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PSI Agenda - 2024-12-02
Planning & Strategic Initiatives Committee Agenda Monday, December 2, 2024, 7:00 p.m. - 8:30 p.m. Council Chambers City of Kitchener 200 King Street W, Kitchener, ON N2G 4G7 People interested in participating in this meeting can register online using the delegation registration form at www.kitchener.ca/delegation or via email at delegation (a)kitchener.ca. Please refer to the delegation section on the agenda below for in-person registration and electronic participation deadlines. Written comments received will be circulated prior to the meeting and will form part of the public record. The meeting live -stream and archived videos are available at www.kitchener.ca/watchnow. *Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994.* Chair: Councillor P. Singh Vice -Chair: Councillor D. Chapman Pages 1. Commencement The Planning and Strategic Initiatives Committee will begin immediately following the Community and Infrastructure Services Committee meeting, at approximately 7:00 p.m. 2. Disclosure of Pecuniary Interest and the General Nature Thereof Members of Council and members of the City's local boards/committees are required to file a written statement when they have a conflict of interest. If a conflict is declared, please visit www.kitchener.ca/conflict to submit your written form. 3. Consent Items The following matters are considered not to require debate and should be approved by one motion in accordance with the recommendation contained in each staff report. A majority vote is required to discuss any report listed as under this section. 3.1 None. 4. Delegations Pursuant to Council's Procedural By-law, delegations are permitted to address the Committee for a maximum of five (5) minutes. All Delegations where possible are encouraged to register prior to the start of the meeting. For Delegates who are attending in-person, registration is permitted up to the start of the meeting. Delegates who are interested in attending virtually must register by 5:00 p.m. on December 2, 2024, in order to participate electronically. 4.1 None at this time. 5. Discussion Items 5.1 None. 6. Public Hearing Matters under the Planning Act (advertised) This is a formal public meeting to consider applications under the Planning Act. If a person or public body does not make oral or written submissions to the City of Kitchener before the proposed applications are considered, the person or public body may not be entitled to appeal the decision to the Ontario Land Tribunal and may not be added as a party to a hearing of an appeal before the Ontario Land Tribunal. 6.1 Inclusionary Zoning - Updated Market Analysis, 75 m 3 DSD -2024-498 (Staff will provide a 10 -minute presentation on this matter.) 7. Information Items 7.1 Planning Quarterly (Q4) Report, DSD -2024-481 43 8. Adjournment Mariah Blake Committee Coordinator Page 2 of 70 Staff Report J IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Planning and Strategic Initiatives Committee DATE OF MEETING: December 2, 2024 SUBMITTED BY: Rosa Bustamante, Director of Planning and Housing Policy, 519- 783-8929 PREPARED BY: Elyssa Pompa, Policy Planner, 519-783-8943 WARD(S) INVOLVED: 3, 9, 10 DATE OF REPORT: November 21, 2024 REPORT NO.: DSD -2024-498 SUBJECT: Official Plan Amendment OPA24/013/COK/EP and Zoning Bylaw Amendment ZBA24/028/COK/EP — Inclusionary Zoning RECOMMENDATION: That the City -initiated Official Plan Amendment OPA24/013/COK/EP for the purposes of updating Inclusionary Zoning policies within Protected Major Transit Station Areas be adopted, in the form shown in the Official Plan Amendment attached to Development Services report DSD -2024-498 as Attachment `A' and accordingly forwarded to the Region of Waterloo for approval; and further, That the City -initiated Zoning By-law Amendment ZBA24/028/COK/EP to amend Zoning By- law 2019-051 and Zoning By- law 85-1, be approved in the form shown in the Proposed By-law Amendment attached to Report DSD -2024-498 as Attachment 'B' and Attachment 'C' respectively. REPORT HIGHLIGHTS: • The purpose of this report is to share findings of a report prepared by retained consultants ("NBLC") on local market conditions, including engagement with the development industry, as directed by Council. • The key finding of this report is that refinements to the Official Plan and Zoning By-law are recommended by staff in consideration of the NBLC report, conversations with the development industry, and the City's commitment to doing its part to enable and deliver affordable housing. • There are no financial implications arising from this report. • Community engagement included presenting report findings with members of the development industry and Kitchener Development Liaison Committee. • This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 3 of 70 EXECUTIVE SUMMARY: As part of its approval of Inclusionary Zoning in March 2024, Council directed staff to provide an updated report on current market conditions, carry out further consultation with industry, and make a recommendation as to whether the policy should commence in 2025, or be delayed or adjusted. In response, Staff retained N. Barry Lyons Consultants (NBLC) to prepare a report that provided an updated analysis of local market activity. The findings of this report indicated the economic landscape for high-density residential development in Protected Major Transit Station Areas (PMTSAs) has become significantly more challenging compared to five years ago. Key indicators of this shift in market conditions include: • Strong population growth in the region. However, recent federal policy changes may slow this growth; • Rising interest rates and high construction costs have reduced the feasibility of new housing projects across Ontario; • New condominium sales are sluggish due to compressed demand, with resale market offering more attractive options to homebuyers; and • Despite low vacancy rates, rental prices have stagnated due to a record number of completions last year and the recent decrease in international student visas. The report concluded that implementing Inclusionary Zoning policy now, as planned for January 2025, could further delay the recovery of the residential construction market at transit -oriented sites and exacerbate current challenges in delivering housing in these areas. During discussions with the development industry, members expressed concerns regarding the timing of Inclusionary Zoning implementation, given current market conditions. In response to the results of the NBLC report, validated by the discussions with the development industry, and recognizing the ability to enable affordable housing units in the short-term as part the City's Housing Accelerator Fund initiatives (i.e., providing city -owned land for affordable housing; affordable housing grant pilot; strategic land acquisition), staff recommends Official Plan and Zoning Bylaw amendments that will see the implementation of affordable units through inclusionary zoning commence on January 1, 2026, rather than January 2025 as originally proposed. BACKGROUND: On March 18, 2024, Council adopted Official Plan Amendment 48, Amendment 2024-068 to Zoning By-law by law 2019-051 and Amendment 2024-069 to Zoning By-law 85-1 that introduced Inclusionary Zoning policies and provisions. In addition, Council directed that: "The City will prepare a report to Council before the end of 2024, 2026, 2028 and 2030, on local market conditions, including engagement with the development industry, and provide a recommendation on whether the Minimum Percentage of Gross Leasable Residential Floor Area to be provided as affordable dwelling units should be imposed or increased in January the following year; and if any of the Protected Major Transit Station Areas should be reclassified with as a different Market Area in Table 3. This report will analyse factors such as market rents, condominium sale prices, presales and market unit absorption, financing costs, construction costs, building permits, construction starts and lands sales." Page 4 of 70 REPORT: Staff retained N. Barry Lyons Consulting (NBLC) to conduct a Supplementary Market Assessment ("report") analysing recent local market activity and conditions, and to engage further with the development community. The report highlighted changes to several factors that have reduced the financial feasibility of development in Protected Major Transit Station Area (PMTSA) including interest rates, market rents, condominium sales prices, number of presales, construction costs, building permits and construction starts. The report findings demonstrate the market and economic context for investing in new high density residential development is markedly more challenging than it was five years prior, as measured by multiple key indicators: Population Growth: Kitchener -Waterloo -Cambridge has continued to see strong population growth, largely driven by non -permanent residents. Signals indicate that this growth could slow as a result of recent Federal policy announcements related to cuts and caps to permanent and non -permanent resident targets; • Development Feasibility: Rising interest rates and a 92% increase in construction costs since 2017 have significantly reduced the feasibility of new housing projects, leading to limited new launches and building permits in 2024; Condominium Market Trends: New condominium sales are sluggish, with only 10% of units released in 2024 having been sold — largely attributed to compressed demand. Relative affordability and choice in the resale market has eroded the attractiveness of purchasing in a pre -construction project. • Rental Market Outlook: Although vacancy rates remain low, rental price growth has been dampened by record -high completions in 2023 and a decrease in international student visas. The