DS-15-161 - City of Oshawa

Public Report
To:
Development Services Committee
From:
Paul D. Ralph, BES, RPP, MCIP, Commissioner,
Development Services
Report Number:
DS-15-161
Date of Report:
July 22, 2015
Date of Meeting:
July 27, 2015
Subject:
Application under the Central Business District Renaissance
Community Improvement Plan, Bowood Properties (2006) Inc.,
68-72 King Street East
File:
B-1210-0054
1.0
Purpose
The purpose of this report is to obtain City Council direction on an application submitted by
Mr. Richard E. Christie of Bowood Properties (2006) Inc. (Bowood) for financial incentives
under the Central Business District Renaissance Community Improvement Plan (C.B.D.
C.I.P.) for the proposed restoration and redevelopment of the former Genosha Hotel
building at 68-72 King Street East to a mixed use building containing 66 apartment units
and ground floor commercial uses.
The subject site is currently owned by 2199957 Ontario Inc. Bowood has entered into
an agreement with the owner to purchase the subject site. As part of Bowood’s due
diligence, it requires a Council position on the requested financial incentives.
Attachment 1 is map showing the location of the subject site.
Attachment 2 is a letter dated July 19, 2015 from Bowood describing the proposal and
the requested financial incentives.
Attachment 3 is the Council resolution approving financial incentives in 2008 for a
previous proposal by Summers and Company.
2.0
Recommendation
That the Development Services Committee provide a recommendation to City Council
regarding the application submitted by Bowood Properties (2006) Inc. under the Central
Business District Renaissance Community lmprovement Plan for the former Genosha
Hotel building at 68-72 King Street East.
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Report to Development Services Committee
Meeting Date: July 27, 2015
3.0
Item: DS-15-161
Page 2
Executive Summary
Not Applicable.
4.0
Input From Other Sources
4.1
Other Departments and Agencies
The following have been consulted in the preparation of this report:
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Interim City Manager
Finance Services
Legal Services
Municipal Law Enforcement and Licensing Services
5.0
Analysis
5.1
Background
5.1.1 Previous Financial Incentives Approved for Summers and Company in 2008
In 2008 Summers & Company (then a potential purchaser of the subject site) applied for
financial incentives under the C.B.D. C.I.P. to advance the restoration and redevelopment
of the former Genosha Hotel into a mixed use building containing 85 bachelor apartment
units and ground floor commercial uses.
On November 24, 2008, City Council approved, subject to conditions, an Increased
Assessment Grant for 10 years, valued at $322,000 at that time (approximately $360,000
in 2015 dollars), a forgivable Façade Improvement Loan of $350,000 payable over 10
years in annual installments of $35,000 per year and a Building Permit Fee Grant of
$5,000. Attachment 3 is a copy of the November 24, 2008 Council resolution regarding
this request.
The Region of Durham also approved a financial incentive of $550,000 under the Regional
Revitalization Program, to be paid at specific stages of the development process.
Demolition work began on the project, but this redevelopment project was not completed.
The City and Regional financial commitments are no longer available since the conditions
were not satisfied.
5.1.2 Heritage Property Tax Reduction Program
The subject site is designated under Part IV of the Ontario Heritage Act as a property
having significant cultural and heritage value.
On March 21, 2011, Council approved a Heritage Property Tax Reduction Program
(H.P.T.R.).
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Report to Development Services Committee
Meeting Date: July 27, 2015
Item: DS-15-161
Page 3
The intent of the H.P.T.R. Program is to provide heritage property owners with relief in the
form of property tax reduction given that heritage properties typically require more
intensive care, custom work and maintenance costs.
The City has set the amount of the annual tax reduction at forty percent (40%) of the City
and School Board portions of the property taxes payable on the eligible heritage property
subject to conditions.
The maximum combined tax reduction is 40%, inclusive of any other tax reduction
programs, (e.g. C.B.D. C.I.P., increased assessment grants). Therefore, in this case the
H.P.T.R. Program would not be available to the owner for some time if Council approves
the requested C.B.D. C.I.P. incentives.
The costs associated with the H.P.T.R. Program are funded from the Taxes Written Off
Program.
5.1.3 Current Condition of the Former Genosha Hotel
The condition of the subject site has deteriorated to an unacceptable level. Since the
building was vacated many complaints have been made to Municipal Law Enforcement
regarding the building structure, broken windows, graffiti, peeling paint, debris,
grass/weeds and people breaking into the building and using it as a shelter or for criminal
activity.
Municipal Law Enforcement, Durham Regional Police and Oshawa Fire Services have
been involved in various investigations.
The Downtown Oshawa B.I.A. has submitted a letter of concern about the state of the
property to Heritage Oshawa.
On March 23, 2015, the Corporate Services Committee referred the following motion from
Heritage Oshawa to staff for consultation with Heritage Oshawa and the Downtown Board
of Management and report back to the Committee:
“Whereas Heritage Oshawa is concerned with the standard of care and
deteriorating conditions of the Genosha Hotel located at 68 King Street East; and,
Whereas the property is designated under the Ontario Heritage Act via City of
Oshawa By-law 70-2005; and,
Whereas the current conditions of the building are leading to safety concerns,
neglect and disrepair;
Therefore be it resolved that staff investigate the matter pursuant to the City’s
Property Standards By-law 1-2002.”
5.1.4 Bowood’s Development Proposal
Bowood has entered into an agreement to purchase the former Genosha Hotel at
68-72 King Street East. Bowood’s proposal includes the restoration and redevelopment of
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Report to Development Services Committee
Meeting Date: July 27, 2015
Item: DS-15-161
Page 4
the building to 66 apartment units (40 one-bedroom apartments and 26 bachelor
apartments) and ground floor commercial uses, such as retail stores and restaurants. The
project includes significant restoration and upgrades to the exterior and the interior of the
building including new elevators, plumbing, wiring, heating, ventilation and air conditioning
systems, windows, parapet and roof.
Bowood intends to start the project by mid-August 2015 and have the project completed
and the building ready for occupancy by December 2016.
5.2
Requested Incentives and Staff Comments
5.2.1 Increased Assessment Grant
5.2.1.1
Bowood Request
Bowood has requested that the City provide an Increased Assessment Grant for a 14 year
period as follows:
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100 % for Year 1
100 % for Year 2
100 % for Year 3
100 % for Year 4
100% for Year 5
100% for Year 6
100% for Year 7
100% for Year 8
100% for Year 9
100% for Year 10
80% for Year 11
60% for Year 12
40% for Year 13
20% for Year 14
Based on staff estimates this request equals approximately $678,500 over a 14 year
period.
5.2.1.2
Staff Comments:
The C.B.D. C.I.P. includes an Increased Assessment Grant program which:

