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HomeMy WebLinkAboutCAO-09-005 - Brownfield Remediation Program Application - The Tannery District - 36 Francis St SI L REPORT 74 Report To: Finance and Corporate Services Committee Date of Meeting: February 9, 2009 Submitted By: Kathy Weiss, Director of Business Development Prepared By: Terry Boutilier, Senior Business Development Officer and Brownfield Co-ordinator Ward(s) Involved: Ward 6 — West-Victoria Park Councillor Christina Weylie Date of Report: February 3, 2009 Report No.: CAO-09-005 Subject: Brownfield Remediation Program Application The Tannery District - 36 Francis Street South RECOMMENDATION: 1 That the City of Kitchener approve the Application, received from Francis Street Inc. dated September 23, 2008, and received on October 29, 2008. In exchange for a completed and filed Record of Site Condition for 36 Francis Street South the City of Kitchener will provide a grant in the form of an annual rebate on City taxes in an amount equal to 100% of the City Tax Increment; where the City Tax Increment is defined as the difference between the City portion of real property taxes for the 2008 Taxation Year and the new City portion of real property taxes levied as a result of a new assessment by the Municipal Property Assessment Corporation (MPAC) following completion of the project. The property tax grant is estimated to be $244,575 in the first year following re-assessment by MPAC and $109,151 in the second year following re-assessment. 2. That the Region of Waterloo Brownfield Coordinator be advised of City Council's decision regarding this Application. This Application pertains to property municipally addressed as 36 Francis Street South. The Tannery District is the former Lang Tannery, an industrial complex that occupies 1.61 hectares (3.97 acres) in a full block in the Warehouse District of downtown Kitchener. The complex contains approximately fifteen inter-connected industrial buildings from one to five stories built between 1896 and 1956. b) Contamination and Remediation Remediation of the soil, ground water and building was undertaken in 2008. The work included the removal Poly Aromatic Hydrocarbons (PAH) impacted soils, heavy metals impacted soils, Bunker C oil and tank, and asbestos removal from the Building. (See attached letter dated January 19, 2009 for more detail.) c) Existing and Projected Assessment There are no tax arrears outstanding on this property. The Total 2008 Assessment for the lands is $2,317,000, and has a mixed Assessment comprising CT (Commercial Taxable Full 92%) and LT (Large Industrial Taxable Full 8%). 2008 property taxes were $100,510.89, split as follows: City of Kitchener $205777.85 Region $315567.47 Education $485165-64 Excluding the Education component, the total 2008 Municipal Taxes are $52,345.32. The projected post-project Assessment value is $30 million (following completion and full occupancy.) Applying the 2008 Tax Rates, the projected Municipal Taxes would be $668,499.90 split as follows: City of Kitchener $2655353.00 Region $4035146.90 This is the first application received under the new City - Region Brownfield Remediation Program, approved by Kitchener City Council in 2008. Under the new Program the cost of the Tax Incremental Grant is now proportionally shared between the two Municipalities. Based upon this projection, the City Tax Increment (i.e. the difference between the existing City tax level and the future ' City tax level is estimated at $244,575.15 (2655353 — 20,777.85). The Regional Tax Increment is estimated at $371,579.43 (4035146-90 — 31,567.47). (See Table 2 — Tax Increment Calculation attached for more detail.) Another significant provision of the new City - Region Brownfield Program is that both municipalities will pay back 100% of their respective Tax Increments until the Eligible Remediation Cost is attained, rather than spreading the payments over 10 years as done under the previous program. Celli 2111111111111 11!�� i Cadan Inc. and their Environmental Consultants, Naylor Engineering Associates, estimate the Eligible Remediation Cost at $891,136. This includes Environmental Assessments, Remediation Work, 10% Indirect Remediation Costs, but does not include GST. FINANCIAL IMPLICATIONS: The approval of this Application will obligate the City of Kitchener to provide an annual municipal property tax rebate estimated to be $244,575 in the first year following re-assessment has been applied to the property by MPAC (assuming successful completion of the project), and $109,151 in the second year following re-assessment. Under no circumstances will the combined level of municipal tax rebate exceed the Eligible Remediation Cost., as