report concluded that implementing Inclusionary Zoning policy now, as planned for January 2025 could further delay the recovery of the residential construction market at transit -oriented sites and exacerbate current challenges in delivering housing in these areas. Currently, there is no compelling justification for reclassifying the submarkets from their current "prime", "established", or "emerging" classifications within PMTSAs due to the significant lack of active projects and land transactions in all submarkets. Although the timeline for market recovery remains uncertain, broader market fundamentals indicate there will likely be a return to a strengthened housing market over time. What We Heard NBLC, along with staff from the cities of Kitchener, Waterloo, Cambridge, and the Region of Waterloo, met with representatives from the Waterloo Region Homebuilders Association and Build Urban on October 17th to share the results of the report. The discussions were productive and centered on policy development and implementation strategies. While some disagreed with the Inclusionary Zoning framework in principle, many members shared their concerns with implementation at this time given continued market challenges. A letter outlining their position is included as Attachment E. Page 5 of 70 Staff heard that current economic conditions pose significant challenges in the construction of new housing, with uncertainty into 2025. Many expressed concerns in the lack of ability to adjust margins on mid -to -high density condominium projects due to increased costs as the market has tapered off. The development industry in attendance strongly recommended that Inclusionary Zoning policy be delayed a year or until the market improves. Staff also heard concerns that implementing Inclusionary Zoning policy in a challenging market could hinder the supply of new housing. It was also suggested that staff work with the development industry to establish numerical benchmarks that can be used to trigger when the policy would be implemented, paused or ramped up. Planning Rationale The following section provides an analysis of applicable Provincial, Regional and local policies. Planning Act, R.S.O. 1990, c. P.13 25: Section 2 of the Planning Act establishes matters of provincial interest and states that the Minister, the council of a municipality, a local board, a planning board and the Tribunal, in carrying out their responsibilities under this Act, shall have regard to, among other matters, matters of provincial interest such as, Q) the adequate provision of a full range of housing, including affordable housing; (1) the protection of the financial and economic well-being of the Province and its municipalities; (n) the resolution of planning conflicts involving public and private interests; (p) the appropriate location of growth and development The legislative authority for IZ is included within Planning Act sections 16(4-13); 16(24.1.2- 24.1.3); 16(36.1.2); 34(11.0.6); 34(19.3-19.3.1); 35.2(1-9) and Ontario Regulation 232/18. In particular, the above -referenced sections: • Prescribe that IZ policies must be preceded by as assessment report that includes specified content and analysis and must be updated every 5 years; • Set out the prescribed content and details of IZ Official Plan policies and Zoning By- laws; and • Require municipalities to report on IZ biennially. These matters of provincial interest are addressed and are implemented through the Provincial Planning Statement, Regional Official Plan, and the City's Official Plan. The NBLC report that supports the proposed policy direction is based on current market conditions. Updates to the Inclusionary Zoning policy may be warranted in response to market and regulatory changes. Provincial Planning Statement, 2024 On August 19, 2024, the Ministry of Municipal Affairs and Housing released the Provincial Planning Statement, 2024 (PPS, 2024) which is the new integrated province -wide land use planning policy document. The PPS, 2024 replaces the Provincial Policy Statement, 2020 Page 6 of 70 and A Place to Grow: Growth Plan for the Greater Golden Horseshoe, with a singular Provincial Planning Statement which came into effect on October 20, 2024. The PPS, 2024 provides policy direction on matters of provincial interest related to land use planning and development. Section 2.2.1 b) of the 2024 PPS promotes all types of residential intensification, and sets out a policy framework for sustainable, healthy, livable, and safe communities. The PPS, 2024 promotes efficient development and land use patterns, as well as accommodating an appropriate mix of affordable and market-based residential dwelling types with other land uses, while supporting public health, and safety. Provincial policies promote the integration of land use planning, growth management, transit -supportive development, intensification, and infrastructure planning to achieve cost-effective development patterns, optimization of transit investments, and standards to minimize land consumption and servicing costs. The staff recommendation of delaying the commencement of the Inclusionary Zoning policy, supports the PPS by maintaining opportunities for residential development, as well as accommodating an appropriate mix of affordable and market-based residential dwelling types. Region of Waterloo Official Plan, 2010 The Region of Waterloo Official Plan stipulates that growth be directed to the Built Up Area to make better use of infrastructure that can assist in transitioning the Region into an energy efficient, low carbon community. Section 2 of the Regional Official Plan directs by requiring Area Municipalities to plan for a range of housing forms, tenures and affordability to satisfy the various physical, social and economic needs of existing and future residents. 2.3 Promote Transit Oriented Development with a diverse mix of land uses, housing types and open spaces in close proximity to each other. Delaying the commencement of the Inclusionary Zoning policy encourages an appropriate mix of market-based residential dwelling types. The staff recommendation is consistent with the Region of Waterloo Official Plan by continuing to encourage an appropriate mix of housing types. Kitchener Official Plan, 2014 The City of Kitchener provides the vision for long-term land use for Kitchener. This is further articulated and implemented through the guiding principles, goals, objectives, and policies set out in the Plan. The vision strives to build a safe, complete, and healthy community. Official Plan policies 4.C.1.55-57 set out an approach to monitoring and adjusting the IZ policies. 4.C.1.55 The City shall prepare an assessment report a minimum of every 5 years, in accordance with the Provincial requirements, for the purpose of determining whether any Inclusionary Zoning policies in this Plan should be amended. Page 7 of 70 4.C.1.56 The City, together with the Region, shall monitor the impact of Inclusionary Zoning on the affordable housing supply and will prepare and make publicly available a report every two years in accordance with Provincial requirements. The report will contain information including: a) the number of affordable dwelling units; b) the types of affordable dwelling units; c) the location of the affordable dwelling units; d) the range of household incomes for which the affordable dwelling units were provided; e) the number of affordable dwelling units that were converted to units at market value; and f) the proceeds (if any) that were received by the municipality from the sale of affordable dwelling units. The City may initiate amendments to these policies is response to the findings of this report in advance of the 5 -year assessment report update. 4.C.1.57 The City will prepare a report to Council before the end of 2024, 2026, 2028 and 2030, on local market conditions, including engagement with the development industry, and provide a recommendation on whether the Minimum Percentage of Gross Leasable Residential Floor Area to be provided as affordable dwelling units should be imposed or increased in January the following year; and if any of the Protected Major Transit Station Areas should be reclassified with as a different Market Area in Table 3. This report will analyse factors such as market rents, condominium sale prices, presales and market unit absorption, financing costs, construction costs, building permits, construction starts and lands sales. Policy 4.C.1.57 sets out the process for Inclusionary Zoning biennial reports on local market housing conditions and recommendations and potential policy adjustments in response to these findings. This report to Council fulfills this requirement for 2024. Staff continue to place critical importance on externally communicating the long-term intent of the policy so that the development community and landowners can consider Inclusionary Zoning as part of their purchase decisions and minimize impacts on market housing. Staff's recommendation includes a change to the date of implementation from January 2025 to January 1, 2026 in the Official Plan (shown in Table 1 in this report). Table 1. Revised date of Inclusionary Zoning Set -Aside Requirements proposed in the Official Plan Page 8 of 70 Minimum Percentage of Gross Leasable Residential Floor Area to be provided as Market Area Protected Major Transit Station Area affordable dwelling units by date of building permit issuance 2026 2027-2028 2029-2030 2031 + Page 8 of 70 Directing growth towards Protected Major Transit Station Areas to enhance vibrancy and leverage investment in the ION LRT are key objectives of the Official Plan. The Inclusionary Zoning policy seeks to balance the objective of increasing the supply of affordable housing with market feasibility to ensure continued viability of residential development. The program is designed to