Brownfields Redevelopment
Community Improvement Plan
TABLE
OF CONTENTS
Page
1.0 INTRODUCTION 1.1 The Brownfields Context
1.2 The Rationale for Brownfields Redevelopment
1.2.1 Environmental, Economic and Social Benefits
1.2.2 Growth Management in Ottawa
1.3 Purpose of the Brownfields Redevelopment Community Improvement Plan
1.4 Glossary of Terms
2.0 LEGISLATIVE AUTHORITY AND PLANNING POLICIES 2.1 Section 106 – Municipal Act, 2001
2.2 Section 28 – Planning Act
2.3 Section 365.1 – Municipal Act, 2001
2.4 Provincial Policy Statement (PPS) 2.5 Ottawa 20/20
2.6 Official Plan
2.7 Existing Community Improvement Plans
2.8 Economic Strategy
2.9 Environmental Strategy
3.0 CRITICAL NEEDS ANALYSIS
3.1 Review of Background Information
3.2 Key Stakeholder Consultation
3.3 Public Consultation
3.4 Ottawa Brownfields Advisory Committee
4.0 COMMUNITY
IMPROVEMENT PROJECT AREA
5.0
GOALS
6.0 INCENTIVE PROGRAMS
6.1 Introduction
6.2 General Program Requirements
6.3 Project Feasibility Study Grant Program
6.3.1 Purpose
6.3.2 Description
6.3.3 Requirements
6.3.4 Administration
6.4 Environmental Site Assessment Grant Program
6.4.1 Purpose
6.4.2 Description
6.4.3 Requirements
6.4.4 Administration
6.5 Property Tax Assistance Program
TABLE OF
CONTENTS (CONT’D)
Page
6.5.2 Description 6.5.3 Requirements 6.5.4 Administration
6.6 Rehabilitation Grant Program 6.6.1 Purpose
6.6.2 Description
6.6.3 Requirements
6.6.4 Administration
6.7 Building Permit Fee Grant Program
6.7.1 Purpose
6.7.2 Description
7.0 DEVELOPMENT CHARGE REDUCTION PROGRAM (BROWNFIELDS) 7.1 Purpose
7.2 Background 7.3 Description 7.4 Monitoring and Review
8.0 MUNICIPAL LEADERSHIP STRATEGY
8.1 Purpose 8.2 Description 8.2.1 Coordination 8.2.2 Municipal Support and Leadership
8.3 Guidelines for Identifying Priority Sites and Projects
9.0 MARKETING STRATEGY 9.1 Purpose
9.2 Description
9.2.1 Target Audiences
9.2.2 Marketing Tools
9.2.3 Key Messages
10.0 MONITORING PROGRAM
10.1 Purpose
10.2 Description 10.3 Program Adjustments
11.0 REFERENCES
List of Figures
1 Benefits of Brownfield Redevelopment
2 Key Stakeholders by Sector
3 Summary of Incentive Programs
4 Variables to be Monitored
TABLE OF CONTENTS
(CONT’D)
Page
LIST OF APPENDICES
A City of Ottawa Official Plan, Section 5.2.5, Community Improvement Policies
B Ottawa Brownfields Advisory Committee
C Ottawa Brownfields Redevelopment Community Improvement Project Area
D Incentive Programs Utilization on a Brownfields Redevelopment Project
E Project Feasibility Study Grant Program Administration
F Environmental Site Assessment Grant Program Administration
G Property Tax Assistance Program Administration
H Rehabilitation Grant Program Administration
Copyright © 2006, City of Ottawa
All rights reserved. No part of this publication may be reproduced, recorded or transmitted in any form or by any means, electronic, mechanical, photographic, sound, magnetic or other, without advance written permission of the owner.
This study has been produced with the assistance of the Green Municipal Enabling Fund, a Fund financed by the Government of Canada and administered by the Federation of Canadian Municipalities. Notwithstanding this support, the views expressed are the personal views of the author(s), and the Government of Canada and the Federation of Canadian Municipalities accept no responsibility for them.
1.0 INTRODUCTION
1.1 The Brownfields Context
In their
2003 National Brownfield Redevelopment Strategy for Canada[1],
the National Roundtable on Environment and Economy (NRTEE) defined brownfields
as “abandoned, vacant, derelict or underutilized commercial and industrial
properties where past actions have resulted in actual or perceived
contamination; brownfields differ from other contaminated sites in that they
hold active potential for redevelopment”. For the purposes of this Community
Improvement Plan, “brownfields” are defined as “abandoned, vacant, or
underutilized commercial and industrial properties where past actions have
resulted in actual or perceived environmental contamination and/or derelict or
deteriorated buildings”.
1.2 The Rationale for Brownfields Redevelopment
1.2.1 Environmental,
Economic and Social Benefits
Ottawa is joining the
growing list of municipalities in Ontario that are pioneering the use of
Brownfields Redevelopment Strategies and Community Improvement Plans as a means
to promote the redevelopment of brownfields. More and more municipalities are
preparing these plans to address brownfield sites because these sites represent
an environmental, economic and social concern in their communities.
From an economic
perspective, brownfields can result in reduced property values, economic
activity and employment. Vacant and underutilized properties in serviced urban
areas represent an opportunity to curb urban sprawl and its associated
financial and environmental costs. For example, a 2001 study[2]
of brownfield versus greenfield development in six U.S. cities found that every
acre of brownfield land developed would have required 4.5 acres of greenfield
land. Urban sprawl has significant economic and environmental costs and
jeopardizes prime agricultural lands. From an environmental perspective,
brownfields can present a threat to ecological and human health and safety.
From a social perspective, the existence of brownfields can lead to
neighbourhood deterioration, threats to personal safety and security, and
reduced quality of life.
Naturally, the benefits
that result from brownfield redevelopment are also environmental, economic and
social, and tend to accrue at the local level, because all development, be it
brownfield or greenfield, is inherently local. The economic benefits of brownfield
redevelopment can include increased employment in urban areas and increased
property values. Environmental benefits can include the removal of threats to
the health of residents and workers, the protection of groundwater resources,
wetlands and wildlife habitats, and a reduction in urban sprawl. The social
benefits of brownfield redevelopment can include neighbourhood revitalization,
improved safety and security, the provision of additional housing opportunities
through intensification and infill, and an increased sense of community pride.
Figure 1 below summarizes the benefits of brownfield development and the interrelationship between these benefits. For example, the economic benefits resulting from brownfield development, such as increased incomes and property tax revenues can contribute to social benefits such as neighbourhood stability and quality of life. Therefore, financial incentive programs that result in an increase in brownfield development will translate into economic, environmental and social benefits.
Figure 1 Benefits of Brownfields Redevelopment
Source:
Regional Analytics, 2002.
1.2.2 Growth
Management in Ottawa
In addition to the
numerous benefits of brownfield redevelopment, the City has identified its
Brownfields Redevelopment Strategy and Community Improvement Plan (CIP) as key
components in implementing the City’s approved Growth Management Strategy
(Ottawa 20/20). Ottawa 20/20, including the City’s Official Plan was adopted in
2003 by City Council. The Official Plan seeks to manage growth by directing it
to the urban area through activities such as infill and intensification. The Official
Plan sets a firm urban boundary and identifies priority areas for infill and
intensification, i.e., the Central Area, Mixed Use Centres, along Mainstreets
and within 600 metres of existing or planned rapid transit stations. Therefore,
this Brownfields Redevelopment CIP gives higher priority to promoting
brownfield redevelopment in these areas. The Brownfields Redevelopment Strategy
and CIP will play a key role in promoting and directing infill and
intensification as specified in Ottawa 20/20 and the Official Plan. Combined
with the environmental, economic and social benefits that will result from
brownfield redevelopment, the Brownfields Redevelopment Strategy and CIP will
ultimately help the City achieve its Smart Growth goals.
1.3 Purpose of the Brownfields Redevelopment
CIP
This CIP is based on the
Ottawa Brownfields Redevelopment Strategy. The Strategy sets out the general
policy framework that will guide the City’s program activities to promote
brownfield redevelopment in Ottawa. The Strategy includes a detailed critical
needs analysis, rationale for the incentive programs contained in this CIP, and
strategies to market the Brownfields Redevelopment CIP programs.
The purpose of this CIP
is to act as the primary vehicle for implementing the Ottawa Brownfields
Redevelopment Strategy by providing a framework containing financial incentive
programs and a municipal leadership strategy that will encourage the
remediation, rehabilitation and adaptive reuse of brownfield properties in Ottawa.
Furthermore, implementation of this CIP will help the City of Ottawa to meet
its growth management goals.
1.4 Glossary of
Terms
The
following defines terms used in this CIP.
“Applicant”: Unless otherwise specified, is a
registered owner, assessed owner or tenant of lands and buildings within the
community improvement project area, and any person to whom a registered owner,
assessed owner or tenant of lands and buildings within the community
improvement project area has assigned the right to receive a grant or loan.
With the exception of the Project Feasibility Study Grant Program and the
Environmental Site Assessment Grant Program, public sector owners of property
within the community improvement project area are not eligible to directly
apply for the programs contained in this Plan. The City will determine the
eligibility of applicants.
“Brownfield”: An
abandoned, vacant, derelict, idled or underutilized commercial or industrial
property where past actions have resulted in actual or perceived environmental
contamination and/or derelict or deteriorated buildings.
“City”: The City of Ottawa.
“Community
Improvement”: Unless
otherwise specified, this term is as defined and used in accordance with its
meaning under Section 28 of the Planning Act, and means the planning or
replanning, design or redesign, resubdivision, clearance, development,
redevelopment, reconstruction and rehabilitation, or any of them, of a
community improvement project area, and the provision of such residential,
commercial, industrial, public, recreational, institutional, religious,
charitable or other uses, buildings, works, improvements or facilities, or
spaces therefore, as may be appropriate or necessary.
“Community
Improvement Plan”: Unless otherwise specified, this term is as defined and used in
accordance with its meaning under Section 28 of the Planning Act and
means a plan approved by the Minister of Municipal Affairs and Housing for the
community improvement of a community improvement project area.
“Community
Improvement
Project Area”: Unless
otherwise specified, this term is as defined and used in accordance with its
meaning under Section 28 of the Planning Act and means a municipality or
an area within a municipality, the community improvement of which in the
opinion of the council is desirable because of age, dilapidation, overcrowding,
faulty arrangement, unsuitability of buildings or for any other environmental,
social or community economic development reasons.
“Eligible property”: Unless
otherwise specified, is a property (including land and buildings) that is
within the Community Improvement Project Area as defined in this Plan.
“Qualified person”: As
defined by Section 168.1 of the Environmental Protection Act and Ontario
Regulation 153/04.
“Rehabilitation”: Unless otherwise specified, this
term is as defined and used in accordance with its meaning under Section 28 of
the Planning Act.
2.0 LEGISLATIVE
AUTHORITY AND PLANNING POLICIES
2.1 Section
106 – Municipal Act, 2001
Section
106(1) and (2) of the Municipal Act, 2001 prohibits municipalities from
directly or indirectly assisting any manufacturing business or other industrial
or commercial enterprise through the granting of bonuses. Prohibited actions include:
a) giving or lending money
or municipal property;
b) guaranteeing borrowing;
c) leasing or selling any
municipal property at below fair market value; and
d) giving a total or
partial exemption from any levy, charge or fee.
Section
106(3) of the Municipal Act, 2001 provides an exception to this bonusing
rule for municipalities exercising powers under the provisions of Section 28(6)
or (7) of the Planning Act or Section 365.1 of the Municipal Act,
2001.
2.2 Section 28 – Planning Act
Section
28 of the Planning Act allows municipalities with provisions in their
official plans relating to community improvement to designate by by-law a
“community improvement project area” and prepare and adopt a community
improvement plan for the community improvement project area. Once the community
improvement plan has been adopted by the municipality and approved by the
Minister of Municipal Affairs and Housing, the municipality may exercise
authority under Section 28(6) or (7) of the Planning Act or Section
365.1 of the Municipal Act, 2001 in order that the exception provided
for in Section 106(3) of the Municipal Act, 2001 will apply.
According
to Section 28(1) of the Planning Act, a “community improvement project
area” is defined as “a municipality or an area within a municipality, the
community improvement of which in the opinion of the council is desirable
because of age, dilapidation, overcrowding, faulty arrangement, unsuitability
of buildings or for any other environmental, social or community economic
development reason”.
