Report # 2021-097

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Report # 2021-097 To: Mayor and Council For Direction From: Community Improvement Plan Evaluation Committee

Karl Grenke, Senior Planner For Information

Date: September 9, 2021 For Adoption

Committee of the Whole Date: September 13. 2021 Attachment 13 pages Title: CIP Application for Funding – 21 Main Street East

Recommendation: THAT, Council of the Corporation of the Town of Smiths Falls pass the following resolution:

THAT $25,000 in the form of a Building Restoration, Renovation and Improvement Secured Interest-free Loan (Higher Amount) under Program 2 of the Community Improvement Plan be provided to Sagar Indian Cuisine c/o Ummed Singh for property municipally known as 21 Main Street East.

AND THAT Council pass a by-law authorizing the Mayor and Clerk to execute a funding agreement with the owner of the business providing terms and conditions of the release of the funds.

Purpose: To provide Council with a recommendation from the Community Improvement Plan Evaluation Committee for the release of funds under Program 2 in response to an application received by Sagar Indian Cuisine, c/o Ummed Singh, the owner of the commercial building at 21 Main Street East. Background: As part of the 2021 budget, in addition to funds carried over from previous years, Council has allocated funding to be distributed through the Community Improvement Plan for projects that meet the intent of the Downtown Revitalization Master Plan. The intent of the Community Improvement Plan, as identified in the Official Plan (Sec. 7.2.2) is to “promote and focus public and private sector investment into maintenance, rehabilitation, and redevelopment activities that improve the living and working conditions in the Town.”

In June 2021, the Town received a CIP application from the above noted property to accommodate improvements to the former Kentucky Fried Chicken (KFC) building on Main Street (See attached Key Map – Appendix ‘A’). The intended occupant, Sagar Indian Cuisine, is a restaurant offering a variety of Indian food for dine-in and take-out. The owner currently operates an restaurant of the same name in Carleton Place and he purchased this property to accommodate a second location of the restaurant.

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Mr. Singh’s CIP application initially sought Town funding under Program 1 (Façade, Landscape and Signage Improvement Grant) and Program 2 (Building Restoration, Renovation and Improvement Program) for the renovation and retrofit of the interior of the building and to accommodate the installation of new signage and awnings on the exterior of the building. The proposal that is presented to Council reflects the applicant’s withdrawal of the Program 1 funding request following the Evaluation Committee’s motion to recommend approval of Program 1 with conditions. The applicant has decided to continue to pursue his Program 2 application.

For Council’s consideration, staff have highlighted the intended scope of work for the Program 2 request:

Demolition of interior items (walls, wood paneling, flooring, trim, doors, wall tiles and ceiling tiles);

Framing and structural;

New electrical and fixtures;

Rough-in plumbing for new fixtures;

Adjustments to HVAC to accommodate new floor design;

Repair and replace drywall as needed;

Finishing to walls and floors; and,

Retrofit of new accessible washroom.

The applicant has provided construction drawings demonstrating the existing and conceptual floor place for the restaurant as well as photos representing the existing condition of the interior of the building. (Appendix ‘B’). The applicant has confirmed that a building permit has been obtained for the proposed work and improvements will not proceed until the funding application has been approved in accordance with the CIP policy.

At their meeting on August 11th, the Community Improvement Plan Evaluation Committee reconsidered the Program 2 funding request following the withdrawal of the Program 1 application. Following a second review of the information received, the Committee ultimately adopted the following motion in support of funding under Program 2:

Motion #CIP-21-12 THAT, the Community Improvement Plan Evaluation Committee hereby supports funding the 21 Main Street East Community Improvement Plan Application through Program 2 to a maximum of $25,000. I. Mazurkiewicz - Yea J. Crowder - Yea D. Hudson - Yea C. Saumure - Nay CARRIED: (3-1)

The funding application under Program 2 contained three supporting quotations demonstrating a project value of up to $122,053.00 before applicable taxes. This demonstrates project eligibility of the maximum allowable funding of $40,000 under the “Secured Interest-free Loan (Higher Amount)” funding stream available under Program 2. The Committee recognized that the funding request may deplete the remaining funds allotted to the 2021 CIP budget and considered recommending approval of the full amount. After discussion, the Committee concluded it was not

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in the Town’s best interest to invest the remaining CIP budget on a single property and decided to retain a portion of the budget to allow for additional applications prior to year-end.

