SPECIAL COUNCIL MEETING COMMUNITY IMPROVEMENT …

Office of Economic Development

Town of Bradford West Gwillimbury



SPECIAL COUNCIL MEETING

COMMUNITYIMPROVEMENT PLAN

MID‐PROGRAM REVIEW

Tuesday, March 26, 2019

Town of Bradford West GwillimburyOffice of Economic Development

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PROGRAMS UNDER REVIEW

1. Seniors Housing Community Improvement Plan (SHCIP)2. Industrial Areas Community Improvement Plan (IACIP)3. Downtown Community Improvement Plan (DCIP)

Supporting Documentation:

• Special Council Meeting Brief• CIP Tracking and Forecast (print‐out provided)• Approved CIP Applications


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MEETING OBJECTIVES

• Adhere to requirement to undertake a review of the programs in Years 3 & 5

• To receive direction from Council on the Town’s three CIPs and update each plan based on feedback

• Should Council wish to consider program changes, it will require:

• A public consultation process with staff reporting back

• Place program intake processes on hiatus. Expected completion July 2019.


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CIP REVIEW LANGUAGE

IACIP:“A formal review of programs for public review will occur at the end of Year 3, and again in Year 5 prior to the termination or extension of the CIP and associated funding programs.”

DCIP:“Further, Council reserves the right to amend the process of application and evaluation, at any time and for any reason, without the requirement to amend the approved Community Improvement Plan.”


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BACKGROUND: TIMELINE

• Downtown and Industrial Areas CIP approved (with funding for DCIP) in May 2013.

• Both programs slated to run for 5 years with a mid‐program review scheduled for 2016

• Seniors Housing CIP approved in May 2016. Downtown and Industrial Areas CIPs extended to new 5‐year term in 2016 with mid‐program review scheduled for 2019

• All programs now in Year 3


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APPLICATION PROCESS (ALL CIPS)

Applicants must provide:

• Online intake form with a rough outline of work to be undertaken

• Formal application with detailed work and cost estimates

• Multiple quotations and other relevant documentation


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PRE‐EVALUATION

The Office of Economic Development:

• Ensures all documentation is received

• Conducts due diligence with Legal, Enforcement, Fire, Finance, Building and Planning departments to confirm compliance with all Town regulations, fees, taxes and bylaws

• Prepares Applicant Checklist outlining business case and confirms accuracy with applicant

• Convenes appropriate CIP Evaluation Committee to review and make recommendations to Council


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EVALUATION COMMITTEE: SHCIP

Seniors Housing CIP: Identified in SHCIP document

• 1 Member of Council• Director of Finance• Chief Building Officer• Manager of Community Planning (or designate)• Manager of Economic Development


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EVALUATION COMMITTEE: IACIP

Industrial Areas CIP: Development Application Review Team

• Staff Representatives from:• Economic Development• Finance• Development & Engineering• Community Planning• Building Division


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EVALUATION COMMITTEE: DCIP

Downtown CIP: Terms of Reference

• 1 Member of Council• 1 Director of the Bradford Board of Trade• 1 Representative from Downtown Revitalization Committee• Staff Representatives from:

• Economic Development• Finance• Development & Engineering• Community Planning • Building Division


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EVALUATION PROCESS• Applications and supporting cost estimates are forward in advance to Evaluation Committee Members

• Evaluation Committee meets to discuss merits of application

• Evaluation Committee makes a recommendation (and additional comments where appropriate) for Council’s consideration

• Economic Development staff prepare a report for Council’s consideration with recommendations

• Council makes its decision

• Applicants reserve the right to appeal Council CIP decisions


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CIP COMPLIANCE

• A contract outlining funding and obligations is prepared by Corporate Services, for consideration and signing by applicant

• After Mayor signs, an initial (seed) amount of grant funding is provided (approx. 10%)

• Further payments are contingent upon receipts provided and evidence of work completion (i.e. Building Permit Occupancy granted, on‐site staff inspection, photos or a combination)

• Enforcement, Finance, Corporate Services and Economic Development monitor over next five years (i.e. typical term of contract for CIP compliance)

• CIP can be cancelled (business closure) or transferred (new owner) and funds re‐collected if needed (through municipal taxes, collections or small claims court)


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PROGRAM SUCCESSESThe overall contribution through all CIP programs of $6.3 million yielded:

• $166 million in new infrastructure, representing a ROI of nearly 2,700%

• 311 new living units

• 18 new businesses

• 700 new jobs (more than 1,000 including spin‐off jobs)

• At least $27.3 million in new wages

• More than $150,000 annually in new property taxes

2019 Payment Obligations under all programs: $440,000 ($90,000 paid)Strategic Reserve and Annual Budget total: $1.12 million


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1. SENIORS HOUSING CIP

• Goal: To provide incentives to create 250 living units for seniors

• Term: 3 Years

• Funding: No dedicated fund

• Status: Program on hold. Intake program still active pending completion of approved applications.