Section
28(1) of the Planning Act defines “community improvement” as “the
planning or replanning, design or redesign, resubdivision, clearance,
development or redevelopment, reconstruction and rehabilitation, or any of
them, of a community improvement project area, and the provision of such
residential, commercial, industrial, public, recreational, institutional,
religious, charitable, or other uses, buildings, works improvements or
facilities, or spaces therefore, as may be appropriate or necessary”.
Once a CIP has been adopted by a municipality
and approved by the Minister of Municipal Affairs and Housing, the municipality
may:
i)
acquire,
hold, clear, grade or otherwise prepare land for community improvement (Section
28(3) of the Planning Act);
ii)
construct,
repair, rehabilitate or improve buildings on land acquired or held by it in
conformity with the community improvement plan (Section 28(6));
iii)
sell, lease,
or otherwise dispose of any land and buildings acquired or held by it in
conformity with the community improvement plan (Section 28(6)); and
iv)
make grants
or loans to registered owners, assessed owners and tenants of land and
buildings within the community improvement project area, to pay for the whole
or any part of the cost of rehabilitating such lands and buildings (Section
28(7)).
Section
28(7.1) of the Planning Act specifies that the total of all grants and
loans made under Section 28(7) of the Planning Act and tax assistance
provided under Section 365.1 of the Municipal Act, 2001 in respect of
the land and buildings shall not exceed the cost of rehabilitating the land and
buildings. The incentive programs contained in Section 6.0 of this Plan contain
safeguards to ensure that this legislative requirement is met.
2.3 Section
365.1 – Municipal Act, 2001
Section 365.1(2) and (3)
of the Municipal Act, 2001 allows municipalities to pass a by-law
providing tax assistance to an eligible property in the form of a deferral or
cancellation of part or all of the taxes levied on that property for municipal
and education purposes during the rehabilitation period and the development
period of the property, both as defined in Section 365.1 (1) of the Municipal
Act, 2001. Section 365.1 of the Municipal Act, 2001 operates within
the framework of Section 28 of the Planning Act. A municipality with an
approved community improvement plan in place that contains provisions
specifying tax assistance will be permitted to provide said tax assistance for
municipal purposes. Municipalities may also apply to the Minister of Finance to
provide matching education property tax assistance through the Brownfields
Financial Tax Incentive Program (BFTIP).
2.4 Provincial
Policy Statement (PPS)
The Provincial Policy Statement (PPS) is issued under
Section 3 of the Planning Act and is intended to guide municipalities as
they make planning decisions. The Planning Act requires that municipal
decisions in respect of the exercise of any authority that affects a planning
matter “shall be consistent with” the PPS.
The PPS supports the remediation and redevelopment of brownfield
sites. For example, Section
1.7.1 c) of the PPS states that “long-term economic prosperity should be
supported by promoting the redevelopment of brownfield sites”. Brownfields are defined in the PPS as “undeveloped or
previously developed properties that may be contaminated. They are usually, but
not exclusively, former industrial or commercial properties that may be
underutilized, derelict or vacant”.
The PPS also supports Smart Growth through urban growth
management. For example, Section 1.1.3.3 of the PPS states “planning authorities
shall identify and promote opportunities for intensification and redevelopment
where this can be accommodated taking into account existing building stock or
areas, including brownfield sites, and the availability of suitable existing or
planned infrastructure and public service facilities required to accommodate
projected needs”. Therefore, the PPS supports brownfield redevelopment as a way
to achieve the goal of promoting intensification and redevelopment. Other
policies in the PPS (Sections 1.1.1 a), 1.1.1 g) and 1.6.2) support the
management of growth to achieve efficient development and land use patterns
which sustain the financial well-being of the Province and municipalities over
the long term. The redevelopment of brownfields has a role to play in this
regard.
2.5 Ottawa 20/20
Ottawa
20/20 is the City’s Growth Management Strategy. Adopted in 2003, Ottawa 20/20
was developed based on a dynamic process of citizen involvement and resulted in
a vision and set of principles to guide the planning activities of the
municipality. These principles are:
i)
A
Caring and Inclusive City;
ii)
A
Creative City Rich in Heritage, Unique in Identity;
iii)
A
Green and Environmentally Sensitive City;
iv)
A
City of Distinct, Liveable Communities;
v)
An
Innovative City Where Prosperity is Shared Among All;
vi)
A
Responsible and Responsive City;
vii)
A
Healthy and Active City.
These principles and the vision were used to
guide preparation of a set of five growth management plans, including the:
·
Official
Plan;
·
Economic
Strategy;
·
Environmental
Strategy;
·
Human
Services Plan;
·
Arts
and Heritage Plan.
Taken together, these five growth management
plans provide a comprehensive framework for managing growth in the City of
Ottawa.
Ottawa 20/20 cites brownfield redevelopment as a
“priority project” that supports several of the Ottawa 20/20 principles. As an
example, the remediation and redevelopment of brownfield sites will help to
promote an environment that is cleaner and a city that is more environmentally
sensitive. Cleanup of brownfield sites in and near heritage districts will
contribute to creating a city that is even richer in heritage and more unique
in identity. The remediation, reuse and redevelopment of vacant, derelict and
underutilized properties in residential neighbourhoods, commercial areas and
employment areas will make these areas more liveable for the people who reside
and work there. It will also reduce urban sprawl and its associated costs.
Brownfield redevelopment can result in opportunities for job retention and
creation. This in turn can result in increases in corporate and personal
income. Brownfield redevelopment can also result in long-term increases in
property assessment values and this can contribute to a reduction in the
property tax rate. Finally, by
developing and implementing this Brownfields Redevelopment CIP, the City of
Ottawa can demonstrate that it is an innovative, responsible and responsive
city.
2.6 Official Plan
The Community
Improvement policies in Section 5.2.5 of the Official Plan set out the
rationale for preparing a community improvement plan, criteria to be considered
when designating a community improvement project area, priority areas for
community improvement, and the range of actions that Council may undertake to
implement community improvement plans.
Depending on the purpose
for which it is designated, a community improvement project area may be part or
all of the urban area of the City of Ottawa, and/or part or all of one or more
villages in the City of Ottawa. The full text of Section 5.2.5 of the City of
Ottawa Official Plan is contained in Appendix A.
2.7 Existing Community Improvement Plans
There are only two existing community improvement plans in Ottawa. These are the King Edward Avenue and Somerset West Community Improvement Plans. Neither of these plans include grants, loans or any form of financial incentive program or other program that would impact on or be impacted by the Brownfields Redevelopment CIP.
2.8 Economic Strategy
The
Economic Strategy stresses a city that can retain and capture employment
opportunities while reducing its ecological footprint for land and energy use
and improving the quality of life through development. The reuse and
redevelopment of vacant and underutilized former industrial and commercial
buildings for new employment and residential uses will help to achieve this
goal.
The
Economic Strategy is based on strengthening industry clusters and
entrepreneurship. One of the ways the Strategy recommends this be done is to
develop a program that will strengthen and support the economic vitality of
Ottawa's main streets through promotion and business retention initiatives. The
rehabilitation of infill sites on Ottawa’s main streets will provide
opportunities and locations to help retain and attract business.
The
Economic Strategy acknowledges that the City’s future ability to attract both
people and investment depend on maintaining both quality of life and quality of
place. The quality of place is enhanced when the environment is improved
through remediation and the aesthetic and social quality of neighbourhoods,
commercial and employment areas is improved through brownfields rehabilitation
and redevelopment.
2.9 Environmental Strategy
Ottawa's Environmental Strategy was prepared in
2003 and focuses on the responsible management of all aspects of the City's
environment. It sets the direction and establishes a comprehensive approach to
create sound environmental management in City practices and policies. The
Environmental Strategy includes as one of its goals “clean air, water and
earth”.
As part of its corporate environmental action
planning, the Environmental Strategy specifically recommends that the City of
Ottawa develop a program to encourage the development of brownfields in the
short term, i.e., within two years. More specifically, the Environmental Strategy identifies the development of a program to
promote urban intensification and reduce urban sprawl by providing municipal
loans, grants, tax increment equivalent financing, and waiving development fees
for brownfield redevelopment projects.
The
Environmental Strategy includes a Summary of Environmental Management Best
Practices. The section on brownfields notes that the objective of brownfield
redevelopment is to recapture the social and economic value from contaminated
property. Brownfield redevelopment is identified as a key strategy for
promoting reinvestment in existing urban areas and for reducing the need to
expand into greenfield sites.
The Environmental
Strategy identifies the National Brownfield Redevelopment Strategy (national)
and the Brownfields Statute Law Amendment Act (provincial) as federal and
provincial measures that will facilitate the redevelopment of brownfields. Best
management practices identified in the Strategy also include:
·
municipal
loans and grants;
·
tax-increment
equivalent financing;
·
waiver
of municipal fees and development charges;
·
use
of environmental liability insurance;
·
programs
for public education and community participation.
The City’s
Environmental Strategy is very supportive of brownfields redevelopment and
includes a commitment to develop a program to encourage the redevelopment of
brownfields.
3.0 CRITICAL NEEDS ANALYSIS
A critical
needs analysis was conducted to determine the key impediments to brownfield
redevelopment and the types of incentive programs and municipal actions needed
to promote brownfield redevelopment in Ottawa.
3.1 Review of Background Information
The first step in preparing this CIP was a
comprehensive review of background information. This included a review of:
i)
municipal policies relating to brownfield redevelopment and
growth management;
ii)
provincial and federal policies relating to brownfield redevelopment;
iii)
the implications of brownfield related legislation and
regulations for the City of Ottawa; and,
iv)
best practices in eight Ontario municipalities and a few
leading U.S. municipalities.
This review of background information helped to
establish the parameters of possible program policy responses to local
impediments to brownfield redevelopment.
3.2 Key Stakeholder Consultation
In order to understand the key impediments to brownfield redevelopment in Ottawa, and the strategies and actions that could be used to successfully overcome these impediments, 14 key stakeholders were interviewed. With assistance from City of Ottawa staff, the 14 key stakeholders were carefully chosen to provide broad representation from across the brownfield redevelopment industry, associated service providers, the community and the federal government which has a significant land ownership presence (including brownfields) in Ottawa. A list of the types of agencies and organizations represented by the key stakeholders is presented in Figure 2.
Figure 2 Key Stakeholders by Sector
Sector |
Stakeholders
Interviewed |
Owner
– Public Works Canada |
1 |
Owner
– National Capital Commission |
1 |
Owner/Developer
– Canada Lands Company |
1 |
Developer |
2 |
Homebuilders |
2 |
Environmental
Consultant |
1 |
City
of Ottawa Environmental Advisory Committee |
1 |
Environmental
Remediation Contractor |
1 |
Legal
(Environmental Specialist) |
1 |
Financial
Institution |
1 |
Real
Estate |
1 |
Community
Representative |
1 |
TOTAL |
14 |
Interviews with the key stakeholders were conducted over a two-day period in the Fall of 2005 in Ottawa. A questionnaire was used by interviewers to guide the interview process, but stakeholders were given ample opportunity and encouraged to explore and speak freely about issues impeding brownfield redevelopment, and possible strategies and actions to overcome these impediments. The responses to the questionnaire identified the following as the key impediments to brownfield redevelopment in Ottawa:
· Liability;
· Environmental legislation, regulations and standards (including the inability to effectively utilize risk assessment and risk management practices on contaminated sites);
· Municipal planning and environmental policies and approvals;
· The cost of environmental remediation;
· The cost of environmental site assessments;
· Need for more proactive support and leadership from the City;
· Lack of public education and awareness;
· Community concerns;
· Need for improved government coordination on brownfield redevelopment projects.
The questionnaire also asked key stakeholders to identify strategies and actions that could potentially be used to help overcome the impediments to brownfield redevelopment in Ottawa. These responses were utilized to help prepare a Draft Brownfields Redevelopment Strategy containing incentive programs, strategies and actions designed to address the key impediments to brownfield redevelopment in Ottawa.
3.3 Public Consultation
The
first public meeting on the Brownfields Redevelopment Strategy and CIP was held
during the Summer of 2005 at City Hall. The purpose of this meeting was to
inform the public and key stakeholders of the study process. Approximately 50
people attended the public meeting. With respect to promoting brownfield
redevelopment, those in attendance at the public meeting made suggestions in
the areas of growth management, financial incentives, community impact and
government coordination. These suggestions were used to help guide development of
the Brownfields Redevelopment Strategy and CIP.
