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HomeMy WebLinkAboutPSD-054-19 Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Planning and Development Committee Date of Meeting: December 2, 2019 Report Number: PSD-054-19 Submitted By: Faye Langmaid, Acting Director of Planning Services Reviewed By: Andrew C. Allison, CAO By-law Number: File Number: PLN 37 Resolution#: Report Subject: Community Improvement Plan Programs Annual Report Recommendations: 1. That Report PSD-054-19 be received; and 2. That all interested parties listed in Report PSD-054-19 and any delegations be advised of this report. Municipality of Clarington Page 2 Report PSD-054-19 1. Background 1.1 Community Improvement Plans (CIP) are a tool available to municipalities under the Planning Act that allow for the provision of incentives to business and property owners within an identified geographic area. Council adopted the CIPs for Bowmanville and Orono in 2005, and Newcastle in 2008. These three CIPs were refreshed and renewed in 2018 with additional grant programs. The Bowmanville, Newcastle, and Orono CIPs primarily focus on grants for existing buildings, and enhancing the downtown streetscape. The 2016 adopted Courtice Main Street CIP includes programs that encourage major development and redevelopment within the Highway 2 Regional Corridor. 1.2 Information regarding CIP programs is available to business and property owners within the CIP areas via the project page of Clarington’s website, and is distributed directly at pre-consultation meetings, through front counter inquiries, and through ‘word-of-mouth’ within the community. 1.3 Liaison Groups were established for the three CIPs for the historic downtowns of Bowmanville, Newcastle, and Orono. The CIP Liaison Groups meet with Planning Services staff on a quarterly basis. Group members are apprised of CIP related matters, assist staff with informing business/property owners about CIP programs, and provide feedback on the effectiveness of the various grant opportunities based upon the experiences of those who participate in the programs. Report Overview The Bowmanville, Newcastle, and Orono grant programs under the Community Improvement Plans continue to be an effective tool for incenting investment and renewal in the historic downtowns. The Bowmanville, Newcastle, and Orono CIPs are intended to encourage investment to improve the appearance and function of buildings in the downtowns. The Courtice Main Street Community Improvement Plan was adopted by Council in 2016 and functions in a different manner. Its purpose is to enable the Municipality to respond to increased development and community growth through a framework of financial incentives. It includes programs encouraging new, quality-designed high density development and significant redevelopment along the Highway 2 Regional Corridor in Courtice. This annual report provides an update and overview of the CIP program activity in 2019 and funding structure. Municipality of Clarington Page 3 Report PSD-054-19 1.4 Following the recent CIP reviews, staff updated existing and created new CIP communication documents to incorporate the amendments to the CIPs and the grants programs. The Municipality also incorporated the use of social media into community outreach, enabling staff to target the CIP areas with relevant information about the available grant programs. 1.5 In 2018, a portion of the CIP grant funds for Bowmanville and Newcastle was allocated to support the Sidewalk Patio pilot project. The initiative was expanded to include Orono in 2019. Report PSD-053-19 requests similar funding be allocated to support the design and construction of sidewalk extension and patio infrastructure should additional applications come forward. 2. CIP Grant Program Activity Overview of CIP Grant Applications 2.1 Applications for twenty-three (23) different grants associated with twelve (12) properties were received in 2019. Participation of property/business owners in Bowmanville and Orono was particularly strong. There were no CIP grant applications received for projects in Newcastle this year, although steady participation from eligible property owners over the course of the program’s existence indicates this is likely an anomaly. Similarly, no application has been received for the Courtice Main Street CIP area; however, there are planning applications currently being processed that may result in future CIP commitments in Courtice. A detailed overview of the 2019 CIP Activity Summary is appended as Attachment 1. 2.2 In 2019, the façade improvement grant continued to be the most popular, followed by the signage grant and building permit fee grants. These grants are available to business owners as well as property owners. 2.3 The level of uptake of the CIP grant programs since the recent CIP reviews is an indication that property/business owners are becoming increasingly aware of the available opportunities. This may be attributed in part to the increased efforts to distribute communication materials, and the use of social media in response to feedback received during the review. Bowmanville, Orono, Newcastle Community Improvement Funding 2.4 To date, the Municipality has provided funding of $1,126,000 for grants in support of the CIP programs in the Bowmanville, Newcastle, and Orono downtown areas. CIP grants represent an investment partnership whereby the grant value is matched by property or business owners at a ratio of 3:1 or 2:1, based upon eligible costs in accordance with the specific type of grant in each community. It should be noted that many projects exceed Municipality of Clarington Page 4 Report PSD-054-19 this ratio, thereby resulting in the grant comprising a much smaller proportion of the overall cost of the project. 2.5 The implementation of the CIP through grant programs has translated into direct public benefit. Investment in building code and accessibility upgrades, façade improvements to historic and aging buildings, and signage has contributed to the vibrancy of Clarington’s central business areas in the form of viable and attractive places to shop and access local services. It is estimated that the grant contributions have resulted in over $3.5 million in investments in the downtowns. 2.6 Funds that are not committed to grant applications are carried over to the following year. Each CIP has a portion of carry-over funding from prior years that is available to be allocated to projects when applications are received. The funding request appears as part of the Planning Services 2020 budget. 2.7 The Courtice Main Street CIP incorporates two programs, including the development charge grant program, and the tax increment grant program. Grants issued under the Courtice Main Street CIP will result in much higher grant values due to its focus on incenting significant development/redevelopment projects that would provide the new and/or increased property assessment. Development charge grants are budgeted for annually in order to meet the anticipated demand for development charge incentives and are held in a reserve fund. Tax increment grants are related to the increased assessment value of a property that is due to development or redevelopment which the Municipality would forgo for a specified period of time. 2.8 Given the site plan applications currently under review within the Courtice Main Street CIP area, it is likely the demand for development charge grants will exceed the funding accumulated to date. In 2019, no additional funds were allocated to the Courtice Main Street CIP’s reserve fund. Planning Services staff have budgeted for funding in its 2020 budget to continue to build the reserve fund. 3. Concurrence Not Applicable. Municipality of Clarington Page 5 Report PSD-054-19 4. Conclusion The purpose of this report is to provide an update and overview of the CIP program activity in 2019 and funding framework. The interest in and uptake of the CIP programs for Bowmanville and Orono has been strong and steady in 2019, with a number of improvement projects completed. No applications were received in the Newcastle in 2019, however the level of interest in the Newcastle CIP program from previous years suggests this year is an anomaly. It is anticipated that development applications currently being processed in the Courtice Main Street CIP area will result in CIP applications. It is respectfully recommended that Council receive this report for information. Staff Contact: Sarah Allin, Planner II, 905-623-3379 x 2419 or sallin@clarington.net. Attachment: Attachment 1 –2019 Community Improvement Plan Activity Summary List of Interested Parties available from Department.