function in response to market changes and grounded in maintaining market viability. Where market conditions improve or decline, the City shall adapt the IZ program accordingly, at the biennial monitoring reports or at the time of the five-year municipal Inclusionary Zoning Assessment Report. Planning Conclusion The staff recommendation has regard for matters of Provincial interest, is consistent with the Provincial Planning Statement (2024) and the Region of Waterloo Official Plan, implements the objectives and policies of the Kitchener Official Plan and represents good planning. Shifting the commencement of the Inclusionary Zoning policy to January 1, 2026 provides an opportunity for staff and municipal team to adequately assess market viability of Inclusionary Zoning and provide a more fulsome analysis and engagement with the broader community and development industry. Inclusionary Zoning policy is one of nine Housing Accelerator Fund (HAF) initiatives the City of Kitchener is committed to implementing as part of its contribution agreement with the Canadian Mortgage and Housing Corporation (CMHC). Through other HAF initiatives, City Staff are now administering a grant program for non -profits that will support the development of at least 260 units of affordable housing and is working with non -profits to develop affordable housing on three City -owned sites, resulting in the creation of at least 105 new units of affordable housing. The HAF agreement also commits the City to acquiring new land for affordable housing. The current contribution agreement requires that the City demonstrate that implementing IZ policies has resulted in the creation of 21 new affordable dwelling units over the course of the program period. There may be an opportunity to request that these units be reallocated to another HAF initiative and still achieve the overall number of HAF incentivized units that are required by September 2026. Page 9 of 70 • Central • Victoria Park and Prime Kitchener City Hall 2% 2-3% 2-4% 5% • Queen and Frederick • Grand River Hospital Established • Kitchener Market 1% 1-2% 1-3% 5% Borden • Mill • Block Line Emerging . Fairway 0% 0-1% 0-2% 5% • Sportsworld Directing growth towards Protected Major Transit Station Areas to enhance vibrancy and leverage investment in the ION LRT are key objectives of the Official Plan. The Inclusionary Zoning policy seeks to balance the objective of increasing the supply of affordable housing with market feasibility to ensure continued viability of residential development. The program is designed to function in response to market changes and grounded in maintaining market viability. Where market conditions improve or decline, the City shall adapt the IZ program accordingly, at the biennial monitoring reports or at the time of the five-year municipal Inclusionary Zoning Assessment Report. Planning Conclusion The staff recommendation has regard for matters of Provincial interest, is consistent with the Provincial Planning Statement (2024) and the Region of Waterloo Official Plan, implements the objectives and policies of the Kitchener Official Plan and represents good planning. Shifting the commencement of the Inclusionary Zoning policy to January 1, 2026 provides an opportunity for staff and municipal team to adequately assess market viability of Inclusionary Zoning and provide a more fulsome analysis and engagement with the broader community and development industry. Inclusionary Zoning policy is one of nine Housing Accelerator Fund (HAF) initiatives the City of Kitchener is committed to implementing as part of its contribution agreement with the Canadian Mortgage and Housing Corporation (CMHC). Through other HAF initiatives, City Staff are now administering a grant program for non -profits that will support the development of at least 260 units of affordable housing and is working with non -profits to develop affordable housing on three City -owned sites, resulting in the creation of at least 105 new units of affordable housing. The HAF agreement also commits the City to acquiring new land for affordable housing. The current contribution agreement requires that the City demonstrate that implementing IZ policies has resulted in the creation of 21 new affordable dwelling units over the course of the program period. There may be an opportunity to request that these units be reallocated to another HAF initiative and still achieve the overall number of HAF incentivized units that are required by September 2026. Page 9 of 70 2024 saw a continued slowdown in housing development in Kitchener. As of September 2024, the City has achieved 59% of the identified Housing Pledge target. Although designed to function in response to market changes and grounded in maintaining market viability, it is important to reiterate the critical importance on the long-term intent of the Inclusionary Zoning policy. The Staff recommended IZ policy, together with addressing Council's direction to frequently monitor and adjust the requirements as market conditions evolve, in consultation with the development industry, will allow not only the City of Kitchener, but the Region of Waterloo as a whole, display a commitment to using the policy tools within our jurisdiction to deliver on affordable housing objectives. STRATEGIC PLAN ALIGNMENT: This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. FINANCIAL IMPLICATIONS: None. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City's website with the agenda in advance of the Council / Committee meeting. The statutory public meeting was advertised in the Waterloo Record on November 8, 2024, EngageWR and an email notice of the meeting was sent to all parties who had previously expressed interest in the project. CONSULT –Staff from cities of Kitchener, Waterloo, Cambridge, and the Region of Waterloo met with representatives from the Waterloo Region Homebuilders Association and Build Urban on October 17. Kitchener staff also met with members of the Kitchener Development Liaison Committee on October 18. PREVIOUS REPORTS/AUTHORITIES: • DSD -20- 006 Affordable Housing Strategy Phase 2: Housing Needs Assessment • DSD -20- 150 Inclusionary Zoning for Affordable Housing: Background and Fiscal Impact Analysis • DSD -2022- 281 Growth Related Funding Tools — Cumulative Impact Assessment • DSD -2022- 501 Bill 23 More Homes Built Faster Act — Kitchener Comments • DSD -2023- 071 Inclusionary Zoning for Affordable Housing: Status Update • DSD -2023- 258 Inclusionary Zoning — Policy and Implementation Directions • DSD -2024-029 Official Plan Amendment OPA23/015/ K/TD and Zoning Bylaw • Amendment ZBA23/ 027/ K/ TD — Inclusionary Zoning • DSD -2024-111 Official Plan Amendment and Zoning By-law Amendment, DSD - 2024 -029 and Follow-up Report • Provincial Planning Statement, 2024 • Planning Act, R.S.O. 1990 • Residential Tenancies Act, 2006 Page 10 of 70 • Housing Services Act, 2011 • Regional Official Plan, 2010 COAUTHORS: Tim Donegani, Senior Planner, City of Kitchener Michelle Lee, Executive Officer to the CAO, City of Waterloo Douglas Stewart, Senior Planner — Affordable Housing, City of Waterloo Judy Maan Miedema, Principal Planner, Region of Waterloo Matt Blevins, Senior Planner — Reurbanization, City of Cambridge REVIEWED BY: Natalie Goss, Manager, Policy and Research APPROVED BY: Justin Readman, General Manager of Development Services ATTACHMENTS: Attachment A — By-law to amend the Official Plan Attachment B — Proposed Bylaw to amend Zoning By-law 2019-51 Attachment C — Proposed By-law to amend Zoning By-law 85-1 Attachment D — 2024 Supplementary Market Assessment by NBLC Attachment E — Build Urban and WRHBA Joint Letter Page 11 of 70 AMENDMENT NO. X TO THE OFFICIAL PLAN OF THE CITY OF KITCHENER CITY OF KITCHENER Page 12 of 70 AMENDMENT NO. X TO THE OFFICIAL PLAN OF THE CITY OF KITCHENER CITY OF KITCHENER INDEX SECTION 1 TITLE AND COMPONENTS SECTION 2 PURPOSE OF THE AMENDMENT SECTION 3 BASIS OF THE AMENDMENT SECTION 4 THE AMENDMENT APPENDICES APPENDIX 1 Notice of the Meeting of Planning and Strategic Initiatives Committee of December 2, 2024 APPENDIX 2 Minutes of the Meeting of Planning and Strategic Initiatives Committee — December 2, 2024 APPENDIX 3 Minutes of the Meeting of City Council — December 16, 2024 2 Page 13 of 70 AMENDMENT NO. X TO THE OFFICIAL PLAN OF THE CITY OF KITCHENER SECTION 1 — TITLE AND COMPONENTS This amendment shall be referred to as Amendment No. X to the Official Plan of the City of Kitchener. This amendment is comprised of Sections 1 to 4 inclusive. SECTION 2 — PURPOSE OF THE AMENDMENT The purpose of this Official Plan Amendment is to modify Inclusionary Zoning policies that will permit the City to require affordable housing units in new developments to be included as part of other housing development within Protected Major Transit Station Areas ("PMTSAs"). The amendment is to modify the commencement of Inclusionary Zoning date of building permit issuance from 2025 to January 1, 2026. SECTION 3 — BASIS OF THE AMENDMENT Section 16(4)-16(13) of the Planning Act provides that municipal Official Plans may contain policies authorizing Inclusionary Zoning by requiring the inclusion of affordable housing units within buildings containing other residential units. These sections along with Ontario Regulation 232/18 outline the required processes and prescribed content of Official Plan polices authorizing Inclusionary Zoning. The requirements have been met in the preparation of this amendment. The amendment is to modify the commencement of Inclusionary Zoning date of building permit issuance from 2025 to January 1, 2026. This Official Plan amendment has regard for matters of provincial interest, is consistent with and conforms to the Provincial Planning Statement (2024) and the Region of Waterloo Official Plan as amended. SECTION 4 — THE AMENDMENT The City of Kitchener Official Plan is hereby amended as follows: The year "2025" be replaced with the year "2026" in Table 3: Inclusionary Zoning Set -Aside Requirements. Page 14 of 70 APPENDIX 1 — Statutory Public Meeting Notice Advertised in The Record — November 8, 2024 NOTICE OF PUBLIC MEETING proposing changes, to Inclusionary Zoning requirements in protected major transit station are, s h Elyssa Pompa, Planner (Policy) elyssa.pompa�,'p',)�kitcfiiener.ca, 519.783.8943 Have Your Voice Heard! Planning & Strategic Initiatives Connimittee Date: December2,2024 Location,, Council Chambers, Kitchener City Hall 200 King Street West, arVirtual Zoom Meeting Go to k1tc hen er.ca /meetings and sel�e,ct,, Current agendas and reports (posted 10 day's before, meefing) Appear as, a delegation 0 Waitch a, meefing, 'To leam more visit,,. www.engagewr.ca/ inclusionary -zoning, The Oty of Kftchener w4ll present a report to Kitchener COLUICil Orl local rnarket conditions and pro'Ode a, recommendation to, COUncR that kiclusionary, Zoning commence 412026. 