Public Report

To: Development Services Committee

From: Paul D. Ralph, BES, RPP, MCIP, Commissioner, Development Services

Report Number: DS-15-161

Date of Report: July 22, 2015

Date of Meeting: July 27, 2015

Subject: Application under the Central Business District Renaissance Community Improvement Plan, Bowood Properties (2006) Inc., 68-72 King Street East

File: B-1210-0054

1.0 Purpose

The purpose of this report is to obtain City Council direction on an application submitted by Mr. Richard E. Christie of Bowood Properties (2006) Inc. (Bowood) for financial incentives under the Central Business District Renaissance Community Improvement Plan (C.B.D. C.I.P.) for the proposed restoration and redevelopment of the former Genosha Hotel building at 68-72 King Street East to a mixed use building containing 66 apartment units and ground floor commercial uses.

The subject site is currently owned by 2199957 Ontario Inc. Bowood has entered into an agreement with the owner to purchase the subject site. As part of Bowood’s due diligence, it requires a Council position on the requested financial incentives.

Attachment 1 is map showing the location of the subject site.

Attachment 2 is a letter dated July 19, 2015 from Bowood describing the proposal and the requested financial incentives.

Attachment 3 is the Council resolution approving financial incentives in 2008 for a previous proposal by Summers and Company.

2.0 Recommendation

That the Development Services Committee provide a recommendation to City Council regarding the application submitted by Bowood Properties (2006) Inc. under the Central Business District Renaissance Community lmprovement Plan for the former Genosha Hotel building at 68-72 King Street East.

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3.0 Executive Summary

Not Applicable.

4.0 Input From Other Sources

4.1 Other Departments and Agencies

The following have been consulted in the preparation of this report:

Interim City Manager Finance Services Legal Services Municipal Law Enforcement and Licensing Services

5.0 Analysis

5.1 Background

5.1.1 Previous Financial Incentives Approved for Summers and Company in 2008

In 2008 Summers & Company (then a potential purchaser of the subject site) applied for financial incentives under the C.B.D. C.I.P. to advance the restoration and redevelopment of the former Genosha Hotel into a mixed use building containing 85 bachelor apartment units and ground floor commercial uses.

On November 24, 2008, City Council approved, subject to conditions, an Increased Assessment Grant for 10 years, valued at $322,000 at that time (approximately $360,000 in 2015 dollars), a forgivable Façade Improvement Loan of $350,000 payable over 10 years in annual installments of $35,000 per year and a Building Permit Fee Grant of $5,000. Attachment 3 is a copy of the November 24, 2008 Council resolution regarding this request.

The Region of Durham also approved a financial incentive of $550,000 under the Regional Revitalization Program, to be paid at specific stages of the development process.

Demolition work began on the project, but this redevelopment project was not completed. The City and Regional financial commitments are no longer available since the conditions were not satisfied.

5.1.2 Heritage Property Tax Reduction Program

The subject site is designated under Part IV of the Ontario Heritage Act as a property having significant cultural and heritage value.

On March 21, 2011, Council approved a Heritage Property Tax Reduction Program (H.P.T.R.).

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Report to Development Services Committee Item: DS-15-161 Meeting Date: July 27, 2015 Page 3

The intent of the H.P.T.R. Program is to provide heritage property owners with relief in the form of property tax reduction given that heritage properties typically require more intensive care, custom work and maintenance costs.

The City has set the amount of the annual tax reduction at forty percent (40%) of the City and School Board portions of the property taxes payable on the eligible heritage property subject to conditions.

The maximum combined tax reduction is 40%, inclusive of any other tax reduction programs, (e.g. C.B.D. C.I.P., increased assessment grants). Therefore, in this case the H.P.T.R. Program would not be available to the owner for some time if Council approves the requested C.B.D. C.I.P. incentives.

The costs associated with the H.P.T.R. Program are funded from the Taxes Written Off Program.

5.1.3 Current Condition of the Former Genosha Hotel

The condition of the subject site has deteriorated to an unacceptable level. Since the building was vacated many complaints have been made to Municipal Law Enforcement regarding the building structure, broken windows, graffiti, peeling paint, debris, grass/weeds and people breaking into the building and using it as a shelter or for criminal activity.

