HomeMy WebLinkAboutCAO-05-042 - Addendum to CAO-05-037 - Financial Incentives Policy - Facade/Interior Loan Upper Storey Renovation
J
~
Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Council
November 6, 2005
Rod Regier, Executive Director, Economic Development
Silvia Wright, Manager, Downtown Community Development
Ward 1 and Ward 6
November 3, 2005
CAO-05-042
ADDENDUM TO CAO-05-037 - FINANCIAL INCENTIVES
POLICY - FACADE/INTERIOR LOAN AND UPPER STOREY
RENOVATION PROGRAM
RECOMMENDATION:
For Council information
REPORT:
At the Finance & Corporate Services meeting of October 31, 2005, further information was
requested relating to the policy for Fa<;ade/lnterior Loan and the Upper Storey Renovation
Program.
Multiple Incentives Funding as Percent of Total Project
The general policy states "that an applicant can apply for either or both programs, as well as
other available incentives but, the total value of all forgivable loans/rebates under the City's
Downtown Financial Incentives Program shall not exceed the cost of rehabilitating the lands and
buildings." Three sample cases have been developed to demonstrate the possible scenarios of
'layered' incentive participation, combining Upper Storey, Fa<;ade/lnterior and Rebate programs.
In summary, the cases represent a range of project sizes. The results of the analysis are as
follows:
Total Project Costs*
Total Incentive Value Project %
Case 1 :
Case 2:
Case 3:
40%
32%
28%
$65,000
$142,000
$270,000
$26,000
$45,200
$76,750
* costs based on maximum incentives at each level of project scope and cost
Please see the next page for detailed breakdown of each application case:
SAMPLE INCENTIVE
* APPLICATIONS
CASE 1 SAMPLE SUBMISSION: Minimum Project
DOWNTOWN INCENTIVES
Concrete, Masonry, Metals
Plaster Restoration
Mechanical 1 HV AC
Plumbing
Sprinkler
Electrical
Millwork
Fire Proofing
Doors/Fram es/Hardware
Partitions & Ceilings, acoustic.
Floor Coverings
Paint: Interior
Final Cleaning
Asbestos Abatement Allowance
Contingency
Entrance restoration (interior)
Fagade Exterior
$1,000
$3,000
$5,000
$2,000
$2,000
$4,000
$2,000
$2,000
$1,000
$3,900
$1,100
$1,000
$500
$4,500
$7,000
Upper Storey Costs:
$6,000
9,000
Fagadel Interior Costs: $15,000
fs Architect, structural engineer, fees
Building permits, fees, charges
$5,000
5,000
Total Project Costs:
$65,000
Other Costs: $10,000
FUTURE TAX INCREASE (3 yrs):
1,500
Upper Storey Loan> 1/2 project
estimate
(Less repayment 50% in 10 yrs)
Fagade 1 Interior Loan
(Less repayment 85% in 5 yrs)
Feasibility Study Grant
Permit 1 Fee Rebates Iwaives
Future Tax Rebates (3 yrs)
Heritage and other
Total Downtown Incentives
As percent of total project cost:
$40,000
* code for incentives
$20,000
(10,000)
15,000
(12,750)
5,000
5,000
750
3,000
$26,000
40.00%
upper
storey
f = fagade
fs = feasibility
rebate
Iwaive
SAMPLE INCENTIVE
* APPLICATIONS
CASE 2 SAMPLE SUBMISSION: Medium Project
DOWNTOWN INCENTIVES
Project Administration
Temp. construction (Site protection)
Concrete, Masonry, Metals
Plaster Restoration
Mechanical 1 HV AC
Plumbing
Sprinkler
Electrical
Millwork
Fire Proofing
Doors/Fram es/Hardware
Partitions & Ceilings, acoustic.
