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HomeMy WebLinkAboutPSD-019-13 Clarington REPORT PLANNING SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: March 18 , 2013 Resolution#: &A­190-13 By-law#: Report#: PSD-019-13 File#: PLN 34.2.24 Subject: HERITAGE INCENTIVE GRANT PROGRAM RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PSD-019-13 be received; 2. THAT the Heritage Incentive Grant Program, as outlined in Attachment 2, be approved for heritage properties designated under Part IV (Individual) and Part V (District) of the Ontario Heritage Act; and 3. THAT all interested parties listed in Report PSD-019-13 be advised of Council's decision. Submitted by: Reviewed by,':,,_ Davi . Crome, MCIP, RPP Franklin Wu, Director of Planning Services Chief Administrative Officer KK/FL/DJC/sn/df 6 March 2013 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: PSD-019-13 PAGE 2 1. BACKGROUND 1.1 Clarington's built heritage is an important part of the urban and rural fabric of the Municipality. Heritage properties within the Municipality contribute to the economic wellbeing of Clarington's downtowns and provide a charm which draws visitors to the Municipality and ensures the historic character of Clarington is not lost while we expand and grow into the 21St century. 1.2 The Ontario Heritage Act allows municipalities to designate properties of "cultural heritage value or interest". Currently there is no requirement under the Act for an owner to carry-out restoration, typically restorations are carried out by owners as part of their pride of ownership. It is well known that heritage properties can be more costly to restore and maintain than newer buildings. 1.3 In 2005, the Ontario Heritage Act was amended to include heritage grant and tax relief programs under Section 39. Section 107 of the Municipal Act allows for grant and incentive programs under certain circumstances, heritage being one of the instances. Many municipalities throughout Ontario have implemented heritage incentive grants and tax-relief programs. In Durham Region, Ajax, Whitby, and Oshawa have implemented programs (see Attachment 1). 1.4 During the 2013 budget deliberations Council approved the budget allocation necessary to set up a heritage grant program. This purpose of Report PSD-019- 13 is to set out the conditions for the grant program. 2. DISCUSSION 2.1 The majority of heritage designations in Clarington occurred when the Provincial Government provided a heritage grant program in the 1980's and early 1990's, indicating that the community is receptive to protecting and enhancing cultural heritage when incentives are available. 2.2 Since most of the designations took place at this time, many of Clarington's designated buildings are on their second or third owner since designation. The lack of an incentive program, coupled with the economic conditions, means that some buildings are slipping into disrepair or that owners are choosing to carry out renovations not in keeping with the original character of the building, others have inquired about removing their designation. 2.3 Heritage property owners in the older downtowns of Bowmanville, Newcastle, and Orono, within the Community Improvement Program (CIP) boundaries, have used the CIP grant programs to carry out building code upgrades and fagade enhancements. However, there has been no funding available for designated heritage property owners outside the CIP boundaries. 2.4 A Heritage Incentive Grant program, rather than a tax rebate program has been recommended for Clarington for the following reasons: REPORT NO.: PSD-019-13 PAGE 3 • Uptake for the CIP grants have proven immensely successful in stimulating heritage sensitive renovations and improvements, improving the vibrancy of the older downtown cores. • Given Clarington's large inventory of designated heritage properties in relation to other nearby municipalities, a cost analysis has demonstrated that a heritage tax rebate program would be more costly than administering a grant program and that the costs would not necessarily translate into improvements to the heritage building stock. • Other municipalities in Durham have indicated limited uptake of tax rebate programs since they require heritage conservation easement agreements to be entered into by the owner which is onerous for both the property owners, and the municipality. Additionally the Region of Durham could offer a matching program, however they have indicated that they will only do so if all lower-tier municipalities participate which is highly unlikely. 3. COMMENTS 3.1 The Clarington Heritage Committee (CHC) is supportive of a heritage grant program which aids in the preservation and upkeep of designated heritage properties. Committee members prefer a grant program rather than a tax relief program as the grant funding directly impacts the upkeep of the building. In the case of the heritage tax relief, there is no requirement for the owner to carry out restoration, refurbishment or maintenance to receive the tax relief once the conservation easement is in place. 3.2 Comments received from property owners indicate a reluctance to apply for heritage designation based on the potential for increased financial costs involved in restoring and maintaining a designated property. The availability of the Heritage Incentive Grant may provide a further impetus for property owners to apply for Heritage Designation. 