Municipal Law Enforcement, Durham Regional Police and Oshawa Fire Services have been involved in various investigations.

The Downtown Oshawa B.I.A. has submitted a letter of concern about the state of the property to Heritage Oshawa.

On March 23, 2015, the Corporate Services Committee referred the following motion from Heritage Oshawa to staff for consultation with Heritage Oshawa and the Downtown Board of Management and report back to the Committee:

“Whereas Heritage Oshawa is concerned with the standard of care and deteriorating conditions of the Genosha Hotel located at 68 King Street East; and,

Whereas the property is designated under the Ontario Heritage Act via City of Oshawa By-law 70-2005; and,

Whereas the current conditions of the building are leading to safety concerns, neglect and disrepair;

Therefore be it resolved that staff investigate the matter pursuant to the City’s Property Standards By-law 1-2002.”

5.1.4 Bowood’s Development Proposal

Bowood has entered into an agreement to purchase the former Genosha Hotel at 68-72 King Street East. Bowood’s proposal includes the restoration and redevelopment of

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the building to 66 apartment units (40 one-bedroom apartments and 26 bachelor apartments) and ground floor commercial uses, such as retail stores and restaurants. The project includes significant restoration and upgrades to the exterior and the interior of the building including new elevators, plumbing, wiring, heating, ventilation and air conditioning systems, windows, parapet and roof.

Bowood intends to start the project by mid-August 2015 and have the project completed and the building ready for occupancy by December 2016.

5.2 Requested Incentives and Staff Comments

5.2.1 Increased Assessment Grant

5.2.1.1 Bowood Request

Bowood has requested that the City provide an Increased Assessment Grant for a 14 year period as follows:

100 % for Year 1 100 % for Year 2 100 % for Year 3 100 % for Year 4 100% for Year 5 100% for Year 6 100% for Year 7 100% for Year 8 100% for Year 9 100% for Year 10 80% for Year 11 60% for Year 12 40% for Year 13 20% for Year 14

Based on staff estimates this request equals approximately $678,500 over a 14 year period.

5.2.1.2 Staff Comments:

The C.B.D. C.I.P. includes an Increased Assessment Grant program which:

Reimburses the property owner a portion of the City taxes attributable to the improvement and/or redevelopment of a property.

Financially assists the property owner and serves to phase-in the impact of tax increases which would be experienced after a project opens.

Is subject to the overall $50,000 maximum for all combined grants and loans under the C.B.D. C.I.P.

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Recognizes that the project might not occur save and except for the Increased Assessment Grant and that the City and community ultimately benefit from the project and its increased assessment/tax base in later years, on-going spin-offs, etc.

Specifies that following completion of the work, a final building inspection and the payment of all property taxes for each year, the Increased Assessment Grant (City portion only) would be provided on a declining basis over a nine year period: 90% in year 1, 80% in year 2, 70% in year 3, etc.

The 2015 assessment of the subject site is $1,690,750, equating to City taxes of approximately $16,800 per year, based on the 2015 tax rates.

It is estimated that the City will realize taxes of ±$73,400 per year upon completion of the subject development based on the 2015 tax rate and the assumption that the residential units will be assigned to the multi-residential tax class by M.P.A.C.

The actual amount of the grant will not be known until a post construction assessment is completed by M.P.A.C. Any grant would typically be based on the actual assessment.

Staff has no objection to the requested Increased Assessment Grant. If Council agrees to an Increased Assessment Grant, it is recommended that the grant be capped at $678,500, that all applicable taxes in any year be fully paid prior to the grant being paid back and that the performance criteria in Section 5.3 be applied.

5.2.2 Forgivable Façade Improvement Loan

5.2.2.1 Bowood’s Request

Bowood has requested a 100% forgivable Façade Improvement Loan in the amount of $750,000, payable at $75,000 per year for ten years.

5.2.2.2 Staff Comments

The C.B.D. C.I.P. contains a Facade Improvement Loan, with a 25% forgivable incentive for the early repayment of the loan.