As previously noted, the applicant has applied for the “Secured Interest-free Loan (High Amount)” funding stream available under the Program 2 incentive. As per Schedule A of the CIP, 50% of loans exceeding $20,000 to a maximum of $40,000 are repayable to the Town over 5 years with the remaining 50% of the loan forgiven at any annual rate of 20% over the five-year repayment period. As such, should Council adopt the recommendation of the Evaluation Committee, the owner will be required to repay $12,500 to the Town within 5 years from the date of execution of a funding agreement. The remaining $12,500 will be forgiven at an annual rate of 20% provided the business remains operational and/or the property remains under the same ownership. Should the business close or interest in the property be transferred to a separate entity, the forgivable portion will be prorated to determine the portion of the loan needing to be repaid to the Town.

See Appendix ‘C’ for the minutes reflecting the Committee’s discussion.

Analysis and Options: The CIP Evaluation Committee supports this application as they felt the proposed scope of work would enhance the viability of the existing building which is currently in a state of disrepair. The project would create a more usable space and in the end would stimulate the local economy and accommodate a second location of a Lanark County business.

The Committee evaluated this application through their standard Evaluation Matrix. Each member awarded a score for each criterion and an average was calculated to determine the overall score for each section. The evaluation of the application demonstrated consistency with the majority of the established criteria and the application was deemed eligible for funding.

The Committee feels that this application represents an excellent example of the value of the Community Improvement Plan’s Program 2 to encourage the rehabilitation and restoration of building stock in the downtown core.

Options:

1. THAT Council pass a resolution authorizing the funds for 21 Main Street East as supported by the CIP Evaluation Committee; AND THAT Council pass a by-law authorizing the Mayor and Clerk to execute a Funding Agreement for the application articulating the terms and conditions of the release of the funds. (Recommended by CIP Evaluation Committee)

2. THAT Council pass a resolution (and subsequent by-law) for the release of $40,000 (being the eligible costs demonstrated through submitted quotations).

3. THAT Council pass a resolution (and subsequent by-law) for a modified amount to release some, but not all, of the eligible funds for the application (as directed by Council).

4. THAT Council direct staff to ask for modifications to the application to better align with the intent of the CIP Program.

5. THAT Council deny the request for the application for funding.

Budget/Financial Implications:

Available balance of funds in CIP Reserve $45,018.31 (2021 budget, previous year carry-over) Proposed Grant (Program 2): $25,000.00

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Remaining Balance (If application approved in full) $20,018.00 Link to Strategic Plan: Vision Statement

Item 5- Redeveloping our waterfront and downtown Existing Policy:

Town of Smiths Falls Community Improvement Plan, as amended (2017)

Town of Smiths Falls Official Plan 2034

Downtown Revitalization and Waterfront Integration Master Plan

Ontario Planning Act- Sec. 28 Consultations: Community Improvement Plan Evaluation Committee, Applicant (U. Singh), Economic Development, Treasurer Attachments Appendix A – Key Map- 21 Main Street East Appendix B – Existing and Conceptual Floor Plans and Existing Interior Conditions Appendix C – CIP Evaluation Committee Meeting Minutes Excerpt (July 14th (adopted), August 11th (unadopted) Notes/Action (space for Council Member’s notes): Respectfully Submitted: Approved for agenda by CAO:

___________________ __________________ __________________ Karl Grenke RPP, MCIP Kerry Costello Malcolm Morris, CMO Senior Planner Director of Corporate Chief Administrative Officer

Services

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Appendix A - Key Map- 21 Main Street East

Subject Property

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Appendix ‘B’ – Existing and Conceptual Floor Plans &

Interior Conditions

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Existing Interior Conditions

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Appendix C – Draft Meeting Minutes Excerpt

COMMUNITY IMPROVEMENT PLAN EVALUATION COMMITTEE MINUTES

Wednesday, July 14th, 2021 – 4:00 p.m.

