HomeMy WebLinkAboutFin & Corp Svcs - 2006-02-06FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 CITY OF KITCHENER
The Finance and Corporate Services Committee met this date, commencing at 12:45 p.m.
Present: Councillor B. Vrbanovic -Chair
Mayor C. Zehr and Councillors M. Galloway, G. Lorentz, J. Smola and C. Weylie.
Staff: C. Ladd, Chief Administrative Officer
G. Sosnoski, General Manager, Corporate Services & City Clerk
R. Browning, Interim General Manager, Development & Technical Services
A. Pappert, General Manager, Community Services
L. Proulx, Director of Facilities Management
H. Gross, Director of Project Administration and Economic Investment
R. Regier, Executive Director of Economic Development
D. Chapman, Director, Financial Planning & Reporting
J. McBride, Director, Transportation Planning
R. Gosse, Director, Legislated Services
L. MacDonald, City Solicitor
J. Sheryer, Assistant City Solicitor
P. Harris, Manager of Licensing
L. Bensason, Heritage Planner
R. Morgan, Capital Investment Advisor
C. Bluhm, Planner
M. Sanderson, Inclusion Co-ordinator
J. Billett, Committee Administrator
1. SSD-05-006 -REAL ESTATE SERVICES CONTRACT -EXTENSION
The Committee considered Strategic Services and Economic Development report SSD-05-
006, dated January 16, 2006 regarding extension of a contract for real estate services.
On motion by Councillor C. Weylie -
it was resolved:
"That the Real Estate Services contract with Coldwell Banker Commercial -Peter
Benninger Realty and Royal LePage Commercial be renewed for a third and final one
year period until February 23, 2007."
2. CRPS-06-020 -LIQUOR LICENCE REVIEW APPLICATION
- SLICES - 300 KING STREET WEST
The Committee considered Corporate Services Department report CRPS-06-020, dated
January 30, 2006 concerning a liquor license application for Slices, located at 300 King Street
West.
On motion by Councillor C. Weylie -
it was resolved:
"That subject to the applicant entering into an agreement with the City including certain
conditions of operating a licenced establishment as set out below, Council take no
action to oppose the application for a liquor license for Slices, located at 300 King
Street West, Kitchener applied for by Zdravko Mutlak (herein referred to as the
"Applicant"); and further,
That staff be authorized to enter into an agreement with the applicant should she be
willing, wherein the applicant agrees to abide by the following conditions and to request
they be added to her licence if the Alcohol and Gaming Commission of Ontario (AGCO)
chooses to issue the licence:
1. To post in a conspicuous place and abide by the Downtown Licensed
Establishments Code of Conduct;
2. To become a member of the Kitchener Downtown Business Association's License &
Entertainment Committee and attend its meetings;
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FEBRUARY 6, 2006 - 36 - CITY OF KITCHENER
2. CRPS-06-020 -LIQUOR LICENCE REVIEW APPLICATION
- SLICES - 300 KING STREET WEST (CONT'D)
3. To abide to a set 30% monthly ratio of alcohol sales to gross refreshment sales
(including food and other sundries) as set out in the application (in other words,
alcohol sales will be limited to 30% of gross refreshment sales);
4. To stop serving alcohol by 1:00 a.m. daily;
5. To notify the Clerk of the City of Kitchener in writing of any application to change the
license at the time the application for the change is made to the Alcohol and Gaming
Commission, and not to expand the establishment without the consent of the City's
Council;
6. To comply with the Noise By-law and the Smoking By-law; and,
7. These conditions shall bind all successors, assigns and subsequent licence holders
(if any)."
3. DTS-06-007 -ADAPTIVE RE-USE CIP APPLICATION ARP2005/001
- THE LOFTS ON MANSION - 120 MANSION STREET
The Committee considered Development and Technical Services Department report DTS-06-
007, dated January 26, 2005 regarding an adaptive re-use CIP application for 120 Mansion
Street, The Lofts on Mansion.
On motion by Councillor C. Weylie -
it was resolved:
"That Adaptive Re-use CIP Application ARP 2005/01, received from Haastown
Holdings, dated October 28, 2006, be approved; and,
That upon proof of an occupancy permit for 120 Mansion Street, the City of Kitchener
will provide a grant in the form of an annual rebate on City taxes in an amount equal to
100% of the City Tax Increment; where the City Tax Increment is defined as the
difference between the City portion of real property taxes for the 2005 Taxation Year
and the new City portion of real property taxes levied as a result of a new assessment
by the Municipal Property Assessment Corporation (MPAC) following completion of the
project or any phases thereof; and,
That the grant will continue for a maximum period of 10 years or until the maximum
grant of $10,000. per residential unit (for a total maximum grant of $580,000.) has been
reached, whichever comes first; and further,
That the Mayor and Clerk be authorized to execute an Adaptive Reuse "Proponent/City
Agreement" with Haastown Holdings (Kitchener) Inc., satisfactory to the City Solicitor."