4 Page 15 of 70 APPENDIX 2 Minutes of the Meeting of Planning and Strategic Initiatives Committee — December 2, 2024 Page 16 of 70 APPENDIX 3 Minutes of the Meeting of City Council — December 16, 2024 Page 17 of 70 2024. F-WEEIVITH 11: :., OF THE CORPORATION OF THE CITY OF KITCHENER (Being a by-law to amend By-law 2019-051 known as the Zoning By-law 2019 for the City of Kitchener — Inclusionary Zoning) WHEREAS it is deemed expedient to amend By-law 2019-051; NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as follows: 1. Section 4.3 c) of By-law Number 2019-051 is amended to add the portions of the below text that are highlighted in grey and delete portions of the below text with a strikethrough: "xi) The portion of any development that has received a `shell' building permit prior to January 1, 2025 2026." 2. This By-law shall become effective when Official Plan Amendment No. xx (Inclusionary Zoning Update), 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 , Mayor Clerk Page 18 of 70 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) WHEREAS it is deemed expedient to amend By-law 85-1; NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as follows: 1. Section 5.34 c) of By-law Number 85-1 is amended to add the portions of the below text that are highlighted in grey and delete portions of the below text with a strikethrough: "xii) The portion of any development that has received a `shell' building permit prior to January 1, 2025 2026." 2. This By-law shall become effective when Official Plan Amendment No. xx (Inclusionary Zoning Update), 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. 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R[ % c ® _ _ c= ) -0 C f - 2 3 = \ \ } \) \ \ / \ M ) L _ » _ u c § < e _ e 2 > e a 2£ a t </_ build 111111110. uroan. WATERLOO, ONTARIO October 23, 2024 City of Kitchener City of Waterloo City of Cambridge Region of Waterloo Waterloo Region Home '., A Association Attention: Tim Donegani, Douglas Stewart, Matthew Blevins, Judy Maan Miedema RE: INCLUSIONARY ZONING POLICY FRAMEWORK AND IMPLEMENTATION To Whom It May Concern: The Waterloo Region Home Builders Association (WRHBA) and Build Urban are writing to follow up on our meeting with our municipal policy leaders on October 17, 2024. We respectfully request a deferral of the proposed Inclusionary Zoning (IZ) policy implementation until at least December 2025. Additionally, we suggest scheduling a meeting next year for an update before finalizing an official implementation date. We recognize that the market environment was significantly different when this policy was first conceived, and there was potential for it to deliver affordable housing in Major Transit Station Areas (MTSAs). As an industry, we fundamentally agree that everyone deserves a place to live that they can afford. However, this is a broader societal issue that should not be solely imposed on a specific subset of the population, particularly those trying to enter the housing continuum. As demonstrated in the NBLC report presented during our meeting, the fundamental economics of building high-density developments along MTSA are razor -thin. A single market alteration can render financial proformas unfeasible. With 556 units currently on the market and only a 10% purchase rate, it is clear that policies should incentivize this market segment rather than penalize it. The WRHBA has previously opposed this policy for several reasons, including its potential to hinder growth, the inequity of applying it to those only a few steps up the housing continuum, and the significant fluctuations in market conditions that occur quarterly, or even monthly. build 111111110. uroan. WATERLOO, ONTARIO Waterloo Region Home '., A Association Broader societal issues contributing to this situation include Ontario's withdrawal from affordable housing initiatives three decades ago, the lingering economic impact of COVID-19, and the mismatch between housing supply and demand due to mass immigration and rigid planning policies. We urge you to reconsider this policy with these factors in mind. At this moment, implementing a policy that does not achieve its intent—delivering affordable housing— seems premature. As one of your municipal planners aptly noted, "any percentage of 0 units is still 0 affordable units."By deferring the policy, we can explore solutions that address the concerns outlined above and develop a framework that aligns with both market realities and the community's broader needs. We appreciate the time and effort that has gone into formulating this policy and to address our concerns. We remain committed to collaborating with our municipal partners to provide diverse housing options in a timely manner. Respectfully submitted, Joseph Puopolo Co-chair, Build Urban Marie Schroeder Executive Officer, WRHBA CC: City Clerks Offices, Regional Clerks Office WRHBA Board of Directors & Member Companies Staff Report l IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Planning and Strategic Initiatives Committee DATE OF MEETING: December 2, 2024 SUBMITTED BY: Rosa Bustamante, Director of Planning and Housing Policy / City Planner, 519-741-2200 ext. 7319 Garett Stevenson, Director of Development and Housing Approvals, 519-783-8922 PREPARED BY: Rosa Bustamante, Director of Planning and Housing Policy / City Planner, (519) 783-8929 Natalie Goss, Manager Policy & Research, 519-783-8933 Janine Oosterveld, Manager Customer Experience & Project Management, 519-783-8942 Garett Stevenson, Director of Development and Housing Approvals, 519-783-8922 WARD(S) INVOLVED: DATE OF REPORT: REPORT NO.: All November 18, 2024 DSD -2024-481 SUBJECT: Quarterly Report (Q4) - Planning and Housing Policy Division & Development and Housing Approvals Division - Significant Planning Applications, Policy Projects, Affordable Housing Projects, and Housing Pledge Update RECOMMENDATION: For information. REPORT HIGHLIGHTS: The purpose of this report is to provide an update of significant development applications, policy projects, affordable housing projects and significant projects to streamline and remove barriers as well as our housing pledge update. Not all work that is currently being undertaken by the Planning and Housing Policy & Development and Housing Approvals Divisions is captured in this report, rather a snapshot of significant work is captured. Planning staff provide a quarterly update report every March, June, September, and December of each year of all current significant development applications. It is important to be providing greater transparency on significant development applications with the community and Council. The key findings of this report include: o Since signing the Housing Pledge in March 2023, Kitchener Council has approved Official Plan Amendment and/or Zoning By-law Amendment applications for projects which propose 15,184 dwelling units (43.3% of housing pledge), Planning staff have issued final site plan approval for 5,000 dwelling units and building staff have issued building permits for 4,850 dwelling units. o Five initiatives associated with the Housing Accelerator Fund (HAF) have received a Council decision: Growing Together, Inclusionary Zoning, Enabling 4 Units, the Affordable Rental and Co-op Housing Incentives Pilot Program, and endorsement of *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 43 of 70 the land transaction to donate a City -owned parcel at River Road and Ottawa Street North for affordable owner occupied units. The other four initiatives are underway with various milestones anticipated over the coming months. o In this last quarter, significant work has advanced on the District Energy Business Case, an update to Inclusionary Zoning, and Kitchener 2051. o Kitchener's affordable housing incentives grant program is actively supporting several projects. o Extensive work continues to streamline development approvals, meet provincially mandated timelines and support excellent customer service with the current priority as site plan folder updates to prepare for the public portal. There are no financial implications with this report. Community engagement is undertaken for each development application and project, which varies for each. • This report supports the delivery of core services. REPORT: Since December of 2021, Planning staff have provided a quarterly update report every March, June, September, and December of all current significant development applications. This report, and future quarterly reports, will also include the following: • Progress and next steps for Kitchener's Housing Accelerator Fund initiatives; • Progress and next steps for major planning policy projects; • A summary of development applications that include affordable housing; • Updates on significant initiatives to remove barriers and streamline processes to support the development of