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2019-03-21 Growth Committee Agenda Packet - Open Growth Committee Meeting Open Session February 12, 2019 MINUTES - OPEN SESSION GROWTH COMMITTEE MEETING FEBRUARY 12, 2019 AT 1:30 P.M. TH 8 FLOOR COMMON COUNCIL CHAMBER (Ludlow Room), CITY HALL Present: Mayor D. Darling Councillor J. MacKenzie Councillor B. Armstrong Councillor R. Strowbridge Absent: Deputy Mayor S. McAlary Also Present: City Manager J. Collin Deputy City Manager N. Jacobsen Commissioner Growth and Community Development J. Hamilton Deputy Commissioner Building and Inspection Services A. Poffenroth Deputy Commissioner Growth and Community Development P. Ouellette Population Growth Manager D. Dobbelsteyn Deputy Commissioner Administrative Services I. Fogan Director Strategic Real Estate Services S. Carson Director Corporate Performance S. Rackley-Roach IT Manager S. Ranson Continuous Improvement N. Moar Acting Communications Manager L. Caissie Administrative Assistant K. Tibbits 1. Meeting Called To Order Mayor Darling called the Growth Committee open session meeting to order. 1.1 Approval of Minutes December 11, 2018 Moved by Councillor Strowbridge, seconded by Councillor MacKenzie: RESOLVED that the minutes of December 11, 2018 be approved. MOTION CARRIED. 1.2 Website Project Overview Verbal Update Ms. Hamilton stated that was identified as a priority for 2019. The website plays a key role in terms of interfacing with citizens on service delivery, portraying an image of the community, connecting with investors, and engaging people interested in re- locating to the City. Ms. Ranson provided an overview of the website design project and received feedback from the committee. A designer has been selected through an RFP process. Growth Committee Meeting Open Session February 12, 2019 In response to comments regarding the development of a comprehensive plan that identifies goals and outcomes, and aligns with a branding and communication strategy prior to the refresh of the website, Mr. Collin noted that a strategic communications plan is being developed. The goal is to have the proper usability and design in place, and then incorporate the strategic communications plan into the web design. It will be a valuable tool to communicate the strategy once it has been developed. Moved by Councillor MacKenzie, seconded by Councillor Armstrong: RESOLVED that the Website Project Overview Verbal Update, be received for information. MOTION CARRIED. 1.3 Rescheduling March Growth Committee Meeting Verbal Discussion th The March 5 Growth Committee meeting will be re-scheduled to Thursday, March 21, 2019 at 1:30 pm. Adjournment Moved by Councillor MacKenzie, seconded by Councillor Strowbridge: RESOLVED that the open session meeting of the Growth Committee be adjourned. MOTION CARRIED. The open session meeting of the Growth Committee held on February 12, 2019 was adjourned at 2:00 p.m. ______________________________________ Recording Secretary - ±¢§ ͷͶǾ ͷ͵Ͷ; '±®¶³§ #®¬¬¨³³¤¤ 0±¤²¤­³ ³¨®­ ACTION strategic goals. AREAS OF FOCUS drive measurable outcomes towards entrepreneur development, business The intentional actions of the plan will Building on our regional strengths, we must focus on workforce development, Greater Saint John to grow the economy. investment and innovation, and marketing VISION DEVELOPMENT development organizations. Consistent, long-term economic growth for Greater Saint John region. of goals that impact multiple economic meant to be a galvanizing vision and set ALIGNMENT IN ECONOMIC This is a plan to guide our efforts, but it is (average of 99.1) ( ( 1 index point per year INCREASE IN LABOUR FORCE 2.5% increase per year INCREASE IN GDP 0.5% greater than provincial GDP(average 1%) INCREASE IN EMPLOYMENT 2.5% increase per year INCREASE IN CONSUMER CONFIDENCE by required to grow the regional economy and AREAS OF FOCUS WORKFORCE DEVELOPMENT Attract and retain talent to support the growth of our existing companies and attract new companies to our region.ENTREPRENEUR DEVELOPMENT Build the Saint John entrepreneurial ecosystem with a focus on scalable start-ups.BUSINESS INVESTMENT & INNOVATION Promote the value proposition for investment and support companies in being globally competitive. MARKETING GREATER SAINT JOHN Tell the Greater Saint John story to attract people, investment, and support the growth of our companies. 2018 Corporate goals Three catalytic projects 2018 Project portfolio DFO Simpson Truck and Parts Facilicorp Dobson Group Cooke Aquaculture St. James Street St. James Street Townhomes City Hall 8 573,208$ 2 0 2 7 964,297$ 2 0 2 6 586,287$ 2 0 2 5 320,377$ 2 0 2 4 974,367$ 2 0 2 3 350,457$ 2 0 2 2 447,447$ 2 0 2 1 055,537$ 2 0 2 0 406,165$ 2 0 2 9 905,583$ 1 0 2 8 000,128$- 1 0 2 2018 Corporate goals & results Dwh‘I /haaL99 w9thw Report Date March 13, 2019 Meeting Date March 21, 2019 His Worship Mayor Darling and Members of Growth Committee SUBJECT: One Stop Development Shop Customer Service Enhancement OPEN OR CLOSED SESSION This matter is to be discussed in open session of Growth Committee. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Jacqueline Hamilton Jacqueline Hamilton John Collin Amy Poffenroth Phil Ouellette RECOMMENDATION Receive and file this update on planned customer service enhancements to the One Stop Development Shop, proposed as a priority deliverable for the . EXECUTIVE SUMMARY The purpose of this report is to update the Growth Committee on planned enhancements to the customer service experience provided by the C Stop Development Shop housed within Growth & Community Development Services. Accelerating is critical to addressing Saint financial challenges and ensuring long term prosperity. The customer s a key contributor to improve investor confidence and support tax base growth. Working together with DevelopSJ, the recommended customer service enhancement plan will be delivered as a priority City initiative in 2019, taking customer service to the next level and delivering a best in class solutions-oriented customer service model to drive smart growth. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT Common Council has adopted a set of Council Priorities: 2016-2020 and under recognized by residents and businesses as a positive and supportive city. We - 2 - grow in a smart way and attract talent, innovation and opportunities so all people can thriv Accelerated growth is needed to address the financial challenges facing the City. Customer service excellence and the ease of investment and achieve tax based growth. REPORT The purpose of this report is to update the Growth Committee on planned enhancements to the customer service experience Stop Development Shop housed within Growth & Community Development Services. Accelerating growth is critical to addressing Saint financial challenges and ensuring long term prosperity. The customer service experience a key contributor to improve investor confidence and support tax base growth. Context: One Stop Development Shop Customer service Improvement , the City has demonstrated strong leadership in transforming its building and development approval services into a customer focused One Stop Development Shop. Key highlights the major improvements realized over the past five years, based upon significant client engagement include: One Stop Shop implemented transformational & structural change bringing staff under one roof Defined customer service role as Facilitators vs Regulators and implemented 40 plus service improvements to eliminate red tape and streamline approvals and value added services to our clients KPIs established that drive performance & efficiency Modernized suite of development bylaws adopted to support smart growth Initiation of Heritage Bylaw / Neighbourhood Plan to catalyze growth Developed a suite of incentives to support urban development and heritage reinvestment Completed (3) continuous improvement projects to improve efficiencies during the permit intake process, move to digital notification of planning applications, and enable a streamlined heritage approvals. New organization, DevelopSJ has been created to drive tax base growth and will play an important role in attracting and supporting investors working in collaboration with Growth & Community Development Services. - 3 - While the City has improved its service over the past five years, there continues to be challenges experienced by our clients Development Shop and potential areas of improvement: Customer resolution remains siloed, and customers are having an inconsistent experience. Escalation is not streamlined and accessing various parties. Lack of formalized customer feedback system to track customer satisfaction levels (beyond efficiency metrics). Development processes need to be clear and solutions oriented. The lack of clear expectations is causing frustration and costly resubmissions. In some cases, expectations may not always be reasonable. Perception is reality negative experiences reputation and investment attraction efforts. Working together with DevelopSJ, the recommended customer service enhancement plan to be delivered as a priority City initiative in 2019 will take the customer service offered at the One Stop Development Shop to the next level and deliver a best in class solutions-oriented customer service model to drive smart growth. 