4. MATTERS CONCERNING:
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
These matters were listed as Items 4-6 and 8 on the February 6, 2006 Finance and Corporate
Services Committee agenda.
The Committee was in receipt this date of the following documentation for consideration:
• KPL report dated February 1, 2006 -Central Library Project Update
• Joint Presentation -KPL Central Library Project and Centre Block Redevelopment
• Chief Administrator's Office report CAO-06-009 -Centre Block Redevelopment
• Development & Technical Services Department report DTS-06-022 -Listing of City-owned
property in the Centre Block as being of Cultural /Heritage Value or Interest
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FEBRUARY 6, 2006 - 37 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
• Corporate Services Department report CRPS-06-23 -Retention /Removal / Remediation
Options -Forsyth Complex.
Ms. Sonia Lewis, CEO -KPL, provided an update on the Central Library Project advising that
considerable public investment; a comprehensive KPL fundraising plan; and private sector
investment is required to fund the project. Cost projections outlined in the September 2004
KPL Business Case have undergone detailed review by Hanscomb Limited, with reductions in
furniture /equipment budgets of $3 M and on the basis of a parking study, parking
requirements decreased from 230 to 180 spaces. Ms. Lewis noted that surface parking was
originally envisioned; however, public input, overall plan for the development of Centre Block
and the City's downtown parking needs have demonstrated a need for underground parking.
Inclusion of underground parking represents the largest difference between the business case
estimates and new estimates prepared by Hanscomb. In total, Ms. Lewis advised that the
project is now estimated at $58.7 M, which includes $6.3 M for underground parking. She
added that the addition of 170 downtown parking spaces to the project costs results in a total
of $64.67 M.
Ms. Lewis commented that the project costs should be considered in the context of economic
impact, referring to an analysis undertaken by Adventus Resarch which projects an annual
economic benefit by year 5 of $28 M for downtown Kitchener and $59.6 MRegion-wide. Ms.
Lewis then reviewed a breakdown of the project costs as follows:
• Library construction
• Library interior /fees
• Library site costs
• Library parking (180 spaces)
• Downtown parking (170 spaces
Total
$34.13 M
$16.58 M
$ 1.73 M
$ 6.28 M
5.95 M
$64.67 M (in 2006 construction va
The Committee raised a number of questions, regarding the size of the new library in terms of
need; confidence level in current estimates; potential partnerships; and branch services. Ms.
Lewis advised that 130,000 sq. ft. (approximately 4 storeys) is proposed for the new library;
however, to ensure the project moves forward successfully on the Centre Block, KPL is
prepared to be flexible as to size as long as provision is made to allow for future expansion.
She noted that demand for programs at the main branch currently exceeds capacity that could
be met with a larger facility. In regard to cost estimates, Ms. Lewis advised that Hanscomb
has 40 years experience in projecting costs, including numerous library projects, and projects
an accuracy in the estimates in the range of ± 10%. She added that the estimates are based
on 2006 construction values, with escalation of 5% inflation per year being assumed for
planning purposes. Ms. Lewis commented that partnership discussions are ongoing with
Wilfrid Laurier University and the University of Waterloo, with no firm commitments at this
time. In regard to branch libraries, Ms. Lewis agreed that more should be built but costs are
excessive. She added that KPL looks at reasonable catchments (i.e. population) in
considering placement of branches to control operating costs and is the reason for focusing on
the southwest corridor at this time. She further noted that branches cannot offer programming
/services on a similar scale to a main library as they are limited in capacity.
At the request of Councillor B. Vrbanovic, Ms. Lewis and City staff agreed to provide
information on the following matters prior to the February 13, 2006 Council meeting:
• history of the original size of the existing library and subsequent additions, and on what
population additions were based;
• specifics of economic benefits to be realized relating to the projection of $28 M to
Downtown Kitchener (i.e. assessment growth, retail, etc.); and,
• comparisons between similar sized cities in terms of square footage /services /per capita
rates.