defined by the Program. IN COMMUNICATIONS: This Application has not been circulated to the public. The Region of Waterloo will consider its portion of this application at the Planning and Public Works Committee scheduled for March 3, 2009. The Brownfield Steering Committee, consisting of the City's Brownfield Co-ordinator, City Solicitor, and Director of Planning, reviewed the revised application at its meeting on September 215 2008. Staff support acceptance within the terms and conditions of Region of Waterloo - Kitchener's Brownfield Remediation Program. Terry Boutilier, MCIP, RPP Senior Business Development Officer & Brownfield Co-ordinator Joyce Evans, CMO, MPA, FCGA Director of Revenue Jeff Willmer Interim General Manager of Development and Technical Services F M = ST272 T-Tem Kathy Weiss, Director of Business Development Rod Reg ier, Executive Director of Business Development • Letter from Naylor Engineering Associates, January 19, 2009 • Table 1 — Summary of Eligible Remediation Cost • Table 2 — Tax Increment Calculation • Application — dated September 23, 2008 3 aylor Engineering AssoGiateS U11. 353 Bridge Street East Kitchener, Ontario N2K 2Y5 519-741-1313, Fax 741-5422 2215E6104 %,%1v-jv,1.nay[oreng.com January 19, 2009 EMAIL TRANSMISSION Cadan hic. 156 Duncan Mill Road Suite 12 Toronto, Ontario M3B 3N2 Attention: Mr. Dan Berholz Dear Sir: Re: Soil :emediation Lang Tannery Site Joseph Street, Victoria Street South, Charles Street,, and Francis Street Kitchener,, Ontario We are pleased to submit this summarized update/actio-n plan for the remediation of soil at the above reference property in Kitchener, Ontario; to address site impacts as a result of historical on-site activities. Background Naylor Engineering has previously completed the following environmental assessments for this site: • Phase I and 2 Environmental Site Assessment — Former Lang Tannery/Ball Warehouse Property, Kitchener, Ontario (Report No. 2215EI.ROI, October 1998); • Groundwater Monitoring — Former Lance Tannery/Ball Warehouse Property, Kitchener Ontario (Report No. 2215E2.ROI , April 2006), 0 Underground Storage Tank Removal — Former Lang Tanner /Ball Warehouse Property, Kitchener, Ontario (Report No. 2215E3.ROI I, May 2006); and, Brantford Kitchener S'Iratford Soil Remedlation —tang Tannery January 2009 Joseph St., victoria St. S., Charles St., and Francis St., Kitchener Supplemental Phase 2 Environmental Site Assessment — Former 'Lang Tannery/Ball Warehouse Property, Kitchener, Ontario (Report No. 2215E4.ROI, March 2007 and 2215E5.R01, October 2007). Phase 2 Environmental Site Assessment — Ball Warehouse Property, Kitchener, Ontario (Report No. 2215E5.R0 I, October 2007). Monitoring of Soil Remediation — Lang Tannery (former 'Ball Warehouse Property, Joseph Street/Victoria Street South/Charles Street/Francis Street, Kitchener, Ontario (Report No. 2215E6.R01, December 2008) Remediation Objective As we understand it, the objective of the environmental remediation was to address the impacts from the on-site historical activities related specifically to the city block bound by Joseph Street, Victoria Street South, Charles Street, and Francis Street. We further understand that the site is proposed for future commercial redevelopment, therefore, soil and groundwater were remediatcd to meet the applicable MOE Table 2 Generic Site Condition Standards for ind-Listrial/commercial/community (1CC) land use for sites with coarse textured soil in a potabIe ground 'Water situation in the MOE's 5oil, Ground Water and Sediment Standards for Use Under Part XV. I of the Environmental Protection Act March 9, 2004 Ontario Regulation 153/04. Scope of Work (Remedial Action Plan) The following are descn*ptions of the approach for canyng out the remediation of the impacted soil previously identified at the subject site. The scope of work for the remediation consisted of the following tasks: 1. Excavation and off-site disposal of exterior (vicinity of the intersection of Victoria Street South and Joseph Street) PAH impacted soils. 2. Excavation and offsite disposal of interior Metals impacted soils underlying, and in the vicinity of the boiler room following the removal. of the boiler and associated equipment. 