2019 Work plan: One Stop Development Shop Customer Service Improvement Growth & Community Development Services have identified the need to proactively implement customer service improvements to continually improve development clients. The recommended improvement plan will focus on three areas: Њ͵ CƚƭƷĻƩźƓŭ ğ ĭǒƭƷƚƒĻƩ ĭĻƓƷƩźĭ ĭǒƌƷǒƩĻͳ Ћ͵ wĻƒƚǝźƓŭ ĬğƩƩźĻƩƭ ğƓķ źƓĭĻƓƷźǝźǩźƓŭ ƭƒğƩƷ ŭƩƚǞƷŷͳ ğƓķ 3. LƒƦƩƚǝźƓŭ ƚǒƩ ƦƩƚĭĻƭƭĻƭ Ʒƚ ƩĻķǒĭĻ ƩĻķ ƷğƦĻ ğƓķ ĭƚƭƷƭ͵ Some improvements can be actioned immediately as short term wins; others require policy or bylaw changes or more robust process improvement. Priorities will be established working collaboratively with DevelopSJ and our development clients and include the following customer service improvements for 2019: 1. Effective immediately, źƓƷƩƚķǒĭĻ ğ ağƓğŭĻƩ ƚŅ /ǒƭƷƚƒĻƩ {ĻƩǝźĭĻ hƦĻƩğƷźƚƓƭ ŅƚƩ ƷŷĻ hƓĻ {ƷƚƦ 5ĻǝĻƌƚƦƒĻƓƷ {ŷƚƦ. This role, originally conceived with the One Stop Development Shop model, will be front facing and charged with ensuring seamless customer service experience, providing a single point of contact for the customer to troubleshoot issues, facilitate solutions and roll out customer improvements. This position will work with a quick reaction team to resolve customer issues - 4 - & drive improvement. This position will be filled as a secondment opportunity within existing establishment. 2. 5ĻƌźǝĻƩ ğ ƦƩƚŭƩğƒ ƚŅ ĭǒƭƷƚƒĻƩ ƭĻƩǝźĭĻ ƷƩğźƓźƓŭ for front line staff to continue to build and strengthen competencies around customer service excellence and equip staff with skills needed to navigate the important roles of facilitating solutions. 3. In collaboration with DevelopSJ, host engagement sessions with our respective teams and ķĻǝĻƌƚƦĻƩ Ή ĭƌźĻƓƷ Ņƚĭǒƭ ŭƩƚǒƦƭ to understand pain points for clients, yield and test ideas for improvement and set priorities in terms of implementing customer service process improvements. 4. Action short term customer service improvements including ǒƦ Ʒƚ ЊЉ ƆǒƭƷ ķƚ źƷ źƓźƷźğƷźǝĻƭ that will cut red tape and add value for clients. The identification of priorities will be based on client engagement feedback. improvements that can be implemented to cut red tape or costs and add value for clients. The list will include improvements such as streamlining of heritage approvals to reduce timeframes for minor renovations and phased permits for site or infrastructure improvements to enable construction projects to move forward faster. 5. CğĭźƌźƷğƷĻ ƷŷĻ ğķƚƦƷźƚƓ ƚŅ ƷŷĻ bĻźŭŷĬƚǒƩŷƚƚķ tƌğƓ ŅƚƩ ƷŷĻ /ĻƓƷƩğƌ tĻƓźƓƭǒƌğ ğƓķ ƓĻǞ IĻƩźƷğŭĻ .ǤƌğǞ ğƓķ ƩĻƌğƷĻķ œƚƓźƓŭ .ǤƌğǞ ğƒĻƓķƒĻƓƷƭ that will be transformational in improving clarity and investor confidence, driving growth and removing unnecessary red tape or regulatory barriers to drive urban density and allow for more flexibility for development in heritage areas and clear guidelines for infill development creating more predictability for investors to unlock development potential for Central Peninsula. Implement enhanced incentive programs to build momentum with these changes. 6. 5ĻƌźǝĻƩ ƦƩƚĭĻƭƭ źƒƦƩƚǝĻƒĻƓƷƭ Ʒƚ ĻƓŷğƓĭĻ ƷŷĻ ƦƌğƓƓźƓŭ ğƓķ źƓŅƩğƭƷƩǒĭƷǒƩĻ ƦƩƚĭĻƭƭĻƭ to ensure an efficient and effective process for clients. Focus will be to review these processes to remove barriers, improve predictability, and create new value added tools to achieve outcomes while reducing costs for industry. The customer service enhancement plan for the One Stop Development Shop will be a priority initiative for Growth & Community Development Services in 2019. The next steps include updating Council at its March 25 meeting and moving forward the engagement sessions with Developers and clients to seek feedback on pain points and areas of improvement. Growth Committee and Council will be updated at key milestones in the delivery of this plan. - 5 - SERVICE AND FINANCIAL OUTCOMES T-related efforts and investments are to achieve new levels of employment, population and tax base growth. 2019. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS The customer service enhancement plan for the One Stop Development Shop has been designed to address previous feedback from clients; improvements will be delivered in partnership with DevelopSJ and staff throughout the organization involved in the development process. The plan will be prioritized on the basis of improvements that yield the maximum impact for our customers to drive growth outcomes. ATTACHMENTS Power Point Presentation: One Stop Development Shop Customer Service Enhancements ss p t e o n c i h e v S r m t e e n S c e t n n m a e p h o n lm E e p v eo l e c i e March 21, 2019 D v v r e p Growth Committee e oD S t y r S t ei e n m n u o O t m s u m C o C & h t w o r G GROWTH COMMITTEE REPORT Report Date March 15, 2019 Meeting Date March 21, 2019 His Worship Mayor Don Darling and Members of the Growth Committee SUBJECT: Urban Development Incentive Grant and Beautification Grant Pilot Program Evaluation OPEN OR CLOSED SESSION This matter is to be discussed in open session. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Andy Reid/Jodie Forgie Jacqueline Hamilton John Collin RECOMMENDATION 1. That Growth Committee receive and file the Urban Development Incentive and Urban Beautification Pilot Program Evaluation (2016-2018) presentation; 2. That Growth Committee adopt the amended Beautification Grant policy and recommend for approval to Common Council; 3. That Growth Committee authorize staff to proceed with amendments to the Urban Development Incentive consideration as outlined in this report. EXECUTIVE SUMMARY The Urban Development Incentive and Urban Beautification Pilot programs have stimulated reinvestment in the Central Peninsula (Uptown, South End, and Waterloo Village) since their implementation in 2016. The Urban Development Incentive program focused on development of upper floors, vacant buildings, and vacant lots, while increasing tax base assessments and increasing residential density in otherwise underused spaces. A projected 71 new residential units will be created through the program. Awarded Development Incentive Grants constituted $654,865 for 11 projects, resulting in an estimated $7.3 million in private investment in the Central Peninsula. The program also resulted in spin-off benefits, which although harder to quantify, should also be highlighted. These included new business, cost reduction to the City lowered by reducing the number of vacant buildings monitored, and catalyzing interest and investment in the Central Peninsula. - 2 - The Urban Beautification program provided residents an incentive for the purpose of improving the appearance of the front of their properties and increasing the attractiveness of streetscapes. Awarded Beautification Grants constituted $95,781 for 41 projects resulting in an estimated $551,636 in private investment in the Central Peninsula. PREVIOUS RESOLUTION In late 2014, Council directed staff to pursue the development of an incentive program that offered a suite of options designed to increase private sector investment in residential development in the urban core area of the City. On June 22, 2015, Council endorsed a recommendation for staff to research and develop an incentive program as a pilot project for the South End, Uptown, and Waterloo village neighbourhoods of the City, in addition to conducting an engagement process to solicit input from stakeholders and local developers. On March 21, 2016, Council adopted the Urban Development Incentive Policy, a three year pilot which contained a suite of grants including: vacant buildings, infill, and upper floors