Report to/Rapport au :

Planning and Environment Committee

Comité de l'urbanisme et de l'environnement

and / et

Agriculture and Rural Affairs Committee

Comité de l'agriculture et des questions rurales

and /et

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

30 November, 2006 / le 30 novembre 2006

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager /

Directrice municipale adjointe,

Planning, Transit and the Environment/ Urbanisme,

Transport en commun et Environnement

Contact Person/Personne ressource : Carol Christensen, Manager

Planning, Environment and Infrastructure Policy/Politiques d’urbanisme, d’environnement et d’infrastructure

(613) 580-2424 x21610, carol.christensen@ottawa.ca

City-wide

Ref N°: ACS2007-PTE-POL-0003

SUBJECT:	OTTAWA BROWNFIELDS REDEVELOPMENT STRATEGY AND BROWNFIELDS REDEVELOPMENT COMMUNITY IMPROVEMENT PLAN

OBJET :	STRATÉGIE DE RÉAMÉNAGEMENT DES FRICHES INDUSTRIELLES ET PLAN D'AMÉLIORATION COMMUNAUTAIRE POUR LES FRICHES INDUSTRIELLES

REPORT RECOMMENDATIONS

That Planning and Environment Committee, Corporate Services and Economic Development Committee and Agriculture and Rural Affairs Committee recommend that Council:

1. Approve the Ottawa Brownfields Redevelopment Strategy, as shown in Document 1;

2. Enact a by-law to designate the following as the “Ottawa Brownfields Redevelopment Community Improvement Project Area”:

(a) the area within the “Urban Area Boundary” as designated in the City of Ottawa Official Plan (2003), as amended from time to time; and

(b) the areas designated “Village”, in the City of Ottawa Official Plan (2003), as amended from time to time;

3. Enact a by-law to adopt the Ottawa Brownfields Community Improvement Plan (August 2006), as shown in Document 2, and that the Plan be submitted to the Minister of Municipal Affairs and Housing for approval;

4. Approve the guidelines for the Development Charge Reduction Program Due to Site Contamination, including requirements for applications received prior to January 16, 2007, as shown in Document 3;

5. Approve the concept of the Nicholas-Mann Gateway project as a signature brownfields redevelopment project, as shown in Document 4; and, direct staff to prepare a request for funding to the Federation of Canadian Municipalities under the Green Municipal Funds to obtain a grant to undertake a sustainable community planning study for this area;

6. Delegate to the Director, Planning, Environment and Infrastructure Policy the authority to approve project feasibility and environmental site assessment grant applications, subject to an annual reporting to Council; and

7. Establish a Municipal Leadership revolving fund (capital account) to help implement the Brownfields Redevelopment Strategy funded in the future from the 30% property tax increment that is retained by the City as a result of properties participating in the Rehabilitation Grant program.

8. Direct staff to report back to Council prior to the 2008 budget process on the outcomes of the 2007 program.

9. Refer the $35,000 annual cost to administer the property tax assistance programs by the Revenue Division of the Corporate Services Department to the 2007 budget process.

RECOMMANDATIONS DU RAPPORT

Que le Comité de l’urbanisme et de l’environnement, Comité des services organisationnels et du développement économique et le Comité de l'agriculture et des questions rurales recommandent que le Conseil :

1. Approuve la Stratégie de réaménagement des friches industrielles d’Ottawa, apparaissant dans le document 1;

2. Adopte un règlement afin de désigner ce qui suit comme la « zone de projet d’améliorations communautaires pour le réaménagement des friches industrielles d’Ottawa » :

(a) La zone située dans les « limites de la zone urbaine », tel que désigné dans le Plan officiel de la Ville d’Ottawa (2003), modifié à l’occasion;

(b) Les zones désignées comme « villages » dans le Plan officiel de la Ville d’Ottawa (2003), modifié à l’occasion;

3. Décrète un règlement afin d’adopter le Plan d’amélioration communautaire pour les friches industrielles d’Ottawa (août 2006), apparaissant dans le document 2, et que ce plan soit soumis à l’approbation du ministre des Affaires municipales et du Logement;

4. Approuve les lignes directrices du Programme de dispense des redevances d’aménagement en cas de contamination, y compris les exigences relatives aux demandes reçues avant le 16 janvier 2007, tel qu’illustré dans le document 3;

5. Approuve le concept du projet du passage Nicholas-Mann en tant que projet type de réaménagement de friche industrielle, tel qu’illustré dans le document 4 et qu’il demande au personnel de préparer une demande de financement à la Fédération canadienne des municipalités, en vertu des Fonds municipaux verts, afin d’obtenir une subvention permettant la réalisation d’une étude de planification communautaire durable pour ce secteur;

6. Délègue au directeur, Politiques d'urbanisme, d'environnement et d'infrastructure l’autorité d’approuver les demandes d’étude de faisabilité et d’évaluation environnementale, sous réserve de faire rapport annuellement au Conseil;

7. Crée un fonds renouvelable de leadership municipal (compte de capital) pour soutenir la mise en œuvre de la Stratégie de réaménagement des friches industrielles, qui sera financée à l’avenir par la part de 30 % de l’impôt foncier majoré qui sera retenue par la Ville au titre de la participation des propriétés au programme de subvention pour la remise en valeur de sites;

8. Charge le personnel de présenter au Conseil, avant le début du processus budgétaire de 2008, un rapport sur les résultats du programme en 2007;

9. Ajoute la somme de 35 000 $, couvrant le coût annuel d’administration des programmes

d’aide fiscale, au montant demandé dans le processus budgétaire de 2007 pour la Division des recettes de Services généraux.

EXECUTIVE SUMMARY

The purpose of this report is to introduce and request Council approval of the Ottawa Brownfields Redevelopment Strategy and the Brownfields Redevelopment Community Improvement Plan and other actions to implement the Strategy.

Brownfields are lands on which industrial or commercial activity took place in the past. They may be vacant, underused or abandoned. The soil and water may or may not be impacted by contaminants as a result of past practices and uses. Brownfields can include sites from old landfills and abandoned factories to dry cleaners, gas stations, storage areas and print shops.

More and more municipalities are preparing Brownfields Redevelopment Strategies and Community Improvement Plans (CIP) to promote the redevelopment of brownfield sites because these sites represent an environmental, economic and social concern in their communities. The City has identified the Brownfields Redevelopment Strategy and CIP as key components in implementing the Ottawa 20/20 Growth Management Strategy, as stated in the Official Plan, the Environmental Strategy, the Economic Strategy and the Corporate Plan. Combined with the environmental, economic and social benefits that will result from brownfield redevelopment, the Brownfields Redevelopment Strategy and CIP will ultimately help the City achieve its Smart Growth goals.

The economic benefits of brownfield redevelopment can include increased employment in urban areas and increased property values. Environmental benefits can include the removal of threats to the health of residents and workers, the protection of groundwater resources, wetlands and wildlife habitats, and a reduction in urban sprawl. The social benefits of brownfield redevelopment can include neighbourhood revitalization, improved safety and security, the provision of additional housing opportunities through intensification and infill, and an increased sense of community pride.

For the purposes of the Ottawa Brownfields Redevelopment Strategy and Community Improvement Plan, “brownfields” are defined as “abandoned, vacant, or underutilized commercial and industrial properties where past actions have resulted in actual or perceived environmental contamination and/or derelict or deteriorated buildings.”

The Brownfield Redevelopment Strategy sets out a general policy framework that will guide the City’s program activities to promote brownfield redevelopment in Ottawa. This Strategy forms the basis for the Community Improvement Plan that will be adopted under Section 28 of the Planning Act to assist in implementation of this Strategy. Approval of the CIP by the Ontario Ministry of Municipal Affairs and Housing is required before the CIP and any program contained therein can be implemented.

The Community Improvement Project Area for the Ottawa Brownfields Community Improvement Plan (as shown in Document 2) is the area within the “Urban Area Boundary” and the areas designated “Village”, in the City Council Approved Official Plan, as amended from time to time.

The main goal of this Strategy is to promote the remediation, rehabilitation, adaptive re-use, redevelopment and overall improvement of brownfield sites in the urban area and designated rural villages in Ottawa. Higher priority has been given to promoting brownfield redevelopment in the areas the City has identified as priority areas in its Official Plan for infill and intensification, i.e., the Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or planned rapid transit stations.

Six broad strategic actions are recommended to address impediments to brownfield redevelopment as identified in the background review and through the critical needs analysis.

These actions focus on: Municipal Planning and Environmental Approvals; Public Consultation; Financial Incentive Programs; Municipal Leadership Strategy; Awareness, Education and Marketing, and Government Coordination.

The financial incentive programs contained in the Strategy and CIP are designed to help overcome the impediments to brownfield redevelopment in Ottawa. A summary of the recommended programs is shown in Figure 1, including how incentives differ between priority areas for intensification and infill and other locations in the Urban Area and designated Villages.

