HomeMy WebLinkAboutFIN-10-021 - Addendum to FIN-10-005 - Federal Community Adjustment Fund
REPORT
REPORT TO:
Mayor Carl Zehr & Members of Council
DATE OF MEETING:
January 18, 2010
SUBMITTED BY:
Dan Chapman, General Manager of Financial Services and
City Treasurer
PREPARED BY:
Jaya Chatterjee, Junior Financial Analyst, Financial Planning
WARD(S) INVOLVED:
ALL
DATE OF REPORT: January 14, 2010
REPORT NO.: FIN-10-021
SUBJECT:
ADDENDUM TO FIN-10-005 (FEDERAL COMMUNITY
ADJUSTMENT FUND )
RECOMMENDATION:
For discussion
BACKGROUND:
On December 15, 2009, as part of the Economic Stimulus plan, the Federal Government
launched CAF Fund (Intake 2) providing $127.8 million in southern Ontario for provincial,
territorial and municipal infrastructure projects. The main purpose of this funding allocation is to
stimulate the economy and at the same time create a more modern and greener infrastructure
that is the foundation of sustainable long-term growth.
Council considered report FIN-10-005 on January 11, 2010 and approved two projects for
submission through the Federal Community Adjustment Fund Intake 2:
1. Redevelopment of Woodside Park ($1.6 million)
2. King Street Master Plan and Civic Square Renovation ($0.75 million)
Council directed staff to reconsider the rationale for submitting an application for the renovation
of 48 Ontario Street and to identify other potential projects that might also be submitted for
consideration.
REPORT:
CAF funding of $127.8 million is available to the municipal sector in following categories:
downtown core, waterfront areas, transportation infrastructure, community-owned tourism
facilities, technology and innovation centres, etc.
The key components for funding projects under the CAF program are as follows:
ability to start quickly and be completed by March 31, 2011;
economic impact of the project;
long-term economic viability of the project;
incremental nature of the assistance;
demonstrated evidence that the project meets a recognized need and significantly
contributes to a region’s economic development;
applicant’s management capacity;
incremental (i.e., investment from CAF will allow the work to start sooner, broaden the
scope of the project, or allow the completion of a project that otherwise would not be
completed);
a business plan must be submitted in support of the application; and
Applications for funding must be submitted to the Province by January 18, 2010.
Projects will be assessed based on the degree to which they contribute to the expected
outcomes of: job creation or preservation; the creation, expansion or strengthening of
businesses; and the enhancement of, competitiveness and sustainability of communities and
businesses. Priority will be given to projects that:
create immediate and sustained employment;
create the most jobs per dollar invested;
build on collaborative agreements already in place (e.g., federal-provincial agreements
and existing programs);
provide a legacy of longer-term ecological and/or economic benefits; and
demonstrate leveraging of other sources of financing.
In addition, the infrastructure funds will be allocated to projects located in a southern Ontario
community that has a population of less than 250,000 and priority will be given to communities
that have a population of 100,000 or less and are supported by a single industry. The funds will
cover up to 90% of the eligible projects costs with the balance to be provided by municipal
governments.
On January 12, 2010, the Corporate Management Team reviewed the capital forecast to identify
other projects which might also be considered for application under CAF. It was determined
that most projects do not meet the program criteria and/or cannot be completed by March 31,
2011. Staff has given additional consideration to the application for the renovation of 48 Ontario
Street and has also identified the potential to apply for funding for design work in 2010 for the
Victoria Park Lake clean up.
48 Ontario Street Renovation
Staff has reconsidered the rationale for submitting an application under CAF for the renovation
of 48 Ontario Street (Legion Building). As expressed by Committee on January 11, 2010, it may
be premature to submit the application at this time for the following reasons:
Insufficient time to permit discussions with stakeholder groups on the future use of the
building (e.g., EDAC, DAC, KBIA, Heritage Kitchener, etc.);
Uncertainty related to the long term highest and best use for the property. The
Downtown Land Strategy is commencing in 2010 and will provide greater clarity with
respect to the long-term vision for this property; and
The investment is not required to maintain the building in a structurally sound condition.
The City has set aside funding for roof work, which is the most urgent requirement in
order to maintain the integrity of the building.
Council direction is sought with respect to whether or not to move forward with the 48
Ontario Street Renovation CAF application in light of these factors.
Victoria Park Lake Design Phase
(Cost estimate: $0.95 million; Jobs created: 10)
The Victoria Park Lake is over 100 years old, located at the downtown core and has become an
important recreational, tourism and ecological resource for the City of Kitchener. The intent of
this project is to develop a detailed engineering design for sediment removal and forebay
construction to mitigate sedimentation problems in the lake. The proposed project would help to
rehabilitate Victoria Lake, the centrepiece waterfront feature of Victoria Park in the downtown
Kitchener area. Currently the lake is experiencing heavy sedimentation build-up, negatively
affecting water quality, temperature, flow characteristics, holding capacity, and aesthetic value.
The Victoria Park Lake design project is related to the completed Victoria Park Lake Class
Environmental Assessment and supports the Victoria Park Master Plan which is a key part of
the current economic regeneration in downtown Kitchener.
With respect to the function of the lake, storm water collected from neighbourhoods upstream is
conveyed through the lake. Sediments conveyed by the Stormwater accumulate in the lake and
have been removed every 12 to 15 years. Water quality in the lake continues to be a concern,
and has restricted the enjoyment of the lake and surrounding park area particularly during the
summer period. The detailed engineering design work for sediment removal and forebay work
for the Victoria Park Lake will target many of the root causes that have prevented improved
water quality in the lake. This will result in environmental improvements for the lake and
surrounding downtown area. Habitat will be improved for the plants and animals that inhabit the
lake and creek, improvements to aesthetic issues such as appearance and odour of the lake to
park users and nearby residents. Aesthetic improvements will directly result in improvements to
the park environment that surrounds the lake, and improve usability for major public events.
The Victoria Park is a centrepiece of downtown Kitchener, and used as the location of many
public functions and festivals, and is a primary visitor’s/tourist attraction in the city. These
enhancements will help to stimulate increased tourism activity. Enhancing downtown Kitchener
will help attract tourists and will directly create immediate and sustained employment along with
ecological and economic benefits. The design phase is the first phase of this project, which will
result in upwards of $16 million of total investment and considerable new employment over the
next several years.
Funding Source Amount
CAF Fund $855,000
City of Kitchener 2010 $95,000
Total $950,000
Council direction is sought with respect to whether or not to submit a CAF application
for the Victoria Park Lake Design Phase. Further, direction is sought with respect to the
priority of this application relative to the other submissions.
FINANCIAL IMPLICATIONS:
The City of Kitchener will be responsible for a 10% share of eligible project costs totalling
$95,000. Upon approval of the CAF application, Engineering staff will report back to Council
with a specific funding recommendation for the City’s 10% share.
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services and City
Treasurer