housing; • Housing Pledge reporting - Development application data required to be reported under a new Provincial regulation — Ontario Regulation 73/23 — Municipal Planning Data Reporting. It is important to be providing greater transparency on significant development applications with the community and Council. Attached to this report, the Significant Planning Applications Quarterly Report (Q4 2024) provides a summary of the current Planning applications under review at the time of the preparation of this report (Attachment A). The current significant development applications section includes Subdivision, Official Plan Amendment, and Zoning By-law Amendments that have not received final approval. These are the bulk of the applications that Planning staff consult with the community on an application specific basis. Significant development applications include property specific proposals as well as new greenfield communities (subdivisions). Additional details on the development applications can be found using the online mapping tool available at www.kitchener.ca/planningapplications. Kitchener's Housing Accelerator Fund Initiatives In November 2023 Kitchener received $42.4 million as part of the Federal government's Housing Accelerator Fund to help deliver more affordable housing in our community. Nine action plan initiatives are part of Kitchener's Housing Accelerator Fund and they include the delivery of: • Growing Together West: planning framework updates in Kitchener's western protected major transit station areas; • Growing Together East: planning framework updates in Kitchener's eastern protected major transit station areas; • Growing Together West Inclusionary Zoning; • Affordable Housing Construction Offset on City -Owned Lands Incentive • Not -for -Profit Affordable Rental and Co-op Housing Incentive Pilot; • Enabling 4 Units — additional dwelling unit implementation; • Strategic land acquisition and supporting infrastructure; • A climate adaptation plan as an input into Kitchener's new Official Plan; and, Page 44 of 70 • A housing needs assessment Attachment B provides a description of each initiative, current status, next steps and target completion. Major Planning Projects There are currently 12 planning projects underway or that have been recently completed spanning a wide range of topics. These include: • Comprehensive Zoning By-law Review • High Performance Development Standards • Housing for All implementation • Kitchener 2051 -New Official Plan • Review of Provincial legislation, policies and plans • Tree Conservation Tools Review • Urban Design Manual Review • Hidden Valley Secondary Plan • Growing Together (Major Transit Station Area) Planning Framework review — West MTSAs and East MTSAs • Dundee Secondary Plan • Inclusionary Zoning • District Energy Business Case Attachment C provides a description of each project, current status, next steps, and target completion. Development Applications — Affordable Housing With a strong focus on the housing crisis, this report also includes a summary of 2024 current projects that include affordable housing that are either under review, received approvals this year to start construction or are under construction. To address provincial directives, streamline development approvals and support excellent customer service, the report also provides an update on significant process improvements underway in 2024 (Attachment D). Housing Pledge Reporting As part of the More Homes for Everyone Act, 2022 (Bill 109), the Planning Act was amended to give the Minister of Municipal Affairs and Housing the authority to require municipalities to report information on planning matters (Section 64). On April 6 2023, the Province implemented Ontario Regulation 73/23 - Municipal Planning Data Reportinq requiring Ontario's largest and fastest- growing municipalities, which includes the City of Kitchener to report development application information on a quarterly basis (as per Schedule 2 of the regulation) and additional information on an annual basis (as per Schedule 3 of the regulation). The City's quarterly report data includes the following development application types: • Official Plan Amendments, • Zoning By-law Amendments, • Site Plan Applications, • Minor Variances, • Land Severances (Consents), • Plan of Subdivisions, • Plan of Condominiums, • Community Infrastructure and Housing Accelerator Orders, and • Minister's Zoning Orders The report data must include the following: Page 45 of 70 • application identifiers (application ID and address); • application details, as applicable (date application submitted, date application deemed complete, application status, date of decision, date of adoption/passing, date of registration, number of new residential units if registered); • heritage information for the subject property as applicable (listed under section 27 (3) of the Ontario Heritage Act, designated to be of cultural heritage value or interest, subject to easement or covenant under section 37 of the Ontario Heritage Act, within a heritage conservation district area); and, • appeal information if applicable (third party appeal, type of appeal, date of appeal, date of appeal decision). The data gathered by the Province is being used to measure progress towards various Housing Supply Action Plan commitments and will also provide the information needed to support informed, evidence -based decisions around housing and planning policy. The regulation also complements the Province's initiative of developing standards and achieving consistency for exchange of data required for development applications. The City of Kitchener has submitted quarterly development application data to the Province since June 2023. The Q3 2024 quarterly planning data reports to the Province are attached to this report (Attachment E). 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 — This report has been posted to the City's website with the agenda in advance of the Council / Committee meeting. CONSULT — Significant development application specific engagements are undertaken for Official Plan Amendment, Zoning By-law, and Subdivision applications. Engagement includes mailing postcards to property owners and occupants of all buildings within 240 metres of the subject lands, publishing a newspaper notice when the application is first circulated and when the statutory public meeting is scheduled, as well as informal community meetings including Neighbourhood Meetings and/or site walks. A large plain language sign is also posted on the property. For planning policy projects, community engagement plans are developed and implemented to ensure fulsome, tailored engagement occurs early and throughout each project at a level commensurate with the scope of the project. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Justin Readman — General Manager, Development Services Page 46 of 70 ATTACHMENTS: Attachment A — Significant Planning Applications Quarterly Report (Q4 2024) Attachment B — Housing Accelerator Fund Projects (Q4 2024) Attachment C — Significant Planning Projects (Q4 2024) Attachment D — Affordable Housing and Significant Streamlining Projects (Q4 2024) Attachment E — Provincial O. Reg 73/23 Q3 Quarterly Planning Data Report Page 47 of 70 Attachment A — Significant Planning Applications Quarterly Report (Q4 2024) Current Significant Development Applications Subdivision (SA), Official Plan Amendment (OPA), Zoning By-law Amendment (ZBA) WARD 1 26 STANLEY AVENUE & 31 SCHWEITZER STREET Proposal: A Draft Plan of Vacant Land Condominium to develop the vacant lands containing 62 semi- detached and 51 townhouse dwelling units. Each dwelling unit area will have a garage and driveway and there are 47 surface visitor parking spaces. Surface parking, amenity area, and private roadway comprise the common element areas. File Number: 30CDM-24215 Description: A vacant land plan of condominium consisting of semi- detached and townhouse dwellings. Application Type: CD Status: This application has been circulated and Planning staff are accepting and reviewing comments. File Number: ZBA21/19/S/BB Description: To rezone the lands from R-4 and R-5 in By-law 85-1 to RES -5 in By-law 2019-051. Application Type: ZBA Status: This application has been circulated and Planning staff are accepting and reviewing comments. Staff Contact: Brian Bateman Neighbourhood Meeting Date: May 31, 2022. October 15, 2024 Owner: Newo Holdings Limited Applicant: GSP Group Inc. Update Since Last Quarterly Report: The subdivision application was withdrawn and a vacant land plan of condominium is now proposed. A second Neighbourhood Meeting was held on October 15, 2024 outlining the revised proposal. Planning Staff and the Applicant are considering input provided at the Neighbourhood Meeting. WARD 5 ROCKCLIFFE DR (FREURE SOUTH) Proposal: A new community with 471 new residential units including single detached, street townhouses & multiple dwellings. Parkland open space & stormwater management facilities are also proposed. File Number: OP16/001/R/KA Description: To change the designation of the easterly portion of land to high rise residential, designate a future park area as open space, and to adjust the limits of wooded areas designated as open space. Application Type: OPA Status: This application has been circulated and Planning staff are accepting and reviewing comments. File Number: ZC16/009/R/KA Description: To change the zoning from Restricted Business Park (B- 2) to residential and natural heritage conservation zones. Application Type: ZBA Status: This application has been circulated and Planning staff are accepting and reviewing comments. File Number: 30T-16201 Description: The plan of subdivision includes single detached, street townhouses & multiple dwellings along with parkland open space & stormwater management facilities. Application Type: SA Status: This application has been circulated and Planning staff are accepting and reviewing comments. Staff Contact: Katie Anderl Neighbourhood Meeting Date: TBD Owner: FREURE DEVELOPMENTS Applicant: MHBC PLANNING LTD LIMITED Update Since Last Quarter) Report: No update. Archeological assessment work continues. Page 48 of 70 WARD 3 New Application(s) 4611 KING STREET EAST Proposal: The Owners are proposing a mixed-use development with a total of 726 dwelling units, 1,242 square metres of office space and 650 square metres of retail space. The Proposed Development consists of two towers (A & B) (25 & 30 Storeys) situated atop of a 7 -storey podium connecting the towers. A range and mix of unit typologies are provided, including one -bedroom, one -bedroom plus den, two-bedroom, and three-bedroom. The Proposed Development includes a total of 501 vehicular parking spaces (surface -level and underground) and 404 bicycle parking spaces. File Number: OPA24/012/K/ES Description: The Official Plan Amendment proposes to change the land use designation from `Commercial" to "High Rise Residential". Application Type: OPA Status: This application has been circulated and Planning staff are accepting and reviewing comments. File Number: ZBA24/024/K/ES Description: The Zoning By-law Amendment proposes to change the Zoning from `Arterial Commercial' (COM -3) to `Mixed Use Three' (MIX -3) and add a site-specific provision for development standards. Application Type: ZBA Status: This application has been circulated and Planning staff are accepting and reviewing comments. Staff Contact: Eric Schneider Neighbourhood Meeting Date: October 16, 2024 Owner: LJM Developments Applicant: GSP Group Inc. Update Since Last Quarterly Report: New Application. This application has been circulated and Planning staff are accepting and reviewing comments. 808 & 836 COURTLAND AVE E Proposal: A mixed-use development containing 3 high-rise residential towers (22, 27 and 30 storeys), situated on a shared podium (977 dwelling units). The podium contains commercial uses (532.1m2). 509 parking spaces and 733 bicycle parking spaces are proposed. File Number: OPA24/011/C/AP Description: The Official Plan Amendment is proposing the change the land use designation from Commercial and General Industrial Employment to High Density Residential with a Site Specific Policy to permit a Floor Space Ratio of 7.0. Application Type: OPA Status: This application has been circulated and Planning staff are accepting and reviewing comments. File Number: ZBA24/023/C/AP Description: The Zoning By-law Amendment proposes to change the zoning from C-6, 1 R, 73R, 76U & M-2, 29R (By-law 85-1) to RES -7 with a Site Specific Provision to permit restaurant and retail use, reduce certain setbacks, allow a Floor Space Ratio of 7.0, increase the maximum building height to 102.6 metres / 30 storeys, and add certain design -related regulations (By-law 2019-051). Application Type: ZBA Status: This application has been circulated and Planning staff are accepting and reviewing comments. Staff Contact: Eric Schneider Neighbourhood Meeting Date: October 23, 2024 Owner: 808 Courtland GP Inc. Applicant: Zehr Group Update Since Last Quarterly Report: New Application. This application has been circulated and Planning staff are accepting and reviewing comments. Page 49 of 70 WARD 8 400 WESTWOOD DR Proposal: To demolish the existing house and create four new lots for single detached dwellings. File Number: ZBA21/0121W/ES Description: To rezone the developable portion of the lands to site specific Residential Four (R-4). Application Type: ZBA Status: This application has been circulated and Planning staff are accepting and reviewing comments. Staff Contact: Eric Schneider Neighbourhood Meeting Date: January 13, 2022 Owner: NASIR BROMAND, ZAKIA Applicant: IBI GROUP BROMAND Update Since Last Quarterly Report: No update. A Neighbourhood Meeting was held with the community on January 13, 2022. Planning Staff and the Applicant are considering input provided at the Neighbourhood Meeting. WARD 9 50 BORDEN AVE S Proposal: a mixed-use development consisting of two towers (57 storeys and 51 storeys in height) having 1,224 dwelling units and 7,240 m2 of commercial and institutional space. File Number: OPA23/004/B/KA Description: Site-specific regulations propose a Floor Space Ratio (FSR) of 16.1, a reduced rear yard setback, and a parking reduction to permit 618 parking spaces Application Type: OPA Status: This application has been circulated and Planning staff are accepting and reviewing comments. File Number: ZBA22/008/B/KA Description: Site-specific regulations propose a Floor Space Ratio (FSR) of 16.1, a reduced rear yard setback, and a parking reduction to permit 618 parking spaces Application Type: ZBA Status: This application has been circulated and Planning staff are accepting and reviewing comments. Staff Contact: Katie Anderl Neighbourhood Meeting Date: June 6, 2023 Owner: Woodhouse Investments Inc Applicant: IBI Group Update Since Last Quarterly Report: No update. This application has been circulated and Planning staff are accepting and reviewing comments. Page 50 of 70 WARD 10 22 WEBER ST W Proposal: A 19 -storey multiple residential building with 162 units, including 25 barrier free units. A total of 24 parking spaces are proposed at grade. File Number: OPA20/005/W/JVW Description: The applicant is now proposing to amend the designation to High Density Commercial Residential with a Special Policy Area in order to permit a floor space ratio FSR of 7.8. Application Type: OPA Status: Under appeal File Number: ZBA20/013/W/JVW Description: The subject lands are currently zoned Commercial Residential Three (CR -3) in Zoning By-law 85-1. The applicant is proposing the same base zone with site specific special regulations to permit; an increase in height to 19 storeys, an increase in Floor Space Ratio to 7.8, To require a minimum ground floor fagade height of 4.5m, to reduce the required minimum landscaped area required from 10% to 8%, to reduce front and rear yard setbacks, and to reduce the required on-site parking to 24 spaces, including 8 visitor parking spaces. Application Type: ZBA Status: Under appeal Staff Contact: Garett Stevenson Neighbourhood Meeting Date: Sept. 8, 2021 & March 3, 2022. Owner: 30 DUKE STREET LIMITED Applicant: MHBC PLANNING LTD Update Since Last Quarterly Report: Another Case Management Conference has been scheduled for October 30, 2024. A hearing has been scheduled for April 14 — May 6, 2025. Page 51 of 70 Attachment B — Housing Accelerator Fund Projects Current Housing Accelerator Fund Projects Quarter 4, 2024 Update CITY-WIDE Affordable Housing Construction Offset on City -owned Lands Description: This initiative involves looking for new opportunities to provide lands for below-market rental and ownership housing and working directly with affordable housing providers to access the lands and collaborate on the delivery of affordable or supportive housing projects. Current Status: In April 2024, Council agreed to donate a property at 1035 Ottawa St IN PROGRESS to be used as part of the Build Now Initiative and achieve at least 63 units for affordable home ownership. Staff are reviewing the City's land inventory to determine additional viable opportunities to support this initiative. Next Steps. Staff plan to bring a report to Council on potential options in Q4 2024. Project Lead: Target Completion: 2026 Rosa Bustamante — Director of Planning and Housing Policy Affordable Rental & Co-op Housing Incentive Pilot Program Description: With the support of Kitchener's Housing Accelerator Fund, this project aims to establish a financial incentives pilot program to assist with the predevelopment costs of building new not-for-profit affordable rental and co-op housing units. Current Status: In April 2024, Council approved this grant program which formally IN PROGRESS launched in June 2024. The first 5 projects have been approved totalling 140 units, with $1.4M now allocated. Next Steps: There are currently 2 applications in progress. Staff are preparing additional external communications to ensure that there is strong uptake for the program. Project Lead: Target Completion: Oluseyi Ojurongbe — Project Manager Q3 2026 Conclusion of the pilot program Enabling 4 Units Description: In response to Council's motion at the October 16, 2023 Council meeting, staff are undertaking a review of zoning bylaw amendments that would enable up to four units on a lot which currently permit a single detached, semi-detached or street fronting townhouse dwelling for a Council decision in Q1 2024. Current Status: On March 25, 2024, Council approved an Official Plan amendment COMPLETE and Zoning By-law amendment to enable 4 units as -of -right city- wide which is now in effect. With the support of the Housing Accelerator Fund, a staff working team undertook an implementation strategy that included streamlining processes, and fall education and awareness campaign that included a Guide to Addition Dwelling Units coupled with a social media campaign, information webinars and a pop-up Planning and Building service counter at the Kitchener Farmers Market. The Guide and webinar are available on the City's website: „Iklitclrieirieir..ca/Alf'.)Us ............................................................................................................................ Next Steps: This project is now complete. Staff will continue to monitor building permit applications and seek ways to support uptake of these units through streamlining processes and public education and awareness. Project Lead: Completed in 03 2024 (including post -decision implementation) Katie Anderl — Project Manager Page 52 of 70 Strategic Land Acquisition and Supporting Infrastructure Description: This initiative will involve acquiring lands for the purposes of affordable