Reimburses the property owner a portion of the City taxes attributable to the
improvement and/or redevelopment of a property.

Financially assists the property owner and serves to phase-in the impact of tax
increases which would be experienced after a project opens.

Is subject to the overall $50,000 maximum for all combined grants and loans under the
C.B.D. C.I.P.
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Report to Development Services Committee
Meeting Date: July 27, 2015
Item: DS-15-161
Page 5

Recognizes that the project might not occur save and except for the Increased
Assessment Grant and that the City and community ultimately benefit from the project
and its increased assessment/tax base in later years, on-going spin-offs, etc.

Specifies that following completion of the work, a final building inspection and the
payment of all property taxes for each year, the Increased Assessment Grant (City
portion only) would be provided on a declining basis over a nine year period: 90% in
year 1, 80% in year 2, 70% in year 3, etc.
The 2015 assessment of the subject site is $1,690,750, equating to City taxes of
approximately $16,800 per year, based on the 2015 tax rates.
It is estimated that the City will realize taxes of ±$73,400 per year upon completion of the
subject development based on the 2015 tax rate and the assumption that the residential
units will be assigned to the multi-residential tax class by M.P.A.C.
The actual amount of the grant will not be known until a post construction assessment is
completed by M.P.A.C. Any grant would typically be based on the actual assessment.
Staff has no objection to the requested Increased Assessment Grant. If Council agrees to
an Increased Assessment Grant, it is recommended that the grant be capped at $678,500,
that all applicable taxes in any year be fully paid prior to the grant being paid back and that
the performance criteria in Section 5.3 be applied.
5.2.2 Forgivable Façade Improvement Loan
5.2.2.1
Bowood’s Request
Bowood has requested a 100% forgivable Façade Improvement Loan in the amount of
$750,000, payable at $75,000 per year for ten years.
5.2.2.2
Staff Comments
The C.B.D. C.I.P. contains a Facade Improvement Loan, with a 25% forgivable incentive
for the early repayment of the loan.
The C.B.D. C.I.P. provides that the maximum amount of any Façade Improvement Loan is
$15,000 per municipal street address or storefront subject to an overall maximum of
$45,000 per property owner for a building with multiple street addresses and storefronts.
Staff has no objection to the approval of Bowood’s requested forgivable Facade
Improvement Loan of $750,000 over a ten year period subject to the performance criteria
in Section 5.3 being applied to any approval.
5.2.3 Region’s Revitalization Program
5.2.3.1
Bowood’s Request
Bowood requests that the City apply for financial incentives under the Region’s
Revitalization Program.
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Report to Development Services Committee
Meeting Date: July 27, 2015
5.2.3.2
Item: DS-15-161
Page 6
Staff Comments
It is recommended that the City apply for financial incentives under the Region’s
Revitalization Program in the event the City approves financial incentives for this project.
5.3
Considerations and Format for Council Resolution
In making its decision on the requested incentives, Committee and Council should
consider, amongst other matters, the following:

The affordability of the requested incentives.

That, as a prerequisite to any incentives, Bowood be required to enter into an
agreement with the City to ensure certain performance criteria are met (e.g. no
incentives provided or paid unless and until project is finished to City’s satisfaction,
accessibility plan, completion date, etc.).
To assist the Development Services Committee, the following format can be used by the
Committee in preparing a recommendation to Council in respect to the request by Bowood
for financial incentives for 68-72 King Street East:
1. That, pursuant to Report DS-15-161 dated July 22, 2015, Bowood Properties (2006)
Inc. be provided the following financial incentives in respect to its proposed restoration
and redevelopment of a mixed use building at 68-72 King Street East under the City’s
Central Business District Renaissance Community Improvement Plan:
(a)
An Increased Assessment Grant to be paid as follows:
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Year 1 – 100%
Year 2 – 100%
Year 3 – 100%
Year 4 – 100%
Year 5 – 100%
Year 6 – 100%
Year 7 – 100%
Year 8 – 100%
Year 9 – 100%
Year 10 – 100%
Year 11 – 80%
Year 12 – 60%
Year 13 – 40%
Year 14 – 20%
That the total Increased Assessment Grant be capped at $678,500 over the 14
years; and
(b)
That the requested 100% forgivable Façade Improvement Loan in the maximum
amount of $750,000 paid in annual installments of $75,000 per year over a ten
year period be approved and that it be funded through an annual budget
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Report to Development Services Committee
Meeting Date: July 27, 2015
Item: DS-15-161
Page 7
contribution of $75,000 per year for 10 years to the Civic Property Development
Reserve.
2. That Bowood Properties (2006) Inc. enter into an agreement with the City setting out
performance criteria related to the approval of the Central Business District
Renaissance Community Improvement Plan including but not limited to:

Bowood, or a corporate entity to which title is given related to Bowood, acquires
ownership of the property by December 31, 2015;
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The incentives are not assignable to another party without the consent of the City,
acting reasonably;
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The subject development, including interior and exterior improvements, must be
complete and the building available for occupancy by March 30, 2017 and no
incentives will be provided or paid until the project is completed to the satisfaction of
the City;

The Commissioner of Development Services must approve an Accessibility Plan,
with input from the Oshawa Accessibility Advisory Committee, and this plan must be
implemented and maintained;
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The property, including any building, must be maintained in accordance with the
Property Standards By-law and the Ontario Building Code during the period of the
financial incentives;
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The owner receives approval for variances to Zoning By-law 60-94 to implement the
project (e.g. variance for number of parking spaces);
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Bowood Properties (2006) Inc. shall continuously comply with any City agreement;

Heritage Oshawa reviews all improvements to the exterior façade and provides
comments to Council and any plans be implemented as may be approved by City
Council if necessary under the Heritage Act;
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Any outstanding taxes are paid;
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That any Increased Assessment Grant will only be provided to Bowood Properties
(2006) Inc. after all applicable City taxes have been paid by the property owner;

Where possible, Bowood Properties (2006) Inc. shall use local trades and suppliers.
Bowood Properties (2006) Inc. must agree to a notification program to make local
trades and suppliers aware of the subject development and allow them an
opportunity to bid on the project;
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The use of the property is maintained as a mixed use building with 66 apartment
units and ground floor commercial uses;