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FEBRUARY 6, 2006 - 38 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
Ms. S. Lewis subsequently advised that the original size of the existing main library was
67,000 sq. ft., increased by 5,000 sq. ft. after the first addition and by 10,000 sq. ft. after the
second addition.
Messrs. Craig Robson and Hans Pottkamper attended on behalf of the Centre Block Steering
Committee (CBSC), in support of the recommendations contained in report CAO-06-009
(Centre Block Redevelopment). Mr. Robson advised that market conditions have changed
such that the Centre Block site has become more valuable to private sector development. He
noted that while construction costs have increased significantly since release of the KPL
business case, the value of the site has also risen; spurred by anticipation of the two
University developments in the downtown core and the success of the Kaufman Lofts. He
suggested that by leveraging the municipal contribution to the library, the City will increase
ability to find a developer that will redevelop the entire site.
Mr. Robson advised that the CBSC is not recommending that the remaining structures on the
Forsyth site be retained as it is their opinion they would seriously compromise ability to
achieve maximum development on the property. He pointed out, however, that CBSC is
recommending that the Mayfair Hotel in its entirety and the front fagade of 152-158 King Street
West be retained, and the successful developer encouraged to incorporate these structures in
redevelopment of the property.
Mr. Robson commented that while additional funds for construction of the library are not being
requested, CBSC is asking that consideration be given to providing municipal funding for the
underground parking structure and confirmation that the sale proceeds of the existing library
will be included as part of the project funding. He noted that the project cost estimates are
generous, advising that it is anticipated development of the entire site will reduce costs
through economies of scale (i.e. professional services /fees; contingencies [eg. landscaping];
and other capital costs [ie. furnishings, collections]). He added that the City is being requested
to consider options for selection and securing of a guarantor for the $5 M targeted fundraising
amount, required for inclusion in the call for proposal going out to the development industry.
Mr. Robson advised that the project funding shortfall equates to approximately $12.5 M and
accordingly, assistance is requested to cover costs for the underground parking. If approved,
the shortfall will be reduced to approximately $6 M bringing the project funding close enough
to interest industry development and spark competition. Mr. Robson concluded that in the
event no viable proposals are received which include a library and parking structure, the CBSC
requests that consideration then be given to re-issuing a proposal call for redevelopment
excluding a library component.
In response to questions, it was noted that fundraising dollars would potentially be required by
start of construction, anticipated to begin between October 2007 and April 2008; and
consideration of an alternate proposal, excluding a library component, would not be
determined until evaluation by Council and the KPL of proposals received for the library
project. Ms. S. Lewis commented on the standards to be used in building the library, advising
that it would not be to the same scale as the City Hall. She stated that the intent is to create
an affordable structure that will be functional, as well as pleasing to the public.
Ms. C. Ladd commented on the underground parking as to how it will integrate into the City's
overall parking study. She noted that $5.5 M is allocated in the Economic Development
Investment Fund (EDIF) based on studies completed 4 years ago relative to potential
partnership for a parking structure at Charles / Benton Streets. That particular project has not
gone ahead as recent studies indicate costs will exceed the $5.5 M. The request under
consideration this date is to allow allocation of the $5.5 M toward the library parking needs and
several options are provided to cover the remaining shortfall. Mr. Gross reviewed options to
cover the shortfall, which include: debenturing; front-end funding by the developer, with the
City to own and operate the structure; or front-end funding by the developer, with the
developer to own and operate the structure for a specified period of time.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 39 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
Responding to questions, Mr. Robson commented on the importance of leveraging City-owned
property, noting that with a commitment from the City of $36.5 M, the developer will be asked
to contribute approximately $7 M. Unless a developer sees value in the site the industry will
have no interest in doing so. He pointed out that CBSC has always known that $32.5 M is not
sufficient but recognizes the value in the land. He stressed that is why it is important to lessen
the gap in costs between public and private investment. Mr. Robson added that while he
agrees with preserving heritage structures where feasible, retaining the Forsyth structure was
not financially feasible and in his opinion, its demolition increased the value of the land.
Mr. Robson was asked to comment on aspects of redevelopment, noting that should a
residential use be incorporated in the site (e.g. condominiums) additional parking will be
required at cost to the developer. He pointed out that no assumptions have been made at this
time regarding redevelopment of the site. He pointed out that through the RFP process
potential proposals will be narrowed to 2, at which time, Council will have opportunity to put
forward suggestions as to what they would like to see developed on the site and the final
decision will rest with Council.