The C.B.D. C.I.P. provides that the maximum amount of any Façade Improvement Loan is $15,000 per municipal street address or storefront subject to an overall maximum of $45,000 per property owner for a building with multiple street addresses and storefronts.

Staff has no objection to the approval of Bowood’s requested forgivable Facade Improvement Loan of $750,000 over a ten year period subject to the performance criteria in Section 5.3 being applied to any approval.

5.2.3 Region’s Revitalization Program

5.2.3.1 Bowood’s Request

Bowood requests that the City apply for financial incentives under the Region’s Revitalization Program.

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5.2.3.2 Staff Comments

It is recommended that the City apply for financial incentives under the Region’s Revitalization Program in the event the City approves financial incentives for this project.

5.3 Considerations and Format for Council Resolution

In making its decision on the requested incentives, Committee and Council should consider, amongst other matters, the following:

The affordability of the requested incentives.

That, as a prerequisite to any incentives, Bowood be required to enter into an agreement with the City to ensure certain performance criteria are met (e.g. no incentives provided or paid unless and until project is finished to City’s satisfaction, accessibility plan, completion date, etc.).

To assist the Development Services Committee, the following format can be used by the Committee in preparing a recommendation to Council in respect to the request by Bowood for financial incentives for 68-72 King Street East:

1. That, pursuant to Report DS-15-161 dated July 22, 2015, Bowood Properties (2006) Inc. be provided the following financial incentives in respect to its proposed restoration and redevelopment of a mixed use building at 68-72 King Street East under the City’s Central Business District Renaissance Community Improvement Plan:

(a) An Increased Assessment Grant to be paid as follows:

Year 1 – 100% Year 2 – 100% Year 3 – 100% Year 4 – 100% Year 5 – 100% Year 6 – 100% Year 7 – 100% Year 8 – 100% Year 9 – 100% Year 10 – 100% Year 11 – 80% Year 12 – 60% Year 13 – 40% Year 14 – 20%

That the total Increased Assessment Grant be capped at $678,500 over the 14 years; and

(b) That the requested 100% forgivable Façade Improvement Loan in the maximum amount of $750,000 paid in annual installments of $75,000 per year over a ten year period be approved and that it be funded through an annual budget

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contribution of $75,000 per year for 10 years to the Civic Property Development Reserve.

2. That Bowood Properties (2006) Inc. enter into an agreement with the City setting out performance criteria related to the approval of the Central Business District Renaissance Community Improvement Plan including but not limited to:

Bowood, or a corporate entity to which title is given related to Bowood, acquires ownership of the property by December 31, 2015;

The incentives are not assignable to another party without the consent of the City, acting reasonably;

The subject development, including interior and exterior improvements, must be complete and the building available for occupancy by March 30, 2017 and no incentives will be provided or paid until the project is completed to the satisfaction of the City;

The Commissioner of Development Services must approve an Accessibility Plan, with input from the Oshawa Accessibility Advisory Committee, and this plan must be implemented and maintained;

The property, including any building, must be maintained in accordance with the Property Standards By-law and the Ontario Building Code during the period of the financial incentives;

The owner receives approval for variances to Zoning By-law 60-94 to implement the project (e.g. variance for number of parking spaces);

Bowood Properties (2006) Inc. shall continuously comply with any City agreement;

Heritage Oshawa reviews all improvements to the exterior façade and provides comments to Council and any plans be implemented as may be approved by City Council if necessary under the Heritage Act;

Any outstanding taxes are paid;

That any Increased Assessment Grant will only be provided to Bowood Properties (2006) Inc. after all applicable City taxes have been paid by the property owner;

Where possible, Bowood Properties (2006) Inc. shall use local trades and suppliers. Bowood Properties (2006) Inc. must agree to a notification program to make local trades and suppliers aware of the subject development and allow them an opportunity to bid on the project;

The use of the property is maintained as a mixed use building with 66 apartment units and ground floor commercial uses;

Any other appropriate criteria considered advisable by the City Solicitor, Commissioner of Development Services or Director of Planning Services;

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The 100% forgivable Façade Improvement Loan is provided based on actual invoiced amounts for completed eligible work to the limit established by Council; and

The owner is not eligible to apply or receive any financial incentives under the Heritage Tax Reduction Program for a minimum of 15 years after the approved Central Business District Renaissance Community Improvement Plan incentives are finished.