A second public meeting was held in February of 2006. The purpose of this meeting was to present the Draft Brownfields Redevelopment Strategy (including draft financial incentive programs and municipal leadership strategy) to the public and key stakeholders so as to obtain their comments. Approximately 50 people attended this public meeting. This public meeting included a workshop where participants were divided into working groups and asked to provide feedback on the proposed incentive programs, strategies and actions contained in the Draft Brownfield Redevelopment Strategy. Based on the input received at this public meeting, comment sheets submitted by members of the public after the public meeting, and comments provided by City of Ottawa staff, the Draft Brownfields Redevelopment Strategy and CIP were finalized.
3.4 Ottawa Brownfields Advisory Committee
The City of Ottawa established an Advisory Committee to
oversee preparation of the Brownfields Redevelopment Strategy and CIP. This
Advisory Committee was comprised of staff from the City of Ottawa, the National
Capital Commission (NCC), the Federal and Provincial governments, as well as
representatives from the private sector and universities, research and other
organizations. Appendix B contains a list of the Advisory Committee members.
The Advisory Committee met regularly and provided input and advice to the
consultant preparing the Brownfields Redevelopment Strategy and CIP.
4.0 COMMUNITY IMPROVEMENT PROJECT AREA
The prevailing trend in municipalities now preparing comprehensive community improvement plans to promote brownfield redevelopment is to designate the entire municipality, or at least the entire urban area, as the community improvement project area to which the community improvement plan will apply.
To obtain a better sense of the geographic distribution of potentially contaminated properties in Ottawa, a review of the City’s Historical Land Use Inventory (HLUI) was performed to determine the geographic distribution of potentially contaminated sites. Two maps showing the geographic distribution of sites in the HLUI were produced (one for the urban area and one for the rural area).
A review of the mapping indicates that the large majority of potentially contaminated sites lie within the urban area and these sites are scattered throughout the urban area. The pattern of distribution of potentially contaminated sites in the rural area is also dispersed. However, the Official Plan directs growth in the rural area to the 26 designated villages scattered throughout the rural area. Overlaying the boundaries of the 26 designated villages onto the HLUI mapping showed that all but a few of the City’s villages contained several potentially contaminated properties. Therefore, the Community Improvement Project Area for this CIP, which will be known as the Ottawa Brownfields Redevelopment Community Improvement Project Area, is “the area within the “Urban Area Boundary” as designated in the City of Ottawa Official Plan (2003), as amended from time to time, and the areas designated “Village” in the City of Ottawa Official Plan (2003), as amended from time to time”. The Community Improvement Project Area is properly defined by this text reference. The boundary of the Community Improvement Project Area as shown in Appendix C is provided for illustrative purposes only.
5.0 GOALS
The main goal of this
CIP is to promote the remediation, rehabilitation, adaptive re-use,
redevelopment and overall improvement of brownfield sites in the urban area and
designated villages in the City of Ottawa. In order to help achieve the growth
management goals identified by the City of Ottawa in its Official Plan, this
CIP gives higher priority to promoting brownfield redevelopment in the Central
Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or
planned rapid transit stations.
Other goals of this Brownfields Redevelopment CIP include:
i) Promoting Smart Growth, including the reduction of urban sprawl and its related costs, and the construction of energy efficient buildings;
ii) Improving the physical and visual quality of brownfield sites and the urban area;
iii) Improving environmental health and public safety;
iv) Retaining and increasing employment opportunities;
v) Increasing tax assessment and property tax revenues for the City of Ottawa and the Province of Ontario; and,
vi) Utilizing public sector investment to leverage significant private sector investment in brownfield remediation, rehabilitation, adaptive re-use, and redevelopment.
6.0 INCENTIVE PROGRAMS
6.1 Introduction
In order to achieve the
brownfield redevelopment goals of this CIP, the impediments to brownfield
redevelopment in Ottawa must be overcome. The incentive programs contained in
this CIP represent a comprehensive framework containing a tool kit of programs
that taken together, are designed to help overcome the impediments to
brownfield redevelopment in Ottawa and achieve the goals outlined in Section
5.0 of this CIP.
The incentive programs
contained in this CIP can be used individually or together by an applicant, but
the total of all grants, loans and tax assistance provided in respect of the
particular lands and buildings of an applicant under the programs contained in
this CIP shall not exceed the cost of rehabilitating said lands and buildings.
The financial incentive programs in this CIP are primarily directed at the
private sector and are designed to encourage private sector remediation and
rehabilitation, adaptive reuse and construction activity on brownfield sites.
Based on the growth
management rationale identified by the City in its Official Plan, greater
incentive program benefits are generally available for applications on
brownfield sites in the Central Area, Mixed Use Centres, along Mainstreets and
within 600 metres of existing or planned rapid transit stations. This CIP
contains the following incentive programs:
a) Project Feasibility
Study Grant Program;
b) Environmental Site
Assessment Grant Program;
c) Property Tax Assistance
Program;
d) Rehabilitation Grant
Program; and,
e) Building Permit Fee
Grant Program.
The Development Charge
Reduction Program (Brownfields) is an existing Council program and does not
form part of this CIP.
A summary of the
incentive programs is shown in Figure 3. Appendix C displays a typical
development scenario on a brownfield site and when the various incentive
programs could be utilized.
The purpose, type,
duration, eligibility criteria and application requirements for each of the
financial incentive programs is described in detail below. The financial
incentive programs will be augmented and complemented by a proactive Municipal
Leadership Strategy and a Marketing Strategy.
Figure
3 Summary of Incentive Programs
Program |
Location of Property |
|
|
In Central Area, Mixed Use Centres,
along Mainstreets or within 600 metres of existing/ planned rapid transit
stations |
Not in Central Area, Mixed Use Centres,
along Mainstreets or within 600 metres of existing/planned rapid transit
stations |
Project Feasibility
Study Grant Program |
Grant equivalent to
50% of the cost of an eligible project feasibility study. Maximum grant of
$5,000. Maximum one study per
property. |
Grant equivalent to
50% of the cost of an eligible project feasibility study. Maximum grant of
$5,000. Maximum one study per
property |
Environmental Site
Assessment Grant Program |
Grant equivalent to
50% of the cost of an eligible environmental site assessment, remedial action
plan or risk assessment. Maximum grant of
$15,000 per study. Maximum of 2 studies
per property/project. Maximum total grant of
$25,000 per property/project. |
Grant equivalent to
50% of the cost of an eligible environmental site assessment, remedial action
plan or risk assessment. Maximum grant of
$15,000 per study. Maximum of 2 studies
per property/project. Maximum total grant of
$25,000 per property/project. |
Property Tax
Assistance Program |
Cancellation of the
municipal property tax increase for up to 5 years. Cancellation of the
education property tax increase for up to 3 years[3]. |
Cancellation of the municipal
property tax increase for up to 3 years. Cancellation of the
education property tax increase for up to 3 years3. |
Rehabilitation Grant Program |
Grant equivalent to
70% of the municipal property tax increase for up to 10 years |
Grant equivalent to 70%
of the municipal property tax increase for up to 5 years |
Building Permit Fee
Grant Program |
Grant equivalent to
30% of building permit fee |
Not available |
Development Charge
Reduction Program (Brownfields)[4]
|
Up to 100% reduction
of development charge payable |
Up to 50% reduction of
development charge payable |
6.2 General
Program Requirements
The
general and program specific requirements contained in this CIP are not
necessarily exhaustive and the City reserves the right to include other
requirements and conditions as deemed necessary on a property specific basis.
All of the financial incentive programs contained in this CIP are subject to
the following general requirements as well as the individual requirements
specified under each program.
a)
The
City reserves the right to audit the cost of project feasibility studies,
environmental studies, environmental remediation works, and/or rehabilitation
works that have been approved under any of the financial incentive programs, at
the expense of the applicant;
b)
The
City is not responsible for any costs incurred by an applicant in relation to
any of the programs, including without limitation, costs incurred in
anticipation of a grant and/or tax assistance;
c)
If
the applicant is in default of any of the general or program specific
requirements, or any other requirements of the City, the City may delay, reduce
or cancel the approved grant and/or tax assistance;
d)
The
City may discontinue any of the programs at any time, but applicants with
approved grants and/or tax assistance will still receive said grant and/or tax
assistance, subject to meeting the general and program specific requirements;
e)
All
proposed works approved under the incentive programs and associated
improvements to buildings and/or land shall conform to all municipal by-laws,
policies, procedures, standards and guidelines, including applicable Official
Plan and zoning requirements and approvals;
f)
The
improvements made to buildings and/or land shall be made pursuant to a Building
Permit, and/or other required permits, and constructed in accordance with the
Ontario Building Code;
g)
Outstanding
work orders, and/or orders or requests to comply, and/or other charges from the
City (including tax arrears) must be satisfactorily addressed prior to grant
and/or tax assistance payment;
h)
City
staff, officials, and/or agents of the City may inspect any property that is
the subject of an application for any of the financial incentive programs
offered by the City; and,
The total of all grants,
loans and tax assistance provided in respect of the particular lands and
buildings of an applicant under the programs contained in this CIP shall not
exceed the cost of rehabilitating said lands and buildings.
6.3 Project Feasibility Study Grant Program
The purpose of the
Project Feasibility Study Grant Program is to promote the undertaking of
feasibility studies so that potential investors can obtain more and better
information with respect to the costs of reusing, rehabilitating and retrofitting
brownfield buildings and lands.
The Project Feasibility
Study Grant Program will provide a matching grant of 50% of the cost of an
eligible feasibility study to a maximum grant of $5,000 with a maximum of one
study per property. Eligible feasibility studies include but are not limited
to:
a) structural
analyses;
b) evaluation
of mechanical and electrical systems;
c) concept
plans;
d) market
analyses; and,
e) any
other feasibility study as approved by the City.
Review and evaluation of
an application and supporting materials against program eligibility
requirements will be done by City staff and a decision on the grant application
will be made by City staff, subject to delegation of this approval authority
from Council. Applications will be processed and approved on a first come,
first serve basis, subject to availability of funding as approved by Council.
Grants approved under
this program would be provided to applicants following submission to the City
for review of the final completed study with the original invoice, indicating
that the study consultants have been paid in full. The grant will be paid on the lesser of a cost estimate provided
by the consultant conducting the study or the actual cost of the study. The
grant may be reduced or cancelled if the study is not completed, not completed
as approved, or if the consultant(s) that conducted the study are not
paid. The applicant will agree to
provide the City with permission to provide the study to subsequent owners and
interested parties, should the applicant decide not to proceed with reuse,
rehabilitation or retrofitting of the site.
The Project Feasibility
Study Grant Program will commence on or after the date of approval of this Plan
by the Minister of Municipal Affairs and Housing and will be offered for an
initial period of five years, with an option to extend the program for up to
another five years, subject to the availability of funding as approved by City
Council.
Applicants are eligible
to apply for funding under this program, subject to meeting the general program
requirements, the following program requirements, and subject to the
availability of funding as approved by Council:
a)
A grant application must be submitted to
the City prior to the start of any feasibility study to which the grant will
apply;
b)
If the applicant is not the owner of the
property, the applicant must provide written consent from the owner of the
property to make the application and conduct the study;
c)
Feasibility studies shall be for the
purpose of:
i)
structural analyses;
ii)
evaluation of mechanical and electrical
systems;
iii)
concept plans;
iv)
market analyses; and
v)
any other feasibility study as approved
by the City;
d)
Applications will include:
i) a detailed study
work plan;
ii) a cost estimate
for the study; and
iii) a description
of the planned redevelopment, including any planning applications that have
been submitted/approved;
e) All completed feasibility studies must comply with the description of
the studies as provided in the grant application form;
f)
One electronic and one hard copy of the
study findings shall be submitted to the City for the City’s review and
retention.
6.3.4 Administration
Guidelines for the
administration of this program are attached in Appendix E. Appendix E does not
form part of this Plan. The Guidelines for administration of this program may
be changed from time to time, as required, without amendment to this Plan.
6.4 Environmental Site Assessment Grant Program
6.4.1 Purpose
The purpose of the
Environmental Site Assessment Grant Program is to promote the undertaking of
environmental studies so that more and better information is available with
respect to the type of contamination and potential remediation costs on
brownfield properties.