Council then considered report CRPS-06-023 (Retention /Removal / Remediation Options -
Forsyth Complex). Mr. G. Sosnoski advised that staff is seeking direction with regard to the 2
remaining buildings on the Forsyth site, being the Smyth Residence and the 1937 Art Deco
building. He noted that the Chief Building Official has assessed the remaining structures and
neither are structurally unsafe. He pointed out, however, that concerns regarding the stability
of the Art Deco fagade and further weatherproofing of the remaining structures should they be
retained, should be addressed. He outlined 4 options ranging from $375,000. for demolition of
the remaining structures, including preservation of the Art Deco fagade, to upwards of $8.6 M
to retain the Art Deco building for future use and demolish the Smyth Residence.
Staff clarified costs for removal of the Art Deco fagade, which include $42,390. for removal,
transporting for storage, cataloguing and numbering; and $64,780. for re-setting existing pre-
cast panels, sills and copings and installation of new ties. It was noted that the contractor
cannot guarantee that pre-cast panels already damaged or deteriorated can be removed intact
and the cost estimates do not include repair or replacement. It was also noted that actual
costs to re-set existing panels is dependent on how many and where they are used.
Mr. H. Gross then reviewed recommendations outlined in report CAO-06-009 relative to the
City's financial commitment to redevelopment of the Centre Block, including: $32.5 M from
EDIF; $3.5 M from the sale of 85 Queen Street North (increased from $2.5 M); using City-
owned Centre Block property as an asset to leverage financing of the new central library;
inclusion in the project of the Young Street right-of-way, King Street to City Hall parking garage
entrance; $5.5 M identified in EDIF for parking toward a 350 space municipal parking
structure; options for funding the $8.5 M shortfall for the parking garage; and options for
selecting and securing a guarantor for the $5 M targeted fundraising by KPL. Mr. Gross
pointed out that no new funds are being requested for the project with the exception of funding
for the municipal parking structure.
Mr. Gross responded to questions, advising that it was his recollection that Council has only
formally committed $32.5 M from EDIF to the project, with all other referenced funding
(excluding funding for parking) having come forward as information in the KPL business case.
He also commented on the proposal to use the Young Street right-of-way advising that a traffic
impact study has been completed which suggests there will be no negative impact. He added
that the portion of Young Street to be closed is intended to be developed for pedestrian use.
Mr. J. McBride advised that traffic staff have not yet received the traffic impact study for
comment; however, he noted that additional lanes at Duke Street will be required to
accommodate the volume of traffic and turning lanes.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 40 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
At the request of Mayor C. Zehr, it was agreed to amend the wording of recommendation #7
(report CAO-06-009), regarding support for use of the Young Street right-of-way, to add to the
end of the recommendation the phrase "subject to an acceptable proposal being received as
identified by Council."
At the request of Mayor C. Zehr, it was also agreed to amend recommendation #5 (report
CAO-06-009), regarding the sale proceeds from the existing library, to increase the amount
from $2.5 M to $3.5 M.
Mr. L. Bensason was asked to comment on the interior heritage features of the Mayfair Hotel
and potential measures for preservation. He referred to report DTS-06-022 which provides
detailed description of the heritage features considered to be of cultural /heritage value or
interest. He added that a decision as to how best to preserve the building would not be made
until such time as an alteration permit application is submitted for review and may result in a
number of options, including: retention for an adaptive re-use, partial removal, relocation or
simply documenting the heritage aspects.
Mr. Frank Kulcsar spoke in opposition to the proposed new central library, suggesting that
current usage of the main library does not warrant a new facility. He asked that a decision
regarding this project not proceed until after the 2006 municipal election.
Mr. Glen Woolner spoke in support of Heritage Kitchener's recommendation to retain the
remaining two structures on the Forsyth site for future adaptive re-use. He noted that it is
easier to destroy than create or recreate heritage and asked that Council demonstrate
leadership by protecting the remaining Forsyth buildings for inclusion in the redevelopment of
Centre Block.
Ms. C. Ladd then outlined in order of preference, the direction requested of the Committee
with regard to the staff recommendations contained in reports CAO-06-009, DTS-06-022 and
CRPS-06-023. Mayor C. Zehr referred to recommendation #10 in report CAO-06-009 and
requested clarification of Ms. Ladd's remarks regarding the potential to reduce project costs.
Ms. C. Ladd noted that reductions may be realized through economies of scale, as suggested
earlier by Mr. Robson, which would be determined through the RFP review process. Mayor
Zehr asked that the recommendation reflect the potential for cost savings. Councillor B.
