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HomeMy WebLinkAboutPDS-002-22Clarftwn 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: January 17, 2022 Report Number: PDS-002-22 Submitted By: Reviewed By: File Number: Ryan Windle, Director of Planning and Development Services Andrew C. Allison, CAO PLN 37 By-law Number: Resolution#: PD-005-22 Report Subject: Downtown Community Improvement Plan Programs 2021 - Annual Report Recommendations: 1. That Report PDS-002-22 be received; and 2. That all interested parties listed in Report PDS-002-22 and any delegations be advised of this report. Municipality of Clarington Report PDS-002-22 Report Overview Page 2 The grant programs available under the Bowmanville, Newcastle, and Orono downtown Community Improvement Plans (CIP) continue to be an effective tool for encouraging investment and renewal in Clarington's historic downtowns. These CIPs are intended to support improvements to the appearance and function of buildings in the downtowns. The Courtice Main Street CIP was adopted by Council in 2016 and functions in a different manner. Its purpose is to promote land consolidation, redevelopment, and intensification in support of the vision for a sustainable, quality -designed, and complete community established by the Courtice Main Street Secondary Plan. This annual report provides an update and overview of downtown CIP program activities and grants in 2021. 1. Background 1.1. A Community Improvement Plans (CIP) is a tool available under the Planning Act that allows municipalities to provide 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 an expanded suite of grant programs. The Bowmanville, Newcastle, and Orono CIPs primarily focus on grants for improving existing buildings and enhancing the historic downtown streetscapes. The Courtice Main Street CIP, adopted in 2016, includes programs that encourage major redevelopment and intensification within the Highway 2 Regional Corridor. 1.2. Information about the CIP programs is available to business and property owners within the CIP areas on Clarington's website, is distributed using Clarington's social media platforms, and is provided by staff during pre -consultation meetings and as part of responses to property inquiries. `Word-of-mouth' within the community has also been effective in creating awareness of CIP grant opportunities. 1.3. Liaison Groups were established for the three historic downtown CIPs for Bowmanville, Newcastle, and Orono. The CIP Liaison Groups meet with Planning and Development Services staff on a quarterly basis. Liaison 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. 1.4. 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 Municipality of Clarington Report PDS-002-22 Page 3 in 2019 and was made available again to all three communities in 2020 and 2021. This component of the CIP funding was not expended during the 2021 sidewalk patio season and will be carried over and made available in 2022 to support new sidewalk patios in accordance with PDS-060-21. 2. CIP Grant Program Activity Overview of CIP Grant Applications 2.1. Two CIP signage grant applications associated with two Bowmanville properties were received in 2021. No new applications were received for properties within the Newcastle or Orono CIP areas. Participation of property and business owners in each of the downtown areas was considerably lower in 2020 and 2021 than in previous years, likely due to the COVID-19 pandemic. 2.2. Although new grant activity was slow in 2021, grants that were conditionally approved in previous years were paid out as the work was completed, suggesting property owners and businesses are beginning to resume planned improvement works. Bowmanville, Orono, Newcastle Community Improvement Funding 2.3. To date, the Municipality has provided funding of over $1 million for grants in support of the CIP programs in the Bowmanville, Newcastle, and Orono downtown areas. CIP grants represent an investment and 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 for the specific type of grant in each community. It is noted that many projects exceed this ratio, resulting in the grant comprising a much smaller proportion of the overall cost of the project. 2.4. The implementation of the CIPs through grant programs has translated into direct public benefit. Investment in building code and accessibility upgrades, fagade improvements to historic and aging buildings, and upgraded signage all contribute to the vibrancy of Clarington's central business areas as viable and attractive places to shop and access local services. It is estimated that the grant contributions have resulted in over $3.7 million in investments in the downtowns. Figure 1 illustrates the total applications received by grant type since the CIP grant programs began. Municipality of Clarington Report PDS-002-22 Summary of Total Number of Grants by Type Accessiblity Infill/Reconstruction Site Plan Fee Building Permit Fee Signage Building Code Upgrades � Fagade Improvement 