3. Excavation and off-site disposal of interior PHC and PAH impacted soils in the courtyard area. Prior to remedial activities; additional work was completed; removal of Bunker C product, tank cleaning and removal, demolition of the tunnel,, demolition of the tank building, and asbestos removal in the vacuum pump room. h-i November 2007 we provided an estimate of quantities of impacted soil to be removed, as well as budgetary costs for removal of the Bunker C tanks, removal of impacted soils, and related engineering fees. Our estimate of costs did not include other' items directly related to the .remediation work, such as removal and replacement of the boiler heating system, etc. The attached Table I provides a final surm-nary of combined actual remediation costs (provided to us by Cadan Inc.) Naylor Engineering 2215E6104 Y AssociateS Page 2 January 2009 Soil Remed"ation — Lang Tannery ' Joseph St., Victoria St. S., Charles St., and Francis St., Kitchener We trust that this brief letter is suitable for your Present requirements. If you have any questions or I - concerns please do not hesitate to contact our office. Yours very truly, Dave S. Nay] Senior Coast jmP Encl. Table I — summary of Remediation Costs Naylor Engineering 2215E6104 Associates Page 3 TABLE 1 SUMMARY OF REMEDIATION COSTS Lang Tannery Site Joseph Street, Victoria Street South, Charles Street, and Francis Street Kitchener Ontario Remediation Task Actual Cost Direct Remediation Costs Environmental Assessments $219.144,50 R✓mediation Work: exterior PAH impacted soils (Joseph Street) $78,595.16 boiler room area metals impacted soils (including boller reinstatement $314.,779.73 Bunker C oil UST area (including tank rernoval) $232,055-36 Asbestos Removal $91,600.00 Other Direct Costs $6314,949.14 Total Direct Costs $810J23.89_ Indirect Remediation Costs hicluding planninty. architectural, mechan*c,, 1. lctl.'al. financint-r, insurance. tax. $81 M12.3 9 Total Indirect Costs (10%) $81,012.39 Total Costs Before CAST $891,136.28 G (5 %) $443556.81 TOTAL $935,693.09 Notes: 1. Costs provided by C(adan Inc. based on paid invoices for completed work, I Indirect costs associated with site remediation work exceeded $500,000 but were capped at 10% of direct costs. Naylor End 22 1 5E6. L04 Table 1 From: Daniel Berholz [mailto:dan @cadan.ca] Sent: Tuesday, February 03, 2009 :33 PM To: Terry Boutilier Cc: 'Ian Caner' Subject: Other Direct Costs Terry, Per our discussion, below in the list: Environmental Inspection, Sampling, Monitoring, Lab work Naylor $19,881.72 Environmental Engineering Services Naylor $20,890.94 MOE Hazardous Waste Registration Cost and Fees MOE -HWIN $543.97 Inneractive Fire Watch Required by City During Tank Area Remediation Security $15,536.51 Sprinkler Work (Removal, Disconnection, Reconnection required to completed environmental remediation) Vipond $7,096.00 ubfiotal $6394914 Please review and let me know if you have any questions. Regards, Dan TABLE 2 Tax Increment Calculation Prior to After Project Remediation Completion Increment Current Value Assessment Residential/New Multi-Residential (RT/NT) 0 Multi-Residential (MT) 0 Commercial (CTDT,ST,GT,XT,YT,ZT) 2,127,440 30)0001000 27,872,560 Industrial (IT,LT,JTKT) 189,560 189,560 Tax Rates Area Municipal Residential/New Multi-Residential Multi-Residential Commercial Industrial Region Residential/New Multi-Residential Multi-Residential Commercial Industrial Annual Taxes Area Municipal Region 0.00453600 0.00453600 Eligible TIG Amount 0.00453600 0.00975230 Annual 0.00975230 Total 0.00975230 0.00884510 Total 0.00884510 0.00884510 0.01034200 0.01034200 0.01034200 0.00689141 0.00689141 $ 0.00689141 0.01481651 $ 0.01481651 Region 0.01481651 0.01343823 $ 0.01343823 $ 371, 579 0.01343823 0.01571239 Total TIG 0.01571239 $ 61,6', 1_55 0.01571239 $ 201777.85 1 $ 265,353.00 1 $. 2447575.15 $ 31,567.47 $ 403,146.90 $ 371,579.43 %.ou5t5 c:iigivie -tor i iv Eligible Remediation Costs (including 10% Allowance) $ 891,136 Less Other Brownfield Financial Assistance Units Amount Regional ESA Grant $ Regional DC Brownfield Exemption $ Area Municipal DC Brownfield Exemption $ Other $ Total Other Brownfield Financial Assistance $ - Net Remediation Costs Eligible for TIG $ 891,136 Amount of Tax Increment Grants Maximum Potential TIG Eligible TIG Amount Annual Total Annual Total 'Tax Increment Grant Area Municipal $ 244,575 $ 27445,752 $ 244,575 $ 353,726 Region $ 3711579 $ 37715794 $ 371, 579 $ 5377410 Total TIG $ 61,6', 1_55 61161546 616 1-1,55: 89171:36. TIG Pavment Schedule Year Area Municipality Region Total TIG 1 $ 244,575 $ 371,579 $ 6161155 2 $ 1093151 $ 1651831 $ 274, 981 3 $ - $ - $ - 4 $ - $ - $ - 5 $ - $ - $ - 7 $. - $ - $ - 8 $ - $ - $ - 9 $ - $ _ $ - 10 $ - $ - $ - [-Total TIG $ 353,72 $ 5377410 $ 891,136 September 23, 2008 Letter of Intent Terry Boutilier, Sr. Business Development Officer & Brownfield Coordinator Business Development Division, Economic Development Department, City of Kitchener 200 King Street Vilest, 1 st Floor, PO Box 1118 Kitchener, ON N2G 4G7 Tel: (519) 741 -2303 Fax: (519)741 -2722 Email: terry. bo uti I ier@ kitchen er. ca Re: TAX INCREMENT GRANT PROGRAM FOR BROWNFIELD REMEDIATION & REDEVELOPMENT Terry: We have acquired the property known as 36 -50 Francis - Street, bounded by Charles, Victoria, Josepha and Francis Street now known as The Tannery District (formerly the Lang Tanning Building). It's our intent to remediate the site and convert the buildings into a mixed use development potentially consisting of recreation, retail, restaurant, office, artisan /studio, manufacturing, furniture /appliance retail, warehouse, storage, & wholesale uses. Please find enclosed our completed application and ancillary documentation for the joint city /region Tax Increment Grant Program For Brownfield Remediation & Redevelopment. If you have any questions, please don't hesitate to contact me at the contact information listed within the application. Regards L'­ 21, Daniel Berholz Francis Street Inc. 1 Region of Waterloo A To qualify for a TIG from the City of Kitchener and the Region of Waterloo, brownfield sites must meet the eligibility criteria laid out in Section A — Guidelines for Applicants. Applications should be submitted to: Terry Boutilier, Sr. Business Development Officer & Brownfield Coordinator Business Development Division, Economic Development Department, City of Kitchener 200 King Street West, 1 St Floor, PO Box 1118 Kitchener, ON N-2G 4G7 Tel: (519) 741-2303 Fax: (519)741-2722 Email. terry. boutilier@kitchener.ca The following application must be filled out in. its entirety. Referencing applicable sections in supporting documents is not acceptable and may result in the application being deemed incomplete. Date Application Received rp� n (Office Use Only) Date Stamp R E u L Ell ED) Here B1. APPLICANT INFORMATION Registered Site Owner(s): Francis Street Inc. Company .(if applicable): c/o Cadan Inc. Contact: Daniel Berholz Mailing Address: 156 Duncan Mill Road, Unit 12 Toronto, Ontario, M313 3N2 Phone: (416) 456-0110 Fax: (905) 248-3061 Email: dan@cadan.ca Date of Site(s) Acquisition: January 3, 2008 B2. AGENT INFORMATION (if any) Contact: NA 8 Region of Waterloo B3. FINANCIAL PARTNER (if any) Contact: Matthew Fishman Company (if applicable): Rose Lang Limited Partnership Mailing Address: c/o The Rose Corporation 156 Duncan Mill Road, Unit 12 Toronto, Ontario, M313 3N2 Phone: (416) 849-4496 Fax: (416)449-9887 Email: mafthew@rosecorp.com B4. SITE INFORMA TION Municipal Address of Site(s) *Include OLS if available Lot No(s): Plan No(s): Roll No(s): PIN No (s): Description of Site(s): i Size (hectares): .Past Know Use(s): 36-50 Francis Street, Kitchener, Ontario Lots 110-116- 131-137, Part Lot 138, PT Charles Street, Registered Plan 58 R6449 Part 1 Plan 375 050 003 158 00 0000 22 426 - 0067 {LT} The Lang Tannery is an industrial complex that occupies a full block bounded by Victoria, Francis, Joseph and Charles Streets in the Warehouse District of downtown Kitchener. The complex contains approximately fifteen interconnected industrial buildings from 'one to five storeys built between c. 1896 and 1956. 1.61 hectares 13.971 acres After his original tannery was destroyed by fire in 1853, Reinhold Lang purchased the land and built a new tannery on the corner of Francis and Charles Streets. The Lang Tannery complex housed a multitude of different activities within the industrial tanning process. These activities included Animal hide and bark storage; Scrubbing (cleaning, rinsing); Beaming (flesh and hair removal); Leaching (preparation of tanning solution); Tanning (dying); Drying; and Currying (stretching and finishing leather). , 0 Region of Waterloo Current Use (s): Starting as a single frame building, built at the corner of Francis and Charles Streets after 1853, the second Lang Tannery developed into an industrial complex occupying nearly three city blocks. By 1904, the original buildings on the site started to be replaced, expanded or converted from frame to more permanent brick or iron constructions. Some of these changes appear to coincide with the reorganization of the buildings' uses just after 1917, -likely the . result of the company's involvement in the production of wartime supplies. The post war period saw more modest changes to the site. Most were in the form of connections between existing buildings to accommodate the site's later uses by a local construction company and various light industrial renters. In 1954 the company discontinued operations as a tannery due to competition from , synthetic materials, but kept the site and complex (including the parcel across the road) of 35 buildings until 1974, when the property was sold to Ball Brothers Limited, a Kitchener contracting firm. From this time portions of the property were rented out and adapted for various light industrial uses including, warehousing, self storage, carpentry, contracting, machinery