Vrbanovic suggested that wording be added to the recommendation such that the KPL project
budget be adjusted by any realized project budget shortfall.
Councillor M. Galloway suggested that given the amount of information presented this date
and in the absence of Councillor J. Gazzola, more time should be taken prior to a final
decision being made. He suggested that consideration of all recommendations be deferred
for a period of two weeks. Mayor C. Zehr noted that considerable discussion of the issues has
taken place over and Council gave clear direction at its last meeting as to its intent to take
action this date; recognizing that a final decision would not be made until the February 13
Council meeting.
On motion by Mayor C. Zehr, the staff recommendations contained in reports CAO-06-009 (#1
to 11, as revised this date), CRPS-06-023 (paragraphs 1 and 3 only) and DTS-06-022, were
brought forward for consideration.
At the request of Mayor C. Zehr, it was agreed to defer and refer consideration of
recommendations 9 and 10 (report CAO-06-009) to the February 13 Council meeting, to allow
additional options to be put forward regarding funding of the shortfall for the municipal parking
structure and revised wording to be provided regarding selection of a guarantor for the KPL
fundraising targeted amount.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 41 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
A motion by Councillor M. Galloway to defer and refer consideration of all recommendations
contained in reports CAO-06-009, CRPS-06-023 and DTS-06-022 to the February 20, 2006
Finance and Corporate Services Committee meeting, was voted on by all members present
and Lost, with Councillor M. Galloway voting in favour and Mayor C. Zehr and Councillors J.
Smola, G. Lorentz, B. Vrbanovic and C. Weylie voting in opposition. Councillor J. Gazzola
was not present.
A motion by Councillor M. Galloway to defer and refer consideration of all recommendations
contained in reports CAO-06-009, CRPS-06-023 and DTS-06-022 to the February 13, 2006
Council meeting, was voted on by all members present and Lost, with Councillors M.
Galloway and C. Weylie voting in favour and Mayor C. Zehr and Councillors J. Smola, G.
Lorentz and B. Vrbanovic voting in opposition. Councillor J. Gazzola was not present.
In reference to the two remaining structures on the Forsyth property, Mayor C. Zehr pointed
out that at this point there is minimal heritage or practical value in retaining the structures. He
stated that given the costs involved and the fact this is not the only example in the community
of an older factory, he could not support retaining the remaining structures. Councillors G.
Lorentz and C. Weylie agreed that it was not financially feasible to save the structures and
Councillor Weylie pointed out that there is potential to replicate portions of the structures within
the Centre Block redevelopment. Councillor J. Smola agreed that there are a number of
examples of older industrial properties in the City that still could be preserved and hoped that
the development industry would take advantage of program incentives available for adaptive
re-use proposals. Councillor B. Vrbanovic added that in considering heritage matters a
balance must be drawn between preservation and fiscal responsibility.
Councillors G. Lorentz, J. Smola and C. Weylie spoke in favour of motions pertaining to the
Centre Block project, commenting on the economic benefits to the community and noting that
a final decision to proceed with the project will not be made until after the 2006 municipal
election. Councillor G. Lorentz suggested that in the interim, the KPL make concerted effort to
educate the general population as to the importance of this project to the community.
Councillor M. Galloway stated that while he supports the Centre Block project in general, he
questioned the disagreement over deferral of these matters fora 2 week period given the
significance of the decisions to be made. He expressed concerns with regard to presentation
of the funding commitment and the decision-making process being followed; commenting that
this was the first opportunity for thorough debate of all issues and the decisions being made
will ultimately transpire into costs.
Mayor C. Zehr reiterated that no final decision regarding this project will be made until after the
2006 municipal election and the cost of the project is still in control of Council. He commented
on the innovative approach of leveraging the value of City-owned property on the block to aid
in funding the new library and the transparency with which the entire process has been
undertaken. He acknowledged that there will be controversy in that significant funds will
eventually be spent but stated his willingness to put his political career on the line in support of
a project that will ultimately benefit the community.
Councillor B. Vrbanovic commented that the Centre Block project represents the next phase in
downtown revitalization and is sound infrastructure for the community. He noted that an
independent body of expert advisors was retained, with Council purposely removed except at
key points, to ensure transparency and has done what was required. He pointed out that the
economic projections of $28 M to downtown Kitchener and $59.6 MRegion-wide should not
be overlooked as it is significant payback over a short period of time.