Figure 1 Summary of Incentive Programs

Program	Location of Property
	In Central Area, Mixed Use Centres, along Mainstreets or within 600 metres of existing/ planned rapid transit stations	Not in Central Area, Mixed Use Centres, along Mainstreets or within 600 metres of existing/planned rapid transit stations
Project Feasibility Study Grant Program	Grant equivalent to 50% of the cost of an eligible project feasibility study. Maximum grant of $5,000. Maximum one study per property.	Grant equivalent to 50% of the cost of an eligible project feasibility study. Maximum grant of $5,000. Maximum one study per property
Environmental Site Assessment Grant Program	Grant equivalent to 50% of the cost of an eligible environmental site assessment, remedial action plan or risk assessment. Maximum grant of $15,000 per study. Maximum of 2 studies per property/project. Maximum total grant of $25,000 per property/project.	Grant equivalent to 50% of the cost of an eligible environmental site assessment, remedial action plan or risk assessment. Maximum grant of $15,000 per study. Maximum of 2 studies per property/project. Maximum total grant of $25,000 per property/project.
Property Tax Assistance Program	Cancellation of the municipal property tax increase for up to 5 years. Cancellation of the education property tax increase for up to 3 years[1].	Cancellation of the municipal property tax increase for up to 3 years. Cancellation of the education property tax increase for up to 3 years.
Rehabilitation Grant Program	Grant equivalent to 70% of the municipal property tax increase for up to 10 years	Grant equivalent to 70% of the municipal property tax increase for up to 5 years
Building Permit Fee Grant Program	Grant equivalent to 30% of building permit fee	Not available
Development Charge Reduction Program	Up to 100% reduction of development charge	Up to 50% reduction of development charge

In order to minimize financial and legal risks of offering financial incentives such as grants and tax assistance, the City will use legal agreements between the City and developers/owners. These agreements will specify all eligible works to be undertaken, municipal funding, obligations of the City and the applicant, defaults and remedies. Standard agreements can be varied if necessary to address specific brownfield sites and redevelopment circumstances. In no case will the total amount of assistance provided under the various programs exceed the total eligible costs.

It is recommended that Council delegate to the Director, Planning, Environment and Infrastructure Policy the authority to approve project feasibility and environmental site assessment grant applications, subject to an annual reporting to Council.

These grants are limited to a maximum of $5,000 and $25,000 per property respectively. For all of the other financial incentive programs, staff will submit a report on each application to Council.

Under the Rehabilitation Grant Program, an annual grant equivalent to 70% of the municipal property tax increase that results from the project will be reimbursed to the applicant for a period of up to 10 years, or up to the time when total grant payments equal total eligible costs, whichever comes first. The remaining 30% of the municipal property tax increase will be placed in a capital account, the Municipal Leadership Account. This revolving fund will be used to fund a Municipal Leadership Strategy, including a Marketing Strategy. The Municipal Leadership Strategy may involve the City, with or without partners, directly in the assessment, remediation and redevelopment of brownfield sites. Funds from the Municipal Leadership Account may be used to leverage brownfield feasibility study and remediation funding available from the Federation of Canadian Municipalities (FCM) Green Municipal Funds (GMF). Any actions undertaken by the City pursuant to the Brownfields Municipal Leadership Strategy will be subject to approval by City Council.

The Marketing Strategy will proactively and regularly advertise and market the City’s brownfield redevelopment incentive programs and publicly and privately-owned brownfield redevelopment opportunities through means such as brochures, web site materials, and presentations.

There is a community-based project that has been initiated in lower Sandy Hill that would benefit now from the support of the Brownfields Redevelopment Strategy. For over a year, a group of participants representing public and private land owners have been meeting regularly under the Chairmanship of Councillor Georges Bédard to determine how land in an area generally bounded by Lees Avenue, Mann Avenue and Chapel Street north of the Queensway (as shown in Document 4), could be rehabilitated and better used. The project is consistent with the City's objectives to pursue brownfields redevelopment and to promote collaborative community planning as detailed in the Official Plan. The process now has come to a point where professional resources are required. It is therefore recommended that City staff be directed to apply to the FCM’s Green Municipal Fund for a grant, on behalf of all partners in the process, to undertake a sustainable community planning study for the Nicholas-Mann project. A request for seed funding for the City of Ottawa’s participation in the process, which will assist in securing funding from all the landowner partners in the project, will be discussed in a companion report that is to be considered at the same meeting as this report.

City Council approved a new Development Charges By-law in July of 2004. The Development Charges By-law permits, where authorized by Council resolution, an exemption of development charges for development on contaminated lands (brownfields) -Section 7(t) of By-law 298-2004. Our consultants have developed, with the assistance of City staff, eligibility criteria and guidelines for the existing Development Charge Exemption policy. This includes limiting the maximum amount by which development charges can be reduced on a brownfield site to the costs of environmental remediation/ risk management and LEED program component costs[2], and integrating the development charge exemption for brownfields with the Rehabilitation Grant program.

Financial Implications:

To implement the full Brownfields Redevelopment Strategy and Community Improvement Plan would require start-up funding of $125,000. In the first year of the program it is difficult to estimate the take-up of the program. It has been estimated that there would be five project feasibility grants ($25,000) and four environmental site assessment grants ($100,000). This amount has been included as part of the Long Range Financial Plan 3 submission which was to be considered as part of the 2007 budget. If approved, the funds would have been placed in a Municipal Leadership Revolving Fund (capital account). The funds requested would be used to offer the various grants that are not property tax-based as described in the Strategy and CIP. Given the Budget Directions Report 2007 staff are recommending that no start-up funds be allocated for 2007 to support these two none property-tax based grants and that instead a phased implementation approach be adopted. In the first year of the program only the two property tax-based programs (Property Tax Assistance Program and the Rehabilitation Grant Program) as described in the Strategy and CIP would be offered. The development charge reduction program is a current program of Council. These three programs are considered to be very important financial incentives that can be used to spur Brownfields redevelopment and importantly they do not require any start-up funds. Staff would report back to Council prior to the 2008 budget process on the success and outcomes of the 2007 program. There is no requirement for additional staff within Planning, Transit and the Environment to implement this program.

Figure 1: Summary of Incentive Programs - page 5, shows the various grant, tax assistance and development charge reduction programs and their financial impacts dependant on the location of property. The Municipal Leadership Strategy would be funded in the future from the 30% property tax increment that is retained by the City as a result of properties participating in the Rehabilitation Grant Program, and any initial seed funding allocated by Council.

The administration of the property tax assistance programs would be conducted by the Revenue Division of the Financial Services Branch in the Corporate Services Department. To administer the tax grants, budget for staff time and resources of $35,000 will be required annually and included in the 2007 Budget requirement.

These costs will also be identified in the LRFP3 and be considered as part of the 2007 budget.

Public Consultation/Input:

A corporate wide project team was established to guide the brownfields project. An external brownfields advisory group representing a broad base of public and private stakeholders was also established to keep the project focused, address stakeholder perspectives and build on their experiences. The Brownfields Advisory Committee provided direction and advice to staff and the consulting team.

Public consultation on the Brownfields Redevelopment Strategy and CIP included the general public, other interested groups, and Council’s Advisory Committees (Business Advisory Committee, Environmental Advisory Committee and the Rural Issues Advisory Committee).

The first public meeting on the Brownfields Redevelopment Strategy and CIP was held July 27, 2005 at City Hall. The purpose of this meeting was to inform the public and key stakeholders of the study process. With respect to promoting brownfield redevelopment, those in attendance made suggestions in the areas of growth management, financial incentives, community impact and government coordination. These redevelopment suggestions were used to help guide development of the Brownfields Redevelopment Strategy and CIP.

A second public meeting was held on February 1, 2006. The purpose of this meeting was to present the Draft Brownfields Redevelopment Strategy (including draft financial incentive programs and municipal leadership strategy) to the public and key stakeholders so as to obtain their comments. This public meeting included a workshop where participants were divided into working groups and asked to provide feedback on the proposed incentive programs, strategies and actions contained in the Draft Brownfield Redevelopment Strategy. Based on the input received at this public meeting, comment sheets submitted by members of the public after the public meeting, and comments provided by City staff, the Draft Brownfields Redevelopment Strategy and CIP were finalized.

A database was created with which included over 180 stakeholders. All of these groups were advised of the various public meetings including the meeting to consider the Community Improvement Plan, via direct e-mail. For this report, a notice advertising the proposed Brownfields Redevelopment Strategy and Community Improvement Plan and the date and time of the meeting where the Planning and Environment and Agriculture and Rural Affairs Committees would consider the matter appeared in the Ottawa Citizen and Le Droit and was posted on the City’s website under public consultation. Copies of the proposed Community Improvement Plan were also posted on the City’s website and made available in other forms upon request.

RÉSUMÉ

Hypothèses et analyse :

Ce rapport a pour objet de présenter au Conseil la Stratégie de réaménagement des friches industrielles, le Plan d’amélioration communautaire pour le réaménagament des friches industrielles et d’autres mesures visant à mettre en œuvre la stratégie, et de demander son approbation à ce sujet.

Les friches industrielles sont des terrains sur lesquels une activité industrielle ou commerciale a eu lieu. Ces terrains peuvent être vacants, sous-utilisés ou abandonnés. Le sol et l’eau peuvent avoir été ou non touchés par des polluants par suite de pratiques et d’utilisations passées. Il peut s’agir d’anciennes décharges ou d’usines abandonnées, ou peuvent avoir accueilli des nettoyeurs à sec, des stations-services, des entrepôts ou des imprimeries.

De plus en plus de municipalités préparent des stratégies de réaménagement des friches industrielles et des plans d’amélioration communautaire (PAC) visant à promouvoir le réaménagement des friches industrielles car ces terrains représentent un problème environnemental, économique et social dans leur communauté. La Ville a estimé que la Stratégie de réaménagement des friches industrielles et le PAC constituent des éléments déterminants dans la mise en œuvre de la Stratégie de gestion de la croissance Ottawa 20/20, tel qu’énoncé dans le Plan officiel, la Stratégie environnementale, la Stratégie économique et le Plan directeur municipal. Si on les conjugue aux avantages environnementaux, économiques et sociaux qui résulteront du réaménagement des friches industrielles, la Stratégie et le PAC aideront la Ville, en bout de ligne, à atteindre ses objectifs de croissance intelligente.

La création d’emploi dans les secteurs urbains et la hausse de la valeur foncière peuvent constituer des avantages économiques du réaménagement des friches industrielles. La suppression de la menace à la santé des résidents et des travailleurs, la protection des ressources d’eau souterraine, des terres humides et des habitats fauniques ainsi que la réduction de l’étalement urbain sont quelques-uns des avantages environnementaux. La dynamisation des quartiers, l’amélioration de la sécurité, les nouvelles possibilités de logement grâce à la densification et aux aménagements intercalaires et le regain de fierté civique sont les principaux avantages sociaux.