repair, studios (boxing, yoga, art) and industrial office space. Since acquisition by Cadan Inc./Fra'ncis Street Inc. in January 2008, portions of the property previously rented out to light industrial users, warehousing, self storage, carpentry, contracting, machinery repair, studios and industrial office space have vacated. The new tenants and tenants that remain fall within the same use categories. Is the property designated under Part IV of the Ontario Heritage Act? ❑ Yes 0 No Is the property designated under Part V of the Ontario Heritage Act? ❑ Yes 121 No Are there any outstanding Municipal or Regional work orders on this property? ❑ Yes 121 No If yes to any of these, please attach separate page with an explanation. B& PROPERTY .TAX INFORIMA TION Most recent property tax assessment (attach documentation): Value (Classification): $ 2,127,440 (CT) Value (Classification): $ 1891560 (LT) Value Total: $273177000 Year: 2008 10 Region of Waterloo Current Taxes Paid: City: $20,777.85 Region: $31,567.40 Education: $48,165.64 Year: 2008 Is the property in Tax Arrears? ❑ Yes 0 No Have Tax Arrears been cancelled (in whole or in part) on the property under any other City of Kitchener program? ❑ Yes R1 No Projected post-remediation and redevelopment assessment (attach documentation): Value: $30 million (10 million purchase price + 20 million of cost) Classification: CT B6. ENVIRONMENTAL SITE ASSESSMENT INFORMATION Please provide a description of the nature of the potential/actual'environ mental contamination on the site(s). Please attach existing ESAs on the site(s) or other relevant reports /documentation as evidence of potential/actual environmental contamination: The following is a summary of the Phase 11 results — refer to the original for further detail: The general soil profile at the site is comprised of variable fill materials, and native soil deposits of sand/silt overlying clay. Fill materials were contacted at all borehole/monitor well locations. The variable fill. generally comprises a soil matrix with silt, sand, and gravel; which also contains deleterious substances (coal, leather, wood, slag, cinders, brick, and concrete) at many locations. Native soil deposits, which underlie the fill, comprise upper deposits of silt and sand over clay/clay till. Based on groundwater measurements and observations, groundwater at the subject site is between approximately 1.0 and 5.4 m below existing grade (Elevations 321.6 and 326.8 m). Based on this data the horizontal gradient of the shallow groundwater is from east to west. The City of Kitchener and the Regional Municipality of Waterloo rely on groundwater as a potable water source. The subject site currently consists of a commercialllight industrial /office /warehouse building development, which is proposed for future commercial and/or light -industrial and/or residential redevelopment. Therefore, Standards from Table 2 for residential/parkland/institutionaI land use for sites with coarse textured soil in a potable water situation of the MOE's Soil. Ground Water and Sediment Standards for Use Under Part XV.1 of the Environmental Protection Act. March 9. 2004. O. Reg. 153/04 has been selected as the appropriate reference levels to evaluate the environmental "acceptability" of site conditions. Standards from the MOE's Table 2 for commercial/industrial/comm unity use (the current site use) have also been included and reviewed for reference purposes. Region of Waterloo Soil chemistry Analytical testing of selected soil samples identified the following list of impacted areas (above the MOE Table 2 Residential Standards): Area # General Location Sample Depth Generalized Drawing Parameter Exceeded (m) Parameter Area Below Elevated Oil Tanks in PAH 2 Exceeded I Grassed area along north .3 PAH 1 side of Joseph Street - south- central portion of site 2 Area Below Elevated Oil .4 PHC 2 Tanks in Courtyard .2 PAH .7 Metals 3 Below Boiler Room Floor .8 Metals 2 and Into Adjacent Room 1.1 Metals 1.1 Metals The above noted exceedences are graphically illustrated on "2007-11 - Lang Environmental Remediation Drawings" 1 & 2 enclosed. Groundwater chemistry Analytical testing of groundwater samples collected from two monitoring wells installed at the site identified in the following list of impacted areas (above the MOE Table 2 Residential Standards): Area General Location Generalized Drawin'g Parameter Exceeded 2 Area Below Elevated Oil Tanks in PAH 2 Courtyard 4 Loading area north of Building 8 on east Sodium 1 side of Victoria Street South * When a sodium exceedance occurs due to the application of road salt or de-icing process, as indicated in Section 48, Subsection 3 of Ontario Regulation 153/04, the