Any other appropriate criteria considered advisable by the City Solicitor,
Commissioner of Development Services or Director of Planning Services;
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Report to Development Services Committee
Meeting Date: July 27, 2015
Item: DS-15-161
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
The 100% forgivable Façade Improvement Loan is provided based on actual
invoiced amounts for completed eligible work to the limit established by Council;
and
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The owner is not eligible to apply or receive any financial incentives under the
Heritage Tax Reduction Program for a minimum of 15 years after the approved
Central Business District Renaissance Community Improvement Plan incentives are
finished.
3. That the Commissioner of Development Services be authorized to execute any
agreement(s) with the owner to implement Parts 1 and 2 above in a form and content
satisfactory to the City Solicitor.
4. That Mayor Henry and Development Services Committee Chair Aker be authorized to
write a letter to the Region of Durham to request support for this project under the
Regional Revitalization Program.
5. That the Mayor and Clerk be authorized to execute any agreement with the Region of
Durham regarding the application for financial assistance under the Regional
Revitalization Program for the proposed redevelopment of 68-72 King Street East by
Bowood Properties (2006) Inc. in a form and content acceptable to the City Solicitor
and the Commissioner of Development Services.
5.4
Rationale for Support
Staff recommend C.B.D. C.I.P. grants for the following reasons:

Repurposing of the former Genosha Hotel advances the goal of the Oshawa Strategic
Plan related to downtown revitalization.

A number of action items in Plan 20/Twenty for Downtown Oshawa are addressed such
as:
(a) Working with private partners and potential funding tools to encourage the creation
of higher density apartment buildings in the downtown;
(b) Marketing the former Genosha Hotel to potential investors and developers; and
(c) Marketing vacant floor space for new retail and culinary uses.

The project will advance Provincial, Regional and Municipal planning policies that
promote residential intensification and job growth in Oshawa’s Urban Growth Centre.

The improvements are intended to address the condition of the property and any
Property Standards issues.