YouTube - https://www.youtube.com/channel/UCIFXU6Sq9neiC5VU9QbmLtQ

i) Report No. 2021-CIP-08 – 21 Main Street East (Application CIP-21-04)

M. Remmig gave an overview of the application. C. McGuire stated that the project did not meet the Downtown Core Design Guidelines in his opinion and that he was not supportive of the application. C. McGuire advised that Program 2 funding may be more appropriate to make the space “usable”. C. Saumure disagreed. In his opinion the Program 2 funding request should not be entertained. B. Allen expressed concern with the evaluation matrix used to evaluate Program 2 applications. In her opinion, the evaluation matrix is a bit bias and may of the criteria are not applicable to this application. C. McGuire acknowledged that the criteria were developed several years ago and needs to be modernized. In his opinion, this is an ideal project for Program 2 funding. I. Mazurkiewicz suggested the Committee review the application as two separate components. I. Mazurkiewicz stated that the Program 1 application would improve the property in his opinion. C. McGuire stated that the Committee is accepting of the improvements instead of “getting it done right”. B. Allen asked if C. McGuire would have concerns with the proposal if the backlit sign was removed from the proposal. She understands the backlit sign does not meet the Downtown Core Design Guidelines and read aloud draft conditions she had prepared to make a motion. C. McGuire advised that vinyl awnings do not last and the that existing ground sign needs to be removed. He agreed with B. Allen’s draft condition to landscape the existing planters along Main Street. C. Saumure suggested that painting of the entire façade should be listed as a condition of any approval. B. Allen also noted that she would like to see the ground sign removed, but understands the property is a possible brownfield which may make the removal more difficult. B. Allen advised of her preference to entertain a motion. This is a challenging building in bad repair and the applicant is prepared to invest in the property. C. McGuire stated that the Program 1 request needed more work in his opinion. He suggested moving forward with the Program 2 request and postponing Program 1 until additional information is received.

https://www.youtube.com/channel/UCIFXU6Sq9neiC5VU9QbmLtQ?fbclid=IwAR1T6hMs0lTvtsVqDqOkgY0Kv3sDIhPNua54I58MU0GFl1QDvnxncIHblEQ

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B. Allen expressed more comfortability with moving a motion forward and having the painting of the façade included as a condition of approval. In her opinion, the Ground Sign complies with the Design Guidelines if it is not internally illuminated. C. McGuire noted that he could not support the Program 1 request. He also advised that the Committee should be realistic in the amount of money granted for a single property. I. Mazurkiewicz acknowledged that the Program 1 funding request received a score of 60% on the evaluation matrix which exceed the minimum sufficient score. B. Allen expressed concern with the Committee experiencing a decline in applications. She worries this decline is due to processing timelines. C. McGuire requested a recorded vote. Motion #CIP-21-09 THAT, the Community Improvement Plan Evaluation Committee hereby supports funding the 21 Main Street East Community Improvement Plan Application through Program 1 to a maximum of $10,000.00 for the retrofit of an existing ground sign and fascia sign and the installation of new awnings, subject to the following: 1. The ground sign shall not be internally illuminated; 2. The readograph portion of the ground sign shall be removed; 3. The colour selection for painting of the façade shall be compliant with the palette

presented in the Guidebook provided for through the Downtown Revitalization Render Project funded through the R.E.D. Grant;

4. Painting of the façade shall be completed in accordance with the Guidesheet Appendix provided for through the Downtown Revitalization Render Project funded by the R.E.D. Grant;

5. The existing planters along Main Street East shall be vegetated. I. Mazurkiewicz - Yea C. McGuire - Nay B. Allen - Yea C. Saumure - Yea CARRIED: (3-1) I. Mazurkiewicz opened the floor for Program 2 discussion. C. McGuire moved to support the Program 2 funding request to a maximum of $40,000. A seconder was not recorded. M. Remmig reminded the Committee that the remaining budget would be insufficient should Council accept the previous two motions. C. McGuire noted his preference for the funding to go toward the interior. C. Saumure advised that his preference would be not to grant funding for interior improvements for a “for profit” business. C. McGuire noted that interior investment creates more usable spaces in the Downtown Core.

