Loading...
HomeMy WebLinkAboutDev & Tech Svcs - 2004-12-06DEVELOPMENT & TECHNICAL SERVICES COMMITTEE MINUTES DECEMBER 67 2004 CITY OF KITCHENER The Development and Technical Services Committee met this date commencing at 7:25 p.m. Present: Chair Councillor C. Weylie, Mayor C. Zehr and Councillors J. Smola, B. Vrbanovic, J. Gazzola and G. Lorentz Staff: C. Ladd, Chief Administrative Officer G. Stewart, Manager of Development & Technical Services J. Willmer, Director of Planning Services R. Shamess, Director of Engineering Services D. Trask, Acting Fire Chief L. MacDonald, Director of Legal Services S. Turner, Director of Enforcement J. McBride, Director of Transportation Planning C. Bluhm, Planner R. Gosse, Committee Administrator DTS-04-186 DTS-04-190 THE LOFTS ON MANSION (120 MANSION STREET) REQUEST FOR FINANCIAL INCENTIVES DISCUSSION PAPER - ADAPTIVE REUSE INCENTIVE PROGRAM The Committee considered Development and Technical Services Department reports DTS-04- 186 and DTS-04-190, both dated November 30, 2004, regarding respectively, a request from Haastown Holdings Inc. for financial incentives to redevelop 120 Mansion Street and, a discussion paper on an Adaptive Reuse Incentive program. Mr. C. Bluhm advised that the City has received a request from Haastown Holdings Inc., for financial assistance with the redevelopment of the former Greb Shoe Company Factory on Mansion Street to a multi residential condominium. Mr. Bluhm explained that the company could see some financial incentives under the Heritage Tax Refund Program and lower new development charge rates which come into effect in 2005; however, considering the economic realities of constructing adaptive reuse units these may not be sufficient for the developer. He advised that staff is recommending financial assistance under the Heritage Tax Refund Program subject the company entering into a heritage easement and the deferral of the development charges for up to 24 months at an interest rate and subject to the company entering into a deferral agreement. In answer to questions raised by the Committee, Mr. J. Willmer advised that the amount required for this project as a refund under the Heritage Tax Program would be determined in 2005 and be budgeted for the 2006 fiscal year. He further advised that the amount of the development charge deferral is approximately $200,000-250,000 and security would come in the form of the authority to apply the outstanding amount as taxes on the property. Mr. C. Bluhm provided a review of Development and Technical Services Department report DTS-04-190 advising that through discussions with the developers of the Lofts on Mansion project it became apparent that the incentives currently offered by the City may not be sufficient to provide developers with the necessary return on investment to make such projects financially viable. He further advised that the recommendation contained in the report is for staff to investigate the possibilities of developing an Adaptive Reuse Incentive program such as waiving development charges, waiving of application and permit fees, modifications to the Heritage Tax Refund Program and tax incremental financing options. Mr. Paul Dehaas, President of Haastown Holdings Inc., attended advising that the adaptive reuse and renovation of older buildings such as that located at 120 Mansion Street are financially difficult to undertake and complete. For this reason, his company is looking for some financial incentives from the City in order to complete this project and maintain the heritage aspects of the existing building. Mr. Dehaas explained that although the deferral of the development charges for the 24 months would be of a benefit, the interest paid on the deferred amount reduces the benefit to the project and therefore he was requesting that the deferral take place without interest. Mr. Dehaas advised on the difficulties of restoring the site and the fact that no profits would be made until the entire project was completed and sold. He further advised on the benefits to the community with the restoration and conversion of the property and DEVELOPMENT & TECHNICAL SERVICES COMMITTEE MINUTES DECEMBER 67 2004 - 101- CITY OF KITCHENER 1. DTS-04-186 DTS-04-190 THE LOFTS ON MANSION (120 MANSION STREET) ADAPTIVE REUSE INCENTIVE PROGRAM (CONT'D) the possibility of increased property taxes to the surrounding residential area. Mr. Dehaas concluded his presentation requesting that the City consider further financial