A Phase I Environmental
Site Assessment (ESA) has become a standard requirement of most financial
institutions. A Phase I ESA does not provide detailed information with respect
to the type of contamination and cost of remediation. Therefore, Phase I ESA’s
are not eligible for funding under this program. To be eligible to apply for the Environmental Site Assessment
Grant Program, a Phase I ESA must have been completed on the property and must
show that the property is suspected of environmental contamination.
The Environmental Site
Assessment Grant Program will provide a matching grant of 50% of the cost of an
eligible environmental study to a maximum grant of:
a) $15,000
per study;
b) two
studies per property/project, and;
c) $25,000
per property/project.
Eligible environmental
studies include a Phase II ESA, Remedial Work Plan, and a Risk Assessment.
Environmental site assessment grants will only be offered on eligible
properties where there is potential for rehabilitation and/or redevelopment of
the property.
Review and evaluation of
an application and supporting materials against program eligibility
requirements will be done by City staff and a decision on the grant application
will be made by City staff, subject to delegation of this approval authority
from Council. Applications will be processed and approved on a first come,
first serve basis, subject to availability of funding as approved by Council.
Grants approved under
this program would be provided to applicants following submission to the City
for review of the final completed study with the original invoice, indicating
that the study consultants have been paid in full. The grant will be paid on the lesser of a cost estimate provided
by the qualified person (consultant) conducting the study or the actual cost of
the study. The grant may be reduced or cancelled if the study is not completed,
not completed as approved, or if the consultant(s) that conducted the study are
not paid.
The applicant will agree
to provide the City with permission to notify any other subsequent project
proponents of the existence of an environmental study or studies.
The Environmental Site
Assessment Grant Program will commence on or after the date of approval of this
Plan by the Minister of Municipal Affairs and Housing and will be offered for
an initial period of five years, with an option to extend the program for up to
another five years, subject to the availability of funding as approved by City
Council.
Applicants are eligible
to apply for funding under this program, subject to meeting the general program
requirements, the following program requirements, and subject to the
availability of funding as approved by City Council:
a)
A grant application must be submitted to
the City prior to the start of any environmental study to which the grant will
apply;
b)
If the applicant is not the owner of the
property, the applicant must provide written consent from the owner of the
property to make the application and conduct the study;
c)
Environmental studies shall be for the
purpose of:
i)
confirming and describing contamination
at the site (partial or complete Phase II ESA);
ii)
developing a plan to remove, treat, or
otherwise manage contamination found on the site (Remedial Work Plan/Risk
Assessment);
d)
Applicants must complete and submit to
the City for review a Phase I ESA that demonstrates that site contamination is
likely;
e)
Applications will include:
i)
a detailed study work plan;
ii)
a cost estimate for the study; and,
iii)
a description of the planned
redevelopment, including any planning applications that have been
submitted/approved;
f)
All environmental studies shall be
completed by a “qualified person” as defined by Ontario Regulation 153/04;
g)
All completed environmental studies must
comply with the description of the studies as provided in the grant application
form;
h)
One hard copy of the study findings shall
be supplied to the City for review.
6.4.4 Administration
Guidelines for the
administration of this program are attached in Appendix F. Appendix F does not
form part of this Plan. The Guidelines for administration of this program may
be changed from time to time, as required, without amendment to this Plan.
6.5 Property Tax Assistance Program
6.5.1 Purpose
The purpose of the
Property Tax Assistance Program is to encourage the remediation and
rehabilitation of brownfield sites by providing a cancellation of the property
tax increase on a property that is undergoing or has undergone remediation and
development to assist with payments of the costs of environmental remediation.
This program applies only to properties requiring environmental remediation
and/or risk assessment/management.
6.5.2 Description
The legislative
authority for the Property Tax Assistance Program is established under Section
365.1 (2) of the Municipal Act, 2001 which allows municipalities to pass
a by-law providing tax assistance to an eligible property in the form of
cancellation of all or a portion of the taxes levied on that property for
municipal and education purposes during the “rehabilitation period” (maximum 18
months from the date that tax assistance begins) and the “development period” of
the property, as defined in Section 365.1 of the Municipal Act, 2001.
Matching education property tax assistance for eligible properties under the
provincial Brownfields Financial Tax Incentive Program (BFTIP), or through any
other replacement programs administered by the Ministry of Finance, is subject
to approval of the Minister of Finance on a case-by-case basis.
An “eligible property”
for the Property Tax Assistance Program is a property within the community
improvement project area where a Phase II Environmental Site Assessment (ESA)
has been conducted, and that as of the date the Phase II ESA was completed, did
not meet the required standards under subparagraph 4i of Section 168.4(1) of
the Environmental Protection Act to permit a Record of Site Condition
(RSC) to be filed in the Environmental Site Registry.
“Eligible costs” for the
Property Tax Assistance Program are the costs of any action taken to reduce the
concentration of contaminants on, in or under the property to permit a record
of site condition (RSC) to be filed in the Environmental Site Registry under
Section 168.4 of the Environmental Protection Act. This includes the costs of:
a)
Phase II ESAs, Remedial Work Plans, and
Risk Assessments not covered by the Environmental Site Assessment Grant
Program;
b)
environmental remediation, including the
costs of preparing a RSC;
c)
placing clean fill and grading;
d)
installing environmental and/or
engineering controls/works as specified in the Remedial Work Plan and/or Risk
Assessment;
e)
monitoring, maintaining and operating
environmental and engineering controls/works, as specified in the Remedial Work
Plan and/or Risk Assessment;
f)
environmental
insurance premiums.
In no case will the
total amount of tax assistance provided under the Property Tax Assistance
Program exceed the total of these eligible costs.
The municipal property
tax assistance provided will cease:
a)
when
the total tax assistance provided equals the total eligible costs as specified
above; or,
b)
after
five years, whichever comes first.
The matching education
property tax assistance will cease:
a) when the total tax assistance provided
equals the total eligible costs as specified above; or,
b) after such time period as is approved
by the Minister of Finance[5],
whichever comes first.
Based on the growth
management rationale outlined in the City’s Official Plan, applications for
property tax assistance in the Central Area, Mixed Use Centres, along
Mainstreets and within 600 metres of existing or planned rapid transit stations
will be eligible for cancellation of the municipal property tax increase for up
to five years and cancellation of the education property tax increase for up to
the time period as approved by the Minister of Finance. Applications for sites
outside these priority areas will be eligible for cancellation of the municipal
property tax increase and the education property tax increase for up to three
years.
The matching education
property tax assistance is subject to approval by the Minister of Finance. The matching education property tax
assistance may be provided on a different schedule from the municipal property
tax assistance provided by the City and may be subject to additional
conditions. The City may continue to offer municipal property tax assistance
beyond the period for which the Minister of Finance agrees to offer education
property tax assistance.
The property will be
subject to passing of a by-law by the City that authorizes the provision of the
tax assistance. This by-law will contain conditions required by the City as
well as conditions required by the Minister of Finance. In order for the by-law
to apply to education property taxes, before it is passed by the City, the
by-law must be approved in writing by the Minister of Finance.
Applications will be
processed and approved on a first come, first serve basis, subject to
availability of funding as approved by Council. Review and evaluation of an
application and supporting materials against program eligibility requirements
will be done by City staff who will then make a recommendation to City Council.
The application is subject to approval by City Council. As a condition of approval of an application
for Property Tax Assistance, the property owner must enter into an agreement
with the City. This Agreement will
specify the terms, duration and default provisions of the property tax
assistance. This Agreement is also
subject to approval by City Council.
The Property Tax
Assistance Program will commence on or after the date of approval of this Plan
by the Minister of Municipal Affairs and Housing and will be offered for an
initial period of five years, with an option to extend the program for up to
another five years, subject to the availability of funding as approved by City
Council and the Minister of Finance.
Only owners of property
within the community improvement project area are eligible to apply for funding
under this program, subject to meeting the general program requirements, the
following program requirements, and subject to availability of funding as approved
by City Council and the Minister of Finance:
a)
An application for property tax
assistance must be submitted to the City prior to the start of any remediation
works to which the tax assistance will apply;
b)
The application must be accompanied by a
Phase II ESA prepared by a qualified person that shows that the property does
not meet the standards under subparagraph 4i of Section 168.4(1) of the Environmental
Protection Act to permit a Record of Site Condition (RSC) to be filed in
the Environmental Site Registry;
c)
The application must be accompanied by a
Phase II ESA, Remedial Work Plan or Risk Assessment prepared by a qualified
person that contains:
i)
an estimate of the cost of actions that
will be required to reduce the concentration of contaminants on, in or under
the property to permit a record of site condition (RSC) to be filed in the
Environmental Site Registry under Section 168.4 of the Environmental
Protection Act; and
ii)
a work plan and budget for said
environmental remediation and/or risk management actions;
d)
As a condition of the application, the
City may require the applicant to submit a Business Plan for redevelopment of
the property (as applicable), with said Plan to the City’s satisfaction;
e)
The property shall be rehabilitated such
that the work undertaken is sufficient to at a minimum result in an increase in
the assessed value of the property;
f)
The total value of the property tax
assistance provided under this program shall not exceed total eligible
costs. This includes the eligible costs
of:
i)
Phase II ESAs, Remedial Work Plans, and
Risk Assessment not covered by the Environmental Site Assessment Grant Program;
ii)
environmental remediation, including the
costs of preparing a RSC;
iii)
placing clean fill and grading;
iv)
installing environmental and/or
engineering controls/works as specified in the Remedial Work Plan and/or Risk
Assessment;
v)
monitoring, maintaining and operating
environmental and engineering controls/works, as specified in the Remedial Work
Plan and/or Risk Assessment;
vi)
environmental
insurance premiums;
g)
All property owners participating in this
program will be required to enter into an agreement with the City that will
specify the terms, duration and default provisions of the tax assistance;
h)
All Property Tax Assistance Program
applications and agreements must be approved by Council;
i)
Should the owner of the property default
on any of the conditions in the by-law, the tax assistance provided (plus
interest) will become payable to the City and the Province;
j)
The owner shall file in the Environmental
Site Registry a RSC for the property signed by a qualified person, and the
owner shall submit to the City proof that the RSC has been acknowledged by the
Ministry of Environment (MOE).
6.5.4 Administration
Guidelines for the administration of this program are
attached in Appendix G. Appendix G does not form part of this Plan. The
Guidelines for administration of this program may be changed from time to time,
as required, without amendment to this Plan.
6.6 Rehabilitation Grant Program
The purpose of the
Brownfields Rehabilitation Grant Program is to encourage the remediation,
rehabilitation and adaptive re-use of brownfield sites by providing grants to
help pay for additional rehabilitation costs normally associated with
brownfield sites.
6.6.2 Description
The Rehabilitation Grant
Program will provide a financial incentive in the form of an annual grant for
up to ten years to help offset the cost of rehabilitating eligible brownfield
properties only where that rehabilitation results in an increase in assessment
value and property taxes on these properties.
An application can be made for the Rehabilitation Grant Program or the
Property Tax Assistance Program, or both programs together. The annual grant
available under the Rehabilitation Grant Program can be paid only once final
building inspection has taken place, reassessment of the property has taken place,
and the property owner has paid the property taxes in full for the year in
which the grant is to be provided. If an application for both the
Rehabilitation Grant Program and the Property Tax Assistance Program has been
approved, the annual grant available under the Rehabilitation Grant Program
will begin when the benefits of the Property Tax Assistance Program end.
“Eligible costs” for the
Rehabilitation Grant Program include the costs of:
a) Phase II ESAs, Remedial Work Plans, and Risk Assessments not covered by the Environmental Site Assessment Grant Program or the Property Tax Assistance Program;
b) environmental remediation, including the costs of preparing a RSC, not covered by the Property Tax Assistance Program;
c) placing clean fill and grading not covered by the Property Tax Assistance Program;
d) installing environmental and/or engineering controls/works, as specified in the Remedial Work Plan and/or Risk Assessment, not covered by the Property Tax Assistance Program;
e) monitoring, maintaining and operating environmental and engineering controls/works, as specified in the Remedial Work Plan and/or Risk Assessment, not covered by the Property Tax Assistance Program;
f) environmental insurance premiums not covered by the Property Tax Assistance Program;
g) the following Leadership in Energy and Environmental Design (LEED) Program Components:
i) base plan review by a certified LEED consultant;
ii) preparing new working drawings to the LEED standard;
iii) submitting and administering the constructed element testing and certification used to determine the LEED designation;
h) demolishing buildings;
i) building rehabilitation and retrofit works;
j) upgrading on-site infrastructure including water services, sanitary sewers and stormwater management facilities;
k) constructing/upgrading off-site infrastructure including roads, water services, sanitary sewers, stormwater management facilities, electrical and gas utilities, where this is required to permit remediation, rehabilitation and/or adaptive reuse of the property that is subject of the application.