3.3 In discussion with other municipalities that provide heritage incentive grants, it is clear that the program's effectiveness relates directly to its ease of application. Programs that require a number of steps may be underutilized and not achieve the desired goal of preserving and enhancing built heritage. 3.4 The proposed Heritage Incentive Grant program (Attachment 2) has been modeled on the programs implemented in Clarington's Community Improvement Programs. The Heritage Incentive Grant will be administered and regulated as a separate entity from the CIP grants; though many of the rules would be similar. 3.5 An initial budget of$5,000 has been approved for this initiative. It is anticipated that funds not allocated in any given year would accrue and be available in future years. REPORT NO.: PSD-019-13 PAGE 4 3.6 An annual report will be compiled by Planning Services detailing the effectiveness of the program, and the uptake of funding, similar to the CIP reports. 4. CONCURRENCE 4.1 This report has been reviewed by the Director of Finance. 5. CONCLUSION 5.1 Council's approval of the seed funding for the Heritage Incentives Grant Program demonstrates Clarington's desire to highlight and preserve the unique cultural and architectural heritage within our urban and rural areas. Funding for this program will `fill in the gap' between improvement funding for our downtowns through the CIPs, and funding of our designated heritage assets which fall outside of the CIP areas. 5.2 It is recommended that the Heritage Incentive Grant Program (outlined in Attachment 2) be approved. CONFORMITY WITH STRATEGIC PLAN The recommendations contained in this report conform to the general intent of the following priorities of the Strategic Plan: X Promoting economic development Maintaining financial stability Connecting Clarington Promoting green initiatives Investing in infrastructure X Showcasing our community Not in conformity with Strategic Plan Staff Contact: Faye Langmaid, Manager, Special Projects Attachments: Attachment 1 - Table detailing Heritage Incentive Programs adopted by other municipalities Attachment 2 - Clarington Heritage Incentive Grant, Information and Program Rules Interested parties to be notified of Council's decision: Clarington Heritage Committee Julia Fielding, Clarington Museum and Archives Tracey Ali, ACO Clarington Branch Attachment 1 To Report PSD-019-13 OTHER MUNICIPAL HERITAGE FINANCIAL INCENTIVE PROGRAMS Municipality Amount Pro ram Type Additional Details Toronto $10,000 maximum 50% matching Grant (residential) Ottawa $5,000 maximum 50% Matching Grant Mississauga $5,000-$10,000 50% Matching Grant $5000 maximum for maximum work on heritage attributes; $10,000 maximum for structural work Hamilton $20,000 maximum 50% Matching Grant Grant is for commercial (commercial) heritage improvement and restoration only Brampton $5,000 maximum 50% Matching Grant (residential) Kitchener $500 to $3,000 50% Matching Grant maximum St. Catherines $1,000 maximum 50% Matching Grant Cambridge $5,000 maximum 50% Matching Grant Kingston $2,000 maximum 50% Matching Grant Niagara on the $5,000 to $20,000 50% Matching Grant $5000 maximum for Lake maximum residential; $20000 maximum for commercial Ajax 10% tax rebate Tax Relief Program Whitby 40% tax rebate Tax Relief Program Oshawa 40% tax rebate Tax Relief program Port Hope $25,000 total annual 50% Matching Grant Will fund up to 5 funding projects each year Cobourg $15,000 per project Loan Program per property Sault Ste. Marie $3,000 maximum 2/3 of eligible costs Attachment 2 To Report PSD-019-13 HERITAGE INCENTIVE GRANT PROGRAM MUNICIPALITY OF CLARINGTON The Heritage Incentive Grant Program is intended to assist properties designated under the Ontario Heritage Act (2005) Part IV and V with financing the cost of repairs and restoration of a designated heritage property. A grant will cover up to 50% of the costs of the eligible work per building to a maximum of$2000 for exterior work, or$1000 for interior work maximum of$3000 per property owner. General Application Information A complete application for eligible works must be submitted by the registered property owner in conjunction with an application for Alteration under the Ontario Heritage Act (where required). Applications for work already commenced or completed will not be considered. Municipal and other government or agency owned properties are not eligible for this grant. Property taxes must not be in arrears at the time of the application and at the time of project completion. All work must be done pursuant to building permits (if required), constructed in accordance with the Ontario Building Code, and meet all applicable planning approvals and zoning requirements. Approval of a Heritage Incentive Grant will be by the Director of Planning Services or designate. Should the heritage incentive grant require an application under the Ontario Heritage Act, approval will only be given once a positive recommendation from the Clarington Heritage Committee is received and endorsed by Council. Grants will be administered on a first come first served basis, however, priority will be given to applications that are addressing designated heritage features. In any given year, grants will be limited to the available funding. A project will be eligible, provided the property is not currently receiving other grants or tax incentives from the Municipality of Clarington. Grants shall only be paid to the owner once municipal staff have inspected the completed eligible work and is satisfied