residential grants, in addition to a beautification grant program for the Central Peninsula. STRATEGIC ALIGNMENT Common Council adopted a set of Priorities for 2016- that beautification. REPORT The Central Peninsula was selected as the pilot area for the Urban Development Incentive and Beautification Grant Programs. It was recognized that reinvestment in underutilized spaces in the Cthe largest impact and generate the highest return on investment over other areas. This direction was anticipated through the adoption of the Municipal Plan, when Council directed the uptown area be given consideration for a package of incentives. The overarching growth goals of the Municipal Plan focus almost half of future growth in urban neighbourhood intensification areas, of which the Central Peninsula comprises a large share. Since the launch of the Central - 3 - Peninsula Neighbourhood planning process in 2016, the focus has continued to remain on the C. BACKGROUND Urban Development Incentives Program The Urban Development Incentives Pilot Program was a policy operative stst between January 1, 2016 and September 1, 2018. It is now required to be renewed should new applications be accepted. The policy outlined three types of projects to help stimulate reinvestment in vacant buildings, vacant lots and vacant upper floors of mixed-use buildings. Each type of project was comprised of two main grant streams: (1) 5 year residential density grant of between 4.25% and 5.25% of construction costs up to a fixed amount of $150,000; and, (2) Construction challenge/building permit grants paid upon completion of the project up to $60,000. The first stream is funded through a reserve where the incremental tax revenue from the properties will be allocated until the grant for the property is paid. The program received an annual budget of $170,000 intended to cover the first- come, first-serve costs of the second grant stream. This annual budget should continue to be approved along with the policy. Urban Beautification Grant Program The Beautification Grant program was adopted as policy on March 21, 2016 and continues to be in effect. The program primarily incentivized property owners living on the peninsula to improve the facades and landscaping of their front yards to create an enhanced streetscape and public realm. A committee met monthly to award grants based on design criteria of materials and appearance. An approved grant provided 35% of the cost of eligible work up to a maximum of $4,000, or $6,000 on a corner lot. The program received an annual budget of $50,000 intended to cover the first- come, first-serve costs. This annual program budget is included in the operating budget. Because of the nature of the program, which consists of smaller scale, less costly renovations, no additional budget has been requested for 2019; the current envelope is sufficient. Other Grant Programs There are additional ŭƩğƓƷ ƚƦƦƚƩƷǒƓźƷźĻƭ ŅƚƩ ŷĻƩźƷğŭĻ ğƓķ ŅğIJğķĻ źƒƦƩƚǝĻƒĻƓƷƭ that complemented the two Programs referenced in this report within the Heritage Conservation Areas and offsets the higher cost of maintaining heritage - 4 - Improvement Area. These two grants offer complementary support towards ŅğIJğķĻ ǒƦŭƩğķĻƭ ğĭƩƚƭƭ ƷŷĻ ĭĻƓƷƩğƌ ƦĻƓźƓƭǒƌğ and it is recognized that heritage properties require unique treatment. ANALYSIS OF PROGRAMS Urban Development Incentives Grant Program The Program exceeded the status quo targets for number of new residential units with a total of 71 projected new units, the majority being made up of apartment/condominium units. There were 11 projects in all, with 6 now completed and the remaining 5 anticipated to be completed by the end of 2019. Vacant and upper floor projects made up the majority of incentive grants as outlined in the table below, with only one infill project. Vacant Building Upper Floors Infill Total Number of Projects 7 3 1 11 Number of Projects 2 3 1 6 Completed Number of Units Created 32 36 3 71 Non-Market 2 0 0 2 Housing Units Estimated Construction $4,510,672 $2,340,300 $450,000 $7,300,723 Cost Value of Grants for All $399,994 $226,428 $28,433 $654,865 Projects Completed Projects New Annual Tax Revenue $11,000 $22,025 $15,200 $48,255 (estimated) The overarching goal of the program was to create new residential units and stimulate private reinvestment. In addition to generating new tax revenue and increasing core neighourhood density, the Program has created other benefits such as adding six floors of renovated commercial space. built heritage, as evidenced by the fact that 4 out of 11 projects were located within a Heritage Conservation Area. The Program also succeeded in redeveloping properties challenged by vacancy. Finally, the Program succeeded in creating spin-off benefits around investment in the Central Peninsula. The Program helped to generate interest for investors. - 5 - Principles of the Incentive Program Further promote built heritage Increase core neighbourhood density Promote broader housing opportunities Support mixed-use neighbourhoods Support green building design Revitalize waterfront lands above principles. In evaluating program performance, it is notable that fewer projects contributed to three areas: further supporting green building design, revitalizing waterfront lands, and providing further assistance to non-market housing (Mixed-use neighbourhoods). Although there was only one project funded during the pilot that contributed to non-market housing to the Peninsula, future projects are anticipated for 2019. In terms of financial performance, for the projects that have been completed to date, the payback period ranges between two and four years. The payback calculation was performed by comparing the grant amount to be paid compared to the estimated increase in property tax revenue generated. In addition to new tax revenue to date of approximately $48,255, projects contributed $59,246 in building permit revenue (an amount that should increase with successive phases of a number of projects) and new annual water and sewer revenue of approximately $97,128. Beautification Program The beautification program was intended primarily for homeowners and landlords to create positive change in their neighbourhoods by improvements to facades and front yards of their properties. Overall, the program stimulated improvements to 41 properties, leveraging $551,636 in investment, which represented $95,781 in grants. Improvements were varied and included exterior painting, replacement of windows, doors, repair to entryways, repointing brick, and landscaping front yards. Looking forward, staff will be focusing on maintaining strong communication of the program and improving administrative functions to reduce residuals from the annually budgeted $50,000. In 2019, Growth and Community Development staff will endeavor to greater align its Minimum Standards Program with the Beautification Grant. With the high proportion of older homes on the Central Peninsula that fall outside of a Heritage Conservation Area and do not have access to funding, the Program is an important means to improve housing stock and investor confidence. - 6 - IMPROVEMENTS TO THE PROGRAMS Amendments to the Urban Beautification Policy have been attached to this report (Attachment 3) and comprise the following: 1. Greater aligning of the eligibility boundary with the Central Peninsula Neighbourhood Plan (i.e. including City Road area). Should Council/Growth Committee seek to enlarge the budget envelope of the program to provide funding for an additional study area, staff propose returning back with a report to identify the secondary eligibility boundary area (e.g. Old North End). The Central Peninsula boundary is considered the primary area and extending the eligibility boundary to the Neighbourhood Plan area (minus transportation ; 2. Introducing eligibility of exterior painting for side yard facades where there is a gap in the urban fabric; 3. Simplifying scoring system of projects, introducing administrative improvements, and better coordinating program with Heritage Conservation Grants (e.g. deadline for all work and receipts is now th the same as Heritage, November 30 of each year). Amendments to the Urban Development Incentives Program will be more extensive and staff plan to go to Council with a new policy subsequent to receiving feedback and endorsement from Growth Committee. Staff also plan on consulting partners such as DevelopSJ before finalizing policy amendments. Improvements will largely occur with respect to the following: 1. Calculation of grant amount will be based on a different formula then the current program, which ensures that the amount paid out will not be higher than the incremental revenue received from property tax revenue; 2. Calculation will be performed each year of payout, removing the predetermined schedule of payments; 3. Calculation will attribute more value to commercial then to residential; 4. Remove the $150,000 cap to allow for larger projects to participate in the Program; 5. Lessen the administrative burden of the program; 6. Equalize payments for market and non-market housing projects. 