HomeMy WebLinkAboutCAO-08-008 - Region of Waterloo - Kitchener Brownfield Remediation Community Improvement Plani
KITCHENER - . • -
ChiefAdministrator's
Office
Report To: Development and Technical Services Committee
Date of Meeting: June 16, 2008
Submitted By: Kathy Weiss, Director of Business Development
Prepared By: Terry Boutilier, Senior Business Development Officer and
Brownfield Co-ordinator
Wards Involved: City Wide
Date of Report: May 14, 2008
Report No.: CAO-08-008
Subject: Region of Waterloo -Kitchener Brownfield Remediation
Community Improvement Plan
RECOMMENDATION
1. That the "Kitchener Brownfield Remediation Community Improvement Plan", approved by the
Ministry of Municipal Affairs and Housing on November 27, 2003; and amended by the Ministry
of Municipal Affairs and Housing on March 31, 2008 be amended as follows:
a} The existing Table of Contents and Sections 1 to 6 of the Kitchener Brownfield
Community Improvement Plan is renamed as "Section 2 -Kitchener Brownfield
Community Improvement Plan 2003 - 2008"; and
b} Anew Table of Contents and Sections 1 to 6 entitled "Section 1 -Region of
Waterloo -Kitchener Brownfield Remediation Community Improvement Plan" is added,
as shown in Schedule "A" attached.
BACKGROUND
On November 27, 2003 the Minister of Municipal Affairs and Housing approved Kitchener's first
Brownfield Remediation Community lmprovement Plan. In 2006 it was necessary to process
an amendment to the Plan as it related to the definitions around Criteria and Eligibility. The
Minister approved of our request for an Amendment on March 2l, 2006.
In 2005 Kitchener Staff began to work with other levels of government to increase the level of
financial resources which could be applied to Kitchener Brownfields lands. City Council initiated
a successful `municipal resolution" campaign through AMO #o initiate legislative reform as it
relates to Two-Tier municipal brownfield financing. In August of 2006 Kitchener Staff appeared
before the Province of Ontario's Legislative Committee of Bill 51 to support the Province's
proposal to give legislative authority to Ontario Regions to participate in CIPs.
In October, 2006 Regional Council approved of the introduction of the Regional Brownfields
Financial incentive Pilot Program. The Pilot Program provided for a limited amount of grants for
the cost of a Phase 2 Environment Site Assessment. In January of 2007 the Province of
Ontario approved and enacted Bill 51, formally enabling Regional governments to participate in
Community Improvement for their own regional functions, and to participate financially in their
Area municipalities" programs under Section 28 of the Planning Act. In late 2006 and
throughout 2007 Kitchener Staff worked with Staff of the Region of Uvaterloo and a retained
consultant, Hemson Consulting, to prepare a new comprehensive Brownfield Financial Program
which all municipalities in the Region could use. Consultations were held with Kitchener's
Economic Development Advisory Committee (EDAC) in August, 2001 and with Kitchener's
Development and Technical Services Committee (DTS) in September, 20D7.
The revised Draft Regional-City CI Plan Template was presented to the Region of VIlaterloo
Planning, Housing and Community Services Committee on December 4, 2001 for information.
Since that time, the Regional Brownfield V1lorking Group has worked with the Ministry of
Municipal Affairs and Housing Staff to finalize the CI Plan Template which all Region of
V1laterloo municipalities will use. This Amendmen# will amend Kitchener's current CI Plan to
incorporate the new Region of Waterloo Brownfields Financial incentives.
REPORT
The proposed Amendment to the Kitchener Brownfield Community Improvement Plan is the
culmination of a three year effort to develop a joint Region and City Brownfield program. The
City's current program is limited in its effectiveness in that:
1. All financial assistance is provided after the project is complete thereby requiring applicants
to absorb upfront all costs; and
2. The City can provide Tax Incremental Financing (TIF} using only the City's portion of
property tax bill which limits the amount of remediation which can be undertaken.
To address the fi t issue, the proposed Region-City Brownfield program will enhance
Kitchener's Program by providing financial assistance to applicants earlier on in the remediation
redevelopment process in two ways.
• The Region of Waterloo will provide a grant of 50%, to a maximum of $40,000, to partially
offset the cost of a Phase 2 Environmental Site Analysis.
• The Region of Waterloo will waive Re Tonal Development Charges for Brownfield properties
outside of the Downtown} to an amount equal to the Total Eligible Remediation Cost. This
is a significant improvement as Development Charges are payable at the Building Permit
stage of the development process. (Note that the City Development Charge does not
change}.
To address the second issue, the proposed Region-City Brownfield Program will use a Tax
Incremental Grant ~TIG} formula that incorporates both the City's and Region's portion of the
property tax bill. The total value of the TIG will deduct the financial assistance obtained above
(i.e. Phase 2 ESA Grant, and Regional DC Credit). The balance of the Eligible Remediation
Cost would then be shared between the City and the Region proportionately in accordance with
the applicable Assessment category. The best way to illustrate is through an example.
EXAMPLE - Redevelopment of industrial property for 178 Townhouses with
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an Eligible Remediation Cost of $3,000,000.
Table 1
Before After
Pro'ect
Remediation Com letion Increment
Assessment $1,250,000 29,000,000 27,150,000
Taxes
Kitchener 11,282 132,808 121,526
Re ion 16 903 198 966 182 063
Kitchener +
Re ion
$28,185
331,114
303,589
Education 21,348 85,840 58,492
Total Taxes 55,533 417,614 362,081
Under the current Kitchener Brownfield CI Program, Kitchener would provide Tax Incremental
Financing equal to City Increment (121,526) over 10 years or $1,215,264. This represents
about 40% of the Eligible Remediation Cost (i.e. cost of environmental clean-up.)
Under the proposed Amendment, the value of the Regional Phase 2 ESA Grant ($40,000), and
the Regional Development Charge is first deducted, and the balance, if any, becomes the value
of the Region-City TIG, as follows:
Table 2
Eligible Remediation Cost 3,000,000
Other Assistance
Regional ESA Grant 40,000
Regional DC Credit 8411814
Less Total Other Assistance 887,,,._
Net Eligible Remediation Cost for TIG 2,112,186
The City and Regional Increments are then applied to the $2,112,186.
Table 3 -
TIG Cost
Sharin
Kitchener
Re ion
Total TIG
Year 1 to 6 121, 626 X 6 182, 063 X6 303, 589 X6
Year 1 to 6 729,156.00 1, 092, 318.00 1, 821, 534.00
Year l 116 341.00 134 304.00 250,651.00,
Total 845,503.00 1,226,682.00 2,112,186.00
Of note:
• 100% of the cost of clean-up has been covered compared to 40% under the current
Program
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~ Kitchener's share of the incentive funding of the total $3 million clean up is $845,503., all in
the form of the City portion of the Region-City TIG.
• The combined TIG is repaid in l years.
The Kitchener Brownfield Program Steering Committee, consisting of Terry Boutilier Chair),
Joyce Evans Finance), Jeff Willmer ~DTS), and Lesley MacDonald Legal} reviewed and
approved this proposed Amendment to on May 1, 2008.
The current Kitchener Brownfield Community Improvement Plan will be moved to Section 2 of
the Plan, as a reference document for those applications which were approved by City Council
between the years of 2003 and 2008.
FINANCIAL II~IPLICATI4NS
The adoption of this new Community Improvement Plan provides for the sharing of financial
incentives between the City of Kitchener and the Region of Waterloo for all for future Brownfield
applicants.
COMMUNICATIONS
This Staff Report's recommendations were advertised in the Waterloo Region Record on May
23, 2008 Appendix "B") The draft Community Improvement Plan Template was circulated to
all Departments, public agencies, EDAC Members, and Neighbourhood Associations on April 3,
2008. The Notices and responses are in Appendix "D" attached.
Prior to the preparation of the new Program, the Region of Waterloo held a Roundtable
Discussion WorkshoplForum with key community representatives. The Minutes of the
Workshop are enclosed in Appendix "D" attached. The Draft Program was previously
presented to Kitchener's Economic Development Advisory Committee in August 22, 2001 and to
Kitchener's DTS Committee in September 24, 2007.
C4NCLUSIDN
Amending the Kitchener Community Improvement Plan, as recommended, provides for an
improved, coordinated, and cost-effective local government solution to providing financial
incentives for Brownfield renewal.
4
erry Boutili
Senior Business Development Officer &
Brownfield Co-ordinator
Rad Regier
Executive Director of Economic Development
ATTACHMENTS:
Kathy eiss
Director of Business Development
• SCHEDULE "A" -Proposed Amendment to C! Plan
• SCHEDULE "B"- Kitchener Munr'cipal Plan Community lmprovement Policies
• Appendix "A" -Newspaper Advertisement--May 23rd, 2008
• Appendix "B" -Proposed Bylaw
• Appendix "C" -- Public & Agency Circulation and Responses
• Appendix "D" -Draft Kitchener T!G Program Process Chart
SCHEDULE "A"
Section 1-Region of Waterloo -Kitchener
Brownfield Community Improvement Plan
TABLE OF CONTENTS
1.0 INTRODUCTION
1.1 Background
1.2 Rationale for Brownfield Redevelopment
2.0 LEGISLATIVE AND PLANNING AUTHORITY
2.1 Bill 51
2.2 Planning Act and Municipal Act
2.3 City of Kitchener Municipal Official) Plan
2.4 Region of Waterloo Official Policies Plan
3.0 COMMUNITY IMPROVEMENT PLAN
3.1 Purpose
3.2 Community Improvement Project Area
3.3 Goals
4.0 REGION-CITY TAX INCREMENT GRANT (TIG) PROGRAM
4.1 Regional Brownfields Financial incentives Pilot Program Background
4.2 Program Description
4.3 What is a Remediated Brownfield?
4.4 Eligibility Requirements
4.5 Eligible Costs
4.6 Duration of TIG Program
4.l Program Administration
4.8 Monitoring
5.0 BROWNFIELDS FINANCIAL TAX INCENTIVE PROGRAM (BFTIP)
5.1 Program Description
5.2 What is a Brownfield?
5.3 Eligibility Requirements
5.4 Eligible Costs
5.5 Duration of the BFTIP Program
5.6 Program Administration
fi.0 APPENDIX
1
1.0 INTRODUCTION
1.1 Background
The original City of Kitchener Brownfield Community Improvement Plan was prepared in 2003
and approved by the Council of the Corporation of the City of Kitchener on July 2, 2003 by
Bylaws 2003-~ 40 and 2003-141; and approved, with modifications, by the Ministry of Municipal
Affairs and Housing on November 2l, 2003.
The Kitchener Brownfield CIP was revised by Bylaw 2006-62, adopted on February 2l, 2006
and the revision was approved by the Ministry of Municipal Affairs and Housing on March 31,
2oa6.
In October of 2006 Region of Waterloo Council gave direction to Staff to establish a Regional
Brownfields Working group, and prepare a Regional Brownfield Program, in collaboration with
all area municipalities. The new Region-City Program would provide a mare comprehensive
financial assistance Program to replace current area municipal programs operating in Kitchener
and Cambridge.
This Amendment amends all provisions of Kitchener's existing Brownfield CIP, effective the date
of approval of the applicable By-law by City Council.
1.2 Rationale for Brownfield Redevelopment
Waterloo Region has a long history of industrial, manufacturing, and commercial development.
While most businesses originally located within the core areas of Cambridge, Kitchener, and
Waterloo where industrialization first occurred, some also established on sites #hroughout the
Region's towns, villages, and countryside. Such development followed the ethics of the day,
having little to no knowledge of, and in some cases regard for, the long term implications of their
day-to-day business practises. As a result, there are now a number of properties throughout
Waterloo Region which sit vacant, are underutilized or have all together been abandoned due to
environmental contamination from former uses.
Contaminated lands, commonly referred to as "brownfields", are often overlooked as
opportunities for redevelopment due to the significant financial costs, timing uncertainties and
liability associated with clean up. For municipalities, this equates to a loss in property tax
revenue, inefficiencies in use of existing infrastructure, and greater pressure to expand services
to outlying areas. While some brownfields within Waterloo Region have been redeveloped in
recent years, there remain many properties which may be too challenging andlor costly for the
private sector to rehabilitate and redevelop without financial assistance from the various levels
of government.
Brownfield sites pose financial challenges to remediation and redevelopment. In many cases,
the cost of remediation effectively deters private sector redevelopment of these brownfield
opportunities. Uncertainty forces prospective developers to pay for costly environmental studies
and the element of risk makes lenders reluctant to advance capital or causes them to impose
higher interest rates on loans. Brownfield redevelopment can also be hampered by higher legal
and insurance costs to protect against future liability associated with brownfields. At the end of
the day, clean-up costs can exceed the value of clean land, thus making the majority of
brownfield sites unattractive from a market perspective.
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These financial barriers to brownfield redevelopment are not unique to Waterloo Region. The
Provincial Growth Plan for the Greater Golden Horseshoe (2006}, which strives to reduce the
outward movement of the urban area through intensification, recognizes that brownfield
redevelopment is a cornerstone for implementing the intensification objectives of the Province.
The Growth Plan recognizes that brownfields represent prime redevelopment opportunities
wi#hin the built-up area. Redeveloping these sites effectively makes higher and better use of
existing urban land and its supporting infrastructure and services.
Successful brownfield redevelopment can also result in significant public benefits. Brownfields
are often centrally located --in downtowns and near transit nodes- so if redeveloped they can
revitalize older neighbourhoods, and accommodate housing and employment. Remediation of
sites also contributes to public health and safety by removing soil and groundwater
contaminants, thereby reducing the risk to groundwater resources. In addition, rehabilitating and
redeveloping brownfields can increase the tax assessment base of the site, the neighbourhood
and the community as a whole.
2.0 LEGISLATIVE AND PLANNING AUTHORITY
2.1 Bi1151
The Planning and Conservation Land Statue Law Amendment Act, 2006, (Bill 51 }, which came
into force and effect on January 1, 2001', introduced numerous amendments to the Planning
Acf, 1990 that provide additional tools for the implementation of provincial policies and give
further support to sustainable development, intensification and brownfield redevelopment.
Under the Act, the Region of Waterloo now has the abili#y to participate in Area Municipal
Community Improvement Plans (CIPs} through the provision of grants or loans to stimulate
private sector development activities (e.g. brownfield redevelopment}.
2.2 Planning Act and Municipal Act
Until recently, the ability to provide financial incentives for brownfield redevelopment within the
Region of Waterloo has been limited to programs developed and implemented by Area
Municipalities through CIPs. Under subsections 106 (1) and (2) of the Municipal Act, 2001
municipalities are prohibited from directly or indirectly assisting any manufacturing business or
other industrial or commercial enterprise through the granting of bonuses. Prohibited actions
include:
i. giving or lending money or municipal property;
ii. guaranteeing borrowing;
iii. leasing or selling any municipal property at below fair market value; and
iv. giving a total or partial exemption from any levy, charge or fee.
