GDS-005 - Heritage Grant Program_2012SAINT 10IIN
Subject: Heritage Grants Policy
Category: Policy
Policy No.: GDS -005
M&C Report No.: 2012-214
Effective Date: 2012-08-27
Next Review Date: (3 years)
Area(s) this policy applies to: Growth and
Office Responsible for review of this Policy:
Community Development
Growth and Community Development
Related Instruments:
Policy Sponsor: Commissioner Growth and
Community Development
Document Pages: This document consists of 11
pages.
Revision History:
Common Clerk's Annotation for Official eRecord
Date of Passage of Policy: August 27, 2012
1 certify that this Policy was adopted by Common Council as indicated above.
May 5, 2017
Common Clerk
Date
Date Created: Common Council Approval Date: Contact:
2012-08-03 2012-08-27
Commissioner Growth and Community
Development
TABLE OF CONTENTS
1. RESOLUTION.................................................................................................................................1
2. COUNCIL REPORTS.......................................................................................................................2
3. POLICY..........................................................................................................................................8
POLICY — 2012 HERITAGE
GRANT PROGRAM
Common Council Meeting — August 27, 2012
RESOLVED that the Heritage Grant Policy be established in accordance with the Policy and
funding levels set out in correspondence from the City Manager to Common Council, dated the
3 day of August 2012, with such amendments to take effect retroactively on January 1, 2012
which maintains the Heritage Conservation Plan Grant, Conservation Development Grant and
Heritage Maintenance Grant programs.
kZ I—
EPOR '" TO COMMON COUNCIL
M & C 2012-214
The coy ofsmt john
August 17, 2012
His Worship Mayor Mel Norton
and Members of Common Council
Your Worship and Members of Council:
SUBJECT: Follow -Up Respecting the 2012 Heritage Grant Program
Attached, please find all of the reports that have been prepared respecting the disbursement of
funds available under the Heritage Grant Program. All of the background related to the issue is
provided in the attached report dated August 3, 2012. At the Common Council meeting on
August 13, 2012, Council expressed a desire to reconsider whether grant funding under the
Heritage Maintenance Grant program should be maintained.
Common Council essentially has the following options at its disposal:
1. That the Heritage Grant Policy be established in accordance with the policy and funding
levels set out in correspondence from the City Manager to Common Council , dated the 3d
day of August, 2012, with such amendments to take effect retroactively on January I `$
2012 which maintains the Heritage Conservation Plan Grant, Conservation Development
Grant and Heritage Maintenance Grant programs.
2. That the Heritage Grant Policy be established in accordance with the policy and funding
levels set out in correspondence from the City Manager to Common Council, dated the 26th
day of March, 2012, with such amendments to take effect retroactively on January 1st, 2012
which maintains the Heritage Conservation Plan Grant and Conservation Development
Grant programs but discontinues the Heritage Maintenance Grant program.
That Common Council adopt either the proposed Heritage Grants Policy identified in
correspondence from the City Manager to Common Council, dated the 2e day of March, 2012
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August 17, 2012
Page 2
or correspondence from the City Manager to Common Council , dated the 3d day of August,
2012, with such amendments to take effect retroactively on January Ist, 2012.
Respectfully submitted,
Ken Forrest, MCIP, RPP
Commissioner
Growth and Development Services
I.—A
P
JSP trick Woods, CGA
Cry Manager
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REPORT TO COMMON COUNCIL
hT1f:XOW0110111
August 3, 2012
His Worship Mayor Mel Norton
and Members of Common Council
Your Worship and Members of Council:
SUBJECT: The 2012 Heritage Grant Program
BACKGROUND
The caval Win! Ibbe
On February 1" 2012, Common Council adopted the City's 2012 Operating Budget which
included fee increases for heritage applications and a reduced funding level for the Heritage
Grants program. The 2012 Operating Budget reduced the available grant funding from $200,000
to $100,000. Council sought the advice of staff and the Heritage Board on the implementation of
these reforms and on March 12, 2012 held the required public hearing to consider the proposed
fee increases.
