Community Improvement Plan Service Review Planning & - - PowerPoint PPT Presentation

Community Improvement Plan Service Review

Planning & Environment Committee Monday, April 24, 2017

Service Review Objective

Council Resolution, February 16, 2016: Staff directed to undertake Comprehensive Service review of the City’s existing Community Improvement Plans and associated incentives: The review sought to:  Evaluate the potential for adding more Community Improvement Plans and associated incentives,  Consider the cost and value of existing incentives, and  Consider the potential for re-allocating funding associated with one or more of these programs to best meet Council’s strategic priorities.

Request for New Incentives

Requested Incentive Programs

• For NEW Hamilton Road CIP
• For NEW Lambeth CIP
• From expansion of the Downtown CIP (new boundaries of BIA)
• Granting DC rebate for publicly accessible sports and recreation
• Granting DC rebate for private/not-for-profit educational facilities (music schools)
• For environmentally sustainable buildings or communities
• Granting DC rebate to accommodate small businesses
• Funding existing Brownfield Contamination Assessment Study Grants incentive program
• Fund the existing Industrial Corridor Enhancement Program
• Funding existing Tax Increment Grant program in SOHO
• Funding existing Heritage Building Assessment/Condition Grant Program in Downtown

& Old East Village Part of this Service review also included consideration of the demand for new incentive programs that have been requested of Council, these include:

Request for New Incentives

Requested Incentive Programs

• For NEW Hamilton Road CIP
• For NEW Lambeth CIP
• From expansion of the Downtown CIP (new boundaries of BIA)
• Granting DC rebate for publicly accessible sports and recreation
• Granting DC rebate for private/not-for-profit educational facilities (music schools)
• For environmentally sustainable buildings or communities
• Granting DC rebate to accommodate small businesses
• Funding existing Brownfield Contamination Assessment Study Grants incentive program
• Fund the existing Industrial Corridor Enhancement Program
• Funding existing Tax Increment Grant program in SOHO
• Funding existing Heritage Building Assessment/Condition Grant Program in Downtown

& Old East Village Part of this Service review also included consideration of the demand for new incentive programs that have been requested of Council, these include:

Incentives Through CIPS

The City of London has 7 CIPS though which Financial Incentive Programs are offered

CIPs Financial Incentive Programs Offered

Downtown Last Mile Grant Façade Improvement Upgrade to Building Code Tax Grant Program DC Grant Old East Village Façade Improvement Upgrade to Building Code Tax Grant Program DC Grant SoHo Façade Improvement Upgrade to Building Code Heritage Tax Increment Grant Development Charge Equivalent Grant Airport Area Tax Increment Grant Brownfield Tax Increment Equivalent Grant Contamination Assessment Study Grant Program Development Charge Rebate Property Tax Assistance Program Industrial Lands Development Charge Grant

Incentives With No Recommended Change

CIP Programs Airport Tax Increment Grant: provides a tax grant for eligible aerospace industries for up to 10 years that locate in the identified airport area Heritage Tax Increment Grant: provides a tax grant for a portion of the tax increase associated with a new development, where a heritage building resource is conserved through rehabilitation DC Equivalent Grant: provides a grant equivalent to the DCs that would have been due if the heritage building had been built at the time of the redevelopment. Brownfield Contamination Assessment Study Grant: provides grant for 50% of the cost

• f the study, up to $10,000

Property Tax Assistance Program: provides for the cancellation of 25% of current property taxes for up to 3 years Development Charge Rebate: provides grant back to property owner for up to 50% of normal DCs to cover eligible remediation costs Tax Increment Equivalent Grant: provides a grant for the amount of the municipal property tax increase resulting from rehabilitation for up to 3 years There are NO proposed changes to the CIPs and Programs below as at this time

