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HomeMy WebLinkAboutCouncil Agenda - 2025-02-10Council Meeting Agenda Monday, February 10, 2025, 7:00 p.m. Council Chambers - Hybrid 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 kitchener.ca. Please refer to the delegation section on the agenda below for registration in-person 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.* Pages 1. COMMENCEMENT The meeting will begin with a Land Acknowledgement given by the Mayor and the singing of "O Canada." 1.1 Commemoration of Black History Month - Hymn To Freedom 2. MINUTES FOR APPROVAL Minutes to be accepted as circulated to the Mayor and Councillors (regular meeting held January 20, 2025, and special meetings held January 20 and 27, 2025) - Councillor A. Owodunni 3. 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. C� 5 0 COMMUNICATIONS REFERRED TO FILE 4.1 Flag Request under Policy MUN-FAC-442 4.1.a Irish Real Life Festival - March 8 - 18, 2025 PRESENTATIONS 5.1 Award of Achievement 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 February 10, 2025, in order to participate electronically. 6.1 Winter Sidewalk Enforcement 6.1.a Nancy Ashley 6.2 Kitchener Indoor Recreation Facility - Gymnasium Funding Update, CSD -2025-044, listed as item 12.1.c 6.2.a Allister Scorgie 6.2.b Paul Paven, KW Predators Volleyball 6.2.c Mike Quigley, KW Youth Basketball Association 6.3 Official Plan Amendment Application OPA24/012/K/ES and Zoning By- law Amendment Application ZBA24/024/K/ES, 4611 King Street East, Imperial Oil Limited c/o LJM Developments, DSD -2025-025, and addendum report DSD -2025-053, listed as item 7.2.b 6.3.a Brandon Flewwelling, GSP Group; Liaquat Mian, LJM Developments; Andrew Steinsky, Paradigm Transportation Solutions Inc. 6.3.b Stephanie Brown 6.3.c Wendy Johnston 6.3.d Sharon Verley-Entz 6.3.e Elizabeth Weckman 6.4 Evictions due to Renovations Report Back Timing, DSD -2025-051, listed at item 8.1 6.4.a Zackery Smith 6.4.b Breanna Elaine Hill 6.4.c Brooklin Wallis Page 2 of 55 6.4.d Sidney MacDonald 6.4.e Lise Lindsay 6.4.f Martin Asling 6.4.g Mo Markham 7. REPORTS OF COMMITTEES 7.1 HERITAGE KITCHENER - FEBRUARY 4, 2025 7.1.a Heritage Permit Application HPA-2025-IV-003, 107 Courtland Avenue East, Replacement of 22 Windows and Front Doors on Front Fagade, DSD -2025-024 The pursuant to Section 33 of the Ontario Heritage Act, Heritage Permit Application HPA-2025-IV-003 requesting permission for: 1. The replacement of 22 windows on the front fagade with new window units, and; 2. The replacement of the main entrance doors on the front facade with new doors for the property municipally addressed as 107 Courtland Avenue East, BE APPROVED in accordance with the supplementary information submitted with the application, as outlined in Development Services Department report, DSD -2025-024. 7.2 PLANNING AND STRATEGIC INITIATIVES COMMITTEE - JANUARY 27, 2025 7.2.a Official Plan Amendment Application OPA24/005/K/CM, Zoning By- law Amendment Application ZBA24/008/K/CM, Hidden Valley Land Use Implementation Project, DSD -2024-292 That the following recommendation be deferred to the May 26, 2025, Council Meeting, or sooner to allow staff the opportunity to conduct a site visit of the subject properties and have further conversations with the applicant, and Ward Councillor related to land use, transportation, environment and source water protection concerns: That City Initiated Official Plan Amendment OPA24/005/K/CM, for the purpose of implementing recommendations contained within the Hidden Valley Land Use Implementation Project, including amendments to mapping and text amendments, be approved, in the form shown in the Official Plan Amendment attached to Development Services Department report, DSD - 2024 -292 as Attachment `A'; and, Page 3 of 55 That City Initiated Zoning By-law Amendment Application ZBA24/008/K/CM to amend Zoning By-law 2019-051, be approved in the form shown in the "Proposed By-law" attached to Report DSD -2024-292 as Attachment 'B'; and further, That the Hidden Valley Residential Community Plan (as approved June 14, 1990) and Hidden Valley Industrial Community Secondary Plan (as approved October 19, 1981) be repealed in their entirety. 7.2.b Official Plan Amendment Application OPA24/012/K/ES and Zoning 7 By-law Amendment Application ZBA24/024/K/ES, 4611 King Street East, Imperial Oil Limited c/o LJM Developments, DSD -2025-025 and addendum report DSD -2025-053 That the following recommendation be referred to the February 10. Council Meeting to allow staff the opportunity to have further conversations with the applicant, regional staff and the Ward Councillor regarding the building height, transportation impacts, site access, community amenities, and parking concerns: "That Official Plan Amendment Application OPA/24/012/K/ES for Imperial Oil Limited c/o LJM Developments, for the property municipally addressed as 4611 King Street East, requesting to add Policy 15.D.12.80 to Section 15.D.12 and to add Specific Policy Area 80 to Map 5 — Specific Policy Areas in the Official Plan to facilitate a mixed use development having 726 residential dwelling units and 1,892 square metres of commercial space within two towers atop a shared podium with building heights of 22 and 33 storeys and a Floor Space Ratio (FSR) of 7.9, be approved, in the form shown in the Official Plan Amendment attached to Development Services Department report, DSD -2025-025 as Attachments 'Al' and `A2', and further; That Zoning By-law Amendment Application ZBA24/024/K/ES for Imperial Oil Limited c/o LJM Developments be approved in the form shown in the `Proposed By-law', and `Map No. 1', attached to Report DSD -2024-025 as Attachments '131' and '132'. Note: An addendum report, Development Services Department report DSD -2025-053 has been included on the agenda this date, related to this matter. 8. UNFINISHED BUSINESS 8.1 Evictions due to Renovations Report Back Timing, DSD -2025-051 15 9. NEW BUSINESS Page 4 of 55 10. 11 12 13. 14 9.1 - MAYORAL BUSINESS AND UPDATES - MAYOR B. VRBANOVIC QUESTIONS AND ANSWERS BY-LAWS 11.1 1ST AND 2ND READING 11.1.a To further amend By-law No. 2010-190, being a by-law to prohibit unauthorized parking of motor vehicles on private property. 11.1.b To further amend By-law No. 88-171, being a by-law to designate private roadways as fire routes and to prohibit parking thereon. 11.1.c To further amend By-law No. 2008-117, being a by-law to authorize certain on -street and off-street parking of vehicles for use by persons with a disability, and the issuing of permits in respect thereof. 11.1.d To confirm all actions and proceedings of the Council for February 10. 2025. 11.2 LATE STARTER BY-LAWS TO BE ADDED TO THE AGENDA, PENDING APPROVAL OF THE REPORTS OF THE COMMITTEES 11.2.a Being a by-law to adopt Amendment No. 60 to the Official Plan - 4611 King Street East. 11.2.b Being a by-law to amend By-law No. 2019-051, as amended, known as the Zoning By-law for the City of Kitchener — Imperial Oil Limited c/o LJM Developments — 4611 King Street East. COMMITTEE OF THE WHOLE 12.1 ADMINISTRATIVE REPORTS 12.1.a 2025 Appointments to the Heritage Kitchener Committee, COR - 2025 -063 12.1.b Dangerous Dog Designation Appeal - Snider and Hillenaar, COR - 2025 -064 12.1.c Kitchener Indoor Recreation Facility - Gymnasium Funding Update, CSD -2025-044 REPORT OF THE COMMITTEE OF THE WHOLE BY-LAWS 14.1 3RD READING 14.1.a To further amend By-law No. 2010-190, being a by-law to prohibit unauthorized parking of motor vehicles on private property. (By-law 2025-017) 29 31 35 Page 5 of 55 14.1.b To further amend By-law No. 88-171, being a by-law to designate private roadways as fire routes and to prohibit parking thereon. (By-law 2025-018) 14.1.c To further amend By-law No. 2008-117, being a by-law to authorize certain on -street and off-street parking of vehicles for use by persons with a disability, and the issuing of permits in respect thereof. (By-law 2025-019) 14.1.d To confirm all actions and proceedings of the Council for February 10. 2025. (By-law 2025-022) 14.2 LATE STARTER BY-LAWS TO BE ADDED TO THE AGENDA, PENDING APPROVAL OF THE REPORTS OF THE COMMITTEES 14.2.a Being a by-law to adopt Amendment No. 60 to the Official Plan - 4611 King Street East. (By-law 2025-020) 14.2.b Being a by-law to amend By-law No. 2019-051, as amended, known as the Zoning By-law for the City of Kitchener — Imperial Oil Limited c/o LJM Developments — 4611 King Street East. (By-law 2025-021) 15. ADJOURNMENT Page 6 of 55 Staff Report l IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Choose a meeting type DATE OF MEETING: February 10, 2025 SUBMITTED BY: Garett Stevenson, Director of Development and Housing Approvals, 519-783-8922 PREPARED BY: Eric Schneider, Senior Planner, 519-783-8918 WARD(S) INVOLVED: Ward 3 DATE OF REPORT: REPORT NO. February 7, 2025 DSD -2025-053 SUBJECT: Addendum Report Official Plan Amendment Application OPA24/012/K/ES Zoning By-law Amendment Application ZBA24/024/K/ES 4611 King Street East Imperial Oil Limited c/o LJM Developments RECOMMENDATION: That Official Plan Amendment Application OPA/24/012/K/ES for Imperial Oil Limited c/o LJM Developments requesting to add Policy 15.D.12.80 to Section 15.D.12 and to add Specific Policy Area 80 to Map 5 — Specific Policy Areas in the Official Plan to facilitate a mixed use development having 586 residential dwelling units and 1,892 square metres of commercial space within two towers atop a shared podium with building heights of 18 and 26 storeys and a Floor Space Ratio (FSR) of 6.7, be approved, in the form shown in the Official Plan Amendment attached to Report DSD - 2025 -053 as Attachments 'Al' and `A2', and, That Zoning By-law Amendment Application ZBA24/024/K/ES for Imperial Oil Limited c/o LJM Developments be approved in the form shown in the `Proposed By-law', and `Map No. 1', attached to Report DSD -2024-053 as Attachments `131' and `132', and further, That pursuant to Section 34(17) of the Planning Act, R.S.O. 1990, c. P. 13, as amended, further notice is not required to be given in respect to Zoning By-law Amendment ZBA24/024/K/ES. REPORT HIGHLIGHTS: • The purpose of this report is to provide Council with updated `Proposed By-law' for the Official Plan Amendment and Zoning By-law Amendment Applications that were *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 7 of 55 presented to the Planning and Strategic Initiatives Committee on January 27, 2025 in report DSD -2025-025. This report supports the delivery of core services. BACKGROUND: On January 27th, 2025 Staff presented Official Plan Amendment Application OPA/24/012/K/ES and Zoning By-law Amendment Application ZBA24/024/K/ES for the subject lands located at 4611 King Street East in report DSD -2025-025 to the Planning and Strategic Initiatives Committee. Committee referred the decision to the Council meeting February 10th, 2025 and directed Staff to address comments and ideas raised by Council and the community. City Planning staff worked with City and Regional transportation staff, the applicant, Ward Councillor Jason Deneault and a community delegate to respond and address concerns. The applicant has presented a revised concept that includes reducing the proposed height and density of the proposal and increases the proposed parking rate. REPORT: Staff facilitated a meeting between City Transportation staff, Region of Waterloo Transportation staff, and a community delegate about traffic concerns to discuss the Transportation Impact Studies completed for the application. Topics discussed included access, U-turns, pedestrian movements, active transportation infrastructure, etc. Staff facilitated a meeting between the applicant and the Ward Councillor Jason Deneault, in which the applicant presented a revised plan that reduces the density on site. The changes in density and the resultant changes to the by-law requests are detailed below. Tower Heights Across both towers, a total of 11 storeys have been removed. Previous: King Street Tower 33 Storeys Rear Tower 22 storeys Changed to: King Street Tower 26 Storeys Rear Tower 18 storeys Unit Reduction 143 units have been removed. Previous: 726 units Changed to: 583 units Floor Space Ratio (FSR) Reduction Reduction of 11 storeys results in a decrease in FSR. Previous: 7.9 Page 8 of 55 Changed to: 6.7 Parking Rate Total proposed provided parking remains at 493 parking spaces, but with the reduction in units this results in an increase in the parking rate per unit. Previous: 0.57 parking spaces per dwelling unit Changed to: 0.75 parking spaces per dwelling unit Non -Residential Floor Area Non -Residential floor area percentage increases as a result of 11 less floors of residential floor space. Previous: 3% Changed to: 4% Holding Provision 99H, Sanitary Servicing Staff have made minor changes to wording of the Holding Provision to include the City of Kitchener along with the City of Cambridge providing clearance for acceptance of proposed sanitary flows and sanitary servicing to ensure collaboration for cross border servicing. STRATEGIC PLAN ALIGNMENT: The recommendation of this report supports the achievement of the City's strategic vision through the delivery of core service. 