3. That the Commissioner of Development Services be authorized to execute any agreement(s) with the owner to implement Parts 1 and 2 above in a form and content satisfactory to the City Solicitor.

4. That Mayor Henry and Development Services Committee Chair Aker be authorized to write a letter to the Region of Durham to request support for this project under the Regional Revitalization Program.

5. That the Mayor and Clerk be authorized to execute any agreement with the Region of Durham regarding the application for financial assistance under the Regional Revitalization Program for the proposed redevelopment of 68-72 King Street East by Bowood Properties (2006) Inc. in a form and content acceptable to the City Solicitor and the Commissioner of Development Services.

5.4 Rationale for Support

Staff recommend C.B.D. C.I.P. grants for the following reasons:

Repurposing of the former Genosha Hotel advances the goal of the Oshawa Strategic Plan related to downtown revitalization.

A number of action items in Plan 20/Twenty for Downtown Oshawa are addressed such as:

(a) Working with private partners and potential funding tools to encourage the creation of higher density apartment buildings in the downtown;

(b) Marketing the former Genosha Hotel to potential investors and developers; and

(c) Marketing vacant floor space for new retail and culinary uses.

The project will advance Provincial, Regional and Municipal planning policies that promote residential intensification and job growth in Oshawa’s Urban Growth Centre.

The improvements are intended to address the condition of the property and any Property Standards issues.

The repurposing of the subject site will improve and extend the historic landmark presence of this significant cultural heritage resource in the City consistent with the Heritage Designation of the site.

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The project will maintain the momentum in the downtown as a whole.

The project will help create economic spin-offs.

The project will provide additional housing opportunities in the downtown includingopportunities for post-secondary students.

The project will help create more activity and opportunity in the downtown.

Renovation of an existing building of this nature is more difficult and can be costly dueto unknown factors.

6.0 Financial Implications

Bowood’s total development costs for the project are estimated at ±$8.5 million.

The 100% forgivable Façade Improvement Loan in a maximum amount of $750,000, if approved by Council, would be funded from the Civic Property Development Reserve through an annual budget contribution of $75,000 per year for 10 years.

Should Council approve an Increased Assessment Grant, the amount (maximum $675,500) of the annual grant will be included in the annual operating budget in the Taxes Written Off Program.

The cumulative amount of Bowood’s request for financial incentives is estimated at $1,428,500.

7.0 Relationship to the Oshawa Strategic Plan

The Recommendation advances the Economic Prosperity, Cultural Vitality and Accountable Leadership goals in the Oshawa Strategic Plan.

Cindy L. Symons-Milroy, Ec.D., CEcD, Director, Economic Development Services

Paul D. Ralph, BES, RPP, MCIP, Commissioner, Development Services

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Attachment 1 Development Services Department

Item: DS-15-161 Subject: Application under the Central Business District

Renaissance Community Improvement Plan, Bowood Properties (2006) Inc.

Address: 68-72 King Street East File: B-1210-0054

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BOWOOD PROPERTIES, (2006) INC. 6A-170 The Donway West, SUITE 141

Toronto, Ontario M3C 2E8 TEL: 416-444-9061 FAX: 416-444-1724

E-mail: bowood@bellnet.ca

July 19, 2015

City of Oshawa 50 Centre Street South Oshawa, ON L 1H 3Z7

Attention: Ms. Cindy Symons-Milroy Director, Economic Development

Reference: 70 King Street East (former Genosha Hotel)

Dear Ms. Symons-Milroy:

Further to our meetings regarding the above-noted property, this letter will serve to request financial assistance from the City of Oshawa for the restoration and redevelopment of the former Genosha Hotel.