In response to feedback received at the public hearing objecting to the impact of the fees on
smaller heritage maintenance projects, Council opted not to move forward with the heritage fee
increase. Council further decided to absorb the shortfall in anticipated revenue through a further
$10,000 reduction in the heritage grant program. This means that there is now only $90,000
available for the heritage grant program in 2012.
The City of Saint John administers three different grant programs in Heritage as follows:
I . Heritage Maintenance Grants: Small scale grants of 20% of eligible costs, up to a
maximum of $1,000 per year, are provided for routine maintenance or improvements
such as painting, repairs, and storefront signage. In 2011, 44 % of the total applications
processed under the program were maintenance grants accounting for about 11% of the
total grants budget.
2. Heritage Conservation Grants: Heritage conservation giants are provided which target
support for larger conservation projects which have a conservation plan in place (see `Y
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below). In 2011, these applications represented about 4411/a of the total applications and
accounted for 83% for the total grants budget.
These grants provide funding at 20 to 40% of eligible costs, up to $10,000 (fine 40%
funding ratio covers masonry and other structural work, as well as repairs to original
windows and doors).
3. Heritage Conservation Plan Grants: Grants are provided to offset the costs of retaining a
design professional to develop a Conservation Plan for designated heritage properties.
Conservation Plans are undertaken by a design professional (architect or engineer) and
provide guidance on how best to conserve a building by identifying and prioritizing
required heritage conservation work. Costs of having these plans prepared are funded at
50 %, up to an established maximum depending on the size and complexity of the
building. In 2011, these represented about 12% of the total number of applications and
611/o of the grant funding.
For the past number of years, the annual grant budget of $200,000 has not been sufficient to fund
all requests for grant funding. The total grant envelope has been allocated on a first -come -first-
served basis, with funding usually fully committed by late summer/early fall.
At the March 26, 20I2 meeting of Common Council, concern was expressed respecting the staff
recommendation to focus the significantly reduced grant funding on the more significant
conservation projects. Council expressed a desire to maintain some grant funding for the small
heritage maintenance projects. The following resolution was adopted:
"RESOLVED that the proposed 2012 Operating Budget Heritage Grant Reforms be
referred to the City Manager for a revised recommendation to include heritage
maintenance grants. "
On April 23, 2012, Common Council received correspondence from the Heritage Development
Board recommending that all of the grant programs be maintained but that the maximum ceilings
for grant funding be reduced to $5,000 for Heritage Conservation Grants and $500 for Heritage
Maintenance Grants. Council referred the correspondence from the Heritage Development
Board to the City Manager for a report and recommendation.
DISCUSSION
Based on the discussions held at Common Council in the spring and the conversations at the
Heritage Development Board (HDB), there appears to be a desire to maintain the three grant
programs despite there now being less than half of the funding that has been available annually
in recent years. To implement the will of Council and the HDB, the only way to achieve this is
to reduce the amount of money provided to each grant recipient. Even with the $200,000
envelope provided in years prior to 2012, grant funding has only been available on, a first-come—
first-served basis as the envelope is not sufficient to provide money to all eligible property
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owners. As of July 11, 2012, total requests for grant funding in all programs total $196,660
based on the existing criteria. As discussed previously, there is now only $90,000 in grant
funding available resulting in the need to make major changes to the funding caps and funding
ratios.
The following table provides the approach advocated by Council and the HDB and the resulting
scale and scope of the grant program for 2012.
Type of Grant
Current Funding Caps
Option Recommended by
ADB
Heritage
20% to maximum of $1,000 per year for
15% to $500 maximum
Maintenance
routine maintenance.
Grants
Heritage
20 to 40% up to a maximum of $10,000
15 to 25% to $5,000
Conservation
depending on the type of work.
maximum
Grants
Heritage
These costs are funded up to 50 % to an
50% to $1,000 maximum
Conservation
established maximum depending on the size
Plan Grants
and cam lexity of the project.
Under the criteria proposed by the Heritage Development Board, the total value of requests year
to date (to the end of July) totals $105,625. It is clear that program funding will not be adequate
to provide grant funding to all applicants. It is presumed that Common Council wants to
continue with the practice of providing grant funding on a first -come -first-served basis so those
who apply in the last half of 2012 will likely not receive any grant funding,
FINANCIAL IMPLICATIONS
There are financial implications for grant recipients as a result of the grant policy adopted by
Common Council but the City's expenditure is capped at $90,000 for 2012.