Aux fins de la Stratégie de réaménagement des friches industrielles et du Plan d’amélioration communautaire, on entend par « friches industrielles » les « propriétés industrielles ou commerciales qui ont été abandonnées ou désaffectées ou qui sont sous-exploitées, où les activités passées ont créé une contamination environnementale réelle ou possible, et/ou abritant des édifices abandonnés ou détériorés ».

La Stratégie de réaménagement des friches industrielles établit un cadre général de politique permettant d’orienter les activités des programmes municipaux de promotion du réaménagement des friches industrielles à Ottawa. La Stratégie constitue la base du Plan d’amélioration communautaire qui sera adopté en vertu de l’article 28 de la Loi sur l’aménagement du territoire pour aider à sa mise en œuvre. L’approbation du PAC par le ministère des Affaires municipales et du Logement de l’Ontario est nécessaire pour que ce plan et tous les programmes qu’il décrit puissent être appliqués.

La zone de projet d’améliorations communautaires visée par le Plan d’amélioration communautaire pour le réaménagement des friches industrielles d’Ottawa (telle qu’illustrée dans le document 2) est constituée de la zone située dans les « limites de la zone urbaine », et celles désignées comme « villages » dans le Plan officiel de la Ville d’Ottawa (2003), modifié à l’occasion.

Le principal objectif de cette stratégie est de promouvoir l’assainissement, la remise en valeur, la réutilisation adaptative, le réaménagement et la mise en valeur globale des friches industrielles urbaines et de certains villages de la Ville d’Ottawa la priorité a été accordée à la promotion du réaménagement des friches industrielles dans les secteurs que la Ville a désignés dans son Plan officiel comme prioritaires pour les aménagements intercalaires et la densification, c’est-à-dire le secteur central, les centres polyvalents, les rues principales et les zones situées à moins de 600 mètres de stations de transport en commun rapide existantes ou prévues.

Six vastes actions stratégiques sont recommandées pour faire face aux obstacles au réaménagement des friches industrielles. Elles sont décrites dans la revue historique et dans l’analyse des besoins cruciaux. Ces actions portent sur les demandes d’aménagement et environnementales faites à la Ville, la consultation publique, les programmes d’encouragement financier, la Stratégie de leadership municipal, la sensibilisation, l’éducation et le marketing ainsi que la coordination entre les administrations.

Les programmes d’encouragement financier contenus dans la Stratégie et dans le PAC constituent un cadre général d’outils qui, utilisés ensemble, sont destinés à aider à surmonter ces obstacles à Ottawa. Un résumé des programmes recommandés apparaît à la figure 1, et on y retrouve la manière dont les encouragements diffèrent selon qu’ils sont situés dans un secteur prioritaire ou ailleurs dans le secteur urbain ou les villages désignés.

Figure 1 Résumé des programmes d’encouragement financier

Programme	Emplacement de la propriété
	Secteur central, centres polyvalents, le long des rues principales et zones situées à moins de 600 mètres de stations de transport en commun rapide existantes ou prévues	Ailleurs que dans le secteur central, les centres polyvalents, le long des rues principales et les zones situées à moins de 600 mètres de stations de transport en commun rapide existantes ou prévues
• Programme de subvention pour la réalisation d’une étude de faisabilité de projet	Subvention de contrepartie équivalant à 50 % du coût d’une étude de faisabilité admissible. Subvention maximale de 5 000 $. Une étude par propriété au maximum.	Subvention de contrepartie équivalant à 50 % du coût d’une étude de faisabilité admissible. Subvention maximale de 5 000 $. Une étude par propriété au maximum.
Programme de subvention pour les évaluations environnementales de sites	Subvention équivalant à 50 % du coût d’une évaluation environnementale admissible, d’un plan d’assainissement ou d’une évaluation des risques. Subvention maximale de 15 000 $ par étude Deux études par propriété/projet au maximum Subvention totale maximale de 25 000 $ par propriété/projet.	Subvention équivalant à 50 % du coût d’une évaluation environnementale admissible, d’un plan d’assainissement ou d’une évaluation des risques. Subvention maximale de 15 000 $ par étude Deux études par propriété/projet au maximum Subvention totale maximale de 25 000 $ par propriété/projet.
Programme d’allègement de l’impôt foncier	Annulation de la hausse d’impôt foncier pour une durée maximale de 5 ans. Annulation de la hausse de taxes scolaires pour une durée maximale de 3 ans[3].	Annulation de la hausse d’impôt foncier pour une durée maximale de 5 ans. Annulation de la hausse de taxes scolaires pour une durée maximale de 3 ans³.

Programme de subvention pour la remise en valeur de sites	Subvention équivalant à 70 % du financement des taxes municipales pour une durée maximale de 10 ans	Subvention équivalant à 70 % du financement des taxes municipales pour une durée maximale de 5 ans
Programme de réduction des droits exigibles pour les permis de construire	Subvention équivalant à 30 % des droits de permis de construire	Non disponible
Programme de dispense des redevances d’aménagement	Réduction pouvant atteindre 100 % des redevances d’aménagement dues	Réduction pouvant atteindre 50 % des redevances d’aménagement dues

Afin de minimiser les risques financiers et juridiques liés à l’offre d’encouragements financiers comme des subventions et des aides fiscales, la Ville fera appel à des accords juridiques entre elle et les promoteurs/propriétaires. Ces accords préciseront tous les travaux admissibles à effectuer, le financement municipal, les obligations de la Ville et du requérant, les manquements et les solutions. Les accords habituels pourront être modifiés au besoin afin de s’adapter à certaines friches industrielles et à des circonstances de réaménagement. En aucun cas le montant total de l’aide accordée en vertu des divers programmes ne peut excéder le coût total admissible.

Il est recommandé de déléguer au directeur, Politiques d'urbanisme, d'environnement et d'infrastructure l’autorité d’approuver les demandes de subvention pour les études de faisabilité et les évaluations environnementales, sous réserve de faire rapport annuellement au Conseil. Ces subventions sont limitées à 5 000 $ et 25 000 $ par propriété respectivement. Pour tous les autres programmes d’encouragement, le personnel devra soumettre au Conseil un rapport sur chaque demande.

Pour le

Programme de subvention pour la remise en valeur de sites, une subvention annuelle équivalant à 70 % de la hausse de taxe foncière municipale et résultant du projet sera remise au requérant pour une période pouvant atteindre 10 ans, ou jusqu’à ce que le total des subventions accordées totalise le montant des coûts admissibles, la première des deux éventualités prévalant. La différence de 30 % de la hausse de taxe foncière municipale sera placée dans un compte de capital, le Compte de leadership municipal. Ce fonds renouvelable servira à financer une Stratégie de leadership municipal, constituée notamment d’une Stratégie de marketing. La Stratégie de leadership municipal pourra induire la participation de la Ville, avec ou sans partenaires, directement dans l’évaluation, l’assainissement et le réaménagement de friches industrielles. Les fonds provenant du Compte de leadership municipal peuvent servir à combler l'écart du financement de l’étude de faisabilité et d’assainissement provenant des Fonds municipaux verts (FMV) de la Fédération canadienne des municipalités (FCM). Toute mesure entreprise par la Ville dans le cadre de la Stratégie de leadership municipal devra être approuvée par le Conseil municipal.

La Stratégie de marketing permettra de promouvoir et de commercialiser d’une manière proactive et régulière les programmes d’encouragement au réaménagement des friches industrielles de la ville, ainsi que les possibilités de réaménagement des friches publiques et privées, notamment par le biais de brochures, de contenu Web et de présentations.

Un projet communautaire, lancé dans le bas de la Côte-de-Sable, pourrait profiter du soutien de la Stratégie de réaménagement des friches industrielles. Pendant plus d’un an, un groupe de participants représentant des propriétaires publics et privés se sont réunis régulièrement sous la présidence du conseiller Georges Bédard afin de déterminer comment un terrain situé dans un secteur délimité globalement par l’avenue Lees, l’avenue Mann et la rue Chapel au nord du Queensway (tel qu’illustré dans le document 4), pourrait être réaménagé et mieux utilisé. Ce projet correspond aux objectifs de la Ville en matière de réaménagement des friches industrielles et de promotion d’une planification communautaire de collaboration, comme le décrit le Plan officiel. Le processus en est rendu à un point où des ressources professionnelles sont nécessaires. Il est donc recommandé que le personnel de la Ville soit chargé de demander une subvention dans le cadre des Fonds municipaux verts de la FCM, au nom de tous les partenaires concernés, afin d’entreprendre une étude de planification communautaire durable pour le projet Nicholas-Mann. Une demande de fonds de lancement pour la participation de la Ville d’Ottawa au processus, qui aidera à garantir le financement de tous les propriétaires partenaires dans le projet, fera l’objet de discussions dans un rapport d’accompagnement qui sera examiné en même temps que le présent rapport.

Le Conseil municipal a approuvé un nouveau Règlement municipal sur les redevances d’aménagement en juillet 2004. Ce règlement permet, après autorisation par résolution du Conseil, une exonération des redevances d’aménagement dans le cas des terrains contaminés (friches industrielles) -- article 7(t) du Règlement 2004-298. Nos consultants ont élaboré, avec l’aide du personnel de la Ville, des critères d’admissibilité et des lignes directrices pour la politique existante sur l’exonération des redevances d’aménagement. Ils évoquent la limitation de la somme maximale dont les redevances d’aménagement peuvent être réduites sur une friche industrielle aux coûts d’assainissement environnemental/gestion des risques et les coûts du volet du programme LEED[4], et l’intégration de l’exonération des redevances d’aménagement pur les friches dans le

Programme de subvention pour la remise en valeur de sites.