My company, Bowood Properties (2006) Inc. has entered into an agreement of purchase and sale with 219957 Ontario Inc. to acquire the property. Our intent is to construct 66 rental units (40 - 1 bedroom and 26 bachelor) on floors 2-6 with the main entrance being off Mary Street N. These units will have full kitchen facilities including refrigerator, stove, kitchen sink, ventilation, closet/storage space, a separate bathroom with a shower and/or bathtub, a toilet and a wash basin. The balance of each one will be completed in that of a typical rental apartment unit.

The ground floor and the basement will be finished to accommodate retail/restaurant needs and specifications as required.

DS-15-161Attachment 2

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I have retained a local Project Manager who has been conducting due diligence on the property in order to determine the nature and scope of work that needs to be undertaken.

We are aware that Council approved incentives for Summers and Company a number of years ago. Due to the continued deterioration of the building, there is significant work that needs to be undertaken.

The following works and renovations to be completed are as follows:

1. the roof in it's entirely must replaced to current standards and building codes; 2. the parapet wall around the perimeter of the entire building due to inclement

weather conditions has deteriorated to a state that the entire structure must be dismantled and reconstructed as well as all of the roof penthouses;

3. further brick works on the facade of the building in the amount of approximately 5,000 bricks must be repaired along with the equivalent amount of mortar joints that require re-pointing;

4. approximately 130 windows from the 2nd to 61h floor inclusive must be removed

and replaced with custom made-to-measure windows along with appropriate caulking and finishing;

5. all ground floor windows and entrances to be replaced to their original state; 6. all exterior decorative limestone features to be replaced; 7. the south-side and east-side facade of the building will be power washed and .

sealed with an environmentally friendly component; 8. In lieu of the fact that the two existing elevators do not meet current building

codes, it is necessary to remove and replace them as well as refurbish the elevator shafts to meet current fire and building codes.

Items 2, 3, 4 and 7 require that special safety measures be taken which include complete scaffolding of pedestrian sidewalks on King St. E. and Mary St. N ..

As a result of this increased scope of work, we are asking for the following incentives under the Central Business District Community Improvement Plan:

Facade improvement loan of $750,000 payable annually over a TEN year period. This loan would be 100% forgivable;

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Increased Tax Assessment Grant of 100% for the first TEN years from the completion of renovations and then decreasing by 20% over the next FIVE years until it matches the then current tax assessment.

These incentives are critical to making this project viable. Prior to closing on the property, we need to know what level of support we are able to receive from the City of Oshawa.

We are also requesting that the City of Oshawa submit an application to the Region of Durham under their Regional Revitalization Program.

Subject to Council granting our funding request, and receiving approval from the Region, we expect to start the project by August 15, 2015. We anticipate that the project will be completed in sixteen months. Our estimated project costs are $8.5 million and we expect the post-construction market value to be approximately $14 million.

As you can see from the attached list of projects, I have extensive experience in the development industry completing both new builds and redevelopment projects. My professional team consists of BBA Architects and related engineering firms, Richard Senechal, CEO of DUCA Credit Union-Financier, Steve Babor - Leasing Consultant, and the undersigned.

I am enthusiastic to undertake this significant project in Oshawa. I firmly believe, as I'm sure you will agree, that these improvements will enhance and uplift the City of Oshawa. I look forward to Council's support of my request

Richard E. (Tracy) Christie, President

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RICHARD E. (TRACY) CHRISTIE BOWOOD PROPERTIES (2006) INC.

