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HomeMy WebLinkAboutCAO-08-041 - Downtown Community Improvement Plan1 KiTCR ChiefAdministrator's Office Report To: Development and Technical Services Committee Date of Meeting: January 5, 2008 Submitted By: Rod Regier, Executive Director, Economic Development Alain Pinard, Interim Director of Planning Prepared By: Cory Bluhm, Urban Investment Advisor Wards}Involved: Wards 1 and 6 Date of Report: December 19, 2008 Report No.: CAO-08-041 Subject: Downtown Community Improvement Plan - New Fapade Grant Program - and - King Street Fapade Guidelines RECOMMENDATION: 1. That modifications to the Downtown Community Improvement Plan, proposing to convert the current loan/grant program to a grant program, be approved in the form shown in the attached By-law and attached modifications to Council Policy I-535; 2. That the application form, approval letter, checklist and rating system be received for information purposes, as attached in Appendix A; and further, 3. That the King Street Fapade Guidelines be approved in the form shown as attached in Appendix C. BACKGROUND: The City's Downtown Financial Incentives Team has reviewed the existing fapade loan program and is recommending modifications as outlined in this report. The team includes: - Dan Chapman, Finance - Jennifer Young, Building Services - Alain Pinard, Planning - Silvia Wright, Economic Development - Sandy Curzon, Economic Development - Rod Regier, Economic Development - Cory Bluhm, Economic Development The City's Economic Development Advisory Committee, in its review of the King Street Master Plan, identified storefront and fagade design quality as a major contributor to the economic success of King Street. As such, they encouraged staff to review the current Fagade Loan Program to determine if a more effective program could be developed. The City's Downtown Design Policies, adopted in 2006, contain strategies for implementing the design policies. Strategy 1(ii) identifies the preparation of urban design guidelines for King Street as a key implementation tool. The proposed King Street Fagade Guidelines satisfy this policy. Actions 2, 27, 59 and 61 of the City's Downtown Strategic Plan (Vol. 3) all recommend various actions to enhance downtown facades through the use of urban design tools and financial incentives. Action 4.2.1 of the City's Economic Development Strategy, 2007-2010, recommends expansion of the fagade loan and grant program. REPORT: As part of the implementation of the King Street Master Plan, staff have reviewed the current Downtown Fagade program and are recommending appropriate changes to stimulate private sector investment. At the same time, staff have developed urban design guidelines to accompany the proposed fagade grant program. The proposed King Street Fagade Guidelines will ensure private sector improvements along King Street (from Cedar Street to Francis Street) compliment the existing streetscape design in the Market District and the new streetscape design for the City Centre District. The proposed guidelines align with the City's urban design policies. Proposed Facade Grant Proaram Currently, property owners can receive loans of up to $15,000 per municipal address, of which $2,250 (or 15%) is forgivable. Properties with multiple storefronts can receive a maximum loan of up to $45,000. The original intent of this program was to assist with the rehabilitation of the downtown's deteriorating building stock. Now, with a new focus on improving the exterior design and overall aesthetics of downtown facades, it is appropriate to consider a revised program with new objectives. Since January 2006, 13 fagade loan applications have been approved. Of these, only five resulted in aesthetic improvements to street facing facades. The remainder were for interior improvements or exterior maintenance. Only two resulted in improved storefronts and signage. Reasons for the lack of aesthetic improvements include: - $15,000 loan not sufficient to cover the cost of significant fagade improvements; - $2,250 forgivable portion not sufficient to entice private sector participation; - Inability for merchants (non-landowners) to access the loan program; - Building condition priorities placed a focus on fundamental building infrastructure needs (roof, pluming, etc.) rather than aesthetics; and, - The current loan program can be onerous on both applicants and staff resources. The City's Downtown Financial Incentives Review Team has reviewed the current program, and others offered by comparable Ontario municipalities. Five municipalities offer direct grants, ranging in value between $5,000 and $15,000. Brantford offers grants of up to 25% of the value of work done, with no maximum cap. The proposed program would convert the existing loan/grant program to a direct grant program as follows: - Grants would be offered up to $10,000 per