Council Preview
By John Swartz
Orillia council meets in committee Monday night at 7 p.m. Of particular importance is a report from the economic development department regarding implementation of the third tier of the Downtown Tomorrow Community Improvement Plan grant program.
The first tier , for feasibility/design studies and fee grants, and the second, for the façade, building improvement and residential grant programs have already been put into play.
The timing for starting the third tier was flagged during the budget process as being right in 2019. The three components of tier 3 are part of the 8 incentive aspects of the Downtown Tomorrow plan recommended to help property owners and developers rejuvenate the central core.
Two developers have emerged with plans for development of the former Schacter waterfront property and redevelopment of the Goodwill store at King and West Streets.
Staff say the third tier is more complex and has greater implications with the size of grants to be considered, and potential the greatest affect on development because grants from the first two tiers are smaller in both cost and the size of projects aided. The specific grants eligible in tier three are development charge grants, tax increment grants and brown field tax assistance.
The Sterling Group has a plan to build 53 townhomes on the Schacter property, officially known as 144 Elgin Street. Staff are recommending a development charge grant not exceeding $200,000. Sterling asked for $500,000. This total amount is limited to the cost of site remediation and/or risk assessment.
It’s anticipated the grant would allow the project to save 10 months on project completion. Sterling says they can’t get financing until they have sold a majority of the units, but they don’t want to sell any units until the site remediation is done in case the configuration or scope of the work has to change. The 10 months to completion acceleration represents $199,999 of property taxes the City would collect during that time frame.
A group of doctors, operating as NABI Inc. are proposing to renovate a building at the King and West shopping plaza for use as an outpatient medical center. They are also investigating a site outside City limits.
They estimate they will invest $3 million so 8 doctors (specialists) and staff can work there. Seven of the doctors already practice in Orillia. Staff are recommending a tax increment grant of $250,000 over a 5 year term. This represents 70% of the expected property tax increase the redevelopment would generate. The grant would be reduced if NABI receives grants from other sources, including tier 1 and 2 of the DTCIP.
Staff considered 5 projects and selected those two because the potential to spur more development in those neighbourhoods is greater. Staff are also asking for allocation of $20,000 for legal fees and authority for the director of business development to execute the grants.
Development Charge Accounts
Another report from the treasurer outlines the condition of the City’s development charges accounts. The City replenished the accounts by $1.5 million in 2018. There are several accounts involved (policing, fire, library, parks, public works, etc.) and there is a deficit of $12.9 million. The city has been borrowing from itself creating the deficit in those accounts.
The borrowing happened over many years, and the development charges moratorium also contributed to the deficit (two properties received a total of $32,000 in 2018)..
Development charges are meant to collect fees from developers to help fund expansion of services new development necessitates (e.g. more houses and new commercial/industrial means more parks, wider roads, increased use of police, fire and library services). In 2018 development charge funds were used as transfers to partially fund projects like the Coldwater Road reconstruction and the purchase of two snow plows and two sidewalk plows.
Waterfront Development
The Waterfront Development Team is recommending to council several easements related to the 70 Front Street property be revoked through expropriation, specifically to allow extending Coldwater Street to the water front, but not limited to that purpose. It’s part of making the property clear of obstacles for any poetical buyer/developers.
There are rights of way, two old mortgages that have been discharged, leases with businesses operating on the property and some aspects of the lease with Metro involved. While most of the planned expropriations relate to 70 Front Street, staff are also recommending several others need attention in an area between north of the water filtration plant to Mississaga Street. The list of expropriations includes a substantial number of water lots, which may not seem to be relevant, until one considers the water line used to be at the western edge of Centennial Drive (for example just in front of French’s and along the old rail line) and the water lots haven’t existed since the parks were created.
Council Expense Report
The treasurer also has a report of 2018 expenses for council and members of boards and committees. Boards and committee expenses appear to be of the usual type. For council Mayor Steve Clarke is was reimbursed $3,061 for mileage, and attendance at meetings and the Ontario Association of Police Services Boards conference.
Councillor Mason Ainsworth top the rest of council for reimbursement of $3,183 to register and attend the OSUM and AMO conferences, plus mileage. All councils had expenses for business cards while councillors Cipolla and Kloostra expensed mobile device replacements. The total 2018 council expenses are $7,989.
Council will meet in closed session starting at 4:30 p.m. They have four items on that agenda. They will hear some of the details related to the expropriation public report, deal with appointments to the Orillia Power Corp. board, make an integrity commissioner appointment and the Lakehead University lease agreement issue was referred back to closed session at the last council meeting.