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 — Staff circulated the revised concept details to residents who participated in previous meetings or provided comments on the application. PREVIOUS REPORTS/AUTHORITIES: • DSD -2025-025 - Official Plan Amendment OPA24/012/K/ES and Zoning By-law Amendment Application ZBA24/024/K/ES 4611 King Street East REVIEWED BY: Malone -Wright, Tina - Manager of Development Approvals, Development and Housing Approvals Division APPROVED BY: Readman, Justin - General Manager, Development Services Page 9 of 55 ATTACHMENTS: Attachment A — Revised Proposed Zoning By-law Page 10 of 55 DSD -2025-053 Attachment "A" PROPOSED BY — LAW , 2025 BY-LAW NUMBER OF THE CORPORATION OF THE CITY OF KITCHENER (Being a by-law to amend By-law No. 2019-051, as amended, known as the Zoning By-law for the City of Kitchener — Imperial Oil Limited c/o LJM Developments — 4611 King Street East) WHEREAS it is deemed expedient to amend Zoning By-law 2019-051 for the lands specified above; NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as follows: Zoning Grid Schedule Number 296 of Appendix "A" to By-law 2019-051 is hereby amended by changing the zoning applicable to the parcel of land specified and illustrated as Area 1 on Map No. 1, in the City of Kitchener, attached hereto, from Arterial Commercial Zone (COM -3) with Site Specific Provision (88) to Mixed Use Three Zone (MIX -3) with Site Specific Provision (417) and Holding Provisions (97H), (98H), (99H), and (100H). 2. Zoning Grid Schedule Number 296 of Appendix "A" to By-law 2019-051 is hereby further amended by incorporating additional zone boundaries as shown on Map No. 1 attached hereto. 3. Section 19 of By-law 2019-051 is hereby amended by adding Section 19 (417) thereto as follows: "417. Notwithstanding Sections 5.6 and 8.3 of this By-law, for the lands zoned MIX -3 and shown as being affected by this subsection on Zoning Grid Schedule Number 296 of Appendix "A", the following special regulations shall apply: Page 11 of 55 DSD -2025-053 Attachment "A" i) The maximum Floor Space Ratio shall be 6.7; ii) The maximum Building Height shall be 91 metres and 26 storeys for the portion of the lands within 32 metres of King Street East; iii) The maximum Building Height shall be 68 metres and 18 storeys for the portion of the lands greater than 32 metres from King Street East; iv) The minimum Interior Side Yard shall be 3 metres; v) The minimum percent of non-residential gross floor area shall be 4%; vi) The maximum number of storeys in the base of a tall building shall be 7 storeys; vii) The minimum residential parking rate shall be 0.75 parking spaces per Dwelling Unit,- viii) nit, viii) Geothermal Wells are prohibited on site. A geothermal well is defined as a vertical well, borehole or pipe installation used for geothermal systems, ground -source heat pump systems, geo- exchange systems or earth energy systems for heating or cooling; including open -loop and closed-loop vertical borehole systems. A geothermal well does not include a horizontal system where construction or excavation occurs to depths less than five meters unless the protective geologic layers overlaying a vulnerable aquifer have been removed through construction or excavation." 4. Section 20 of By-law 2019-051 is hereby amended by adding Section 20 (97H) thereto as follows: "97H. Notwithstanding Section 8 of this By-law within the lands zoned Mixed Use Three Zone (MIX -3) and shown as being affected by this subsection on Zoning Grid Schedule Number 296 of Appendix "A", no residential uses shall be permitted until such time as the following condition has been met and this holding provision has been removed by by-law: a) A Record of Site Condition is submitted and approved to the satisfaction of the Ministry of the Environment, Conservation and Page 12 of 55 DSD -2025-053 Attachment "A" Parks or any successor Ministry ("MECP"). This Holding Provision shall not be removed until the City is in receipt of a letter from MECP, to the satisfaction of the City's Director of Development and Housing Approvals, advising that a Record of Site Condition has been completed and filed to the satisfaction of the MECP." 5. Section 20 of By-law 2019-051 is hereby amended by adding Section 20 (98H) thereto as follows: "98H. Notwithstanding Section 8 of this By-law within the lands zoned Mixed Use Three Zone (MIX -3) and shown as being affected by this subsection on Zoning Grid Schedule Number 296 of Appendix "A", no residential uses shall be permitted until such time as the following condition has been met and this holding provision has been removed by by-law: a) A detailed transportation (road) and stationary noise study has been completed and implementation measures recommended to the satisfaction of the City." 6. Section 20 of By-law 2019-051 is hereby amended by adding Section 20 (99H) thereto as follows: "99H. Notwithstanding Section 8 of this By-law within the lands zoned Mixed Use Three Zone (MIX -3) and shown as being affected by this subsection on Zoning Grid Schedule Number 296 of Appendix "A", no residential uses shall be permitted until such time as the following condition has been met and this holding provision has been removed by by-law: a) The City has received a letter from the Corporation of the City of Cambridge's Manager of Development Engineering and the City of Kitchener's Director of Engineering stating that the proposed sanitary flows are acceptable, to the satisfaction of the City's Director of Housing and Development Approvals." 7. Section 20 of By-law 2019-051 is hereby amended by adding Section 20 (100H) thereto as follows: "100H. Notwithstanding Section 8 of this By-law within the lands zoned Mixed Use Three Zone (MIX -3) and shown as being affected by this subsection on Zoning Grid Schedule Number 296 of Appendix "A", no Page 13 of 55 DSD -2025-053 Attachment "A" residential uses shall be permitted until such time as the following condition has been met and this holding provision has been removed by by-law: a) The City has received a letter from the Manager of Corridor Planning, at the Region stating that the stormwater management flows are acceptable, to the satisfaction of the City's Director of Housing and Development Approvals." 8. This By-law shall become effective only if Official Plan Amendment No. _, 4611 King Street East 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 . 2025. Mayor Clerk Page 14 of 55 Staff Report Development Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: February 10, 2025 SUBMITTED BY: Rosa Bustamante, Director Planning and Housing Policy/City Planner, 519-783-8929 PREPARED BY: Natalie Goss, Manager Policy & Research, 519-783-8933 WARD(S) INVOLVED: ALL DATE OF REPORT: February 6, 2025 REPORT NO.: DSD -2025-051 SUBJECT: Evictions due to renovations — report back timing RECOMMENDATION: For information. REPORT HIGHLIGHTS: • The purpose of this report is to outline options for the timing of a report to Council on "renoviction" by-laws in other Ontario municipalities. • Staff continue to recommend a report back to Council in June 2025 so that it is informed by a review of the implementation of other approved "renoviction" by-laws in Ontario, balancing both availability of information to inform the analysis and the opportunity costs of resources that are already focused on corporate priority projects. • Should Council advance Options 1, 2, or 3 as outlined in this report, there may be capital budget implications should the City miss key milestones of the Canada Community - Building Fund and Housing Accelerator Fund. Additionally, there may be potential cost increases from consultants (e.g., Kitchener 2051) due to project delays on existing consulting contracts. • This report has been posted to the City's website with the agenda in advance of the Council / Committee meeting. • This report supports the delivery of core services. BACKGROUND: In 2024, Hamilton, London, and Toronto passed by-laws requiring that a license be obtained by a qualified contractor who intends to conduct renovation work on a residential unit where the tenant has been served an N13 (notice to vacate the unit), otherwise known as "renoviction" by-laws. The Province of Ontario legislated similar requirements through the passing of Bill 97 Helping Homebuyers, Protecting Tenants Act, 2023; however, most schedules of this Act, including Schedule 7, related to "renovictions", have not yet been proclaimed (i.e., implemented). *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 15 of 55 In June 2024, as part of Council's decision to approve Kitchener's Rental Replacement By- law, Council directed that staff report back in June 2025 on the "renoviction" by-laws being passed in Ontario. Staff have started to review these by-laws and have reached out to staff in the other municipalities for initial conversations. Only one jurisdiction, Hamilton, has had their by-law come into effect, on January 1, 2025. On January 20, 2025, Council passed the following resolution: "That staff be directed to provide additional information at the February 10, 2025 Special Council meeting, on whether staff would be able to expedite a previously requested follow up report, discussed at the June 24, 2024 Council meeting, which would include a review of other "Reno viction"By-laws that have already been approved thus far, and whether the report could be brought forward for consideration prior to June 2025. " This report outlines timing options for reporting to Council on "renoviction" by-laws in other Ontario municipalities. REPORT: As a part of Council's approval of Kitchener's Rental Replacement By-law in June 2024, Council passed the following resolution related to "renoviction" By-laws: "...That staff be directed to report back in June 2025 reviewing impacts of the (Rental Replacement) By-law thus far and to provide further updates on any other "renovictions" By- laws within Ontario." The timing of this deliverable is coordinated with the 1 -year report back on the challenges, opportunities, and areas for improvement that staff have experienced through the implementation of Kitchener's Rental Replacement By-law. The report back to Council on these topics is a collaborative effort with staff from Planning and Housing Policy, Building, Legislated Services (Licensing), Legal Services, and By-law Enforcement. At this time, staff anticipate that the scope of a June 2025 report back on "renoviction" by- laws will include and be informed by: • Additional conversations with staff from the cities of Hamilton, London, and Toronto — the only jurisdictions that have passed such by-laws. • Early learning from other jurisdictions as: o Hamilton will be the only jurisdiction to implement their bylaw by June 2025. o Toronto's implementation will only begin in July 2025. o London's final approval of implementation is pending budgetary review and may not occur in 2025. • An understanding of the framework of the by-laws (i.e., licensing approach). • More knowledge about how municipalities are implementing and enforcing their by- laws, including any challenges. • An understanding of how these by-laws work with the requirements of the Ontario Residential Tenancies Act. • Whether there have been any legal challenges to the by-laws. • Understanding any tenant experiences with the implementation of the by-laws including any privacy concerns, positive impacts, and any reactions to the interface between the by-law processes and the Landlord Tenant Board processes. Page 16 of 55 • The number and expertise of staff dedicated to the development of, implementation, and enforcement of the by-laws and the associated costs. • How the municipalities are or expect to recover costs of implementation and enforcement. • Any updates to the provincial legislative environment including the progress of ongoing advocacy to implement Bill 97, Schedule 7 provisions and expand Landlord Tenant Board capacity. If this implementation occurs, it is expected that this will address the issue through the provincial jurisdiction, where this currently resides by virtue of the Residential Tenancies Act. Reporting back earlier than the June 2025 presents challenges and limitations as follows: Informed decision making — Although Hamilton, London, and Toronto have all passed "renoviction" by-laws, only Hamilton's is in effect. Toronto's by-law will be in effect in July 2025 and London's effective date is dependent on budget. Staff will be limited in their ability to provide information on the challenges, opportunities and areas for improvement learned from these municipalities the earlier a report back to Council occurs. Like the approach taken to develop Kitchener's Rental Replacement By-law, staff learned from other municipalities on challenges and areas for improvement in the wording of, implementation and enforcement of their by-laws. This enabled Kitchener to develop an improved Rental Replacement By-law. Timing of a "renoviction by-law" - Should Council ultimately direct staff to proceed with preparing a "renoviction" by-law, there continues to be implementation and resourcing implications (i.e., budget and staff). Even with an earlier reporting back on what staff learn from Hamilton, London, and Toronto's experiences, the critical path of implementation would