applicable site condition standard is deemed to not be exceeded. Summary/Plan of Action Below Grade Impacts from former on-site activities are present in the upper soil horizon and shallow groundwater at the site. Area #11: The impacted soil at this location was confined between 0.1 and 0.5 rn and appears to be contained within the upper fill horizon, potentially extending to a depth of 2.0 m. Although present, impacted soil can be remediated using various techniques. However, due to the nature of the impacted soil at this location, excavation and subsequent off -site disposal will be completed. Subsequent findings indicated additional impacted soil require removal to the south east of the impacted area. This work will also be completed. In 12 1,1A ..A. Nor Region of ftterloo order to facilitate the removal of this impacted soil, an overhang will be demolished to facilitate the soil remediation. Area #2: The soil samples from the area below the existing boiler room yielded concentrations-above the applicable MOE Table 2 Residential Standards for heavy metals (Antimony, Barium and Chromium). The impacted soils at these locations were confined between 0.2 and 1.4 m in the under slab fill, within the confines of the existing boiler room and area immediately to the east. Off -site disposal will be completed. In order to facilitate the removal of the impacted soil under the boiler, the boiler needs to be completely disconnected . and removed from the boiler room. Once this work is completed, the boiler will need to be reinstalled and put back into service. Area #3: The soil and groundwater samples representing the area beneath the elevated Bunker Oil,AST's yielded concentrations above the applicable MOE Table 2 Residential for PHC Fraction F3 and PAH parameters. The impacted soils appear to be confined to the upper 0.6m. Off -site disposal will, be completed. In order to facilitate the remediation of the areas of impacted soil and groundwater, the ASTs need to be drained, removed and disposed of. The support structure also needs to be removed and disposed of. Asbestos The DSS identified that Asbestos-Containing Materials are present at the Site based on a sampling and analysis program. ACMs identified include pipe insulation observed around the pipes, elbows, and concrete block walls. Environmental Site Assessments (ESA) should meet all regulatory and professional standards including conformity with Ontario Regulation 153/04 of the Environmental Protection Act, the most recent version of the Ministry of the Environment's Guideline f ©r Phase // Environmental Site Assessments, and the requirements of the Canadian Standards Association. An ESA must be prepared by the Ontario Ministry of the Environment. This consultant is commonly referred to as the 'Qualified Person. Phase I Environmental Site Assessment $0 Phase 11 Environmental Site Assessment $29,679 Projected. Additional Remediation Costs* $1 million {approx) Total Estimated Eligible Remediation Costs" $1 million {approx) Attach Phase I and IIESAs and copies of invoices documenting associated costs. Attach Phase III ESA/Site Reme-diation Plans and any other consultant reports, work plans and budgets, completed by Qualified Persons, that estimate remediation costs. Applicants may be required to submit additional information, including remediation details and remediation duration. *Eligible Remediation Work Costs are those identified in a Phase III remediation work plan, excluding work completed more than 12 months prior to the filing of a Record of Site Condition. Remediation work would include, but is not limited to: 13 Region of Waterloo • Remedial work plans; • Risk assessments; • Environmental rehabilitation; • Disposal of contaminated soil; • Placing of clean fill and grading; and • Building demolition related to remediation. **Final Eligible Remediation Costs will be adjusted depending on actual costs remediation. The applicant will be required to submit all invoices related to direct and indirect remediation costs. The Area Municipality and the Region of Waterloo reserve the right to verify all eligible remediation costs. B7. PROJECT DESCRIPTION On a separate page, provide a detailed description of the proposed development to take place on the site once it has been remediated. Include building sizes and -uses, timing/staging, financing and any other pertinent information. Development Description Attached is the Design Development Vision document issued to the City of Kitchener in May 2008 Building Size Post Demolitions will be approximately 330,000 square feet Uses Anticipated to include Recreation, Retail, Restaurant, Office, Artisan/Studio, Manufacture, Furniture/Appliance Retail, Warehouse, Storage, & Wholesale