The repurposing of the subject site will improve and extend the historic landmark
presence of this significant cultural heritage resource in the City consistent with the
Heritage Designation of the site.
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Report to Development Services Committee
Meeting Date: July 27, 2015
Item: DS-15-161
Page 9
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The project will maintain the momentum in the downtown as a whole.
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The project will help create economic spin-offs.
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The project will provide additional housing opportunities in the downtown including
opportunities for post-secondary students.
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The project will help create more activity and opportunity in the downtown.
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Renovation of an existing building of this nature is more difficult and can be costly due
to unknown factors.
6.0
Financial Implications
Bowood’s total development costs for the project are estimated at ±$8.5 million.
The 100% forgivable Façade Improvement Loan in a maximum amount of $750,000, if
approved by Council, would be funded from the Civic Property Development Reserve
through an annual budget contribution of $75,000 per year for 10 years.
Should Council approve an Increased Assessment Grant, the amount (maximum
$675,500) of the annual grant will be included in the annual operating budget in the Taxes
Written Off Program.
The cumulative amount of Bowood’s request for financial incentives is estimated at
$1,428,500.
7.0
Relationship to the Oshawa Strategic Plan
The Recommendation advances the Economic Prosperity, Cultural Vitality and
Accountable Leadership goals in the Oshawa Strategic Plan.
Cindy L. Symons-Milroy, Ec.D., CEcD, Director,
Economic Development Services
Paul D. Ralph, BES, RPP, MCIP, Commissioner,
Development Services
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Attachment 1
Development Services Department
Item:
DS-15-161
Subject: Application under the Central Business District
Renaissance Community Improvement Plan,
Bowood Properties (2006) Inc.
Address: 68-72 King Street East
File:
B-1210-0054
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DS-15-161
Attachment 2
BOWOOD PROPERTIES, (2006) INC. 6A-170 The Donway West, SUITE 141 Toronto, Ontario M3C 2E8 TEL: 416-444-9061
FAX: 416-444-1724 E-mail: [email protected]
July 19, 2015
City of Oshawa
50 Centre Street South
Oshawa, ON L 1H 3Z7
Attention: Ms. Cindy Symons-Milroy
Director, Economic Development
Reference: 70 King Street East (former Genosha Hotel)
Dear Ms. Symons-Milroy:
Further to our meetings regarding the above-noted property, this letter will serve to
request financial assistance from the City of Oshawa for the restoration and
redevelopment of the former Genosha Hotel.
My company, Bowood Properties (2006) Inc. has entered into an agreement of
purchase and sale with 219957 Ontario Inc. to acquire the property. Our intent is to
construct 66 rental units (40 - 1 bedroom and 26 bachelor) on floors 2-6 with the main
entrance being off Mary Street N. These units will have full kitchen facilities including
refrigerator, stove, kitchen sink, ventilation, closet/storage space, a separate bathroom
with a shower and/or bathtub, a toilet and a wash basin. The balance of each one will
be completed in that of a typical rental apartment unit.
The ground floor and the basement will be finished to accommodate retail/restaurant
needs and specifications as required.
15
I have retained a local Project Manager who has been conducting due diligence on the
property in order to determine the nature and scope of work that needs to be
undertaken.
We are aware that Council approved incentives for Summers and Company a number
of years ago. Due to the continued deterioration of the building, there is significant work
that needs to be undertaken.
The following works and renovations to be completed are as follows:
1. the roof in it's entirely must replaced to current standards and building codes;
2. the parapet wall around the perimeter of the entire building due to inclement
weather conditions has deteriorated to a state that the entire structure must be
dismantled and reconstructed as well as all of the roof penthouses;
3. further brick works on the facade of the building in the amount of approximately
5,000 bricks must be repaired along with the equivalent amount of mortar joints
that require re-pointing;
4. approximately 130 windows from the 2nd to 61h floor inclusive must be removed
and replaced with custom made-to-measure windows along with appropriate
caulking and finishing;
5. all ground floor windows and entrances to be replaced to their original state;
6. all exterior decorative limestone features to be replaced;
7. the south-side and east-side facade of the building will be power washed and .
sealed with an environmentally friendly component;
8. In lieu of the fact that the two existing elevators do not meet current building
codes, it is necessary to remove and replace them as well as refurbish the
elevator shafts to meet current fire and building codes.
Items 2, 3, 4 and 7 require that special safety measures be taken which include