not be fast tracked (i.e., earliest effective date of a by-law would be January 2026). This is due, in part, to the additional staff resources that are anticipated to be necessary for implementation and enforcement of a "renoviction" by-law which will need to be considered through a future budget process (i.e., 2026 budget deliberations). Corporate work plan priorities - Staff have included a report back on "renovictions" to Council in June 2025 in their work plan. It is expected that this report back will require on average 1 day of dedicated core project staff time per week until June 2025 totaling approximately 150-200 hours. Reprioritizing this report back would require dedicating this same amount of time in a condensed timeframe causing significant delays to several corporate priority projects that are already being resourced including some in collaboration with other area municipalities. Reprioritization will also further frustrate already constrained staffing resources in certain divisions (i.e., legal services) and will frustrate the timely issuance of complex building permits. Corporate work plan items that will see delays include: • Kitchener 2051/New Official Plan (Strategic Plan priority project). • Housing Needs Assessment (Strategic Plan priority and Housing Accelerator Fund project). • Climate Adaptation Plan (Strategic Plan priority and Housing Accelerator Fund project). • Growing Together East (Housing Accelerator Fund project). • Strategic land acquisition and existing city -owned lands for affordable housing (Housing Accelerator Fund project). • Lodging House By-law implementation and Short -Term Rental By-law. • Amendments to the Business Licensing By-law to streamline business processes. Page 17 of 55 Options for reporting back Four report back timing options are outlined for Council's consideration. Option 1 — March committee of Council. Reports are due for review no later than February 28th providing approximately 3 weeks to accomplish the scope of work outlined above. There would be limited to no new information available. This option is not recommended. Option 2 — April committee of Council. Reports are due for review no later than March 27th providing approximately 5 weeks to accomplish the scope of work outlined above. Although this option provides 2 additional weeks to accomplish this review, there will still be a significant delay in the work outlined above. This option is not recommended. Option 3 — May committee of Council. Reports are due for review no later than April 24th providing approximately 9 weeks to accomplish the scope of work outlined above. A report to Council during this timeframe is only 3 weeks earlier than the currently planned June 2025 report back Council has already directed. Given the significant workload implications outlined above, this option is not recommended. Option 4 — Continue to report back during the June committee of Council. Staff have already accommodated this report back timing into their work plans for 2025 and work already commenced on this report back alongside the other ongoing work outlined above. Hamilton's by-law will have been in effect for approximately 5 months increasing the likelihood of being able to understand opportunities, challenges, and legal challenges. This option will also allow for the work plan items outlined above to be maintained and deliverables accomplished within anticipated timeframes. This option continues to be recommended by staff. None of the options outlined above enable the implementation of a "renoviction" by-law in 2025 should council ultimately direct one to be prepared. More commentary on this is provided in the "timing of a "renoviction" by-law" section of this report. Given the council resolution from June 24, 2024 (see above), should Council support Option 1, 2 or 3, in accordance with section 7.15 of the City's Procedure By-law (Chapter 25 of the Municipal Code), this would require a Motion to Reconsider the previous direction to report back by June 2025. The Motion to Reconsider must be passed by a two-thirds vote, prior to the consideration of a motion to support Option 1, 2 or 3. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget — Should Council advance Options 1, 2, or 3 outlined in this report, there may be capital budget implications should the City miss key milestones of the Canada Community -Building Fund and Housing Accelerator Fund. Additionally, there may be potential cost increases from consultants (e.g., Kitchener 2051) due to project delays on existing consulting contracts. Page 18 of 55 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. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. REVIEWED BY: Kristin VanDerGeld, Manager, Licensing Katherine Hughes, Assistant City Solicitor Lesley MacDonald, Director, Legal Services/City Solicitor Gloria MacNeil, Director, Bylaw Enforcement Amanda Fusco, Director, Legislated Services/City Clerk Mike Seiling, Director Building/Chief Building Official Shannon Weber, Chief of Staff Sloane Sweazey, Senior Policy Advisor APPROVED BY: Justin Readman, General Manager, Development Services Victoria Raab, General Manager, Corporate Services Michael May, General Manager, Community Services/Deputy CAO Dan Chapman, CAO Page 19 of 55 February 10th, 2025 Special Council Meeting 0 t t a W a Re: Evictions due to Renovations - By-law Request ACORN Dear City Councillors, Please see below Waterloo Region ACORN's submission regarding the urgent need for the City to develop a renoviction bylaw similar to Hamilton and Toronto, despite staff's opposing recommendations. What is ACORN? ACORN is a grassroots tenant and community organization with a membership of low and moderate income tenants in both Waterloo Region and across Canada. We started the Waterloo Region chapter in 2023, we have hundreds of members in Kitchener and over 180,000 members across Canada. Background Since before we even officially launched the chapter, Waterloo Region ACORN has been advocating for strong municipal policies to protect tenants from mass displacement and to save affordable housing. Over the past three years, our members in the region have led organizing in their buildings to defend their homes from predatory corporate landlords who are looking to evict tenants in rent controlled units so that they can raise rents. ACORN members have organized tirelessly through building and neighbourhood tenant meetings, actions, town halls, and more to ensure its members and tenants region -wide know their rights and how to work with their neighbours to defend their homes. In January 2023, ACORN was pleased to see council pass a directive to city staff to report back with a review of rental replacement bylaws for when developers demolish affordable rental housing. We were also pleased to see councillors discuss the potential for applying similar regulations to stop bad -faith evictions where landlords evict tenants from affordable units under the guise of renovations. City staff have since paused this latter work because of potential interference from the Province. The cities of Toronto, Hamilton, Mississauoa and Bram ton have already passed (or are about to pass) municipal protections for tenants that prevent displacement and the loss of affordable housing through renovictions. If councillors follow staff's recommendation to take no action locally, Kitchener will be left behind even small towns like Kowartha lakes, who are in the process of developing a renoviction bylaw as well. Meanwhile, hundreds of tenants in Kitchener are experiencing renoviction right now. Inaction puts all of their housing at risk. ACORN members in Kitchener do not want to see our city continue to lag behind others as our housing crisis only worsens. Page 20 of 55 What are Renovictions? Renoviction is the practice and tactic used by landlords to evict or force out tenants under the guise of major renovation. The goal of renoviction is not to repair or upgrade the unit. The goal is to displace the existing tenant and increase the rent for the next tenant. Displaced tenants will never find their affordable rents again. Renoviction shatters the lives of families, breaks long -held community bonds, drives up rents in the neighborhood, increases homelessness and strain on social services, incentivizes landlords to allow their buildings to fall into disrepair and destroys the existing stock of affordable housing. Key Statistics • Kitchener is losing 39 affordable housing units for every 1 that is built • Accordine� to CMI IC, the share of units with rents costing no more than 30% of low income households' income in Waterloo Region is zero. • Average rent in Kitchener for a 1 bedroom apartment is $1,866. A 2 bedroom is $2,222. • Based on Landlord Tenant Board data obtained by ACORN, Kitchener is ranked #6 in the province for the most N13 evictions (eviction notices for renovations, conversions and demolitions) issued to tenants. It is important to note that most N13s are never filed at the LTB as tenants are often misled about their rights, harassed or pressured into taking buy-outs. Therefore. N13 data is a gross underestimate of the scale of the actual problem. Typical Renoviction Timeline/Tactics: • Change in building ownership (not always but often a sign of changes coming). • Notice to tenants of coming renovations and major inconveniences. • N13 eviction form issued to tenants (sometimes in "batches", which makes it more difficult for tenants to find community with their neighbors) • Offer of low buyout offers (also known as `cash -for -keys') to pick on tenants that are vulnerable, low income, or do not know their rights. • Discontinuing repairs and building maintenance (make life more difficult and make buyout offers more enticing. • Increases in fees or implementation of new fees for amenities that were previously included in rent or cost a small fee prior (ACORN members have experienced sudden parking fees as high as $250 per month - with the threat of towing if unpaid; increases in laundry fees by as high as 200%, and sudden fees for owning everyday appliances like air purifiers, air conditioners, and mini refrigerators). • Shutting down of amenities such as storage lockers, underground parking, access to common spaces, etc. • Repeated vital services (water, power, heat, etc) shut downs with little to no notice. • Filing at the Landlord and Tenant Board. Page 21 of 55 Landlords will use a combination of these tactics to ensure that tenants move out before the application reaches the LTB. Since the goal is to not have the tenant return to the unit, having a tenant accept a buyout offer to move out and waive their right to return is the quickest and easiest path to turning over the unit. For tenants that want to keep their affordable homes, no amount of money is worth accepting. Low income tenants cannot afford to re-enter the rental market. Tenants on social assistance (ODSP or OW) especially cannot afford buyouts as large lump sum payouts may make them ineligible for benefits, or see a dollar -for -dollar reduction in benefit payments, thereby costing them more money. Problems with Existing Rules Here is an overview of the existing rules regarding evictions for major renovations: • In Ontario, landlords have the ability to secure vacancy of a unit for renovations by issuing a N13 to the tenants. • If filed at the LTB, the landlord must demonstrate that the eviction is in good faith. • Landlords are required to compensate tenants the equivalent of 3 months rent. • Tenants have the right of first refusal after renovations which means that they have the right to return to the same unit at the same rent. • Tenants can also pursue fines if the landlord rents out the unit to another tenant once the renovations are complete. Despite these provincial regulations, it is very difficult for low income tenants to exercise their right of first refusal and maintain their affordable housing because of the following reasons: • The N13 process effectively allows landlords to evict tenants when vacant possession is not actually necessary to do repairs, creating a semi -legal method for landlords to evict tenants to raise rents. • Difficulty to find short term lease at the same rent while renovations take place (the reality is tenants will not be able to find similar rents when they re-enter the market). ACORN most commonly sees renovation timelines of 6-12 months - current compensation requirements will not come close to covering this period. • Landlords are under no obligation to finish the renovations in a certain amount of time. • Tenants aren't given adequate notice of units being ready for reoccupation that would allow them enough time to legally vacate their temporary accommodation so they can move back into their units following renovation. • Tenant support organizations and cities in Ontario (except those that have recently passed bylaws) have no way of finding out which tenants are being renovicted unless tenants reach out to them; if tenants do reach out, it is often done too late to provide effective support and prevent predatory eviction. • LTB adjudicators that receive N13s that claim landlords have gotten all necessary approvals generally do not question whether they have actually