Timing/Phasing See below Financing 13.5 Million Acquisition and Construction Loan — HSBC Canada 8.5 Million JV1 Partner with Equity Secured by Second Mortgage - Rose Finance 11 Corp Attach any relevant documents such as planning applications or concept drawings of the site redevelopment. List and briefly describe and planning applications that have been or will be submitted: Site Plan Approval - SP 08/22/F/KA (City of Kitchener) — Approval Date - Wednesday, May 14, 2008 Minor Variance —Off Site Parking — Committee of Adjustment - Submission No: A 2008-027 Density (expected jobs and people per hectare): Undetermined at this point (to be provided at later date as plans for tenancy firm up) 14 Region of Waterloo Expected Development Stages: Phase One (Current) - Demolish single storey structure along Charles and Victoria Streets to accommodate new surface parking lot. - Demolish miscellaneous built form at alley facing Joseph Street to provide better internal light conditions to existing buildings and create private outdoor courtyard. Provide new entry lobby and address from Charles Street. Phase Two (Summer 2 - Reinforce and renovate existing central atrium reusing truss and roof elements as necessary to create forecourt to main entrance. Provide raised pedestrian walk to access retail storefronts. Renovate north and west buildings adding a link to the existing structures on site with a new core and services. Phase Three (To be determined Investigate development options for Joseph and Victoria Street portion of site. Current Development Stage and Future Requirements {OPA, Zoning, Site Plans, etc.): In the midst of Phase One Site Plan Approval granted in May 2008 Site Plan conditions are currently being addressed No further requirements are forseen at this time in terms of OPA, Zoning, Site Plans Projected value of the proposed development: Estimated Construction commencement date: Estimated Construction completion date: $30 Million Demolition began in August 2008 Construction -April 2009 December 2010 15 o Region of Waterloo B8. OTHER FINANCIAL ASSISTANCE Have you previously received a grant or other financial assistance for the subject site from the City of Kitchener, the Region of Waterloo or any other level of government or public agency? ❑ Yes Q No (though we may apply for the Regional Phase II ESA Grant) If yes, please select the appropriate program and provide details below (e.g. file number(s), reference number(s), value of assistance, and any other relevant information): Regional Phase II Environmental Site Assessment Grant Regional Brownfield Development, Charge Exemption Other (please specify) TOTAL: Do you expect to apply for any other financial assistance for the subject site from the City of Kitchener, the Region of Waterloo and any other level of government or public agency? E1 Yes ❑ No If Yes, please provide details below (e.g. program name, government source, application timing, value of assistance, etc.): Regional of Waterloo - Phase II Environmental Site Assessment Grant — Full_ 2008 2008 or 2009 Fagade Improvement Program — City of Kitchener — Fall 2008 or Winter 2009 B9. AUTHORIZATION OF AGENT (NOT applicable) m Region of Waterloo DECLARATIONS INVe hereby apply for a grant under this program. I/We hereby agree to abide by the terms and conditions of the Tax Increment Grant Program for Brownfield Remediation INVe hereby agree to enter into a Tax Increment Grant Program for Brownfield Remediation Agreement with the City of Kitchener in which the site for which this application is being made is located, and the Region of Waterloo, that specifies the terms of the grant. INVe hereby certify that the information contained in this application is true, correct and complete in every respect and consent to any -verification of this information by the City of Kitchener and/or the Region of Waterloo by such inquiry as is deemed appropriate, including inspection of the site. INVe hereby grant permission to the City of Kitchener and/or the Region of Waterloo, or their agents, to inspect my/our property prior to, during and after environmental remediation, site rehabilitation and project consultation. INVe hereby acknowledge that the City of Kitchener and/or the Region of Waterloo may request an independent review of any or all submitted project costs or actual costs for improvements under the Tax Increment Grant Program for Brownfield Remediation. I/We hereby acknowledge that the granting of funds through the Tax Increment Grant Program for Brownfield Remediation is a public process and that the City of Kitchener and the Region of Waterloo may be required to provide information contained in this application to members of the public