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4. Action Ottawa – 424 Metcalfe Street – Beaver barracks
Action Ottawa – 424, rue Metcalfe – BEAVER BARRACKS
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Committee Recommendation
That Council approve a conditional capital grant in the amount of $531,678 to Phase I of the Centretown Citizens Ottawa Corporation (CCOC) Beaver Barracks development at 424 Metcalfe Street to offset increased project development costs resulting from design changes required by the Ministry of the Environment as outlined in this report.
Recommandation DU Comité
Que le Conseil approuve une subvention d’investissement conditionnelle de 531 678 $ destinée à la Phase I du projet d’aménagement Beaver Barracks de la Centretown Citizens Ottawa Corporation (CCOC), au 424, rue Metcalfe, afin de compenser la hausse des coûts d’aménagement résultant des changements de conception exigés par le ministère de l’Environnement, comme l’explique le présent rapport.
Documentation
1. Councillor Diane Holmes’ report, Community and Protective Services Committee, dated 19 August 2010 (ACS2010-CCS-CPSC-0027).
Community and Protective Services Committee
Comité des services communautaires et de protection
and Council / et au Conseil
August 19, 2010 / le 19 août 2010
Submitted by/Soumis par :
Diane Holmes, Councillor/Conseillère
Somerset Ward / Quartier Somerset
Contact Person/Personne ressource :Diane Holmes,
Councillor, Somerset Ward / Conseillère, quartier Somerset
(613) 580-2524, Diane.Holmes@ottawa.ca
SUBJECT: |
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OBJET : |
That the Community and Protective Services Committee recommend that Council approve a conditional capital grant in the amount of $531,678 to Phase I of the Centretown Citizens Ottawa Corporation (CCOC) Beaver Barracks development at 424 Metcalfe Street to offset increased project development costs resulting from design changes required by the Ministry of the Environment as outlined in this report.
Que le Comité des services communautaires et de protection recommande au Conseil d’approuver une subvention d’investissement conditionnelle de 531 678 $ destinée à la Phase I du projet d’aménagement Beaver Barracks de la Centretown Citizens Ottawa Corporation (CCOC), au 424, rue Metcalfe, afin de compenser la hausse des coûts d’aménagement résultant des changements de conception exigés par le ministère de l’Environnement, comme l’explique le présent rapport.
The Centretown Citizens Ottawa Corporation (CCOC) affordable housing project at 424 Metcalfe Street (Beaver Barracks), is the largest affordable housing development currently approved and under construction in the City. The initial phase of the project, which included Action Ottawa and Canada-Ontario Affordable Housing Program (AHP) funding for 100 dwelling units, was approved by Council and submitted to the Ministry of Municipal Affairs and Housing in July 2007. In November 2008, Council approved an additional AHP allocation of $4.6M to support an additional 60 units in Phase I (now totalling 160 units) that was also approved by Ministry of Municipal Affairs and Housing(MMAH). Phase II consisting of 88 residential units utilizes the remainder of the property and consists primarily of a proposed seven-storey apartment building along Catherine Street in the location of the current paramedic post on the site. The existing paramedic post is to be relocated into the 7 storey apartment building currently under construction on the northwest corner of Catherine and Metcalfe Street.
Since the project was originally approved, the project has evolved to include 248 units being constructed in two phases, both of which are under construction. CCOC began construction on Phase I in March 2009 add the apartment on the corner of Metcalfe and Catherine Street is expected to be completed this winter. Table 1 below highlights the capital funding provided to date from the City and the Federal and Provincial Governments through the AHP.
