Evaluation of Community Improvement Plan Incentives · PDF file ·...

Evaluation of Community

Improvement Plan Incentives

Public Engagement Open House

Tuesday, June 7, 2016

Wednesday, June 8, 2016

Meeting Agenda (June 7-8 Meetings)

Didn’t We Do this in 2014? (Recap)

Why We Are Here: Council Resolution of February 16, 2016

Types of Financial Incentives (Where’s the money?)

What We Are Actually Talking About Existing Community Improvement Plans (related Financial Incentives)

DC Program vs. Others

Evaluation New and Existing CIPs and Financial Incentives

Review criteria Indicators of Success Caps Potential Savings

Next Steps Report to Planning and Environment Committee (August/November 2016) Council Decision by 2017

Didn’t We Do This in 2014?

Council Resolution - June 10, 2014

Due to changes in provincial legislation the City was required to review and make modifications to Development Charge Grant Programs.

That City was able to adjust the DC programs and bring forward the DC Bylaw without causing any interruptions to services.

Changes Made in 2014

Amend EXISTING Development Charge Grant Programs within:- Downtown Community Improvement Plan Area,- Old East Village Community Improvement Plan Area, and- SoHo Community Improvement Plan Area

and also

Introduced a NEW Community Improvement Plan for Industrial land uses, that included:- Development Charge Grant, and - Industrial Corridor Enhancement Grant

What Are We Here to Talk About?

Clauses A – D: Review Existing and Proposed New CIPs (and related financial programs) as well as any money savings changes that could be made

Clauses E: Completed in 2015 as part of Multi-Year Budget Process

Clauses F: Being undertaken as a separate policy review process by Finance and Corporate Services

By End of 2016

By End of 2016

By End of 2016

By End of 2016

End of 2016

*

Types of Financial Incentives through CIPs

Programs Examples Description

Loans- Upgrade to Building Code- Facade Improvement- Non-street Façade Improvement Loan

No interest, 10 year pay back to the City, Capped (percentage of cost of improvements set to a max.), Low cost

Tax Grant

- Brownfield Tax Increment Equivalent Grant- Rehabilitation & Redevelopment Grant- Heritage Tax Increment Grant - Airport Tax Increment Grant

Tied to increase Tax (related to improvement), New taxes paid, grant provided for a set proportion of the tax increase, city received no less than prior to improvement, Low cost

Other Grants

- Forgivable Upgrade to Building Code - Forgivable Facade Improvement - Awning, Signage & Decorative Lighting Grant - Tax Holiday Grant- Industrial Corridor Enhancement Grant

Typically tied to Small Scale propertyimprovement Projects or studies, Capped, Moderate cost

DC Grants

- Industrial - Residential- Brownfield- Heritage Development Charge Equivalent Grant

Widely used for a variety Projects,Not capped for IND/RES/AIR, Capped for HER/BRO based on costs of site improvement/remediation – value of grants determined at Building Permit Stage, High cost

DC ProgramsCost

(2006 to 2015)

# of Approved

Applications

Downtown $5.7 million 3

Old East Village $6.3 million 2

Industrial$813,000

(only 2015)

4

Total $12.81 million 9

DC Programs vs. Other Programs

Other ProgramsCost

(2006 to 2015)

# of Approved

Applications

Façade Improvement

Loans (DT, OEV, SoHo)$1 million 51

Upgrade to B.C. Loans (DT,

OEV, SoHo)$3.2 million 92

Non-Street FI Loans (DT, OEV) $220,000 12

Rehab and Redevelop Tax

Grant (DT, OEV)$6 million 19

Other DT, OEV GrantsApprox.

$200,000

Approx.