received these approvals and award eviction orders even when the eviction is unjustified. • Renovations to a unit can function to make housing unlivable for other tenants, and can be used as a tool to encourage other tenants to move out voluntarily. Page 22 of 55 • The Residential Tenancies Act doesn't establish a clear process that enables tenants to re -occupy their rental units at the same terms as their original rental agreement once renovations are complete. • Challenge of staying on top of the landlord's renovations to ensure the Right of First Refusal. • Financial costs of moving twice (moving out, moving back, potential storage costs, paying first & last month's rent somewhere else) which falls solely on the tenants to pay. • If the Right of First Refusal is revoked or lost by the landlord, tenants have no legal ability to get their unit back. They're then stuck paying the new inflated rent elsewhere. • The landlord can be fined and the tenant could be awarded compensation, however, this almost never happens. The LTB has only issued 13 fines for bad faith evictions since 2020 and only 4 landlords have paid their finesa Kitchener Needs Renoviction Protections The primary value of a renoviction bylaw is that the burden of compliance (fees and administrative requirements) is great enough that it will prevent some landlords from serving tenants N13s in bad faith or if they do proceed with temporary eviction for renovations that tenants are supported to exercise their first right of refusal. Key elements of a renoviction bylaw: • The landlord is required to file an application with the City for a renovation licence within seven days of issuing an N13 notice to a tenant. • The application for a renovation licence must include supporting documentation including a building permit, a report from a qualified person (engineer) that states that vacant possession is required and a copy of the N13 notice. • The landlord must provide either a temporary alternative accommodation or compensation to the tenant for the duration of the renovation. • This includes support for moving costs when tenants move to their temporary accommodations and when they return to their current unit after renovations. • Any temporary alternative accommodation must be comparable to the tenant's current unit during the period of repair. • Compensation is determined to be in an amount equal to the difference between the rent rate currently paid by the tenant for the unit being renovated and the Average Asking Rent of a Rental Housing Unit with the same number of bedrooms as the tenant's current unit. • The landlord shall provide details to the City of the arrangement that has been made, prior to receiving a renovation licence. • A landlord may be subject to enforcement for failing to comply with the provisions of the by-law including escalating fines. Response to Council and Staff Concerns The City of Kitchener has provided very little public information explicitly outlining the City's stance on renoviction bylaws, other than a single city staff report from June 2024 where City Page 23 of 55 Staff recommended against pursuing a renoviction bylaw. Below is ACORN's response to the arguments laid out in the June 2024 staff report as well as arguments raised by councillors in council meetings and public communications. 1. The Province's Bill 97 already addresses bad faith evictions The Province announced Bill 97 almost 2 years ago but it still has not taken effect because it still requires supporting regulations and proclamations from the Lieutenant Governor. In addition, Bill 97 doesn't include requirements for temporary accommodations, rent gap payments, moving cost assistance and most other elements that a municipal bylaw would cover. 2. Claims iurisdictional issues and that the Hamilton and Toronto bvlaws are untested. Multiple legal clinics and law firms (including ACTO and Raven Lawl have written memos explaining how municipal renoviction bylaws would complement, not contradict, provincial regulations. While Hamilton and Toronto bylaws are new, they are based on the successful policy from New Westminster, BC which was enacted in 2019. Their b, law reduced renovictions from 333 to zero. 3. Renoviction protections may lead to more landlords pursuing N12 evictions for personal use. Even if this were true (and there is little evidence currently to support this), the City's response shouldn't be to do nothing. The result would be that both evictions continue to increase dramatically. In ACORN's experience, most renovictions take place in buildings. It is harder for a landlord to evict a tenant of a multi -unit residential building using an N12 (ie. eviction because the landlord or their immediate family wants to move in). However, landlords certainly still try. The Province of BC recently banned personal use evictions in buildir7cxs with over 5 units The City of Kitchener could advocate to the Province of Ontario that they follow a similar approach and consider municipal options during the development of a renoviction bylaw. 4. Cost of renovation license would stifle necessary renovations and redevelopment Landlords are still able to renovate their units in cities that have passed renoviction bylaws. Most necessary repairs can happen while the tenant remains in their unit. This would not require the landlord to obtain a renovations license. However, if renovations were shown to require vacancy, the landlord can still do the renovations under the condition that tenants are supported while they are temporarily displaced and that their right to return at the same rent is protected. The current system incentives landlords to neglect repairs and use it as justification for renovations that are often cosmetic in nature so they can evict the tenant and raise rents. Instead of allowing this to continue, the City should strengthen its property standards bylaws that are meant to require landlords keep their units in a good state of repair. This was the approach that the City of Hamilton chose to undertake with their `Safe Apartments Bylaw' Page 24 of 55 (passed at the same time as their renoviction bylaw) that is similar to Toronto's `RentSafeTO' program that's been in place since 2017. 5. No money in the city budget or capacity in the bylaw department Inaction will cost the City more in the long run. Ensuring tenants are able to maintain their affordable housing saves the City money by reducing costs resulting from increased homelessness, strains on our healthcare system, and the impacts of deteriorating mental health and addiction in the community. 6. Recommends tenant education and provincial advocacy as a better alternative If tenants' rights are weak (as they are now) then educating tenants on their rights alone won't have a significant impact on reducing renovictions. Even if tenants are more informed on their rights (which is something ACORN does all the time), tenants are still on the hook for: • Finding temporary housing at much higher rents • Paying for moving costs • Tracking their landlord's progress on the renovations • Becoming a private investigator to look for signs that their landlord may be trying to rent out their unit to someone else (ex. Driving by their old home, searching ads on Kijiji, Facebook marketplace etc - this can become a full time job) • Going through a lengthy and sometimes costly legal process that will not result in tenants getting their unit back Premier Doug Ford has had 7 years to stop renovictions and his government hasn't. There is no desire from the Province to maintain affordability in rental housing and to stop no fault evictions.This is why municipalities across Ontario have stepped up to the plate to protect tenants. ACORN is urging the City of Kitchener to do the same. Sincerely, Waterloo Region ACORN Contact: (519)-670-1859 kw acorncanada.org Page 25 of 55 ACTO Advocacy entre r Tenants Ontario Thursday February 6, 2025 Sent via Fax: 519-741-2800 Councilor Stephanie Stretch Ward 10 C/O Office of the Mayor and Council Kitchener City Hall 200 King St. W. Kitchener, ON N2G 4G7 Dear Councilor Stretch, RE: Support for an Anti -Renovictions By-law for the City of Kitchener I am writing to express the Advocacy Centre for Tenants Ontario's (ACTO) strong support for a by-law at the City of Kitchener that mirrors the anti-renoviction by-law approved by the cities of Hamilton, London, and Toronto. An anti-renoviction by-law is essential for saving Kitchener's few remaining affordable rental units. Such a bylaw would strongly discourage predatory landlords who are taking advantage of Ontario's weak rent control regime by evicting long term law abiding renters in order to seek maximum returns on their investment. ACTO is a community legal clinic funded by Legal Aid Ontario to provide legal services to low- income renters across Ontario on issues that affect their ability to provide and maintain decent homes for themselves and their families. We have been supporting local residents across Ontario in their attempts to address the rise of renovictions and thereby stemming the loss of affordable rental housing in their communities. Revovictions Backgrounder In Ontario, renovictions occur when the landlord serves a notice of termination called an N13 to the renter informing them that they need to vacate the unit in order for renovations or repairs to be completed. The renter then has the right to return to the unit once the renovation is complete and continue with their tenancy paying the same rent that they were charged prior to vacating the unit. A renoviction that is performed in bad faith occurs when the landlord rerents the unit to another renter, usually at a higher rent, instead of returning the original renter back to their home. There are two reasons why predatory landlords prefer to renovict law abiding renters. Generally renters can only be evicted for just cause in Ontario which ensures security of tenure for Ontarians. The N13 process is one of the very few ways a renter can be forced out of their home despite not having done anything wrong. The other driver of renovictions is Ontario's loose rent control system where units first occupied before November 15, 2018 have annual increases T: 416.597.5855 www.acto.ca 1506-55 University Ave. F: 416.597.5821 Toll Free: 1,866.245.4182 1 Toronto, ON M5J1 2H7 Page 26 of 55 prescribed by the province based on the Consumer Price Index up to a maximum of 2.5%. However, if a renter leaves a home then there is no limit to how much a landlord can charge for that unit. Waterloo Region saw rents for two bedroom units si'igriiitiicairTfly iincirease by 7.4% in 2023 and 4.2% in 2024 far exceeding the provincial rent increase amount. Renovictions in Kitchener For many years Ontario has been experiencing a housing affordability crisis. This crisis has been exacerbated by the significant increase in renovictions which have removed thousands of affordable homes from the rental marketplace. According to ACORN's QnL irlo Renoviicflo,n iE pg 2024, Kitchener experienced a 55% increase in N13 evictions in 2022 compared to 2017. Kitchener has the 6t" highest number of N13 evictions in the province with 136 between 2017 to August 2023 behind London at 153. The top five cities that have experienced N13 evictions are Toronto, Hamilton, Ottawa, Windsor and London. Four out of those five cities have either passed anti-renoviction bylaws or have staff investigating their efficacy. The m"e'dii have reported that renovictions are taking place at 250 Frederick Street and 141 and 149 Borden Avenue where N13s have been served to all of the renters in these buildings. These buildings are owned by the same landlord, Michael Klein, whom ACORN has described as the worst ire,novlic; oir in Ontario. They describe this landlord's business practice as purchasing buildings with long time renters and then serving them with N13s and offers to buy out their leases in order to rerent those units at higher rents. Renters and community legal clinics across Ontario are organizing to prevent mass evictions this practice, if left unchallenged, could create. Most recently in Toronto the renters were able to stave off eviction with the help of their local councillor. The councillor discovered that no work was performed after the city issued building permits for Klein's buildings. The councillor allowed the permits to expire and this became a crucial factual fiindiing, at the Landlord and Tenant Board hearing. The buildings in Kitchener have building permits but they are currently suspended and not allowed to lapse as the by law office suggested that it was waiting on the outcome of eviction hearing at the Landlord and Tenant Board. We request that the suspension be lifted and the permits are allowed to elapse. Municipalities are Taking Action Against Renovictions Although the Province has jurisdiction when it comes to property and residential tenancy matters it has been slow to take action having finally taking action in Bill 97 which sets out increased fines for bad faith evictions and mandatory notice requirements for landlords. This Bill received royal assent in October 2023, however, the protections against renovictions have yet to be proclaimed meaning that these protections cannot be