Recommended Approach

Savings Funded by Savings

Façade Loans

• 1. Increase max value of loan to $50k
• 2. Expand program to Richmond Row
• 3. Expand program to Hamilton Road (*)
• 4. Expand Program to Lambeth (*)
• 5. Re-establish forgivable loan portion for 3 years

for some areas Building Code Loans

• 1. Increase max value of loan to $200k
• 2. Expand program to Richmond Row
• 3. Expand program to Hamilton Road (*)
• 5. Re-establish forgivable loan portion for 3 years

in Downtown & OEV CIP areas Tax Grant Program

• 1. Apply Program to SoHo program area
• 2. Increase tax grant schedule for heritage

designated properties (creating greater incentive for retention) Fund Industrial Corridor Enhancement Grant $200k savings to 4-year budgeted savings target

Residential Development Charges

Require that applicants pay for their full development charge and then grant back the development charge over a schedules period (10 years in most cases) Savings $620,000 per year (annual) $6 million one-time

Industrial Development Charges

Reduce the development charge grant

• ffered to non-targeted industrial uses to

50% of the development charge on first $500k in DCs (i.e. $250,000 maximum cap) Savings TBD

Revised Programs start January 1, 2018 to December 31, 2023

Industrial DC Program Changes

To align with corporate economic development strategies, including the Industrial Lands Development Strategy, the recommended change to the program is to differentiate two categories of industrial uses: targeted and non-targeted Building (Category) Applicable DCs ($) Applicable Grant (%) DC Grant Amount DCs Payable Agri-Food Manufacturer (Targeted) $ 600,000 100 % $ 600,000 $ 0 Shipping/Warehousing (Non-Targeted) $ 600,000 50% ($250,000 cap) $ 250,000 $ 350,000 The categories “targeted” and “non-targeted” will be based upon existing definitions within the Industrial Lands Community Improvement Plan. This approach strategically links incentives to targeted uses – those that will generate more employment and multiplier employment (spin-offs) and also will have the largest impact on developing London’s economy for the future.

Residential DC Program Changes

Combined DC rebate and a Tax-back Increment rebate simultaneously, further changed include:

• At the time of building permit issuance applicants pay DCs & apply to Grant program
• Grants commence in the same year (after a re-assessment)
• The scheduled grant-back will be equivalent to 100% of the municipal portion of the tax

increment each year until all the DCs have been repaid

Residential DC Program Changes

Development Charges: 4,000,000 $ Tax Increment: 650,000 $ Assessed Value: 55,000,000 $ Year Annual Grant Amount Rate (%) $ Rate (%) $ (= 100 % of Increment) 1 60 390,000 $ 40 260,000 $ 650,000 $ 2 60 390,000 $ 40 260,000 $ 650,000 $ 3 50 325,000 $ 50 325,000 $ 650,000 $ 4 40 260,000 $ 60 390,000 $ 650,000 $ 5 30 195,000 $ 70 455,000 $ 650,000 $ 6 20 130,000 $ 80 520,000 $ 650,000 $ 7 10 65,000 $ 90 585,000 $ 650,000 $ 8 10 65,000 $ 90 585,000 $ 650,000 $ 9 10 65,000 $ 90 585,000 $ 650,000 $ 10 10 65,000 $ 90 35,000 $ 100,000 $ Totals 1,950,000 $ 4,000,000 $ 5,950,000 $ Tax Rebate (TIG) DC Rebate

Tax Increment Grant Program Changes

Level 1 Level 2 Level 3 Year Current Proposed New No Change No Change 1 80% 100% 70% 60% 2 80% 100% 70% 60% 3 70% 100% 60% 50% 4 60% 90% 50% 40% 5 50% 80% 40% 30% 6 40% 70% 30% 20% 7 30% 60% 20% 10% 8 20% 50% 10% 10% 9 10% 40% 10% 10% 10 10% 30% 10% 10%

Increase the value of the grant for Level 1 properties to encourage the adaptive re-use of properties designated under the Ontario Heritage Act

* Program to be activated in SOHO CIP Area

Façade Loan Program Changes

EXISTING Façade Improvement Loan Programs Offered through: Downtown CIP, Old East Village CIP & SoHo CIP Loans up to $25,000 or half of the value of work (whichever is less). Heritage building facades are eligible for loans up to $30,000. One lifetime loan per property. Loans are paid back at 0% interest over a 10 year period. REVISED Façade Improvement Loan Programs To be offered through: Old East Village CIP SoHo CIP Expanded Downtown CIP Hamilton Road CIP & Lambeth CIP Loans increased from $25,000 to up to $50,000 or half of the value

• f work (whichever is less).