fagade, not to exceed 50% of project costs; - Grants would be available to merchants/businesses as well as land owners; - Eligible work would be limited to street fronting facades and signage only, and would exclude interior, roof or rear/side facade repairs; - A maximum of 10% of the fagade grant could be used towards soft costs (ex: design fees); - The program would be funded through the existing capital budget for Fagade Loans; - At least 70% of the available annual grant funding would be reserved for King Street facades; - Any fagade improvements would be required to meet the general intent of the City's downtown design policies and the proposed King Street Fagade Guidelines; and, - The new grant program would commence on March 1, 2009. Staff will monitor applications over the initial program years to determine if the value of the grant is appropriate. City Council would have the option of modifying the program in the future should there be a need to increase or decrease the maximum grant value. It is the opinion of staff that these changes will enable the Fagade Program to become a catalyst for private sector investment in fagade improvements, focusing much of the activity on King Street. The grant program will be more appealing to existing and future businesses, with a less onerous process for both staff and applicants. Tying the grant program to urban design guidelines will help to ensure fagade improvements will be of a high quality. These changes support the recent infrastructure improvements within the Market District and the proposed improvements within the City Centre District. The changes also support the City's Municipal Plan, Downtown Strategic Plan, Economic Development Strategy and the Economic Development Investment Fund. While a grant program will result in a depletion of the existing program budget, it should result in quicker improvements, focused largely along King Street. King Street Fagade Guidelines To accompany the proposed grant program, a team of staff have developed fagade guidelines for King Street. They have been developed from a variety of sources: - Input from members of the Downtown Advisory Committee - Input from City staff; - Community input received during the Help Design Downtown Kitchener process, and resultant Downtown Design Policies in the City's Official Plan; - Relevant and applicable information from the 1987 King Street Fagade Plan; - Significant research on the fagade treatments of 100's of main streets throughout North America and Europe; and, - Significant research into current storefront design practices and trends. The document is structured to guide fagade improvements in a variety of ways. Detailed sections offer guidance on design elements such as entranceways, materials, projections, lighting, signage height, etc. Photographic sections offer good examples of storefronts and signage. Illustrative sections offer digital sample renderings of each fapade and storefront, complete with property-by-property recommendations for improvement. If approved, these guidelines would be implemented in the following ways. They act as a conversation tool between city staff and property/business owners contemplating fapade improvements. These conversations are often triggered by the need for a building or sign permit. Facade grants and site plan approvals would only be issued for proposals that meet the general intent of these guidelines. FINANCIAL IMPLICATIONS: The existing Facade/Interior Loan program currently has access to approximately $230,000 of funds which will increase to approximately $600,000 as existing outstanding loans are repaid. This does not include any uncommitted funds under the Upper Storey Grant/Loan. Under the proposed program, a maximum of $200,000 worth of grants would be issued in 2009. A maximum of $100,000 would be issued each year in 2010-2013. Any unallocated funds would be transferred to the subsequent year. Allocation of all funding would result in at least 60 fapade improvements, 42 of which would be on King Street, leveraging construction values of at least $1,200,000. If all funding is allocated over the next five years, the program would either cease to exist, or new funding would have to be allocated. For example $500,000 of upper-storey loan repayments could be made available for fapade improvements. Tax revenues are based on tax assessments which are derived, in part, by property values, revenue streams and lease rates. Significant fapade improvements can increase all three, thus increasing municipal tax revenues over time. COMMUNICATIONS: The draft bylaw and proposed King Street Fapade Guidelines were advertised in the Record on December 12th. Similar information was posted on the City's website, with a news link on the homepage. One comment was submitted, generally supporting the proposed changes, with a suggested modification to one of the fapade renderings. The