40

Brownfield CIP Grants $618,000 15

Airport CIP Grants $330,000 2

Heritage CIP Grants $0 0

Industrial Lands CIP Grants

(non DC)$0 0


CIPs Financial Incentive Programs Offered Discontinued CIP ProgramsApproved but not funded

CIP Programs

Downtown

Last

Mile

Grant

Façade

Improvement

Loan

Upgrade

to Building

Code Loan

Tax Grant

ProgramDC Grant

Forgivable

Façade

Improvement

Loan

Forgivable

Upgrade to

Building Code

Loan

Non-street

Façade

Improvement

Loan

Awning, Signage

& Decorative

Lighting Grant

Tax Holiday

Grant

Heritage

Assessment

Grant

Heritage

Improvement

Grant - -

Old East

VillageFaçade Improvement

Upgrade

to Building

Code

Tax Grant

ProgramDC Grant

Forgivable

Façade

Improvement

Forgivable

Upgrade to

Building Code

Non-street

Façade

Improvement

Loan

Awning, Signage

& Decorative

Lighting Grant

Tax Holiday

Grant

Heritage

Assessment

Grant

Heritage

Improvement

Grant

- -

SoHo Façade ImprovementUpgrade to Building

Code - - - - - - - Tax Grant

ProgramDC Grant

Heritage Tax Increment GrantDevelopment Charge

Equivalent Grant - - - - - - - - -

Airport

AreaTax Increment Grant - - - - - - - - -

BrownfieldTax Increment

Equivalent Grant

Contamination

Assessment

Study Grant

DEV

Charge

Rebate

Property

Tax

Assistance

Program

- - - - - - - - -

Industrial

LandsDevelopment Charge Grant - - - - - - - -

Industrial

Corridor

Enhancement

Grant

-

Presently the City of London has 7 Community Improvement Programs through which a variety of Financial Incentives have been funded:

Existing CIPs & Financial Incentives

Existing Incentives – FAÇADE IMPROVEMENT LOAN

2006 to 2015 Total Downtown Old East Village SoHo

Façade Loans Issued 51 35 16 0

Value of Loans Issued $983,631 $692,900 $290,731 $0

Construction Value $3,033,221 $2,282,188 $751,034 $0

Construction/Loan Value 3.08 3.29 2.58 -

664 Dundas Street

Existing Incentives – UPGRADE TO CODE LOAN

2006 to 2015 Total Downtown Old East Village SoHo

Upgrade Loans Issued 92 61 31 0

Value of Loans Issued $3,236,695 $2,161,204 $1,075,491 $0

Construction Value $8,876,405 $6,233,667 $2,642,738 $0

Construction/Loan Value 2.74 2.88 2.46 -

192 &194Dundas Street

2006 to 2015 Total Downtown Old East Village

Grant Applications Approved 19 14 5

Value of Grants Issued To Date $6,094,613 $5,962,527 $132,086

Residential Units Created 1,453 1,381 72

Remaining Value of the 19 Grants To Be Paid

$1,545,699 $1,361,192 $184,507

Existing – REHAB & REDEVELOPMENT (TAX) GRANT

637 Dundas Street 423 Richmond Street

Residential Development Charges Grant

2006 to 2015 Total Downtown Old East Village

Number of Grants 5 3 2

Value of Grants $11,975,980 $5,674,099 $6,301,881

Residential Units Created 1,305 693 612

700 King Street 71 King Street

Existing– BROWNFIELD DEVELOPMENT CHARGE REBATE

2006 to 2015 Total

Grant Applications Approved 2

Value of Grants Issued To Date $162,000

Residential Units Created 52

Remaining Value of the Grants To Be Paid $275,000

570 Nelson Street

2006 to 2015 Total




Remaining Value of the Grants To Be Paid $0

Existing – BROWNFIELD TAX INCREMENT EQUI. GRANT

700 King Street, OEV CIP

2006 to 2015 Total



Residential Units Created N/A

Remaining Value of the Grants To Be Paid $0

Existing – BROWNFIELD CONTAMINATION STUDY GRANT

1156 Dundas Street –Former McCormick’s Factory

Existing Incentives – BROWNFIELD TAX ASSISTANCE

2006 to 2015 Total

City has not processed an application to date 0

2006 to 2015 Total



Residential Units Created N/A

Remaining Value of the Grants To Be Paid approx. $870,189

Existing Incentives – AIRPORT TAX INCREMENT GRANT

2006 to 2015 Total


Value of Grants Issued To Date $0


Remaining Value of the Grants To Be Paid $112,100 (estimated)

Existing Incentives – HERITAGE TAX INCREMENT GRANT

1576 Richmond Street Conceptual Rendering

2006 to 2015 Total




Remaining Value of the Grants To Be Paid $27,722

Existing – HERITAGE DEVELOPMENT CHARGE GRANT

1576 Richmond Street– Heritage CIP application

2014 to 2015 Total



Potential – SOHO GRANTS

Colborne Building– Part of OVH Lands –

Potential New Applications:- Heritage DC- SOHO Residential DC (unfunded)- SOHO DC (unfunded)