6A-170 THE DONWAY W., SUITE 141 TORONTO, ON M3C 2E8 OFFICE: (416) 444-9061

Email Address: bowood@bellnet.ca ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Originally trained as a mechanical engineer, my career in real estate development as a principal commenced in 1974. Since then I have developed over 325 real estate projects which included apartment buildings, office buildings as well as single family housing. Other commercial development projects ranged in size anywhere from 2,000 square feet free-standing buildings up to 350,000 square feet of enclosed two level commercial malls totaling approximately 4,500,000 square feet . As a developer, I manage the entire real estate development life cycle including acquisition, design, construction, disposition and financial budget The following is a summary of my involvement in each project: -Review appraisals, market studies, site and economic data to assess financial/market feasibility; -Oversee design process: site planning, architecture, engineering, space programming, interior design; -Obtain entitlements: rezoning, permits, environmental clearances, provincial and local licenses, community and political support, utility and ingress/egress easement, economic development incentives; -Negotiated and execute retail lease agreements, land purchase contracts, exclusive market agreements; -Create development budgets (land, soft, hard costs), proforma, income and cash flow statements; -Hire and manage each project's team of general contractors, architects, engineers, environmental consultants, designers; -Oversee all construction: track progress and milestones against schedules, monitor costs against budget, approve change orders, make value engineering decisions, issue directives as owner, troubleshoot projects during and after construction; -Monitor occupancy levels, operating expenses, debt service coverage ratios, net operating income. On a personal note, I am a founding member of the Jennifer Ashleigh Foundation, active in raising funds for the cure of Cystic Fibrosis and other childhood diseases.

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The following is a summary of some of projects I have completed commencing in the year 1974 to the present.

PROJECTS

Commercial Developments Outside of the G.T.A. Project Name Location Size (Sq. Ft.) Anchor/Tenant Woodlawn Rd./ Guelph 20,000 Swiss Chalet/Harvey's/ Edinburgh Rd. Tim Horton's Donuts Upper James Hamilton Mixed-Use Co-operators Insurance Street 5-Storey Office Building with Main Floor Retail Edgehill Drive Barrie 130 unit Apartment A.R.P. Program 10-Storey Building Highbury Ave./ London 25,000 Swiss Chalet/ Harvey's/ Cheapside Rd. Frank Vetere's Adelaide Street London 4,000 Freestanding Beckers Oxford Street Chatham 10,000 Beckers/Little Cesar's Pizza Southdale Rd./Ernest London 25,000 Beckers /O'Tooles Avenue Peter Street Port Hope 40,000 Shoppers Drug Mart/ Bargain Harolds/ Color Your World Division St./ Kingston 12,000 Motorola Mobile/ Concession St. Plumbing Mart Gardiners Rd/ Kingston 15,000 Co-operators Insurance/ Taylor Kidd Blvd. M & M Meats Bell St./Front Street Belleville 150,000 Loeb Foods/C.I.B.C., Jumbo Video/ Bargain Harolds

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Project Name Location Size (Sq .Ft.) Anchor/Tenant Hamilton Road/ London 10,000 Country Style Donuts/ Highbury Rd. Pizza/ Videoflicks Commissioners Road/ London 300,000 Loeb Foods/Zellers Highbury Rd. (Enclosed Mall- Conversion/Retrofit of existing building) Confederation Street Sarnia 40,000 Gas Bar/Hasty Market King William Street/ Huntsville 10,000 Blockbuster Video Hwy #11 Dundas St. East Trenton 150,000 Canadian Tire/Loblaws Phase I Dundas St. East Trenton 10,000 Blockbuster/Harvey's/ Phase II Swiss Chalet Woodbine Avenue Keswick 10,000 Swiss Chalet/Harvey's/ & Morton Country Style Donuts Queen St. South Cambridge 8,000 Blockbuster/Burger King

Commercial Developments In the G.T.A

Project Name Location Size (Sq. Ft) Anchor/Tenant Queen St./Carlaw Ave. Toronto 10,000 Shoppers Drug Mart/ 7-Eleven Store (Conversion/ Retrofit of existing building) Highway #2 Pickering 10,000 Burger King/Mary Brown's Liverpool Chicken/Coffee Way Lawrence/Pharmacy Scarborough 15,000 Canada Trust/St. Clair 2-Storey Paints