Répercussions financières

La mise en œuvre intégrale de la Stratégie de réaménagement des friches industrielles et du Plan d’amélioration communautaire nécessiterait un financement de départ de 125 000 $. Comme le programme en est à sa première année, il est difficile de déterminer quelle popularité il connaîtra. On estime cependant que les fonds seraient attribués ainsi : cinq subventions pour étude de faisabilité (25 000 $) et quatre subventions pour évaluation environnementale (100 000 $). Cette somme de 125 000 $ a été ajoutée au montant prévu dans le Plan financier à long terme 3 qui devait être examiné dans le cadre du budget de 2007. Si elle avait été approuvée, la somme aurait été placée dans un fonds renouvelable de leadership municipal (compte de capital) et aurait servi à offrir les diverses subventions non liées à l’impôt foncier prévues dans la Stratégie et le PAC. À la suite du dépôt du rapport sur les orientations budgétaires de 2007, le personnel recommande qu’aucun financement de départ ne soit alloué en 2007 pour appuyer ces deux subventions non liées à l’impôt foncier et qu’une approche reposant sur une mise en œuvre progressive soit plutôt adoptée. Au cours de la première année du programme, seuls les deux programmes financés à même les taxes foncières (Allègement de l’impôt foncier et Subvention pour la remise en valeur de sites), tels qu’ils sont décrits dans la Stratégie et le PAC, seront offerts.

Le programme de dispense des redevances d’aménagement est déjà offert par le Conseil. Ces trois programmes sont considérés comme des incitatifs financiers d’une importance capitale qui peuvent être utilisés pour stimuler le réaménagement des friches industrielles, et qui, surtout, ne nécessitent pas de financement de départ. Le personnel ferait rapport au Conseil, avant le début du processus budgétaire de 2008, sur les résultats et les réussites du programme en 2007. Aucune demande d’embauche de personnel n’a été faite par le Service de l’urbanisme, du transport en commun et de l’environnement en vue de la mise en place de ce programme.

Figure 1 : Résumé des programmes d’encouragement – la page 5 décrit les programmes de subvention, d’aide fiscale et d’exonération des redevances d’aménagement, ainsi que leurs répercussions financières en fonction de l’emplacement de la propriété. La Stratégie de leadership municipal serait financée par la hausse future de 30 % de l’impôt foncier retenue par la Ville en raison de la participation des propriétés au

Programme de subvention pour la remise en valeur de sites et de tout fonds de lancement attribué par le Conseil.

L’administration des programmes d’allègement de l’impôt foncier serait assurée par la Division des recettes de la Direction des services financiers, Services généraux. L’administration des subventions d’allègement requerra l’attribution annuelle d’une somme budgétaire de 35 000 $ pour les ressources humaines et matérielles, somme qui sera inscrite à titre d’exigence du budget de 2007.

Ces coûts seront également décrits dans le PFLT3 et examinés dans le cadre du budget de 2007.

Consultation publique / commentaires :

Une équipe de projet municipale a été constituée pour orienter ce projet sur les friches industrielles. Un groupe consultatif externe, représentant un vaste échantillon des intervenants publics et privés a également été formé afin de maintenir le cap du projet, de prendre en compte le point de vue des intervenants et de s’enrichir de l’expérience de chacun. Le Comité consultatif sur les friches industrielles a fourni des conseils au personnel et à l’équipe de consultants.

Le processus de consultation publique sur la Stratégie de réaménagement des friches industrielles et le PAC a tenu compte du grand public, d’autres groupes intéressés et de comités consultatifs du Conseil (Comité consultatif sur les affaires, Comité consultatif sur l'environnement et Comité consultatif sur les questions rurales).

La première réunion publique sur la Stratégie de réaménagement des friches industrielles et le PAC a eu lieu le 27 juillet 2005 à l’hôtel de ville. Elle avait pour objet d’informer le public et les principaux intervenants sur le processus de l’étude. En ce qui concerne la promotion du réaménagement des friches industrielles, les personnes présentes ont fait des suggestions dans le domaine de la gestion de la croissance, des encouragements financiers, des répercussions sur la collectivité et sur la coordination entre les administrations. Ces suggestions ont servi à orienter l’élaboration de la Stratégie de réaménagement des friches industrielles et du PAC.

Une seconde réunion a été organisée le 1^er février 2006. Elle avait pour but de présenter la Stratégie provisoire de réaménagement des friches industrielles (ainsi que les versions provisoires des programmes d’encouragement et de la stratégie de leadership municipal) au public et aux principaux intervenants, afin d’obtenir leurs commentaires.

Cette réunion publique comprenait un atelier au cours duquel les participants ont été divisés en groupes de travail et chargés de faire part de leur point de vue sur les programmes d’encouragement, les stratégies et les actions proposés dans la Stratégie provisoire de réaménagement des friches industrielles. En fonction des commentaires reçus lors de cette réunion, de ceux fournis sur les fiches par le public après la réunion et de ceux du personnel de la Ville, les versions provisoires de la Stratégie de réaménagement des friches industrielles et du PAC ont été finalisées.

Une section du site Web de la Ville, sous la rubrique des consultations publiques, contient de l’information générale sur le projet des friches industrielles, notamment une trousse d’information communautaire, des avis de toutes les réunions publiques et du matériel de présentation.

Une base de données, qui contiendra les coordonnées de plus de 180 intervenants, a été créée. Tous les groupes concernés ont été avisés des diverses réunions publiques, y compris celle où sera examiné le Plan d’amélioration communautaire, directement par courriel. En ce qui concerne le présent rapport, un avis sur la Stratégie de réaménagement des friches industrielles et le Plan d’amélioration communautaire proposés, ainsi que la date et l’heure de la réunion au cours de laquelle le Comité de l'urbanisme et de l'environnement et le Comité de l'agriculture et des questions rurales examineront la question a paru dans Le Droit et le Ottawa Citizen, en plus d’être affiché sur le site Web de la Ville, sous la rubrique des consultations publiques. Des exemplaires du Plan d’amélioration communautaire proposé ont également été affichés sur le site Web de la Ville et proposés sous d’autres formats sur demande.

BACKGROUND

The purpose of this report is to introduce the Ottawa Brownfields Redevelopment Strategy (Document 1) and the Brownfields Redevelopment Community Improvement Plan (Document 2) and request Council approval of the Strategy, approval of the CIP, the Guidelines for the Development Charge reduction program due to Site Contamination (Document 3) and the Mann Avenue Gateway as a priority Brownfields Project (Document 4). The report also recommends that Council delegate to the Director, Planning, Environment and Infrastructure Policy the authority to approve project feasibility and environmental site assessment grant applications, subject to an annual reporting to Council.

In December 2004, the City was awarded a $100,000 matching grant under the Green Municipal Enabling Funds of the Federation of Canadian Municipalities (FCM) to support the development of a comprehensive Brownfields Redevelopment Strategy and Community Improvement Plan (CIP); an update to the City’s Historical Land Use Inventory, and the Bayview /Somerset area secondary planning study. A contract was signed with the FCM in April 2005.

The City retained a consulting team in June 2005 headed by RCI Consulting of Hamilton and AMEC and PACE Consulting of Ottawa to prepare the Ottawa Brownfields Redevelopment Strategy and CIP.

DISCUSSION

For the purposes of the Ottawa Brownfields Redevelopment Strategy and Community Improvement Plan, “brownfields” are defined as “abandoned, vacant, or underutilized commercial and industrial properties where past actions have resulted in actual or perceived environmental contamination and/or derelict or deteriorated buildings.” This definition is based on the 2003 National Brownfield Redevelopment Strategy for Canada prepared by the National Roundtable on the Environment and Economy.[5]

A corporate wide project team was established to guide the Brownfields project. The project team was comprised of senior staff from Financial Services, Legal Services, Planning, Environment and Infrastructure Policy, Planning and Infrastructure Approvals, Economic Development and Strategic Projects, Building Services, Public Health, Real Estate Services and Infrastructure Services.

An external advisory group representing a broad base of public and private stakeholders was also established to focus the project, address stakeholder perspectives and learn from their expertise. The external Brownfields Advisory Committee had representation from senior City staff and Councillor Holmes; from Federal and Provincial Agencies such as the National Capital Commission, Public Works and Government Services, the Canada Lands Company, the Ottawa International Airport Authority, the Ontario Ministry of Municipal Affairs and Housing, Ministry of the Environment, the Ministry of Finance; from the Ottawa-Carleton Home Builders Association, Building Owners and Managers Association and Windmill Development Group Ltd. as well as representation from Queens University, and the National Research Council and the Montreal Centre for Excellence in Brownfields.

The consulting team identified common mistakes that some Ontario municipalities have experienced and recommended an approach and work plan to address these issues and build on “best practices”. The project was undertaken in four phases: 1. Background review; 2. Planning Policies and Procedures; 3. Critical Needs Analysis; and 4. Brownfields Redevelopment Strategy and CIP.

Background Review

As part of the background review, the consultants reviewed established brownfield programs in municipalities such as Hamilton, Guelph, Brantford, Cambridge and Kitchener, as well as newer programs such as those found in Kingston, Cornwall, and Chatham-Kent. The brownfield programs of four leading United States municipalities (Chicago, Cleveland, Cuyahoga County, Ohio and Phoenix, Arizona) were also reviewed. This review was not intended as an exhaustive analysis, but instead was conducted to identify the advantages and disadvantages of different types of incentive programs, emerging trends and best practices. A summary of the Ontario Municipal Brownfield Redevelopment Incentive Programs is shown in Figure 2.