In no case will the
total amount of the grant provided under the Rehabilitation Grant Program
exceed the total of these eligible costs.
The annual grant
available under the Rehabilitation Grant Program will be offered as a
tax-increment based grant on a “pay-as-you go” basis. The applicant will
initially pay for the entire costs of rehabilitation. When the City receives the incremental property taxes that result
from the rehabilitation project, the City will reimburse the applicant in the
form of an annual grant equivalent to 70% of the increase in municipal taxes
that results from the project for a period of up to ten years, or up to the time
when total grant payments equal total eligible costs, whichever comes first.
Based on the growth
management rationale in the City’s Official Plan, applications for sites in the
Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of
existing or planned rapid transit stations will be eligible for annual grant
payments for up to ten years.
Applications for sites outside these priority areas will be eligible for grant
payments for up to five (5) years.
Applications will be
processed and approved on a first come, first serve basis, subject to
availability of funding as approved by Council. Review and evaluation of an application and supporting materials
against program eligibility requirements will be done by City staff who will then
make a recommendation to City Council. The application is subject to approval
by City Council. As a condition of
approval of an application for a Rehabilitation Grant, the applicant must enter
into an agreement with the City. This
Agreement will specify the terms, duration and default provisions of the
grant. This Agreement is also subject
to approval by City Council.
The amount of municipal
taxes (“base rate”) will be determined before commencement of the project. The increase in municipal property taxes (or
“municipal tax increment”) will be calculated as the difference between the
base rate and the amount of municipal taxes levied as a result of re-valuation
by the Municipal Property Assessment Corporation (MPAC) following project
completion. The amount of the grant will be recalculated every year based on
the municipal taxes levied and the municipal tax increment every year.
The Rehabilitation Grant
Program will commence on or after the date of approval of this Plan by the
Minister of Municipal Affairs and Housing and will be offered for a period of
ten years, subject to the availability of funding as approved by City Council.
Applicants are eligible
to apply for funding under this program, subject to meeting the general program
requirements, the following program requirements, and subject to the
availability of funding as approved by City Council:
a)
A grant application must be submitted to
the City prior to the start of any rehabilitation works to which the grant will
apply;
b)
Such application shall include reports,
plans, estimates, contracts and other details as may be required to satisfy the
City with respect to the eligible costs and conformity of the project with the
CIP;
c)
If the application includes costs for
environmental remediation, the application must be accompanied by a Phase II
ESA, Remedial Work Plan or Risk Assessment Plan prepared by a qualified person
that contains:
i)
an estimate of the cost of actions that
will be required to reduce the concentration of contaminants on, in or under
the property to permit a record of site condition (RSC) to be filed in the
Environmental Site Registry under Section 168.4 of the Environmental Protection
Act; and
ii)
a work plan and budget for said
environmental remediation, and/or risk management actions;
d)
As a condition of the grant application,
the City may require the applicant to submit a Business Plan, with said Plan to
the City’s satisfaction;
e) The property shall be
rehabilitated such that the amount of work undertaken is sufficient to at a
minimum result in an increase in the assessed value of the property;
f)
The total value of the grant provided
under this program shall not exceed total eligible costs. This includes the
costs of:
i) Phase II ESAs, Remedial Work Plans, and Risk Assessments not covered by the Environmental Site Assessment Grant Program or the Property Tax Assistance Program;
ii) environmental remediation, including the costs of preparing a RSC, not covered by the Property Tax Assistance Program;
iii) placing clean fill and grading not covered by the Property Tax Assistance Program;
iv) installing environmental and/or engineering controls/works, as specified in the Remedial Work Plan and/or Risk Assessment, not covered by the Property Tax Assistance Program;
v) monitoring, maintaining and operating environmental and engineering controls/works, as specified in the Remedial Work Plan and/or Risk Assessment, not covered by the Property Tax Assistance Program;
vi) environmental insurance premiums not covered by the Property Tax Assistance Program;
vii) the following Leadership in Energy and Environmental Design (LEED) Program Components:
i) base plan review by a certified LEED consultant;
ii) preparing new working drawings to the LEED standard;
iii) submitting and administering the constructed element testing and certification used to determine the LEED designation;
viii) demolishing buildings;
ix) building rehabilitation and retrofit works;
x) upgrading on-site infrastructure, including water services, sanitary sewers and stormwater management facilities;
xi) constructing/upgrading off-site infrastructure including roads, water services, sanitary sewers, stormwater management facilities, electrical and gas utilities, where this is required to permit remediation, rehabilitation and/or adaptive reuse of the property that is subject of the application.
g)All applicants participating in this
program will be required to enter into an agreement with the City which will
specify the terms of the grant;
h)
All Rehabilitation Grant Program
applications and agreements must be approved by City Council or City Council’s
designate;
i)
If a building(s) erected on a property
participating in this program is demolished before the grant period expires,
the remainder of the monies to be paid out under the grant shall be forfeited;
j)
The owner shall file in the Environmental
Site Registry a RSC for the property signed by a qualified person, and the
owner shall submit to the City proof that the RSC has been acknowledged by the
Ministry of Environment (MOE). This condition applies even if the owner is
applying only for non-environmental costs (items f)viii-xi above).
6.6.4 Administration
Guidelines for the
administration of this program are attached in Appendix H. Appendix H does not
form part of this Plan. The Guidelines for administration of this program may
be changed from time to time, as required, without amendment to this Plan.
6.7 Building Permit Fee Grant Program
6.7.1 Purpose
The purpose of the Building Permit Fee Grant Program is to provide an additional incentive to augment the other brownfield redevelopment incentive programs and to facilitate and spur adaptive re-use and new construction activity on former brownfield sites in high priority areas.
6.7.2 Description
For properties in the Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or planned rapid transit stations that have been approved for Property Tax Assistance and/or the Rehabilitation Grant Program, the Building Permit Fee Grant Program will provide a grant equivalent to 30% of the building permit fee payable.
A separate application will not be required for the Building Permit Fee Grant Program. Applicants who have an approved Property Tax Assistance and/or the Rehabilitation Grant Program application will notify the Building Services Branch of this at the time of application for building permit application.
Once a building permit has been issued, building construction is complete, and the applicant has met all the terms of their approved Property Tax Assistance and/or the Rehabilitation Grant Program agreement, the City will provide a grant equivalent to 30% of building permit fees paid.
The Building Permit Fee
Grant Programs will commence on or after the date of approval of this Plan by
the Minister of Municipal Affairs and Housing and will be offered for an
initial period of five years, with an option to extend the program for up to another
five years, subject to the availability of funding as approved by City Council.
7.0 DEVELOPMENT CHARGE REDUCTION PROGRAM (BROWNFIELDS)
Note: This section does not form part of this CIP. The Development Charge Reduction Program is an existing program of Council. The Guidelines for the Development Charge Reduction Program (Brownfields) have been forwarded to Council separately. What appears below is a summary of these guidelines and is presented for information purposes only.
7.1 Purpose
The purpose of the
Development Charge Reduction Program is to encourage the remediation,
rehabilitation and adaptive re-use of brownfield sites by providing a reduction
in development charges that would normally be paid at the time that a building
permit is issued. This reduction would
help to pay for the environmental investigation and remediation costs normally
associated with brownfield sites.
7.2 Background
City Council approved a new Development Charges By-law, under the Development Charges Act, in July of 2004. This By-law includes a number of exemptions to help support the City’s growth management goals, including where authorized by Council resolution, on a base by case basis, an exemption of development charges for development on contaminated lands (brownfield) -Section 7(t) of By-law 298-2004. The ability to reduce development charges on contaminated sites will support this CIP and will help to achieve the City’s growth management objectives. The integration of the Development Charge Reduction Program for brownfields and the Rehabilitation Grant Program contained in this CIP is described below.
7.3 Description
The key terms used below are defined as per Section 1.4 (Glossary of Terms).
The Development Charge Reduction Program for brownfields will be fully integrated with the Rehabilitation Grant Program. Therefore, once this CIP is approved by the Minister of Municipal Affairs and Housing, an application for a reduction in development charges due to site contamination (brownfields) will require that an application for a Rehabilitation Grant be made. All of the General Program Requirements (Section 6.2) and Rehabilitation Grant Program Requirements (Section 6.6.3) listed in this CIP must be met. Therefore, applicants with an approved application and agreement for a property under the Rehabilitation Grant Program would have the option of reducing their development charges payable at the time of building permit issuance by up to the full amount of their eligible environmental remediation/risk management and LEED program component costs[6] which are as described in Section 6.6.3, items f) i –vii of this CIP.
In order to achieve the City’s Growth Management goals, the reduction in the development charges due to site contamination is greater for eligible properties that are located in the Central Area, Mixed Use Centres, and Mainstreets and within 600 metres of existing or planned rapid transit stations, as designated in the City’s Official Plan, as amended from time to time. The maximum amount of reduction of development charges is up to (100%) of the eligible environmental remediation/risk management and LEED program component costs in the priority areas for infill and intensification as noted above, and up to a 50% reduction in eligible costs outside of these priority areas, but within the Community Improvement Project Area.
After September 5, 2006 and prior to approval of this Brownfields Redevelopment CIP, a direct application can be made for the Development Charge Reduction Program (brownfields) pursuant to this Guideline and all of the General Program requirements and Rehabilitation Grant Program specific requirements listed in this CIP must be met.
Applications received prior to September 5, 2006 must be “eligible property” and must meet all of the General Program Requirements and the Specific Program Requirement items listed in this Guideline. Such applications may only recover “eligible costs”.
Review and evaluation of an application for Development Charge Reduction Program (brownfields) and supporting materials against program eligibility requirements will be done by City staff who will then prepare a recommendation report to City Council. The application is subject to approval by resolution of City Council. Any approved reduction in the development charge would be applied at the time that the building permit is issued.
An “eligible property”
for the Development Charge Reduction Program is a property within the community
improvement project area where a Phase II Environmental Site Assessment (ESA)
has been conducted, and that as of the date the Phase II ESA was completed, did
not meet the required standards under subparagraph 4i of Section 168.4(1) of
the Environmental Protection Act to permit a Record of Site Condition
(RSC) to be filed in the Environmental Site Registry.
“Eligible costs” for the
Development Charge Reduction Program are the costs of any action taken to
reduce the concentration of contaminants on, in or under the property to permit
a record of site condition (RSC) to be filed in the Environmental Site Registry
under Section 168.4 of the Environmental Protection Act. This includes the costs not covered by any
other financial incentive program as described in the CIP:
a)
Phase II ESAs, Remedial Work Plans, and
Risk Assessments;
b)
environmental remediation, including the
costs of preparing a RSC;
c)
placing clean fill and grading;
d)
installing environmental and/or
engineering controls/works as specified in the Remedial Work Plan and/or Risk
Assessment;
e)
monitoring, maintaining and operating
environmental and engineering controls/works, as specified in the Remedial Work
Plan and/or Risk Assessment;
f)
environmental
insurance premiums.
g) the following Leadership in Energy and Environmental Design (LEED) Program Components:
i) base plan review by a certified LEED consultant;
ii) preparing new working drawings to the LEED standard;
iii) submitting and administering the constructed element testing and certification used to determine the LEED designation.
The total of the above-noted costs approved under the Rehabilitation Grant Program would be applied as a credit against the development charge payable up to the maximum allowed depending on the location of the application in the context of the City’s Official Plan / growth management strategy priority areas.
In no case will the total amount of the reduction provided under this program exceed the total of these eligible costs.
7.4 Monitoring
and Review
Council will be reviewing the Development Charges By-law in 2009 as required by the Development Charges Act. The reduction of development charges for brownfields currently in the development charges by-law would be reviewed at that time to determine whether it is still an appropriate financial incentive to encourage brownfields redevelopment. Reporting to Council on the Development Charge Reduction Program would occur annually.
