HomeMy WebLinkAboutDTS-06-007 - Adaptive Reuse CIP App ARP2005/01, 120 Mansion St1
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Development&
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Report To: F &CS Committee
6 REPORT
Date of Meeting: February 20, 2006
Submitted By: Adaptive Reuse CIP Steering Committee
Prepared By: Cory Bluhm, Planner, 741 -2776
Ward(s) Involved: Ward 1 — Bridgeport — Centre
Councillor John Smola
Date of Report: January 26, 2005
Report No.: DTS -06 -007
Subject: Adaptive Reuse CIP Application ARP2005 /01
Haastown Holdings
120 Mansion Street — The Lofts on Mansion
RECOMMENDATION:
1. That the City of Kitchener approve ARP Application 2005/01, received from Haastown
Holdings, dated October 28, 2005. 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. 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.
2. 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.
BACKGROUND:
In August of 2005, the Minister of Municipal Affairs and Housing approved the City of Kitchener
Adaptive Reuse Community Improvement Plan, pursuant to Section 28 of the Ontario Planning
Act. Subsequently, application procedures and forms were endorsed by City Council on
October 24, 2005.
REPORT:
a) Location and description of property
This application pertains to 120 Mansion Street in the Central Frederick neighbourhood legally
described as Plan 157 Part Lot 103, Plan 79 Part Lots 41 and 42, RP 5813-14801 Parts 1 and 2.
In 2004 and 2005, these lands were subject to applications for consent, minor variance, site
plan and condominium. All applications have been approved.
b) Adaptive Reuse
The existing building served as a factory and warehouse for a series of industrial businesses
since 1900. Over the past year, Haastown Holdings has been converting the factory into a
residential loft condominium, with a total of 58 residential units. The project has added 2
additional storeys to the existing building, and a row of 4 townhouse units.
c) Existing and Projected Assessment
2005 property assessment = $157,000
Total tax bill = $2,260.88 City's portion of the tax bill = $719
The projected assessment upon completion is $10,393,750, with a projected City tax bill of
$45,472.66. This equates to a City "Tax Increment" of approximately $44,753.66 per year
($45,472.66 - $719). If given an annual TIF grant for 10 years, Haastown would receive
approximately $447,536. This grant would be less than the maximum allowable TIF grant of
$580,000 for this project.
deject Eligibility Criteria
The Lofts on Mansion project satisfies all of the eligibility criteria established in section 4.6 of the
Adaptive Reuse CIP.
• The property is within the Adaptive Reuse CIP boundary;
• The project will convert an industrial use to a residential use;
• The project will result in an increased tax assessment;
• Project construction will occur between the CIP time frame of January 1, 2005, and
December 31 St, 2010;
• Site plan approval has been obtained;
• The project provides 6 affordable purchase units (11 % of units); and,
• The property is not subject to tax arrears.
e) Next Steps
If this application is approved by Council, the applicants will have to enter into a "Proponent /City
Agreement" which will spell out the terms of the TIF grant. As part of this, the applicant would
have to provide the City with the total project costs as verified by a professional architect or
equivalent. This is to ensure that the value of the TIF grant does not exceed the value of work
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done. The agreement will also identify the beneficiaries and the timing of payments of the
annual grants.
FINANCIAL IMPLICATIONS:
The approval of this Application will obligate the City of Kitchener to provide a municipal
property tax rebate over a 10 year period in an estimated amount of $447,536, but not
exceeding $580,000, commencing in the year following successful completion of the project and
when a new assessment has been applied to the property by MPAC.
COMMUNICATIONS:
This Application has not been circulated to the public.
CONCLUSION:
Staff support acceptance of this application within the terms and conditions of Kitchener's
Adaptive Reuse Community Improvement Plan.
Cory Bluhm, BES
Planner
Jeff Willmer, MCIP, RPP
Director of Planning
Joyce Evans, CMO, M PA, FCGA Fiona McCrea
Director of Revenue Assistant City Solicitor
Attnr_hmAntc-
Appendix A —
Applicant Letter & Application
Appendix B -
Location of Application Property
Appendix C
— Approved Site Plan for Proposed Development
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