RECONAMNDATION
Given the direction previously provided by Common Council, it would be appropriate for the
following resolutions to be adopted:
That the Heritage Grants Policy incorporate the following revisions to the Heritage Grants
program:
EL The maximum funding for preparation of a Conservation Plan by a design
professional be set at $1,000 at a funding ratio of 50%;
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b. The maximum Conservation Development Grant be set at $5,000 at a funding ratio
of 15% to 25% with 25% being reserved for masonry/structure repairs and repairs to
original windows/doors for projects that have a Conservation Plan in place;
C. That the maximum Heritage Maintenance Grant be set at $500 at a funding ratio of
15%.
2. Common Council adopt the amended Heritage Grants Policy as set out in Appendix A to
correspondence from the City Manager to Common Council , dated the 3rd day of August,
2012, with such amendments to take effect retroactively on January lo, 2012; and
Respectfully submitted,
Ken Forrest, MCIP, RPP
Commissioner
Growth and Development Services
J. Patrick Woods, CGA
City Manager
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Appendix A: Recommended Reforms to the Heritage Conservation
Grant Guidelines
Objectives: Grantsforh6M&aae Consarvation Prrva am
Primary:
• To encourage retention of designated heritage buildings and their character -defining
elements, Including their traditional materials and details;
• To maximize conservation of the character defining elements of designated heritage
buildings using an approach of:
o understanding,
o documenting,
o planning (for proposed use) and then
o intervening;
Secondary:
• To create employment opportunities for the citizens of Saint John;
• To discourage demolition of designated heritage buildings;
• To reduce landfill and the Impact on the environment by demonstrating that the
greenest building is one that already exists;
• To encourage owners to undertake necessary but costly major conservation
projects.
Categoriesof Grants
To be eligible for receipt of funds from the Grants forHer&ge Conservation Program
the building must be in a Heritage Conservation Area designated by Common Council.
There are three categories of grants:
1) Heritage Conservation Plan Grant
o 50% of costs, up to $1000, for commercial or residential buildings to retain a
design professional to prepare a Conservation Plan for a building.
2) Heritage Conservation Grant
• 15-25% of eligible costs up to $5,000 per year, based on the amount spent on
conservation of character -defining elements on the exterior of a building
(excludes contemporary roof renovations and new Infill construction); provided a
conservation plan is in place.
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3) Heritage Maintenance Grant
• 15% of costs, up to $500 based on the amount spent on conservation of
character -defining elements on the exterior of a building (excludes contemporary
roof renovations and new infill construction).
Policies for AoRrQ011 GranfsfbrMCdtag&Conservab'on Pra9ram
The Grants forH en a 'm Bvgr-am Is an Incentive program designed to
encourage owners to meet the spirit and intent of the Saint.7ohn Heritage Conservation
Areas Bylaw, as expressed in the national Standards for Conservation of Historic Places
and Saint John's own series of Practical Conservation Guldelines Heritage Grants are
not construction subsidies; they are intended to assist owners to retain traditional
materials and details of character -defining elements and, if necessary, replace them
with new components, matching the original materials and profiles:
1) A heritage grant will only be approved if:
o a Heritage Permit was approved before work started; and
o there are no outstanding violations and/or Building Permit warrants; and
A Heritage Conservation Grant will only be approved If a Conservation Plan for
the building has been prepared by a design professional.
2) A heritage grant will not be approved for work Involving the use of contemporary
or alternate materials,
3) A heritage grant will only be released if:
o work is completed as indicated on the approved Heritage Permit;
o work is completed in a professional manner and shows good
craftsmanship and attention to detail.
4) A heritage grant will only be released following submission of:
o a request for payment;
o receipts or cancelled cheques; and
o confirmation by the owner and contractor that the work was completed in
accordance with the conditions of approval and as indicated on the
Heritage Permit.
5) Heritage grants are provided on a first -come -first-served basis based on available
funding.
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