HomeMy WebLinkAboutDTS-06-043 - Brownfield Remediation Program App 06-01 - 1420 King St E1
Kd LR
Development&
Technical Services
Report To: DTS Committee
6 REPORT
Date of Meeting: March 27, 2006
Submitted By: Jeff Willmer, Director of Planning
Prepared By: Terry Boutilier, Senior Planner (Special Projects)
Ward(s) Involved: Ward 1 — Bridegport — Centre Ward
Councillor John Smola
Date of Report: March 21, 2006
Report No.: DTS -06 -043
Subject: Brownfield Remediation Program Application 06 -01
Menno Homes Inc.
1420 King Street East
RECOMMENDATION:
1. That the City of Kitchener approve BRP Application 06 -01, received from Menno Homes Inc.
dated March 20, 2006. In exchange for a completed and filed Record of Site Condition for
1420 King Street East, 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 2006 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. The grant will continue for a maximum period of 10 years or until
the total Eligible Remediation Cost, approximated at $183,000, has been reached,
whichever comes first.
2. That the Mayor and Clerk be authorized to execute a Remediation and Redevelopment
Agreement with Menno Homes Inc., satisfactory to the City Solicitor.
BACKGROUND:
In November of 2003, the Minister of Municipal Affairs and Housing approved the City of
Kitchener Brownfield Remediation Plan, pursuant to Section 28 of the Ontario Planning Act.
Subsequently, application procedures and forms were endorsed by City Council on May 3,
2004.
In early March, Mr. Martin Buhr of Menno Homes Inc. met with Staff and indicated his intention
to apply for funding pursuant to Kitchener's new Brownfield Remediation Program.
REPORT:
a) Location and description of property_
This Application pertains to a vacant property situated on the north side of King Street East,
across the street from the City of Kitchener Rockway Seniors Centre.
In 2006, the .03 hectare property received Site Plan Approval for the construction of a 6 Storey
multiple residential building containing 38 one - bedroom units and 12 two- bedroom affordable
senior citizen units.
b) Contamination and Remediation
Naylor Engineering Associates were retained by the proponents in late 2005 to conduct a Phase
1 & 2 Environmental Site Analysis (ESA). A large Underground Storage Tank (UST) was
discovered, and along with the tank, an appreciable amount of petroleum impacted soils.
Menno Homes contracted a licensed Contractor to immediately deal with the matter. A total of
515 cubic metres of material needed to be excavated and replaced with clean fill. The
estimated cost to remediate the site is $183,000.
A Record of Site Condition (RSC) was filed with Ministry of the Environment and posted on the
Ministry Website.
c) Existing and Projected Assessment
The 2005 Assessment for the parcel is $362,000. Menno Homes Inc. would note that MPAC
has recently re- classified the lands as "Parking Lot ", rather than the previous classification of
"Residential Vacant Land ". Menno Homes Inc. intends to pursue a review of this Assessment
Classification adjustment.
Mr. Buhr has provided an estimate that the new Assessment for the project, following project
completion, will be in the order of $4,350,000 (projected on the basis of 75% of construction
costs of $5,800,000.) Construction is planned to commence in April or May of this year.
The Brownfield Steering Committee has reviewed the application and Staff are confident that
the "Tax Increment" (i.e., the difference between the existing municipal tax level and the future
tax level following completion and occupancy) will be more than sufficient to allow the City of
Kitchener to assist in the form of Tax Incremental Financing (TIF).
The Brownfield Steering Committee will closely scrutinize the invoices of all Consultants when
completed and submitted to the City.
FINANCIAL IMPLICATIONS:
The approval of this Application will obligate the City of Kitchener to provide a municipal
property tax rebate, in accordance with the terms of the Brownfield Remediation Community
Improvement Plan, not exceeding $183,000, 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.
14
CONCLUSION:
Staff support acceptance within the terms and conditions of Kitchener 's Brownfield Remediation
program for a maximum assistance level of $183,000.
Terry Boutilier, MCIP, RPP
Senior Planner, Special Projects
Joyce Evans, CMO, M PA, FCGA
Director of Revenue
Attachments:
Jeff Willmer, MCIP, RPP
Director of Planning
Appendix A —
Applicant Letter & Application
Appendix B -
Location of Application Property
Appendix C
— Approved Site Plan for Proposed Development