incentives to assist in completing the project at 120 Mansion Street. Mayor C. Zehr asked Mr. Dehaas if he understood the requirements of entering into a heritage easement. Mr. Dehaas responded that at a previous project in the City of Guelph the company had to enter into such an easement and he was aware of the requirements. Mayor Zehr asked if the recommendations contained in the staff report were sufficient and if not what would be the next step for the company. Mr. Dehaas responded that the recommendations from staff do not go far enough and further financial incentives are required in order to complete the project. He further advised that although the company is satisfied with the presale numbers from the project, without assurances of further financial incentives the company may be forced to sell the project, sell the property or demolish the existing building and undertake a new project. Mr. Dehaas added that he understood the process in this regard will take longer than desired and that although there are no guarantees if he were to have an indication from the Committee that they are willing to investigate the possibility of further financial incentives, this indication may be sufficient in order to keep the project moving forward. Councillor J. Smola suggested there are more sites throughout the City similar to 120 Mansion Street that would be a benefit to the community if they are restored rather than demolished and recommended the need to investigate an incentive program. Ms. L. MacDonald advised that in the past Council has offered financial incentives for non-profit groups and in order to establish a program that will benefit for-profit developers, such a program will need to be added to the community plan. She suggested that creating a program similar to the current Brownfield Remediation Program may be financially beneficial. Councillor Smola suggested that with respect to report DTS-04-186 dealing specifically with the project at 120 Mansion Street the Committee should take no action at this time to allow staff to develop an Adaptive Reuse Incentive program. On motion by Councillor J. Smola - it was resolved: "That no action be taken on the following recommendation contained in Development and Technical Services Department report DTS-04-186, dated November 30, 2004: 'Subject to Haastown Holdings Inc. fulfilling the eligibility requirements of the Heritage Tax Refund Program - which includes, but is not limited to, designation of the subject property under Part IV of the Ontario Heritage Act, and Haastown Holdings Inc. entering into a heritage conservation easement agreement with the City - that the City enter into an agreement with Haastown Holdings Inc. to provide a maximum of 10 yearly Heritage Tax Refunds to Haastown Holdings Inc rather than to future owners, for the adaptive reuse portion of the project only, and that the City allocate as part of its annual budget process, the appropriate funds to provide said Heritage Tax Refunds; and further, That payment of Development Charges for the 58-unit multiple dwelling development proposed by Haastown Holdings at 120 Mansion Street be deferred until 24 months after the first building permit is issued, subject to the owner entering into a deferral agreement to the satisfaction of the City Solicitor, and subject to the owner covenanting to the City, to pay interest per annum at a rate equal to the Canadian Imperial Bank of Commerce "Prime" rate plus 1%, when the Charge becomes due and payable to the City under said deferral agreement.'" Councillor Smola suggested that regarding report DTS-04-190 staff should bring forward any proposed Adaptive Reuse Incentive Program as soon as possible. On motion by Councillor J. Smola - it was resolved: DEVELOPMENT & TECHNICAL SERVICES COMMITTEE MINUTES DECEMBER 67 2004 - 102- CITY OF KITCHENER 1. DTS-04-186 DTS-04-190 THE LOFTS ON MANSION (120 MANSION STREET) ADAPTIVE REUSE INCENTIVE PROGRAM (CONT'D) "That staff be directed to investigate the possibilities of developing an Adaptive Reuse Incentive Program, to provide financial incentives above and beyond those which are currently in place." DTS-04-183 - SHARED AGENDA HOUSING STRATEGY AROUND CONESTOGA COLLEGE The Committee considered Development and Technical Services Department report DTS-04- 183 dated November 30, 2004, regarding a housing strategy around Conestoga College (Lower Boon). Mr. S. Turner advised that in 2002 a zoning by-law amendment and municipal plan amendment