However, section 106(3) of the Municipal Acl, 200 provides an exception to this bonusing rule
for municipalities exercising powers under the provisions of Section 28(6) or (l) of the Planning
Act, 1990 or Section 365.1 of the Municipal Acl, 200. Section 28 of the Planning Acl, X990
allows municipalities with provisions in their official plans relating to community improvement to
designate by by-law a "community improvement project area" and prepare and adopt a CIP for
the community improvement project area. Once the CIP is approved, the Municipality may
3
exercise authority under Section 286} or (l } of the Planning Acf or Section 365.1 of the
Municipal Acf, 2001, in order that the exception provided far in Section 1063} of the Municipal
Acf, 200 will apply,
The Planning Act, 1990 provides the statutory framework for the development of CIPs in the
Province of Ontario. Section 28 of the Act permits council to designs#e by by-law the whole or
any part of an area covered by such an official plan as a "community improvement project area"
where there is an official plan in effect that contains such provisions. Under the provisions of
the Act a community improvement project area means a municipality or an area within a
municipali#y, the community improvement of which in the opinion of the council is desirable
because of age, dilapidation, overcrowding, faulty arrangement, unsuitability of buildings or for
any other environmental, social or community economic development reason.
Specific provisions in Section 28 of the Act provide that for the purpose of carrying out a CIP,
municipalities may acquire, hold and sell land; and construct, repair, rehabilitate and dispose of
buildings thereon. They may also provide grants or loans to registered owners, assessed
owners and tenants of lands and buildings within the community improvement project area, and
any person to whom such an owner or tenant has assigned the right to receive a grant or loan,
to pay for the whole or for any part of the cost of rehabilitating such lands and buildings in
conformity with the community improvement plan.
2.3 Area Municipal Official Plan
The policies in Part II Section 5.4 - `Community Improvement' of the City of Kitchener Municipal
Plan (1998} provide a local planning framework for the formulation, adoption, and
implementation of CIPs. These policies set out the rationale and goals for community
improvement and how they will be accomplished. This includes the criteria to be considered
when designating a community improvement project area and the range of actions that Council
may initiate to implement CIPs. Depending on the purpose for which it is designated, a
community improvement project area may be the entire municipality or any part thereof. The full
text of Par# II Section 5.4 - `Community Improvement' of the Kitchener's Municipal Plan is
contained in Schedule "B".
2.4 Regional Official Policies Plan
According to Section 281.2} of the Planning Acl, 1990, as amended, the Region may provide a
grant or loan to the council of a lower-#ier municipality for the purpose of carrying out a CIP if
there are provisions in the Region's Official Plan relating to the making of such gran#s or loans.
On this basis, the Region amended the Regional Official Policies Plan ~ROPP} in April 2001 to
incorporate the following policy to implement the Region's TIG program through the participation
in Area Municipal CIPs:
Policy 8.2.8 -~ The Region may make grants or loans or provide for other financial
assistance as Regional Council deems appropriate for the purposes of carrying
out such programs as described in an Area Municipal Community Improvement
Plan.
In June 2003, the Region of Waterloo approved the Regional Growth Management Strategy
(RGMS},along-term planning framework that defines where, when, and how future populations
and employment will occur in the Region. Developed in consultation with community partners
4
and stakeholders, the RGMS seeks to accommodate growth yet protect those features unique
to the Region.
One of the objectives of the RGMS is to achieve more efficient use of land and infrastructure
through reurbanization. By promoting balanced growth, including more compact and transit-
oriented development in the existing urban areas, the Region, the Area Municipalities, and the
development industry are expected to reap a number of social, environmental, and economic
benefits. The RGMS includes the preparation of a brownfield redevelopment strategy, intended
to complement and build on Area Municipal, provincial, and federal initiatives to facilitate
contaminated site clean-up.
3.0 COMMUNITY IMPROVEMENT PLAN
3.1 Purpose
The purpose of this Brownfield Community Improvement Plan is to encourage brownfield
remediation and redevelopment through the implementation of a joint City of Kitchener and
Regional Tax Increment Grant ~TIG} Program and other programs as deemed appropriate.
3.2 Community Improvement Project Area
The Brownfield Community Improvement Plan applies to all lands within the City of Kitchener.
3.3 Goals
The goals of this Brownfield Community Improvement Plan support the brownfield
redevelopmen# goals of the City of Kitchener Official Plan. This Plan is also consistent with
Provincial legislation and the strategic direction of the Region of Vllaterloo.
The goals of the Community Improvement Plan are as follows:
• Stimulate and leverage private and public sector investment to promote the remediation,
rehabilitation, adaptive re-use, and overall improvement of brownfield sites throughout
the municipality;
• Reduce outward expansion and make better use of existing infrastructure by
encouraging the redevelopment of underutilized and vacant sites;
• Increase tax assessment and property tax revenues;
• Improve the physical and visual quality of the municipality;
• Improve environmental health and public safety in areas within which brownfields are
located;
• Retain and increase employment opportunities;
• Increase community awareness of the economic, environmental, and social benefits of
brownfield redevelopment; and,
• Utilize municipal resources to demonstrate leadership in the remediation, rehabilitation,
adaptive re-use, and overall improvement of brownfield sites throughout the municipality.
5
4.0 REGION OF WATERLOO - CITY OF KITCHENER REGIONAL TAX
INCREMENT GRANT PROGRAM
4.1 Regional Brownfields Financial Incentives Pilot Program Background
To address the challenges associated with brownfield revitalization, the Region of Waterloo
established a Brownfield Financial Incen#ives Committee in spring 2005. This committee was
struck in an effort to develop a brownfield program for Vaterloo Region that would augment
existing brownfield incentive programs offered by the Area Municipalities and the Province. The
Commi#tee retained the services of Hemson Consulting Ltd. who reviewed incentive programs
used by other municipali#ies. The Committee also consulted with various stakeholders to gain a
better understanding of the programs currently in place or in the planning stages. The
conclusion from this background research was that the most comprehensive approach to
brownfield remediation and redevelopment is the provision of a package of financial incentives
under the umbrella of a Community Improvement Plan (CIP}. At the time this review was
undertaken, this tool (CIPs) was only available to single-tier municipalities and Area
municipalities in atwo-tier system.
Given the research findings and legislative limitations, the Committee developed the
Brownfields Financial Incentives Pilot Program (BFIPP} consisting of four components:
1. Establishment of a grant program to fund up to 50 percent of eligible costs associated with
the completion of a Phase 2 Environmental Site Assessment up to a maximum of $40,000;
2. Expansion of the Regional Development Charges exemptions to provide for development
charge grants up to the total eligible remediation costs associated with the clean up of
contaminated sites outside of core areas;
3. Development of a joint Regional and Area Municipal Tax Increment Grant Program to help
off-set remediation casts of brownfield sites; and
4. Provision of funding for the Area Municipalities to assist in amending or developing CIPs
which will provide for the implementation of the join#TIG Program.
The goal of the Brownfields Financial Incentives Pilo# Program is to provide financial assistance
for the remediation and redevelopment of brownfield sites to help level the playing field between
greenfield and brownfield development. The Pilot Program was approved by Regional Council
in October 2006 with a budget of $2.5 million.
At the same time, the Province released for discussion a draft regulation under Bill 51 which
would provide for Regional participation in Area Municipal CIPs. In anticipation of the passage
of Bill 51, Regional Council also directed staff to expand the Brownfields Financial Incentives
Committee to include representatives from the Area Municipalities and develop a Tax Increment
Grant (TIG} program. The Committee met throughout the winter and spring of 2001 and, with
the assistance of Hemson Consulting, developed the joint TIG Program. Following the passage
of Bill 51 (which came into effect January 1, 2001}, the joint TIG Program was approved by
Regional Council in June 2007, subject to Area Municipal concurrence. Implementation of this
program is possible through the approval of this CIP.
4.2 Program Description
A TIG is a grant provided to a landowner (or assignee) equal to the full amount, or a portion of
the amount of the tax increase (or increment) in City and Regional property taxes after a
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property is reassessed. The tax increment is calculated using the change in current value
assessment following the completion of the remediation & redevelopment of the property. The
increase in taxes, or tax increment, is based on the estimated increase in the Kitchener and
Regional portions of property taxes and is calculated by subtracting the Kitchener and Regional
portion of property taxes before reassessment pre-remediation & redevelopment) from the
Kitchener and Regional portion of property taxes after reassessment post-remediation &
redevelopment). The difference in taxes, or the increment, is used to provide a grant to the
developer for eligible costs associated with environmental remediation.
The amount of the TIG will equal up to ~ 00% of the City of Kitchener and Regional tax portion of
property taxes per year for a maximum of ten years or the total of all grants, loans and tax
assistance provided equal the cost of remediating the lands and buildings, whichever occurs
first. Calculation of the tax increment grant will occur only after the site has been assessed
post-remediation & redevelopment by the Municipal Property Assessment Corporation ~MPAC).
The TIG will commence in the first year following receipt of the post-remediation &
redevelopment assessment from MPAC. The tax increment does not include assessment
increasesldecreases in municipal taxes due to a general tax rate increaseldecrease, or a
change for any other reason. The TIG also does not exempt property owners from City of
Kitchener or Regional taxes owing prior to, during, and after the remediation and redevelopment
is completed. The total of all grants, loans and tax assistance cannot exceed the cost of
remediating the lands and buildings net of any other government financial assistance received
by the applicant for remediation
Applicants who are approved for a joint TIG would be required to enter into a legal agreement
with the City of Kitchener and the Region. Applicants may include registered owners or
assessed owners of lands and buildings within the community project area, and to any person to
whom such an owner or has assigned the right to receive a grant or loan who will be
responsible for site remediation. For the purposes of this program a "site" consists of one or
more parcels that are park of the brownfield redevelopment project for which the TIG application
is being made. The Applicant responsible for the remediation does not necessarily need to be
the same as the developer who will undertake the redevelopment of the site. The legal
agreement will set out the terms and conditions of payment, obligations of the municipalities and
applicant(s), and the defaults and remedies.
The terms of the TIG are at the discretion of City of Kitchener andlor Regional Council. For
sites which are of exceptional size or complexity, involve phased development, or for those that
will involve very lengthy remediation, the TIG payments and schedule may be set on a case by
case basis.
Amendments to this program will be carried out as per Section 285) of the Planning Aef, 1990,
in the following cases:
• A change or expansion in the geographic area to which financial or land programs
outlined in this CIP apply;
• A change in the eligibility criteria;
• the addition of new municipal assistance programs involving grants, loans, tax
assistance or land; and or
• An increase to a financial incentive to be offered within a CIP program.
7
4.3 What is a Remediated Brownfield?
Many municipalities have developed a working definition for the term "brownfield" to assist in the
implementation of financial incentive programs. Brownfields have most commonly been defined
as sites which are abandoned, vacant or underused where redevelopment is complicated by
real or perceived environmental contamination.
In developing a definition for the joint TIG Program, the Brownfield Financial Incentives
Committee developed aperformance-based definition that must be met before any TIG
agreement is finalized. As only brownfield sites that have been remediated and redeveloped
would be eligible to receive TIG funding, the term "remediated brownfield" has been defined as
follows:
"A property which contained environmental contamination either in the ground or
buildings due to the operational activities of a previous land use, where the
extent of the contamination rendered the property vacant, under-utilized, unsafe,
unproductive or abandoned, and for which a Record of Site Condition has been
filed. "
It is recognized that some brownfield sites will not meet this definition at the time of the initial
TIG application because site remediation is not yet complete. Only once the City of Kitchener
and Region of Vvaterloo receives acknowledgment from the Ministry of the Environment that the
RSC has been filed, will the brownfield site be considered "remediated". This condition is a
prerequisite before the legal agreement outlining the TIG payments and scheduled can be
finalized and any payments issued.
4.4 Eligibility Requirements
To be eligible for the joint TIG Program, all of the following criteria must be met:
1. The site must be located within the designated City of Kitchener Community Improvement
Project Area;
2. The applicant must be the registered owner of the site or the assignee of the owner and
must demonstrate clear title and responsibility for the land at the time the TIG is approved
by City of Kitchener and Regional Council;
3. The applicant cannot be responsible for causing the on-site contamination that requires
remediation;
4. The remediation and redevelopment undertaken must result in a minimum increased
property assessment value of $100,000;
5. The Phase I and Phase II Environmental Site Assessments must be completed by a
"Qualified Person" as defined by Ontario Regulations 153104 before a TIG application can
be submitted;
6. Redevelopment plans must meet all approved policy and should comply, where feasible and
appropriate, with applicable design guidelines;
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1. The site must not be in a position of tax arrears or have any other outstanding municipal
financial obligations; and
S. Application for a Tax Increment Grant must be made prior to the issuance of a building
permits} for the redevelopment. Exceptions will be considered in cases where a building
permit was issued after March 1, 2008 but before the corresponding Area Municipal
Community Improvement Plan authorizing the joint Tax Increment Program was established.
4.5 Eligible Costs
Eligible brownfield remediation costs shall include:
1. Phase I Environmental Site Assessments;
2. Phase II Environmental Site Assessments excluding any portion already funded by the
Region of Waterloo under its Phase II ESA Grant Program};
3. Environmental remediation work identified in a remediation work plan, excluding work
completed more than 12 months prior to the filing of an application. Remediation work
would include, but is not limited to:
a) Remedial work plans;
b} Risk assessments;
c) Environmental Rehabilitation;
d} Disposal of contaminated soil;
e} Placing of clean fill and grading; and
f} Building demolition related to remediation.
4, Indirect Remediation Casts to a maximum of 10% of eligible brownfield remediation costs.
Such indirect costs related to remediation can include planning fees, legal costs, financing
costs associated with remedia#ion, insurance premiums, assessment estimates, and the
preparation of Record of Site Condition;
The applicant must provide estimates, prepared by qualified professionals, of the cost of
remediating the site to permit the filing of a Record of Site Condition, the cost of complying with
any certificate of property use issued under the Environmental Protection Act, and the cost of
any proposed building conversion or rehabilitation proposal, all of which must be prepared by a
qualified professional. The Ci#y and Region reserve the right to independently audit the actual
costs at the expense of the property owner.
Note that TIGs are not intended to cover any redevelopment costs.
4.fi Duration of T1G Program
The Brownfield Financial Incentive Pilot Program that was approved by Regional Council in
October 2006. Development of the joint TIG program became possible on January 1, 2001
when Bill 51 came into effect allowing for the participation of the Region in Area Municipal
Community Improvement Plans. The joint TIG Program will commence on or after the approval
of this or any other appropriate Area Municipal CIP which provides funding for brownfield
9
remediation and redevelopment and allows for Regional participation. Regional Council
allocated a budget of 2.5 million dollars to fund the Brownfields Financial Incentives Pilot
Program in the 2006 budget. Once these funds have been expended or committed, Regional
Council may elect to extend the Regional participation in the joint TIG Program as it deems
appropriate, subject to the availability of funding as approval by Council.
