The URL can be used to link to this page

Home My WebLink AboutCAO-010-26Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Special Council Date of Meeting: August 19, 2026 Report Number: CAO-010-26 Authored By: Paul Pirri, Director Economic Development Submitted By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: Report Subject: Courtice Community Improvement Plan Grant; 1465 Highway 2, Courtice Recommendations: 1.That Report CAO-010-26 and any related communication items, be received; 2.That Council approve 1465 King Street Inc.’s acceptance into the 2016 Courtice Main Street Community Improvement Plan’s Tax-Increment Grant program. 3.That Council approve a Tax Increment Grant of up to 75% of the municipal portion of the property tax increase generated by the development, payable annually for up to 10 years in accordance with the Courtice Main Street Community Improvement Plan and the terms of the CIP Agreement, and; 4.That Council’s approval of a Tax Increment Grant for 1465 King Street Inc. be conditional upon completion of the project in accordance with site plan approval and fulfillment of the requirements of the CIP Agreement to the satisfaction of the Municipality. C-234-26 Municipality of Clarington Page 2 Report CAO-010-26 Report Overview 1. Background Courtice Main Street Community Improvement Plan 1.1 The Courtice Main Street Community Improvement Plan (CIP) was approved in 2016 to support the vision established by the Courtice Main Street Secondary Plan to develop the area as a mixed-use, transit-supportive, and pedestrian-friendly environment that preserves valuable natural heritage, built form and community character. The CIP provides incentives to higher density residential and mixed -use development projects that generate new or increased property assessment. 1.2 The Courtice Main Street CIP incorporates two financial incentive programs including the Development Charge (DC) Grant Program, and the Tax Increment Grant Program. 1.3 To be eligible for the Courtice Main Street CIP Grant Programs, projects must first meet minimum intensification targets (e.g. density, floor space index). Once it is determined the project achieves the minimum eligibility criteria, the application is evaluated against a performance evaluation framework to determine how well the project addresses key community improvement needs identified by the CIP. The grant value for a project is based on the number of performance criteria achieved by the as-built project and is expressed as a proportion of the applicable development charges, in the case of the DC Grant, or a proportion of the increased tax assessment generated by the development for the Tax Increment Grant. 1.4 The TIG is offered by the Municipality on a “pay-as-you-go” basis. The approved applicant would first construct and complete the approved project. This program will then provide an annual grant for up to 10 years following completion of an eligible project where that project creates an increase in assessment, and therefore an impact on property taxes. 1.5 Pre-project Municipal taxes will be determined by Municipal staff before commencement of the project at the time the application is approved. For purposes of the grant Municipality of Clarington Page 3 Report CAO-010-26 calculation, the increase in municipal taxes (tax increment) will be calculated as the difference between pre-project municipal taxes and post-project municipal taxes that are levied as a result of revaluation of the property assessment by the Municipal Property Assessment Corporation following project completion. 1.6 The grant will be paid annually once: a) The eligible project is complete; b) Final building inspections have taken place; c) An occupancy permit has been issued (as applicable); d) All deficiencies have been addressed; e) All program and grant agreement requirements have been met to the Municipality’s satisfaction; f) The property has been reassessed by the Municipal Property Assessment Corporation (MPAC); g) The new property taxes have been paid in full for the year; and, h) The as-built project performance of the eligible project has been determined by the Municipality 1.7 For a Tax Increment Grant submission, the performance criteria result in the following Tax Increment Grants: Project Performance Program Descriptions Municipality of Clarington Page 4 Report CAO-010-26 2. CIP Grant Application and Discussion Subject Lands and Application 2.1 An application for the Tax Increment Grant (TIG) has been submitted by 1465 King Street Inc. for lands located at 1465 Highway 2, Courtice, on the south side of Durham Highway 2, east of Darlington Boulevard, within the Courtice Main Street corridor. 2.2 The lands are subject to an active Site Plan Control application, File SPA2022 -0008, and previously received approval for site-specific Official Plan Amendment No. 134 and Zoning By-law Amendment 2020-0019, permitting a mixed-use, medium- to high-density development form along Durham Highway 2. The location of the development is identified in Attachment 1. 