HomeMy WebLinkAboutDTS-06-084 - Brownfield Remediation Program App 06-02, 52 & 90 Woodside Ave1
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6 REPORT
Report To: Finance & Corporate Services Committee
Date of Meeting: June 12, 2006
Submitted By: Jeff Willmer, Director of Planning
Prepared By: Terry Boutilier, Brownfield Coordinator &
Senior Planner (Special Projects)
Ward Involved: Ward 6 — West- Victoria Park
Councillor Christina Weylie
Date of Report: June 5, 2006
Report No.: DTS -06 -084
Subject: Brownfield Remediation Program Application 06 -02
K1000 Ltd. & SBL Kitchener Inc.
52 & 90 Woodside Avenue
RECOMMENDATION:
1. That the City of Kitchener approve BRP Application 06 -02, received from K1000 Ltd. and
SBL Kitchener Inc. dated April 24, 2006. In exchange for a completed and filed Record of
Site Condition for 52 & 90 Woodside Avenue, 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. The property tax
grant, estimated annually at $121,526, will continue for a maximum period of 10 years or
until the total Eligible Remediation Cost ($1,763,892) has been reached, whichever comes
first.
2. That the Mayor and Clerk be authorized to execute a Remediation and Redevelopment
Agreement with SBL Kitchener 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 October of 2004, Mr. Jeff Wilson and Mr. Jim McGorman of Stirling Bridge Ltd. met with Staff
and indicated their intention to clean up and redevelop the site with assistance from Kitchener's
Brownfield Remediation Program.
REPORT:
a) Location and description of property
This Application pertains to two adjacent properties, as follows:
0 52 Woodside Avenue (GERMAN COMPANY TRACT SUB LOT 17 LOT 361 PT 362)
0 90 Woodside Avenue (GERMAN COMPANY TRACT SUB LOT 17 LOT 359 PT LOT
365 PT LOT 366 PLAN 183 PT LOT 1 PT LOT2 STS AND LANES)
These properties have been the subject of a joint Municipal Plan Amendment and Zoning Bylaw
Amendment, Plan of Subdivision, Common Element Plan of Condominium and Site Plan to
permit 128 townhouse dwellings.
b) Contamination and Remediation
These lands were originally developed in 1914 as a foundry to produce ductile iron and brass
castings. Since that time a number of industrial operations have operated on the site including
the Buffalo Forge Company, Canadian Blower & Forge Ltd., Canadian Blower /Canada Pumps
and Howden Fan Company.
Soil and groundwater contamination occurred from a number of on -site sources. Poor quality fill
(foundry sand waste and slag) was produced and distributed over the site. Industrial operations
on site required numerous storage tanks (above ground and below) for fuel, industrial solvents,
waste liquids and paint residue. Former coal sheds, drum storage areas, transformers,
asbestos - containing pipe, and scrap storage areas contributed to the contamination of the site.
A Record of Site Condition was filed to the Ontario Ministry of the Environment on September 1,
2005 by the property owner and Dillon Consulting. MOE elected to audit the submitted RSC on
September 29, 2005. MOE requested additional on -site testing, and these tests were
completed and submitted to MOE. On November 30, 2005 MOE concluded the Audit and
reported that they were satisfied that the assessment and restoration of 52 & 90 Woodside
Avenue has been carried out in accordance with the applicable Provincial regulations (O. Reg.
153/04) .
c) Existing and Projected Assessment
The 2005 Assessment for the two parcels is $1,250,000. In 2005, the total property taxes were
$55,533, split as follows:
City -
$11,282
Region -
$16,903
Education -
$27,348
The projected Assessment for the proposed redevelopment for 128 condominium townhouses is
$29,000,000, at an average market value of approximately $226,500 per unit. Applying the
2005 Final Tax Rates for Residential (RT) to this projected level of Assessment, the propjected
property taxes would be $417,614, split as follows:
City - $132,808
Region - $198,966
Education- $85,840
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Based on this projection, the City "Tax Increment" (i.e. the difference between the existing
municipal tax level and the future tax level following completion and occupancy) would
approximate $121,526 annually. Over the 10 year maximum period an estimated City of
Kitchener TI F of $1,215,260 can be provided.
d) Environmental Expenses
The applicant's submission itemizes $1,987,892 in remediation expenses. The Brownfield
Steering Committee has reviewed these expenses. The Committee finds that $223,916 of this
work is not eligible under the Program because these expenses either precedes the date of the
Brownfield Plan (November 6, 2003) or is beyond the scope of `the Eligible Remediation Cost'
definition in the Plan. The revised "Eligible Remediation Cost" totals $1,763,976.
e) Pending Ownership Transfer
K1000 Limited is in the process of selling these lands to SBL Kitchener Inc. who intends to
develop and build the project. The Applicant indicates SBL Kitchener Inc. should be the
beneficiary of the future tax rebate as they have borne the costs of remediation.
The Applicant has requested the City consider extending the Brownfield Remediation Program
from the current maximum term of 10 years to 15 years so that they can re -coup all of the costs
for clean up. Staff, in reply, suggest that the 10 year TI F period is an appropriate length of time
for the Municipal Tax based Program, and recognize that the City of Kitchener Program may not
in all cases pay for 100% of all remediation costs.
FINANCIAL IMPLICATIONS:
The approval of this Application will obligate the City of Kitchener to provide an annual municipal
property tax rebate estimated to be $121,526, commencing in the year following successful
completion of the project and when a new assessment has been applied to the property by
MPAC. Under no circumstances will the level of municipal tax rebate exceed the Eligible
Remediation Cost, as defined by the Program.
COMMUNICATIONS:
This Application has not been circulated to the public.
CONCLUSION:
Staff support acceptance within the terms and conditions of Kitchener 's Brownfield Remediation
program for an estimated assistance level of $1,215,260 over a 10 year period.
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Terry Boutilier, MCIP, RPP
Brownfield Co- ordinator &
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
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