Year 1 of the TIG Program will be defined as the first calendar year that taxes are paid by the
property owners} after the project is completed (i.e. after the site has been assessed by MPAC
post-remediation & redevelopment}.
The City of Kitchener may discontinue its participation in this joint TIG Program at any time
without an amendment to this Plan. Any participants in the program prior to its cancellation will
continue to receive the grant payments as approved by City of Kitchener Council.
The Region may discontinue its participation in the joint TIG Program at any time without an
amendment #o this Plan. Any participants in the program prior to its cancellation will continue to
receive the grant payments as approved by Regional Council.
4.l Program Administration
1. All TIG Program applications shall be submitted to the respective Area Municipality in
which the brownfield site is located, prior to the issuance of the applicant's first building
permit. Exceptions will be considered in cases where a building permit was issued after
March 1, 2008 but. before the corresponding City of Kitchener Community Improvement
Plan authorizing the joint Tax Increment Program was established or amended.
Applications can be submitted at any point prior to or during remediation. In the case
where there has been a Community Improvement Plan that specified the intent to
promote brownfield remediation and redevelopment in place for longer than one year,
costs incurred within the 12 months prior to an application will be considered an eligible
cos#. Where no such previous Community Improvement Plan existed, only costs incurred
after the Community Improvement Plan comes in to effect will be considered an eligible
cost. Applicants are encouraged to consult with the City of Kitchener and Regional staff
prior to submitting the application.
2. Such applications shall include:
• A Phase I and Phase II Environmental Site Assessments and estimates for the
eligible remediation casts, to be completed by a "Qualified Person" as defined by
Ontario Regulation 153104;
• A project description and redevelopment plans;
• A Remedial Work Plan andlor Risk Assessment which includes a work plan and
cost estimate completed by a "Qualified Person" of the action to be taken to
address the contamination; and
• Any other details as may be required to satisfy the City of Kitchener and the
Region of Waterloo with respect to the pre-remediation & redevelopment
assessment value, estimated eligible costs and conformity of the project with the
Community Improvement Plan. The City of Kitchener and the Region reserve the
right to obtain an independent third party to review the proposed costs, at the
expense of the applicant.
10
3. The TIG Program application will be reviewed by appropriate Kitchener and Regional
staff to determine if it is complete. Once deemed to be complete, the application will be
date stamped to establish the pre-remediation & redevelopment assessment date and
cost eligibility date.
4. The TIG program application is reviewed for eligibility by the Area Municipality and the
Region. If the TIG Program eligibility requirements are met, Kitchener Staff will prepare
an estimate of the annual TIG payments (Kitchener and Regional portions) and payment
schedule (including TIG reductions due to other assistance for brawnfield remediation).
Kitchener will forward the estimated TIG payment, schedule and recommendation to
Regional staff for review.
5. Both Kitchener and Regional Councils will consider recommendation reports submitted
by their respective staff and approve or refuse their portion of the grant.
6. All successful applicants will enter into a formal legal agreement (draft} with the City of
Kitchener and the Region. The draft legal agreement will specify the terms and
conditions of payment, obligations of the municipalities and applicant, and the defaults
and remedies. If the applicant does not comply wi#h all conditions of the TIG Program
agreement and other relevant municipal requirements, all financial incentives, assistance
and grant provided will be repaid to the City of Kitchener and Region with interest.
7. Upon completion of the site remediation, the applicant will file a Record of Site Condition
with the Ministry of the Environment (MOE}. The applicant will provide a copy of the
MOE's acknowledgement and Record of Site Condition to the City of Kitchener.
8. The applicant will provide invoices of all eligible costs in relation to site remediation to
the City of Kitchener. The City of Kitchener will forward copies of the invoices and the
MOE's acknowledgement of the RSC to the Region. This must be completed before the
site is considered a "remediated brownfield" and the legal agreement can be finalized.
9. Once the project is complete and the property has been assessed by MPAC, the
applicant will be issued a new tax notice based on the post-remediation &
redevelopment assessment value. The applicant will submit the post-remediation &
redevelopment assessment notice to The City of Kitchener. The City of Kitchener will
forward the post-remediation & redevelopment assessment to the Region.
10. The actual annual and total TIG payments will be established, by the City of Kitchener
and the Region and the draft legal Agreement will be modified accordingly and then
finalized.
11. After the current property owners} has paid the taxes in full for one (1 }full year, the City
of Kitchener will confirm that the property is not in a position of tax arrears or has any
other outstanding municipal financial obligations and all other requirements of the TIG
Program Agreement and CIP have been met.
12. The City of Kitchener will issue the first annual payment of the City of Kitchener and
Regional portions of the TIG to the applicant. The Region will reimburse the City of
Kitchener for its portion of the TIG payment. The current property owner(s) will pay
property taxes for the site at its post-remediation & redevelopment assessment value.
11
Annual TIG payments continue as per the payment schedule outlined in the final TIG
legal agreement.
4.8 Monitoring
The joint TIG Program will be evaluated from time to time by Regional Council. The purpose of
the monitoring is to determine the effectiveness of the TIG Program in relation to the goals of
the CIP, identify Program modifications as required, and assist Council in determining
continuation of the TIG Program.
Monitoring the CIP may lead to revisions to the Regional TIG Program through amendment to
the Plan. Changes to the program will be provided to the Minister of Municipal Affairs and
Housing for information purposes only.
5.0 BROWNFIELDS FINANCIAL TAX INCENTIVE PROGRAM (BFTIP)
5.1 Program Description
The Brownfields Financial Tax Incentive Program (BFTIP) is a provincial funding program that
provides matching education property tax assistance to eligible brownfield property owners
under section 365.1 of the Munrcrpa! Act, 2009. Assistance provided through BFTIP is
conditional upon, and is matched to, brownfield property tax assistance (tax cancellation or
deferral} that is provided by a municipality.
The property tax assistance provides for the exemption of up to 100 % of Kitchener taxes levied
for the period immediately following the approval of the Property Tax Assistance By-Law and
continuing during the Rehabilitation Period and Development Period. The BFTIP applies only to
eligible properties and is subject to Ministry of Finance approval for the education portion. The
Timing and conditions that apply to the matching education property tax assistance may vary
from those far the municipal property tax assistance. Further, the amount of tax assistance
provided will be determined during the Application Phase to ensure that the value of the tax
exemption does not exceed rehabilitation costs over a time period specified by the Property Tax
Assistance By-Law.
The Munrcipa! Act, 2009 and the BFTIP requires the following:
• That tax assistance be suspended for a subject property where a landowner has not
paid all of the #axes on a subject property for the previous years in the Rehabilitation and
Development Periods (subject to any specific exceptions provided for in the Property
Tax Assistance By-Law or in a Brownfields Site Agreement under the by-law};
• That the tax assistance becomes liable for payment in full, with interest, for all tax
assistance granted during the Rehabilitation and Development Periods for the property,
where the landowner defaults on the Property Tax Assistance By-Law or the Brownfields
Site Agreement requirements;
• That landowners file with the City of Kitchener an annual update of the reporting on the
environmental contamination, the rehabilitation activities, the estimated costs, and the
time estimates outlined under Ontario Regulation 214/04 of the Municipa! Act 2009; and
• That the City of Kitchener forward the annual update to the Minister of Finance within 30
days of the anniversary of the start date of the tax assistance.
12
The City of Kitchener porkion of the property tax assistance will terminate on the date that the
Occupancy Period begins or such earlier period otherwise stipulated in the municipal Property
Tax Assistance By-Law.
5.2 Wha# is a Brownfield?
For the purposes of this Provincial Program, a brownfield is defined as:
A property which contains environmental contamination either in the ground or
buildings due to the operational activities of a previous land use, where the
extent of the contamination rendered the property vacant, under-utilized, unsafe,
unproductive or abandoned.
5.3 Eligibili#y Requiremen#s
To be eligible for this program, the following requirements must be met:
• A phase two environmental sites assessment was conducted for the property;
• A record of site condition ~RSC} cannot be filed for the property because it does not
meet certain Environmental Protection Act standards (the standards lis#ed in clause (b}
of the definition of "eligible property" found in subsection 365.1 of the Municipal Act);
• The property is included in a community improvement project area for which a
Community Improvement Plan, with tax assistance provisions contained in the plan, is in
effect.
5.4 Eligible Cos#s
Eligible Cost for provincial matching education property tax assistance are:
• Any action taken to reduce the concentration of contaminants on, in, or under the
property to permit a Record of Site Conditian (RSC} to be filed;
• Compliance with any Certificate of Property Use issued under the Environmental
Protection Act;
• Environmental consultant fees; andlor
• Property insurance during the remediation period.
5.5 Dura#ion of BFTlP Program
Matching education property tax assistance may be granted for up to three years, and will begin
from the commencement date for municipal tax assistance as stated in the specific Kitchener
tax assistance by-law.
Matching education property tax assistance may be extended for an eligible property if the
municipality applies to the Ministry of Municipal Affairs and Housing for the extension of that
assistance before the matching education tax assistance ends for the property.
13
In addition, the matching education portion of the tax assistance will end in relation to an eligible
property if:
• The eligible property is severed, subdivided, sold or conveyed at any time after the
owner makes application to the municipality under subsection 365.1(8} of the Act; or
• The owner of the eligible property fails to meet any legal requirements that applies to the
owner or to the property in connection with municipal or matching education property tax
assistance including without limitation any conditions in a municipal tax assistance bylaw
that apply to the owner or to the property in connection with municipal or matching
education property tax assistance.
5.6 Program Administration
a) Municipal Portion of Property Tax Assistance
The municipal portion of the property tax assistance is limited to the Rehabilitation Period and
Development Period of the project. This BFTIP assistance is to be implemented for eligible
properties prior to the implementation of the joint Area Municipal and Regional TIG Program.
The municipal portion of the property tax assistance will be undertaken in accordance with the
provisions of Section 365.1 (1) of the Municipal Act, 2001. The municipal portion of the property
tax assistance may start at the beginning of the Rehabilitation Period and run for a period
specified by Council in a by-law, but shall not extend beyond the time periods outlined in
Section 365.1(1 } of the Municipal Act, 2001, or as outlined in the relevant by-law. The purpose
of this tax assistance element is to give financial relief to proponents early in the process as
Remedial Work Plans and land use planning proposals are being prepared and implemented.
b} Regional Portion of Property Tax Assistance
The Region of vVaterloo may match the Area Municipality's tax assistance provided to a
property owner through the Region's portion of the property's tax. Participation in an Area
Municipal Tax Assistance program must be established by way of a resolution by Regional
Council. The Area Municipality must include a copy of the Regional Council resolution as part of
any BFTIP application, made on behalf of the property owner, to the Ministry of Municipal Affairs
and Housing.
c} Education Portion of Property Tax Assistance
The Ministry of Finance may match the municipality's tax assistance provided to a property
owner through the education portion of the property's tax. The exemption may commence at the
start of the Rehabilitation Period, and continue through the Development Period, for a maximum
time period as defined in the relevant by-law, and subject to Program and termination
requirements established by Section 365.1(1 } of the Municipa! Act, 2001. The education portion
of the property tax assistance must be
applied for specifically to the Ministry of Municipal Affairs and Housing prior to any Council by-
lawapproval. The education portion of the property tax assistance may be delivered on a
different timetable from the municipal portion of the property tax assistance for the given
property. The conditions imposed by the Minister of Finance for the education portion of the
property tax assistance under Section 365.1 of the Municipal Act, 2001 may differ from those
outlined in this CIP.
14
6.0 APPENDIX- Notices and Minutes
• Notice of Public Hearing of City Council Development and Technical Services
Committee -May 23rd, 2005 Waterloo Region Record
• Minutes -Public Hearing of City Council Development and Technical Services
Committee, June 16, 2008
t5
SCHEDULE "B"
Kitchener Municipal Plan Community Improvement Policies
and properties that are in need of
5.4 Community Improvement
The community improvement policies contained in
this section of the Official Plan provide the basis for
undertaking community improvement plans and
community development projects to help ensure the
ongoing maintenance, improvement and
rehabilitation of Kitchener's industrial, commercial,
residential and public areas.
Community improvement plans and community
development projects may be undertaken in
conjunction with senior levels of government
funding assistance programs and shall be subject to
the eligibility and implementation regulations of
such programs and the priorities and availability of
municipal funding,
Objective
To maintain, improve and rehabilitate
Kitchener's current and former industrial,
commercial, residential and public areas.
Policies
1. All lands within the City Limits of the City
of Kitchener are considered eligible for
Community Improvement initiatives, and
eligible to be designated as a "Community
Improvement Project Area", pursuant to the
provisions of Section 2$ of the Ontario
Planning Act.
2, Throughout the City of Kitchener, there
exist areas that have one or more of the
following characteristics:
i) The presence of conflicting land
uses;
ii) The presence of old residential,
industrial and commercial buildings
upgrading, rehabilitation, or
replacement;
111) Deficient local parks and recreation
facilities in terms of size, space,
location, access, landscaping,
grading or equipment;
iv) Def dent sanitary sewers, storm
sewers, hydro, water systems or
other infrastructure;
v} Deficient streetscapes in terms of
poor roads, curbs, sidewalk,
boulevards, tree planting, street
furniture and street lighting;
vi) Inadequate flood protection; or
vii} Are in need of environmental, social
or community economic
development,
QFFICIAL PLAN Part 2
November 2005 Page 5-7
A endix "A" - News a er Advertisement
Advertised in The Waterloo Region Record May 23, 2008
CITY OF KITCHENER
COMMITTEE OF COUNCIL DEALING WITH PLANNING MATTERS
INVITES PROPERTY OWNERS AND INTERESTED PARTIES
TO ATTEND A PUBLIC MEETING
TO DISCUSS A PROPOSED AMENDMENT TO THE
CITY OF KITCHENER BROWNFIELD REMEDIATION COMMUNITY IMPROVEMENT PLAN
UNDER SECTIONS ~l & 28 OF THE PLANNING ACT
It is proposed that the City of Kitchener Brownfield Remediation Community Improvement Plan,
approved by the Minister of Municipal Affairs and Housing an March 31, 2006, be amended by:
1. Deleting Sections 1 to 6 of the existing Kitchener Brownfield Community
lm rovement Plan, and adding new Sections 1 to 6, entitled "Introduction; Legislative
p .
and Planning Authority, Community Improvement Plan, Kitchener-Regional Tax
Increment Grant Program; Ontario 8rownfields Financial Tax Incentive Program; and
Appendices".