2.3 In 2026, the Municipality received an updated submission for a development containing 338 apartment units in two high-rise apartment buildings connected by a podium and underground parking. 2.4 The development is included in the Region of Durham’s At Home Incentive Program as it will be contributing 70 new affordable rental housing units. Eligibility and Performance Criteria 2.5 The Courtice Main Street CIP encourages intensification along the Regional Corridor in the form of higher density residential, commercial, and mixed-use development. To be eligible for a DC Grant, properties within the Mid-Rise High Density Residential designation outside of the Town Centre of the Courtice Main Street Secondary Plan area must achieve minimum intensification targets of 75 residential units per gross hectare, a floor space index (FSI) of 1.2, and minimum height of five storeys. The development proposed for this property under Site Plan File SPA2022-0008 meets the Minimum Intensification Targets and qualifies for the Program. More paragraph information. 2.6 Based upon the information provided in support of the CIP application and the site plan approved drawings, the residential development proposed at 1465 Highway 2, Courtice meets 3 out of 5 Project Performance Criteria. With a viable path to reaching 5 out of 5 performance criteria. The outstanding criteria can only be evaluated upon installation. Examples include the inclusions of efficient plumbing fixtures designed to achieve 10% water savings, the provision to include electric chargers in 3% of parking stalls. A full list of the project criteria is contained in Attachment 2. Municipality of Clarington Page 5 Report CAO-010-26 Timing of CIP application 2.7 The proponent has advised that a decision under the 2016 Courtice CIP is required in 2026 to support its application for a construction loan from the Canada Mortgage and Housing Corporation (CMHC). Delaying Council approval until winter 2027 could jeopardize a 2027 construction start. The CIP Agreement will include provisions requiring the project to break ground before July 1, 2027. 3. Financial Considerations 3.1 Development of the facility is expected to increase municipal taxes by approximately $200,000 per year. Depending on the project’s adherence to the performance criteria, 50%, 60%, or 75% of the municipal tax increment would be granted back annually to the property owner for up to 10 years. The exact value of the tax increase will be determined by the assessed value established by the Municipal Property Assessment Corporation (MPAC) after construction is complete. 4. Strategic Plan 4.1 This development supports Priority C.2.2: Support and invest in the creation of housing to meet the needs of the community of the Municipality of Clarington’s 2024-2027 Strategic Plan. 5. Climate Change 5.1 The Courtice Community Improvement Plan supports the Municipality’s climate change objectives by requiring adherence to sustainable development practices to receive a full grant. This includes supporting upgrades that may improve energy efficiency and building performance, where applicable. 6. Concurrence 6.1 This report has been reviewed by the Deputy CAO, Planning and Infrastructure and the Deputy CAO / Treasurer, Finance and Technology who concur with the recommendations. 7. Conclusion 7.1 It is respectfully recommended that Council approve 1465 King Street Inc.’s application for a Tax Increment Grant under the Courtice Community Improvement Plan. Staff Contact: Paul Pirri, Director, Economic Development, ppirri@clarington.net Municipality of Clarington Page 6 Report CAO-010-26 Attachments: Attachment 1 – 1465 Highways 2, Courtice Location Map Attachment 2 – Courtice CIP Performance Criteria Interested Parties: The following interested parties will be notified of Council's decision: 1465 King Street Inc. Subject Property 1465 Highway 2, Courtice Municipality of Clarington, Planning & Infrastructure Services, © Teranet Enterprise Inc. and its suppliers.  All rights reserved.  Not a Plan of Survey., Durham Region, 2026., Ontario Ministry of Natural Resources, © King's Printer for Ontario, 2026., GRCA, CLOCA, Kawartha Conservation Authority , 2025 Orthophotography provided by © First Base Solutions Inc. Clarington Assessment Parcels MPAC Data 8/10/2026, 12:09:44 PM 0 0.06 0.110.03 mi 0 0.09 0.170.04 km 1:4,514 Municipality of Clarington Municipality of Clarington, Planning & Infrastructure Services | 2025 Orthophotography provided by © First Base Solutions Inc. | © Teranet Enterprise Inc. and its suppliers.  All rights reserved.  