At the request of Councillor M. Galloway, all motions were voted on by a recorded vote
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 42 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
The following motion was voted on by all members present, with clauses a) and b) Carried
Unanimously, and clause c) Carried with Mayor C. Zehr and Councillors J. Smola, G. Lorentz,
B. Vrbanovic and C. Weylie voting in favour and Councillor M. Galloway voting in opposition.
Councillor J. Gazzola was not present.
On motion by Mayor C. Zehr -
it was resolved:
"That as outlined in Chief Administrator's Office report CAO-06-009 (Centre Block
Redevelopment -Heritage Aspects), dated February 1, 2006:
a) That the Mayfair Hotel located at 11 Young Street be recognized as significant and
be retained in its entirety, with an understanding that there be flexibility of use in the
interior of the building and the successful proponent for redevelopment of the Centre
Block be encouraged to use those interior features deemed significant by Heritage
Kitchener in any development of that building.
b) That the front fagade of 156-158 King Street West be retained in its entirety and the
successful proponent for redevelopment of the Centre Block be encouraged to
incorporate the remainder of the building and any interior features deemed
significant by Heritage Kitchener in any development scheme, if structurally and
financially feasible.
c) That the two remaining buildings associated with the Forsyth building complex,
being the c. 1880 Smyth Residence and the 1937 Art Deco addition, not be retained
in situ on the property on the basis that they would seriously compromise the ability
to achieve maximum development on the property through the upcoming Request
for Expression of Interest proposal process, but that the history of the buildings and
property be honoured by having the architecture of the buildings reflected in the new
development on the Centre Block through the use of salvaged and retained
materials from all of the Forsyth buildings."
The following motion was voted on by all members present and Carried Unanimously.
Councillor J. Gazzola was not present.
On motion by Mayor C. Zehr -
it was resolved:
"That as outlined in Corporate Services Department report CRPS-06-023 (Retention/
Removal/Remediation Options -Forsyth Complex), dated February 1, 2006:
a) That staff arrange for the removal of the Duke Street Art Deco fagade of the 1937
Forsyth factory addition to ensure the building remains in a safe condition with final
disposition of the materials being subject to further Council direction and
consultation with Heritage Kitchener.
b) That Facilities Management staff, as the owner's representative, be directed to
make a Heritage Permit Application to Heritage Kitchener on February 7, 2006
regarding demolition of both the Smyth Residence and the 1937 Art Deco addition,
outlined as Option 4 in Corporate Services Department report CRPS-06-023."
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 43 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
The following motion was voted on by all members present and Carried Unanimously.
Councillor J. Gazzola was not present.
On motion by Mayor C. Zehr -
it was resolved:
"That, as outlined in Development & Technical Services Department report DTS-06-022
(City-owned Property of Cultural /Heritage Value or Interest in the Centre Block), dated
February 2, 2006, City-owned property located within the Centre Block, being: 11
Young Street, 156-158 King Street West and 48 Ontario Street North, be formally
recognized as having cultural /heritage value or interest and be listed in the City's
Heritage Register as 'non-designated property of cultural /heritage value or interest'."
The following motion was voted on by all members present, with clauses a), b), f), g) and h)
Carried Unanimously, and clauses c), d) and e) Carried with Mayor C. Zehr and Councillors J.
Smola, G. Lorentz, B. Vrbanovic and C. Weylie voting in favour and Councillor M. Galloway
voting in opposition. Councillor J. Gazzola was not present.
On motion by Mayor C. Zehr -
it was resolved:
"That as outlined in Chief Administrator's Office report CAO-06-009 (Centre Block
Redevelopment -Financial Aspects), dated February 1, 2006:
a) That Council re-affirms directing $32.5M from the Economic Development
Investment Fund towards the funding of a new central library on Centre Block.
b) That as outlined in the 2004 Kitchener Public Library (KPL) Business Case,
Council confirms directing a minimum of $3.5M from the sale of 85 Queen Street
North (existing library), towards the funding of a new central library on Centre
Block.
c) That the City-owned Centre Block property and buildings identified in the Request
for Expressions of Interest /Proposal be used as an asset to leverage the
financing of the new central library on Centre Block.
d) That Council supports the inclusion of the Young Street right-of-way, from King
Street to the City Hall parking garage, to be incorporated into the Centre Block
project, subject to an acceptable proposal being received, as identified by Council.
e) That $5.5 M identified in the Economic Development Investment Fund for parking
be directed towards the funding of a 350-space municipal parking structure on
Centre Block.
f) That the following recommendation be deferred and referred to the Februarv 13.