Figure 2 Summary of Municipal Brownfield Redevelopment Incentive Programs

Type of Program	Municipality
	Brantford	Cambridge	Chatham-Kent*	Cornwall	Guelph	Kingston	Kitchener	Hamilton*	Ottawa
1) Environmental Site Assessment Grant	X ($100K per year)		X	X ($200K first year, total $1,070K over five years)	X ($200K per year for 5 years)	X	X (part of feasibility studies)	X ($100K per year for 5 years)	X ($100K)
2) Project Feasibility Study Grant			X	X			X		X ($25K)
3) Tax-Increment Based Grant	X		X	X	X	X	X (downtown CIP only - max. 3 year tax increment)	X	X
4) Upfront Grant		X
5) Tax Assistance (Freeze/ Cancellation)	X		X	X	X	X		X	X
6) Tax Arrears Cancellation	X	X		X	X	X		X
7) Development Charge Waiver	X	X			X	X		X	X
8)Planning, Development and Other Fees Rebate/Waiver		X (downtown CIP only		X		X	X (downtown CIP only)		X Building permit grant
9) Municipal Leadership/ Brownfield Pilots	X ($800K initial funding, $250K per year)		X	X ($50K first year/total $180K over 5 years)	X	X	X ($500K initial funding)	X	X
10) Planning Policies for Brownfields					X			X	X
11) Brownfields Data Base	X			X	X			X
12) Marketing and Education		X	X		X	X	X	X	X
13) Performance Monitoring			X		X			X	X

Notes:

* Community Improvement Plan pending approval from Minister of Municipal Affairs and Housing.

Taken as a whole, the eight Ontario municipalities in this comparison manage to offer nine different types of financial incentive programs to promote brownfield redevelopment and a number of supporting planning, database, marketing and monitoring programs. The City’s consultants carefully reviewed these programs to determine what elements of these programs would be most appropriate for Ottawa. Of the financial programs noted in Figure 2, the consultants have recommended that the City not use up-front grants, tax arrears cancellation, and planning processing fee rebates, based on a review of the experiences of other Ontario municipalities. All of the other financial programs however are included in the proposed Brownfields Redevelopment Strategy. The proposed strategy also includes recommendations to develop supportive planning policies; develop a Municipal Leadership Strategy; develop a marketing and education program and, a performance monitoring program.

The existing policy framework and government legislation with respect to Brownfields in Canada was also reviewed including: the National Roundtable on the Environment and the Economy (NTREE) in their 2003 National Brownfields Redevelopment Strategy for Canada; the Provincial Policy Statement (2005); the Brownfields Statute Law Amendment Act and brownfields related legislation and regulations; and the Ottawa 20/20 Growth Management Strategy, including the Official Plan, Economic Strategy, Environmental Strategy, as well as the Development Charges (DC) By-law (2004). The DC by-law permits, where authorized by Council resolution, an exemption of development charges for development on contaminated lands (brownfields).

Document 5 of this report contains an overview of key provincial and City policies that support, and have led to the City undertaking a Brownfields Redevelopment Strategy. This overview also includes a discussion of the National Roundtable on the Environment and the Economy National Brownfield Redevelopment Strategy and the Federation of Canadian Municipalities Green Municipal Funds. This overview will help provide the rationale for community improvement of brownfields in Ottawa.

Part of the background review was to investigate why it is important to promote brownfield redevelopment. The City’s consultants noted that more and more municipalities are preparing these plans to address brownfield sites because these sites represent an environmental, economic and social concern in their communities. From an economic perspective, brownfields can result in reduced property values, economic activity and employment. The economic benefits of brownfield redevelopment can include increased employment in urban areas and increased property values. Vacant and underutilized properties in serviced urban areas represent an opportunity to curb urban sprawl and its associated financial and environmental costs.

From an environmental perspective, brownfields can present a threat to ecological and human health and safety. Environmental benefits can include the removal of threats to the health of residents and workers, the protection of groundwater resources, wetlands and wildlife habitats.

From a social perspective, the existence of brownfields can lead to neighbourhood deterioration, threats to personal safety and security, and reduced quality of life. The social benefits of brownfield redevelopment can include neighbourhood revitalization, improved safety and security, the provision of additional housing opportunities through intensification and infill, and an increased sense of community pride.

In addition to the numerous benefits of brownfield redevelopment, the City has identified the Brownfields Redevelopment Strategy and CIP as key components in implementing the Ottawa 20/20 Growth Management Strategy, including the City’s Official Plan adopted in 2003. The Official Plan seeks to manage growth by directing it to the urban area through activities such as infill and intensification. The Official Plan identifies priority areas for infill and intensification such as in the Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or planned rapid-transit stations. The Brownfields Redevelopment Strategy and CIP will play a role in promoting and directing intensification and infill. Combined with the environmental, economic and social benefits that will result from brownfield redevelopment, the Brownfields Redevelopment Strategy and CIP will ultimately help the City achieve its Smart Growth goals.

New Official Plan Policies and Procedures

One of the key deliverables of the Brownfields project were revised Official Plan policies regarding Community Improvement and contaminated sites.

An Official Plan Amendment was developed to accommodate the Brownfields Redevelopment Strategy and to ensure that the City has (1) community improvement policies consistent with legislative authority under Section 28 of the Planning Act to designate community improvement project areas and prepare community improvement plans; and (2) a comprehensive set of Official Plan policies in place to ensure that contaminated and potentially contaminated sites are properly assessed, remediated and/or risk managed prior to development.

The Community Improvement Policies, in accordance with the Planning Act, apply to the Urban Area and Villages as designated in the Official Plan and allow the City to prepare Community Improvement Plans for designated project areas that require enhancement as the result of age, dilapidation, overcrowding, faulty arrangement, unsuitability of buildings or other environmental, social or other community economic development reasons. The intent of the Community Improvement Policies is to improve the urban environment and quality of life in communities with public facilities and infrastructure to advance the Council Approved Official Plan.

The Brownfield Redevelopment Strategy will be implemented through a Community Improvement Plan (CIP) that is enabled as a result of Official Plan Amendment 40 passed by Council on April 26, 2006. As such, it provides the City with the ability to offer a range of financial incentives and engage in municipal leadership activities such as strategic brownfield property acquisition and participation in partnerships to remediate and redevelop brownfield sites. The CIP will also allow for eligible costs of environmental site assessment and remediation to be included in the financial incentive programs to encourage brownfield redevelopment.

The Critical Needs Analysis

In order to understand the key impediments to brownfield redevelopment in Ottawa and the strategies and municipal actions that could potentially be used to successfully overcome these impediments, 14 key stakeholders were chosen and interviewed by the consulting team. With assistance from City staff, the 14 key stakeholders were chosen to provide broad representation from across the brownfield redevelopment industry, associated service providers, the community and the federal government which has a significant land ownership presence (including brownfields) in Ottawa.

The respondents identified the following as the key impediments to brownfield redevelopment in Ottawa:

· Liability;

· Environmental legislation, regulations and standards (including the inability to effectively utilize risk assessment and risk management practices on contaminated sites);

· Municipal planning and environmental policies and approvals;

· The cost of environmental remediation;

· The cost of environmental site assessments;

· Need for more proactive support and leadership from the City;

· Lack of public education and awareness;

· Community concerns;

· Need for improved government coordination on brownfield redevelopment projects.

When the stakeholders were asked to provide more detail on the relative importance of impediments to brownfield development in Ottawa the responses in relative importance were as follows:

Liability/Environmental Legislation;
Cost of environmental remediation;
Time and complexity of municipal planning and environmental approvals;
Lack of public education and awareness;
Cost of environmental site assessments;
Community/neighbourhood concerns;
Inability to use risk based remediation approaches;
Availability of Greenfield sites;
Market conditions;
Lack of alternative remediation techniques.

Based on the key impediments and their relative importance, the consultants also asked the key stakeholders to generally identify strategies and actions that could potentially be used to help overcome the impediments. The input obtained through the interviews was augmented with the review of the experiences and best practices in other municipalities, discussions with the Brownfields Advisory committee and a review of the key impediments identified by the National Roundtable on the Environment and the Economy 2003 report on Brownfields. A review of the City’s Historical Land Use Inventory to determine the geographic extent of potentially contaminated sites was also undertaken.

The results of the critical needs analysis were translated into a draft Brownfields Redevelopment Strategy. This Strategy was presented at a public meeting held on February 1, 2006. A workshop was then held where participants were divided into working groups. The working groups were asked to provide feedback on the impediments to brownfield redevelopment and the actions and incentive programs included in the draft Brownfields Redevelopment Strategy. Based on the input received at the public meeting and via comment sheets submitted by members of the public after the public meeting, the draft Brownfields Redevelopment Strategy was finalized.

Ottawa Brownfields Redevelopment Strategy

The purpose of this Brownfield Redevelopment Strategy (“the Strategy”) is to set out a general policy framework that will guide the City’s program activities to promote brownfield redevelopment in Ottawa. This Strategy forms the basis for the Community Improvement Plan that will be adopted under Section 28 of the Planning Act to assist in implementation of this Strategy (Document 1 refers).

However, higher priority has been given to promoting brownfield redevelopment in the areas the City has identified as priority areas in its Official Plan for infill and intensification, i.e., the Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or planned rapid transit stations.

Other goals of this Strategy include:

i) Promote smart growth, including the reduction of urban sprawl and its related costs, and the construction of energy efficient buildings;

ii) Improve the physical and visual quality of brownfield sites and the urban area;

iii) Improve environmental health and public safety;

iv) Retain and increase employment opportunities;

v) Increase tax assessment and property tax revenues for Ottawa;

vi) Increase community awareness of the economic, environmental and social benefits of brownfield redevelopment;

vii) Utilize public sector investment to leverage significant private sector investment in brownfield remediation, rehabilitation, adaptive re-use, and redevelopment.

Six broad strategic actions are recommended to address impediments to Brownfield Redevelopment. These actions focus on:

Municipal Planning and Environmental Approvals
Public Consultation
Financial Incentive Programs
Municipal Leadership Strategy
Awareness, Education and Marketing
Government Coordination

Municipal Planning and Environmental Approvals

The main recommended actions regarding municipal planning and environmental approvals is that a standardized policy for screening, review and processing of planning applications on potentially contaminated sites be in place; that the record of site condition requirement be clarified and; that the off-site contamination management agreement be more flexible, balanced and be based on a consistent policy and set of criteria.