The purpose of this Amendment is to replace Kitchener's current Brownfield financial incentive
formula with the new Region of Waterloo financial incentive formula which has been
collaboratively developed by The Region and area municipalities. The proposed Amendment
will provide for:
• A reduction of Regional Development Charges, outside the Downtown to offset eligible
site environmental remediation costs;
• A program of Tax Incremental Financing, shared jointly by the Region of Waterloo and
the City of Kitchener;
• A legislative basis under Section 28 of the Planning Act to explore use of the Province of
Ontario Brownfields Financial Tax Incentive Program ~BFT1P).
The public meeting wilt be held by the City's DEVELOPMENT AND TECHNICAL SERVICES
COMMITTEE, a Committee of Council which deals with planning matters on:
MONDAY, JUNE 16, 2008 at 1:00 R.M.
COUNCIL CHAMBERS, 2"d FLOOR, CITY HALL
200 KING STREET WEST, KITCHENER.
Any persons may attend the Public Meeting and make written andlor verbal representation in
respect of the proposed by-law. I# a person or public body does not make oral submissions
at this public meeting or makewritten submissions to the City prior to the approval o#the
by-law, the Ontario Municipal Board may dismiss future appeals.
ADDITIONAL INFORMATION relating to the proposed Amendment is available for inspection
between 8:30 a.m. and 5:00 p.m. at the Small Business Centre Ground Floor, Kitchener City
Hall, 200 King Street West, Kitchener.
Terry Boutilier, Senior Business Development Officer and Brownfield Coordinator
519-141-2303, terry.boutilier@kitchener.ca
Appendix "B"
PROPOSED BY-LAW
June 23, 2008
BY-LAW NUMBER
OF THE
CORPORATION OF THE CITY OF KITCHENER
Being a by-law to amend the City of Kitchener
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;
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 City of Kitchener
Brownfield Remediation Community Improvement Plan was adopted for the said area by By-
law 2003-141, passed on 2nd day of July, 2043, and approved by the Minister of Municipal
Affairs and Housing on the 2lt" day of November, 2003;
AND WHEREAS the City of Kitchener Brownfield Remediation Community Improvement
Pion was amended b B -law 2006-62; passed on the 2lt" day of February, 2006, and
.. y y St
approved by the Ministry of Municipal Affairs and Housing on the 31 day of March, 2006,
AND WHEREAS it is deemed desirable to amend the City of Kitchener Brownfield
Remediation Community Improvement Plan;
NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as
follows:
1. The City of Kitchener Brownfield Remediation Community Improvement Plan is amended by
re-naming the existing Table of Contents and Sections 1 to 6 inclusive as Section 2.
2. The City of Kitchener Brownfield Remediation Community Improvement Plan is amended by
adding the following Table of Contents and Sections 1 to 6 inclusive as Section 1 to the Plan:
TABLE OF CONTENTS
1.0 INTRODUCTION
z
1.1 Background
1.2 Rationale for Brownfield Redevelopment
2.0 LEGISLATIVE AND PLANNING AUTHORITY
2.1 Bill 51
2.2 Planning Act and Municipal Act
2.3 City of Kitchener Municipal (Gfficial~ Plan
2.4 Region of Waterloo official Policies Plan
3.0 COMMUNITY IMPROVEMENT PLAN
3.1 Purpose
3.2 Community Improvement Project Area
3.3 Goals
4.0 REGION-CITY TAX INCREMENT GRANT (TIG) PROGRAM
4.1 Regional Brownfields Financial Incentives Pilot Program Background
4.2 Program Description
4.3 What is a Remediated Brownfield?
4.4 Eligibility Requirements
4.5 Eligible Costs
4.6 Duration of TIG Program
4.l Program Administration
4.8 Monitoring
5.0 BROWNFIELDS FINANCIAL TAX INCENTIVE PROGRAM (BFTIP)
5.1 Program Description
5.2 What is a Brownfield?
5.3 Eligibility Requirements
5.4 Eligible Costs
5.5 Duration of the BFTIP Program
5.6 Program Administration
6.0 APPENDIX
1.0 1NTRODUCTI4N
1.1 Background
The original City of Kitchener Brownfield Community Improvement Plan was prepared in 2003 and
a roved ~by the Council of the Corporation of the City of Kitchener on July 2, 2003 by Bylaws 2003-140
pp
and 2003-141; and approved, with modifications, by the Ministry of Municipal Affairs and Housing on
November 2l, 2003.
The Kitchener Brownfield CIP was revised by Bylaw 2000-02, adopted on February 2l, 2006 and the
revision was approved by the Ministry of Municipal Affairs and Housing on March 31, 2006.
3
In October of 2006 Region of Waterloo Council gave direction to Staff to establish a Regional
Brownfields Working group, and prepare a Regional Brownfield Program, in coClaboration with all area
municipalities. The new Region-City Program would provide a more comprehensive financial
assistance Program to replace current area municipal programs operating in Kitchener and Cambridge.
This Amendment amends all provisions of Kitchener's existing Brownfield CIP, effective the date of
approval of the applicable By-law by City Council.
1.2 Rationale for Brownfield Redevelopment
Waterloo Region has a long history of industrial, manufacturing, and commercial development. While
most businesses originally located within the core areas of Cambridge, Kitchener, and Waterloo where
industrialization first occurred, some also established on sites throughout the Region's towns, villages,
and countryside. Such development followed the ethics of the day, having little to no knowledge of, and
in some cases regard for, the long term implications of their day-to-day business practises. As a result,
there are now a number of properties throughout Waterloo Region which sit vacant, are underutilized or
have all together been abandoned due to environmental contamination from former uses.
Contaminated lands, commonly referred to as "brownfields", are often overlooked as opportunities for
redevelopment due to the significant financial costs, timing uncertainties and liability associated with
clean up. For municipalities, this equates to a loss in property tax revenue, inefficiencies in use of
existing infrastructure, and greater pressure to expand services to outlying areas. While some
brownfields within Waterloo Region have been redeveloped in recent years, there remain many
properties which may be too challenging andlor costly for the private sector to rehabilitate and
redevelop without financial assistance from the various levels of government.
Brownfield sites pose financial challenges to remediation and redevelopment. In many cases, the cost
of remediation effectively deters private sector redevelopment of these brownfield opportunities.
Uncertainty forces prospective developers to pay for costly environmental studies and the element of
risk makes lenders reluctant to advance capital or causes them to impose higher interest rates on
loans. Brownfield redevelopment can also be hampered by higher legal and insurance costs to protect
against future liability associated with brownfields. At the end of the day, clean-up costs can exceed
the value of clean land, thus making the majority of brownfield sites unattractive from a market
perspective.
These financial barriers to brownfield redevelopment are not unique to Waterloo Region. The
Provincial Growth Plan for the Greater Golden Horseshoe X2005), which strives to reduce the outward
movement of the urban area through intensification, recognizes that brownfield redevelopment is a
cornerstone for implementing the intensification objectives of the Province. The Growth Plan
recognizes that brownfields represent prime redevelopment opportunities within the built-up area.
Redeveloping these sites effectively makes higher and better use of existing urban land and its
supporting infrastructure and services.
Successful brownfield redevelopment can also result in significant public benefits. Brownfields are
often centrally located -in downtowns and near transit nodes- so if redeveloped they can revitalize
older neighbourhoods, and accommodate housing and employment. Remediation of sites also
contributes to public health and safety by removing soil and groundwater contaminants, thereby
reducing the risk to groundwater resources. In addition, rehabilitating and redeveloping brownfields can
increase the tax assessment base of the site, the neighbourhood and the community as a whole.
4
2.0 LEGISLATIVE AND PLANNING AUTHORITY
2. ~ Bill 5?
The Planning and Conservation Land Statue Law Amendment Acf, 2006, (Bill 51), which came into
force and effect on January 1, 2001, introduced numerous amendments to the Planning Act, 1990 that
provide additional tools for the implementation of provincial policies and give further support to
sustainable development, intensification and brownfield redevelopment. Under the Act, the Region of
Waterloo now has the ability to participate in Area Municipal Community Improvement Plans (CIPs}
through the provision of grants or loans to stimulate private sector development activities (e.g.
brownfield redevelopmen#).
2.2 Planning Act and Municipal Acf
Until recently, the ability to provide financial incentives for brownfield redevelopment within the Region
of Waterloo has been limited to programs developed and implemented by Area Municipalities through
CIPs. Under subsections 106 (1) and (2} of the Municipal Act, 200? municipalities are prohibited from
directly or indirectly assisting any manufacturing business or other industrial or commercial enterprise
through the granting of bonuses. Prohibited actions include:
i. giving or lending money or municipal property;
ii. guaranteeing borrowing;
iii. leasing or selling any municipal property at below fair market value; and
iv. giving a total or partial exemption from any levy, charge or fee.
However, section 106(3} of the Municipa! Act, 200? provides an exception to this bonusing rule for
municipalities exercising powers under the provisions of Section 28(6) or (l} of the Planning Act, ?990
or Section 365.1 of the Municipal Act, 200?. Section 28 of the Planning Act, ?990 allows municipalities
with provisions in their official plans relating to community improvement to designate by by-law a
"community improvement project area" and prepare and adopt a CIP for the community improvement
project area. Once the CIP is approved, the Municipality may exercise authority under Section 28(6) or
(l} of the Planning Act or Section 365.1 of the Municipal Act, 200?, in order that the exception provided
for in Section 106(3} of the Municipal Act, 200? will apply.
The Planning Act, ?990 provides the statutory framework for the development of CIPs in the Province
of Ontario. Section 28 of the Act permits council to designate by by-law the whole or any part of an
area covered by such an official plan as a "community improvement project area" where there is an
official plan in effect that contains such provisions. Under the provisions of the Act a community
im rovement project area means a municipality or an area within a municipality, the community
p
im rovement of which in the opinion of the council is desirable because of age, dilapidation,
p
overcrowding, faulty arrangement, unsuitability of buildings or for any other environmental, social or
community economic development reason.
S ecific provisions in Section 28 of the Act provide that for the purpose of carrying out a CIP,
p
munici alities may acquire, hold and sell land; and construct, repair, rehabilitate and dispose of
p
buildin s thereon. They may also provide grants or loans to registered owners, assessed owners and
g
tenants of lands and buildings within the community improvement project area, and any person to
whom such an owner or tenant has assigned the right to receive a grant or loan, to pay for the whole or
for an art of the cost of rehabilitating such lands and buildings in conformity with the community
Yp
improvement plan.
5
2.3 Area Municipal official Plan
The policies in Part II Section 5.4 - `Community Improvement' of the City of Kitchener Municipal Plan
(~ 998} provide a local planning framework for the formulation, adoption, and implementation of CIPs.
These policies set out the rationale and goals for community improvement and how they will be
accomplished. This includes the criteria to be considered when designating a community improvement
project area and the range of actions that Council may initiate to implement CIPs. Depending on the
purpose far which it is designated, a community improvement project area may be the entire
municipality or any part thereof. The full text of Part II Section 5.4 - `Community Improvement' of the
Kitchener's Municipal Plan is contained in SCHEDULE "B".
2.4 Regional Official Policies Plan
According to Section 28{l.2) of the Planning Act, 1990, as amended, the Region may provide a grant or
loan to the council of a lower-tier municipality for the purpose of carrying out a GIP if there are
provisions in the Region's Official Plan relating to the making of such grants or loans. On this basis, the
Region amended the Regional Official Policies Plan (ROPP} in April 2001 to incorporate the following
policy to implement the Region's TIG program through the participation in Area Municipal CIPs:
Policy 8.2.8 -The Region may make grants or loans or provide for other financial
assistance as Regional Council deems appropriate for the purposes of carrying out such
programs as described in an Area Municipal Community Improvement Plan.
In June 2003, the Region of Waterloo approved the Regional Growth Management Strategy {RGMS}, a
long-term planning framework that defines where, when, and how future populations and employment
will occur in the Region. Developed in consultation with community partners and stakeholders, the
RGMS seeks to accommodate growth yet protect those features unique to the Region.
One of the objectives of the RGMS is to achieve more efficient use of land and infrastructure through
reurbanization. By promoting balanced growth, including more compact and transit-oriented
development in the existing urban areas, the Region, the Area Municipalities, and the development
industry are expected to reap a number of social, environmental, and economic benefits. The RGMS
includes the preparation of a brownfield redevelopment strategy, intended to complement and build on
Area Municipal, provincial, and federal initiatives to facilitate contaminated site clean-up.
3.0 COMMUNITY IMPROVEMENT PLAN
3.1 Purpose
The purpose of this Brownfield Community Improvement Plan is to encourage brownfield remediation
and redevelopment through the implementation of a joint City of Kitchener and Regional Tax Increment
Grant (TiG} Program and other programs as deemed appropriate.
3.2 Community Improvement Project Area
The Brownfield Community Improvement Plan applies to all lands within the City of Kitchener.
3.3 Goals
The goals of this Brownfield Community Improvement Plan support the brownfield redevelopment goals
of the City of Kitchener Official Plan. This Plan is also consistent with Provincial legislation and the
strategic direction of the Region of Waterloo.
6
The goals of the Community Improvement Plan are as follows:
• Stimulate and leverage private and public sec#or investment to promote the remediation,
rehabilitation, adaptive re-use, and overall improvement of brownfield sites throughout the
municipality;
• Reduce outward expansion and make better use of existing infrastructure by encouraging the
redevelopment of underutilized and vacant sites;
• Increase tax assessment and property tax revenues;
• Improve the physical and visual quality of the municipality;
• Improve environmental health and public safety in areas within which brownfieids are located;
• Retain and increase employment opportunities;
• Increase community awareness of the economic, environmental, and social benefits of
brownfield redevelopment; and,
• Utilize municipal resources to demonstrate leadership in the remediation, rehabilitation, adaptive
re-use, and overall improvement of brownfield sites throughout the municipality.
4.0 REGION OF WATERLOO - CITY OF KITCHENER REGIONAL TAX INCREMENT
GRANT PROGRAM
4.1 Regional Brownfields Financial lncenfives Pi1o~ Program Background
To address the challenges associated with brownfield revitalization, the Region of Uvaterloo established
a Brownfield Financial Incentives Committee in spring 2005. This committee was struck in an effort to
develop a brownfield program for vllaterloo Region that would augment existing brownfield incentive
programs offered by the Area Municipalities and the Province. The Committee retained the services of
Hemson Consulting Ltd. who reviewed incentive programs used by other municipalities. The
Committee also consulted with various stakeholders to gain a better understanding of the programs
currently in place or in the planning stages. The conclusion from this background research was that the
most comprehensive approach to brownfield remediation and redevelopment is the provision of a
package of financial incentives under the umbrella of a Community Improvement Plan (CIP}. At the
time this review was undertaken, this tool (CIPs) was only available to single-tier municipalities and
Area municipalities in a two-tier system,
Given the research findings and legislative limitations, the Committee developed the Brownfields
Financial Incentives Pilot Program (BFIPP} consisting of four components:
1. Establishment of a grant program to fund up to 50 percent of eligible costs associated with the
completion of a Phase 2 Environmental Site Assessment up to a maximum of $40,000;
2. Expansion of the Regional Development Charges exemptions to provide for development charge
grants up to the total eligible remediation costs associa#ed with the clean up of contaminated sites
outside of core areas;
3. Development of a joint Regional and Area Municipal Tax Increment Grant Program to help off-set
remediation costs of brownfield sites; and
4. Provision of funding for the Area Municipalities to assist in amending or developing CIPs which will
provide for the implementation of the joint TIG Program.