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C. Saumure stated that the renovation is being completed for profit and is not being completed for public interest. C. McGuire acknowledged that the Town will benefit from the space being filled. In his opinion, the interior renovation would help stimulate economic development. B. Allen stated support for Program 2 funding. She asked for the Committee’s thoughts on granting $10,000 for the interior improvements on the condition the Program 1 improvements are completed as approved by the Committee. C. McGuire expressed concern with funding a “mediocre” Program 1 request and lowering the amount on a “well-done” Program 2 request, I. Mazurkiewicz recognized that the Committee does not make the final decision and that Council has the discretion to increase the amount of funding. B. Allen made a motion to approve a maximum of $10,000 under Program 2 for the project on condition that Program 1 is completed to the satisfaction of the Committee. A seconder was not recorded. C. McGuire suggested that the application could be moved forward to Council to determine a funding threshold. B. Allen made a motion to approve an amount before $10,000 and $20,000 under Program 2 with the amount of funding to be determined by Council. A seconder was not recorded. C. Saumure requested a recorded vote. Motion #CIP-21-10

THAT, the Community Improvement Plan Evaluation Committee hereby supports funding the 21 Main Street East Community Improvement Plan Application through Program 2; AND THAT, Council have the discretion to fund the Program 2 application for an amount between $10,000 and $40,000. I. Mazurkiewicz - Yea C. McGuire - Yea B. Allen - Yea C. Saumure - Nay CARRIED: (3-1)

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COMMUNITY IMPROVEMENT PLAN EVALUATION COMMITTEE MINUTES

Wednesday, August 11th, 2021 – 4:00 p.m.

YouTube - https://www.youtube.com/channel/UCIFXU6Sq9neiC5VU9QbmLtQ

i) CIP-21-04 – 21 Main Street East (Sagar Indian Cuisine)

M. Remmig advised the Committee of the applicant’s withdrawal of the Program 1 funding request for the funding application. After careful review with the Clerk, the withdrawal of the Program 1 funding request has been identified as “new information” for this application. In accordance with Section 32(d) of the Procedural By-law, the Committee may dispose of the previous motion provided for the Program 2 funding request to allow for reconsideration. In order to allow for reconsideration, the Committee must decide through a two-thirds majority vote to dispose of the initial motion. Only after the initial motion has been disposed of can discussion of a new motion be entertained. C. Saumure stated support to rescind the previous motion. J. Crowder concurred. I. Mazurkiewicz called a recorded vote. Motion #CIP-21-11 THAT, the Community Improvement Plan Evaluation Committee hereby rescinds Motion #CIP-21-10 to support funding the 21 Main Street East Community Improvement Plan Application through Program 2 for reconsideration of the application. I. Mazurkiewicz - Yea J. Crowder - Yea D. Hudson - Yea C. Saumure - Yea CARRIED: (4-0)

M. Remmig gave a brief overview of the Program 2 funding request. She advised that no changes had been made to the funding request since presented to the Committee in July 2021. I. Mazurkiewicz acknowledged that if the Committee were to support full funding the CIP budget for 2021 would be depleted. C. Saumure stated he is not in support of granting Program 2 funding to for-profit businesses. J. Crowder acknowledged that the building is currently in a state of disrepair and the beautification of the façade taking place although funding was no longer being sought for the exterior. She recognized that this is a small business owner who may not have the budget to conduct all necessary improvements to bring their business to the area. D. Hudson stated she was in favour of supporting the Program 2 application to be consistent with the initial motion. J. Crowder recognized that there may be opportunity to “max-out” the budget to concentrate

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on the CIP Monitoring and “start fresh” in 2022. I. Mazurkiewicz advised that staff have been pre-consulting on additional applications for the 2021 year. J. Crowder motioned to support funding the Program 2 application for an amount of $40,000. A seconder was not recorded. C. Saumure stated that his preference would not be to exhaust the CIP budget on a single property. I. Mazurkiewicz suggested a smaller amount of funding. He agreed to the principle of the application and funding support but was no in favour of eliminating funding opportunities for other businesses and investing the remaining CIP budget on a single property. C. Saumure requested a recorded vote. Motion #CIP-21-12 THAT, the Community Improvement Plan Evaluation Committee hereby supports funding the 21 Main Street East Community Improvement Plan Application through Program 2 to a maximum of $25,000. I. Mazurkiewicz - Yea J. Crowder - Yea D. Hudson - Yea C. Saumure - Nay CARRIED: (3-1)

Report # 2021-097

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Transcript of Report # 2021-097