8.0 MUNICIPAL LEADERSHIP STRATEGY
8.1 Purpose
The purpose of the
Municipal Leadership Strategy is to set the framework for the City to:
a)
better communicate and
coordinate activities with other levels of government and the private sector
involved in brownfield redevelopment; and,
b)
provide better support
and leadership on brownfield redevelopment projects.
The public sector actions
contained in the Municipal Leadership Strategy are designed to act as catalysts
to leverage private sector investment on brownfield sites.
8.2 Description
8.2.1 Coordination
The
City will seek to engage other government agencies and Crown corporations (NCC,
CLC, MOE, Public Works Canada) involved in brownfield redevelopment in Ottawa
in discussions to develop a process to better coordinate their activities from
both a regulatory and landowner/developer perspective. The goal of these
discussions would be to foster a process that promotes the elimination of
duplication, enhanced communication flow, planning efficiencies, and a
streamlined environmental regulatory approvals process and planning process.
This
process could be set in motion and formalized in two ways. First, it is
recommended that the various government agencies and Crown corporations
represented on the Advisory Committee, and any other government agencies as
deemed necessary, form a sub-group of the Advisory Committee dedicated to
dealing with issues of government coordination. This Government Coordination
sub-group would meet regularly after the Brownfields Redevelopment Strategy and
CIP have been adopted, approved and are in effect. One of the first tasks of
this sub-group should be to identify areas of possible duplication and
streamlining.
In
addition to the creation of the Government Coordination sub-group, the second
way in which a coordination process can be formalized is for the Government
Coordination sub-group to develop a cooperative Brownfield Coordination
Agreement (BCA). This agreement would:
a)
include a description of the structure
and process for mutual accountability;
b)
clarify responsibilities and roles for
each government agency based on legislation, or where legislation is vague,
based on unique capabilities and resources;
c)
include a commitment to review planning
and regulatory approvals processes to identify and implement efficiencies; and,
d)
outline a formal public consultation
process (including communication tools) to be used for major brownfield
redevelopment projects in Ottawa.
The City will establish
a single point of contact (a brownfields coordinator) for brownfield
information and financial incentives on brownfield sites. The role of this
coordinator will be to administer applications for the financial incentive
applications, coordinate financial incentive applications with planning
applications, and provide guidance and advice to developers and their support
professionals involved in brownfield redevelopment. The coordinator should also
take on the role of facilitator with respect to brownfield redevelopment when
there are planning and/or environmental regulatory issues. This should include
acting as a facilitator with the MOE on regulatory approvals and expediting
City planning and environmental approvals.
8.2.2 Municipal Support and Leadership
As per Sections 28(3) and 28(6) of the Planning
Act, once a Community Improvement Project Area has been designated and a
CIP is approved, a municipality may:
a) acquire, hold, clear, grade or otherwise prepare land for community improvement;
b) construct, repair, rehabilitate or improve buildings on land acquired or held by it in conformity with the community improvement plan; and,
c) sell, lease, or
otherwise dispose of any land and buildings acquired or held by it in
conformity with the community improvement plan.
Therefore, the City may
engage in any of these activities as part of its Brownfields Municipal
Leadership Strategy in order to promote the undertaking of targeted projects
that are identified and approved by the City.
The
Municipal Leadership Strategy is a general program of municipal property
acquisition, investment and involvement in pilot projects with the private
sector to remediate and rehabilitate brownfield sites in Ottawa. Pilot projects
can showcase the use of innovative tools such as alternative approaches to site
remediation and risk management, new environmental remediation technologies,
the use of environmental insurance, and/or energy efficient building
technologies. In this regard, the City will explore opportunities to conduct
pilot projects on one or more of its own sites, e.g., Bayview Yards, or in
partnership with the National Capital Commission (NCC), e.g., on future phases
of the LeBreton Flats, or with Canada Lands Company (CLC).
The City may also issue Requests for
Proposals (RFP’s) on City owned brownfield sites, failed tax sale properties,
and/or participate in public/private partnerships to clean up and redevelop
publicly and privately owned brownfield sites.
The Municipal Leadership
Strategy will be funded from the 30% tax increment that is retained by the City
as a result of properties participating in the Rehabilitation Grant Program,
and any initial seed funding allocated by Council. The City may then use these
funds to:
a)
conduct environmental
site assessments on municipally-owned properties that are potentially
contaminated;
b)
conduct environmental
site assessments on properties controlled or acquired through the tax arrears
sales process and conduct requests for proposals (RFPs) on failed tax sale
brownfield properties;
c)
remediate,
rehabilitate, reuse and improve municipally-owned brownfield properties,
including undertaking or participating in pilot projects to showcase innovative
remediation approaches and technologies, the use of tools such as environmental
insurance, and innovative energy efficiency technologies;
d)
acquire and remediate,
rehabilitate, reuse and improve key privately-owned brownfield sites;
e)
fund brownfield pilot
projects (public-private partnerships) to remediate, rehabilitate, reuse and
improve redevelop privately and publicly owned brownfield properties;
f)
educate and inform the
public about the importance of brownfield redevelopment; and,
g)
implement a Marketing
Strategy to regularly market the City’s incentive programs and brownfield
redevelopment opportunities available in Ottawa to brownfield market makers
such as property owners, developers, potential end users, and support professionals
both within and outside the city.
Any initial seed funding
and the 30% tax increment that is retained by the City as a result of
properties participating in the Rehabilitation Grant Program will be placed
into a Municipal Leadership Account. This account will function as a revolving
fund. The allocation of the 30% tax
increment to the Municipal Leadership Account will end when the Rehabilitation
Grant Program ends. At that time, the
City may return funds remaining in the Municipal Leadership Account to general
revenues or continue to utilize these funds for leadership activities until the
Municipal Leadership Account is exhausted.
The Municipal Brownfield Leadership
Strategy will also provide funding to allow the City to access brownfield
feasibility study and remediation funding available from the Federation of
Canadian Municipalities (FCM) Green Municipal Funds (GMF). Any municipal
government in Canada or its private or public sector partners can apply for
funding from the GMF. The City of Ottawa was successful in obtaining a grant
from FCM for the preparation of this Strategy and the Brownfields Redevelopment
CIP. An appropriately funded Municipal Leadership Strategy will allow the City
the financial means to leverage FCM funding to help implement this Strategy.
8.3
Guideline for
Identifying Priority Brownfield Sites and Projects
When identifying and evaluating sites for acquisition, partnering or any of the other municipal leadership actions described in this Plan, the City should be strategic in its approach. Therefore, the City will utilize the following criteria when evaluating and selecting sites and projects for purposes of the Municipal Leadership Strategy:
a) The property is located in one of the high priority areas for infill and intensification identified in the Official Plan;
b) The site has a good or excellent location with high visibility and accessibility to major transportation routes;
c) The site is commercially viable and marketable;
d) The site is a “stigmatized” site, the cleanup and redevelopment of which will likely act as a catalyst for community improvement of the neighbourhood or employment area in which the site is located;
e) The site is designated under the Ontario Heritage Act or exhibits significant heritage and architectural characteristics;
f) The site is surrounded in whole or in part by residential or other sensitive land uses;
g) The site could be a “destination” site drawing large numbers of visitors/shoppers/diners and this would promote additional revitalization in the area where the site is located;
h) The proposed project will result in the leveraging of significant private sector investment resulting in a significant increase in property tax revenues, employment and/or residential opportunities;
i) The proposed project will showcase innovative remediation approaches, technologies, risk assessment approaches and/or Smart Growth design and building principles.
Note that a site or project does not need to meet all of these criteria to be considered eligible for acquisition, partnering or any of the other municipal leadership actions described in this Plan.
9.0 MARKETING STRATEGY
9.1 Purpose
The incentive programs in this CIP are
designed to make brownfield redevelopment opportunities in Ottawa much more
attractive. Therefore, it is important to the successful implementation of this
CIP that these incentive programs and brownfield redevelopment opportunities
available in Ottawa be effectively communicated to property owners, developers,
potential end users, and support professionals both within and outside the
city. The purpose of this Marketing Strategy is to proactively and regularly
advertise and market the City’s brownfield redevelopment incentive programs and
publicly and privately owned brownfield redevelopment opportunities in order to
help implement the Brownfields Redevelopment Strategy and CIP.
9.2 Description
The City will implement a comprehensive Marketing Strategy to market its brownfield redevelopment incentive programs and brownfield redevelopment opportunities, provide information on obtaining assistance and advice, and educate the public and other stakeholders (including governmental bodies) on environmental site assessment and remediation processes. This marketing program will include an internal communications component to educate City staff on the benefits of brownfield redevelopment, the City’s Brownfields Redevelopment Strategy and CIP, and how it will affect departmental operations and decision-making. This marketing program will also include the development of a brochure that describes the City’s brownfield redevelopment incentive programs and information on the City’s web site.
9.2.1 Target Audiences
The Marketing Strategy will be targeted
to:
a) Brownfield
market makers, i.e., the key stakeholders who cause brownfield properties to be transacted, remediated and
rehabilitated, including:
i) owners/managers of brownfield
properties in Ottawa;
ii) potential developers of brownfield
properties; and,
iii) potential end users;
b) Support
professionals, including:
i) lending institutions such as banks and
trust companies;
ii) real estate professionals and
organizations;
iii) environmental consultants and
contractors;
iv) legal services industry;
v) planning consultants and architects;
c) The general public, in order to enhance support for the Strategy and
site-specific brownfield redevelopment projects;
d) Internal City staff.
9.2.2 Marketing Tools
The Marketing Strategy will be a comprehensive multi-media program containing information, education and advertising components. The following key tools may be utilized to implement the Marketing Strategy:
a) Publications
i) A brochure containing pertinent points (as updated) from the Ottawa Brownfields Redevelopment Community Information Package and a description of the financial incentive programs available from the City, including general program requirements and how to apply;
ii) A Profile of Brownfield Redevelopment Opportunities (where landowners agree) within the City of Ottawa;
iii) Brownfield incentive programs and brownfield redevelopment success stories profiled in planning and economic development documents and newsletters and other publications such as the Ottawa Insider;
iv) Application forms and Program Guides that provide a description of “how to apply” for the programs.
b) Web Site
Materials
i)
Web page enhancements via the addition of the Ottawa
Brownfields Redevelopment Community Information Package;
ii)
Addition of the Profile of Brownfield Redevelopment
Opportunities to existing searchable real estate databases.
c) Presentations to Brownfield Stakeholders
and Support Professionals
The
brownfield coordinator will make periodic presentations on the incentive
programs contained in this CIP and brownfield success stories to industry
groups such as the development community, real estate, environmental and
planning consulting, finance, insurance and legal professionals.
d) Brownfield Conferences
Organization
and hosting of a brownfield conference by the City of Ottawa, subject to
availability of funding. The goal of this conference would be to inform and educate
all of the stakeholders in brownfield redevelopment (developers, builders,
lenders, end users, consultants, real estate and legal professionals, community
groups, City staff, politicians and media) on positive approaches to brownfield
redevelopment. The conference will also be used by the City to introduce and
showcase the programs contained in its Brownfields CIP as well as brownfield
redevelopment success stories and opportunities in the City of Ottawa. Where
possible, City staff should also attend brownfield conferences in Canada and
the United States in order to proactively market the City’s brownfield
redevelopment programs and opportunities utilizing the above-noted publications
and materials.
e) Media Releases
Press releases and profiles of successful brownfield redevelopment projects and initiatives sent to local and outside media.
9.2.3 Key Messages
The following are the key messages that will be integrated into the above-noted publications, web site materials, presentations and media releases:
a) Brownfields are vacant or underutilized sites that may have real or perceived contamination problems;
b) Brownfields represent a significant economic opportunity in Ottawa;
c) The impediments to brownfield redevelopment can be overcome by the use of innovative approaches to planning, remediation and the use of now available financial incentives;
d) The cleaning up and rehabilitation of brownfields results in improvements in environmental quality, human health and economic growth;
e) Brownfield redevelopment is Smart Growth because it efficiently uses existing services and reduces urban sprawl into prime agricultural areas and its associated costs. Brownfield redevelopment will help the City to achieve its growth management goals;
f) Brownfield reinvestment brings economic activity to derelict and underused sites. It generates employment and increased property tax revenues for the City;
g) Brownfield redevelopment can revitalize blighted residential neighbourhoods and employment areas;
h) The City is being proactive in encouraging reinvestment in brownfield sites by implementing brownfield supportive planning policies, offering financial incentives, implementing a municipal leadership strategy and working with developers of brownfield sites to expedite the development approvals process on these sites;
i) The City wants to find new opportunities and partnerships to deal with brownfields and the City is looking for interest from all types of developers and entrepreneurs (big and small).