modification has been included in the proposed draft. All affected property and business owners along King Street were notified of the proposed programs, via direct mail, and given opportunity to comment. One letter of support was submitted, with no comments submitted in opposition. A number of property and business owners have inquired indicating an interest in participating. Both proposed programs were presented to the Downtown Advisory Committee. DAC offered general support, suggesting a portion of the grant be used to cover the costs of engaging design professionals. The proposed grant program was presented to the Economic Development Advisory Committee who recommended funding be increased where multiple property owners collaborate. After exploring this option, staff determined integrating such an option would be difficult to administer, would require significant staff resources, and could create significant conflict should one or more collaborating property owners not proceed with work. The Kitchener Downtown Business Association has noted that members are very interested in the proposed program. The City is required to invite comments from the Ministry of Municipal Affairs and Housing. They recommended a number of minor changes to the grant program, which have all now been incorporated. CONCLUSION: The current Fapade/Interior Improvement Loan Program is not stimulating the quantity and quality of aesthetic improvements necessary to support the City's downtown investments. The proposed program changes could act as a catalyst to accelerate private sector investment, focusing enhancements along King Street. The proposed King Street Fapade Guidelines will assist in ensuring any grants issued will be for projects which generally meet the City's expectations. In summary, the Department of Development and Technical Services and the division of Economic Development recommends that the Downtown Community Improvement Plan be approved in the form shown in the Proposed By-law, and that the King Street Fapade Guidelines be approved as shown. Cory Bluhm MCIP RPP Urban Investment Advisor Rod Regier Executive Director, Ec Dev. AttanhmPnt~~ Draft Bylaw Draft Revised Council Policy I-535 Newspaper Advertisement Alain Pinard MCIP RPP Interim Director of Planning Silvia Wright, Manager of Downtown & Community Development Appendix A -Application Form, Approval Letter, Checklist, Rating System Appendix B -Community & Agency Responses Appendix C -King Street Fapade Guidelines DRAFT BY-LAW Date, 2009 BY-LAW NUMBER OF THE CORPORATION OF THE CITY OF KITCHENER (Being a by-law to amend the Downtown Kitchener 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, there for; AND WHEREAS the Council of The Corporation of the City of Kitchener designated the downtown area of the City as a Community Improvement Project Area by By-law Number 97-12, passed on January 20, 1997; and subsequently amended by By-law 2001-73, passed on April 23, 2001, and by By-law 2004-151 passed on June 29, 2004; AND WHEREAS a Community Improvement Plan, known as the Downtown Kitchener Community Improvement Plan, was adopted for the said area by By-law Number 97-13, passed on January 20, 1997 and approved by the Minister of Municipal Affairs and Housing on April 2, 1997; AND WHEREAS The Downtown Kitchener Community Improvement Plan was amended by By-law 2001-74, passed on April 23, 2001 and approved by the Minister of Municipal Affairs and Housing on November 1, 2001; further amended by By-law 2004-152, passed on June 29, 2004 and approved by the Minister of Municipal Affairs and Housing on July 29, 2004; and further amended by By-law 2005-112, passed on June 13, 2005 and approved by the Minister of Municipal Affairs and Housing on July 6, 2005; AND WHEREAS The Downtown Kitchener Community Improvement Plan, as amended, was applied to The Downtown Kitchener Community Improvement Project Area; AND WHEREAS it is deemed desirable to further amend The Downtown Kitchener Community Improvement Plan and to apply the plan as amended to The Downtown Kitchener Community Improvement Project Area; follows: NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as 1. That "The Downtown Kitchener Community Improvement Plan" be amended by replacing Program 9.4 Fapade/Interior Improvement Loan Program, in its entirety, with the following: "9.4 Facade Improvement Grant Program A. Background In 1995, Kitchener City Council adopted a loan program to assist with fagade and interior improvements to downtown buildings. The program offered loans up to $15,000 per property, 15% of which are offered in the form of a forgivable loan/grant. Between 2005 and 2008, the program failed to produce the desired results of significant fagade improvements and private sector investments throughout the downtown. As such, modifications to the program are proposed. The City of Kitchener has recently completed streetscape