations. If an additional $60,000 is granted to Capital Budget for the DHG Program, creating a total annual allocation of $90,000, then this would allow for 12 General Project grants be awarded at the maximum of $5,000 and two Special Project grants be awarded at $15,000 per program year. The program would then be able to perform at the same capacity as it historically has, while providing greater assistance to property owners completing conservation or maintenance to their heritage resource. Operating Budget The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. CONSULT If applicable. COLLABORATE If applicable. ENTRUST If applicable. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authoritiesrelated to this matter. APPROVED BY: Justin Readman, General Manager, Development Services Department ATTACHMENTS: Attachment A Draft Guidelines for the Designated Heritage Grant Program August 2024 Table of Contents Introduction .................................................................................................................................................. 1 Program Overview ........................................................................................................................................ 2 Special Projects ......................................................................................................................................... 2 Eligibility ........................................................................................................................................................ 3 Eligible Properties ..................................................................................................................................... 3 Eligible Work ............................................................................................................................................. 3 Architect, Engineer and Other Study Fees ................................................................................................ 4 Ineligible Work .......................................................................................................................................... 5 Application and Grant Process ...................................................................................................................... 5 Pre-Consultation ....................................................................................................................................... 5 Application Requirements ........................................................................................................................ 5 Application Process ................................................................................................................................... 6 Changes or Unsatisfactory Work .............................................................................................................. 6 Definitions ..................................................................................................................................................... 7 Contact Information ...................................................................................................................................... 7 More Resources ............................................................................................................................................ 7 Photo Credits ................................................................................................................................................ 8 Introduction Kitchener has its own unique culture and heritage. Our places, spaces, and stories are integral to our identity and play a role in the function and development of the City through various means, including creating a sense of place and cultural identity, attracting investment and specialized industries, and reducing material consumption and waste in landfills. The Ontario Heritage Act is the provincial legislation that provides municipalities with the tools and responsibility to identify, evaluate, and conserve cultural heritage resources that have value or interest to the communit y. Properties may be designated individually under Part IV of the Ontario Heritage Act or designated under Part V of the Ontario Heritage Act as part of a Heritage Conservation District. Owners of property in the City of Kitchener designated under Part IV or Part V of the Ontario Heritage Act may be eligible to receive an annual grant towards the conservation, reconstruction or restoration of their cultural heritage resource. The following procedures and operating guidelines are to be used in administering the program. 1 Grant applications for General Projects may Program Overview be submitted and considered after the One grant application may be made per submission deadline subject to the property per calendar year. The awarded availability of funding. Applications grant amount for approved applications is submitted after the deadline will also be up to one half (50%) of eligible project awarded in the order in which they are costs, from a minimum of $500 to a received. Please contact Heritage Planning maximum of: staff prior to applying if the deadline has $5,000 for General Projects passed, to confirm availability of funding. $15, 000 for Special Projects Special Project grant applications may not th be awarded after the April 15 submission The final grant amount awarded to a deadline, as Special Project funding may be successful applicant will be based on the made available for additional General estimated cost of work submitted as part of Projects. a complete grant application. If some or all of the work is to be completed by the property owner, grant funding calculations Special Projects will be based on 50% of the cost of eligible Funding for a maximum of two Special materials. No funding will