complete scaffolding of pedestrian sidewalks on King St. E. and Mary St. N..
As a result of this increased scope of work, we are asking for the following incentives
under the Central Business District Community Improvement Plan:
Facade improvement loan of $750,000 payable annually over a TEN year period.
This loan would be 100% forgivable;
16
Increased Tax Assessment Grant of 100% for the first TEN years from the
completion of renovations and then decreasing by 20% over the next FIVE years
until it matches the then current tax assessment.
These incentives are critical to making this project viable. Prior to closing on the
property, we need to know what level of support we are able to receive from the City of
Oshawa.
We are also requesting that the City of Oshawa submit an application to the Region of
Durham under their Regional Revitalization Program.
Subject to Council granting our funding request, and receiving approval from the
Region, we expect to start the project by August 15, 2015. We anticipate that the
project will be completed in sixteen months. Our estimated project costs are $8.5
million and we expect the post-construction market value to be approximately $14
million.
As you can see from the attached list of projects, I have extensive experience in the
development industry completing both new builds and redevelopment projects. My
professional team consists of BBA Architects and related engineering firms, Richard
Senechal, CEO of DUCA Credit Union-Financier, Steve Babor - Leasing Consultant,
and the undersigned.
I am enthusiastic to undertake this significant project in Oshawa. I firmly believe, as I'm
sure you will agree, that these improvements will enhance and uplift the City of Oshawa.
I look forward to Council's support of my request
Richard E. (Tracy) Christie, President
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RICHARD E. (TRACY) CHRISTIE
BOWOOD PROPERTIES (2006) INC.
6A-170 THE DONWAY W., SUITE 141
TORONTO, ON M3C 2E8
OFFICE: (416) 444-9061
Email Address: [email protected]
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Originally trained as a mechanical engineer, my career in real estate development as a principal commenced in 1974.
Since then I have developed over 325 real estate projects which included apartment buildings, office buildings as well as
single family housing. Other commercial development projects ranged in size anywhere from 2,000 square feet freestanding buildings up to 350,000 square feet of enclosed two level commercial malls totaling approximately 4,500,000
square feet .
As a developer, I manage the entire real estate development life cycle including acquisition, design, construction,
disposition and financial budget The following is a summary of my involvement in each project:
-Review appraisals, market studies, site and economic data to assess financial/market feasibility;
-Oversee design process: site planning, architecture, engineering, space programming, interior design;
-Obtain entitlements: rezoning, permits, environmental clearances, provincial and local licenses, community and
political support, utility and ingress/egress easement, economic development incentives;
-Negotiated and execute retail lease agreements, land purchase contracts, exclusive market agreements;
-Create development budgets (land, soft, hard costs), proforma, income and cash flow statements;
-Hire and manage each project's team of general contractors, architects, engineers, environmental consultants,
designers;
-Oversee all construction: track progress and milestones against schedules, monitor costs against budget, approve
change orders, make value engineering decisions, issue directives as owner, troubleshoot projects during and after
construction;
-Monitor occupancy levels, operating expenses, debt service coverage ratios, net operating income.
On a personal note, I am a founding member of the Jennifer Ashleigh Foundation, active in raising funds for the cure of
Cystic Fibrosis and other childhood diseases.
1
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The following is a summary of some of projects I have completed commencing in the year 1974 to the
present.
PROJECTS
Commercial Developments Outside of the G.T.A.
Project Name
Location
Size (Sq. Ft.)
Woodlawn Rd./
Edinburgh Rd.
Guelph
20,000
Swiss Chalet/Harvey's/
Tim Horton's Donuts
Upper James
Street
Hamilton
Mixed-Use
5-Storey Office
Co-operators Insurance
Edgehill Drive
Barrie
130 unit Apartment
10-Storey Building
A.R.P. Program
Highbury Ave./
Cheapside Rd.
London
25,000
Swiss Chalet/ Harvey's/
Frank Vetere's
Adelaide Street
London
4,000
Freestanding Beckers
Oxford Street
Chatham
10,000
Beckers/Little Cesar's Pizza
Southdale Rd./Ernest
Avenue
London
25,000
Beckers /O'Tooles
Peter Street
Port Hope
40,000
Shoppers Drug Mart/
Bargain Harolds/
Color Your World
Division St./
Concession St.
Kingston
12,000
Motorola Mobile/
Plumbing Mart
Gardiners Rd/
Taylor Kidd Blvd.
Kingston
15,000
Co-operators Insurance/
M & M Meats
Bell St./Front Street
Belleville
150,000
2
Anchor/Tenant
Building with
Main Floor Retail
19
Loeb Foods/C.I.B.C.,
Jumbo Video/ Bargain
Harolds
Project Name
Location
Size (Sq .Ft.)
Anchor/Tenant
Hamilton Road/
Highbury Rd.
London
10,000
