HomeMy WebLinkAboutDTS-06-015 - Proposed Amendment to the Brownfield Remediation Community Improvement Plan
J
Development &
Technical Services
Report To:
Date of Meeting:
Submitted By:
Prepared By:
Development and Technical Services Committee
February 20, 2006
Jeff Willmer, Director of Planning
Date of Report:
Report No.:
Subject:
Terry Boutilier, Brownfield Coordinator & Senior Planner
(Special Projects)
City Wide
January 23, 2006
Wards Involved:
DTS-06-015
PROPOSED AMENDMENT TO THE BROWNFIELD
REMEDIATION COMMUNITY IMPROVEMENT PLAN
RECOMMENDATION:
1. That the "Brownfield Remediation Community Improvement Plan", approved by the Minister
of Municipal Affairs on November 6, 2003 be amended as follows:
a) Revising Criteria 5 in Section 4.6 "Project Eligibility Criteria" as follows:
"5. The proposed Project has completed Phase 1 & 2 Environmental Site Assessments,
and the first Building Permit (excluding demolition permits) has not been issued for the
proposed project."
b) Revising the definition of "Eligible Remediation Costs" in Section 4.5 "Program Incentives"
as follows:
"b) Eliaible Remediation Costs includes only the cost of conducting a Phase 1 and
Phase 2 Environmental Site Assessment (ESA), environmental remediation project
costs, associated consultant fees, and costs of complying with a Certificate of Property
Use (CPU) under s.168.6 of the Environmental Protection Act as necessary, incurred
between November 6, 2003, (i.e., the date of approval of this CI Plan by the Minister of
Municipal Affairs & Housing) and the date of issuance of the first Building Permit
(excluding demolition permits) for the proposed project."
BACKGROUND:
The Brownfield Remediation Community Improvement Plan was approved by the Minister of
Municipal Affairs and Housing on November 6, 2003. Since that time, Planning Staff have met
with several parties interested in applying for the program on a number of sites.
The Brownfields CI Plan was developed involving a number of local business people and
Environmental Committee representatives. One concern expressed to Staff was that the
Program should not be available for those projects which have already cleaned up their sites
and proceeded with their new developments. In addition, there should be a limit imposed as to
how far back in time the City would consider funding through Tax Incremental Financing (TIF).
To implement this intent, Criteria #5 was included under the "Eligibility Criteria", as follows:
"The proposed project has completed Phases 1 & 2 of the ESA,
but not initiated Phase 3, i.e. the actual site remediation work."
Over the past two years, a number of problems have arisen over this criterion. First, by strict
interpretation, if any remediation work has been done on a site at any time in the past, the site
and project is ineligible. The nature of brownfields is that someone will have done some level
of work at some point over the years. Second, owners are only learning of the Program after
remediation has started in which case they are not conforming to the intent of Criteria #5. Third,
to complete our Application the investor needs to know what the eventual development
comprises. In many cases a firm understanding is not available due to shifting market
circumstances, causing delays in the submission of a Project Application. This in turns has the
effect of further delays the start of remediation.
To remedy this problem it is suggested that the Community Improvement Plan be revised in a
manner which:
. respects the original two objectives of getting properties cleaned up; and encourages
properties to be redeveloped/renovated;
. provides much clearer timeframes for applicants as to what costs will and will not be
considered;
. provides some increased level of flexibility for the submission of Applications by the
development/investment community; and
. results in greater certainty, and no additional costs to the intended Program.
With this direction, it is suggested that Criteria #5 and the definition of "Eligible Project Costs" of
Section 4.5 be amended, as follows:
"5. The proposed Project has completed Phase 1 & 2 Environmental Site Assessments,
and the first Building Permit (excluding demolition permits) has not been issued for the
proposed project."
This time frame provides a level of flexibility to applicants and provides a more definitive time
frame in which applications will be accepted for the Program.
"b) Eliaible Remediation Costs includes only the cost of conducting a Phase 1 and
Phase 2 Environmental Site Assessment (ESA), environmental remediation project
costs, associated consultant fees, and costs of complying with a Certificate of Property
Use (CPU) under s.168.6 of the Environmental Protection Act as necessary, incurred
between November 6, 2003, (i.e., the date of approval of this CI Plan by the Minister of
Municipal Affairs & Housing) and the date of issuance of the first Building Permit
(excluding demolition permits) for the proposed project."