The goal of the Brownfields Financial Incentives Pilot Program is to provide financial assistance for the
remediation and redevelopment of brownfield sites to help level the playing field between greenfield
and brownfield development. The Pilot Program was approved by Regional Council in October 2006
with a budget of $2.5 million.
At the same time, the Province released for discussion a draft regulation under Bill 51 which would
provide far Regional par#icipation in Area Municipal CIPs. In anticipation of the passage of Bill 51,
Regional Council also directed staff to expand the Brownfields Financial Incentives Committee to
include representatives from the Area Municipalities and develop a Tax Increment Grant (TIG) program.
The Committee met throughout the winter and spring of 2001 and, with the assistance of Hemson
Consulting, developed the joint TIG Program. Following the passage of Bill 51 (which came into effect
January 1, 2001}, the joint TIG Program was approved by Regional Council in June 2001, subject to
Area Municipal concurrence. Implementation of this program is possible through the approval of this
CIP.
4.1 Program Descrjpfion
A TIG is a gran# provided to a landowner (or assignee} equal to the full amount, or a portion of the
amount of the tax increase (or increment} in City and Regional property taxes after a property is
reassessed. The tax increment is calculated using the change in current value assessment following
the completion of the remediation & redevelopment of the property. The increase in taxes, or tax
increment, is based on the estimated increase in the Kitchener and Regional portions of property taxes
and is calculated by subtracting the Kitchener and Regional portion of property taxes before
reassessment (pre-remediation & redevelopment) from the Kitchener and Regional portion of property
taxes after reassessment (post-remediation & redevelopment}. The difference in taxes, or the
increment, is used to provide a grant to the developer for eligible casts associated with environmental
remediation.
The amount of the TIG will equal up to 100% of the City of Kitchener and Regional tax portion of
property taxes per year for a maximum of ten years or the total of all grants, loans and tax assistance
provided equal the cost of remediating the lands and buildings, whichever occurs first. Calculation of
the tax increment grant will occur only after the site has been assessed post-remediation &
redevelopment by the Municipal Property Assessment Corporation (MPAC). The TIG will commence
in the first year following receipt of the post-remediation & redevelopment assessment from MPAC.
The tax increment does not include assessment increasesldecreases in municipal taxes due to a
general tax rate increaseldecrease, or a change for any other reason. The TIG also does not exempt
property owners from City of Kitchener or Regional taxes owing prior to, during, and after the
remediation and redevelopment is completed. The total of all grants, loans and tax assistance cannot
exceed the cost of remediating the lands and buildings net of any other government financial
assistance received by the applicant for remediation
Applicants who are approved for a joint TIG would be required to enter into a legal agreement with the
City of Kitchener and the Region. Applicants may include registered owners or assessed owners of
lands and buildings within the community project area, and to any person to whom such an owner or
has assigned the right to receive a grant or loan who will be responsible for site remediation. For the
purposes of this program a "site" consists of one or more parcels that are part of the brownfield
redevelopment project for which the TIG application is being made. The Applicant responsible for the
remediation does not necessarily need to be the same as the developer who will undertake the
redevelopment of the site. The legal agreement will set out the terms and conditions of payment,
obligations of the municipalities and applicant(s), and the defaults and remedies.
The terms of the TIG are at the discretion of City of Kitchener andlor Regional Council. For sites which
are of exceptional size or complexity, involve phased development, or for those that will involve very
lengthy remediation, the TIG payments and schedule may be set on a case by case basis.
Amendments to this program will be carried out as per Section 28(5) of the Planning Act, X990, in the
following cases:
8
• A change or expansion in the geographic area to which financial or land programs outlined
in this CIP apply;
• A change in the eligibility criteria;
• the addition of new municipal assistance programs involving grants, loans, tax assistance or
land; and or
• An increase to a financial incentive to be offered within a CIP program.
4.3 Whaf is a Rernediated Brownfield?
Many municipalities have developed a working definition for the term "brownfield" to assist in the
implementation of financial incentive programs. Brownfields have most commonly been defined as
sites which are abandoned, vacant or underused where redevelopment is complicated by real ar
perceived environmental contamination.
In developing a definition for the joint TIG Program, the Brownfield Financial Incentives Committee
developed aperformance-based definition that must be met before any TIG agreement is finalized. As
only brownfield sites that have been remediated and redeveloped would be eligible to receive TIG
funding, the term "remediated brownfield" has been defined as follows:
"A property which contained environmental contamination either in the ground or
buildings due to the operational activities of a previous land use, where the extent of the
contamination rendered the property vacant, under-utilized, unsafe, unproductive or
abandoned, and for which a Record of Site Condition has been filed. "
It is recognized that some brownfield sites will not meet this definition at the time of the initial TIG
application because site remediation is not yet complete. Only once the City of Kitchener and Region of
Waterloo receives acknowledgment from the Ministry of the Environment that the RSC has been filed,
will the brownfield site be considered "remediated". This condition is a prerequisite before the legal
agreement outlining the TIG payments and scheduled can be finalized and any payments issued.
4.4 Eligibility Requirements
To be eligible for the joint TIG Program, all of the following criteria must be met:
1. The site must be located within the designated City of Kitchener Community Improvement Project
Area;
2. The applicant must be the registered owner of the site or the assignee of the owner and must
demonstrate clear title and responsibility for the land at the time the TIG is approved by City of
Kitchener and Regional Council;
3. The applicant cannot be responsible for causing the on-site contamination that requires
remediation;
4. The remediation and redevelopment undertaken. must result in a minimum increased property
assessment value of $100,000;
5. The Phase I and Phase ll Environmental Site Assessments must be completed by a "Qualified
Person" as defined by Ontario Regulations 153104 before a TIG application can be submitted;
9
6. Redevelopment plans must meet all approved policy and should comply, where feasible and
appropria#e, with applicable design guidelines;
7. The site must not be in a position of tax arrears or have any other outstanding municipal financial
obligations; and
8. Application far a Tax Increment Grant must be made prior to the issuance of a building permits}for
the redevelopment. Exceptions will be considered in cases where a building permit was issued after
March 1, 2008 but before the corresponding Area Municipal Community Improvement Plan
authorizing the joint Tax Increment Program was established.
4.5 Eligible Costs
Eligible brownfield remediation costs shall include:
1. Phase I Environmental Site Assessments;
2. Phase II Environmental Site Assessments (excluding any portion already funded by the Region of
Waterloo under its Phase ll ESA Grant Program};
3. Environmental remediation work identified in a remediation work plan, excluding work completed
more than 12 months prior to the filing of an application. Remediation work would include, but is not
limited to:
a) Remedial work plans;
b) Risk assessments;
c) Environmental Rehabilitation;
d} Disposal of contaminated soil;
e} Placing of clean fill and grading; and
f} Building demolition related to remediation.
4. Indirect Remediation Costs to a maximum of 10% of eligible brownfield remediation costs. Such
indirect casts related to remediation can include planning fees, legal costs, financing costs
associated with remediation, insurance premiums, assessment estimates, and the preparation of
Record of Site Condition;
The applicant must provide estimates, prepared by qualified professionals, of the cost of remediating
the site to permit the filing of a Record of Site Condition, the cost of complying with any certificate of
property use issued under the Environmental Protection Act, and the cost of any proposed building
conversion or rehabilitation proposal, all of which must be prepared by a qualified professional. The
City and Region reserve the right to independently audit the actual costs at the expense of the property
owner.
Note that TIGs are not intended to cover any redevelopment costs.
4.6 Duration of TIG Program
The Brownfield Financial Incentive Pilot Program that was approved by Regional Council in October
2006. Development of the joint TIG program became possible on January 1, 2001 when Bill 51 came
into effect allowing for the participation of the Region in Area Municipal Community Improvement Plans.
The join# TIG Program will commence on or after the approval of this or any other appropriate Area
Municipal CIP which provides funding for brownfield remediation and redevelopment and allows for
Regional participation. Regional Council allocated a budget of 2.5 million dollars to fund the
10
Brownfields Financial Incentives Pilot Program in the 2006 budget. Once these funds have been
ex ended or committed, Regional Council may elect to extend the Regional participation in the joint
p
TIG Program as it deems appropriate, subject to the availability of funding as approval by Council.
Year 1 of the TIG Program will be defined as the first calendar year that taxes are paid by the property
owner(s) after the project is completed ~i.e. after the site has been assessed by MPAC post-
remediation & redevelopment).
The City of Kitchener may discontinue its participation in this joint TIG Program at any time without an
amendment to this Plan. Any participants in the program prior to its cancellation will continue to receive
the gran# payments as approved by City of Kitchener Council.
The Region may discontinue its participation in the joint TIG Program at any time without an
amendment to this Plan. Any participants in the program prior to its cancellation will continue to receive
the grant payments as approved by Regional Council.
4.l Program Adminrsfrafion
1. All TIG Program applications shall be submitted to the respective Area Municipality in which the
brownfield site is located, prior to the issuance of the applicant's first building permit. Exceptions
will be considered in cases where a building permit was issued after March 1, 2008 but before
the corres onding City of Kitchener Community Improvement Plan authorizing the joint Tax
p
Increment Program was established or amended. Applications can be submitted at any point
rior to or during remediation. In the case where there has been a Community Improvement
p
Plan that s ecified the intent to promote brownfield remediation and redevelopment in place for
p
Ion er than one year, costs incurred within the 12 months prior to an application will be
9
considered an eligible cost. Where no such previous Community Improvement Plan existed,
onl costs incurred after the Community improvement Plan comes in to effect will be considered
Y
an eli able cost. Applicants are encouraged to consult with the City of Kitchener and Regional
g
staff prior to submitting the application.
2. Such applications shall include:
• A Phase l and Phase it Environmental Site Assessments and estimates for the eligible
remediation casts, to be completed by a "Qualified Person" as defined by Ontario
Regulation 153104;
• A project description and redevelopment plans;
• A Remedial Work Plan andlor Risk Assessment which includes a work plan and cost
estimate com leted by a "Qualified Person" of the action to be taken to address the
p
contamination; and
• An other details as may be required to satisfy the City of Kitchener and the Region of
Y
Waterloo with respect to the pre-remediation & redevelopment assessment value,
estimated eli able costs and conformity of the project with the Community Improvement
9
Plan. The City of Kitchener and the Region reserve the right to obtain an independent
third party to review the proposed costs, at the expense of the applicant.
3. The TIG Pro ram a placation will be reviewed by appropriate Kitchener and Regional staff to
9 p
determine if it is complete. Once deemed to be complete, the application will be date stamped to
establish the pre-remediation & redevelopment assessment date and cost eligibility date.
4. The TIG ro ram a placation is reviewed for eligibility by the Area Municipality and the Region.
p g p ~ ~ ~ ~ ~ an estimate of
If the TIG Program eligibility requirements are met, Kitchener Staff will prepare
the annual TIG a ments Kitchener and Regional portions) and payment schedule including
pY
11
TIG reductions due to other assistance for brownfield remediation). Kitchener will forward the
estimated TIG payment, schedule and recommendation to Regional staff for review.
5. Both Kitchener and Regional Councils will consider recommendation reports submitted by their
respective staff and approve or refuse their portion of the grant.
6. All successful applicants will enter into a formal legal agreement (draft} with the City of
Kitchener and the Region. The draft legal agreement will specify the terms and conditions of
payment, obligations of the municipalities and applicant, and the defaults and remedies. If the
applicant does not comply with all conditions of the T1G Program agreement and other relevant
municipal requirements, all financial incentives, assistance and grant provided will be repaid to
the City of Kitchener and Region with interest.
1. U on completion of the site remediation, the applican# will file a Record of Site Condition with
p
the Ministry of the Environment ~MOE}. The applicant will provide a copy of the MOE's
acknowledgement and Record of Site Condition to the City of Kitchener.
8. The a plicant will provide invoices of all eligible costs in relation to site remediation to the City of
p
Kitchener. The City of Kitchener will forward copies of the invokes and the M4E's
acknowledgement of the RSC to the Region. This must be completed before the site is
considered a "remediated brownfield" and the legal agreement can be finalized.
9. Once the project is complete and the property has been assessed by MPAC, the applicant will
be issued a new tax notice based on the post-remediation & redevelopment assessment value.
The a licant will submit the post-remediation & redevelopment assessment notice to The City
pp
of Kitchener. The City of Kitchener will forward the post-remediation & redevelopment
assessment to the Region.
10. The actual annual and total TIG payments will be established by the City of Kitchener and the
Re ion and the draft legal Agreement will be modified accordingly and then finalized.
g
11. After the current property owners} has paid the taxes in full for one (1 } full year, the City of
Kitchener will confirm that the property is not in a position of tax arrears or has any other
outstanding municipal financial obligations and all other requirements of the TIG Program
Agreement and CI P have been met.
12. The Cit of Kitchener will issue the first annual payment of the City of Kitchener and Regional
y
onions of the TIG to the applicant. The Region will reimburse the City of Kitchener for its
p
onion of the TIG payment. The current property owners} will pay. property taxes for the site at
p
its ost-remediation & redevelopment assessment value. Annual TlG payments continue as per
p
the payment schedule outlined in the final TIG legal agreement.
4.8 Monitoring
The 'oint TIG Pro ram will be evaluated from time to time by Regional Council. The purpose of the
j g the oafs of the CIP
monitoring is to determine the effectiveness of the TIG Program in relation to g ,
identif Pro ram modifications as required, and assist Council in determining continuation of the TIG
Y g
Program.
Monitorin the CIP ma lead to revisions to the Regional TIG Program through amendment to the Plan.
g Y
Chan es to the ro ram will be provided to the Minister of Municipal Affairs and Housing far information
g p9
purposes only.
12
5.0 BROWNFIELDS FINANCIAL TAX INCENTIVE PROGRAM (BFTIP)
5.1 Program Description
The Brownfields Financial Tax Incentive Program (BFTIP) is a provincial funding program that provides
matching education property tax assistance to eligible brownfield property owners under section 365.1
of the Municipal Acf, 2009. Assistance provided through BFTIP is conditional upon, and is matched to,
brownfield property tax assistance (tax cancellation or deferral) that is provided by a municipality.