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Table 1. Distribution of Funding |
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Contribution |
Phase I 160 Units |
Phase II 88 units |
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Canada-Ontario Affordable Housing Program (AHP) Funding
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$12,140,000 |
$6,200,000 |
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City of Ottawa
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Phase I |
Phase II |
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Capital Grant |
$3,000,000 |
$0 |
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Action Ottawa Accessible Unit Grant |
$200,000 |
$60,000 |
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Grant-In Lieu of Building Permit Fees |
$242,287 |
$236,304 |
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Waiver of Planning Application Fees |
$25,721 |
$27,000 |
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Waiver of Development Charges |
$1,200,000 |
$550,000 |
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Waiver of Parkland Levy |
$270,000 |
$54,000 |
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Value of City Land |
$5,350,000 |
Included in Phase I |
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Soil Remediation Grant |
$300,000 |
$0 |
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Total City Contribution
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$10,588,008 |
$927,304 |
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Estimated Total Project Cost (Total Equity, funding and financing) |
$43,000,000 |
$18,500,000 |
The Beaver Barracks development is a significant affordable housing development which includes many elements that are not included in typical residential developments. The development once complete will include a mix of rents available to a variety of household incomes with no rent being higher than the CMHC Average market rent for that unit type. Units will be available to a number of persons on the Centralized Waiting List and the Below Market rent Waiting List with the Social Housing Registry of Ottawa including units reserved for persons requiring supports from agencies such as Ottawa Salus, Options Bytown and Disabled Persons Community Resources. Accessibility has been an integral part of the project from the beginning with 94% of the units in Phase 1 being visitable and 20 units fully accessible to people in wheelchairs. All amenity areas will be barrier free. The project will be built to internationally-recognized environmental standards, incorporating a geo-exchange heating & cooling system, high performance building envelope materials, extensive & intensive green roofs, energy-star appliances and low-emissions finishes. Ottawa Paramedic Services will move into a new paramedic post on the ground floor of the Metcalfe building and the centre of the site will be landscaped with a large community garden surrounded by footpaths and a private laneway.
In terms of project viability and accountability, it is important to note that Housing Services had retained KMPG as part of the selection process, to provide financial and cost analysis of all proponent submissions for Phase I of the project and specifically to review and comment on the capital and operating budget of the project. CCOC’s capital and operating budgets were found to be reasonable and construction costs reflected the industry standard. Infrastructure Ontario has also reviewed CCOC’s capital and operating budgets and is providing long term mortgage financing for the project, which also included a review of the capital and operating budgets by CHMHC underwriters for mortgage insurance. CCOC has also retained Gordon Armstrong & Associates to review the project on an ongoing basis and provide monthly progress as part of CCOC’s due diligence.
DISCUSSION
Departmental Comments – Planning and Growth Management & Housing Services Branch
The request for a conditional grant of $531,678 is in response to direct costs incurred by CCOC because of required changes from the Ministry of Environment to the design and eventual re-direction of site services for the project after construction had started in March 2009. Specifically, CCOC was required to redesign the site services from Catherine Street and seek approval to redirect services to Argyle Street. CCOC has advised that it has incurred additional costs of least $735,000 from redesign and on site work that was not budgeted for in the original proposal.
Staff supports recommending a conditional grant of $531,678 for direct hard costs related to the design of new infrastructure systems after construction had commenced in March 2009.
Under the existing Municipal Housing Project Facilities Agreement dated March 4, 2009 CCOC agreed to perform all work and construction on the Project at its own expense. Staff have been reviewing the impact of the MOE change to site services and the additional costs related to the changes. While the total project cost for Phase I is estimated to be approximately $43.0M, the additional $735,000 costs (1.7% of the total project cost for Phase I) as a result of the redirection could impact CCOC’s ability to complete Phase I in accordance with earlier projections.
Staff support recommending that an additional conditional grant of $531,678 be provided to CCOC to facilitate the completion of Phase I of the project in accordance with earlier projections. Staff agree that the existing Municipal Housing Project Facilities Agreement dated March 4, 2009 be amended to provide that the additional conditional grant of $531,678 shall be subject to all of the terms and conditions of the Municipal Housing Project Facilities Agreement dated March 4, 2009.
This report was not subject to public consultation.
There are no legal/risk management impediments to implementing the recommendation in this report.
CITY STRATEGIC PLAN
Sustainable, Healthy and Active City Priority. Objective 4: In co-operation with federal and provincial partners, end homelessness in 10 years. Objective 7: Set a high-level and a proactive municipal response to meet the social services, social housing, supported living and public health needs of Ottawa residents. Activity: Achieve the annual development of 500 housing units affordable to people earning low income.
Sustainable Finances Priority. Objective 1: Fund infrastructure renewal, including closing the gap in affordable and appropriate housing supply. Activity: Implement the City Housing Strategy actions related to identifying and gathering resources for affordable housing development.
Capital spending authority to support the one-time grant of $531,678 identified in the recommendation is currently available ($231,678 from the Housing Reserve and $300,000 from the provision for one time and unforeseen items).
RURAL IMPLICATIONS
There are no rural implications with this report.
N/A
Housing Services will notify Centretown Citizens Ottawa Corporation of Council’s decision.
Subject to approval of the recommendation of this report Corporate Development & Environmental Law Branch will draft and attend to execution of an amending agreement between the City and CCOC that stipulates that the additional conditional grant of $531,678 is subject to all of the terms and conditions of the Municipal Housing Project Facilities Agreement between the City and CCOC dated March 4, 2009.