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SENIORS CIP PROGRAMS

• Program 1: Development Charge Grant Program (100% grant)

• Program 2: Tax‐based Redevelopment Grant Program (100% grant)

• Program 3: Planning Fees and Building Permit Grant Program (100% grant)

• Program 4: Cash‐in‐lieu of Parkland Program (50% grant)

Programs 1 & 2 are mutually exclusive


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SENIORS HOUSING CIP

The Elden of Bradford (Bekerman Properties)152 Living Units$44.4 million overall investment$2.57 million grant approvedStatus: Open

Holland Gardens (DCMS/Verve)132 Living Units$33.7 million overall investment$1.76 million grant approved (pro‐rated to 98 units)Status: Opening late spring 2019


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SENIORS HOUSING CIP DISCUSSION• Having accomplished its mandate, should the SHCIP, in its present form be cancelled? (Pending occupancy of Holland Gardens) OR

• Should the SHCIP be modified or continue in its existing format?

• If modifications are considered, what changes should be implemented?• Smaller grant amounts?

Note: Interest in modifying the program to support other types of housing willrequire a new CIP and a separate staff report

RESOLUTION?


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2. INDUSTRIAL AREAS CIP

• Goal: To provide incentives for investment/re-investment inReagens and Artesian Industrial Parks

• Term: 5 Years

• Funding: No dedicated fund

• Status: Active. Year 3. Expected to terminate in 2021.


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INDUSTRIAL AREAS CIP: GRANT AMOUNTS

*Maximum of $50,000 available

• County matches DC portion. Has renewed its bylaw.

• Education component of DC charge not eligible.

• Program 1 & 2 are mutually exclusive

Program Year 1 Grant

Year 2 Grant

Year 3 Grant

Year 4 Grant

Year 5 Grant

Development Charge (DC) 100% 100% 75% 50% 25%

Tax‐based Redevelopment 100% 100% 100% 100% 100%

Planning Fees & Building Permits 100% 100% 50% 50% 0%

Building, Restoration, Renovation & Improvement* 50% 50% 50% 50% 50%


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INDUSTRIAL AREAS CIP: APPROVED

Applicant CIP Grant Total Investment

Array $883,346.47 $3,600,000.00

Matys (150 Artesian) $12,789.37 $12,789.37

Matys (160 Artesian) $12,789.37 $12,789.37

Matys (170 Artesian) $11,071.80 $11,071.80

MedReleaf (Aurora) $90,646.29 $78,000,000.00

TOTAL $1,010,643.30 $86,636,650.54


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INDUSTRIAL AREAS CIP: PENDING

Applicant Potential Grant Amount

Spectra 1 (new build) $5,300,000

Spectra 2 (expansion) $1,700,000

Channel 1 (new build) $750,000

Channel 2 (renovation) $80,000

Kumi (expansion) $500,000

MedReleaf (Aurora Cannabis) (renovation) $90,000

Smartway (expansion) $180,000

285 Dissette (renovation) $30,000

TOTAL $8,630,000


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APPROVED IACIP APPLICATIONS< Reagens Industrial Park

Artesian Industrial Park >


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APPROVED & PENDING IACIP APPLICATIONS< Reagens Industrial Park

Artesian Industrial Park >


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INDUSTRIAL AREAS CIP

• Having funded five applications, should the IACIP, in its present form, be cancelled?

• If modifications are considered, what changes should be implemented? • Smaller grant amounts • Should the DC grant be changed to simply DC deferral? (Excluding those in pipeline)• More funding for renovations vs. new builds or expansions? • How should we continue to finance the plan?

RESOLUTION?


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3. DOWNTOWN CIP

• Goal: To provide (re)investment into downtown building stock tosupport additional commercial and residential use

• Term: 5 Years

• Funding: Dedicated annual fund in Office of Economic Development

• Status: Active. Year 3. Expected to terminate in 2021.


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APPROVED DCIP APPLICATIONS


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APPROVED & PENDING DCIP APPLICATIONS


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DOWNTOWN CIP GRANTS

• Program 1: Façade, Landscape and Signage Improvement (Exterior)

• Program 2: Building, Restoration, Renovation & Improvement (Interior)

• Program 3: Planning Fees and Building Permit (Fee‐Based)

• Program 4: Development Charge (DC)

• Program 5: Tax‐based (re)development (TIG)


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DOWNTOWN CIP: EXTERIOR PROGRAM SCOPE

• Grant is for improvements and upgrades to the street fronts of properties

• It may also be applied to the rear or side of a property in cases where the rear or side of a property is facing a street or public park or public gathering space or parking area that is accessible to the general public

• Goals: Beautification, accessibility, compliance, improving assetvalue and attracting residents, tenants and customers


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DOWNTOWN CIP: EXTERIOR PROGRAM ELIGIBILITY

• Eligible expenses include improvements to windows, doors, outside surface, signs, awnings and landscaping

• The grant is not intended for routine maintenance. (e.g. pavement resurfacing)

• A minimum of $2,000 in eligible expenses are required for consideration ($1,000 grant)

• Small Scale projects only


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DOWNTOWN CIP: EXTERIOR PROGRAM FUNDING

• Program covers up to 50% of eligible expenses to a maximum of:

• $15,000 for buildings fronting Holland, Barrie or Bridge Street

• $10,000 for buildings fronting other streets

• $25,000 for buildings fronting Holland, Barrie or Bridge Street, as well as a second street


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DOWNTOWN CIP: INTERIOR PROGRAM SCOPE

• Grant is for interior renovations and improvements, and can be used for:

• Building, fire and other code compliance

• Expansion/additions and accommodating accessibility and fire/safety upgrades

• Retrofitting existing space (such as second floors)

• Goals: Beautification, accessibility, code compliance, improving assetvalue and attracting residents, tenants and customers


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DOWNTOWN CIP: INTERIOR PROGRAM ELIGIBILITY• Eligible expenses include:

• Drywall• Framing• Flooring• Ceiling work• Plumbing• Electrical work• HVAC

• The grant is not intended for routine maintenance (e.g. repaving) or purchases specific to business operations (e.g. appliances, chairs, tables etc.)

• Small Scale projects only


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DOWNTOWN CIP: INTERIOR PROGRAM FUNDING

• Program covers up to 50% of eligible expenses to a maximum of $50,000.

• The first $25,000 is an Interest‐free, forgivable loan over 5 years (grant).

• The second $25,000 is an interest‐free loan, repayable over 10 years.

• Applicants can apply for the grant portion, loan or both.


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DOWNTOWN CIP: FEE‐BASED PROGRAM SCOPE

• This grant is intended to offset the cost of permits and fees requested by the Town for building construction, renovations and improvements.


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DOWNTOWN CIP: FEE‐BASED PROGRAM ELIGIBILITY

• This grant applies to:• Planning fees• Building permits• Engineering fees

• The grant covers fees required by the Town, not those incurred through work product related to the fees or permits.

• Small and Large Scale projects


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DOWNTOWN CIP: FEE‐BASED PROGRAM FUNDING

• Grants cover up to 75% of eligible Building fees, Engineering fees and Building permits requested by the Town

• Maximum of $20,000

• Ineligible Expenses include: Drawings, studies etc.


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DOWNTOWN CIP: DC PROGRAM SCOPE

• The objective of this program is to provide assistance for the development and re‐development of sites by further reducing the cost of development related to the municipal portion of development charges.

• Goal: Easing cost constraints and encouraging large andmixed‐use developments

• Large Scale projects only


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DOWNTOWN CIP: DC PROGRAM ELIGIBILITY & FUNDING

• Projects undertaking a new build or expansion (that is not eligible for a DC exemption)

• Preference is given to projects most likely to result in the highest increase in assessment

• Large Scale projects only

• A maximum 50% reduction in Development Charges levied by the Town (municipal portion) – County does not match under DCIP


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DOWNTOWN CIP: TIG PROGRAM SCOPE & ELIGIBILITY

• A Tax Increment Grant (TIG) is intended to reduce the financial costs of property construction, rehabilitation or redevelopment by offsetting increases to the municipal portion of property tax costs resulting from development

• The grant requires a minimum increase of $500,000 in assessment

• While the DC grant helps with up‐front costs, the TIG is designed to assist with costs on the back‐end.

• Large Scale projects only. DC and TIG programs not mutually exclusive.


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DOWNTOWN CIP: TIG PROGRAM FUNDING

• Non‐Residential: The grant provides 80% of the annual municipal tax increment up to 10 years.

• Residential: The grant provides 100% of the annual municipal tax increment up to 10 years.


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DOWNTOWN CIP: PAYMENTS BY PROGRAM

Program Approved Minus Loan Actual

Exterior $227,033.53 $0.00 $227,033.53

Interior $516,657.20 $148,876.20 $367,781.00

Fee‐Based $9,307.15 $0.00 $9,307.15

DC $174,557.42 $0.00 $174,557.42

TIG $106,349.48 $0.00 $106,349.48

TOTAL $1,033,904.78 $148,876.20 $885,028.58


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DOWNTOWN CIP: PENDING APPLICATIONSApplication Forecast Amount (if known)

210 Holland St. W. $360,000.00

240 Holland St. W. $360,000.00

200 Dissette St. $2,500,000.00

5 Barrie St. $51,066.55

7 John St. E. $30,711.65

2 Holland St. E. $15,757.77

23 Holland St. E. $3,000.00

22 Holland St. W. $55,000.00

95 Holland St. W. $10,000.00

149 Holland St. W. $250,000.00

66 John St. W. $65,000.00

Others (5) TBD

TOTAL $3,704,802.05


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DOWNTOWN CIP

• Should the DCIP in its present form, be cancelled?

• If modifications are considered, what changes should be implemented?• Smaller grant amounts?• Larger or more grant amounts?• Engineering drawings/Fire compliance plans?• More funding for specific renovations?• Facades / Patios / Heritage buildings?• Expansion or contraction of DCIP Area?

RESOLUTION?


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FINAL POINTS

• Changes to evaluation criteria?

• Changes to ongoing funding levels?

• Reporting/Metrics: Changes or Suggestions?

• Public Process (Timeline): Expected completion July 2019

• Additional Comments from Council?



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SPECIAL COUNCIL MEETING COMMUNITY IMPROVEMENT …

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