*2006 to 2015 Total

City has not processed an application to date 0

Existing – INDUSTRIAL CORR. ENHANCEMENT GRANT

This program has been in effect since January 1, 2016 but has not been funded

View from 401 near Highbury Ave

2015

Value of Grants Issued $0.81 million

Existing – INDUSTRIAL DEVELOPMENT CHARGE GRANT

Dr. Oetker (pre-2015)

Columbia Sportswear(pre-2015)

DC ProgramsCost

(2006 to 2015)

# of Approved

Applications

Downtown $5.7 million 3

Old East Village $6.3 million 2

Industrial$813,000

(only 2015)

4


DC Programs vs. Other Programs

Other ProgramsCost

(2006 to 2015)

# of Approved

Applications

Façade Improvement

Loans (DT, OEV, SoHo)$1 million 51

Upgrade to B.C. Loans (DT,

OEV, SoHo)$3.2 million 92

Non-Street FI Loans (DT, OEV) $220,000 12

Rehab and Redevelop Tax

Grant (DT, OEV)$6 million 19

Other DT, OEV GrantsApprox.

$200,000

Approx.

40

Brownfield CIP Grants $618,000 15

Airport CIP Grants $330,000 2

Heritage CIP Grants $0 0

Industrial Lands CIP Grants

(non DC)$0 0


Evaluation of CIPs & Financial Incentives

Review Criteria (staff have undertaken this exercise internally & seeking comments) • Proportion of CIP Funding?• Application Volume? • Sustainability based on funding source?• Link to Strategic Plans (Strategic Alignment)? • Are the CIP objectives being achieved?• Impact of reduced CIP funding?

Indicators of Success (Comments on Indicators are being sought)• Will reflect the specific Community Improvement Plan

• Heritage• Airport• Brownfield• Downtown/SoHo/Old East Village CIPs are similar

Potential Indicators of SuccessDowntown, Old East Village, SoHo and Proposed Community Improvement Plans

Potential Indicator of Success Potential Measure Area to Use Indicator Applicable Incentive

The residential neighbourhood plays an important within the context of the entire City

Minimum of 5% of London’s population resides within the Downtown’s boundaries.

Downtown Bldg Code Loans Tax Increment Grant DC Grants

The neighbourhood can support a supermarket

Minimum population sufficient to support a community scale supermarket

Downtown Old East Village

Bldg Code Loans Tax Increment Grant DC Grants

Residential growth is strong for a protracted period

Minimum of 750 residential units are constructed within a consecutive 5-year period

Downtown Bldg Code Loans Tax Increment Grant DC Grants

The neighbourhood caters to a wide array of socio-economic groups

Minimum of 15% of the area’s population fits within each of the City’s four household income quartiles

Downtown Old East Village SoHo


The neighbourhood provides a significant stock of affordable housing

Minimum 25% of all rental housing is affordable to the 40th percentile of city-wide incomes



Vacancies are low and storefronts are well occupied

Maximum 5% vacancy rate on ground level commercial spaces


Façade Loans Bldg Code Loans Tax Increment Grant DC Grants

Quality uses on key storefronts Minimum 75% of ground floor uses on key commercial streets are targeted uses


Façade Loans Bldg Code Loans

Active streets Minimum hourly pedestrian counts on key commercial streets on a selected Friday during the month of September for the following periods (1) 8-9AM; (2) Noon-1PM; (3) 5-6PM and (4) 8-9PM.


Façade Loans Bldg Code Loans Tax Increment Grant DC Grants

Quality facades and storefronts Minimum 80% façade and storefront graded A or B Condition (City rating)


Façade Loans

Potential Indicators of SuccessAirport Area and Proposed Community Improvement Plans


The aerospace industry plays an important within the context of employment for the entire City

Minimum of 5% of London’s population employed within the Airport Area’s boundaries

Long term stability and vitality of area

Aerospace industry growth is strong for a protracted period

Airport Area experiences high levels of Redevelopment, Rehabilitation and/or Renovation

Encourages the coordination of municipal expenditure and planning and development activity

Vacancies are low and lands within the Airport Area are well occupied

Targeted uses in occupyingindustrial/commercial lands

Active streets (min. land use problems associated with under-utilization of land that detracts from viability)??