enforced. Even if they were proclaimed these protections place the onus on the renter to seek justice at the Landlord and Tenant Board where wait times for hearings have been a well known problem since 2020. When renters have won their case and the Board has ordered landlords to pay fines for bad faith evictions only 4 out of 13 landlords from 2020 to 2023 actually paid those fines. Lastly, the higher fines in Bill 97 can only be applied by a separate 3rd party government agency that initiates an investigation resulting in a provincial offence conviction. In conclusion that is why renters need an effective municipal anti-renoviction bylaw that addresses the shortcomings that exists in Bill 97. Page 27 of 55 There is no question that municipalities have the authority to pass an anti-renoviction bylaw. The bylaws in Hamilton, London, and Toronto that will come into effect in 2025 demonstrate this. Toronto and Hamilton's by-laws, in our opinion, are the gold standard for an anti-renovictoin bylaw because they call on landlords to provide rent gap payments to the renter paying the difference between the rent they are charged while away from their home and their former rent. This provision ensures that the renovation is performed promptly and minimizes the time that a renter is displaced from their home. In summary, an anti-renoviction bylaw is an essential model for ending the outsized role that renovictions play in Kitchener's broader housing crisis. It is essential because it both eliminates renovation scams from dishonest landlords that evict renters into Kitchener's housing crisis while allowing honest landlords to carry out improvements on their property. By taking meaningful action on renovictions that mirrors Hamilton and Toronto, Council can help prevent both the further loss of Kitchener's affordable housing stock and having more families uprooted from their homes and communities and into Kitchener's ever-increasing housing crisis. This by-law is exceptionally urgent and Council cannot afford to miss this opportunity to protect the City's housing supply and the overall well-being of its residents. ACTO stands firmly in support of adopting an anti-renovictions by-law in Kitchener that mirror's Toronto and Hamilton's as soon as possible, and we hope that you will consider its adoptions as an important step towards ensuring affordable and accessible housing for your residents. In addition we ask that the building permits are pulled from the above address or in the alternative that they are permitted to elapse. We look forward to a constructive discussion on this important renter protection. Yours very truly, Advocacy Centre for Tenants Ontario per: Douglas Kwan Director of Advocacy and Legal Services Page 28 of 55 Staff Report Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: February 10, 2025 SUBMITTED BY: Dianna Saunderson, Manager, Council & Committee Services PREPARED BY: Mariah Blake, Committee Coordinator, 519-783-8999 WARD(S) INVOLVED: All DATE OF REPORT: February 3, 2025 REPORT NO.: COR -2025-063 SUBJECT: 2025 Appointments to Heritage Kitchener Committee RECOMMENDATION: That effective February 10, 2025, Preston Arens and Nic E'Silva be appointed to the Heritage Kitchener Committee for the term ending November 15, 2026, or until a successor has been appointed, as outlined in Corporate Services Department report, COR -2025-063. REPORT HIGHLIGHTS: • The purpose of this report is to appoint two new members to the Heritage Kitchener Committee to ensure effective meetings may occur, by addressing concerns related to committee composition and quorum. • This report supports the delivery of core services. BACKGROUND: On December 16, 2024, Council appointed individuals and members of Council to various advisory committees, boards and quasi-judicial tribunals for the current term. During the December 16, 2024, Special Council Meeting, 8 individuals were appointed to Heritage Kitchener for the term ending December 16, 2026. The following individuals were appointed: Magda Milosz, Rudi Schweitzer, Laura Wilson, Peter Ciuciura, Jean Haalboom, Grant Eveleigh, Natalie Pikulski, and Ali Mahmoodi Sahba. In accordance with the current Terms of Reference for Heritage Kitchener, membership is composed of a minimum of 7 members and a maximum of 11 members. The Committee also endeavors to appoint 1 representative from each of the City's designated Heritage Conservation Districts (St. Mary's, Civic Centre, Victoria Park and Upper Doon). Under -appointment poses concerns with respect to the committee's composition and quorum. As such recruitment for additional members was initiated. REPORT: Recruitment for the Heritage Kitchener Committee was open from January 6, 2025 to January 17, 2025 and posted to the city's website, communicated through social media, existing committee members and shared on Linkedln. During the recruitment period, 4 eligible applications were received. The Nominating Committee considered the applications and *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 29 of 55 recommended that two applicants, Preston Arens and Nic E'Silva be appointed. The additional appointments will assist in maintaining quorum and will contribute to committee's composition of individuals with demonstrated knowledge or expertise related to conservation and/or restoration of built heritage resources and/or cultural heritage landscapes. It is staff's intention to conduct a fulsome review of the Heritage Kitchener Terms of Reference and the amended Terms are anticipated to be brought to Council in Spring 2025. 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. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. OR • COR -2024-526 — 2024 Appointment to Advisory/Quasi-Judicial Committees and Boards (2024-2026) APPROVED BY: Victoria Raab, General Manager, Corporate Services ATTACHMENTS: None at this time. Page 30 of 55 Staff Report J IKgc.;i' r� R Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: February 10, 2025 SUBMITTED BY: Dianna Saunderson, Manager, Council & Committee Services PREPARED BY: Mariah Blake, Committee Coordinator, 519-783-8999 WARD(S) INVOLVED: All DATE OF REPORT: February 3, 2025 REPORT NO.: COR -2025-064 SUBJECT: Dangerous Dog Designation Appeal — Snider and Hillenaar RECOMMENDATION: That the decision of the Dog Designation Appeal Committee regarding an appeal filed by R. Snider and C. Hillenaar, wherein the Committee substitutes the designation of Dangerous Dog, applied to the dog `Murphy' by the Humane Society of Kitchener - Waterloo and Stratford Perth, and pursuant to By-law 2014-142, and hereby designates "Murphy" as a Potentially Dangerous Dog, be ratified and confirmed with modified conditions, as outlined in Corporate Services Department report, COR -2025-064. REPORT HIGHLIGHTS: • On November 13, 2024 the Humane Society of Kitchener -Waterloo and Stratford Perth (HSKW) designated `Murphy' as a Dangerous Dog. • On November 16, 2024 owners R. Snider and C. Hillenaar appealed the dangerous dog designation. Based on the evidence provided, it is the opinion of the Committee that "Murphy" is unlikely to be involved in another dog bite incident as this is the dog's first incident of aggression, which also may have been exacerbated by mitigating factors. The dog owners have taken multiple precautionary measures to ensure "Murphy" is not involved in a dog bite incident again, including: implementing dog training, muzzling in the house around strangers, muzzling on walks, and ensuring an adult is present with the dog at all times. The City's Dog Designation Appeal Committee based on the evidence received, opted to substitute the Dangerous Dog Designation applied by the HSKW, with a Potentially Dangerous Dog Designation for the dog, `Murphy,'. This report supports the delivery of core services. BACKGROUND: On November 13, 2024 the Humane Society of Kitchener -Waterloo and Stratford Perth designated `Murphy', a dog owned by R. Snider and C. Hillenaar, as a Dangerous Dog. The designation was applied after determining that on October 26, 2024, `Murphy' did attack a person in contravention to Chapter 420 (Dog Designations) of the City of Kitchner Municipal Code. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 31 of 55 On November 13, 2024, Legislated Services received correspondence from R. Snider and C. Hillenaar appealing the Dangerous Dog Designation; and a Notice of Hearing was issued to the Respondent and Appellant, advising on January 20, 2025, a hearing of the Dog Designation Appeal Committee would be held to consider this matter. After considering the evidence presented by all parties, the Committee determined that the Dangerous Dog Designation, should be substituted with a Potentially Dangerous Designation, due to the fact this was "Murphy's" first dog bite incident, it appeared to be an isolated incident, and the proactive, precautionary measures taken by the dog owners following the attack. REPORT: The Dog Designation Appeal Committee established by the Council of the Corporation of the City of Kitchener pursuant to Chapter 420 (Dog Designations) of the City of Kitchener Municipal Code and the Statutory Powers Procedures Act R.S.O 1990 Chapter S.22, sat on January 20, 2025, to consider an appeal filed with the City by R. Snider and C. Hillenaar, and reports as follows: The Committee considered the following: • Testimony and evidence provided on behalf of the Respondent by Officer S. Canavan, Kitchener -Waterloo and North Waterloo Human Society, which demonstrates, "Murphy" was involved in an incident on October 26, 2024, where "Murphy" did attack a person without provocation, resulting in severe injury. • Testimony and photographic evidence from R. Snider and C. Hillenaar, Appellant and Dog Owner, acknowledging the dog attack incident on October 26, 2024 did occur; and requesting the Committee rescind the Designation as the behaviour exhibited by "Murphy" was an isolated incident, and actions have since been taken to ensure an attack does not occur again. It was also raised that there may have been mitigating factors present. In addition, the Committee reviewed and considered the provisions of Chapter 420 (Dog Designations) of the City of Kitchener Municipal Code and recommends that having considered all the evidence and exhibits presented during the Hearing regarding the incident, the Dangerous Designation applied to `Murphy' be substituted to Potentially Dangerous with modified conditions. The Committee hereby recommends the designation of Potentially Dangerous Dog applied to `Murphy, by the Humane Society of Kitchener -Waterloo and Stratford Perth; and, pursuant to By- law 2014-142 assigns the following modified conditions for the keeping of said Potentially Dangerous Dog: a) The owner shall ensure that all conditions pertaining to the dog when it is off the property of the owner including any leashing and muzzling requirements are complied with in any City Off -Leash Park unless specified otherwise in this designation; b) The owner shall ensure that the animal services provider is provided with the new address and telephone number of the owner within two working days of moving the designated dog; c) The owner shall provide the animal services provider with the name, address and telephone number of the new owner within two working days of selling or giving away the designated dog; Page 32 of 55 d) The owner shall advise the animal services provider within two working days of the e) f) g) h) i) D k) M) n) death of the designated dog; The owner shall advise the animal services provider forthwith if the designated dog runs at large or has bitten or attacked any person or animal; The owner shall provide a copy of this designation to any person who keeps or harbours the designated dog; The owner shall provide a copy of this designation to any veterinarian treating the designated dog and within the veterinarian's premises shall be exempt from the requirements of this designation to the extent necessary to secure veterinary treatment for the dog at the discretion of the veterinarian; The owner shall ensure that the designated dog has a current City dog license; The owner shall ensure that the designated dog wears the tag or tags provided by the animal services provider at all times and shall pay the reasonable cost for such tag or tags; The owner shall ensure that the designated dog is kept, when it is on the lands and premises of the owner, confined: a. within the dwelling; b. in an outdoor pen that is both secure and provides humane shelter to the satisfaction of the animal services provider; c. in an area with a secure and adequate fence to the satisfaction of the animal services provider however the animal services provider may refuse to approve any fenced area if, in the sole discretion of the animal services provider, a fenced area would provide insufficient protection to members of the public including unsupervised children who may wander into the area; or d. when outside of the dwelling and the approved pen or fenced area contemplated by subsections (b) and (c), under the effective control of a person of at least sixteen years of age and under leash, such leash not to exceed 1.8 metres (6 feet) in length and to be approved by the animal services provider