Not a Project Performance Evaluation Framework While informed by best practices in other municipalities, this performance evaluation framework was custom designed to reﬂect and measure performance with respect to the key community improvement needs in the Courtice Main Street CIP. Also, where applicable and appropriate, the performance evaluation framework draws on the green development criteria in the Green Development Framework endorsed by Council in December of 2015. In order for a project to “conform” with a criteria in the performance evaluation framework, that project must include at least half (50%) of the project components listed under that particular criteria. Where a project component includes a “bonus” option and that bonus option is achieved, that project component will score two points rather than just one point for that project component. Performance Criteria 1: Building Design and Construction For this criterion, the project is reviewed for the following project components: 1. Entrances and windows break up façade space, especially at the street level with a minimum 60% of ground ﬂoor building façade that abuts a street or other public realm space being windows and doors. 2. At least 50% of total parking is underground or structured. 3. The building setback is the minimum distance set out in Zoning By-law unless the building must be set back further due to technical reasons. 4. The use of high quality, durable construction materials that exceed building code minimum standards and are intended to last more than 50 years. 5. An area in each building has been designated for the collection of recyclable materials, compostable organic materials, household hazardous waste and general waste. 6. A Green Rooﬁng system to reduce the amount of roof runoﬀ by absorbing rainwater and reducing both the rate and quantity of its discharge. Performance Criteria 2: Pedestrian Environment and Active Transportation For this criterion, the project is reviewed for the following project components: 1. The building is well connected to sidewalks, parking areas (car and bike), paths, and transit stops. 2. Use of upgraded paving materials that promote full accessibility. 3. Suﬃcient pedestrian amenities provided on site, e.g. benches, waste receptacles, paths. 4. Provision of secure and easily accessible indoor and outdoor (covered) bicycle parking/storage areas with provision of 25% more bicycle parking spots per dwelling unit than the minimum requirement speciﬁed in the Zoning By-law. Bonus = 50% more bicycle parking spots per dwelling unit than the minimum requirement speciﬁed in the Zoning By-law. Performance Criteria 3: Green/Open Spaces and Trail Access For this criterion, the project is reviewed for the following project components: 1. The amount of landscaped open space on-site exceeds the minimum requirement in the Zoning By-law by at least 50%. 2. Retention of mature trees on site wherever possible and the provision of shade within 10 years for at least 50% of site walkways/ sidewalk lengths/ amenity areas (not including street trees). Bonus = 75% shade within 10 years. 3. At least 50% of planting is native, drought and/or salt tolerant species with a mix of these species to minimize the need for irrigation, reduce disease and promote plant diversity. 4. Direct connection to the trail network. Bonus = Trail construction. 5. One or more public art installations equal to 1% of the value of the project. 6. Creation of a rain, ecological or community garden area with a minimum of 50 square feet of garden space per dwelling unit. 7. Methods and technologies that provide appropriate soil volumes and an enhanced soil environment across the site to promote plant health. 8. Boulevard planting enhancements including tree pit areas and underground watering (rootwatering) infrastructure for street trees. Performance Criteria 4: Housing Choice, Accessibility and Affordability For this criterion, the project is reviewed for the following project components: 1. Minimum of three (3) diﬀerent types of dwelling unit types (bachelor, one, two, 3 bedrooms). 2. Minimum of 10% of dwelling units and a minimum of 5 units are aﬀordable housing. Bonus = minimum 25% of dwelling units and a minimum of 10 units are aﬀordable housing. 3. A minimum 20% of dwelling units are accessible units. Performance Criteria 5: Sustainable Development For this criterion, if the building is LEED certiﬁed, the criterion is met. If not, review the following project components: 1. Energy Eﬃciency: Implementation of building practices, equipment and technologies that exceed the energy eﬃciency requirements in the Ontario Building Code. Designed to achieve at least 13% energy eﬃciency improvement over OBC. 2. Renewable Energy: Integrated design and installation of on-site renewable energy infrastructure to serve the entire project. 3. Indoor Water Eﬃciency: Implementation of ﬁxtures, faucets and other technologies such as graywater harvesting and reuse that exceed the water eﬃciency requirements in the Ontario Building Code. Designed to achieve at least a 10% water eﬃciency improvement over OBC. 4. Hybrid / Electric Vehicles: Provision of charging infrastructure. 3% of the site parking stalls (minimum of four stalls) to be dedicated to hybrid/electric vehicles, including charging infrastructure. 5. Green Infrastructure: Integration of practices that contribute to repairing the urban water cycle and climate change resiliency, such as rain gardens, permeable pavement, green roofs, rainwater harvesting and reuse, and urban trees.