With the approval of Official Plan Amendment 40, this recommended action is now well on the way to full implementation.

Public Consultation

Three actions were recommended:

· attempt to ensure that public consultation occurs as early as possible on brownfield sites that are subject to development applications;

· consider adopting a more formal consultation process for major redevelopment projects similar to that used by the National Capital Commission for Lebreton Flats which engaged the community and neighbourhood early in the process and involved regular communications such as through, newsletters, mail, informal consultations and meetings;

· where a brownfield development project results in loss of de facto open space in a neighbourhood, attempt to replace the open space within the development or neighbourhood.

These recommendations will be addressed as part of the implementation of the recommendations in the section on Government Coordination and Municipal Leadership and through the City’s planning approvals process.

Financial Incentive Programs

The incentive programs contained in the Strategy are designed to help overcome the impediments to brownfield redevelopment in Ottawa and achieve the goals outlined in the Strategy. The incentive programs can be used individually or together by an applicant, but the total of all grants, loans, exemptions and tax assistance provided in respect of the particular lands and buildings of an applicant under the programs contained in the Strategy shall not exceed the cost of rehabilitating said lands and buildings.

Six types of financial incentive programs are identified. The strategy contains the following incentive programs:

· Project Feasibility Study Grant

· Environmental Site Assessment Grant

· Property Tax Assistance Program

· Rehabilitation Grant Program

· Building Permit Fee Grant Program

· Development Charge Reduction Program

A summary of the recommended programs is shown in Figure 3.

Greater program benefits are generally available for applications in the areas identified as priority areas in the Official Plan for infill and intensification. For example, for the Property Tax Assistance Program the cancellation of the municipal property tax increase would be for up to five years, versus three years for the areas that are not identified as priority for infill and intensification. The Rehabilitation Grant would be available for up to ten years in priority areas versus five years in non-priority areas.

The Building permit grant is recommended to be only available in the priority areas. The grant was set arbitrarily at 30% as an additional incentive to augment the other Brownfield Redevelopment incentive programs and to facilitate and spur adaptive re-use and new construction activity on former brownfield sites in high priority areas.

The reduction in development charges is proposed to be greater for properties that are located in the priority areas for infill and intensification. The difference in the reduction percentages is arbitrarily set at 50%. Though, it is noted that in the Development Charges By-law (2004-298), Section 8.1 (1), that a reduction of an amount equivalent to 50% of the Roads and Structures component of the development charge could be granted for apartments within 500 metres of transitway or light rail station if parking restrictions of one parking space per unit are met.

Figure 3 Summary of Incentive Programs

Program	Location of Property
	In Central Area, Mixed Use Centres, along Mainstreets or within 600 metres of existing/ planned rapid transit stations	Not in Central Area, Mixed Use Centres, along Mainstreets or within 600 metres of existing/planned rapid transit stations
Project Feasibility Study Grant Program	Grant equivalent to 50% of the cost of an eligible project feasibility study. Maximum grant of $5,000. Maximum one study per property.	Grant equivalent to 50% of the cost of an eligible project feasibility study. Maximum grant of $5,000. Maximum one study per property
Environmental Site Assessment Grant Program	Grant equivalent to 50% of the cost of an eligible environmental site assessment, remedial action plan or risk assessment. Maximum grant of $15,000 per study. Maximum of 2 studies per property/project. Maximum total grant of $25,000 per property/project.	Grant equivalent to 50% of the cost of an eligible environmental site assessment, remedial action plan or risk assessment. Maximum grant of $15,000 per study. Maximum of 2 studies per property/project. Maximum total grant of $25,000 per property/project.
Property Tax Assistance Program	Cancellation of the municipal property tax increase for up to 5 years. Cancellation of the education property tax increase for up to 3 years[6].	Cancellation of the municipal property tax increase for up to 3 years. Cancellation of the education property tax increase for up to 3 years.
Rehabilitation Grant Program	Grant equivalent to 70% of the municipal property tax increase for up to 10 years	Grant equivalent to 70% of the municipal property tax increase for up to 5 years
Building Permit Fee Grant Program	Grant equivalent to 30% of building permit fee	Not available
Development Charge Reduction Program	Up to 100% reduction of development charge	Up to 50% reduction of development charge

For all of the other financial incentive programs, staff from Planning and Growth Management would review applications for assistance under the main financial programs that require Council approval. A recommendation report would then be prepared and submitted for Council consideration.

Project Feasibility Study Grant Program

The purpose of the Project Feasibility Study Grant Program is to promote the undertaking of feasibility studies so that potential investors can obtain more and better information with respect to the costs of reusing, rehabilitating and retrofitting brownfield buildings and lands.

Eligible feasibility studies include: structural analyses; evaluation of mechanical and electrical systems; concept plans; and market analyses. A summary of the program is shown in Figure 3. The program description and requirements are described in detail in Document 1.

Staff recommend that this program be offered for an initial period of five years, after which the program be evaluated, with the option to extend the program for up to another five years, subject to the availability of funding as approved by Council.

Environmental Site Assessment Grant Program

The purpose of the Environmental Site Assessment Grant Program is to promote the undertaking of environmental studies so that more and better information is available with respect to the type of contamination and potential remediation costs on brownfield properties. A Phase I Environmental Site Assessment (ESA) has become a standard requirement of most financial institutions. A Phase I ESA does not provide detailed information with respect to the type of contamination and cost of remediation. Therefore, Phase I ESA’s are not eligible for funding under this program. To be eligible to apply for the Environmental Site Assessment Grant Program, a Phase I ESA must have been completed on the property and must show that the property is suspected of environmental contamination.

Eligible environmental studies include a Phase II ESA, Remedial Work Plan, and a Risk Assessment. Environmental site assessment grants will only be offered on eligible properties where there is potential for rehabilitation and/or redevelopment of the property. A summary of the program is shown in Figure 3. The program description and requirements are described in detail in Document 1.

Property Tax Assistance Program

The purpose of the Property Tax Assistance Program is to encourage the remediation and rehabilitation of brownfield sites by providing a cancellation of the property tax increase on a property that is undergoing or has undergone remediation and development to assist with payments of the costs of environmental remediation. This program applies only to properties requiring environmental remediation and/or risk assessment/management.

The legislative authority for the Property Tax Assistance Program is established under Section 365.1 (2) of the Municipal Act, 2001 which allows municipalities to pass a by-law providing tax assistance to an eligible property in the form of cancellation of all or a portion of the taxes levied on that property for municipal and education purposes during the “rehabilitation period” (maximum 18 months from the date that tax assistance begins) and the “development period” of the property, as defined in Section 365.1 of the Municipal Act, 2001. Matching education property tax assistance for eligible properties under the provincial Brownfields Financial Tax Incentive Program (BFTIP), or through any other replacement programs administered by the Ministry of Finance, is subject to approval of the Minister of Finance on a case-by-case basis.

An “eligible property” for the Property Tax Assistance Program is a property within the community improvement project area where a Phase II Environmental Site Assessment (ESA) has been conducted, and that as of the date the Phase II ESA was completed, did not meet the required standards under subparagraph 4i of Section 168.4(1) of the Environmental Protection Act to permit a Record of Site Condition (RSC) to be filed in the Environmental Site Registry.

“Eligible costs” for the Property Tax Assistance Program are the costs of any action taken to reduce the concentration of contaminants on, in or under the property to permit a record of site condition (RSC) to be filed in the Environmental Site Registry under Section 168.4 of the Environmental Protection Act. This includes the costs of:

i) Phase II ESAs, Remedial Work Plans, and Risk Assessments not covered by the Environmental Site Assessment Grant Program;

ii) environmental remediation, including the costs of preparing a RSC;

iii) placing clean fill and grading;

iv) installing environmental and/or engineering controls/works as specified in the Remedial Work Plan and/or Risk Assessment;

v) monitoring, maintaining and operating environmental and engineering controls/works, as specified in the Remedial Work Plan and/or Risk Assessment;

vi) environmental insurance premiums.

In no case will the total amount of tax assistance provided under the Property Tax Assistance Program exceed the total of these eligible costs. A summary of the program is shown in Figure 3. The program description and requirements are described in detail in Document 1.

Rehabilitation Grant Program

The purpose of the Brownfields Rehabilitation Grant Program is to encourage the remediation, rehabilitation and adaptive re-use of brownfield sites by providing grants to help pay for additional rehabilitation costs normally associated with brownfield sites.

The Rehabilitation Grant Program will provide a financial incentive in the form of an annual grant for up to ten years to help offset the cost of rehabilitating eligible brownfield properties only where that rehabilitation results in an increase in assessment value and property taxes on these properties. An application can be made for the Rehabilitation Grant Program or the Property Tax Assistance Program, or both programs together. The annual grant available under the Rehabilitation Grant Program can be paid only once final building inspection has taken place, reassessment of the property has taken place, and the property owner has paid the property taxes in full for the year in which the grant is to be provided. If an application for both the Rehabilitation Grant Program and the Property Tax Assistance Program has been approved, the annual grant available under the Rehabilitation Grant Program will begin when the benefits of the Property Tax Assistance Program end.

“Eligible costs” for the Rehabilitation Grant Program include the costs of:

i) Phase II ESAs, Remedial Work Plans, and Risk Assessments not covered by the Environmental Site Assessment Grant Program or the Property Tax Assistance Program;

ii) environmental remediation, including the costs of preparing a RSC, not covered by the Property Tax Assistance Program;

iii) placing clean fill and grading not covered by the Property Tax Assistance Program;

iv) installing environmental and/or engineering controls/works, as specified in the Remedial Work Plan and/or Risk Assessment, not covered by the Property Tax Assistance Program;

v) monitoring, maintaining and operating environmental and engineering controls/works, as specified in the Remedial Work Plan and/or Risk Assessment, not covered by the Property Tax Assistance Program;

vi) environmental insurance premiums not covered by the Property Tax Assistance Program;

vii) the following Leadership in Energy and Environmental Design (LEED) Program Components[7]:

· base plan review by a certified LEED consultant;

· preparing new working drawings to the LEED standard;

· submitting and administering the constructed element testing and certification used to determine the LEED designation;

viii) demolishing buildings;

ix) building rehabilitation and retrofit works;

x) upgrading on-site infrastructure including water services, sanitary sewers and stormwater management facilities;

xi) constructing/upgrading off-site infrastructure including roads, water services, sanitary sewers, stormwater management facilities, electrical and gas utilities, where this is required to permit remediation, rehabilitation and/or adaptive reuse of the property that is subject of the application.