and, where the dog is required to wear a muzzle off its property by this designation shall also wear a muzzle when confined in accordance with this subsection (d). The owner shall ensure that the designated dog is kept caged, penned, or under the control of a person of at least sixteen years of age when any child under the age of fourteen who does not habitually reside in the owner's dwelling is present. The owner shall ensure that the designated dog is kept caged, penned, in a locked room not accessible to children or through inadvertence, or under the control of an occupant of the dwelling who is at least 18 years of age when any person who does not habitually reside in the owner's dwelling is present. The owner shall ensure that the designated dog is kept under the effective control of a person of at least sixteen years of age and under leash, such leash not to exceed 1.8 metres (6 feet) in length and to be approved by the animal services provider, at all times when the designated dog is off the owner's property and not caged or otherwise penned or confined to the satisfaction of the animal services provider. The owner shall ensure that the designated dog wears a securely attached muzzle that is satisfactory to the animal services provider at all times when it is off the owner's property and not caged or otherwise penned or confined to the satisfaction of the animal services provider; Page 33 of 55 o) The owner shall ensure that the warning signs or signs provided by the animal services provider are displayed at the entrance to the owner's dwelling which a person would normally approach and at any other place on the property as directed by the animal services provider. The sign(s) shall be posted in such a manner that it/they cannot be easily removed by passersby and the sign posted at the entrance which a person would normally approach must be clearly visible to a person approaching the entrance or, when In a multiple unit dwelling, the owner will provide the name of the property owner and property manager if any and allow the animal services provider to request that person to post a sign or signs; p) The owner shall ensure that the designated dog is sterilized and shall provide proof satisfactory to the animal services provider that such procedure has been performed within 30 days of this designation becoming a confirmed designation; q) The owner shall ensure that the designated dog is not kept or harboured in a multiple unit dwelling or lodging house and where the owner's current dwelling is a multiple unit dwelling or lodging house the dog may be kept or harboured at other premises subject to all the conditions imposed on the keeping of the dog pursuant to this designation; r) The owner shall ensure that the designated dog is microchipped by a licensed veterinarian and supply the microchip information to the animal services provider. The owner shall also permit the animal services provider to verify the implantation of such microchip. STRATEGIC PLAN ALIGNMENT: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: There are no financial implications associated with this report. COMMUNITY ENGAGEMENT: INFORM — All those in attendance at the January 20, 2025 Hearing were advised of the Committee's decision and that it would be considered at the February 10, 2025 Council meeting as required in the By-law. In addition, a Notice of Decision was sent to the Appellant ant the Respondents via email and registered mail on January 27, 2025; thereby, further notifying both parties of when the Committee's decision would be considered by Council and the process for registering as a delegation. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Victoria Raab, General Manager, Corporate Services Page 34 of 55 Staff Report J IKgc.;i' r� R Community Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: February 10, 2025 SUBMITTED BY: Michael May, DCAO & GM of Community Services, Denise McGoldrick, GM of Infrastructure Services Jonathan Lautenbach, Chief Financial Officer PREPARED BY: Elin Moorlag Silk, Manager, Service Coordination & Improvement, Darren Becks, Director, Facilities Management, Osama Siddiqui, Project Manager, Customer Experience WARD(S) INVOLVED: All Wards DATE OF REPORT: February 6, 2025 REPORT NO.: CSD -2025-044 SUBJECT: Kitchener Indoor Recreation Complex — Gymnasium Update RECOMMENDATION: That, in order to avoid project cost escalations and delays in opening the Kitchener Indoor Recreation Complex, staff be directed to proceed with phase one of the two - phased construction of a new gymnasium at Schlegel Park (as outlined in CSD -2025-044) that would support a wide diversity of community activities and events, as well as fast- growing sports such as basketball, volleyball and pickleball; and That staff be authorized to use the $19,913,529 in debenture financing previously authorized by City Council on September 16, 2024, to fund this phase of the gym construction; and That staff be directed to continue with advocacy efforts with the federal and provincial governments to secure grant funding to help complete phase two of the gym construction and open the facility. REPORT HIGHLIGHTS: A gymnasium has been proposed to be built at the Kitchener Indoor Recreation Complex (KIRC) at Schlegel Park to support a wide diversity of community activities and events, as well as fast-growing youth and adult sports such as basketball, volleyball, and pickleball. On September 16, 2024, City Council directed staff to apply to the federal and provincial governments for grant money to help fund construction of the gym. At the same time Council authorized up to $20M in debenture financing for the gym project. Construction of the Kitchener Indoor Recreation Complex (KI RC) has reached a point where a decision about building the gymnasium must be made now in order to avoid cost increases *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 35 of 55 on the gym project, and to remain on schedule to open the full KIRC facility in the summer of 2026. The City has not yet received a decision on the status of the grant applications. • If construction of the KIRC gymnasium is delayed, the result will be immediate and ongoing cost escalations (ranging from approximately from $4M to $9M+) to the budget, along with compounded scheduling delays to the opening. • Utilizing a two -phased approach to constructing the gym offers several advantages: (1) it enables construction on the gym to get underway now, avoiding cost escalations and schedule delays; (2) it maximizes integration and efficiencies between the gym and the rest of the KIRC building; (3) it provides the flexibility on how to proceed with phase two of the gym's construction based on the outcomes of the City's grant applications with the federal and provincial governments, and (4) it reduces the initial capital request from $30M to $20M. BACKGROUND: The quad gymnasium at Schlegel Park will not only help fill a gap in the currently underserviced southwestern area of Kitchener but will also provide increased recreational opportunities for thousands of people across the community. By creating the City's first facility of this kind, with competition standards for basketball, volleyball and pickleball, the City will help meet the fast- growing and increasingly diverse demand for indoor court and gym spaces. The quad gymnasium has been designed with the ability to sub -divide the space into four courts, each with individual access to support spaces. The design also includes associated storage, spectator seating and additional washrooms to support these functions. On the mezzanine level, the new space provides additional viewing onto the courts and access to two cricket batting cages. The quad gymnasium has been integrated with the rest of the KIRC facility in such a way that the circulation and user experience are seamless. Like the KIRC facility, the quad gymnasium will be designed to the highest standards and will be a feature community amenity within the City of Kitchener as a Net -Zero facility. Further, adding the quad gymnasium to the KIRC facility not only addresses the demand for more court/gym space, but it also meets the community and users' preference for multi -use facilities that offer a wide variety of amenities in one location vs. a standalone single -amenity recreation centre. Indeed, substantial support for the quad gymnasium proposal has been expressed by numerous user groups who were engaged by City staff during the design phase of the gymnasium. These user groups wrote letters of support that accompanied the City's federal and provincial grant applications'. Provincial & Federal Grant Applications As directed by City Council, in the Fall of 2024 the City submitted grant applications to the federal and provincial governments totalling $20,000,000 in potential funding for the gym project. 1. One application was to the Province of Ontario's Community Sport and Recreation Infrastructure Fund (CSRIF) through Stream 2 — New/Signature Builds. This stream supports initiatives that address a clear community need, transform existing infrastructure to create new sports and recreation facilities, establish unique facilities that do not ' Please see report appendices B through G for letters of support submitted from local user groups. Page 36 of 55 currently exist within the province or region, attract investment and stimulate economic growth, and serve as venues for hosting large sports events. 2. The second application was for the Federal Government's Green and Inclusive Community Building (GICB) Program, which prioritizes new facilities that fill a missing or distinct gap in a service requirement where critical community infrastructure is lacking, along with encouraging new builds to net zero standards, reducing GHG emissions, increasing energy efficiency, and building resiliency to climate change. Over the past several months, robust advocacy has been underway with the federal and provincial governments in support of those grant applications. However, given the current political situation in both the federal (parliament prorogued) and provincial (early election call) governments, decision-making on both grant applications has been delayed for longer than anticipated, and as such, the City has not yet received a decision on either of the applications. REPORT: This report is being brought forward as directed by Council in September 2024 regarding the status of the City's grant applications. The resolution states the following (with statement relevant to this report in bold): "That Council support the City's grant submission to the Community Sport and Recreation Infrastructure Fund Stream 2 for the construction of the quad gymnasium located at the Kitchener Indoor Recreation Complex, as outlined in Financial Services Department report FIN -2024-411; and, That Council supports the City's grant submission to the Green and Inclusive Community Buildings Federal Grant program for the construction of the quad gymnasium located at the Kitchener Indoor Recreation Complex, and, That the total budget for the gymnasium located at the Kitchener Indoor Recreation Complex be approved at $29,913,529, and that, if both grant applications are successful, an additional maximum debenture financing in the amount of $9,913,529 be authorized, and that, if only one grant application is successful, an additional maximum debenture financing in the amount of $19,913,529 be authorized, in both scenarios, for a term not exceeding 20 years (to be repaid from future development charge revenue earmarked for indoor recreation facilities); and, That the Chief Administrative Officer or a General Manager is hereby authorized to execute the Community Sport and Recreation Infrastructure Fund (CSRIF) and the Green and Inclusive Community Building (GICB) application, and if successful, execute a CSRIF Transfer Payment Agreement with the Ministry of Sport, and any other CSRIF or GICB related documentation; said agreement and other related documentation is to be to the satisfaction of the City Solicitor; and, That, if the grant application is successful, staff be directed to execute the supplementary agreement with the IPD team signatories for the construction phase of the project, and further, Page 37 of 55 That staff be directed to report back to Council if the grant funding is unsuccessful with options for advancing the gym construction, or if the City is a successful grant recipient, report back to Council through an information report summarizing the status of the application." Staff have not yet received a decision on the City's federal and provincial grant applications and are looking to Council for direction on options to move forward with construction of the gymnasium, as directed in the Council resolution above. Construction on the Kitchener Indoor Recreation Complex has reached a point where a decision about building the gymnasium must be made now in order to remain on schedule for the completion and opening of the facility in the summer of 2026. Staff have been working closely with the KIRC Integrated Project Delivery (IPD) team members to explore potential options for proceeding with construction of the gymnasium. The chart on the following page identifies the benefits and risks of four options that have been carefully considered. Option 3, to build the gymnasium in two phases, is being recommended by staff as the preferred approach. Page 38 of 55 M M N U co 0-- U) L (n C 0 CL L 0 M E 0 Z U 00 (0 � a)L f ''O0 L^ co M > N D O d) C13 Lo U N � a LO LO 0 rn m N CD m IL L °1 v ° •� o EE a °' o +� v T M m +� cn v t ca Q m C: ++ h -L4 6 T V —_ WN 41 Q) LnO -O U °' O i co I a1 � O co V to • +L,, O V) U a) �O > u w � ai __ t 3 6 o L a) aJ N +, ++ 2i 0 c 7 • O p rj 0 L y Q_ 'a E ° c C Q T OU a1 N O+ + M Q_ _ ° `� ° IE M a..