enhancements to King Street within the Market District. streetscape enhancements are currently planned for King Street within the City Centre District. These investments, in combination with financial incentives, are intended to stimulate private sector investment in commercial facades. B. Intent This grant program is intended to assist property owners and tenants with the financing of street-oriented building fapade improvements in the Downtown Community Improvement Area, to implement the City's urban design and heritage conservation policies, and support municipal investments in streetscape infrastructure. Eligible works include the following street fronting fagade improvements: 1. Repainting, cleaning or re-facing of fagades; 2. Repair or restoration of fagade masonry, brickwork or wood; 3. Replacement, repair or restoration of cornices, eaves, parapets and other architectural features; 4. Replacement or repair of windows; 5. Entranceway modifications that improve the appearance and/or access to the commercial units; 6. Redesign and reconstruction of the store front; 7. Installation of appropriate new signage or improvements to existing signage; 8. Installation or repair of canopies and awnings; 9. Installation or repair of exterior lighting; and, 10. Restoration of historic features. C. Area of Application The Facade Improvement Grant Program is available to all property owner(s) and commercial tenant(s) within the Downtown Community Improvement Area for the City of Kitchener. ~gibility Requirements 1. All applications for grants under this program are subject to the availability of funding. The provision of any Fagade Improvement Grant will be administered on a first come first served basis to the limit of available funding in accordance with any administrative rules governing this and other grant or loan programs. 2. Kitchener City Council may specify the amount of annual funding that will be made available each year the program is in existence. If the total value of funding requested, for all new applications in any given year, exceeds the total amount of funding available, all applications will be prioritized by the Downtown Financial Incentives Review Committee. 3. Kitchener City Council may specify, through council policy, that portions of available funding be directed to specific streets or areas within the Downtown Community Improvement Area. 4. Only those buildings with commercial use(s) at ground floor shall be eligible for grants. 5. Tenant(s) must provide written authorization from the registered property owner(s). 6. Property owner(s) and tenant(s) who have defaulted under any previous City loan program will not be eligible for a Facade Improvement Grant. 7. Facade Improvement Grants will not be issued to any eligible applicants who are in arrears of any municipal financial obligation. 8. Facade Improvement Grants will not be issued to correct any Building Code, Fire Code or Property Standards orders 9. The Facade Improvement Grant Program will not be applied retroactively to works started prior to the commencement of this program. No grants will be issued for works which have received grants under any other municipal incentive program. 10. The total value of the grant provided under this incentive plus any other incentive under Section 9 of this Plan shall not exceed the value of the work done. 11. The City of Kitchener reserves the right to deny or refuse any application. E. Program Assistance and Requirements 1. The maximum amount of any grant that may be issued under this program shall be $10,000 per municipal street address or storefront, subject to an overall maximum of $30,000 per property owner for a building with multiple street addresses or storefronts. A maximum grant of $20,000 may be issued for buildings on corner lots, where fapade improvements are proposed on both street facing facades. The grant shall not exceed 50% of the costs of the eligible work per building. No municipal street addressor storefront shall receive more than a total of $10,000 under this program within a five year period. Not more than 10 percent of the entire grant may be used for soft costs, such as consultant, design or project management services; 2. The proposed fapade improvements must satisfy the City's downtown design policies and the City's King Street Fagade Guidelines, if applicable, to the satisfaction of the Downtown Financial Incentives Review Team; 3. Any proposed fapade improvements must meet the Ontario Building Code, to the satisfaction of the Chief Building Official; 4. Any proposed sign improvements must meet the City's Sign Bylaw, to the satisfaction of the City's Director of Planning or designate; 5. Any proposed modifications to buildings designated under the Heritage Actor identified as being of historic interest by the City of Kitchener may be subject to additional approvals; 6. No grant shall be issued until such time as the eligible works are deemed to be complete by the Downtown Financial Incentives Review Team; 7. The City of Kitchener reserves the right to have a quantity surveyor inspect all completed eligible works to ensure the monetary value of work completed coincides with the monetary value of the work proposed as indicated on any approved grant application. Should the quantity surveyor deem the monetary value of work completed not to coincide with the monetary value of the work proposed, the City of Kitchener reserves the right to reduce the amount of the grant accordingly. 