In no case will the total amount of the grant provided under the Rehabilitation Grant Program exceed the total of these eligible costs.

The annual grant available under the Rehabilitation Grant Program will be offered as a tax-increment based grant on a “pay-as-you go” basis. The developer will initially pay for the entire costs of rehabilitation. When the City receives the incremental property taxes that result from the rehabilitation project, the City will reimburse the applicant in the form of an annual grant equivalent to 70% of the increase in municipal taxes that results from the project for a period of up to ten years, or up to the time when total grant payments equal total eligible costs, whichever comes first.

A summary of the program is shown in Figure 3. The program description and requirements are described in detail in Document 1.

Staff recommend that this program be offered for a period of 10 years.

Building Permit Fee Grant Program

The purpose of the Building Permit Fee Grant Program is to provide an additional incentive to augment the other brownfield redevelopment incentive programs and to facilitate and spur adaptive re-use and new construction activity on former brownfield sites in high priority areas.

For properties in the Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or planned rapid transit stations that have been approved for Property Tax Assistance and/or the Rehabilitation Grant Program, the Building Permit Fee Grant Program will provide a grant equivalent to 30% of the building permit fee payable.

A separate application will not be required for the Building Permit Fee Grant Program. Applicants who have an approved Property Tax Assistance and/or the Rehabilitation Grant Program application will notify Building Services of Planning and Growth Management Department of this at the time of application for building permit application.

Once a building permit has been issued, building construction is complete, and the applicant has met all the terms of their approved Property Tax Assistance and/or the Rehabilitation Grant Program agreement, the City will provide a grant equivalent to 30% of building permit fees paid.

Development Charge reduction program (site contamination)

City Council approved a new Development Charges By-law in July of 2004. This By-law includes a number of exemptions to help support the City’s growth management goals. For example, development charges do not apply to residential development within the Central Area of the city. Development charges are reduced for apartments within 500 metres of transit and light rail stations if parking restrictions of one parking space per unit are met. The Development Charges By-law also permits, where authorized by Council resolution, an exemption of development charges for development on contaminated lands (brownfields)-Section 7(t) of By-law 298-2004.

The monetary value of such an exemption can be very significant and development charge exemptions are often preferred by developers to pay-as-you go grants because development charge exemptions provide much more of an upfront cost savings.

Thus far, the City has utilized this exemption on development charges for only one development on a brownfield site. This is the “Currents” project being built by Windmill Developments at the corner of Holland Avenue and Wellington Street. A green (LEED Gold certified target) mixed-use development which includes the new home of the Great Canadian Theatre Company.

The ability to reduce development charges on contaminated sites will support the City’s Brownfields Redevelopment Strategy, complement the CIP, and will help to achieve the City’s growth management objectives.

The consultants retained by the City have developed, with the assistance of City staff, eligibility criteria and guidelines for the existing Development Charge Exemption policy. This includes limiting the maximum amount by which development charges can be reduced on a brownfield site to the costs of environmental remediation/risk management and LEED program component costs and integrating the development charge exemption for brownfields with the Rehabilitation Grant program. Municipalities such as Hamilton, Brantford, Guelph, Niagara Falls and the Regional Municipality of Niagara use this approach of allowing site remediation costs to be deducted from development charges payable.

As well, to help implement the growth management strategy in the City’s Official Plan, the consultants have recommended that any reduction in development charges be greater for properties in the Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or planned rapid transit stations. For example, the reduction in development charges for properties in the Central Area, Mixed Use Centres, along Mainstreets and within 600 metres of existing or planned rapid transit stations could be up to 100% of the development charge payable. The reduction in development charges in all other areas could be up to 50% of development charges payable.

Proposed guidelines for the Development Charges Reduction Program Due to Site Contamination are included as Document 3.

Example of a Rehabilitation Grant and Development Charge Reduction due to site contamination

Assumptions:

Existing development is a commercial use on a site of a former gas station
Municipal tax portion before redevelopment is a constant $10,233 (2006 taxes)
Site contaminated - estimated clean-up costs- $900,000
Proposed 69 unit residential condominium high-rise development
Estimated municipal tax portion after redevelopment is a constant $232,000
Taxes after redevelopment-taxes before redevelopment = Tax Increment ($232,000 less $10,233 = $221,767)
Estimated development charges to be paid $500,000
Eligible for development charge reduction of 100% due to site contamination ($500,000)-existing development charge exemption program of Council
Balance of eligible site clean-up costs ($900,000-$500,000 (DC reduction) = $400,000 to be paid as rehabilitation grant
10 year period

Rehabilitation Grant is 70% of eligible costs from tax increment. (70% of $221,767 = $155,237) paid annually until total eligible site remediation costs of $400,000 are repaid

30% of tax increment (30% of $221,767 = $66,530) to be added to Brownfields Municipal leadership Revolving Fund

Year

	1	2	3	4	5	6	7	8	9	10	Total
Existing Taxes $	10,233	10,233	10,233	10,233	10,233	10,233	10,233	10,233	10.233	10,233	102,330
Gross new taxes	232,000	232,000	232,000	232,000	232,000	232,000	232,000	232,000	232,000	232,000	2,320,000
Tax Increment $	221,767	221,767	221,767	221,767	221,767	221,767	221,767	221,767	221,767	221,767	2,217,670
70% Grant $	155,237	155,237	89,526		-	-	-	-	-	-	400,000
30% to BMLRF* $	66,530	66,530	66,530		-	-	-	-	-	-	199,590
Revenue	(221,767)	(221,767)	65,711	221,676	221,676	221,676	221,676	221,676	221,676	221,676	1,618,443

*BMLRF-Brownfields Municipal Leadership Revolving Fund

New municipal property tax portion (tax increment)

for years one through 10 $2,218,000

Rehabilitation Grant value for years one through three 400,000

Contribution to BMLRF based on tax increment 199,590

for years one through three _________

Net new municipal portion of property taxes

for years one through ten $1,618,000

Municipal Leadership Strategy

The purpose of the Municipal Leadership Strategy is to set the framework for the City to:

i) better communicate and coordinate activities with other levels of government and the private sector involved in brownfield redevelopment; and,

ii) provide better support and leadership on brownfield redevelopment projects.

The public sector actions contained in the Municipal Leadership Strategy are designed to act as catalysts to leverage private sector investment on brownfield sites.

Coordination on Brownfield redevelopment- Government Coordination

The City will seek to engage other government agencies and Crown corporations involved in Brownfield redevelopment in discussions to develop a process that better coordinates activities from both a regulatory and landowner/developer perspective with the aim to:

· Enhance communication flow

Eliminate duplication
Increase planning efficiencies
Streamline the environmental regulatory approvals process
Outline a formal public consultation process (including communication tools) to be used for major brownfield redevelopment projects

This process could be formalized in two ways. First, it is recommended that the various government agencies and Crown corporations represented on the Brownfields Advisory Committee, and any other government agencies as deemed necessary, be approached to form a sub-group of the Advisory Committee dedicated to dealing with issues of government coordination. This Government Coordination sub-group could meet regularly after the Brownfields Redevelopment Strategy and CIP have been adopted, approved and are in effect. One of the first tasks of this sub-group should be to identify areas of possible duplication and streamlining.

In addition to the creation of the Government Coordination sub-group a cooperative Brownfield Coordination Agreement (BCA) could be established. This agreement would:

· include a description of the structure and process for mutual accountability;

· clarify responsibilities and roles for each government agency based on legislation, or where legislation is vague, based on unique capabilities and resources;

· include a commitment to review planning and regulatory approvals processes to identify and implement efficiencies; and,

· outline a formal public consultation process (including communication tools) to be used for major brownfield redevelopment projects in Ottawa.

Brownfields Coordinator

It has been recommended that the City establish a single point of contact (a brownfields coordinator) for brownfield information and financial incentives on brownfield sites. The role of this coordinator would be to administer applications for the financial incentive applications, coordinate financial incentive applications with planning applications, and provide guidance and advice to developers and their support professionals involved in brownfield redevelopment. The coordinator should also take on the role of facilitator with respect to brownfield redevelopment when there are planning and/or environmental regulatory issues. The staffing of this function would be through the use of existing staff resources of the Planning and Growth Management Department.

Municipal Support and Leadership

Once the Community Improvement Project Area has been designated and a CIP is approved, the City will engage in a proactive Municipal Leadership Strategy to lead by example. Future activities may include:

· Issuing Requests for proposals (RFPs) for purchase, remediation and development of City-owned brownfield sites, such as the Bayview Yards;

· Conducting environmental site assessments on properties controlled or acquired through the tax arrears sales process and conducting RFPs on failed tax sale brownfield properties;

· City involvement in acquiring, assembling, studying, remediating key strategic brownfield sites;

· Development of partnerships with other levels of government (National Capital Commission or Canada Lands Company) and/or with the private sector to clean-up and redevelop publicly and privately owned brownfield sites;

· Leading and participating in pilot projects to promote alternative remediation approaches and technologies;

· Prepare educational and informational materials for the public regarding the importance of brownfield redevelopment; and,

· Implementing a Marketing Strategy to regularly market the City’s incentive programs and brownfield redevelopment opportunities available in Ottawa to brownfield market makers such as property owners, developers, potential end users, and support professionals both within and outside the city.