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Project Name Location Size (Sq. Ft.) Anchor/Tenant Lawrence Ave./ Scarborough 10,000 Canada Trust/Beckers Gulf Club Rd. (Conversion/Retrofit of existing building) Kingston Rd/Midland Scarborough 5,000 Mac's Milk (Conversion/Retrofit of existing building) Lakeshore Rd./Hurontario Mississauga 5,000 National Trust St. Port Union/401 Scarborough 220,000 A & P/Canadian Tire/ Village of Abbey Lane Bank of Montreal/ CIBC Jane/Finch North York 350,000 Loeb Food Store/Zellers York Gate Mall 2-Storey Enclosed Mall Dundas St./Thickson Rd. Whitby 35,000 LCBO/TD Bank/ Kentucky Fried Chicken Morningside Rd./Finch Scarborough 15,000 National Bank/ Hasty Market Yonge/John Street Thornhill 5,000 TD Bank York Mills/Leslie North York 7,500 Country Style Donuts/ Sketchley Cleaners/ Rogers Video Bloor/Dufferin Toronto 6,000 Coffee Time/Cadet Cleaners Rexdale/Kipling Etobicoke 5,000 Pizza Pizza/National Money Mart Hwy #7/Woodbine Markham 25,000 Kinko's Gateway Computers/Development Bank of Canada 4

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Completed Projects 2005-2015

Project Name Location Size (Sq. Ft.) Anchor/Tenant Eglinton/Bermondsey North York 7,500 Mac's Milk/Tim Hortons/ Parker Cleaners Sheppard/Victoria Park Scarborough 10,000 CIBC/Coffee Time Sheppard/Warden Scarborough 10,000 TD Canada Trust (Conversion/Retrofit of existing building) Yonge/Eglinton Toronto 3,000 Reebok Shoes (Conversion/Retrofit of existing building) Lakeshore Rd E/3rd Line Oakville 10,000 Shoppers Drug Mart/ Pizza Pizza Hwy #2/Harwood Ajax 30,000 National Money Mart/ Fox & Fiddle/Pizza Pizza/ Hakim Optical Yonge St./Lawrence Ave. Toronto 3,000 Pizza Pizza (Conversion/Retrofit of existing building) Upper Middle/ Burlington 25,000 Tim Horton's/Pizza Pizza/ Walkers Line Hakim Optical/Guardian Drugs Eglinton/Markham Rd. Scarborough 7,500 National Money Mart/ Hasty Market/Dentist Dundas Street West Whitby 25,000 Tim Horton's/National Money Mart Islington Ave./Jutland Toronto 3,000 Freestanding 7-Eleven C-Store & Gas Bar Taunton/Brock Whitby 15,000 Jug City/Dentist/Video King

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Project Name Location Size (Sq. Ft.) Anchor/Tenant Main Street Stouffville 15,000 M &M Meats/Pizzaville/ Jeweller (Conversion/Retrofit of existing building) Deboer's/Yonge St. Toronto 40,000 Rexall/Dollarama (Conversion/Retrofit of existing building King Road King City 6,000 RBC/Subway/ Dentist St. Mary St/ Toronto 70,000 Ontario Liberal Party - Yonge St. 6-Storey Building Federal and Provincial (Conversion/Retrofit of existing building) -------------------------------------------------------------------------------------------------------------------------------------------------- __________________________ ____________________________________ R.E. Christie (Tracy), President Date

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DS-15-161 Attachment 3

Excerpts from the Minutes of the Council Meeting held on November 24, 2008

19. Application under the Central Business District Renaissance CommunityImprovement Plan, Summers & Company, 70 King Street East

(DS-08-493) (Ward 5)

Recommendation (CARRIED)

Whereas Summers & Company, in trust for a company to be incorporated with liability, has entered into an agreement to purchase 70 King Street East (the “property”), with the intent of repurposing the building located thereon for commercial and residential uses; and,

Whereas the purchaser has applied for assistance under the said Community Improvement Plan to cause the redevelopment to occur; and,

Whereas the City desires that the said lands be redeveloped for mixed commercial and residential uses;

Now therefore it is hereby resolved that:

1. Notwithstanding Appendix 2 of the Central Business District RenaissanceCommunity Improvement Plan, Summers & Company, or the corporate vehicleto which title to the property is given, be provided with a grant under theIncreased Assessment Grant Program upon the following terms andconditions and the terms and conditions to be enshrined with the subsequentlymentioned development agreement, and the terms and conditions contained inAppendix 2 to the Community Improvement Plan shall not apply:

a) Part of the City of Oshawa portion only (does not include Regional orEducation taxes) of the post-completion property tax bill shall begranted back to Summers & Company based on the increase to theCity’s portion of the annual tax bill resulting from a reassessment ofthe property under the Assessment Act in the year in which theredevelopment opens to the public over the base year taxationamount;

b) The base taxation year shall be 2009;

c) The amount of the annual grant provided during the term will be 100%of the City’s portion of the post-completion tax increase, asdetermined above, for the first calendar year of operation of theredevelopment, commencing the first full calendar year in which taxesare paid after the first occupancy of the residency component of theredevelopment has occurred and the Property has been reassessed;