10.0 MONITORING PROGRAM
10.1 Purpose
The purpose of the Monitoring Program is
to monitor the performance and impact of the incentive programs and the
Municipal Leadership Strategy and to utilize this information to make
adjustments to the incentive programs and the Municipal Leadership Strategy in
order to help ensure that the goals of the Brownfields Redevelopment CIP are
successfully accomplished.
10.2 Description
Figure
4 presents a list of the variables that should be monitored on an individual
project and aggregate basis for the incentive programs and the Municipal
Leadership Strategy. As well, the feedback received from users of the financial
incentive programs should also be considered. It is important that the results
of the monitoring program be utilized to help ensure that the incentive
programs and the Municipal Leadership Strategy be effective for both small and
large brownfield projects.
The
City should also attempt to monitor the results of the programs in Figure 4 in
terms of financial and social benefits. For example, the increase in long-term
property tax revenues from a brownfield redevelopment project can be compared
to the total municipal financial incentive provided to the project to determine
which projects are providing the highest return on investment. The cost savings
associated with not having to extend public services into greenfield areas
could be monitored. Increases in use of public transit and improvements in
property values and social conditions in neighbourhoods where brownfield
redevelopment projects are taking place should also be monitored.
It
is recommended that the Advisory Committee that was struck to assist the City
with preparation of this CIP should be maintained and should meet regularly
after the Brownfields Redevelopment Strategy and CIP have been adopted,
approved and are in effect. One of the key roles of the Advisory Committee
would then be to assist the City in monitoring implementation of the
Brownfields Redevelopment Strategy and CIP.
Progress on implementation and the
empirical results of the incentive programs and the Municipal Leadership
Strategy should be reported on a regular basis (at least annually) to City
Council. These monitoring results should also be used to recommend any
adjustments that should be made to the terms and requirements of the financial
incentive programs in order to improve these programs.
10.3 Program
Adjustments
The
feedback from monitoring of the CIP may lead to minor revisions to programs
contained in this CIP. Therefore, the City may periodically review and adjust
the terms and requirements of any of the programs contained in this Plan, or
discontinue any of the programs contained in this Plan, without amendment to
the Plan. Such minor changes or discontinuation of programs will be provided to
the Minister of Municipal Affairs and Housing for information purposes only.
Increases in funding provided by existing financial incentives or the addition
of any new programs to this Plan, or an expansion of the Community Improvement
Project Area will require a formal amendment in accordance with Section 28 of
the Planning Act.
Any
formal amendments to this Plan will require approval by the Minister of
Municipal Affairs and Housing, and shall be undertaken in accordance with
Section 28 of the Planning Act.
Figure 4 Variables
to be Monitored
Program |
Variable |
Project Feasibility Study Grant Program |
- Number of applications - Type of Feasibility Study - Cost of study - Amount of Feasibility Study Grant - Number of Feasibility Study Grant Applications leading
to Property Tax Assistance, Rehabilitation
Grant Applications and/or actual environmental remediation and rehabilitation
projects |
Environmental Site Assessment Grant Program |
- Number of applications - Type of ESA (Phase II, Remedial Work Plan, or Risk
Assessment) - Cost of study - Amount of Environmental Study Grant - Number of Environmental Study Grant Applications
leading to Tax Assistance, Rehabilitation
Grant Applications and/or actual environmental remediation and rehabilitation
projects |
Property Tax Assistance Program |
- Number of applications - Increase in assessed value of participating properties - Estimated and actual amount of municipal and education
tax assistance provided - Hectares/acres of land remediated and redeveloped - Industrial/commercial space (sq.ft.) rehabilitated or
constructed - Residential units/sq.ft. rehabilitated or constructed - $ Value of private sector investment leveraged - Jobs created/maintained - Number of program defaults |
Rehabilitation Grant Program |
- Number of applications - Increase in assessed value of participating properties - Increase in municipal and education property taxes of
participating properties - Estimated
and actual amount of tax increment financing grants provided - Hectares/acres
of land remediated and redeveloped - Industrial/commercial space (sq.ft.) rehabilitated or
constructed - Residential units/sq.ft. rehabilitated or constructed - $ Value of private sector investment leveraged - Jobs created/maintained - Number of program defaults |
Building Permit Fee Grant Program |
- Number and $ value of building permit fee grants - $ Value of building permit fee paid - $ Value of building permit issued |
Municipal Leadership Strategy |
- Funding amount by project type and purpose - Amount of other government funding leveraged - Increase in municipal and education property taxes of
participating properties - Estimated
and actual amount of tax increment financing grants provided - Hectares/acres
of land remediated and redeveloped - Industrial/commercial space (sq.ft.) rehabilitated or
constructed - Residential units/sq.ft. rehabilitated or constructed - $ Value of private sector investment leveraged - Jobs created/maintained - Number of program defaults |
11.0 REFERENCES
City of Ottawa. 2003. “A Window on Ottawa 20/20: Ottawa’s Growth Management Strategy”, Ottawa, Ontario.
City of Ottawa. 2003. “City of Ottawa Official Plan as adopted by City Council – May 2003, Volume 1”. Ottawa, Ontario.
Deason, J.P., Sherk, W.G. and G. A. Carroll. 2001. “Public Policies and Private Decisions Affecting the Redevelopment of Brownfields: An Analysis of Critical Factors, Relative Weights and Areal Differentials”, submitted to the U.S. Environmental Protection Agency, Washington, D.C., The George Washington University.
National Roundtable on the Environment and the Economy
(NRTEE). 2003. “Cleaning Up the Past, Building the Future – A National
Brownfield Redevelopment Strategy for Canada”. Ottawa, Ontario.
Regional
Analytics. 2002. “A Preliminary Investigation into the Economic Impact of
Brownfield Redevelopment Activities in Canada”, prepared for the National
Roundtable on the Environment and the Economy. Burlington, Ontario.
APPENDIX A
City
of Ottawa Official Plan
Section 5.2.5 - Community Improvement Policies
The Community Improvement provisions of the Planning Act allow municipalities to prepare community improvement plans for designated community improvement project areas that require community improvement as the result of age, dilapidation, overcrowding, faulty arrangement, unsuitability of buildings or for any other environmental, social or community economic development reason. Once a community improvement plan has been adopted by a municipality, approved by the Province, and is in effect, the municipality may offer incentives to encourage private sector investment. The municipality may also undertake a wide range of actions for the purpose of carrying out the community improvement plan.
Policies
General
1.
The City will
maintain and promote an attractive and safe living and working environment through
community improvement. To this end, community improvement will be accomplished
through the:
a) Designation by by-law of Community Improvement Project Area(s), the boundary of which may be part or all of the urban area of the City of Ottawa, and/or part or all of one or more villages as defined in this Plan, and as amended from time to time;
b) Preparation, adoption and implementation of a Community Improvement Plan(s) within a designated Community Improvement Project Area(s), pursuant to the Planning Act and the Community Improvement Policies set out in this Plan.
c) Ongoing maintenance, rehabilitation, redevelopment and upgrading of areas characterized by deficient/obsolete/deteriorated buildings, deficient municipal recreational or hard services, and social, community, or economic instability; and,
d) Establishment of programs to facilitate municipal and private sector rehabilitation and redevelopment that addresses identified economic development, land development, environmental, energy efficiency, housing, and/or social development issues/needs.
Community Improvement Project Areas
2. The designation of Community Improvement Project Areas shall be based on one or more of the following conditions being present:
a) Known or perceived environmental contamination;
b) Vacant lots and underutilized properties and buildings which have potential for infill, redevelopment or expansion to better utilize the land base or the public infrastructure;
c) Other barriers to the repair, rehabilitation or redevelopment of underutilized land and/or buildings.
d) Buildings, building facades, and/or property, including buildings, structures and lands of heritage and/or architectural significance, in need of preservation, restoration, repair, rehabilitation, energy efficiency or renewable energy improvements, or redevelopment;
e) Absence of an adequate mix of uses;
f) Deficiencies in physical infrastructure including but not limited to the sanitary sewer system, storm sewer system, and/or watermain system, streetscapes and/or street lighting, municipal parking facilities, sidewalks, curbs, or road state of repair;
g) Poor overall visual quality, including but not limited to, streetscapes and urban design and/or overhead wiring;
h) A concentration of obsolete or aging low-density land uses, vacant lots, surface parking lots and/or abandoned buildings;
i) High commercial vacancy rates.
j) Deficiencies in community and social services including but not limited to public open space, parks, indoor/outdoor recreational facilities, and public social facilities and support services;
k) Vacant lots and underutilized properties and buildings which have potential for infill, redevelopment or expansion to better utilize the land base or the public infrastructure;
l) Opportunities to improve the mix of housing types;
m) High commercial vacancy rates.
n) Any other environmental, energy efficiency, social or community economic development reasons.
3. Priority for the designation of Community Improvement Project Areas and the preparation and adoption of Community Improvement Plans shall be given to those areas:
a) Targeted for growth and intensification in Section 2.2.3 (Managing Growth Within the Urban Area), in particular, the Central Area, Traditional and Arterial Mainstreets, Mixed Use Centres and the vicinity (within 600 metres) of existing or planned rapid transit stations; and/or
b) Where the greatest number of conditions (as established in Policy 2) are present; and/or,
c) Where one or more of the conditions (as established in Policy 2) is particularly acute; and/or,
d) Where one or more of the conditions (as established in Policy 2) exists across the urban area of the city.
4. Community Improvement Plans may be prepared and adopted to:
a) Facilitate the renovation, repair, rehabilitation, remediation, redevelopment or other improvement of lands and/or buildings;
b) Facilitate the preservation, restoration, adaptive reuse and improvement of buildings with historical, architectural or other heritage significance;
c) Facilitate the development of mixed use buildings, or the introduction of a wider mix of uses in areas that are deficient in mixed uses;
d) Facilitate the restoration, maintenance, improvement and protection of natural habitat, parks, open space and recreational amenities;
e) Facilitate residential and other types of infill and intensification;
f) Facilitate the construction of a range of housing types and the construction of affordable housing;
g) Upgrade and improve municipal services and public utilities such as sanitary sewers, storm sewers, watermains, roads and sidewalks;
h) Improve pedestrian and bicycle circulation;
i) Facilitate public transit supportive land uses and improve the quality of, and accessibility to, transit facilities;
j) Contribute to the ongoing viability and revitalization of the Central Area, Mainstreets, and other areas that may require community improvement;
k) Improve environmental and energy consumption conditions;
l) Improve social conditions and support services;
m) Promote cultural development;
n) Facilitate and promote community economic development; and,
o) Improve community quality, safety and stability.
5. During the preparation of a Community Improvement Plan and any subsequent amendments, the public will be informed and public input will be obtained in keeping with the policies for Public Notification contained in this Plan.
6. In order to implement a Community Improvement Plan in effect within a designated Community Improvement Project Area, the City of Ottawa may undertake a range of actions as described in the Community Improvement Plan, including:
a) The municipal acquisition of land and/or buildings within the Community Improvement Project Areas where a Community Improvement Plan has been adopted, approved and is in effect, and the subsequent;
i) Clearance, grading, or environmental remediation of these properties;
ii) Repair, rehabilitation, construction or improvement of these properties;
iii) Sale, lease, or other disposition of these properties to any person or governmental authority;
iv) Other preparation of land or buildings for community improvement.
b) Provision of public funds such as grants, loans and other financial instruments;
c) Application for financial assistance from senior level government programs;
d) Participation in senior level government programs that provide assistance to private landowners for the purposes of community improvement;
e) Provision of information on municipal initiatives, financial assistance programs, and other government assistance programs;
f) Support of heritage conservation through the Ontario Heritage Act.
7. All developments participating in programs and activities contained within Community Improvement Plans shall conform with the policies contained in this Plan, applicable Community Design Plans, the Zoning-By-law, Maintenance and Occupancy By-laws, and all other related municipal policies and by-laws.