Commissioners Road/
Highbury Rd.
London
300,000
Confederation Street
Sarnia
40,000
Gas Bar/Hasty Market
King William Street/
Hwy #11
Huntsville
10,000
Blockbuster Video
Dundas St. East
Phase I
Trenton
150,000
Canadian Tire/Loblaws
Dundas St. East
Phase II
Trenton
10,000
Blockbuster/Harvey's/
Swiss Chalet
Woodbine Avenue
& Morton
Keswick
10,000
Swiss Chalet/Harvey's/
Country Style Donuts
Queen St. South
Cambridge
8,000
Blockbuster/Burger King
Country Style Donuts/
Pizza/ Videoflicks
Loeb Foods/Zellers
(Enclosed MallConversion/Retrofit of
existing building)
Commercial Developments In the G.T.A
Project Name
Location
Size (Sq. Ft)
Queen St./Carlaw Ave.
Toronto
10,000
Shoppers Drug Mart/
7-Eleven Store (Conversion/
Retrofit of existing building)
Highway #2
Liverpool
Pickering
10,000
Burger King/Mary Brown's
Chicken/Coffee Way
Lawrence/Pharmacy
Scarborough
15,000
2-Storey
Canada Trust/St. Clair
Paints
3
20
Anchor/Tenant
Project Name
Location
Size (Sq. Ft.)
Lawrence Ave./
Gulf Club Rd.
Scarborough
10,000
Canada Trust/Beckers
(Conversion/Retrofit of
existing building)
Kingston Rd/Midland
Scarborough
5,000
Mac's Milk
(Conversion/Retrofit of
existing building)
Lakeshore Rd./Hurontario
St.
Mississauga
5,000
National Trust
Port Union/401
Village of Abbey Lane
Scarborough
220,000
A & P/Canadian Tire/
Bank of Montreal/ CIBC
Jane/Finch
York Gate Mall
North York
350,000
2-Storey Enclosed Mall
Loeb Food Store/Zellers
Dundas St./Thickson Rd.
Whitby
35,000
LCBO/TD Bank/
Kentucky Fried Chicken
Morningside Rd./Finch
Scarborough
15,000
National Bank/
Hasty Market
Yonge/John Street
Thornhill
5,000
TD Bank
York Mills/Leslie
North York
7,500
Country Style Donuts/
Sketchley Cleaners/
Rogers Video
Bloor/Dufferin
Toronto
6,000
Coffee Time/Cadet Cleaners
Rexdale/Kipling
Etobicoke
5,000
Pizza Pizza/National Money
Hwy #7/Woodbine
Markham
25,000
4
21
Anchor/Tenant
Mart
Kinko's Gateway
Computers/Development
Bank of Canada
Completed Projects 2005-2015
Project Name
Location
Size (Sq. Ft.)
Eglinton/Bermondsey
North York
7,500
Mac's Milk/Tim Hortons/
Parker Cleaners
Sheppard/Victoria Park
Scarborough
10,000
CIBC/Coffee Time
Sheppard/Warden
Scarborough
10,000
TD Canada Trust
(Conversion/Retrofit of
existing building)
Yonge/Eglinton
Toronto
3,000
Reebok Shoes
(Conversion/Retrofit of
existing building)
Lakeshore Rd E/3rd Line
Oakville
10,000
Shoppers Drug Mart/
Pizza Pizza
Hwy #2/Harwood
Ajax
30,000
National Money Mart/
Fox & Fiddle/Pizza Pizza/
Hakim Optical
Yonge St./Lawrence Ave.
Toronto
3,000
Pizza Pizza
(Conversion/Retrofit of
existing building)
Upper Middle/
Walkers Line
Burlington
25,000
Tim Horton's/Pizza Pizza/
Hakim Optical/Guardian
Drugs
Eglinton/Markham Rd.
Scarborough
7,500
National Money Mart/
Hasty Market/Dentist
Dundas Street West
Whitby
25,000
Tim Horton's/National
Money Mart
Islington Ave./Jutland
Toronto
3,000
Freestanding 7-Eleven
C-Store & Gas Bar
Taunton/Brock
Whitby
15,000
Jug City/Dentist/Video King
5
22
Anchor/Tenant
Project Name
Location
Size (Sq. Ft.)
Anchor/Tenant
Main Street
Stouffville
15,000
M &M Meats/Pizzaville/
Jeweller
(Conversion/Retrofit of
existing building)
Deboer's/Yonge St.
Toronto
40,000
Rexall/Dollarama
(Conversion/Retrofit of
existing building
King Road
King City
6,000
RBC/Subway/ Dentist
St. Mary St/
Yonge St.
Toronto
70,000
6-Storey Building
Ontario Liberal Party Federal and Provincial
(Conversion/Retrofit of
existing building)
--------------------------------------------------------------------------------------------------------------------------------------------------
__________________________
R.E. Christie (Tracy), President
6
____________________________________
Date
23
DS-15-161
Attachment 3
Excerpts from the Minutes of the Council Meeting held on November 24, 2008
19.
Application under the Central Business District Renaissance
Improvement Plan, Summers & Company, 70 King Street East
(DS-08-493)
Community
(Ward 5)
Recommendation
(CARRIED)
Whereas Summers & Company, in trust for a company to be incorporated with
liability, has entered into an agreement to purchase 70 King Street East (the
“property”), with the intent of repurposing the building located thereon for
commercial and residential uses; and,
Whereas the purchaser has applied for assistance under the said Community
Improvement Plan to cause the redevelopment to occur; and,
Whereas the City desires that the said lands be redeveloped for mixed commercial
and residential uses;
Now therefore it is hereby resolved that:
1.
Notwithstanding Appendix 2 of the Central Business District Renaissance
Community Improvement Plan, Summers & Company, or the corporate vehicle
to which title to the property is given, be provided with a grant under the
Increased Assessment Grant Program upon the following terms and
conditions and the terms and conditions to be enshrined with the subsequently
mentioned development agreement, and the terms and conditions contained in
Appendix 2 to the Community Improvement Plan shall not apply:
a)
Part of the City of Oshawa portion only (does not include Regional or
Education taxes) of the post-completion property tax bill shall be
granted back to Summers & Company based on the increase to the
City’s portion of the annual tax bill resulting from a reassessment of
the property under the Assessment Act in the year in which the