2
The revised wording above clarifies the initial and concluding timeframes within which expenses
will be considered under the Programs. The revision also clarifies that any costs of complying
with a Certificate of Property Use (CPU) under s.168.6 of the Environmental Protection Act will
only be considered within the specified timeframe. Such costs incurred after the issuance of the
project's first Building Permit will not be considered under the Program.
The Brownfields Program Steering Committee, consisting or Terry Boutilier (Chair), Jeff Willmer,
(DTS), Lesley MacDonald (Legal), and Joyce Evans (Finance) reviewed and approved this
proposed Amendment to the Brownfield CI Plan on January 20, 2006.
FINANCIAL IMPLICATIONS
The revised wording provides a more definitive time period for both the City and potential
applicants to the Program, and clarifies that the Program will not be responsible for any on-
going required costs beyond the date of issuance of the first Building Permit.
COMMUNICATIONS:
This Staff Report's recommendations were advertised in The Record on January 27, 2006.
CONCLUSION:
Amending the Brownfields Community Improvement Plan as recommended will simplify the
application process and provide more definitive timelines for funding, to the benefit of both the
City of Kitchener and applicants.
Terry Boutilier, MCIP, RPP
Brownfield Coordinator &
Senior Planner (Special Projects)
Jeff Willmer, MCIP, RPP
Director of Planning
Attachments
. Proposed Bylaw
. Newspaper Advertisement - January 27, 2006
3
PROPOSED BY-LAW
January 23, 2006
BY-LAW NUMBER
OF THE
CORPORATION OF THE CITY OF KITCHENER
(Being a by-law to amend the Brownfield
Remediation Community Improvement Plan)
WHEREAS Sections 28 and 17 of the Planning Act, R.S.O. 1990, Chapter P.13 as
amended, provide for the adoption of a Community Improvement Plan, therefore;
AND WHEREAS the Council of The Corporation of the City of Kitchener has by By-law
2003-140, passed on 2nd day of July, 2003 designated all lands within the City limits of the City
of Kitchener as a Community Improvement Project Area for the purposes of preparing and
implementing a Brownfield Remediation Community Improvement Plan;
AND WHEREAS a Community Improvement Plan, known as the Brownfield
Remediation Community Improvement Plan was adopted for the said area by By-law Number,
2003-141, passed on 2nd day of July, 2003, and approved by the Minister of Municipal Affairs
and Housing on November 6, 2003;
AND WHEREAS it is deemed desirable to amend Brownfield Remediation Community
Improvement Plan;
NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as
follows:
1. The Brownfield Remediation Community Improvement Plan" be amended by:
a) Revising Criteria 5 in Section 4.6 "Project Eligibility Criteria", as follows:
"5. The proposed Project has completed Phase 1 & 2 Environmental Site
Assessments, and the first Building Permit (excluding demolition permits) has not
been issued for the proposed project."
b) Revising the definition of "Eligible Remediation Costs" In Section 4.5 "Program
Incentives", as follows:
"b) Eliqible Remediation Costs includes only the cost of conducting a Phase 1
and Phase 2 Environmental Site Assessment (ESA), environmental remediation
project costs, associated consultant fees, and costs of complying with a
Certificate of Property Use (CPU) under s.168.6 of the Environmental Protection
Act as necessary, incurred between November 6, 2003, (i.e., the date of approval
of this CI Plan by the Minister of Municipal Affairs & Housing) and the date of
issuance of the first Building Permit (excluding demolition permits) for the
proposed project."
2
2. The Clerk is hereby authorized and directed to make application to the Minister of Municipal
Affairs for approval to amend the Brownfield Remediation Community Improvement Plan as
set out in this by-law.
3. This Bylaw shall come into force and take effect on the date of the final passing thereof
subject to the approval of the Minister of Municipal Affairs and Housing.
PASSED at the Council Chambers in the City of Kitchener this
day of
, A.D. 2005.
Mayor
Deputy Clerk