and Council, that this application may be circulated to internal municipal departments, and that the information in this application may be used for internal reporting purposes. INVe hereby agree that the program for which the application has been made herein is subject to cancellation and/or change at any time by the City of Kitchener and the Region of Waterloo in their sole discretion, subject to the terms and conditions specified in the Program. The City of Kitchener and the Region of Waterloo will, in however, honour all Interim and Final Remediation and Redevelopment Agreements existing, at the time such cancellation or change is made, subject to the terms and conditions contained therin. INVe hereby agree that the City of Kitchener and the Region of Waterloo will determine at their discretion the adequacy of this application and any other documents submitted by the applicant, including proofs of expenditures, and of the project for which this application is submitted. City of Kitchener and the Region of Waterloo reserve the right to refuse any application and to limit the amount of assistance they will provide to any particular project. Notwithstanding any representation by or on behalf of the City of Kitchener and - egio Waterloo, or any statement contained in the' program, no right to any grant arises until and 0 it has been duly auth zed and approv d by each respective Council. The City of Kitchener and the Region of Waterloo are e 1eg 'o V _r d and approv not responsible for a costs incurred b the Owner/Applicant in any way relating to the program, including, without limitation, costs incurred in anti 'pation of the gr 'nit or costs incurred in the event that this application is denied by the City of Kitchener 0 or the Region of Watteo. Company: IRAN STREET INC. Name: Lana Sherman Title: Authorized Signing Officer 17 4? NJ i A Region of Waterloo C1. DOES THE SITE MEET THE ELIGIBILITY CRITERIA? Applications for the Tax Increment Grant (TIG) will be received and screened based on the following requirements. Please complete this form and submit with the application. 1. Is the site located within the City of Kitchener -designated Community X Improvement Project Area? 2. Is the applicant the registered owner of the site, able to demonstrate clear title and responsibility for the land? X 3. Was the applicant responsible for causing the on-site contamination that X requires remediation? 4. Will the remediation and redevelopment undertaken result in a minimum X increased property reassessment value of $100,000? 5. Were the Phase I and Phase 11 Environmental Site Assessments (ESAs) completed by a "Qualifie*d Person )3 as defined Ontario Regulations 153/04 prior X to the submission of this application? 6. Do redevelopment plans meet all approved policy and comply, where feasible ro riate and with applicable design guidelines? p p , X 7. Is the site in a position of tax arrears or does it have any other outstanding municipal financial obligations? X 8. Has this application been submitted prior to the issuance of building permit(s) for the redevelopment (unless the building permit was issued after March 1, 2008 but before the corresponding Area Municipal CI was established or X amended? K I I " J., - 1, 1 1" N111''A W All assessed property taxes and levies with respect to the property to which this application applies have been paid in full. Declared before me at 156 Duncan Mill Road City/Township of Toronto in the Regional Municipality of Toronto, this 23rd day of September, 2008 Signature of Registered OwnerolranTs that are subject of the application or Authorized Officer or Director if Corporate Registered Owner -t: 13 K, WID ion o1 Waterbo immumob WMI= per Towwwwo mi coo 6w - = Cl ,r Q , -All 4 6Q lit a7J Af IV I L-3 P L aid --3r m phi; CM r-I db sm LY I _R16 Ju MaL re of IT wr qrw4 aE P 0000 r -- C�, -POW I 4==J u 4==J cn 4.1 cn 0 ca 9w D iu %sle Hill aia IL m AM Ire I --m - im b. %-fj ®a yl il sMMk lk �I Ah 4, fr °, w, - WWDz v irw EM IS TAW Ails% aw - P y� Jow- _ I ° P ,6ww m jr Miro ,M J JOIN" v it ot pam;—rw, 41 I= VAI mm� ON, ilk )Iff� NL 6, 16 N pi r Ila 2 -A I F I 1 7 Zan 11110A nit Ale VM L O .N Q) 4�J W C--) rc Ott W v Q) c) 0 L4r) > Q) 0- Q) �o Q) E cB v Q) � aJ � � 0 �a It. 0 0 U U u L X r6 v W W 91 � - - N N O U U � Q) Q) � V Q) Q � 0 -Q) O v V I U � � v 91 � - - N N O U U � � Q) � Q) Q � 0 U � I U � � L v v N i 0 V W C--) rc Ott W r Q) Ln Q) o � � V � V 0 Q) � N � > Q) Q) 0 0 0 Q) Q) Ln >N V � O Q) QJ N Q) � Q N 4 J Q) QUJ • N QVJ t�ii QVJ o C S.. =3 � f6 f6 U r6 Q 0 Ln un L c6 Q w � O 1 O 4�J Q) V c6 Q W C--) rc W ;m ° II ! r. ■ we Mir mum- ""=soft 3 k ti k� ^ I ^I i 0 P, ip SRI! 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