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d) The amount of the annual grant for the City’s portion of the post-completion tax increase for each successive calendar year will be reduced by 10% per year such that the grant back for the second year will be 90% of the post redevelopment/assessment taxes, the third year will be 80% and so on until the 11th calendar year following the year in which the redevelopment opens to the public when the grant back will fall to 0% and no grant back of post-completion tax increase will be payable for the 11th or any succeeding year thereafter;

e) The tax grant will only be paid following the payment of all property tax installments for the year in which the tax was levied;

f) Tax increases resulting from general re-assessments (meaning re-assessments of the Property in years after the first occupancy of the residency component of the redevelopment), changes in tax legislation or increases in the tax rate are not eligible to be considered for the purposes of calculating the grant;

g) Notwithstanding the foregoing, and for greater certainty, the City will not pay an annual grant which exceeds the City portion of the property tax collected in any year on the increased assessed value; and

h) Should the Property be used for any use other than the redevelopment during the term or the provisions of the development agreement are not fully respected and complied with, no grant shall be provided for the calendar year in which the use ceases or default or non-compliance with the development agreement occurs, or for any year subsequent and the City’s obligations shall be at an end.

2. The City of Oshawa Building Permit Fees associated with the redevelopment shall be granted back, subject to completion of the redevelopment to the satisfaction of the City’s Chief Building Official to an upset limit of $5,000 which is the CIP program maximum limit.

3. A façade loan in the amount of $350,000 be provided, upon the following terms and conditions and the terms and conditions to be enshrined with the subsequently mentioned development agreement, and the terms and conditions contained in Appendix 2 to the Community Improvement Plan shall not apply, with the funds to be provided to the applicant in annual installments of $35,000 each over a ten year period with each installment of the loan being forgivable.

4. Each disbursement of the façade loan and increased assessment grant will only be paid, if the owner can continuously, throughout the entire term of the development agreement, satisfy the following performance measures:

a) Summers & Company enters into, and continuously complies with, a development agreement with the City;

b) Summers & Company, or the corporate vehicle to which title to the property is given, acquires ownership of the property. The agreement

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and related grants may be assignable to another party subject to approval by the City;

c) Ownership, interior and exterior improvements and occupancy to be completed by September 1, 2010;

d) Heritage Oshawa approves all improvements to the exterior façade and these plans must be implemented;

e) City Council approves an Accessibility Plan with input from the Oshawa Accessibility Advisory Committee and these plans must be implemented;

f) A business plan is submitted by Summers & Company to the satisfaction of the City’s Commissioner of Corporate Services;

g) All outstanding taxes are paid;

h) The applicant receives approval for variances to the Zoning By-law 60-94 to implement the project (e.g. variance to the required number of parking spaces) and continuously complies with any decision;

i) The property is maintained in accordance with the Property Standards By-law and Ontario Building Code during the duration of the development agreement with the City;

j) The grant is based on actual invoiced amounts for the completed work to the limit established by Council;

k) The use of the property is maintained as a mixed use commercial/apartment building with ground floor commercial and a minimum of 85 apartment units; and cannot be used as a lodging house or apartment-hotel other than a supervised student residence; and,

l) Any other appropriate criteria considered advisable by the City Solicitor or the City Manager, which shall be enshrined within the development agreement.

5. That prior to the execution of the development agreement, the detailed façade work and building elevations shall be approved by Heritage Oshawa and City Council.

20. Summers & Company - Application to the Region of Durham (DS-08-501) (All Wards)

Recommendation (CARRIED)

That the City of Oshawa support Summers & Company in submitting an application to the Region of Durham under the Community Improvement Program related to property located at 70 King Street East.

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