The property tax assis#ance provides for the exemption of up to 100 % of Kitchener taxes levied for the
period immediately following the approval of the Property Tax Assistance By-Law and continuing during
the Rehabilitation Period and Development Period. The BFTIP applies only to eligible properties and is
subjec# to Ministry of Finance approval for the education portion. The Timing and conditions that apply
to the matching educa#ion property tax assistance may vary from those for the municipal property tax
assistance. Further, the amount of tax assistance provided will be determined during the Application
Phase to ensure that the value of the tax exemption does not exceed rehabilitation costs over a time
period specified by the Property Tax Assistance By-Law.
The Municipal Act, 2009 and the BFTIP requires the following:
• That tax assistance be suspended for a subject property where a landowner has not paid all of
the taxes on a subject property for the previous years in the Rehabilitation and Development
Periods (subject to any specific exceptions provided for in the Property Tax Assistance By-Law
or in a Brownfields Site Agreement under the by-law};
• That the tax assistance becomes liable for payment in full, with interest, for all tax assistance
granted during the Rehabilitation and Development Periods for the property, where the
landowner defaults on the Property Tax Assistance By-Law or the Brownfields Site Agreement
requirements;
• That landowners file with the City of Kitchener an annual update of the reporting on the
environmental contamination, the rehabilitation activities, the estimated costs, and the time
estimates outlined under Ontario Regulation 214/04 of the Municipal Ac! 2009; and
• That the City of Kitchener forward the annual update to the Minister of Finance within 30 days of
the anniversary of the start date of the tax assistance.
The City of Kitchener portion of the property tax assistance will terminate on the date that the
Occupancy Period begins or such earlier period otherwise stipulated in the municipal Property Tax
Assistance Sy-Law.
5.2 What is a Brownfield?
For the purposes of this Provincial Program, a brownfield is defined as:
A property which contains environmental contamination either in the ground or buildings
due to the operational activities of a previous land use, where the extent of the
contamination rendered the property vacant, under-utilized, unsafe, unproductive or
abandoned.
5.3 Eligibility Requirements
To be eligible for this program, the following requirements must be met:
13
• A phase two environmental sites assessment was conducted for the property;
• A record of site condition ~RSC) cannot be filed for the property because it does not meet
certain Environmental Protection Act standards the standards listed in clause (b} of the
definition of "eligible property" found in subsection 365.1 of the Municipal Act};
• The property is included in a community improvement project area for which a Community
Improvement Plan, with tax assistance provisions contained in the plan, is in effect.
5.4 Eligible Costs
Eligible Cost for provincial matching education property tax assistance are:
• Any action taken #o reduce the concentration of contaminants on, in, or under the property to
permit a Record of Site Condition (RSC} to be filed;
• Compliance with any Certificate of Property Use issued under the Environmental Protection Act;
• Environmental consultant fees; andlor
• Property insurance during the remediation period.
5.5 Duration of BFTIP Program
Matching education property tax assistance may be granted for up to three years, and will begin from
the commencement date for municipal tax assistance as stated in the specific Kitchener tax assistance
by-law.
Matching education property tax assistance may be extended for an eligible property if the municipality
applies to the Ministry of Municipal Affairs and Housing for the extension of that assistance before the
matching education tax assistance ends for the property.
In addition, the matching education portion of the tax assistance will end in relation to an eligible
property if:
• The eligible property is severed, subdivided, sold or conveyed at any time after the owner
makes application to the municipality under subsection 365.1 ~8} of the Act; or
• The owner of the eligible property fails to meet any legal requirements that applies to the owner
or to the property in connection with municipal or matching education property tax assistance
including without limitation any conditions in a municipal tax assistance bylaw that apply to the
owner or to the property in connection with municipal or matching education property tax
assistance.
5. fi Program Administration
a} Municipal Portion of Property Tax Assistance
The municipal portion of the property tax assistance is limited to the Rehabilitation Period and
Development Period of the project. This BFTIP assistance is to be implemented for eligible properties
prior to the implementation of the joint Area Municipal and Regional TIG Program. The municipal
portion of the property tax assistance will be undertaken in accordance with the provisions of Section
365.1 (1} of the Municipal Act, 2001. The municipal portion of the property tax assistance may start at
the beginning of the Rehabilitation Period and run for a period specified by Council in a by-law, but shall
not extend beyond the time periods outlined in Section 365.1(1 } of the Municipal Act, 2001, or as
outlined in the relevant by-law. The purpose of this tax assistance element is to give financial relief to
proponents early in the process as Remedial Work Plans and land use planning proposals are being
prepared and implemented.
14
b) Regional Portion of Property Tax Assistance
The Region of Waterloo may match the Area Municipality's tax assistance provided to a property owner
through the Region's portion of the property's tax. Participation in an Area Municipal Tax Assistance
program must be established by way of a resolution by Regional Council. The Area Municipality must
include a copy of the Regional Council resolution as part of any BFTIP application, made on behalf of
the property owner, to the Ministry of Municipal Affairs and Housing.
c) Education Portion of Property Tax Assistance
The Ministry of Finance may match the municipality's tax assistance provided to a property owner
through the education portion of the property's tax. The exemption may commence at the start of the
Rehabilitation Period, and continue through the Development Period, for a maximum time period as
defined in the relevant by-law, and subject to Program and termination requirements established by
Section 365.1(1) of the Municipa! Acl, 200. The educa#ion portion of the property tax assistance. must
be
applied for specifically to the Ministry of Municipal Affairs and Housing prior. to any Council by-law
approval. The education portion of the property tax assistance may be delivered on a different timetable
from the municipal portion of the property tax assistance for the given property. The conditions imposed
by the Minister of Finance for the education portion of the property tax assistance under Section 365.1
of the Municipa! Act, 20D~ may differ from those outlined in this CIP.
6.0 APPENDIX-Notices and Minutes
Notice of Public Hearing of City Council Development and Technical Services Committee -May
23rd, 2008 Waterloo Region Record
• Minutes -Public Hearing of City Council Development and Technical Services Committee, June
16, 2008"
PASSED atthe Council Chambers in the City of Kitchener this
day of
A.D. 2008.
Mayor
Deputy Clerk
APPENDIX "C"
• Public & Agency Circulation and Responses
• Minutes of Roundtable Discussion Forum
• Minutes of the Economic Development Advisory Committee in August 22, 2001
• Minutes of the Kitchener DTS Committee in Septem-ber 24, 2001.
4
rage ~ a~ L
Terry Boutilier
From: Terry Boutilier
Sent: Thursday, April 03, 200812:19 PM
To: Jeff Willmer; Alain Pinard; Tina MaloneWright; Rod Regier; Silvia Wright; Hans Gross; Kathy
Weiss; Grant Murphy; John McBride; Mike Selling; Peter Wetherup; Lesley MacDonald; Dan
Chapman; Joyce Evans; Bell -Daniel Steffler (daniel.steffler@bell.ca}; Bell -John La Chapelle
(rowcentre@bell.ca}; Bell - Nicholas Muza (nicholas.muza@bell.ca}; GRCA -Samantha
Lawson (slawson@grandriver.ca}; GRCA -Shari Muscat (smuscat@grandriver.ca}; Hydro
One - Laura Giunta (laura.giunta@hydroone.com); K-W Hydro -Bruce McKague
(bmckague@kwhydro.on.ca}; Kevin Eby; Brooke Lambert @ Region ;Wendy Fisher @
Region (fwendy@region.waterloo.on.ca}; Dwayne Evans @MMAH (London)
(dwayne.evans@mah.gov.on.ca}; Bruce Curtis; Mayor's Office -Council; Marcia Wallace
@MMAH (marcia.wallace@mah.gov.on.ca}; shawn.parry@ontario.ca
Subject: Proposed Kitchener Brownfield Community Improvement Plan Amendment
Attachments; Region of Waterloo - Kitchene Brownfield CIP 2008.DOC
To: All Agencies,
RE: Proposed Region of Waterloo -Kitchener Brownfield Community improvement Plan 2008
Amendment
City Initiated
City Wide
The City of Kitchener's current Kitchener Brownfield Community Improvement Plan has been in operation since
November, 2003. The Program provides a financial incentive in the form of Tax Incremental Financing (TIF} to
encourage private industry to cleanup (remediate} and re-use contaminated properties for more productive urban
uses.
Since 2006, Staff have been working closely with the Region of Waterloo and sister municipalities to form one
Brownfield Program which all regional municipalities can use. We previously presented the features of the
new Program to the Economic Development Advisory Committee in August, 2001 and the Development and
Technical Services Committee in September, 2001. The features are;
1, Tax Incremental Grant (TIG}which includes both the City' and the Region's portion of the Property Tax Bill,
whereas our current Program only includes the City of Kitchener portion.
2. An administration process modelled after the City of Kitchener Program, allowing both City and Regional
Staff and Councils involvement with each application.
3, A comprehensive grant formula which accounts for all other credits (such as Development Charge credits
and Study Grants}.
4. Better coordination between City and Regional efforts to promote clean up.
To implement the new Program, the City of Kitchener needs to amend its existing Community improvement Plan,
pursuant to Sections 28 and 1l of the Planning Act.
Attached please find a copy of the Draft "Region of Wa#erloo - Ki#chener Brownfield Communi#y
Improvemen#P~an 2008", for your review and comment. Please send any comments to me, either in writing or
by email, at the following addresses. Written comments received prior FRIDAY, APRIL 25, 2408 will be
considered in the formulation of our Staff Report.
Persons or public bodies may attend the Public Meeting and make written andlor verbal representation in respect
of the proposed policies. If a person or public body does not make oral submissions at this public meeting
or make written submissions to the City prior #o the approval of the policies, the Ontario Municipal Board
may dismissed future appeals
5/8/2008
rd~,C~u~L
A public meeting will beheld by the City's DEVELOPMENT and TECHNICAL SERVICES COMMITTEE, a
Committee of Council which deals with Planning Matters on MONDAY, JUNE 16TH, 2048 AT 1:00PM IN THE
COUNCIL CHAMBERS, 2nd FLOOR, CITY HALL, 200 KING STREET WEST, KITCHENER.
If ou have any questions or require further clarification regarding this Amendment, please feel to contact me at
Y
74~-23a3.
Terry Boutifier
Senior Business Development Officer &
Brawnfiel~ Co-ordinator
City of Kitchener
City Na11
200 King Stree# West
PO Box 1118
Kitchener, Ontario
N2G 4G7
p.519-741-2303
f, 519-741-2722
c.519-591=4355
ter .bou#ilier cit .ki#chener.on.ca
5/8/2005
rage ~ ~1 ~
Terry Boutilier
From: Terry Boutilier
Sent: Thursday, April 03, 2008 2:53 PM
To: 'dbradshaw@myneighbour.org'; 'hayward@kw.igs.net'; 'wstewart@golden.net'; 'karen.taylor-
harrison@sympatico.ca'; 'corbettdb@hotmail.com'; 'cfna@bellnet.ca';
'sherrygross2003@yahoo.ca'; 'cpna@rogers.com'; 'danbev@rogers.com';
'adeline@sympatico.ca'; 'johnduff@rogers.com'; 'davishess@sympatico.ca'; 'daniel_glenn-
graham@wsib.on.ca'; 'adeline@sympatico.ca'; 'president@fhcakitchener.ca';
'dilysmiehm@hotmail.com'; 'pabassin@sympatico.ca'; 'jchapman@ctg.queensu.ca';
'highlandstirling@bellnet.ca'; 'nicole_smith_794@hotmail.com'; 'lorickrjp@rogers.com';
'trudy@waterlooregion.org'; 'gbender@on.aibn.com'; 'bob@rmccoll.com';
'ahastie750@rogers.com'; 'janicefarr@rogers.com'; 'sherriegrise@hotmail.com'
Subject: Proposed Kitchener Brownfield Community Improvement Plan Amendment
Attachments: Region of Waterloo - Kitchene Brownfield CIP 2008.DOC
To: All Kitchener Neighbourhood Associations,
RE: Proposed Region ofWaterloo -Kitchener Brownfield Community Improvement Plan 2008
Amendment
City Initiated
City Wide
The Cit of Kitchener's current Kitchener Brownfield Community Improvement Plan has been in operation since
v
November, 2003. The Program provides a financial incentive in the form of Tax Incrementa! Financing ~TIF} to
encoura a rivate industry to clean up ~remediate) and re-use contaminated properties for more productive urban
9p
uses.
Since 2006, Staff have been working closely with the Region of Waterloo and sister municipalities to form one
Brownfield Pro ram which all regional municipalities can use. We previously presented the features of the
9
new Pro ram to the Economic Development Advisory Committee in August, 2007 and the Development and
g
Technical Services Committee in September, 2007. The features are:
a, Tax Incremental Grant (TIG}which includes both the City' and the Region's portion of the Property Tax Bill,
whereas our current Program only includes the City of Kitchener portion.
2, An administration rocess modelled after the City of Kitchener Program, allowing both City and Regional
p
Staff and Councils involvement with each application.
3. A com rehensive grant formula which accounts for all other credits such as Development Charge credits
P
and Study Grants},
4, Better coordination between City and Regional efforts to promote clean up.
To im lementthe new Pro ram, the City of Kitchener needs to amend its existing Community Improvement Plan,
p g
pursuant to Sections 28 and 17 of the Planning Act.
Attached lease find a copy of the Draft "Region of Waterloo -Kitchener Brownfield Community
p
lm rovement Plan 2008", for your review and comment. Please send any comments to me, either in writing or
p
b email at the following addresses. Written comments received prior FRIDAY, APRIL 25, 2008 will be
Y t
considered in the formulation of our Staff Report.
Persons or ublic bodies may attend the Public Meeting and make written andlor verbal representation in respect
p
of the ro osed olicies. If a person or public body does not make oral submissions at this public meeting
pp p
or make written submissions to the City prior to the approval of the policies, the Ontario Municipal Board
may dismissed future appeals.
5/8/2008
ra~c~~l~
A public meeting will beheld by the City's DEVELOPMENT and TECHNICAL SERVICES COMMITTEE, a
Committee of Council which deals with Planning Matters on MONDAY, JUNE 16TH, 2008 AT 7:04PM IN THE
COUNCIL CHAMBERS, 2nd FLOOR, CITY HALL, 200 KING STREET WEST, KITCHENER.
if you have any questions or require further clarification regarding this Amendment, please feel to contact me at
741-2303.
Terry Boutilier
Senior Business Development Officer &
Brownfield Co-ordr'nator
City of Kitchener
City Ha!!
240 King Street West
PO Boer 1118
Kitchener, Ontario
N2G 40T
p.519-T41-2303
f. 519-T49.2122
c.599-599-4355
terr .boutilier cit .kitchener.an.ca
5/8/2008
rage ~ o~ L
Terry Boutilier
From: Terry Boutilier
Sent: Thursday, April 03, 2008 3:41 PM
To: Tracey DeVille
Subject: Proposed Kitchener Brownfield Community Improvement Plan Amendment
Attachments: Region of Waterloo ~ Kitchener Brownfield CIP 2008.DOC
To: All Members Kitchener Economic Development Advisory Committee,
RE: Proposed Region of Waterloo -Kitchener Brownfield Community Improvement Plan 2008
Amendment
City Initiated
City Wide
The City of Kitchener's current Kitchener Brownfield Community Improvement Plan has been in operation since
November, 2003. The Program provides a financial incentive in the form of Tax Incremental Financing (TIF} to
encourage private industry to cleanup (remediate} and re-use contaminated properties for mare productive urban
uses.