� C LW' L •yj T E L D Y U n3 2 u v Q_ 0 v c o r v v � c O `^ aj � � c ° v -0� v aV CL Z L =E oo o —,E O E T O T C i o v° '+om ra n + E-1 c v V� i T LO O OC O O° T +� -6 • N L dA p �n qp �, C Y � w L ,v °-CL fa O E C o �- S �" 3 c ++ V CL =3 C N S a1 of m 7 +i+ N L o E dA C) V E 3 I I o `o o vv o a Q C,6Ln aTn °1 T o rl N •• Ln c ° O > (a 7 -a c: X a' ° ++ c o (O • ° ° ° In In o w u N w a) O a, m m °' v u v E u v E c '� N a) O a) CL2i V j T Z)L ° >' CUvOi V Q OL E O o O — o 'O L c vt M� c aJ 7 cr aJ CL a1 t6 t0 - Q- 0 0 J u Q Q ca w 0 v O t3 +, a • • • • • • C: 3 N � ° u Ln E o V 40 c c O C o L — •L ra U � u, ° IV nz +� Q_ °o c c ° � +� oC o Y w o UO •Q -0w .0 2 O L Z U o C ++C = % c M O O Q - _ U N Y v p Z3 CL w CL E 0 0 u u v ra T Q aj T I I v) v) c M v v v TM QJ N Q m c E Ln O f4 v) 7 !E -p • N N `� 7 p ° Q) OL L 0 0 O V)-0 a-+ � fa O Q C �O o O O OO v to L ° T Mvi •+, c u a1 ° O • O +� m Q v v u c v) 3 nn o Q_ o +' 7 V7E - v c V) .a' Y Ib c 0 E N O v u LA° v u 0 n V a o L X o- a co ai u p y Q E +�-+ O -o � E L +� bA +T, d U 2 U _ b-0 3 Q m o ,�� a1 tto 2 (A H J W W (A Y W W V) 0 m a N U co 0-- U) L (n C 0 CL L 0 M E 0 Z U 00 (0 � a)L f ''O0 L^ co M > N D O d) C13 Lo U N � a LO LO 0 rn m N CD m IL Option 3: Build Gym in Phases — STAFF RECOMMENDATION The option of building the gym in two phases is being recommended by staff as a way of addressing decision-making constraints while attempting to mitigate financial risk. With this option, construction of the gym would proceed without delay alongside the base KIRC building to ensure that construction of the gymnasium "shell" (phase one) is fully integrated and current schedules are maintained. Further, by proceeding in two distinct phases, the team is able to delay completion of the "interior" (phase two) to align with future funding/grant decisions. Generally, the proposed phases with this option would likely work out as follows (although some elements may change as the IPD Team continues work on this approach): This phased approach to constructing the gym accomplishes the following: • Provides certainty to the build team regarding next steps and does not jeopardize project delivery of the base building (avoids delays in opening). • Provides greater cost certainty for critical time sensitive elements such as, but not limited to foundations, steel, and site works. • Avoids cost escalations of $4M - $9M through shared efficiencies and opportunities to find further innovations that would be shared with the base build • Allows the site to be built with the same envelope materials and components as the base KIRC building to ensure that there is a cohesive design and appearance. • Reduces or eliminates risk in the following areas: Page 40 of 55 • Completion of all sitework and demolition to achieve Site Plan Approval (SPA) based on additional requirements that the full gym completion would require. • Completion of all envelope items (concrete footings and Phase One — shell foundations, steel structure, cross laminated timber (approx. cost $20M) (CLT), metal deck, siding, tile, windows, roof membrane). • Pour the concrete slab on grade • Completion of mechanical rough -in (all underground works and placement of roof top mechanical equipment) • Completion of electrical rough -in • Completion of the interior finishes. Examples: o Interior partitions (drywall & concrete block) o Water supply piping and plumbing fixtures o Mechanical ductwork & distribution Phase Two — interior o Doors & hardware o Architectural finishes (floor, walls & ceilings) (approx. cost ($10M) o Gym flooring o Gym equipment • Facility commissioning • Facility opening This phased approach to constructing the gym accomplishes the following: • Provides certainty to the build team regarding next steps and does not jeopardize project delivery of the base building (avoids delays in opening). • Provides greater cost certainty for critical time sensitive elements such as, but not limited to foundations, steel, and site works. • Avoids cost escalations of $4M - $9M through shared efficiencies and opportunities to find further innovations that would be shared with the base build • Allows the site to be built with the same envelope materials and components as the base KIRC building to ensure that there is a cohesive design and appearance. • Reduces or eliminates risk in the following areas: Page 40 of 55 Allows the City to lock in costs for known elements and reduces future price uncertainty for phase one scope. Uses trades that are already onsite to continue their work without re -mobilizing at a future date. Eliminates schedule risk as the shell construction is easily folded into the current schedule and build program Moving forward with shelled space within an initial build is a tactic that has been employed on many other sites across numerous sectors, particularly as a cost-saving and time -saving strategy. Overall, the cost for completion of phase one is estimated to be $20M, which is considered an acceptable financial risk to the City in order to move forward with this option. A prime benefit with this option is that construction of phase one of the gymnasium will progress alongside the base KIRC build, avoiding project costs escalations of $4M to $9M and delays to the opening of the KIRC/gym or both. Further, this option allows for flexibility in decision-making on whether to move forward with phase two in the near future. For instance, in the event that the political climate and financial position of our country shifts significantly requiring a change in course, phase one of the gym (the "shell') can be left empty and unfinished for a period of time until we are in a financial position to complete phase two. Should the City receive less than $10M in grant funding in the short-term for phase two of the gym construction, staff will consider a variety of other funding strategies/sources and report back to City Council in a timely manner. STRATEGIC PLAN ALIGNMENT: This report supports the vision of Fostering a Caring City Together by emphasizing inclusivity for residents of all ages, backgrounds, and experiences. It promotes the health and well-being of the community by ensuring easy access to diverse and inclusive programs and services. The construction of a quad gymnasium at the KIRC meets a fast-growing demand for court space. This report supports Cultivating a Green City Together by promoting a sustainable pathway to a greener and healthier urban environment. It emphasizes the enhancement and protection of parks and natural spaces while transitioning to a low -carbon future. Additionally, the report supports businesses and residents in making climate -positive choices, fostering a community committed to environmental stewardship and resilience. FINANCIAL IMPLICATIONS: Sensitivity analysis around forecasted indoor recreation DC revenues was completed to determine the level of financial risk involved with gym construction. Through this analysis it was established that the Indoor Recreation DC Reserve can fully fund the gym cost (plus debt servicing costs), though it is much more preferable to reduce that debt cost to the City through federal/provincial grant funding. The balance in the reserve is expected to drop to low levels in 2028 and fully debt financing the gym has the potential to limit the amount of funding available for other indoor recreation priorities for the next 10 to 15 years. Page 41 of 55 The following graph models a 10% reduction in DC forecasted revenues compared to revenues modelled as part of the City's most recent DC study. It highlights a number of possible debt/grant scenarios which include (1), the City receiving $10M in grant funding and issuing $20M debt (2), the City receiving $5M in grant funding and issuing $25M debt, and (3) the City fully funding the gym at $30M. Forecasted DC revenues over the next 10 years are shown alongside each of the funding scenarios. A 10% reduction in forecasted revenues is considered a likely scenario after considering a few factors: • Actual DC revenues collected in 2024 were lower than forecasted in the DC study, which can be attributed in part to an overall slowdown in development, which is expected to continue as trend in the short term. • Impacts from Legislative Changes (Bill 23) has resulted in lower DC revenue overall for Kitchener, which is expected to continue in the foreseeable future. • Economic conditions (tariffs, US exchange rate, inflation, interest rate) are likely to have an impact on housing development, potentially reducing the amount the City collects annually in DC revenue as well as increasing the cost of construction. • Impact of elections on grant programs — upcoming provincial and federal elections may have a further impact on decision making. Depending on the outcome of the elections, there is a risk that grant funding programs could be cancelled. It is recommended that grant funding opportunities continue to be pursued and at this time the maximum limit for debt financing remain at the previously -authorized Council -endorsed $20M in order to move forward with phase one of the gymnasium construction. Staff have carefully considered the potential risks with the authorization of additional DC debt, especially given the current political climate. Although the City has the ability to take on more debt for the gym construction, additional DC debt will also be needed in other DC services areas that will increase the City's overall debt levels. Based on the City's growth -related Page 42 of 55 infrastructure needs, it's expected that required DC debt will total approximately $200M over the next 10 years, illustrated in the table below. Strasburg Road & Watermain $ 8,565,000 $ 8,736,333 $ $ $ $ 17,301,333 Upper Hidden Valley & Otterbein SPS & Forcemain $ 19,058,000 $ 8,200,000 $ $ $ $ 27,258,000 KI RC + $20M Gym $ _ $ 105,610,000 $ $ $ $ 105,610,000 KIRC Gym Additional Debt (if no grants received) $ $ 10,000,000 $ $ $ $ 10,000,000 Future Roads Debt $ $ _. $ 20,787,000 $ $ $ 20,787,000 Future Sanitary Debt $_ $ _ $ $ $ 14,832,000 $ 14,832,000 Total $ 27,623,000 $132,546,333 $20,787,000 $ - $14,832,000 $ 195,788,333,, Debt charges as a percentage of own source revenues would be expected to increase to around 7.7% if the City needed to fully fund the additional $30M in debt for the KIRC gymnasium. This is still well below the Province's 25% annual repayment limit and still below the City's own debt policy maximum of 10%, but could limit the City's financial flexibility in the future and ability to use debt as a financing option to move other City initiatives forward. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. CONSULT — Engagement with Sports User Groups The engagement process for the proposed quad gymnasium has demonstrated strong enthusiasm and support from a diverse range of community stakeholders and sport groups. Staff have received overwhelmingly positive feedback about the gymnasium's design, multi - sport functionality, and potential to fill a critical gap in indoor court space within the region. User groups have expressed eager anticipation for the facility, recognizing it as a much- needed addition that will enhance Kitchener's ability to support grassroots and high- performance sports alike. Letters of support have been received from the following organizations: • Kitchener Soccer Club • Southwestern Ontario Cricket Association • Kitchener Waterloo Youth Basketball Association • Explore Waterloo Region's Sport Hosting Office • Kitchener -Waterloo Predators Volleyball Club • Pickleball of Waterloo Wellington Region Page 43 of 55 See appendices B through G for these letters of support. In their letter, the KW Youth Basketball Association emphasized that gym space is "long past due," and further expressed: With the tremendous growth in population in the region, we, the KW Youth Basketball Association, are having a very hard time keeping up with the demand for basketball training, teams and time because of a lack of facilities..... This facility would not only allow minor sports clubs to have a place for their teams to practice but it would also allow the parent clubs to be able to host tournaments which would then bring people into the region spending money on hotels, restaurants and shopping (Mike Quigley, KW Youth Basketball Association) Similarly, Explore Waterloo Region's Sport Hosting Office underscored how the quad gym would strengthen Kitchener's position in the sports tourism market, attracting regional and national competitions while delivering substantial economic and community benefits. The KW Predators Volleyball Club also strongly endorsed the project stating that: This type of facility is what our community has