were approved to restrict duplexing in a defined area in Lower Boon. Since that time staff have implemented various initiatives to deal with the housing strategy around Conestoga College but there still remains some issues between renters and property owners. Mr. Turner further advised that staff were recommending that a review take place with various stakeholders to look at what has and hasn't worked as a result of the changes made in the Lower Boon area. On motion by Councillor J. Gazzola - it was resolved: "That staff review the impact of Zoning By-law Amendment 2002-161 regarding the changes made to the Lower Boon area with respect to housing, by; and, That staff identify what additional actions are available and may be required to address the concerns raised by area residents regarding the issues associated with off-campus student housing in the area; and further, That staff prepare a report outlining their findings and recommendations for consideration at a future Development and Technical Services Committee meeting." DTS-04-185 - DUKE & ONTARIO GARAGE POST TENSIONING TENDON REPAIRS The Committee considered Development and Technical Services Department report DTS-04- 185 dated November 30, 2004, regarding repairs to the Duke and Ontario parking garage. Mr. J. McBride advised that the Duke and Ontario parking garage was constructed in 1967 using a cast in place reinforced concrete structure with a combination of reinforcing steel and post tensioning tendons. He further advised that over the years a number of these tendons have broken and have been repaired; however, the frequency of repairs has been increasing. The firm of Reed Jones Christoffersen (RJC) was engaged in 2003 to determine the condition of the tendons and their life expectancy. A more extensive review was undertaken in 2004 and the result of the reviews showed that the tendons were in various states of distress ranging from 2.1% to 84%. Mr. McBride advised that staff are recommending that repairs to the parking garage commence in 2005 and he provided the Committee with several options as follows: Do nothing. The 10 year cost is estimated at $733,000 with no salvageable parking spaces at the end of the period. Stage replacement of post tensioning tendons. The 10 year cost is estimated at $5,744,000 for a fully restored garage that will continue to function for at least another 20 years. External structural steel sub frame. The cost would be approximately $4,028,000 if completed all at once and would provide a fully restored garage that will continually function for at least another 20 years. External post tensioning system. The cost is estimated at approximately $4,800,000 if completed all at once and would result in a fully restored garage that will last at least another 20 years. DEVELOPMENT & TECHNICAL SERVICES COMMITTEE MINUTES DECEMBER 67 2004 - 103- CITY OF KITCHENER 3. DTS-04-185 - DUKE & ONTARIO GARAGE POST TENSIONING TENDON REPAIRS (CONT'D) Complete replacement of parking slab. The cost is estimated at approximately $6,950,000 if completed all at once but the garage should remain free of any corrosion related issues for 25-30 years. In answer to questions raised by the Committee, Mr. McBride advised that options 2 and 4 were similar except that option 2 would be completed over a 10 year period as the repairs were required; whereas, option 4 would be completed all at once. He also advised that the current structure poses no risk to the users. Councillor J. Gazzola asked if option 3 could be completed over a 10 year period and therefore reducing costs. Mr. Philip Sarvinis of RJC advised that due to the rising costs of steel this option could double in costs if completed over a long term period. Councillor B. Vrbanovic inquired into the costs of replacing the structure and the life span of the new garage in comparison to the life span of the repaired garage. Mr. McBride advised that a new garage would cost approximately $9,000,000 and could last 60-80 years; whereas, the repaired garage would last at least 20 and most likely longer than that. Councillor Vrbanovic requested an analysis of the costs between replacing and repairing the parking garage. He also suggested that should the recommendation be tabled that it be supported in principle. On motion by Councillor J. Smola - it was resolved: "That the repairs to the post tensioning tendons in the Duke and Ontario Garage as outlined in the "2004 Additional Assessment of Post-Tensioning System Duke and Ontario Street Parking Garage" which was prepared by Read Jones Christoffersen; be supported in principle; and, That an external post tensioning system be considered the preferred repair option; and, That the repairs be staged over an eight year period starting in 2005; and further, That funds in the amount of $5,744,000 be referred to the 2005 Ten Year Capital Budget Review." 