redevelopment opens to the public over the base year taxation
amount;
b)
The base taxation year shall be 2009;
c)
The amount of the annual grant provided during the term will be 100%
of the City’s portion of the post-completion tax increase, as
determined above, for the first calendar year of operation of the
redevelopment, commencing the first full calendar year in which taxes
are paid after the first occupancy of the residency component of the
redevelopment has occurred and the Property has been reassessed;
24
d)
The amount of the annual grant for the City’s portion of the postcompletion tax increase for each successive calendar year will be
reduced by 10% per year such that the grant back for the second year
will be 90% of the post redevelopment/assessment taxes, the third
year will be 80% and so on until the 11th calendar year following the
year in which the redevelopment opens to the public when the grant
back will fall to 0% and no grant back of post-completion tax increase
will be payable for the 11th or any succeeding year thereafter;
e)
The tax grant will only be paid following the payment of all property tax
installments for the year in which the tax was levied;
f)
Tax increases resulting from general re-assessments (meaning reassessments of the Property in years after the first occupancy of the
residency component of the redevelopment), changes in tax
legislation or increases in the tax rate are not eligible to be considered
for the purposes of calculating the grant;
g)
Notwithstanding the foregoing, and for greater certainty, the City will
not pay an annual grant which exceeds the City portion of the property
tax collected in any year on the increased assessed value; and
h)
Should the Property be used for any use other than the
redevelopment during the term or the provisions of the development
agreement are not fully respected and complied with, no grant shall be
provided for the calendar year in which the use ceases or default or
non-compliance with the development agreement occurs, or for any
year subsequent and the City’s obligations shall be at an end.
2.
The City of Oshawa Building Permit Fees associated with the redevelopment
shall be granted back, subject to completion of the redevelopment to the
satisfaction of the City’s Chief Building Official to an upset limit of $5,000
which is the CIP program maximum limit.
3.
A façade loan in the amount of $350,000 be provided, upon the following
terms and conditions and the terms and conditions to be enshrined with the
subsequently mentioned development agreement, and the terms and
conditions contained in Appendix 2 to the Community Improvement Plan
shall not apply, with the funds to be provided to the applicant in annual
installments of $35,000 each over a ten year period with each installment of
the loan being forgivable.
4.
Each disbursement of the façade loan and increased assessment grant will
only be paid, if the owner can continuously, throughout the entire term of the
development agreement, satisfy the following performance measures:
a)
Summers & Company enters into, and continuously complies with, a
development agreement with the City;
b)
Summers & Company, or the corporate vehicle to which title to the
property is given, acquires ownership of the property. The agreement
25
and related grants may be assignable to another party subject to
approval by the City;
5.
20.
c)
Ownership, interior and exterior improvements and occupancy to be
completed by September 1, 2010;
d)
Heritage Oshawa approves all improvements to the exterior façade
and these plans must be implemented;
e)
City Council approves an Accessibility Plan with input from the
Oshawa Accessibility Advisory Committee and these plans must be
implemented;
f)
A business plan is submitted by Summers & Company to the
satisfaction of the City’s Commissioner of Corporate Services;
g)
All outstanding taxes are paid;
h)
The applicant receives approval for variances to the Zoning By-law
60-94 to implement the project (e.g. variance to the required number
of parking spaces) and continuously complies with any decision;
i)
The property is maintained in accordance with the Property Standards
By-law and Ontario Building Code during the duration of the
development agreement with the City;
j)
The grant is based on actual invoiced amounts for the completed work
to the limit established by Council;
k)
The use of the property is maintained as a mixed use
commercial/apartment building with ground floor commercial and a
minimum of 85 apartment units; and cannot be used as a lodging
house or apartment-hotel other than a supervised student residence;
and,
l)
Any other appropriate criteria considered advisable by the City
Solicitor or the City Manager, which shall be enshrined within the
development agreement.
That prior to the execution of the development agreement, the detailed
façade work and building elevations shall be approved by Heritage Oshawa
and City Council.
Summers & Company - Application to the Region of Durham (DS-08-501)
Wards)
Recommendation
(All
(CARRIED)
That the City of Oshawa support Summers & Company in submitting an application
to the Region of Durham under the Community Improvement Program related to
property located at 70 King Street East.
26