8. The City shall be satisfied that its participation in community improvement activities will be within the financial capabilities of the City.
APPENDIX
B
Ottawa
Brownfields Advisory Committee
Project Manager: Joseph Phelan, Senior Project Manager, Environmental Sustainability Division
Dianne Holmes, City Councillor
Michael Murr, Economic Development
Lesley Paterson, Strategic Projects, Economic Development
Alain C. Gonthier, Infrastructure Management Division, Public Works and Services
Jean-Guy Albert, Environment and Health Protection Division
Gord McNair, Real Estate Services
Tim Marc, Legal Services
Ken Hughes, Financial Services
Frank Bidin, Building Services
Peter McCourt, National Capital Commission
Carl Dube, National Capital Commission
Michael Billowits, National Manager, Contaminated Sites, Public Works, Real Property Branch
Clayton Truax, Public Works and Government Services
Paul Page, General Manager, Ottawa Office, Canada Lands Company
Don MacCallum, Canada Lands Company
Susan Howard, Senior Policy Advisor, Finance Secretariat, Ontario Ministry of Finance
Mike Elms, Senior Planner, Ministry of Municipal Affairs and Housing
Alison Fath-York, Senior Financial Advisor, Ministry of Municipal Affairs and Housing
Alida Mitton, Ministry of the Environment
Ann Tremblay, Ottawa International Airport Authority
John Herbert, Ottawa-Carleton Home Builders Association
Vince Catelli, Building Owners and Managers Association
Jeff Westeinde, Windmill Development Group Ltd. and Building Owners and Managers Association.
Adrian Pilon, National Research Council and Montreal Centre for Excellence in Brownfields Rehabilitation
Dr. John Meligrana, Queen’s University
APPENDIX
C
Ottawa
Brownfields Redevelopment Community Improvement Project Area
APPENDIX
D
Incentive Program Utilization on a Brownfield Redevelopment Project
Incentive
Program Utilization on a Brownfield Redevelopment Project
Project Phase Apply Receive
For
Development
Concept
Initiate
Project Feasibility Study Project
Feasibility
Study
Grant Program
Complete Project Feasibility Study Project
Feasibility Study
Grant
Initiate
Environmental Study Environmental
Site
Assessment
Grant Program
Complete Environmental Study Environmental
Site
Assessment
Grant
Initiate
Remediation Project Tax
Assistance Program
Rehabilitation
Grant Program
Complete
Remediation Project
Initiate Building Rehabilitation/ Development
Charge
Construction Project Reduction
Complete Building Rehabilitation/ Building
Permit Fee
Construction Project Grant
Property is revalued by MPAC Tax
Assistance
and property taxes increase Rehabilitation
Grant
APPENDIX
E
Project
Feasibility Study Grant Program Administration
(This appendix does not form an operative part of the Community Improvement Plan)
Project Feasibility Study
Grant Program Administration
Applications shall be submitted to the City and shall include a detailed work plan and budget for the required study. Program eligibility will be determined by City staff and applications will be approved by City staff only if they meet the criteria specified in this Plan and any other requirements of the City.
If an application is approved, the applicant will be sent a letter that outlines the terms and the amount of the grant. The grant amount will be based on 50% of the estimated cost of the study (excluding G.S.T) or 50% of the actual cost of the study (excluding G.S.T), whichever is less. If an application is not approved, the applicant will also be advised by letter.
Upon receipt of one hard copy and one electronic copy of the final study report with the original invoice indicating that the study consultants have been paid in full, a cheque in the amount of the approved grant will be issued to the applicant.
Figure E-1 Feasibility Study Grant Program Administration
APPENDIX F
Environmental
Site Assessment Grant Program Administration
(This appendix does not form an operative part of the Community Improvement Plan)
Environmental Site Assessment
Grant Program Administration
Applications shall be submitted to City
and shall include a detailed work plan and budget for the required study. Applications must be accompanied by a Phase
I ESA that demonstrates site contamination is likely. Program eligibility will be determined by City staff and
applications will be approved by City staff only if they meet the criteria
specified in this Plan and any other requirements of the City.
If an application is approved, the
applicant will be sent a letter that outlines the terms and the amount of the
grant. The grant amount will be based
on 50% of the estimated cost of the study (excluding G.S.T) or 50% of the
actual cost of the study (excluding G.S.T), whichever is less. If an
application is not approved, the applicant will also be advised by letter.
Upon receipt of one hard copy of the
final study report for review along with the original invoice indicating that
the study consultants have been paid in full, a cheque in the amount of the
approved grant will be issued to the applicant.
Figure
F-1 Environmental Study Grant
Program Administration
Program Administration
A.2
APPENDIX
G
Property
Tax Assistance Program Administration
(This appendix does not form an operative part of the Community Improvement Plan)
Property Tax Assistance
Program Administration
Applicants
will be required to have a pre-application consultation meeting with City staff
in order to determine program eligibility, proposed scope of work, and project
timing.
Applications
shall be submitted to the City and shall be accompanied by a Phase II ESA
and/or Remedial Work Plan and/or Risk Assessment prepared by a qualified person
that identifies and details estimated eligible costs and a work plan and budget
for the proposed remediation. The City may also require submission of a
Business Plan.
Before
accepting an application, City staff will screen the application. If the
application clearly does not meet the program requirements, the application
will not be accepted. Acceptance of the application by the City in no way
implies approval of the tax assistance. Applications will be recommended for
approval only if they meet the requirements specified in this Plan and any
other requirements of the City.
The actual
pre-project education and municipal property taxes and estimated post-project
assessed value and applicable tax rates will be used to calculate the estimated
post-project property taxes, increase in municipal property taxes, education
property taxes, and the estimated maximum amount of municipal and education
property tax assistance to be provided during the rehabilitation period and the
development period (as defined under Section 365.1 (1) of the Municipal Act,
2001).
Where City
staff will be recommending approval of an application for the Property Tax
Assistance Program, City staff will prepare the following documents:
a)
a Recommendation Report
to Council on the Property Tax Assistance Program Application;
b)
a Property Tax
Assistance Program Agreement;
c)
a draft by-law to
authorize municipal and education tax assistance under Section 365.1 of the Municipal Act, 2001; and
d)
an application to the
Minister of Finance for matching education property tax assistance.
Items a) - d)
above will be forwarded to the Minister of Finance. Once written approval of the by-law is received from the Minister
of Finance, any conditions or restrictions specified by the Minister will be
included in the by-law.
The Minister of Finance is currently prepared to authorize municipal applications for matching education property tax assistance for a maximum of three years from the date of the passing of the by-law. Applications seeking matching education property tax assistance for a longer period are subject to the approval of the Minister of Finance. The City may continue to offer municipal property tax assistance up to the time period specified for municipal property tax assistance in the by-law, or when the total tax assistance provided equals the total eligible costs, whichever comes first. The matching education property tax assistance may be provided on a different schedule from the tax assistance provided by the City and may be subject to additional conditions.
The recommendation report, the Agreement (dated and signed by the property owner), and the by-law will then be forwarded to Council for consideration. Once Council approves the Property Tax Assistance Program Application and the Agreement, and adopts the by-law, the agreement will be executed by the authorized City officials and a copy will be provided to the property owner. A copy of the by-law, including all information prescribed by Ontario Regulation 274/04 will be forwarded to the Minister of Municipal Affairs and Housing and the Minister of Finance within 30 days of passing of the by-law by the City.
Where the Minister of Finance has approved an application for matching education property tax assistance, the municipal property tax assistance and education property tax assistance will begin when City Council passes the Minister of Finance approved by-law for property tax assistance.
Once remediation of the property is complete, the property
owner shall file in the Environmental Site Registry a RSC for the property
signed by a qualified person, and the owner shall submit to the City proof that
the RSC has been acknowledged by the Ministry of Environment (MOE). The owner shall, within 30 days of filing
the RSC, notify the City of the filing, and within 30 days after receiving said
notice, the City shall advise the Minister of Finance of the filing of the
RSC.
The Ministry of
Finance’s property tax assistance will be given as a tax deferral followed by
cancellation to the landowner when conditions are met. During the deferral and
cancellation stage the landowner would not be required to pay the education
property taxes that have been deferred or cancelled. The City has the option of
providing conditional property tax assistance, which means that the property
tax assistance will not be provided until the landowner has first met the
City’s conditions related to the rehabilitation and development of the lands.
Under a conditional property tax assistance scenario, the City will have
decided to provide no deferral, only cancellation when conditions are met. The
full municipal property taxes are payable and collected until these conditions
have been satisfied. Once the conditions have been satisfied the City would
provide the accumulated tax assistance to the landowner as identified in the
by-law.
Figure G-1 Property
Tax Assistance Program Administration
*Note:
The owner may elect to have the by-law passed after an RSC has been filed and
acknowledged and the property has been redeveloped in order to maximize the
total amount of municipal and education property tax assistance over the period
of time specified in the by-law
APPENDIX H
Rehabilitation Grant Program Administration
(This appendix does not form an operative part of the Community Improvement Plan)
Rehabilitation Grant Program Administration
Applicants will be required to have a
pre-application consultation meeting with City staff in order to determine
program eligibility, proposed scope of work, and project timing.
Applications shall be submitted to the
City and shall include a detailed work plan and cost estimate for the proposed
eligible works. The application will be
accompanied by a Phase II ESA and/or Remedial Work Plan and/or Risk Assessment
prepared by a qualified person that identifies and details estimated eligible
costs and a work plan and budget for the proposed remediation or proof that an
RSC for the proposed use of the property has been acknowledged by the MOE. The
City may also require submission of a Business Plan.
Before
accepting an application, City staff will screen the application. If the
application clearly does not meet the program requirements, the application
will not be accepted. Acceptance of the
application by the City in no way implies approval of the grant. Applications will be recommended for
approval only if they meet the requirements specified in this Plan and any
other requirements of the City.
The actual
pre-project City property taxes and estimated post-project assessed value and
applicable tax rates will be used to calculate the estimated post-project
property taxes, increase in City property taxes, and the estimated annual and
total grant amount to be provided.
Where City
staff will be recommending approval of an application for a Rehabilitation
Grant, City staff will prepare the following documents:
a) a recommendation report to City Council; and
b) a Rehabilitation Grant Program Agreement.
The
recommendation report and the Agreement (dated and signed by the property
owner), will then be forwarded to City Council for consideration. Once City Council approves the Application
and the Agreement, the agreement will be executed by the authorized City
officials and a copy will be provided to the applicant.
Once
remediation of the property is complete, the property owner shall file in the
Environmental Site Registry a RSC for the property signed by a qualified
person, and the owner shall submit to the City proof that the RSC has been
acknowledged by the Ministry of Environment (MOE). The owner shall,
within 30 days of filing the RSC, notify the City of the filing, and within 30
days after receiving said notice, the City shall advise the Minister of Finance
of the filing of the RSC.
Once the
project is complete, an occupancy permit has been issued, and the property has
been re-valued by the Municipal Property Assessment Corporation, the property
owner will be sent a new property tax bill. After the property owner has paid
in full the new property taxes for one year, the City will check to see that
the property is not in tax arrears and that the property is still in conformity
with the terms of the Rehabilitation Grant Program Agreement. The City will
calculate the actual tax increment and grant payment. The City will then issue
payment of the grant in the form of a cheque in the amount specified as per the
calculation of the actual grant payment.
Figure H-1 Rehabilitation Grant Program Administration
[1] National Roundtable on the Environment and the Economy (NRTEE). 2003. Cleaning Up the Past, Building the Future – A National Brownfield Redevelopment Strategy for Canada. Ottawa, Ontario.
[2] Deason, J.P., Sherk, W.G. and G. A. Carroll. 2001. “Public Policies and Private Decisions Affecting the Redevelopment of Brownfields: An Analysis of Critical Factors, Relative Weights and Areal Differentials”, submitted to the U.S. Environmental Protection Agency, Washington, D.C., The George Washington University.
[3] Generally, matching education property tax assistance will last for a maximum of three years. Extensions are subject to the approval of the Minister of Finance.
[4] Note that this program does not form part of this CIP.
[5] Generally, matching education property tax assistance will last for a maximum of three years. Extensions are subject to the approval of the Minister of Finance.
[6] The inclusion of the LEED program component costs is aimed at encouraging the incorporation of Smart Growth design principles into new/retrofit building construction