7. Simplify the policy framework so that it is easier for investors to interpret and make decisions based upon. CONCLUSION Continuing to support the Central Peninsula neighbourhoods through the Urban Beautification Program will continue to improve streetscapes and the public realm. Since the Urban Development Incentive Program was created there have - 7 - been a number of new policies and programs introduced. At the Municipal level, the City undertook the creation of the Central Peninsula Neighbourhood Plan, which is to be adopted in 2019. The principles of the Urban Development Incentive Program are much in line with the plan with respect to promoting heritage, increasing density in the core, revitalizing waterfront lands, and helping to create mixed-use neighbourhoods. Continuing to encourage development in the form of targeting underused spaces and aligning the Program with the goals of the Central Peninsula Neighbourhood Plan will be a key ingredient in the ongoing revitalization of the c ATTACHMENTS Attachment 1 Map of Grant Program Recipients 2016-2018 Attachment 2 Urban Development Incentive and Urban Beautification Pilot Program Evaluation (2016-2018) Attachment 3 Beautification Grant Program Policy March 21, 2019 Development Incentives Programs Growth Committee: Beautification and Urban Beautification Policy Urban Beautification Policy Policy Category: Policy Policy No.: 16-77.2Implementation Procedure No.: Approved or Last Reviewed Date: March 2019Next Review Date: December 2020 Area(s) this policy applies to: Financial incentivesOwner Service: supporting development in the Central Peninsula Growth and Community Development Related Policy(ies): Urban Development Incentives Policy Revision History December 2017 March 2019 Date Created:Senior LeadershipCouncil Approval Date:Contact: March 15, 2016 Review Date: Commissioner of Growth and Community Development Urban Beautification Policy Urban Beautification Program Overview The purpose of the Urban Beautification Program is to provide incentive for people living in the Central Peninsula to invest in the beautification of the faŒades of their homes, or the landscaping of their front yards. The Beautification Program is designed to create an enhanced public realm in the Uptown, South End, and Waterloo Village areas. Increased reinvestment in the facades and front yards of private properties will contribute to beautification of the entire Central Peninsula, creating a more desirable place to live. A. Qualifying Criteria: i. The project is located within the boundaries outlined in Schedule 1; ii. Individual apartment-style condominium units will not be eligible for a grant; iii. All work proposed as part of a Beautification Program application must be conducted on the first four storeys of the dwelling; iv. Where required, all work must have an approved building permit in order to receive funding. B. Eligible Work: The following work will be eligible for a grant: i. The front or flankage faŒade of a building; ii. Exterior painting, including any entranceways, siding, trim, moldings, porches, decks or other features of the exterior of the main building; iii. Siding repair, or the replacement of any siding with new siding material; iv. The repointing of existing brick on the exterior of the main building; v. The repair and/or replacement of any architectural elements of the building that are original to the design of the building, or are similar to the architectural style of the building; vi. The replacement or installing of any exterior windows or doors vii. The replacement, renovation or installation of exterior front steps, handrails or walkways; viii. The installation of any landscaping details including, but not limited to, sod, shrubs, trees and plant beds; and ix. Notwithstanding section B(i), exterior painting to a side yard faŒade of a property may be eligible where: (i) the adjacent lot is a vacant or surface parking lot and has a frontage of at least 11 metres, or, (ii) the side yard is occupied by surface parking with a width of least 11 metres. x. Any additional work not identified below as ineligible work, which incorporates decorative elements and contributes to the beautification of the property. C. Ineligible Work: The following work conducted to the subject property will not be eligible for a grant: i. The renovation of any interior spaces; ii. Work that has been started prior to the submission of an application; iii. The replacement or repair of the roof; iv. Any work done to a driveway or any other parking area; Page| 2 Urban Beautification Policy v. Any work done to an existing or proposed detached garage; vi. Any exterior Improvements done to backyards, or areas not visible from the street front; vii. Any work involving the installation of vinyl siding, or any siding that will result in the covering of brick; viii. Projects receiving any funding through the Urban Development Incentives Program are not eligible. D. Program Guidelines i. Structure: a. An approved grant will provide 35% of the cost of the eligible work completed to a i. maximum of $4,000; ii. Where a grant application is for both a front and flankage building faŒade, an approved grant will provide 35% of the cost of eligible work completed to a maximum of $6,000. b. Beautification Grants will be awarded to the applicants with the highest scores, as determined by the Application Evaluation Committee, until the funds have been exhausted; i. Where a grant application is deducted points by the Application Evaluation Committee, the overall value of the grant shall be reduced from 35% of the cost of eligible work according to the following formula: ii. iii. Any work undertaken on the exterior of the building or property within the same year will be included as part of the application for the purposes of determining the project score. c. Any application that receives a score of zero or lower will not be eligible for a i. Beautification Grant. ii. Distribution of Funds: a. The distribution of funds for an approved project will occur after a final site inspection has been conducted and it has been determined by staff that the approved work has been completed; b. No project will receive more than the 35% of the submitted proposal; c. The applicant must submit all accompanying receipts necessary to provide proof of th eligible expenses prior to November 30. d. Where an applicant performs the required work for a Beautification Grant themselves, only the material costs will be eligible for reimbursement. e. Where work is performed by a company owned by the applicant, the City of Saint John may request formal documentation outlining both detailed material and labour costs for the project. iii. Schedule: a. The effective date of the program is March 22, 2016; b. The Application Evaluation Committee will meet three times during a year, if required, for the purpose of reviewing and approving applications; c. The Application Evaluation Committee shall determine meeting dates, application deadlines, and any other necessary deadlines for the Program, subject to the approval of the Commissioner of Community Growth and Planning; Page| 3 Urban Beautification Policy d. Conditionally approved grants shall be incomplete and the applicant will not be i. eligible for any funding if work has not commenced within one month of the approval date; e. All work approved by the Committee for a Beautification Grant must be completed by i. November 30; ii. If the proposed work approved by the Committee for a Beautification Grant is not completed by November 30, the project will be deemed incomplete and the applicant will not be eligible to receive any funding. iv. Application Evaluation Committee: a. The role of the Application Evaluation