needed for years and the thought that it could come to fruition in the next few years has all the sports organizations in our community very excited... This past year, we had over 700 young athletes try out for a spot on one of our teams. Unfortunately, we had to release over 400 athletes, due to the fact that there is a shortage of practice facilities, and we could only accommodate a limited number of athletes. A facility of this size would allow us to increase the number of teams we carry, thereby allowing more young athletes to participate in youth sport. (Paul Pavan, KW Predators Volleyball Club) The enthusiasm from these organizations reflects a clear demand for indoor court space, and our engagement efforts indicate strong community backing both for the project and for the vision and design for the gymnasium as a part of the overall KIRC. PREVIOUS REPORTS/AUTHORITIES: FIN -2024-411 Applications to CSRIF and GICB Fund — KIRC Gymnasium INS -2024-126 Kitchener Indoor Recreation Complex — Target Cost & Design Update APPROVED BY: Dan Chapman, CAO ATTACHMENTS: Appendix A — Most recent gymnasium renderings Appendix B — Explore Waterloo Region's Sport Hosting Office Letter of Support Appendix C — Kitchener Soccer Letter of Support Appendix D — KW Predators Volleyball Club Letter of Support Appendix E — KW Youth Basketball Association Letter of Support Appendix F — Pickleball of Waterloo Wellington Region Letter of Support Appendix G — Southwestern Ontario Cricket Association Letter of Support Page 44 of 55 M Q x m CL a El LO LO 4- 0 a� c� LO LO 4- 0 a� c� Page 47 of 55 October 4, 2024 Government of Ontario - Ministry of Sport Re: Community Sport and Recreation Infrastructure Fund —Stream 2 Dear Minister Neil Lumsden: Please let this letter demonstrate our strong support for the City of Kitchener in their application for fundingfrom the Community Sport and Recreation Infrastructure Fund —Stream 2. The Sport Hosting Office at Explore Waterloo Region sees an existing deficit of gymnasium space in our community. We believe this facility will significantly enhance our Region and the potential for hosting sporting events in Kitchener. If approved, the funding would be used toward the build of a new quad gymnasium with four (4) full- size basketball courts that could support a range of sports including volleyball, badminton, pickleball and others, as well as providing multi-purpose space for non -sport events and programs. With a 40 -foot clear ceiling height and specialized flooring, the gym would support tournament level play at high performance levels and would enhance our region's capacity to host a wide variety of sporting events and tournaments, attracting visitors from across Ontario and beyond. The demand for venues that can accommodate regional, provincial, and national competitions continues to grow, and this gymnasium would strengthen Waterloo Region's position in the sports tourism market; also contributing to the local economy. This space would create new opportunities for community engagement with state-of-the-art recreational opportunities, positively impacting local residents where we live, work, and play. We fully support the City of Kitchener for this funding opportunity and are confident that the project will deliver substantial benefits to our community. The funding opportunity provided by the province to support sport infrastructure is essential and will allow for facilities to be built that not only serve the local community— but enhance Ontario's profile as a sport hosting destination on the national stage. Page 48 of 55 We appreciate your consideration of this application and Loo k forward to the positive impact it wi I[ bring. Michele Saran CEO, Explore Waterloo Region Allister Scorgie Director, Sport Hosting, Explore Waterloo Region Page 49 of 55 October 3, 2024 Re: Kitchener Indoor Recreational Complex (KIRC) To: To Whom It May Concern The Kitchener, Ontario minor sports community are very excited concerning the announcements of the new Kitchener Indoor Recreational Complex. In addition to the current announcement the possibility of having a quad gymnasium as additional opportunities for our Club (Kitchener TFC Soccer) and many others within the community only enhances our excitement and desire to have this facility built. We capitalize our training and playing opportunities with the additional quad gym without question. Notwithstanding the excitement this would create and fill with adding this to KIRC project. Please consider all support to our Municipal Government for ensuring we can provide so much more to our community to benefit our youth and adult programs. Thank you, Tim Hart Executive Director Kitchener TFC, Kitchener Soccer Club (519) 896-8947 x11 (. -c1-@NI1dv,1h_ ire a lh 'A � irn'n) Page 50 of 55 Kitchener -Waterloo Predators Volleyball Club 80 Keller Crescent Phone: (519-570-2977 Kitchener, ON Email: ppavan@kwpredators.org N2N 3M7 To Whom It May Concern My name is Paul Pavan and I am the President and Director of the Kitchener Waterloo Predators Volleyball Club, a not-for-profit club for elementary and high-school age athletes. I would like to express my support for the initiative undertaken by the City of Kitchener to build a facility that will include 4 full-sized basketball courts. This type of facility is what our community has needed for years and the thought that it could actually come to fruition in the next few years has all the sports organizations in our community very excited. For our sport, 4 full-sized basketball courts would equate to 8 volleyball courts. With this number of courts, it would mean an increase in practice time, and with 2 of the biggest clubs in the province in our community, this would help alleviate the shortage for practice time that we currently experience. This past year, we had over 700 young athletes try out for a spot on one of our teams. Unfortunately, we had to release over 400 athletes, due to the fact that there is a shortage of practice facilities and we could only accommodate a limited number of athletes. A facility of this size would allow us to increase the number of teams we carry, thereby allowing more young athletes to participate in youth sport. Furthermore, this would create the ability for the city to earn revenue by running OVA tournaments, which go on weekly from early November to the end of March. A facility of this size could accommodate tournaments of up to 32 teams and up to 1000 people per day on weekends, giving the members of our community a financial boost. I have just scratched the surface of what the possibilities could be and the impact that this type of facility could have on the sports clubs and business owners will be felt throughout our community for years to follow. Sincerely, Paul Pavan President and Director Kitchener Waterloo Predators Volleyball Club pi�?..21... .rc g Uso a.0 u 519-572-6038 Page 51 of 55 Kitchener-Waterloo outh4���SSSS�S�U asketba ssociation To whom it may concern KITCHENER-WATERLOO YOUTH BASKETBALL ASSOCIATION 2012 OBA Club -of -the -Year This is a letter of support for the City of Kitchener's grant application that would provide capitol funding towards a new quad gymnasium in the RPG Schlegel Park. The reasons for this support are many. This infrastructure is long past due. With the tremendous growth in population in the region, we, the KW Youth Basketball Association, are having a very hard time keeping up with the demand for basketball training, teams and time because of a lack of facilities. Since the return from COVID all minor sport youth clubs are facing tremendous growth as parents are anxious to get their children into active sports, Indoors facilities in the Kitchener area are behind the times. Most other major population centers have already built newer facilities and are reaping the benefits from it. This facility would not only allow minor sports clubs to have a place for their teams to practice but it would also allow the parent clubs to be able to host tournaments which would then bring people into the region spending money on hotels, restaurants and shopping. For the KW YBA this would mean hosting an event like the Ontario Basketball Association's Ontario Championships which draw thousands of parents for an entire weekend. This new facility would be guaranteed long term tenants as the KW YBA would, as the city's minor sport affiliate for basketball, use as much time as they could rent for their team's practices and games. It could also serve as a cornerstone in attracting larger sporting competitions such as Ontario Summer Games bids or Canada Games bids. Kitchener ended in 2nd place in the bid for the 2022 Canada Games as the main venue for basketball competition was not as good as that of Niagara Region. As one of the fastest growing population centers in Ontario, Kitchener needs to get this facility built as soon as possible. This grant would expediate the process for us. The KW Youth Basketball Association firmly and fully supports their request. If you need any further information, do not hesitate to contact me by phone at (519) 573-4582 or email at mikekkwyba.com. Thank You Page 52 of 55 Mike Quigley Executive Director, KWYBA Director, KW YBA Vipers Page 53 of 55 � R October 3, 2024 Dear Neil Lumsden, I write to you today to lend my full support to the application from the City of Kitchener to the Community Sport and Recreation Infrastructure Fund — Stream 2. If approved, this grant will be used to support the construction of a facility that will function as part of a community hub. This facility will include much needed gymnasium space for members of our community. Kitchener is currently lacking facilities that can offer pickleball and para-pickleball programs, tournaments and special events. This new facility will create space for basketball, volleyball, badminton and pickleball players, and with the 40 -foot ceiling height is perfectly suited for pickleball play. The sport of pickleball is the fastest growing sport in North America, and facilities are needed to meet the demand. Our not-for-profit organization, Pickleball of Waterloo Wellington Region (POWWR), was incorporated in 2017 and has close to 600 members. POWWR lacks access to facilities to offer pickleball programs to all our Youth and Adult members. Our membership has doubled in the last year, and gymnasium space is urgently needed. Registrations for our pickleball programs fill up within the hour, leaving many members without a place to develop their skills and play the sport in a safe and welcoming environment. A quad gymnasium with court dimensions that are designed for pickleball play will go a long way to meet the demand of the ever-expanding pickleball community. In partnership with the City of Kitchener, POWWR will be able to offer a variety of pickleball programs, including Drill & Play, Open Play, Clinics, Local and Regional Tournaments. Our organization has an energetic Board of Directors, Certified Coaches, experienced Volunteers and the drive to offer dozens of programs and tournaments throughout the year. All we lack is the facility to meet the growing demand. By including pickleball courts in the design, this facility will be the hub of pickleball activities serving youth, adults, seniors and para-pickleball players. This project will enhance physical and mental wellness in our community and encourage intergenerational connections. Sincerely, Fiona MacGregor President, Pickleball of Waterloo Wellington Region (POWWR) www. powwr. ca Page 54 of 55 October 4, 2024 Re: Community Sport and Recreation Infrastructure Fund — Stream 2 (CSRIF) Dear Minister, I am writing on behalf of the Southern Ontario Cricket Association (SOCA), a vibrant sports organization deeply committed to the development and promotion of cricket in our community in support of the City of Kitchener and their application for funding support through CSRIF — Stream 2 SOCA is located in Waterloo Region with 45 hardball cricket and 22 softball cricket teams in our league. In addition to that we have 34 children in our non-profit cricket academy trained to be future sports persons and utilize all four cricket fields within the City of Kitchener. The anticipation surrounding the construction of a quad gymnasium with the potential for two cricket batting cages has generated immense excitement amongst our members. The cricket batting cages will provide invaluable training opportunities for aspiring cricketers. Access to such dedicated training facilities is crucial for honing skills and nurturing talent, ultimately enhancing the quality of our local cricket teams. As an organization, we believe that this initiative will significantly contribute to the growth and well-being of our community in several ways. Furthermore, having access to a facility of this nature will be transformative for the growth and development of cricket in our community. It will provide a conducive environment for coaching, practice matches, and tournaments, thereby attracting more individuals to the sport and nurturing a new generation of cricket enthusiasts. Thank you for considering our input, and we look forward to your favorable decision. Sincerely, Giridhar Bannaravuri President Southern Ontario Cricket Association Page 55 of 55