be provided for Project is awarded annually. Work must be labour. approved as a Special Project by Heritage The deadline for the submission of a Special Planning staff prior to applying. Project or General Project application is Special projects will have multiple th April 15 of the grant year. Grants will be components and must demonstrate that awarded with priority given to structural best conservation practices are being used. need and urgency of the project as These practices must be in accordance with determined by Heritage Planning staff or the Ontario Heritage Act, the Ontario designate, and thereafter in the order in Heritage Tool Kit, the Standard and which they are received. There are Guidelines for the Conservation of Historic additional consideration for applications for Places in Canada, and/or applicable Special Projects. Successful applications will Heritage Conservation District Plans. th be confirmed after April 15. Priority will be given to projects where the integrity of the cultural heritage resource may be threatened if work is not undertaken, and/or which seek to restore existing original elements over replacement or include the maximum retention of historic fabric. Preference will be provided to properties that have not previously received a Special Project grant. 2 Special projects may include the repair or EligibleWork restoration of structural elements, should it Eligible projects fall into three categories: be demonstrated that such work is required Conservation / Preservation of to conserve and stabilize original buildings existing architectural elements and/or structures on the property. which are significant to the cultural heritage value of the property and are identified in designating by-laws Eligibility or heritage conservation district plans. Eligible Properties Reconstruction of architectural The heritage grant is only available to elements which are significant to properties that are individually designated the cultural heritage value of the under Part IV of the Ontario Heritage Act or property, are identified in that are within a Heritage Conservation designating by-laws or heritage District designated under Part V of the conservation district plans, and Ontario Heritage Act. To determine if your which still exist, but which are property has heritage status, please refer to beyond conservation or repair. the Municipal Heritage Register available Restoration of significant online or contact Heritage Planning staff. architectural features which have Properties must also be free of compliance been lost, but for which there exists orders, enforcement orders issued under documentation to support property standards and maintenance by- appropriate reproduction as per the laws, and any other outstanding fees, fines, original. orders, or statutory violations in order to be eligible, unless the grant application addresses these orders. The requirement may be waived in other exceptional circumstances and at the discretion of Heritage Planning staff or designate. Designated heritage properties owned by any level of government are not eligible for funding except where a non-profit community group has assumed responsibility for maintenance of the building. In such cases, an application for the heritage grant may be made by such organization as the agent with a letter of consent from the Owner. 3 Eligible conservation work may include, but Preservation or restoration of grave is not limited to, the following: markers, tombs, mausolea, dead houses, stone walls, wrought iron Preservation or restoration of gates and fences, or other significant original exterior cladding and features within cemeteries as roofing, excluding asphalt shingles. identified by the designating by-law. This also includes the removal of modern or non-historic material and The grant is only available for projects replacement with materials which have obtained all necessary matching the original where they approvals, including heritage permits and can be documented. building permits, if required. Cleaning and repair or re-pointing of For Part IV properties, the project must masonry and stonework to match conserve or enhance elements identified as original in material and appearance. heritage attributes of the property. For Part Repair or replacement of V properties, the project must be architectural features such as conducted in accordance with the design porches, verandahs, balconies, guidelines and/or policies of the applicable chimneys, or other original Heritage Conservation District Plan adopted elements. by the Municipality. Repairs to historic windows, including storm windows, stain glass windows, doors, and other structural openings or replacement to match original in terms of material, details, and design. Repairs or replacement of decorative architectural detailing, millwork, and trim including brackets, soffits, fascia, and cornices. Architect, Engineer and Other Study Fees Painting of the exterior based on The Heritage Grant may include one half of documentary evidence of original the fee for architectural and engineering colours and if completed following services, feasibility or technical studies best heritage conservation including paint analysis, and the processes for repainting, where the preparation of drawings if such material is process has been agreed to by identified as being required as part of a Heritage Planning staff or a complete heritage grant application designate. A property may receive submission. The work must directly relate only one grant for exterior painting to the proposed conservation projects. within a 10-year period. 