4. DTS-04-187 SHARED AGENDA -POLICY & STRATEGIES ON SCHOOL CLOSINGS The Committee considered Development and Technical Services Department report DTS-04- 187 dated November 30, 2004, regarding the item on the Shared Agenda with respect to policy and strategies on school closings. Mr. J. Willmer advised that staff have reviewed the policy and strategies on school closings and are reporting that any school closing is the decision of the respective school board. Mr. Willmer added that the City does have an opportunity to influence the decision making by continuing to promote residential reurbanization, participate in accommodation review processes and facilitate partnerships for the appropriate redevelopment of closed school sites. Mayor C. Zehr advised that he would arrange a meeting with the school boards to further discuss this issue. DTS-04-191 CITY OF KITCHENER EMERGENCY MANAGEMENT PROGRAM The Committee considered Development and Technical Services Department report DTS-04- 191 dated November 27, 2004, regarding the Emergency Management Program for the City. On motion by Councillor G. Lorentz- it was resolved: "That the Mayor and the Community Emergency Management Coordinator (CEMC) be authorized to sign a statement of program achievement to Emergency Management Ontario as set out in the Emergency Management Report #04-011, dated February 16, 2004." DEVELOPMENT & TECHNICAL SERVICES COMMITTEE MINUTES DECEMBER 67 2004 6. DTS-04-188 - 104- CITY OF KITCHENER EMERGENCY BACK-UP POWER FOR EVACUATION CENTRES The Committee considered Development and Technical Services Department report DTS-04- 188 dated November 29, 2004, regarding a recommendation to reallocate funds within the Capital Budget to upgrade the emergency generator capacity at Fire Headquarters. Mr. D. Trask advised that currently emergency generators are installed in the Kitchener Memorial Auditorium, Forest Heights and Breithaupt Community Centres with the remaining community centres scheduled for generator installation. In reviewing the Emergency Plan staff are now recommending that the funds would be better spent in larger centres for emergency power. Mr. Trask also advised that the current emergency backup power for Fire Headquarters is insufficient and therefore the recommendation is to reallocate the funds for the community centre generators to the Fire Headquarters upgrade. On motion by Councillor B. Vrbanovic - it was resolved: "That the present Capital Budget for the installation of emergency backup generators at community centres be reallocated to upgrade the emergency generator capacity at Fire Headquarters to the level required to efficiently operate all of the necessary equipment and services under emergency conditions." CRPS-04-221 - JOINT ENVIRONMENTAL COMMITTEE & ECONOMIC DEVELOPMENT ADVISORY COMMITTEE RECOMMENDATIONS - AMENDMENT TO THE MTO'S ENVIRONMENTAL ASSESSMENT REPORT (1997) - RECOMMENDED ROUTE (2002)- NEW HIGHWAY 7 The Committee considered Corporate Services Department report CRPS-04-221 dated November 24, 2004, regarding the joint Environmental Committee and Economic Development Advisory Committee recommendations with respect to the Ministry of Transportation's Assessment Report on the recommended route of the New Highway 7. Councillor B. Vrbanovic advised that the Environmental Committee and the Economic Development Advisory Committee met in joint session with representatives from the Ministry of Transportation to review the environmental assessment report on the recommended route for the new Highway 7 between Guelph and Kitchener. On motion by Councillor B. Vrbanovic - it was resolved: "That the City of Kitchener re-affirms its support for the proposed 'Recommended Route (2002)' alignment of a new Highway 7 between Kitchener and Guelph subject to the Ministry of Transportation Ontario continuing due diligence in ensuring that environmental issues, such as alternative modes of transportation, air quality and protection of natural areas, are addressed as the project moves forward." ADJOURNMENT On motion, the meeting adjourned at 8:56 p.m. R. Gosse, Deputy City Clerk