Committee is to provide a technical evaluation of applications in the context of the Beautification Grant Score Card (Schedule 2). b. The Application Evaluation Committee will consist of five technical staff members from one or more of the following City of Saint John Departments: Growth and Community Development, Finance and Administrative Service, and Communications; c. The members of the Application Evaluation Committee will be determined by the Commissioner of Growth and Community Development; d. The members of the Application Evaluation Committee may step down from their role on the Committee, or be replaced, subject to the approval of the Commissioner of Growth and Community Development. Page| 4 Schedule 1 Beautification Grant Program Boundaries Page I 4 Schedule 2 Beautification Grant Score Card High Low None Negative Siding 6 Points 2 Points 0 Points -14 Points Repairs or replaces 25% or Minor repair on 25% or less of Not within Proposes to use vinyl siding; ƒƚƩĻ ƚŅ ƷŷĻ ŅğIJğķĻ͵ ƷŷĻ ŅğIJğķĻ͵ scope of proposes to cover exposed brick; Appropriate materials project. undertakes work which creates an include: Fiber Cement; irregular pattern of cladding which is Masonry Work; Wood Siding; inconsistent with that of intact, Shingle Siding. traditional buildings along the same street. Painting 4 Points 2 Points 0 Points -5 Points Painting greater than 25% of Painting of greater than 25% of Not within Painting and thereby maintaining an an eligible ŅğIJğķĻͲ ǞźƷŷ an eligible facade. scope of irregular pattern of cladding. accentuation of architectural project. details. Entryways 3 Points 1 Point 0 Points -3 Points Restoring entryway using Installs only one of the previous Not within Installs white and/or panel steel high quality materials. items. scope of door with no windows. Restoration must include project. two of the following: restores original entryway; installs contextually appropriate door; installs contextually appropriate steps (including painted handrails). Architectural Details 3 Points 1 Point 0 Points -3 Points Restores original Installation or improvements to Not within Removal or original detailing architectural detailing to compatible architectural detail scope of without replacement using high ŅğIJğķĻ͵ such as window trim, lintels, project. quality materials. cornices, brackets and other similar features. Windows 3 Points 1 Point 0 Points -10 Points Maintains or restores Use of contextually appropriate Not within White vinyl windows and/or storm fenestration pattern using vinyl while maintaining scope of windows which do not maintain high quality materials such as fenestration, proportion, and project. fenestration, proportion, and style; wood or metal clad windows. style. The removal of windows and disruption of traditional fenestration patterns. Landscaping 1 Point Not applicable. 0 Points -2 Points Shrubs; trees; perennial Not within Removal of landscaping. gardens; new grass; box scope of planters. project. Total score is out of 20. Schedule 3: City of Saint John Urban Beautification Grant Application (ğǒƭƭź ķźƭƦƚƓźĬƌĻ ĻƓ ŅƩğƓIJğźƭ) Applicant Information Name of Applicant ____________________________________________________________________________________ Mailing Address of Applicant (with Postal Code) ____________________________________________________________ ____________________________________________________________________________________________________ PersonalTelephone Number__________________________Work Telephone Number ____________________________ Fax Number ______________________________________E-mail ___________________________________________ Name of Property Owner (if different from applicant)_________________________________________________________ Mailing Address (with Postal Code) _______________________________________________________________________ Property Information Location _____________________________________________________________________________________________ Civic # Street PID If the applicant is NOTthe owner, the Owner's signature or authorization (in writing) tosubmit this application is required. Signature of Applicant______________________________Signature of Owner _________________________________ Date_____________________________________________Date_____________________________________________ Clearly describe work you intend to do in categories: SIDING, PAINTING, ENTRWAY, ARCHITECTUR DETAILING, WINDOW ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ Estimated Cost of Construction $ Construction Cost Estimate InformationAccompanying Application: Letterof IntentCost Estimate Site PlanBuilding Elevations/Renderings Other____________________________________________________ t͵h͵ .ƚǣ ЊВАЊ {ğźƓƷ WƚŷƓͲ b. /ğƓğķğ 9Ћ\[ Ѝ\[Њ ǞǞǞ͵ƭğźƓƷƆƚŷƓ͵ĭğ /͵t͵ ЊВАЊ {ğźƓƷ WƚŷƓ͵ b͵Ώ.͵ /ğƓğķğ 9Ћ\[ Ѝ\[Њ Schedule 3: City of Saint John Urban Beautification Grant Application Project Schedule: Estimated Project Start Date: ____________________ Estimated Project Completion Date:____________________ For Office Use Only Reviewed By:_________________________ Date: ____________________ Project Number: __________ Eligibility Confirmed: YesNo City Hall Building 10th Floor - 15 Market Square Saint John, NB E2L 1E8 OneStop@saintjohn.ca (506) 658-2911 t͵h͵ .ƚǣ ЊВАЊ {ğźƓƷ WƚŷƓͲ b. /ğƓğķğ 9Ћ\[ Ѝ\[Њ ǞǞǞ͵ƭğźƓƷƆƚŷƓ͵ĭğ /͵t͵ ЊВАЊ {ğźƓƷ WƚŷƓ͵ b͵Ώ.͵ /ğƓğķğ 9Ћ\[ Ѝ\[Њ Dwh‘I /haaL99 w9thw Report Date March 15, 2019 Meeting Date March 21, 2019 His Worship Mayor Don Darling and Members of the Growth Committee SUBJECT: Heritage Grant Program Budget and Policy Adjustments OPEN OR CLOSED SESSION This matter is to be discussed in open session. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Emma Sampson Jacqueline Hamilton / Amy John Collin Poffenroth RECOMMENDATION Staff recommend that the Growth Committee adopt the following resolution for 1. Common Council authorize the transfer of a maximum of $80,000 from the Growth Reserve Fund to increase the 2019 Heritage Grant Program operating budget; 2. Common Council approve amendments to the Heritage Grant Program Policy as outlined in this report. EXECUTIVE SUMMARY The Heritage Grant Program has seen long-term success, particularly in the past year, in assisting property owners with maintenance and character-appropriate upgrades to their designated properties. The value of work linked to these projects, the Pses and building permit fees on projects that may not have been otherwise carried out due to financial constraints, have contributed strongly to growth objectives outlined by the City of Saint John. With the majority of designated properties existing within the Uptown area, it is expected that the demand for financial assistance through the Heritage Grant Program will continue to increase; readily surpassing the $80,000 initial budget in 2019 as it did in 2018. It is recommended, per the written request of the Heritage Development Board, that the Heritage Grant Program have its budget increased for the remainder of 2019. This report will describe options for the implementation of an increase, along with policy changes to the Program pending increase approval. - 2 - PREVIOUS RESOLUTION On September 10, 2018, Common Council adopted a motion in part transferring a one-time additional $50,000 from the Growth Reserve Fund for increases to the Heritage Grant Program and Beautification Grant Program for the 2018 operating year. STRATEGIC ALIGNMENT Common Council adopted a set of Priorities for 2016- the promotion of Saint John as a community to grow the residential tax basecluded developing neighbourhoods through the modernization of heritage preservation processes and through streetscape beautification. REPORT CONTEXT The Heritage Development Board has requested of the Growth Committee an increase to the 2019 budget for the Heritage Grant Program to a maximum of $200,000. It is anticipated, based on current application uptake, that the $80,000 budget initially set will be met and surpassed before the summer: as of the date of this report, $43,858 has been conditionally allocated (54.8% of the budget) to support $479,630 in estimated value of work. Further, the Heritage Development Board and staff support lifting aluminum-clad wood windows from the list of ineligible work and materials in the Heritage Grant Program Policy, to that in making these windows eligible for reimbursement, there will be an increase in grant applications for that specific item and without