Loans are paid back at 0% interest over a 10 year period. ** Forgivable loans to be offered to 3 years (2018 to 2020) with

• ngoing Evaluation (for future budget considerations).

One application per property every eleven years or one year after the previous loan is repaid to the City, whichever is less. REVISED PROGRAM DETAILS: EXISTING PROGRAM DETAILS **Forgivable Loans only in Downtown & Old East Village CIPs

Upgrade to Building Code Loan Programs Offered through: Downtown CIP, Old East Village CIP & SoHo CIP Loans up to $50,000 or half of the value works (whichever is less). Loans are paid back at 0% interest over a 10 year period

Upgrade to Building Code Loan Program Changes

REVISED Upgrade to Building Code Loan Programs To be offered through: Old East Village CIP SoHo CIP Expanded Downtown CIP & Hamilton Road CIP Loans increased from $50,000 to up to $200,000 or half of the value of work (whichever is less). Loans are paid back at 0% interest over a 10 year period. **Forgivable loans to be offered to 3 years (2018 to 2020) with

• ngoing Evaluation (for future budget considerations).

One application per property every eleven years or one year after the previous loan is repaid to the City, whichever is less. REVISED PROGRAM DETAILS: EXISTING PROGRAM DETAILS **Forgivable Loans only in Downtown & Old East Village CIPs

Incentives to be Offered

The follow table illustrated what programs would be available by CIP: Downtown Old East Village SOHO Downtown Expansion/

Richmond Row (*)

Hamilton Road (*) Lambeth (*) Facade Loan Bldg Code Loan Forgivable Façade Loan Forgivable Bldg Code Loan Rehab & Re-dev Tax Grant DC Rebate

(*) Proposed CIP

All Programs to: Start on January 1, 2018 End by December 31, 2023

Engagement Process

In 2016 staff consulted with various key stakeholder. The summary below highlights significant meetings (but is not an exhaustive list):

Important Public Consultation Meetings

April 18 & 20 2017 Meetings with key stakeholders (LEDC, BIAs & Developers) November 17, 2016 Industrial Land Development Strategy Group November 4, 2016 London Development Institute October 20, 2016 3 Public Stakeholder Meetings at City Hall August 22, 2016 Planning & Environment Committee July 6, 2016 London Advisory Committee on Heritage June 30, 2016 Progress London June 22, 2016 London Regional Manufacturing Council June 14, 2016 London Development Institute June 8, 2016 2 Public Stakeholder Meetings at Stronach Community Centre June 7, 2016 2 Public Stakeholder Meetings at Stronach Community Centre May 16, 2016 LEDC & Chamber of Commerce April 4, 2016 Building and Development Liaison Forum

Next Steps

• Staff Report to April 24, 2017 PEC Meeting
• Prepare New Program Guidelines for programs to be implemented on January 1, 2018,

and report back to Council for information

• Revise other Program Guidelines (for: Airport, Brownfield, and Heritage CIP programs)
• Amend the current CIPs (Downtown, Old East Village, SoHo, Airport, Brownfield,

Heritage and Industrial Lands) to provide performance measures/indicators of success

• Amendments to the Downtown CIP and the Official Plan to expand Downtown CIP

project area to include Richmond Row with different programs.

• Possible future amendment to the Official Plan to add the Hamilton Road CIP and

Lambeth CIP project areas, and to adopt new CIPs for those CIP project areas

• Annual and 5-year monitoring reports of program activity and success

Sources of financing for potential new programs arising from the new Hamilton Road and Lambeth CIPs and new programs arising from expanded CIP project area have been identified through this CIP program review

Review Summary

Through this service review the City has:

• Deleted incentives from consideration that did not align with legislation
• Focused on incentive that had greatest impact on Council goals
• Found savings through new approach
• Sequestered savings for 4-year budget targets
• Used additional savings for updating loan amounts (reflect current costs)
• Used additional savings to apply programs to new areas