Since 2006, Staff have been working closely with the Region of Waterloo and sister municipalities to form one
Brownfield Program which all regional municipalities can use. We previously presented the features of the
new Program to the Economic Development Advisory Committee in August, 2001 and the Development and
Technical Services Committee in September, 2007. The features are:
1. Tax Incremental Grant (TIG}which includes both the City' and the Region's portion of the Property Tax Bill,
whereas our current Program only includes the City of Kitchener portion.
2. An administration process modelled after the City of Kitchener Program, allowing both City and Regional
Staff and Councils involvement with each application.
3. A comprehensive grant formula which accounts for all other credits (such as Development Charge credits
and Study Grants}.
4. Better coordination between City and Regional efforts to promote clean up.
To implement the new Program, the City of Kitchener needs to amend its existing Community improvement Plan,
pursuant to Sections 28 and 1l ofthe Planning Act.
Attached please find a copy of the Draft "Region of Waterloo -Kitchener Brownfield Community
Improvement Plan 2008", for your review and comment. Please send any comments to me, either in writing or
by email, at the following addresses. Written comments received prior FRIDAY, APRIL 25, 2008 will be
considered in the formulation of our Staff Report.
Persons or public bodies may attend the Public Meeting and make written andlor verbal representation in respect
of the proposed policies. If a person or public body does not make oral submissions at this public meeting
or make written submissions to the City prior to the approval of the policies, the Ontario Municipal Board
may dismissed future appeals.
A public meeting will be held by the City's DEVELOPMENT and TECHNICAL SERVICES COMMITTEE, a
Committee of Council which deals with Planning Matters on MONDAY, JUNE 16TH, 2008 AT 1:00PM IN THE
COUNCIL CHAMBERS, 2nd FLOOR, CITY HALL, 200 KING STREET WEST, KITCHENER.
if you have any questions or require further clarification regarding this Amendment, please feel to contact me at
1'41-2303.
5/8/2008
Ministry of
Municipal Affairs
and Housing
Municipal Services Office -
western
659 Exeter Road, 2"d Floor
London ON N6E 1 L3
Tel. (519} 873-4020
Toll Free 1-800-265-4736
Fax X519} 873-4018
April 28, 2008
Ministers des
Affaires municipales
et du Logement
Bureau des services aux municipaiites -
region de I'4uest
659, rue Exeter, 2~ a#age
London oN N6E 1 L3
Tel, X519} 873-4020
Sans frail 1800 265-4736
Telec X519} 873-4018
Mr. Terry Boutilier
Senior Business Development Office &
Brownfield Co-ordinator
City of Kitchener
City Hall
200 King Street west
P.4. Box 1118
Kitchener, ~N N2G 4G7
Dear Mr. Boutilier,
r~~
~r" Ontario
Re: Proposed Amendments to Brownfield Community improvement Plan
Cit of Kitchener Re Tonal Munici alit of waterloo
Thank you for your recent circulation of the above-noted matter. It is understood the purpose of
the proposed amendments to the City of Kitchener Brownfield Community Improvement Plan is
to implement features of a new Brown#ield Program developed by the Region of Waterloo and
its local municipalities. More specifically, the amendments will integrate the Region of
Waterloo's support #or brownfield remediation into the City of Kitchener's existing Brownfield
Community Improvement Plan.
As a result of changes made to Section 288} of the Planning Act and Section 365.1 of the
Municipal Actand provided community improvement policies exist in the official Plan,
municipalities are no longer required to submit community improvement plans, or amendments
to the Ministry for approval. However, municipalities are still required to pre-consult with the
Ministry prior to adoption has per ss. 28 ~5) of the Planning Act}.
As you are aware, Ministry staff have been working with the Region of Waterioo and a
brownfield working group comprised of local municipalities, in developing a brownfield
community improvement plan template. The template was developed for the purposes of
encouraging brownfield remediation and redevelopment in the Region of Waterloo, including the
implementation of joint municipal and Regional tax increment equivalent grant programs. The
template also implements a Brownfields Financial Tax incentive Program ~BFTIP~.
As discussed, it is understood the proposed amendments to the City of Kitchener's Brownfield
Community Improvement Plan will be changed to reflect the most recent version of the
Brownfield Community Improvement Plan template which was developed by the brownfield
working group, in consultation with Ministry staff. The most recent version of the template was
shared with the Ministry in an email dated April 18, 2008. 1t is understood the Region of
Waterloo will be sharing this version of the template with all of the local municipalities, including
the City of Kitchener,
an the basis that the proposed amendments to the City of Kitchener Brownfield Community
Improvement Plan incorporates the brownfield template and further, that no new policies or
programs are added to the City of Kitchener Brownfield Community Improvement Plan which
are not part of the brownfield template, the Ministry has no comments.
I trust this is satisfactory. If you have any questions or comments, please telephone me at X519)
873-4695.
Sincerely,
~.
~ ,~
Dwayne Evans
Planner
MSO-Western
c.c Janice Willis, Senior Municipal Finance Advisor, MAH
Saifullah Sumbal, Municipal Government Advisor, MAH
Carol Healy, Policy Advisor, MAH
Marcia Wallace, Brownfields Coordinator, MAH
BROWNFIELD ROUNDTABLE DISCUSSION FORUM
FLIP-CHART PINTS
FEBRUARY 8, 20Q6
ATTENDEES
FLlP CHART P4~NTS
The followin numbered points are reproduced directly from the flip-chart used at the
g ,
Brownfield Roundtable Discussion Forum. Bullets have been added to better explain
some of the points,
1. Public unaware
• There is a general lack of awareness about the complexities of site
contamination, and opportunities to clean it up.
Z. Not enough money
• Depending on what type of sites and projects maybe addressed by an incentive
program, $2.5 million may not be enough to make a difference,
3. Coordinated package
• A ran e of incentives, administrative streamlining, and more flexible standards
g
should be included in a program to address brownf fields
4. Community leadership
• The municipality's effort should gain sufficient publicity so as to communicate its
intent to redevelop brownf fields
5. Too much red tape
6. Pre-approval Jpre-zone sites
• Anything that can be done proactively topre-approve development at candidate
sites would help by enhancing certainty and reducing timelines
?. Adjacent infrastructure -proactive
• Public investment in works and aesthetic improvements adjacent to brownf field
sites would help in marketing the neighbourhood
8. Site owners think sites are worth mare, but cleanup costs uncertain
• Current owners of Brownfield sites have inflated opinions of their land price, and
are unaware of the complexity of the contamination issue
9. Regulatory risk
• The standards keep changing, and liability for past owners continues
10. How to carry residual land after phase 1 of project -banker's perspective
11. How are relationships with development partners organized
• As part of the Brownfield program, what will be the relationship between the
Region and the developer?
12. Experience J track record of developer should be criteria for approval
• Region should go with experience
13. Training J accumulated experience implications of # 12
• But how will interested developers gain experience if only those who already
have it are chosen...
14. Broaden geographic area -regional perspective. (Money already available}
• The area municipalities already have money on the table for brownfields. ~Uhat
will be Regional priority? Should include entire area.
15. All about the money
16. Banks J financial institutions won't lend till RSC, especially domestic lenders
• Seems that Canadian lenders are more conservative that foreign counterparts
17. Due diligence costs should be eligible
• Costs to determine whether a project is viable are themselves an impediment. A
brownf field incentive program should cover this exploratory stage
1 S. "Science" rocess long and uncertain, and then still not sure what's underground -->
p
?~
• Discovery of contamination is not an exact science. Although problem may seem
to be defined, continued investigation may find new issues. Creates expensive
risks
19. Continuing legal liability for consultants ~ owners
• Environmental consultants are averse to signing-off on remediated sites due to
fear they will be liable for future problems if found
20. Publicly funded report should be public info BUT confidentiality concerns
• If the Re ion's funding a study, should it gain access to the results possibly
g
allowin for ublic disseminations?However, this is sensitive data that affects
g p
property values
21. Fragmented ownership limits environmental investigations
• Contamination movement underground does not respect property lines.
Assessin the source and extent of contamination requires cooperation with
g
neighbours
22. Education of development community
• Develo ers are not aware of complexities of contamination either...
p
23. Education of purchasers -will they buy?
• When urchasers see RSC on title or other documents implying past or potential
p
health risks, will they still be interested in buying a condo ~ renting space?
2 . Definition of brownfields~ narrow vs. broad <-- should be. There are `greenfield' sites
4
considered possibly contaminated due to adjacent use
• Contamination issues may be hard to define; authorities often regulate in a
conservative manner. Therefore, eligibility for incentives should be flexible
25. Front end $
• All agree, money is needed up front
26. Estimated 6 proposals in 1 years -Royal Bank. Hurdles outweigh incentives
27. Banks learning more about risk assessment over time
28, Coordinated a roach among levels of government, agencies, private interests (i.e,
pp
rail}
29. Market uncertain plus incentives that pay later are bad mix
• Re ion should work to compensate for uncertainty in early stages of project to get
g
the development off the ground
30. Money is in rehabilitation
• The ma'or costs of a brownfield site are in the remediation, as opposed to
l
environmental studies
31, Region buy space in projects?
• Suggestion that region could buy housing units or space in projects as one way to
assist redevelopment
3 2. Reduced rate to deliver f ill to landfill and relaxed standards
• '~ A lot of talk centred on the cost of disposing contaminated--but non-toxic -
fill. Dis osal of soil is a significant cost that could be reduced with better,
p
coordinated management at a regional scale
33. MoE:
- makes no sense
- rules keep changing
- rules are inconsistent
- onerous process
- timelines too long
- contributes to lender uncertainty
rance remium on brownfield site deducted from property tax -- or make eligible
34. Insu p
cost
• Cost ca in insurance can be purchased to guard against future Liability.
Pp g
Insurance premiums should be covered by a brownf field program.
35. Cost cap insurance. Is cost effective with pool of sites
• Region might be able to put together a portfolio of sites
3b. Criteria should consider whether delay for public health may occur 4redevelopment
versus rehabilitation)
37. Spend money to determine consequences of contamination
Studies generally focus on presence of contamination, without accounting for
whether the contamination is truly a health concern for the proposed use
38. Coordinated policy on approvals
39. No standard process for brownfields, like greenfields -time, rules, awareness
At each development approval stage, brownfields run into unique issues unlike
greenfields which follow an established procedure
40. Target developers interested in core -not only experienced
Inex erienced developers with goals that are consistent with regional objectives
p
should be chosen -not only developers with a track record. Developers
specializing in greenfields may not want to do inner city projects.
41. $2.S million not enough. Ma~_y buy k~ dge,• KNGwLEDGE MAY MAKE
SOMETHING HAPPEN
• Send the move on investigations, training, and improved procedures. Spending
p y
it on redevelopments will not achieve as much with the given funding
2. ether sources of risk from existing buildings unrelated to contamination: designated
4
substances; structural remediation
Brownfields are not only risky due to contamination. They often have other
sources of uncertainty as well -like reuse of structurally unsound old building
43. Size of site influences effectiveness ~ economy of incentive
2 million for a lar a site maybe drip in the bucket, but $200,000 for a small site
$ g
may be a signif icant contribution
44. Soil management, storage for future use, utilize elsewhere
45. Collective soil waste facility among municipalities
46. PROBLEM IS UNCERTAINTY. UNI~NC~VN REQUIREMENTS FCR
CLEANUP
4?. RSC on title is impediment
48. Make costs as fixed as possible -liability transfer
49. Enli hten people, people not aware - do PILOT PRG~ECT at actual site that gains
g
publicity
50. Region can learn through taking risk and doing a development
• It would be instructive, as well as make a public statement, for the Region to
carry out its own project in cooperation with developers and consultants
51. DC reduction brought people to sites that wouldn't have been looked at
5Z. Issue building permits before MBE approval. I.e., below-grade permit, above-grade
later. Occupancy after MBE approval.
• Be flexible at intermediate steps -many little helps add up to a lot
53. Current owners use DC program, other incentives, as negotiating leverage on price.
MATTER OF TARGETTING WHD GETS INCNETIVES WHEN J HOW
• The recipient of the benefit from incentives is not always who it seems
54. Program must be set so tax advantage goes to developer or even consultant in condo
J other change of ownership
55.Owners of land need to be educated on contamination issues
56. Region should have Brownfield award
5 ? .Educate;
Developers
- Consumers
- Region J area tier staff
- Public
- Consultants
58. DEBATE: Look at variety -residential, nonresidential, different areas or concentrate
on few
• There were different opinions about whether many different types of projects
throughout the region should be targeted, or the pilot project should target only a
few projects
59. Make approval strict business decision
• Whichever one achieves the most with respect to regional objectives should be
chosen
60. Tie assistance to presales
61. Developers do value contribution to community goals
62. MUNICIPALITIES MUST BE WELL TRAINED TC DEAL WITH
CQMPLEXITY
63. Lack of thorough review of application will generate negative publicity, bad faith
64. Pilot project may need champion
65. Edmonton pilot project: targeted 6 projects, got 3 or 4 responses
6b, Region should deal with perennial issues holding up bxownfield in particular cases,
i.e. groundwater in Cambridge
THEMES FRE~M STAKEHOLDER WORKSHOP
Education
' of awareness and training regarding brownfield issues among the public,
• There is a lack
munici al staff, developers, consultants, site owners, and purchasers
P
' inflated o inians about the value of their sites. They are not aware of the
• Site owners have p
costs and complications of dealing with contamination
Administration
' oordinated a roach or ackage, including administrative streamlining,
• $rownf fields reduire a c pp p
' ' centives trainin ,assistance with marketing, and a stable regulatory environment.
f tnancial in g
' sto otential a licants from using a program. Timelines and
• Too much red tape wail p p pp
ad extended and the value of incentives are simply not worth it
approvals are alre y
• overnrnents need to co-ordinate their programs and procedures so as not to create
G
conflicting requirements
' inion re ardin whether money should be spent on only a few
• There are differences of op g g
' read around there ion more evenly and on different types development
show projects, or sp g
• Size of the site impacts the effectiveness of incentives
nfidentiali of environmental reports paid for with public funds
• There ~s concern about the co ty
• Fra rnented ownership can impede discovery of contamination
g
• MOE re lations are inconsistent and keep changing ,
' ' • ' e' interest in ursuit of regional goals; financial stability; duality
• Evaluation criteria. experienc , p
am~ net fiscal benefit on'public accounts; size of site; severity of
and experience of consultant to ,
contamination; geographic spread; Land use class
• Regulations should be internally consistent
• Standards should not change, once set. They should vest
Risk
there is continuin risk and liability for developers and consultants
• Despite cleanup efforts, g
involved with rehabilitating brownfield sites
' five with res ect to contaminated sites, especially Canadian bankers.
