PLANNING SERVICES DEPARTMENT

PROGRESS REPORT

COMMUNITY IMPROVEMENT PLAN

January 2014

Issue # 5

2012-2013

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BACKGROUND

The City of Barrie has approved three Community Improvement Plans (CIP)

offering Financial Incentives to encourage private sector investment in

redevelopment projects that support strategic objectives for defined areas

throughout the municipality.

Two of these Plans, the Downtown Next Wave and Allandale CIP’s are within the

Urban Growth Centre identified in the Provincial Growth Plan as an area targeted

for residential and commercial intensification. The primary objective of these two

Plans is to encourage downtown revitalization.

The third CIP is the Georgian College Neighbourhood Community Improvement

Plan which targets the provision of intensified student accommodation in multi-unit

residential apartment buildings.

This annual report is intended to update council and the public on the effectiveness

of the financial incentives and their impact on achieving the vision and objective of

the community plans.

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In 2013, Council approved a budget of approximately $220,000 for projects

covered under delegated approval.

Payment of grants, including installments on Tax Increment Based Grants

previously approved by Council totaled approximately $322,000, in 2013.

SUMMARY OF THE INCENTIVE PROGRAMS

AVAILABLE IN THE THREE CIP’S:

Forgivable Loans available in the Downtown Next Wave and Allandale CIPs include:

Façade Improvement Loans Adaptive Re-Use/Upgrade to Building Code Loans and Renovation Loans

These loans are for a maximum of $25,000 or 50%, whichever is less, of the cost of the improvements. In addition, any of these loans can be coupled with a Signage or Artwork Loan to a maximum of $5,000 or 50% of the cost, whichever is less. Grants available in the Downtown New Wave, Allandale, and Georgian College CIP Areas include:

Application Fees Grant- 100% for planning application fees for approved applications such as Official Plan Amendment, Rezoning, Site Plan and Committee of Adjustment application.

Building Permit Fees Grant- 25% of the first $25,000 of a building permit fees and 50% for any amount above $25,000. A hotel/ Convention Centre is eligible for a grant of 100% of the Building permit fee in the Downtown Next Waver CIP Area.

Tax Increment Based Grant- this applies to properties where the improvements or redevelopment result in an increased assessment of $100,000. The increment in municipal taxes as a result of the development is granted in decreasing percentages over a five year period starting at 100% in Year 1 and 2 and decreasing by 25% each year thereafter to year 5.

Sled Grant- both the Downtown Next Wave and Allandale CIP offer a Grant for installing energy efficient exterior lighting to enhance safety in these CIP areas.

The Director of Planning has delegated approval authority for incentive applications up to $100,000 typically this includes forgivable loans and smaller grants such as planning application or building permit fees. Council approval is required for grants or loans over $100,000, which usually applies to Tax Increment Based Grants.

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DOWNTOWN AND ALLANDALE CIP: ACTIVITY

TO DATE

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GEORGIAN COLLEGE NEIGHBOURHOOD CIP:

ACTIVITY TO DATE

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NEW PROJECTS APPROVED IN 2013

Bliss Yoga Studio and Upper level Apartment

Façade and Sign and Adaptive Re-Use Loans were provided for development of a yoga studio and residential unit above. The façade and sign loan applies to the

lakeshore side of this property at 119 Dunlop Street East.

The estimated construction value is approximately $500,000

Before After

119 Dunlop Street East

65/67 Mary Street

Insurance Brokers Offices

An Adaptive Re-Use, an Upgrade to Building Code loan, and an Application Fees grant were approved to convert two adjacent buildings for office use. The total construction value of this project is approximately $500,000.

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The total amount spent on grants and loans to date is roughly equal, with slightly more (53%) being spent on grants to date, and (47%) being spent on forgivable loans.

LOANS AND GRANTS SUMMARY

Council approved approximately $220,000 in the 2013 budget, for financial incentives considered under delegated approval authority. This covered eight (8) Façade and Sign loans, five (5) Adaptive Re-use and Upgrade to Building Code loans, and 6 small grants for Building permits and planning application fees. Only $75,600 (34%) of funds for approved projects were completed and funded in 2013. The balance of funds from the 2013 budget will be paid upon completion and confirmation that conditions and program details have been met.

No new Energy Efficient Lighting Grants were approved in 2013. Several re-submitted applications for lighting grants were declined in 2013 based on the location not being prioritised for safety considerations, for example where street lighting already exists, compared with laneway areas that may need lighting.

Three (3) projects which were approved by Council in 2012 for Tax Increment Based Grants, Building Permit Fees Grants and Planning Application Fees Grants continue to be funded through 2013. The remaining grant payments for these approved projects over 2014-2017 will be approximately $500,000.