that the work has been performed in accordance with the Ontario Heritage Act and any other recommended guidelines. Area of Application The Heritage Incentive Grant program is available to all registered property owners of Designated Heritage Properties, and all registered property owners within the Beech Avenue Heritage Conservation District in the Municipality of Clarington. Designated heritage property owners within Community Improvement Program area boundaries will be directed to apply for grants under those programs. Eligible Works Eligible works include as a first priority: • the conservation of existing heritage elements listed in the designating by-law; and • the reconstruction of existing heritage features that are beyond repair or conservation. Eligible works as a second priority: • the accurate reproduction of significant features which no longer exist, but for which clear documentation is available. The reproduction of significant features may include, but is not limited to: • Repair or restoration of the exteriors of buildings including roofs, verandas, windows, doors, and masonry; and • Restoring/repairing original windows • Work necessary to restore the building to structural soundness (e.g. the repair of serious structural faults that threaten the building's survival; underpinning of building structures; repair/new roofs), but not including structural work to accommodate modern renovations and additions; • Repair of mortar (exterior); and • Other improvements of a similar nature to the building exterior or interior as approved by the Director of Planning Services. Ineligible projects include: • Insulation; • The replacement of knob and tube electrical wiring with modern wiring/electrical systems; • Landscaping; • Unnecessary or damaging exterior cleaning such as sandblasting; • Structural works to the exterior of buildings to accommodate modern renovations such as additions and new doors and windows (unless original and of heritage significance); • Short term repair work; and • Maintenance, such as painting. Application Process 1. Contact the Planning Services Department to determine if your property is eligible for the grant. 2. Submit a completed Heritage Incentive Grant Application Form to the Planning Services Department of the Municipality of Clarington. Application must contain the following: a. Description of eligible works b. Cost estimate of the works to be undertaken including a minimum of two quotations from qualified contractors for undertaking the eligible works. Cost estimate should indicate a breakdown of items, description of works to be performed, etc. c. Colour photos of the current state of significant heritage features to be improved d. Drawings or photos detailing the proposed improvement works (Note: Drawings prepared by a Professional Engineer or Architect may be required if significant structural and/or architectural improvements are proposed) 3. Applications will be reviewed by the Planning Services Department and the Clarington Heritage Committee (CHC) if a heritage alternation permit is required. The property owner will be notified and encouraged to attend the CHC meeting where their application is being reviewed in order to answer any questions that may arise. The applicant will also be advised if any building permits or other approvals are required for the proposed works. It will be the responsibility of the applicant to ensure that the appropriate permits are obtained in order to be eligible to receive the funding. 4. Prior to the approval of a Heritage Incentive Grant, municipal staff may request an inspection of the building to review the condition of the feature and the proposed work. Prior to issuing a decision, further drawings, cost estimates or other information may be requested. 5. If all eligibility criteria and conditions are met and funds are available in the grant fund, the Director of Planning Services or designate will approve the Heritage Incentive Grant. A letter will be issued from the Municipality to the applicant representing a commitment and will be valid for a period of 6 months. The Director, at his discretion, may provide an extension of 6 months. 6. Staff from the Planning Services Department (and in some cases the Clarington Heritage Committee) will conduct an inspection to ensure the works are in keeping with the intent of the drawings and materials as originally approved. In the event that the heritage improvements do not match the drawings, materials, or intent of the original application, approval may be withdrawn without appeal. 7. Following satisfactory inspections of the work and the receipt of invoices from the applicant, a grant cheque will be issued to the property owner for the full amount of the approved funding providing that the property owner is not in tax arrears and has finalized all building permits and necessary inspections. 8. The property owner is obligated to take proper actions to maintain the refurbished heritage features to the satisfaction of the Municipality. 9. Future modifications that change the integrity of the features appearance are subject to'the approval of the Municipality and may be denied if they are contrary to the heritage designation. Questions should be directed to Faye Langmaid, Manager of Special Projects, at the Clarington Planning Services Department at 905-623-3379 Ext. 2407, or the Municipal Administrative Centre at 40 Temperance Street 3rd Floor, Bowmanville. fangmaid a clarington.net