housing development with a focus on lands within the major transit station areas and working with affordable housing provides to collaborate on the delivery of affordable housing and necessary related community infrastructure. Current Status: Staff are reviewing potential opportunity sites that would satisfy the IN PROGRESS criteria for affordable housing projects. Next Steps: Staff will bring a report to Council on potential land acquisition opportunities in Q4 2024. Project Lead: Target Completion: Q4 2024 Rosa Bustamante — Director of Planning and Housing Policy Climate Adaptation Plan Major Transit Station Area Planning Framework Review Description: This initiative includes the development of a climate adaptation plan that will be used in the short term to inform land use policy updates for the next Official Plan. Current Status: The project team has been established as part of the Official Plan IN PROGRESS project and consultants have been retained. The project team is project and consultants have been retained to help deliver this work. working closely with the retained consultants to complete this The project team will work closely throughout 2024 and 2025 to initiative. Next Steps: The project team will continue to work closely with the retained Target Completion: Q4 2025 consultants throughout 2024 and 2025 to complete this initiative. Project Lead: Target Completion: Q2 2026 Janine Oosterveld — Manager, Customer Experience and Project Management Housing Needs Assessment Major Transit Station Area Planning Framework Review Description: This initiative includes the preparation of a Housing Needs Assessment for the City of Kitchener which will be used to inform housing -related initiatives and land use policy updates for the next Official Plan. Current Status: The project team has been established as part of the Official Plan IN PROGRESS project and consultants have been retained to help deliver this work. Next Steps: The project team will work closely throughout 2024 and 2025 to Engage consultants for technical aspects of work to inform advance work on this initiative. Project Lead: Target Completion: Q4 2025 Lucas Van Meer -Mass — Senior Planner (Housing) WARD 1 — There are no Ward 1 specific projects at this time. WARD 2 — There are no Ward 2 specific projects at this time. WARD 3 Growing Together East Major Transit Station Area Planning Framework Review Description: Comprehensive review and update of land use, zoning, and urban design guidelines for the Block Line, Fairway, and Sportsworld Major Transit Station Areas. Current Status: Community engagement occurred throughout the summer. An RFQ IN PROGRESS process for consultant services on noise, transportation and market analysis is underway. Next Steps: Engage consultants for technical aspects of work to inform recommended land use and zoning. Project Lead: Target Completion: Q2 2025 Page 53 of 70 Growing Together East (Major Transit Station Area) Planning Framework Review Adam Clark — Senior Urban Designer (Architecture & Urban Form) WARD 4 — There are no Ward 1 specific projects at this time. WARD 5 — There are no Ward 2 specific projects at this time. WARD 6 — There are no Ward 1 specific projects at this time. WARD 7 — There are no Ward 2 specific projects at this time. WARD 8 — There are no Ward 1 specific projects at this time. WARDS 9 & 10 Growing Together West (Protected Major Transit Station Area) Planning Framework Review Description: Comprehensive review and update of land use, zoning, and urban design guidelines for the 7 Major Transit Station Areas west of the Conestoga Expressway. Current Status: Council approved Official Plan and Zoning By-law amendments for COMPLETE Growing Together West in March 2024. The Official Plan amendments have been approved by the Region of Waterloo The Zoning By-law amendment for the Protected Major Transit Station areas is under appeal. Next Steps: Implement the Region's modifications to Official Plan Amendment 49. A hearing to consider a motion to dismiss the appeal was held in September 2024 and staff are waiting a decision of the Ontario Land Tribunal. Project Lead: With Council's approval in March 2024, the City of Kitchener's portion Adam Clark — Senior Urban Designer of work on Growing Together West is complete. (Architecture & Urban Form) Inclusionary Zoning Description: Inclusionary Zoning can be used to require new, multi -unit housing developments to include affordable units. The Region, Kitchener, Waterloo, and Cambridge are coordinating their approach to implementing inclusionary zoning within MTSAs. A portion of this work is being funded through the Provincial Streamline Development Approvals Funding. This work is being coordinated with Growing Together. Current Status: A consultant was retained to update market analysis for Inclusionary COMPLETE Zoning. The Inclusionary Zoning Official Plan amendment has been approved by the Region. Next Steps: Staff will undertake an economic conditions assessment and report back to Council by Q4 2024. Project Lead: Target Completion: Q4 2024 Tim Done ani — Senior Planner Page 54 of 70 Attachment C — Significant Planning Projects (Q4 2024) CITY WIDE Comprehensive Zoning By-law Review Description: Review of Kitchener's Zoning By-law 85-1. Approved in phases with the latest phase (residential zones) being approved in 2022. Final phase includes specific properties previously deferred. Current Status: ONGOING Zoning updates since 2023 have focused on Major Transit Station Areas which is occurring through Growing Together. Next Steps: Final phase includes specific properties previously deferred and specific geographies. Some geographies require additional land use study which is occurring through Kitchener 2051 — Official Plan update. Project Lead: TBD Target Completion: 2025/26 High Performance Development Standards Description: Establish a harmonized high performance development standard for new development, partnering with municipalities in Waterloo Region, under the leadership of WR Community Energy. Current Status: ONGOING Initial engagement took place this spring and summer including staff, An update was provided to Council on the progress of Housing for All development industry, Climate Change and Environment Committee, action items in March 2022. Throughout 2024 the following was and the community to formally launch the project and inform the accomplished: discussion draft to be made available by the end of the year. Next Steps: Engagement on the discussion draft will occur early in 2025 to refine • Renewal of the Lived Expertise Working Group for an and development draft standards. Project Lead: Target Completion: 2025 Janine Oosterveld, Manager Customer Experience & Project Management Housing for All Implementation Description: Kitchener Housing for All Strategy was approved in 2020 and identifies actions for the City to address homelessness and housing issues in Kitchener. Current Status: ONGOING An update was provided to Council on the progress of Housing for All action items in March 2022. Throughout 2024 the following was accomplished: • Council approval of a Rental Replacement By-law • Renewal of the Lived Expertise Working Group for an additional 2 years • Initiation of a housing needs assessment • Council approval of city-wide permissions for lodging homes • The initiation of a Not -for -Profit Affordable Rental & Co-op Housing Incentive Program • Progress on developing partnerships with non-profit affordable housing providers through the strategic acquisition of lands for affordable housing projects with the support of the federal Housing Accelerator Fund HAF Next Steps: In 2025 the focus will be on advancing work on a housing needs assessment, that will work towards the Housing for All priority 7 of filling data gaps; and inform Housing for All 2.0, an inclusionary zoning assessment, and Kitchener 2051. 2025 will also see the development of Housing for All 2.0. Project Lead: Target Completion: 2025+ for Housing for All implementation. Lucas Van Meer -Maas Page 55 of 70 Partial Housing Accelerator Fund Initiative - Kitchener 2051 - New Official Plan Description: A comprehensive review of Kitchener's Official Plan to, among other things, align with changes in Provincial legislation, policies, and plans and the Region of Waterloo's Official Plan Amendment No. 6. Current Status: The following was accomplished through Kitchener 2051 in 2024 ONGOING . A community working group, that is guiding engagement for Kitchener 2051 was established. Monthly meetings commenced in September. • Early engagement with equity -deserving community leaders and key city staff was completed to inform the project's community engagement plan. • A public launch was held on October 5t" on Gaukel Block with over 1,200 people participating. • 5 teams of consultants were retained for technical studies and to facilitate community engagement. • Advancement of all technical studies occurred. Next Steps: In 2025 work will advance on: • Development of and engagement on different was Kitchener can accommodate its growth to 2051. • Development of and engagement on a draft new Official Plan. • Continued dialogue with Indigenous treaty partners. • Continuation of a speaker's series. Project Lead: Target Completion: 2026 Tim Donegani — Senior Planner John Zunic — Senior Planner Provincial legislation, policies, plans review Description: A significant number of Provincial legislative and policy changes have occurred throughout 2022 and 2023. The Planning Division has formally added this review to their workplan due to the significant time and resources that have been required to review changes and provide comments. Current Status: ONGOING Since the September 2024 quarterly report the following Provincial legislative and policy changes were posted and reviewed by planning and other staff: • Additional