2006 Council meeting, to allow additional options to be provided:
'That one of the following options be selected for funding the estimated shortfall
of $8.5M for the 350-space municipal parking structure on Centre Block:
i) That the City Parking Operation fund an $8.5M debenture;
ii) That the developer fund the shortfall of $8.5M and be reimbursed through
the receipt of net revenue over a 20-year period including alump-sum
payout at the end of the 20-year period to cover any shortfall; in this
scenario, the City would own and operate the parking structure; or,
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 44 - CITY OF KITCHENER
4. MATTERS CONCERNING: (CONT'D)
- KITCHENER PUBLIC LIBRARY (KPL) -CENTRAL LIBRARY PROJECT UPDATE
- CENTRE BLOCK REDEVELOPMENT -HERITAGE /DEVELOPMENT ISSUES
- FORSYTH DEMOLITION SITE -RETENTION /REMOVAL / REMEDIATION OPTIONS
f) (Cont'd)
iii) That the developer fund the shortfall of $8.5M and be reimbursed through
operation of the parking over a 20-year period; after the 20-year period, the
City would take over the parking operation and provide alump-sum payout
to cover any shortfall; the City would own the parking structure in this
scenario.'
g) That the following recommendation be deferred and referred to the February
13. 2006 Council meetino, to allow staff to provide revised wording relative to
adjusting the target amount by any realized project budget shortfalls:
'That the KPL Board and the City of Kitchener consider all options for
securing and selecting a guarantor for the $5M targeted fundraising amount
to be achieved by the KPL Board.'
h) That in the event no viable proposals which include a library and parking
structure are received, Council consider re-issuing a proposal call for the
redevelopment of Centre Block which excludes a library component."
5. PUBLIC HEARING
Pursuant to the Municipal Act 2001, a Notice of Intention to consider enactment of a by-law to
license street vendors and to amend certain chapters of the City of Kitchener Municipal Code
with regard to the following matters, was published in The Record on January 27, 2006.
Councillor B. Vrbanovic advised that Karen Voisin had registered to speak to the report
regarding amendments to Chapter 531 (Dogs -Kennels -Breeding -Boarding -Doggie
Daycare) but had left the meeting. Mr. R. Gosse advised that he had spoken with Ms. Voisin
earlier, at which time she advised that she was in support of the proposed amendment.
No other delegations responded to an invitation to speak to these matters.
a) CRPS-06-013 - 2006 STREET VENDORS BY-LAW
The Committee considered Corporate Services Department report CRPS-06-013, dated
January 24, 2006 regarding a by-law to license street vendors.
On motion by Councillor C. Weylie -
it was resolved:
"That a by-law to licence Street Vendors in the City of Kitchener be prepared for
Council's consideration on February 13, 2006, based on the proposed by-law
dated January 30, 2006 attached to Corporate Services Department report
CRPS 06-013."
b) CRPS-06-014 -AMENDMENT TO CHAPTER 531 OF THE MUNICIPAL CODE
- DOGS -KENNELS -BREEDING -BOARDING -DOGGIE DAYCARE
The Committee considered Corporate Services Department report CRPS-06-014, dated
January 24, 2006 regarding a by-law to amend Chapter 531 of the Municipal Code to
impose a distant separation of 200 m between a Doggie Daycare II and residential
properties.
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 45 - CITY OF KITCHENER
5. PUBLIC HEARING (CONT'D)
b) (Cont'd)
On motion by Councillor C. Weylie -
it was resolved:
"That a by-law to amend Chapter 531 of the Municipal Code (Dog-Kennels-
Breeding-Boarding-Doggie Daycare) be prepared for Council's consideration on
February 13, 2006, based on the proposed by-law dated January 30, 2006
attached to Corporate Services Department report CRPS-06-014."
c) CRPS-06-018 -AMENDMENT TO VARIOUS CHAPTERS OF THE MUNICIPAL CODE
- SCHEDULE "A" - BUSINESS LICENSE PROCEDURE
The Committee considered Corporate Services Department report CRPS-06-018, dated
January 30, 2006 concerning a by-law to amend Schedule `A' (Business License
Procedure) for all applicable licensing chapters in the Municipal Code.
On motion by Councillor C. Weylie -
it was resolved:
"That a by-law to amend Schedule `A' -Business Licence Procedure for all
applicable Licensing Chapters in the City of Kitchener Municipal Code be
prepared for Council's consideration on February 13, 2006, based on the
proposed by-law dated January 30, 2006 attached to Corporate Services
Department report CRPS-06-018."