additional funds, other projects may not be able to receive reimbursement. BACKGROUND Heritage Grant Program The Heritage Grant Program has run on an annual basis for over 25 years. The program primarily incentivizes designated heritage property owners throughout Saint John to maintain or to make improvements to their properties using appropriate materials and techniques. Previously administered through application review by the Heritage Development Board, the administration of the program has shifted fully to staff purview since 2014 for faster service delivery. The operational budget for the program is set annually by Common - 3 - Council, with mid-year increases given on occasion as needed and as available at Three categories of grants are available to applicants: DƩğƓƷ і wĻźƒĬǒƩƭĻƒĻƓƷ υ ağǣźƒǒƒ Maintenance Grant 25% $750 annually Conservation Plan Grant 50% $1500, once Conservation Grant (requires 25%/45% $7500 annually Conservation Plan) Funds are conditionally allocated on a first-come, first-served basis and are open to repeat applicants. If the budget has been fully allocated, new applicants are placed on a wait-list for funds made available through incomplete or withdrawn projects. Other Grant Programs There are two additional grant opportunities ŅƚƩ ŅğIJğķĻ źƒƦƩƚǝĻƒĻƓƷƭ Ʒo complement the Heritage Grant ProgramBeautification Grant Program is available for properties in the Central Peninsula that do not have a heritage designation, and Program applies in tandem to the Heritage Grant Program, for qualifying properties in the Business Improvement Area. !ķƆğĭĻƓƷ Ʒƚ ƷŷƚƭĻ ŭƩğƓƷƭ ğǝğźƌğĬƌĻ ŅƚƩ ŅğIJğķĻ źƒƦƩƚǝĻƒĻƓƷƭ is the Urban Development Incentives Program, which is a three-program package available for development or redevelopment of vacant buildings, lots and upper floors of mixed-use buildings. ANALYSIS Heritage Grant Program In 2018, the Program exceeded its initial annual budget of $80,000 in conditional approvals by July. With the increased budget in September from the $50,000 shared with the Beautification Grant Program through the Growth Reserve Fund, the Heritage Grant Program was able to successfully allocate an additional $21,000 in paid out funds by November 30, the end of the program year, for an end-of-year total of $101,750, leveraging $381,000 of work. The 2018 program initially exceeded its $105,000 budget, leaving $6,800 on the waitlist pending end-of-year review, however final numbers saw 97% of the budget paid out. There were 38 applications made for 42 grants, with 34 completed grants paid out. Three applications were withdrawn and six marked as incomplete. Of the completed projects, 20 were higher value Conservation Grants, 11 were lower value Maintenance Grants, and seven were for the acquisition of Conservation Plans. - 4 - ЋЉЊБ ϔ /ƚƒƦƌĻƷĻ ‘źƷŷķƩğǞƓ LƓĭƚƒƦƌĻƷĻ ƚƷğƌ DƩğƓƷƭ 42 34 80% 3 7% 6 14% ağźƓƷĻƓğƓĭĻ 11 6 55% 2 18% 3 27% /ƚƓƭĻƩǝğƷźƚƓ tƌğƓ DƩğƓƷƭ 7 7 100% - - - - /ƚƓƭĻƩǝğƷźƚƓ DƩğƓƷƭ 24 20 83% 1 4% 3 13% The increase in reimbursed applications for Conservation Plan Grants is a key indicator for an increase in year-after-year applications for the higher value Conservation Grants. At present, 139 properties (23% of all designated properties) have Conservation Plans on file. Of the eleven grant applications made for the 2019 program to date, four are for Conservation Plan Grants, with the other seven for Conservation Grants. The propensity for property owners to undertake larger and longer-term projects is increased through having a Conservation Plan. This is reflected in the number of Conservation Grant applications, the total money paid out and the estimated value of work attached to these grants. ЋЉЊБ υυ tğźķ hǒƷ 9ƭƷ͵ ğƌǒĻ ƚŅ ‘ƚƩƉ whL і ƚŅ 9ƭƷ͵ ğƌǒĻ ƚƷğƌ DƩğƓƷƭ $101,746.88 $381,012.13 $3.75 - ağźƓƷĻƓğƓĭĻ $4,275.13 $32,517.39 $7.61 8.5% /ƚƓƭĻƩǝğƷźƚƓ tƌğƓ DƩğƓƷƭ $8,973.75 $21,000.00 $2.34 5.5% /ƚƓƭĻƩǝğƷźƚƓ DƩğƓƷƭ $88,498.00 $327,494.74 $3.70 86% As shown above, of the $381,000 in estimated value of work for 2018, 86% of that was attached to Conservation Grants, for a total of $327,500. Conservation Grants applications also tend to see a higher rate of successful completion, due to the technical necessity of the projects for building envelope maintenance; projects such as large-scale masonry repairs and siding and sheathing replacement. Aluminum-Clad Wood Windows At present, the only windows eligible for reimbursement through either Maintenance or Conservation Grants are wood windows. It is the opinion of staff and of the Heritage Development Board that the majority of products available for replacement wood windows are not of a suitable quality given the expense and the ocean climate, often with an underperforming lifespan. As such, it has been the practice in recent years of the Board to approve applications for the use of aluminum-clad wood products from a selection of vetted manufacturers and models, a list currently up to five different manufacturers. The Board would like to be able to bring the Heritage Grant Policy in line with its current trend of approvals to support the following considerations: - Windows are often one of the most expensive upgrades to a property; - 5 - - Property owners have expressed an unwillingness and/or an inability to undertake window replacements without financial support; - Window upgrades have one of the largest impacts on the energy efficiency of a building, making funds available for other improvements; - The Beautification Grant Program, which covers all non-heritage properties in the Central Peninsula, currently provides reimbursement for aluminum-clad windows. The reimbursement proposed will follow the same grant structure a percentage reimbursement up to a maximum dollar value, but will see a reduced percentage. This is currently proposed at 20% to a maximum pay-out of $7,500. This would require a property owner to spend $37,500 before tax on their windows to receive the maximum pay-out. Based on the 11 permits issued for aluminum-clad windows in 2018, had each application spent $37,500 or more, heritage grant expenditure would have been $82,500, leveraging a value of work of $412,500. The return on investment for this grant would be 5:1, with approximately $5,200 in attached building permit fees. This is a higher return than is typically seen through the program, which last year had an ROI of 3.75:1. Wood window repairs and replacements will remain incentivized; the repair of existing wood windows would retain a 45% reimbursement and the replacement/installation of wood windows would see a 35% reimbursement. Based on the extrapolated City expenditure from 2018 projects, staff would recommend that this item only be implemented with the approval of a maximum of $80,000 increase to the 2019 Heritage Grant Budget as a one-year test program. Staff would also propose that this item be made available to all heritage property owners, not just those with conservation plans, to provide access and opportunity for those buildings that would benefit most strongly. IMPROVEMENTS TO THE PROGRAM Proposed amendments to the Heritage Grant Program Policy are dependent on an increased budget, but would include: 1. Eligibility for reimbursement of Board-approved aluminum-clad wood windows, with 2019 as a pilot year. 2. One-time retroactive grant upgrades for applicants who obtain a Conservation Plan in the current grant year and who received a Maintenance Grant for eligible work in the previous grant year, pending end-of-year available funds. 3. Clarity around eligibility for condominium strata. - 6 - CONCLUSION A key factor in the on-going success of the Heritage Conservation Program is the continued availability of the Heritage Grant Program and its ability to address key issues related to the health of the properties it benefits. The shift in attitudes toward conservation as demonstrated by the actions of the Heritage Development Board should be represented accordingly in the items the City is willing to incentivize, but should come in addition to, not in place of the current success of the Heritage Grant Program. This will only be possible through an increase in the annual operating budget for the program. Providing more options and opportunities for property owners will encourage growth on a broader scale, helping to further the trend of revitalization of the Central Peninsula and beyond. ATTACHMENTS Attachment 1 Proposed Heritage Grant Program Policy 2019 Attachment 2 Heritage Grant Program Budgets and Dispersals, 2014-2018 HERITAGE GRANT PROGRAM POLICY PROGRAM AIM The Heritage Grant Program is an incentive program designed to encourage property owners to meet the spirit and intent of the Saint John Heritage Conservation Areas By-Law, as expressed in the National Standards for Conservation of Historic Places in Canada and Saint John's own series of Practical Conservation Guidelines. 