Residential Units — updates to regulations • Enabling the use of Pay -on -Demand Surety Bonds Project Lead: Target Completion: N/A Planning Management Team Tree Conservation Tools Review — Phase 2 Description: With Council's approval of Kitchener's tree canopy target in January 2022, Council directed staff to review existing tree conversation processes within the City to explore opportunities for strengthened measures. This work includes a review of Kitchener's Tree Bylaw and Tree Conservation Bylaw, tree planting requirements within the Development Manual, and Tree Management Policy. Current Status: Development of the work plan for phase 2 is complete and focuses ONGOING on improvements to both public and private tree management tools. An information report is being shared with Council during the December committee of council cycle. Community engagement on Kitchener's public tree by-law occurred throughout October and staff are reviewing the feedback. Next Steps: At this time it is anticipated that an updated public tree by-law will be presented to Council for their consideration in Q1 2025. Additionally, staff continue to review tree conservation tools that can and do apply to private properties. Community and stakeholder engagement is Page 56 of 70 I Tree Conservation Tools Review — Phase 2 1 expected to commence in early 2025 with updated private tree conservation tools (e.g., Tree Conservation By-law; Tree Management Policy) presented to Council for their consideration in Q3 2025. Project Lead: Target Completion: 2024/2025 Gaurang Khandelwal — Planner (Policy) Urban Design Manual Review — Part C Description: A comprehensive review of Kitchener's Urban Design Manual which has been occurring in phases. The last phase was approved in 2019. Final phase includes the urban design standards (Part C). Current Status: ONGOING Internal review of existing standards to understand opportunities for improvement. Next Steps: Draft updates to urban design standards and stakeholder Next Steps: engagement. Project Lead: Target Completion: 2024/2025 Gaurang Khandelwal — Planner Target Completion: Q1 2025 (Policy) WARD 1 — There are no Ward 1 specific projects at this time. WARD 2 — There are no Ward 2 specific projects at this time. WARD 3 Hidden Valley Secondary Plan Description: Development of updated land uses and Official Plan policies, including technical studies to inform them to implement the land use master plan approved by Council in 2019. Current Status: IN PROGRESS Technical studies have been finalized. Staff are working towards a recommended land use and zoning framework for Hidden Valley for Council's consideration. Next Steps: Statutory public meeting and Council consideration of land use and zoning changes. Project Lead: Target Completion: Q1 2025 Carrie Musselman — Senior Environmental Planner Housing Accelerator Fund Initiative - Growing Together East (Major Transit Station Area) Planning Framework Review Description: Comprehensive review and update of land use, zoning, and urban design guidelines for the Block Line, Fairway, and S ortsworld Major Transit Station Areas. Current Status: Consultant services have been retained for noise, transportation and TO COMMENCE Q2 2024 market analysis studies. Next Steps: Preliminary draft land use will be available for community and stakeholder engagement. Project Lead: Target Completion: Q2 2025 Adam Clark — Senior Urban Designer (Architecture & Urban Form) WARD 4 and WARD 5 Dundee Secondary Plan Description: Development of a new secondary plan (land use, transportation, natural heritage system, complete community) for lands in south-west Kitchener. The project will also fulfill the requirements for an environmental assessment and will recommend infrastructure to service the area. Page 57 of 70 Dundee Secondary Plan Planning Framework Review Current Status: ONGOING A public information center was held on September 12 to engage with Major Transit Station Areas west of the Conestoga Expressway. the community about the Dundee Secondary Plan. Next Steps: City staff will continue to work with landowners to advance work for Growing Together West in March 2024. The Official Plan lands within southwest Kitchener. A full community, stakeholder, and amendments have been approved by the Region of Waterloo The Indigenous engagement process is occurring. Project Leads: Target Completion: Q2/Q3 2025 Carrie Musselman — Senior Next Steps: Environmental Planner Gaurang Khandelwal — Planner (Policy) Project Lead: WARD 6 — There are no Ward 6 specific projects at this time. WARD 7 — There are no Ward 7 specific projects at this time. WARD 8 — There are no Ward 8 specific projects at this time. WARDS 9 & 10 Housing Accelerator Fund Initiative - Growing Together West (Protected Major Transit Station Area) Planning Framework Review Description: Comprehensive review and update of land use, zoning, and urban design guidelines for the 7 Major Transit Station Areas west of the Conestoga Expressway. Current Status: Council approved Official Plan and Zoning By-law amendments for ONGONG Growing Together West in March 2024. The Official Plan amendments have been approved by the Region of Waterloo The Zoning By-law amendment for the Protected Major Transit Station areas is under appeal. Next Steps: Implement the Region's modifications to Official Plan Amendment 49. A hearing to consider a motion to dismiss the appeal was held in September 2024. A decision is pending. Project Lead: With Council's approval in March 2024, city of Kitchener's portion of Adam Clark — Senior Urban Designer work on Growing Together West is complete. (Architecture & Urban Form) Housing Accelerator Fund Initiative - Inclusionary Zoning Description: Inclusionary Zoning can be used to require new, multi -unit housing developments to include affordable units. The Region, Kitchener, Waterloo, and Cambridge are coordinating their approach to implementing inclusionary zoning within MTSAs. A portion of this work is being funded through the Provincial Streamline Development Approvals Funding. This work is being coordinated with Growing Together. Current Status: Staff have retained NBLC to update a market assessment. A report ONGOING with recommended modifications to Kitchener's Inclusionary Zoning framework will be considered by Council in December. Next Steps: In continued coordination with the cities of Cambridge and Waterloo, and Region of Waterloo, an Inclusionary Zoning Assessment will be completed in 2025. Project Leads: Target Completion of Council report back — Q4 2024 Tim Donegani — Senior Planner Target Completion of Inclusionary Zoning Assessment - 2025 EI ssa Pom a - Planner District Energy Business Case Description: Pre -feasibility study endorsed by Council in 2020. Current phase of work includes conducting detailed technical and financial feasibility to connect new/existing public and private buildings in downtown to a system primarily powered by geothermal energy. Page 58 of 70 District Energy Business Case Current Status: Direction for the next phase of development of the district energy ONGOING business case will be considered in December. Next Steps: Pending Council's authorization of next steps, continued advancement of district energy will occur throughout 2025. Project Lead: Target Completion: Q4 2024 Tim Done ani — Senior Planner Page 59 of 70 Attachment D — Affordable Housing and Projects to Streamline Approvals (Q4 2024) 2024 Active Affordable Housing Development Status Address and Total Units Affordable Status City incentives applicant Units 83-97 Victoria St N, 44 44 Under construction Project manager The Working Centre Planning and building application fees waived 82 Wilson Ave, 123 32 (net Under construction Planning and building Region of Waterloo (existing) increase) application fees waived 49 Queen St N, 41 41 Under construction Planning and building Indwell Community application fees waived Homes and St. Peter's Lutheran Church 137 Queen St S, 57 21 Clearing conditions of Project manager St Paul's Lutheran site plan approval, Planning and building Church shoring permit issued, application fees waived Committee of Adjustment application approved 210 Duke St E, 100 40 Final site plan approval Project manager Knossos Housing issued, foundation Planning and building permit issued, full application fees waived building permit under review 47 Charles St. E 160 160 Clearing conditions of Project manager House of Friendship site plan approval Planning and building application fees waived; NFP Affordable Rental and Co-op Housing Incentive 15-105 Mooregate 378 378 Clearing conditions of Project manager Cres site plan approval Planning and building Region of Waterloo application fees waived 878 Frederick St 18 18 Clearing conditions of Planning and building KW Habilitation site plan approval, application fees waived; Services building permit under NFP Affordable Rental review and Co-op Housing Incentive 59 Franklin St N 55 22 Site Plan approval NFP Affordable Rental Eleven Housing Corp. granted, building permit and Co-op Housing pending Incentive Total New Units: 853 756 Page 60 of 70 Projects to Streamline Development Approvals Site Plan folder updates Description: Updating the file management software (AMANDA) for site plan applications to continue process improvements and prepare for the public portal which will allow applicants to submit applications, make payment and monitor progress. Current Status: Underway A multi -disciplinary team of development review staff are working with the technology project manager to identify workflow improvements to integrate into folder updates. Next Steps: The working team is testing folder updates. Once testing is complete, the updated folders will go live for use on site plan applications with updated procedures and training to support staff. 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