8. Approval of a grant and its amount shall be subject to the availability of funding as determined on an annual basis; and, 9. The City of Kitchener reserves the right to discontinue this program at any time. F. Procedures 1. The applicant is required to submit a complete Fapade Improvement Grant application form to the Manager of Downtown Community Development prior to the submission of any signor building permit application. The City may specify additional submission requirements, such as but not limited to plans, elevations and quotations. 2. Complete applications will be reviewed, and only those applications which meet the City's Urban Design Policies and King Street Fapade Guidelines (if applicable}, and are capable of satisfying the City's Sign By-law and the Ontario Building Code, will be considered. 3. Applicants will be notified in writing if their proposed application has been accepted. 4. The final decision as to how much of the proposed work, if any, is eligible for funding under the Fapade Improvement Grant Program will be made by the Downtown Financial Incentives Review Team. 5. Prior to approving a Fapade Improvement Grant, City staff may inspect the building to review the condition of the fapade and the proposed improvements. 6. Upon completion of the eligible works, the applicant must provide the Manager of Downtown Community Development with copies of actual invoices and proof of payment. City Staff will conduct an inspection of the completed work, and do what is necessary to verify the accuracy of all invoices. 7. Upon verification that the eligible works are complete, and invoices and proof of payment have been verified to be accurate, the grant shall be issued. 8. Where construction or renovations are, in the opinion of the City's Chief Building Official, substantially suspended or discontinued for more than six months, the City may revoke any approved grant applications. " DRAFT REVISED COUNCIL POLICY I-535 That Council Policy I-535 be amended as follows: 1. That Section 4 `Fagade/Interior Improvement Loan Program -Loans issued after June 1, 2005', be deleted in its entirety and replaced with the following: "4. Facade Imarovement Grant Proaram Whereas section 9.4 of the Downtown Community Improvement Plan outlines the Fagade Improvement Grant Program, as approved by the Ministry of Municipal Affairs and Housing, the following additional policies also apply. Those policies listed herein are not subject to Ministry approval, and may be modified from time to time through Council resolution: 4.1 Allocation of Funding As enabled through policy 9.4.D.2 and 9.4.D.3 of the Downtown Community Improvement Plan: 4.1.1 Funding will generally be allocated as follows, with any unallocated funds transferred to the subsequent year: 2009 - $200,000 2010 - $100,000 2011 - $100,000 2012 - $100,000 2013 - $100,000 4.1.2 A minimum of 70% of available annual funding will be allocated to properties that front onto King Street. 4.1.3 A maximum of 30% of available annual funding will be allocated to properties that do not front onto King Street. 4.2 Termination of Program As enabled through policy 9.4.E.9 of the Downtown Community Improvement Plan: 4.2.1 This program, unless otherwise extended by City of Kitchener Council, will expire December 31St, 2013. 4.3 Submission Requirements As enabled through policy 9.4.F.1 of the Downtown Community Improvement Plan: 4.3.1 A complete application shall consist of: - Application from filled out in its entirety; - 2 written estimates from a qualified architect or contractor - 2 copies of the conceptual elevation plan, identifying dimensions, materials and colours of the entire street-oriented fapade; - 2 copies of the proposed sign plans, identifying dimensions, materials and colours; and, - If applicable, Tennant must provide written authorization from registered property owner. 4.4 Downtown Financial Incentives Review Team The Downtown Financial Incentives Review Team shall be comprised of the following: - At least 1 staff member of the City's Economic Development Division. - At least 1 staff member of the City's Planning Division. - At least 1 staff member of the City's Building Division. - At least 1 staff member of the City's Finance Department. - Legal, Heritage Planning and Urban Design staff as necessary."