0 70 80 Figure 1: Summary of Total Applications by Grant Type Page 4 2.5. Funds not committed to grant applications are carried over into subsequent years. Each CIP has carry-over funding from prior years available for projects when applications are received. The grant funding request appears as part of the Planning and Development Services budget each year. Table 1 below summarizes the funding status for each CIP identifying the total funding (i) provided to the programs to date (ii) expended through grants issued (iii) committed to conditionally approved projects, and (iv) remaining for new applications in each community. Table 1: Summary of Funding Status; Bowmanville, Newcastle, Orono and Courtice CIPs Funding Category Bowmanville Newcastle Orono Courtice (DC Grant) Provided $716,000 $348,000 $172,000 $456,000 Expended $551,842 $221,269 $135,517 $126,179* Committed $12,719 $26,169 $13,970 $0 Remaining $151,439 $100,561 $22,513 $329,821 *Includes $90,000 that was reallocated from the Courtice CIP towards the local parks/trail system as noted in subsection 2.9, below. Municipality of Clarington Report PDS-002-22 Courtice Main Street CIP Funding Page 5 2.6. The Courtice Main Street CIP was approved in 2016 and 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 generate new and/or increased property assessment. 2.7. Development charge grants are budgeted for annually and held in a reserve fund in order to meet anticipated demand in future years. Tax increment grants are tied to the increased assessment value of a property resulting from development or redevelopment, which the Municipality would forgo for a specified period of time (e.g.10 years). 2.8. To date, two developers are interested in pursuing development charge grants under the Courtice Main Street CIP. Based upon the eligibility and project performance criteria, possible DC Grant values for these projects could be in the range of $800,000 to $1 million for each project. Applications for qualifying development projects would be brought forward to Council for consideration and commitment of funding. Applicants would be required to enter into an Agreement outlining the terms and conditions associated with the grant funding. A separate report, PDS-003-22 on one of these applications is on the same meeting agenda. 2.9. As per Table 1 above, the non -capital funding to date for the Courtice CIP is $456,000. In 2019, previously approved funds from 2018 and $100,000 budgeted in 2019 for the Courtice CIP were reallocated to support works within the local parks and trails system. In 2020, $100,000 and 2021, $210,000 was allocated to the Courtice Main Street CIP reserve fund. The reserve is being built to address anticipated grants due for issuance once construction of the qualifying developments is complete and is confirmed to meet the project performance criteria for sustainability and high -quality urban design. Planning and Development Services staff has included $210,000 in the 2022 budget to continue to build the reserve fund. 2.10. The Courtice Main Street CIP has been in place for five years. The CIP includes a Monitoring Program to ensure the incentive programs remain relevant and effective. In 2022, staff will undertake a review and update to ensure the performance criteria and requirements continue to incent development projects that (i) exceed industry standards in the areas of sustainability, urban design, and affordability, and (ii) contribute to the realization of the vision established by the Courtice Main Street Secondary Plan. Recommendations to adjust the financial incentive programs will be brought forward for Council's consideration but would not require a formal amendment to the CIP. Municipality of Clarington Report PDS-002-22 3. Concurrence Page 6 3.1. The Director of Financial Services has reviewed this report and confirmed the budget and monies allocated to date. 4. Conclusion 4.1. The purpose of this report is to provide an update and overview of CIP program activity in 2021 and the associated funding framework. COVID-19 has impacted several municipal programs in 2021, including applications for CIP grants. However, the interest in and uptake of the CIP programs for Bowmanville and Orono was strong and steady in pre -pandemic 2019. It is anticipated that as businesses continue to adjust to the presence of COVID-19, applications for CIP grants will return to prior levels. 4.2. Two developers are interested in pursuing development charge grants under the Courtice Main Street CIP. Qualifying applications will be brought forward to Council for consideration and commitment of funding. The Courtice Main Street CIP reserve fund is being built to address anticipated demand for grants in future years. Staff will undertake a review of the Courtice financial incentive programs in 2022 to ensure they continue to achieve the goals of the CIP. 4.3. 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. Interested Parties: List of Interested Parties available from Department.