4 IneligibleWork Application and Grant Process Ineligible projects include, but are not Pre-Consultation limited to, the following: For General Projects, applicants are encouraged but not required to consult Projects of a non-historic nature, with Heritage Planning staff prior to the such as the introduction of new submission of a Grant Application. For features or work on existing features Special Projects, consultation with Heritage which are not identified heritage Planning staff is required prior to the attributes, or which are not submission of a Grant Application. regarded as having heritage value or significance. Applicants for a Heritage Grant should Repair or replacement of windows consult with Heritage Planning staff as early or doors which are not original (e.g., as possible in the process of planning a vinyl windows or a window material project. This pre-consultation may aid in that otherwise is not compatible), avoiding ineligible proposals, delays in unless the window replacement is a application processing, and helps to restoration project. establish the full extent of requirements for Interior projects, unless the features a complete application submission including are specifically identified as heritage if a Heritage Permit Application is required. attributes within the designating by- laws, as determined by the Heritage Planning staff or designate. Application Requirements Repair or replacement of non- Application requirements may vary and may original siding or roofing materials include additional material not identified (aluminum siding, asphalt shingles, below. The full extent of required material etc). will be determined by the Heritage Planning Landscaping. staff or designate. Driveway paving and repairs. Completed application form. Installation or repairs to heating or Detailed project description cooling system or other energy including why the work is required efficiency upgrades. and proposed materials and Work that has already been started methodology. or completed at the time of Cost estimate with itemized labour application. Retroactive grant and material expenses.. funding may only be approved on an Recent images of the specific area of emergency basis and at the work for the proposed project and discretion of Heritage Planning staff r. or designate. Any relevant plans, documentation, or studies. Grant Application Fee. 5 ApplicationProcessChangesorUnsatisfactoryWork The application process is as follows: Applicants are required to contact the City if there are proposed changes to the 1. Pre-consultation (required for approved scope of work. Work should not Special Projects, recommended for commence or continue unless these General Projects). proposed changes are approved by Heritage 2. Submission of Grant Application by Planning staff or a designate. Failure to Property Owner or authorized comply with this requirement may result in agent. projects being deemed ineligible and the 3. Review of Application by Heritage grant not being awarded. Planning staff and confirmation of complete application. Work in which the final quality is 4. Confirmation of conditional approval unsatisfactory, poor, or defective with or refusal of grant application after minor and/or major problems may result in th April 15. projects being deemed ineligible and the 5. Property owners to confirm their grant not being awarded. intent to proceed with the project. 6. Property owners to fulfill conditions, including submission of a Heritage Permit Application if required. 7. Project completion, site inspection by Heritage Planning staff of final work to ensure conformity, and submission of final invoices. Invoices are due by the last business day of the grant year. 8. Release of Grant Cheque (delivered via mail). Depending on the designation and the proposed project to be undertaken, a Heritage Permit Application may be required to be submitted and reviewed by the Heritage Kitchener Committee and/or Council. All projects must be completed within the calendar year for which the grant has been approved unless this deadline is extended by Heritage Planning staff or designate at their discretion. 6 Definitions Contact Information Applicant: Refers to the Owner of the For more information about the property applying for a Designated Heritage Designated Heritage Grant Program, or for Property Grant, or their agent if authorized advice or guidance on projects specific to in writing by the Owner. your property, please contact Heritage Planning staff. City: Refers to the Corporation of the City of Kitchener. Email: Heritage@Kitchener.ca Cultural Heritage Value or Interest: The Phone: 519-741-2426 design/physical, historical/associative, contextual, or other value or significance of a Designated Heritage Property for past, present, or future generations, embodied in More Resources its heritage attributes. City of Kitchener Heritage Properties and Districts Webpage Emergency Basis: Work to damaged (www.kitchener.ca/heritage) materials that were a result of unexpected events that include, but are not limited to, Ontario Heritage Act inclement weather, vandalism, fire, or Standards and Guidelines for the accident. Conservation of Historic Places in Canada Heritage Attributes: In relation to real Ontario Heritage Trust property and the buildings and structures on the real property, the elements which Eight Guiding Principles in the Conservation contribute to the cultural heritage value or of Built Heritage Properties interest. Heritage Conservation District: A geographical area identified as having cultural heritage value and designated under Part V of the Ontario Heritage Act. 7 Photo Credits Cover Page: Published by Valentine-Black Co. Ltd., provided by Kitchener Public Library Page 1: Published by MacCallum, James J, provided by Waterloo Historical Society Page 2: Provided by Waterloo Historical Society Page 3: Provided by Waterloo Historical Society Page 4: Provided by Waterloo Historical Society Page 6: Provided by Waterloo Historical Society Page 8: Published by Valentine-Black Co. Ltd., provided by Kitchener Public Library 8 Page 8