Other???

Potential Indicators of SuccessBrownfield and Proposed Community Improvement Plans


Brownfields plays an important within the context of development for the entire City

Minimum of 5% of London’s development occurs within the a Brownfield Site.

Long term stability and vitality of area surround Brownfield Site

Stimulating private reinvestment activity in Brownfields is strong for a protracted period

Brownfields experiences high levels of Redevelopment, Rehabilitation and/or Renovation

Encourages the coordination of municipal expenditure and planning and development activityLow rate of Brownfield Sites with the entire City


Reduced detrimental effects associated with contaminated lands

Other???

Potential Indicators of SuccessHeritage and Proposed Community Improvement Plans


Retention of heritage structures plays an important within the context of employment for the entire CityLong term stability and identity of our City

City wide heritage retention is strong for a protracted period

High levels of retention and rehabilitation of heritage resources

Encourages the coordination of municipal expenditure and planning and development activityVacancies are low and lands within the Heritage Conservation Districts and properties are well occupied

Encourage the designation of significant heritage resources

Create a sense of place and ensure that our history is retained

Quality structures and facades

Potential Indicators of SuccessIndustrial Lands and Proposed Community Improvement Plans


Industrial Uses play an important within the context of employmentfor the entire CityEconomic development and prosperity in London (Increase the long-term industrial assessment base and industrial land property tax revenues)Industrial growth is strong for a protracted period

Industrial land uses experience high levels of Redevelopment, Rehabilitation and/or Renovation

Encourages the coordination of municipal expenditure and planning and development activity(adequate supply of serviced and appropriately sized and located industrial lands)

Vacancies are low and lands within the Industrial Land Use (Designations) are well occupied


Ensure that growth related capital costs are recovered from revenues generated by new development

Increase and retaining existing employment on industrial lands

Potential for Savings

Are incentives aligning well with strategic goals?

Are all existing incentives required?

How do existing incentives compare to other incentives that have been proposed from a strategic perspective?

Can existing incentives be tweaked and still achieve strategic goals?

Is there an opportunity for cost savings?

Can cost savings be used, in whole or in part, to fund any additional incentives?

Other?

Potential Program Changes

Council Resolution – Potential considerations for staff to evaluate (February 16, 2016)

i. instituting a $10 million cap on the funding assigned to the Residential Development Charges Rebate Grant Program, between the years 2017 to 2019; it being noted that if the $10 million cap is reached (ie. grants have been issued at any time between 2017 and 2019 totalling $10 million), additional projects, or portions of projects, constructed in that period would be required to pay development charges and no grant would be offered; it being further noted that for the year 2020 and beyond, a similar cap or a program of stepping down the amount of the development charge rebate grant should be considered; and,

ii. taking a more targeted approach to the development charges grant for industrial uses, such that the program aligns with the attraction of key industrial sectors and those types of industrial uses that generate the highest levels of employment; it being noted that a stepping down of the development charge grant should also be considered;

Forecasted Draw Downs – Core Area Programs

Potential NEW CIPs & Financial Incentive ProgramsIndicator of Success Measure Area to Use Indicator Applicable Incentive

a new incentive program stemming from the Hamilton Road Community Improvement Plan process;

a new incentive program stemming from the Lambeth Community Improvement Plan process;

the expansion of the Downtown Community Improvement Area to align with the new boundaries of the Downtown London Business Improvement Area; a new incentive program granting a development charge rebate for new buildings, or additions, to accommodate publicly accessible sports and recreation services;

a new incentive program granting a development charge rebate for new buildings, or additions, to accommodate private, or not-for-profit educational facilities, including music schools;

a new incentive program for environmentally sustainable buildings or communities;

a new incentive program providing development charge rebates for new buildings, or additions, to accommodate small businesses;

funding the existing Brownfield Contamination Assessment Study Grants incentive; and,

fund the existing Industrial Corridor Enhancement Program to help industrial property owners improve their properties where such properties are visible from important corridors such as the Veterans Memorial Parkway or Highway 401;

Evaluation of Community Improvement Plan Incentives · PDF file ·...

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