Floor Coverings
Paint: Interior
Final Cleaning
Asbestos Abatement Allowance
Contingency
Entrance restoration (interior)
Fagade Exterior
$1,200
800
6,000
5,000
15,000
4,000
3,000
7,000
2,000
3,000
2,000
10,000
3,000
2,000
1,000
20,000
15,000
Upper Storey Costs:
$100,000
$14,000
16,000
Fagade 1 Interior Costs: $30,000
fs Architect, structural engineer, fees
Building permits, fees, charges
$5,000
7,000
Total Project Costs:
$142,000
Other Costs: $12,000
FUTURE TAX INCREASE (3 yrs):
1,500
Upper Storey Loan> 1/2 project
estimate
(Less repayment 50% in 10 yrs)
Fagade 1 Interior Loan
(Less repayment 85% in 5 yrs)
Feasibility Study Grant
Permit 1 Fee Rebates Iwaives
Future Tax Rebates (3 yrs)
Heritage and other
Total Downtown Incentives
As percent of total project cost:
* code for incentives
$50,000
(25,000)
30,000
(25,500)
5,000
7,000
750
3,000
$45,250
31.87%
upper
storey
f = fagade
fs = feasibility
rebate
SAMPLE INCENTIVE
* APPLICATIONS
CASE 3 SAMPLE SUBMISSION: Maximum Project
DOWNTOWN INCENTIVES
Upper Storey Loan> 1/2 project
estimate $100,000
Project Administration
Temp. construction (Site protection)
Concrete, Masonry, Metals
Plaster Restoration
Mechanical 1 HV AC
Plumbing
Sprinkler
Electrical
Millwork
Fire Proofing
Doors/Fram es/Hardware
Partitions & Ceilings, acoustic.
Floor Coverings
Paint: Interior
u Wheel Chair Lift
Final Cleaning
Asbestos Abatement Allowance
Contingency
$2,000
1,000
5,000
12,000
23,000
10,000
8,000
18,000
6,000
3,000
5,000
20,000
5,000
3,000
28,000
1,000
20,000
30,000
Upper Storey Costs:
$200,000
Entrance restoration (interior) $15,000
Fagade Exterior 27,000
Glass & Glazing 3,000
Fagade 1 Interior Costs: $45,000
fs Architect, structural engineer, fees
Building permits, fees, charges
$15,000
10,000
Total Project Costs:
$270,000
Other Costs: $25,000
FUTURE TAX INCREASE (3 yrs):
4,000
(Less repayment 50% in 10 yrs)
Fagade 1 Interior Loan
(Less repayment 85% in 5 yrs)
Feasibility Study Grant
Permit 1 Fee Rebates Iwaives
Future Tax Rebates (3 yrs)
Heritage and other
Total Downtown Incentives
As percent of total project cost:
* code for incentives
(50,000)
45,000
(38,250)
5,000
10,000
2,000
3,000
$76,750
28.43%
upper
storey
f = fagade
fs = feasibility
rebate
Rationale for 0% Interest in First Two Years of Program Life
It was determined that to maximize participation in the program and accelerate support for
downtown revitalization, 0% would be offered as additional incentive for the first two years.
Currently the Upper Storey Renovation and Fa<;ade/lnterior Loan Programs are offered at 0%
interest for the first two years, as per approvals of the Community Improvement Plan by-laws
(April 2005) The Upper Storey Renovation Program (April 2005), and the updated terms for the
Fa<;ade/lnterior program (April 2005.)
As requested by Council, Report CAO-05-003, April 25, 2005 and Report CAO-05-14 was
approved to change the last three years of the program from 0% to prime +.5%, supporting
early participation and rebuilding the fund through future borrowing conditions. As indicated in
the initial business case, the return on investment through increased tax assessment will
exceed potential gains from interest charges during the first two years. Please see attached
reports as reference.
Upper Storey Renovation Program Application Timelines and Process
The Economic Development Investment Fund has identified and approved $1,000,000 for the
purpose of downtown residential intensification through upper storey renovation.
Applications will be accepted from November 15, 2005 to February 28, 2006. They will be
opened after February 28 and reviewed by an interdepartmental review committee of staff to
consider required documentation, eligibility criteria and ranked with a rating sheet for best
suiting revitalization objectives in the downtown. In the event of tied score applications and
limited fund availability, the earliest dated application will be selected. Please see all
attachments to this report to review: applications, rating sheet, C.I.P. boundaries.) In the first
application period $400,000 will be available as accumulated funding through EDIF schedules.
The expected fund activity timeline is as follows:
Application Period:
November 2005 to February 2006 $400,000
November 2006 to February 2007 $200,000
November 2007 to February 2008 $200,000
November 2008 to February 2009 $200,000
Total fund: $1,000,000
Silvia Wright
Manager of Downtown Community Development
Rod Regier, Executive Director
Economic Development
Attachments:
CAO-05-037 - FCS October 31 , 2005
Financial Incentive Applications Forms, Rating Forms