• Financiers are conservat p
' f contamination continue, adding to risk more pollutants will be
• Improvements to detection o
found on the site in future
ram should include some degree of risk transfer to increase the certainty of costs to
Any prog
the developer
of risk be and contamination impact brownf fields ~ structural unsoundness of
• ether sources y
existing buildings and marketability)
Incentives
' ' ion has set aside ma not be enough. However, the effectiveness depends
• $2.5 million the Reg y
on the size of sites targeted for incentives
'ves for brownfields should be delivered upfront, to help with rehabilitation expenses
Incenti
that occur at the beginning stages of development
' to retation should be given to Brownfield sites as well as the geographic area to
Abroad to rp
which an incentive program applies
be considerable flexibility in defining the role and relationship of the
• There should
municipality in partnerships with the private sector
' overnment are used as negotiating leverage by site owners. The
• Incentives offered by g
neficia of incentives is therefore not always straightforward
be ry
ether ideas
• A regional soil management system
• Foaling of risk for cost effective insurance
• Municipally-led developments
• Eligibility for due diligence costs and insurance premiums
• Pre-approval and pre-zoning of candidate sites
' the copse uences of contamination rather than only managing the
• Policy should consider q
presence of contamination
' has roundwater in downtown Cambridge, could be addressed
• Perennial prablerns, suc g
r
• ' ect some incentives to consultants in designing a Brownfield program
Dir
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES
Au ust 22 2001 Cit of Kitchener
The Economic Development Advisory Committee rnet this date, chaired by
Councillor Christina Weylie, the following members were in attendance: Steven
Voll, Lawrence Bingeman, Adrian Conrad, Willy Heffner, Ian Cook, Glen
Woolner, Bob Denton, Len Corker, A. Paul Singh, Mayor Carl Zehr
The following people sent their regrets: Peter Benninger, Sherry) Petricevic,
Howie Budd, Dan Piedra, Don Zehr, Mark Collins, Jahn Smola
The following people were absent: Jeremy Auger,
Staff in attendance: Kathy Weiss, Rob Morgan, Silvia Wright, Hans Gross,
Janette MacDonald, Cory Bluhm, Brandon Sloan
Approval of Minutes
Minute approval was deferred to the September meeting.
1. Discussion Items
T.1 Brownfield Discussion
Terry Boutilier, Senior Business Development Officer & Brownfield Coordinator,
was in attendance to provide a presentation and receive comments and
recommendations from the Committee to bring forward to the Finance and
Corporate Services Committee, Council and the Region of Waterloo.
Brownfield Incentive Program..
Mr. Boutilier provided an overview of how the current program works and
identified the fallowing changes to the program:
- studies and remediation work but no redevelopment work, add
administration costs
- matching 50°lQ grant for Phase 2 ESA
- reduction of development charge to equal remediation costs
- combined region & city TIG
- Payment use 100°/0 of region and city increment until paid or 14 years
whichever comes first
Mr. Boutilier did s ecif that there are no additional benefit to areas that are
p Y
exempt.
t
The Committee discussed the details of the new Regional Brownfield Program.
The following was raised:
- concern for current applicants not being included in the new program
- need for a da#a base that identifies these lands (Committee was advised
that to date only Quebec has a listing and that the City is unaware of
contaminated sites until they are told about them}
- have a timeline for the project sa Council can look at it again
The Cammittee agreed that they would endorse the proposed recommendation
to Council; however, only the following would be endorsed at this time;
"That Kitchener's Economic Development Advisory Committee concur with
the Proposed Joint. Regiona! -- Cr'fy Brawnfietds Financial lncenfive
Pro ram as outlined in Region of Ul~aterloo Staff Report F-O1-0461P-O1-
g
079"
The Committee would like Mr. Boutilier to come back to discuss the further
and details of the Cit endorsin the program and revising the current
impact Y 9
policies.
DEVEL~RMENT & TECHNICAL SERVICES COMMITTEE MINUTES
SEPTEMBER 24 2~~7 - g~ - CITY C1= KITCHENER
?. CAU-g?- - PRU~C~~~~ JC~~IT ~~GICN-CITY BP~w~VF~~LD~ F~I~ANCIAL INCENTIVE
PROGRAM
The Committee considered Chief administrator's Office report DTS~07.043, dated September
15, 2001, outlining the Proposed Joint Regional -~ City Brownfie(ds Financial Incentive Program,
subject to some further negotiations about calculation of the allowance for administrative costs
and that all applications mast meet all adopted policy and design guidelines,
Mr. Boutilier reported on ire progress made with respect to encouraging tf'~e Region of Waterloo
to become Involved (n financial incentives for Brownfield redevelopment, He noted that this
Council was inst~umer~a( in get~ng the legislation changed so that regional municipalities can
partic'pate In these financial incentives. Mr. Boutilier then explained the new incentive program,
and that more discussion with the Region is required on ~e calculation of administrative c~s~,
and the desire that redevelopment plans meet all approved poky and design guidelines. Mr.
Boutl(ier noted that one of the new advantages for a developer is that they will receive some of
the financ'a(incentives in the early part of the process, He stated the intension that this program
will be ready to start easy in 2008.
Counal(or Smo(a moved the staff recommendation noting that the key benefit of this financial
Incer~ive program is the fact that developers w'fl be able to access same of the funding at the
beginning pf the process. Councillor Vrbanovic spoke In support of the motion no~ng that
properties are being cleaned up and developed under this program that may never have been
redeveloped ~'thout it,
On motion by Councillor ~. Smola•
It was ~esolvetl:
"That the Proposed Joint Regional - Gity Brownfields Financial Incentive Program as
autl~ned in Reg~vn of Waterloo ~ta~ Report F•O?•048(PM07~g7g be supported, subject t0
further discussion on the calculation of ~e allowance for administrative costs, and the
requirement that all applica~ons must meet all adopted policy and design guidelines,"
aEVEL~PMENT & TECHNICAL SERVICES COMMITTEE MINUTES
,~~
SEPT~~IBER ~4, ~I~T - 9~ ~ CITY OP KI'~CI~IENER
8, ADJOURNMENT
On motions the meeting adjourned at 8:20 p.m.
Q. Gilchr'st
Committee l~dministrator
APPENDIX "D"
DRAFT Tax Increment Grant (TIG) Program Process Chart
Ste Details Res onsibiiit
1 A licant com letes Phase I and Phase II Environmental Site Assessments A licant
2 Provide Applicant with TIG Program Application and arrange apre- City
consultation meetin with Cit and Re ion if re uired.
3 Submit complete TIG Program Application to City staff. The TIG Program Applicant
application must include 2 copies of all supporting documentation (see
section ~.3
4 City of Kitchener TIG Committee reviews the application and determines if it City (TIG
is complete. Once it is determined that it is complete, the TIG Committee will Committee}
date stamp the application to establish cost eligibility date. This date will be
considered the "pre-remediation and redevelopment assessment date" in
relation to the MPAC assessment information.
5 City forwards copy of application and supporting documentation to Region for city***
internal review of eli ibilit .
6 The City TIG Committee} and Region will review the application for eligibility Region TIG
as per internal process. Review Committee}
& City (TIG
Internal Region review of the application for eligibility based on TIG program Committee}
criteria. If the Region deems the applicant eligible, the application will move
to step #9.
7 If the applicant is deemed ineligible by the City, the City will: City***
1. Identify the reasons far ineligibility;
'
; and
2. Notify Region to consult and discuss possible recourse
3. Contact applicant to identify reasons for ineligibility and discuss next
steps for resubmission.
8 If the applicant is deemed ineligible by the Region, the Brownfields Region
Coordinator will:
1. Identify the reasons for ineligibility;
d
2
; an
2. Notify City to consult and discuss possible recourse
3. Contact applicant to identify reasons for ineligibility and discuss next
steps for resubmission.
9 If deemed eligible by both the Region and the City, the City of Kitchener City Finance}
Finance Division will obtain the pre-remediation & redevelopment assessment
value of the property from MPAC based on the date the application was time-
stam ed.
14 Based on the MPAC assessment, the City will estimate the amount of the
City (Finance}
annual TiG payments Regional and City portions} and payment schedule
includin TIG reductions due to other assistance for Brownfield remediation .
1 At this stage it is expected that the Area Municipality will have determined their respective position on the
TIG application. if the Area Municipal position differs from that of the Region, consultation betwe en the
Region and the Area Municipality will occur,
At this stage it is expected that the local municipality will have determined their respective position on the
TIG application. If the Area Municipal position differs from that of the Region, consultation between the
Region and the Area Municipality will occur.
DRAFT Tax Increment Grant (TIG) Program Process Chart
Ste - Details Res onsibiiit
11 City will forward TIG payment and schedule estimates and notification of the City ***
City TIG Committee recommendation re. the application to Regional staff for
12 review.
The City and Region will submit a report with the eligible TIG Program
City (TIG
Application to their respective City and Regional Councils, Each repor# will Committee)&
include the following: Region
• Staff recommendations}; (Brownfields
• Background (location and description of property, contamination and Coordinator}
remediation, existing and projected assessment, environmental
expenses);
• Financial Implications to the City of Kitchener and the Region
(estimated TIG calculations, payment schedule};
• Area MunicipallRegional Staff position or recommendation on
respective application and coordinationlcommunication to date;
• Area MunicipaVRegianal Council decision (depending on respective
report dates);
• A roved Site Plan for Pro osed Develo meet.
13 City and Region Council will make a recommendation for approval or refusal City & Regional
of their onion of the TIG. Council
14 The Applicant is advised of City and Regional Council's decisions. City (TIG
If City and Region both approve their portion of the TIG, proceed to Step#15. Committee} &
If one Council refuses the application, the following will occur: Region
1. Staff will clarify and respond to any concerns CitylRegional Council (Brownfields
may have; Coordinator}*~*
~. Staff will identify a possible course of action that may address these
concerns;
3. Staff will notify City (if Region} or Region (if City) of the issues;
4. Staff will notify the applicant and determine whether or not the issues
can be resolved.
15 ADraft Tri-Partite Legal Agreement (Draft) is executed between the City, the City& Region
Region and the Applicant outlining the terms and conditions of the estimated
TIG, estimated annual TIG payments (Regional and City) and estimated total
TIG Pro ram fundin Re Tonal and Cit .
16 A copy of the Draft Legal Agreement will be provided to the City's Finance City (Finance}***
Division, the Re ion and the A licant.
1l The Applicant engages the consultant(s) andlor contractors} to proceed with Applicant
the site remediation work.
18 Upon completion of the remediation work, the Applicant files a Record of Site Applicant
Condition with the Ministry of the Environment. The Applicant then provides 2
copies of the Ministry's acknowledgement and Record of Site Condition to the
City. Two copies of a Record of Site Condition, certifying site remediation to
appropriate contaminant levels according to Provincial criteria, must be
submitted to the City and acknowledged by the Ministry of the Environment
rior to commencin an develo mentor redevelo ment.
19 Cit forwards ca ies of Minist letter and RSC to Re ion. Cit ***
DRAFT Tax Increment Grant (TIG) Program Process Chart
Ste Details Res onsibilit
20 Applicant
The Applicant obtains Building Permits} andlor other required permits from
the City and commences development.
• The Redevelopment Plan for the site must meet City of Kitchener
policies and other approved documents; and
• Ail improvements to buildings or land shall have been made pursuant
to an approved Building Permit, and constructed in accordance with
the Ontario Building Code, all applicable zoning requirements, and
any conditions of Planning Approvals. Incentive recipients must
resolve any outstanding Orders (such as Building, Fire, By-law
Enforcement, or Public Health orders satisfactoril .
21 Re-development complete. Final inspection of redeveloped site and Building Division
occu anc ermits issued.
22 Once the development is complete and the property will be assessed by Applicant
MPAC. The property owner will be issued a new tax notice based on the post-
remediation &redevelo ment assessment value.
23 Applicant forwards the post-remediation Applicant
&redevelo ment assessment to the Ci of Kitchener Finance Division.
24 Cit forwards ost-remediation &redevelo ment assessment to Re ion. Cit ***
25 The actual annual and total TIG payments are established by the City of City Finance) &
Cambridge Finance Division and the Region and added into the Legal Region
Agreement. The Legal Agreement is then finalized using the confirmed
financial amounts.
26 After the current property owner has paid the taxes in full for one ~1 }year, the TIG Finance
City wi11 confirm that the property is not in tax arrears and all other
requirements of the TlG Program Agreement and Community Improvement
Plan have been met.
27 The City issues the first annual payment of the TIG to the successful Finance
applicant. Current property owners} continues to pay property taxes for the
site at its current ost- remediation &redevelo ment assessment value.
28 Annual TIG payments continue until the end of the 10 year or in the year in Finance
which all costs eligible for TIG Program funding are reimbursed, whichever
occurs first.
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Attachment 2 -REGION OF WATERLOO
Brown~ields Working Group
Terms of Reference
objectives:
^ Furthering the goals of Local, Regional and Provincial growth management reurbanization initiatives by
romotin the remediation, rehabilitation, and redevelopment of financially challenging sites throughout the
p g
Region that would most likely serve as a catalyst for additional development;
^ Provide and maintain a coordinated approach between local partners for the administration, improvement
and monitoring of established brownfield incentive programs; and
^ Create a forum to discuss the opportunities and challenges related to brownfield redevelopment, including
the identification of strategies to address them.
Principles:
^ Advance shared interests, priorities, andlor policies;
^ Target financial incentives where most needed to overcome barriers to redevelopment; and
^ Promote both residential and non-residential development.
Role:
^ Will serve primarily as a liaisonlresource body for the purpose of sharing information related to the
im lementation of existing programs as well as specific brownfield projects;
p
^ Will rovide an opportunity to further develop existing brownfield programs in terms of administration,
p
improvement and monitoring;
^ Will work with the Province to continue developing the broader framework required for brownfield
remediation and redevelopment; and
^ Will assist in the coordination of shared andlor individual communication and marketing efforts to ensure
consistent messages and end user clarity.
Proposed Membership:
^ Region of Waterloo Brownfields Coordinator;
^ City of Cambridge Representative (PlanninglEconomicbevelopment};
^ City of Kitchener Representative (PlanninglEconomic Development};
^ City of Waterloo Representative (PlanninglEconomic Development};
^ Township of Wellesley Representative;
^ Township of Wilmot Representative;
^ Township of Woolwich Representative;
Township of North Dumfries Representative; and
^ Represen#ative from MPAC.
Resources Required:
^ It is expected that this Committee would meet on a quarterly basis or as needed;
^ Email correspondence as required.