6. CSD-06-013 -JOINT ACCESSIBILITY PLAN 2006
- (ONTARIANS WITH DISABILITIES ACT 2001)
The Committee considered Community Services Department report CSD-06-013, dated
January 20, 2006 requesting adoption of the 2006 annual Accessibility Plan for the City, in
accordance with the Ontarians with Disabilities Act, 2001.
Ms. Marg Sanderson advised that this is the third plan prepared by the Joint Corporate
Accessibility Steering Group, comprised of the Cities of Kitchener and Waterloo and the
Townships of Woolwich and Wellesley. The plan outlines accessibility initiatives and actions
taken in 2005 and those proposed for 2006-2007. In response to a question, Ms. Sanderson
advised that the City of Cambridge has its own plan and committee; however, they did
participate in a meeting with the Grand River Accessibility Advisory Committee (GRAAC), held
in May 2005 concerning snow clearance.
Ms. Sharon Ward Zeller, member of GRAAC, commented from the perspective of persons
with visual impairment, on personal experiences she has had to face on a daily basis
regarding accessibility issues.
Mayor C. Zehr expressed disappointment that a common plan for all municipalities in the
Region has not proceeded and questioned if there was any movement to consolidate. Ms.
Sanderson advised that while the Regional Municipality of Waterloo has its own plan, it utilizes
GRAAC as a resource and a representative from the Township of Wilmot was recently
appointed to GRAAC; in essence, bringing 6 out of 7 municipalities in the Region under one
plan.
On motion by Councillor C. Weylie -
it was resolved:
"That the `Accessibility Plan' dated January 20, 2006, attached to Community Services
Department report CSD-06-013, be adopted as the Annual Accessibility Plan 2006 for
the City of Kitchener in accordance with the Ontarians with Disabilities Act, 2001; and
further,
6. CSD-06-013 -JOINT ACCESSIBILITY PLAN 2006
FINANCE & CORPORATE SERVICES COMMITTEE MINUTES
FEBRUARY 6, 2006 - 46 - CITY OF KITCHENER
- (ONTARIANS WITH DISABILITIES ACT 2001) (CONT'D)
That should the City of Waterloo, the Township of Woolwich and the Township of
Wellesley adopt the said Accessibility Plan, the Plan shall be a'Joint Accessibility Plan'
with the participating municipalities pursuant to Section 17(3) of the Ontarians with
Disabilities Act (ODA, 2001)."
7. MOTION RE: NEW CENTRAL LIBRARY (COUNCILLOR M. GALLOWAY)
At the January 9, 2006 Finance and Corporate Services Committee meeting Councillor M.
Galloway gave notice that he would introduce a motion regarding the new central library and
the Centre Block property for consideration at the January 16 Council meeting. Councillor
Galloway's motion was subsequently deferred and referred to the January 30 Council meeting,
at which time he requested that it be deferred and referred to the Finance and Corporate
Services Committee meeting for consideration this date.
The motion by Councillor M. Galloway was brought forward for consideration to re-affirm the
City's financial commitment to the new central library project at the original amount of $32.5 M.
At the request of Mayor C. Zehr, it was agreed to amend the motion to add to the end of the
last sentence the phrase "from the Economic Development Investment Fund".
A recorded vote was requested.
The following motion was then voted on by all members present and Carried Unanimously.
Councillor J. Gazzola was not present.
On motion by Councillor M. Galloway -
it was resolved:
"WHEREAS City Council has recognized the need for a new Kitchener Public Library
(KPL) central library; and,
WHEREAS in September 2004, City Council was presented with a business case for
the new central library which put the total cost of the project at $44 - $51 million; and,
WHEREAS in May 2005, City Council approved the construction of the new central
library on the Centre Block property with a financial commitment from the City of $32.5
million; and,
WHEREAS in November 2005, KPL's own fundraising consultant raised serious
questions over the ability of the library to meet its fundraising target and recommended
scaling back the amount of money it hoped to raise by $11 million; and,
WHEREAS in December 2005, only seven months after City Council originally
approved construction of the new central library, revised cost estimates put the cost of
the library at $19 - $27 million higher than first outlined to City Council in the business
case;
NOW THEREFORE BE IT RESOLVED that in the face of rapidly growing cost
estimates for the construction of the new central library, Kitchener City Council re-
affirms the City's financial commitment to the project at the original amount of $32.5
million from the Economic Development Investment Fund."
8. ADJOURNMENT
On motion, the meeting adjourned at 4:30 p.m.
Janet Billett, AMCT
Committee Administrator