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. OBJECTIVES Primary: To encourage retention of designated heritage buildings and their character-defining elements, including their materials and details; To maximize conservation of the character-defining elements of designated heritage buildings using an approach of: understanding, documenting, planning (for proposed use) and then intervening. Secondary: To create employment opportunities for the citizens of Saint John; To discourage demolition of designated heritage buildings; To reduce waste 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. CATEGORIES OF GRANTS Њ͵ IĻƩźƷğŭĻ ağźƓƷĻƓğƓĭĻ DƩğƓƷʹA grant available to any designated heritage property; also available to tenants for storefront signage. Covers 25% of approved costs, up to a maximum of $750 annually. Ћ͵ IĻƩźƷğŭĻ ‘źƓķƚǞ DƩğƓƷʹ A grant available to any designated heritage property. Covers the repair, the replacement or the reintroduction of windows based on the following percentages: a) Repair of wood windows: 45% of approved costs to a maximum of $7500 annually. b) Replacement or Reintroduction of wood windows: 35% of approved costs to a maximum of $7500 annually. c) Replacement or Reintroduction of Heritage Development Board-approved aluminum-clad wood windows: 20% of approved costs to a maximum of $7500 annually. Ќ͵ IĻƩźƷğŭĻ /ƚƓƭĻƩǝğƷźƚƓ tƌğƓ DƩğƓƷʹ A grant provided to offset the cost of retaining a design professional (architect or engineer) to prepare a Conservation Plan for designated heritage properties, enabling access to the Heritage Conservation Grants (below). A Conservation Plan provides the property owner with a phased plan to undertake required heritage/structural work. Covers 50% of costs, up to a maximum of $1500. Page Њ of Ѝ Ѝ͵ IĻƩźƷğŭĻ /ƚƓƭĻƩǝğƷźƚƓ DƩğƓƷʹ A grant to support large conservation projects for properties which have a Conservation Plan in place. There are two levels of funding provided by the Conservation Grant, depending on the nature of the project: a) Minor funding: for ƒğźƓƷĻƓğƓĭĻ work, as outlined in the Conservation Plan. Covers 25% of approved costs, up to a maximum of $7500 annually. b) Major funding: for ƩĻƭƷƚƩğƷźƚƓ work to original character-defining elements, and for major projects such as masonry or structural repair. Covers 45% of approved costs, up to a maximum of $7500 annually. Ў͵ …ƦŭƩğķĻ DƩğƓƷʹ A one-time grant for property owners based on the following conditions: a) Work was undertaken in the previous calendar year and received a Heritage Maintenance Grant. b) In the active program year, the property owner has obtained a Conservation Plan. The previously reimbursed work is work detailed in the Conservation Plan. The property owner may apply under this grant to have their Heritage Maintenance Grant reassessed as a Heritage Conservation Grant, with the difference in value paid out. These grant applications are waitlisted to November 30 and are paid out pending available end-of-year funds. ELIGIBLE PROPERTIES Grants are awarded based on the Property Identification Number (PID) rather than per civic address. Each PID is eligible to receive ƚƓĻ ŭƩğƓƷ ƦĻƩ ĭğƷĻŭƚƩǤ ƦĻƩ ǤĻğƩ. Notwithstanding the above, individual condominium PIDs are not eligible for grants, however condominium corporations may apply on behalf of their collective PIDs. Property must be a non-government owned designated heritage property located within one of the designated Saint John Heritage Conservation Areas. Refer to the Saint John Heritage Conservation Areas By-Law for a listing of properties. A copy of the By-Law can be found on up in person at the Growth and Community Development Services office, or an official copy at the Property must be covered by insurance. Property owner must be in good standing with the City of Saint John and shall not have unpaid property taxes. Property owner must not have any outstanding property-related by-law violations and/or building permit violations. ELIGIBLE WORK & MATERIALS Projects must be to the exterior of the property and in accordance with the terms and conditions of a Heritage Permit. Projects must be completed prior to the Grant Summary Form deadline and grant funding for projects not completed by the end of the calendar year will be forfeited except in exceptional circumstances. Note: For appropriate materials and restoration approaches, please see the Practical Conservation Guidelines on th and Community Development Services offices. INELIGIBLE WORK & MATERIALS Contemporary materials such as but not limited to vinyl windows, steel doors, or vinyl siding. Work carried out prior to issuance of a Heritage Permit and, if required, Building Permits. Page Ћ of Ѝ Work related to landscaping, roof replacement, or infill construction. Owner-performed labour. Poor or defective work as identified by the Heritage Officer and/or Building Inspector. Reimbursement of City of Saint John Building Permit fees. HERITAGE GRANT FUNDING APPLICATIONS Development Services office, 10th floor City Hall. Before completing and submitting a Heritage Grant Funding Application form, applicants must first obtain a Heritage Permit and building permit (if required), and include these numbers on their Heritage Grant Funding Application form. The following must accompany the completed application form: o Heritage Permit number; o Building permit number (if required) for proposed work; o Recent photographs of all sides of the building and detailed photographs of area related to proposed work; o Start and end date for proposed project; o Signature of both the applicant and owner of the property (if different); o Those applying for a Heritage Conservation Grant must copy and attach page extracts from the Heritage Conservation Plan that relate to the proposed work to be funded; o Those applying for a Heritage Conservation Plan Grant must include the Heritage Conservation Plan; o Written project cost estimate. REVIEW OF HERITAGE GRANT FUNDING APPLICATIONS FOR APPROVAL OR DENIAL Applications will be screened for basic eligibility as they are received (i.e. application package is complete and legible). Applicants will be notified promptly if their application is ineligible. Complete applications will be reviewed by Heritage Staff for the following: o Ensuring the Heritage Permit was approved; o If required, confirming building permit has been issued; o Reviewing project estimates and calculating amount of requested grant funding; Conditional approval will be awarded to applicants that meet the eligibility requirements. Conditional approval will be awarded in the sequence in which applications are submitted. Approval of a Heritage Grant Application conditionally approves the applicant for grant funding rather than guaranteeing it. Conditional approvals cannot exceed the Council-approved budgeted amount. If the grant requests exceed the budgeted amount, then any subsequent applicants will be placed on a waiting list in the sequence in which they applied. Applicants that are on the waiting list will submit the grant summary form upon completion of their project. Waiting list applicants will be notified by letter after the November 30 deadline about the status of their submission. BUILDING INSPECTION A successful building inspection by Building & Inspections Services for the proposed work is required to receive grant funding (If a building permit is required). It is the responsibility of the grant applicant to notify the Building & Inspections Services of the project completion and arrange for inspection. The Building inspection should be arranged and completed prior to submission of the Grant Summary Form. Page Ќ of Ѝ The inspection must be completed by November 30. Allow two weeks for the inspection to be scheduled and completed. HERITAGE OFFICER INSPECTION A successful inspection by a Heritage Officer of the City of Saint John is required to receive grant funding. It is the responsibility of the grant applicant to notify the Growth and Community Development Services that the