The graph below shows cumulative payments for projects between 2005 and 2012 relative to the amount funded in 2013 for loans and grants.

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Tax Increment Based Grant $757,316 80%

Building Permit Fee $81,525 9%

Planning Application Fees $36,508 4%

Cash In Lieu of Parkland Fee (discontinued) $32,000 3%

Sled Lighting Grant $28,450 3%

Demolition and Tipping Fee (limited to accidental damage) $7,679 1%

Total Grants Paid to Date $609,138 100%

DOWNTOWN AND ALLANDALE CIP GRANT

PROGRAM SUMMARY

The Tax Increment Based Grant constitutes the most significant share (approximately 80%) of all grant funding. The remaining grant funding goes toward building permit fees grants, planning application fees, and lighting grants.

SUMMARY OF GRANTS APPROVED TO DATE:

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TAX INCREMENT GRANT PROGRAM

The graph below shows the anticipated payment schedule for approved Tax Increment Based Grants for years 2013 to 2017. Two significant grant applications were received in 2013 and it is anticipated that these will be submitted for Council consideration in 2014. In 2013, Council approved an increase in total payments to 218 Bayfield Street of approximately $11,000, which was based on the actual tax increment. The initial payment schedule that was approved was based on an estimated tax increase which was lower than the actual tax increase as a result of the development. The first grant for a project developed in the Georgian College Neighbourhood CIP was approved by Council in 2012 and will be paid out over the next 2 years. The estimated 2013 Tax Increment Based Grant payments for 3 projects previously approved by Council is approximately $111,700 with the breakdown summarised as follows:

81 Mulcaster Street - Office space addition: $57,000 (Year 1 estimate) 218 Bayfield Street - New chiropractic office: $8,815 (Year 3 estimate) 359-363 Duckworth Street – Student housing: $45,920 (Year 4 payment)

The Graph below shows the total payments for Tax Increment Based Grant installments to be paid over the period 2013 to 2017 for previously approved projects.

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Adaptive Re-use and Upgrade to

Building Code Loans $257,760 32%

Façade and Sign Loans

$487,745 61%

Renovation Loans $60,000 7%

Cumulative Total Spent on Forgivable Loans 2005-2013

DOWNTOWN AND ALLANDALE CIP LOAN

PROGRAM SUMMARY

The Façade and Sign Improvement Program makes up the majority of forgivable loan applications both in terms of dollar value and number of projects. In 2013, four (4) Adaptive Re-Use and Upgrade to Building Code loans were approved, totaling approximately $73,000. Seven (7) Façade and Sign loans were approved totaling approximately $132,600. The graph below shows the total cumulative amount allocated and spent on forgivable loans, with a breakdown of the amount for Façade and Sign Loans, Renovation Loans and Adaptive Re-use and Upgrade to Building Code loans funded in 2013.

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MONITORING PARAMETERS

CUMULATIVE RESULTS 2005-2013 AND 2013 SNAPSHOT

Total Dollars awarded to date: $1.87 million

Total Awarded to Loans 51 %

Total Awarded to Grants 49 %

Total Dollars Spent on Loans and Grants 2013: $547,000

Total Dollars Spent on Loans 2013: $225,000 (41 % of 2013 spending)

Total Dollars Spent on Grants 2013: $322,000 (59% of 2013 spending)

Number of Improved Façades: 34, of this, 6 new facades were completed in 2013.

Number of Renovation /Adaptive Re-Use Projects: 15, of this, 2 were completed in 2013.

Number of Grants for Fees and Permits: 21 of this, 6 new grants were approved in 2013.

Total laneway safety lighting projects: 10, of which 6 were approved in 2012. None

were approved in 2013.

Number of Tax Increment Based Grants Approved: 6, of this, no new projects were

approved in 2013.

Estimated total jobs accommodated Downtown and Allandale: 445, of this 35 resulted from

projects approved in 2013.

Estimated increase in Retail Floor Area: 2,883m2, of which 325m

2 was added in 2013.

Estimated increase in Office Floor Area: 6,744.53m2, of which 509.53m

2 was added with

projects approved in 2013.

Number of New Rental Residential Units: 118, of which 6 units were added with a projects

approved in 2013.

Estimated Total Construction Value: $14.8 million, of which $2.3 M was in projects

approved in 2013.

Total increase in assessment on projects with approved Tax Increment Based Grants: $16.7

million, resulting in an increase of $292,000 in additional taxes per year. No new Tax

Increment Based Grants were approved in 2013.