project is complete and ready for inspection by the Heritage Officer. A Heritage inspection should be arranged and completed prior to submission of the Grant Summary Form as outlined below. The Heritage Officer will inspect and photograph the completed work to ensure that it shows good craftsmanship and complies with the Heritage Permit. The inspection must be completed by November 30. Allow two weeks for the inspection to be scheduled and completed. GRANT SUMMARY FORM The Grant Summary Form is required to be completed and submitted once the project work related to the grant application is complete in order to receive grant funding. Grant Summary Forms are accepted throughout the year up until bƚǝĻƒĬĻƩ ЌЉ. The Grant Summary Form should include the following information and attached documents: o Using the space provided, an itemized summary of the invoices and receipts that correspond to the work outlined in the Heritage Permit with the amounts stated pre-HST; o Legible photocopies of all invoices and receipts included in the summary with proof of payment; o Signature of the applicant, the legal owner of the property, and contractors who performed the project. Applicant must assert that a building inspection (if required) and heritage inspection have been requested and completed to the best of their knowledge. It is the responsibility of the applicant to ensure that the itemized summary is complete, accurate, and legible. Grant Summary Forms are reviewed when received and applicants will be notified through written communication within 60 days of submission whether the form is approved, with attached cheque, or whether it has been denied. PAYMENT OR DENIAL OF GRANT FUNDING Whether the applicant receives grant funding depends on successful building and heritage inspections and a properly completed and approved Grant Summary Form. The City will release grant funding payments within 60 days after submission of the Grant Summary Form provided all requirements are met. Wait list applicants will be notified by letter after the November 30 deadline about the status of their submission. IĻƩźƷğŭĻ {ĻƩǝźĭĻƭ ΋ DƩƚǞƷŷ ğƓķ /ƚƒƒǒƓźƷǤ 5ĻǝĻƌƚƦƒĻƓƷ {ĻƩǝźĭĻƭ th 10 Floor, City Hall, P.O. Box 1971 Saint John, New Brunswick E2L 4L1 If you have any questions or concerns Heritage Staff can be contacted at: Page Ѝ of Ѝ Phone: (506) 658-2835 Fax: (506) 658-2837 Email: heritage@saintjohn.ca IĻƩźƷğŭĻ DƩğƓƷ tƩƚŭƩğƒ .ǒķŭĻƷƭ ğƓķ 5źƭƦĻƩƭğƌƭͲ ЋЉЊЍΏЋЉЊБ $140,000.00 $120,000.00 $100,000.00 $80,000.00 Total Budget Conditionally Allocated $60,000.00 Paid Out $40,000.00 $20,000.00 $- 20182017201620152014 Dwh‘I /haaL99 w9thw M&C No. # found on Sharepoint Report Date March 14, 2019 Meeting Date March 21, 2019 Service Area Growth and Community Development Services His Worship Mayor Don Darling and Members of the Growth Committee SUBJECT: Growth Reserve Fund Request - Dangerous and Vacant Building Program OPEN OR CLOSED SESSION This matter is to be discussed in open session of Common Council. AUTHORIZATION Primary Author Commissioner/Dept. Head City Manager Rachel Van Wart Amy Poffenroth/ John Collin Jacqueline Hamilton RECOMMENDATION Staff recommend that the Growth Committee adopt the following resolution for Common Council authorizes the transfer of $25,000 from the Growth Reserve Fund to support the enhanced Dangerous and Vacant Building Program for 2019. EXECUTIVE SUMMARY In 2017, the Dangerous and Vacant Building Program was included in the Roadmap for Smart Growth to help deliver tax-base growth within the City of Saint John by eliminating dangerous, vacant buildings that negatively impact property value and compromise the safety and quality of life of citizens. The accelerated Program resolved 80 cases in 2017. In 2018, which included a focused approach The following report will provide a 2018 year-end Program update, in addition to providing 2019 targets given the same level of funding as 2018. - 2 - PREVIOUS RESOLUTION On September 10, 2018, Common Council adopted the following resolution: RESOLVED that as recommended by the City Manager in the submitted report, M&C2018- 256: Growth Reserve Fund Request Common Council authorizes the transfer of up to a maximum of $200,000 from the Growth Reserve Fund towards Growth and Community Development Services to support the pursuit of growth - related activities. This investment included $25,000 to deliver an additional 10 notices to comply under the Vacant and Dangerous Buildings Program in 2018 and continue efforts to encourage more repair and reoccupation of buildings. STRATEGIC ALIGNMENT Enforcement of the Saint John Unsightly Premises and Dangerous Buildings and Structures By-law REPORT ЋЉЊБ 5ğƓŭĻƩƚǒƭ ğƓķ ğĭğƓƷ .ǒźƌķźƓŭ tƩƚŭƩğƒ wĻƭǒƌƷƭ Aggressive, strategic targets, a temporary professional resource and a focused, streamlined approach were key components to the success of the enhanced Dangerous and Vacant Building Program in 2018. Public response to the accelerated Program continues to be extremely positive. The success of 2018 was made possible with the additional temporary resource allocated to the program from May December. The extension funded by the Growth Reserve, allowed for the target number of Notices issued to increase from 25 to 35 and for the targets for demolitions and repairs to be exceeded. The 2018 North End Focus area, which included 26 properties, saw significant results. A total of 10 buildings were demolished and 2 buildings were repaired and reoccupied. Focus in the North End will continue throughout 2019. The table below details 2018 Program targets and year end results. A total of 83 cases were resolved in 2018, with 33 demolitions and 50 repaired and reoccupied buildings. The City completed 27 of the 33 demolitions. ЋЉЊБ 5ğƓŭĻƩƚǒƭ ğƓķ ğĭğƓƷ .ǒźƌķźƓŭ tƩƚŭƩğƒ Target Result Notices to Comply 35 32 Demolitions 30 33 (27 City Demolitions) Repaired/ Reoccupied 45 50 ƚƷğƌ /ƌƚƭĻķ /ğƭĻƭʹ 75 83 - 3 - ЋЉЊВ 5ğƓŭĻƩƚǒƭ ğƓķ ğĭğƓƷ .ǒźƌķźƓŭ tƩƚŭƩğƒ The Program momentum of encouraging owners of vacant and dangerous properties to repair, reoccupy or demolish buildings will continue in 2019 with a target of 80 resolved cases. Targets have been adjusted to reflect anticipated challenges and case management predictions, which includes: Issuing 30 Notices to Comply, this is on par with 2018 at 32 Notices issued. Entry warrants will be required to inspect abandoned buildings or to gain entry into buildings with uncooperative owners. Active owners will also yield more discussion, negotiating and potential appeal hearings. Total of 30 demolitions. It is anticipated that fewer city demolitions will be required as the severity of conditions in the buildings at the top of the priority list are decreasing. Focus will remain on encouraging property owners to repair and reoccupy, in addition to encouraging owners to demolish derelict buildings themselves. 50 Repaired/ Reoccupied buildings. This volume is expected to remain steady with continued focus on encouraging repairs as opposed to demolishing, yielding tax-base growth. In addition, a number of buildings on the list have open building permits and are expected to be completed in 2019. See the below table which reflects 2019 Targets for the Dangerous and Vacant Building Program. ЋЉЊВ 5ğƓŭĻƩƚǒƭ ğƓķ ğĭğƓƷ .ǒźƌķźƓŭ tƩƚŭƩğƒ 2018 Results 2019 Target Notices to Comply 32 30 Demolitions 33 30 Repaired/ Reoccupied 50 50 ƚƷğƌ /ƌƚƭĻķ /ğƭĻƭʹ 83 80 . In 2018, a high of 220 active cases was reported, with an average case load of approximately 200 in the past few years. Although it appears as minimal progress, the program is trending in the right direction with the quality of buildings on the list improving. It is anticipated that a pivot of program direction will be required in the near future; from the focus on enforcement and demolitions to encouraging and spurring re-investment and revitalization of communities. SERVICE AND FINANCIAL OUTCOMES As included in this report, in addition to: As per section 143(1) of the Local Governance Act, City staff submitted reimbursement packages to the Province of New Brunswick in December for 2018 demolition and unsightly clean-up bills left unpaid. In total, 22 properties - 4 - were submitted for reimbursement and all were approved by the Province, resulting in reimbursement in the amount of $304,833.89, which will be paid to the City in the March transfer payments. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS N/A ATTACHMENTS N/A