When identifying and evaluating sites for acquisition, partnering or any of the other municipal leadership actions described in the Strategy and enabled by the CIP, it has been recommended that the City be strategic in its approach. To this end a guideline for identifying priority brownfield sites and projects has been prepared as part of the Strategy and included as well in the CIP (Document 1 refers-Section 7.3).

It is important to note that actions undertaken by the City pursuant to the Brownfields Municipal Leadership Strategy will be subject to approval by City Council.

Staff are recommending that the Municipal Leadership Strategy be funded from the net 30% tax increment that is retained by the City as a result of properties participating in the Rehabilitation Grant Program, and any initial seed funding allocated by Council, and placed into a Municipal Leadership Fund Account. This account should function as a revolving fund.

The allocation of the 30% tax increment to the Municipal Leadership Account will end when the Rehabilitation Grant Program ends. At that time, the City may return funds remaining in the Municipal Leadership Account to general revenues or continue to utilize these funds for leadership activities until the Municipal Leadership Account is exhausted.

The Municipal Brownfield Leadership Account will also provide funding to allow the City to leverage brownfield feasibility study and remediation funding available from the Federation of Canadian Municipalities Green Municipal Funds

Nicholas-Mann Gateway as a priority Brownfield project

For over a year, a group of participants representing public and private land owners, including the City, the National Capital Commission, the University of Ottawa, the Mobin Foundation, with Action Sandy Hill, along with two volunteer process facilitators, have been meeting regularly under the chairmanship of Councillor Georges Bédard to determine how land in a area generally bounded by Lees Avenue, Mann Avenue and Chapel Street north of the Queensway (as shown in Document 4), could be rehabilitated and better used. Additional stakeholders are the Strathcona Heights Tenants Association and the Ottawa Community Housing Corporation who have agreed to attend meetings.

Much of the land is vacant or used as surface parking. The area in question is known to have had industrial uses in the past and some of it was used as a snow dump and municipal works yard. In the context of the guidelines for selecting sites for partnering or other municipal leadership actions, this area would definitely meet the eligibility criteria as a “signature site” given its gateway function, close to downtown location, existing land uses, surrounding land uses and commercial potential.

The stakeholders in this project have agreed to a process that requires stakeholder consensus. To this end a collective statement of the project has been endorsed by all parties and is included as Document 4. It is noted that the process is an innovative community planning method whereby community groups are equal stakeholders with the landowners throughout the planning and development process and beyond. The project is consistent with the City's objectives to pursue brownfields redevelopment and to promote collaborative community planning as detailed in the Official Plan.

The process has now come to a point where professional resources are required. Further activities under the process would fit the eligibility criteria for the FCM's "Green Municipal Fund grants for feasibility studies, field tests and sustainable community plans", to which municipal governments may apply.

It is therefore recommended that City staff be directed to apply to the FCM’s Green Municipal Fund for a grant, on behalf of all partners in the process, to undertake a sustainable community plan under the Municipal Leadership Strategy of the Brownfields Redevelopment Strategy for the Nicholas-Mann project. A request for seed funding for the City of Ottawa’s participation in the process, which will assist in securing funding from all the landowner partners in the project, will be discussed in a companion report that is to be considered at the same meeting as this report.

Monitoring Program

A monitoring Program is included in the proposed strategy. This program would monitor the performance and impact of the incentive programs and the Municipal Leadership Strategy. This information would be used to make adjustments to the incentive programs and the Municipal Leadership Strategy in order to help ensure that the goals of the Brownfields Redevelopment Strategy and CIP are successfully accomplished.

The suggested variables that should be monitored on an individual project and aggregate basis for the incentive programs and the Municipal Leadership Strategy are listed in Document 1. As well, the feedback received from users of the financial incentive programs would also be considered. It is important that the results of the monitoring program be utilized to help ensure that the incentive programs and the Municipal Leadership Strategy be effective for both small and large brownfield projects.

It is recommended that the City also attempt to monitor the results of these programs in terms of financial and social benefits. For example, the increase in long-term property tax revenues from a brownfield redevelopment project can be compared to the total municipal financial incentive provided to the project to determine which projects are providing the highest return on investment. The cost savings associated with not having to extend public services into greenfield areas could be monitored. Increases in use of public transit and improvements in property values and social conditions in neighbourhoods where brownfield redevelopment projects are taking place should also be monitored.

Further, it is recommended that the Advisory Committee that was struck to assist the City with preparation of the Strategy and CIP be maintained and meet as required after the Brownfields Redevelopment Strategy and CIP have been adopted, approved and are in effect. One of the key roles of the Advisory Committee would then be to assist the City in monitoring implementation of the Brownfields Redevelopment Strategy and CIP.

Progress on implementation and the empirical results of the incentive programs and the Municipal Leadership Strategy would be reported on an annual basis to City Council. These monitoring results would also be used to recommend any adjustments that should be made to the terms and requirements of the financial incentive programs in order to improve these programs.

Brownfields Data Bases as a monitoring tool and information resource

As part of the background review the City’s consultants investigated the best practices of a number of Ontario municipalities. It was noted that some of these municipalities have or are developing databases containing information on brownfield sites (either where the municipality has carried out environmental site assessments on properties or by characterizing properties based on their risk of environmental contamination).

While potentially useful as an information resource and program monitoring tool, experience in several municipalities suggests that these databases of potential pollution sources can be difficult to establish and maintain over a large area, such as an entire municipality. Where these databases involve simply a map, and/or listing of properties, and/or Phase I ESA, these databases do little to directly promote brownfield redevelopment because developers of brownfield sites require the detailed information produced by a Phase II ESA in order to make sound investment decisions.

Few property owners will volunteer their Phase II ESA’s. Experienced brownfield developers will take time to educate themselves on available brownfield sites in a community and the environmental, planning and other issues surrounding those sites.

An inventory of brownfield sites that does not contain detailed environmental information adds little value to this process. Also, a municipality may attract liability by inaccurately labelling (or not labelling) a property as a “brownfield site” in its database/mapping. However, a database does provide a valuable screening tool to assist in the process of identifying potentially contaminated sites. This is why the City uses an approach that is based on an Historical Land Use Inventory as part of its environmental due diligence associated with development review. This inventory was also used to determine the geographic distribution of potentially contaminated sites. This is discussed in more detail in Document 6. The geographic distribution of potentially contaminated sites was used to determine the boundary of the Community Improvement Project Area as part of the CIP.

Awareness, Education and Marketing

Marketing Strategy

The incentive programs in the Strategy and CIP are designed to make brownfield redevelopment opportunities in Ottawa much more attractive. Therefore, it is important to the successful implementation of this Strategy and CIP that these incentive programs and brownfield redevelopment opportunities available in Ottawa be effectively communicated to property owners, developers, potential end users, and support professionals both within and outside the city. The purpose of this Marketing Strategy is to proactively and regularly advertise and market the City’s brownfield redevelopment incentive programs and publicly and privately owned brownfield redevelopment opportunities in order to help implement the Brownfields Redevelopment Strategy and CIP.

The comprehensive Ottawa Marketing Strategy would:

market brownfield redevelopment programs and brownfield redevelopment opportunities;
provide information on obtaining assistance and advice, and educate the public and other stakeholders (including governmental bodies) on environmental site assessment and remediation processes;
include an internal communications component to educate City staff on the benefits of brownfield redevelopment, the City’s Brownfields Redevelopment Strategy and CIP, and how it will affect departmental operations and decision-making; and,
include the development of a brochure that describes the City’s brownfield redevelopment incentive programs and information on the City’s web site.

Marketing Tools

The marketing of the Brownfield Redevelopment Strategy should be a comprehensive multi-media program containing information, education and advertising components. The following key tools are recommended to implement the Marketing Strategy:

a) Publications

i) A brochure containing pertinent points (as updated) from the Ottawa Brownfields Redevelopment Community Information Package and a description of the financial incentive programs available from the City, including general program requirements and how to apply;

ii) A profile of brownfield redevelopment opportunities (where landowners agree to be included in such a document) within Ottawa should be developed and kept up to date;

iii) The brownfield incentive programs and brownfield redevelopment success stories should be profiled in planning and economic development documents and newsletters;

iv) Applications for the incentive programs should be accompanied by Program Guides that provide a description of “how to apply” for the programs.

b) Web Site Materials

i) The web page should be enhanced via the addition of the Ottawa Brownfields Redevelopment Community Information Package;

ii) The profile of brownfield redevelopment opportunities should be added to any existing searchable real estate databases.

c) Presentations to Brownfield Stakeholders and Support Professionals

The brownfield coordinator should make periodic presentations on the Strategy, the incentives programs and brownfield success stories to industry groups such as the development community, real estate, environmental and planning consulting, finance, insurance and legal professionals.

d) Brownfield Conferences

i) The City should consider organizing and hosting a conference on brownfield redevelopment either on its own or in partnership with another organization, subject to the availability of funding. The goal of this conference should be to inform and educate all of the stakeholders in brownfield redevelopment (developers, builders, lenders, end users, consultants, real estate and legal professionals, community groups, City staff, politicians and media) on positive approaches to brownfield redevelopment. The conference could also be used by the City to introduce and showcase the programs contained in its Brownfields CIP as well as brownfield redevelopment success stories and opportunities in the City of Ottawa.

ii) Where possible City staff should also attend brownfield conferences in Canada and the United States in order to proactively market the City’s brownfield redevelopment programs and opportunities, if required, based on the take-up of the program and budget considerations, utilizing the above-noted publications and materials.

e) Media Releases

Press releases and profiles of successful brownfield redevelopment projects and initiatives should be sent to local and outside media.

Staff from Planning, with the advice of staff from Real Property Asset Management, Finance, Economic Development, Public Health and Communications, would develop and implement the marketing program. The advice and guidance of the Ottawa Brownfields Advisory Committee would also be sought.

Ottawa Brownfields Redevelopment Community Improvement Plan (CIP)

Section 28 of the Planning Act allows municipalities with provisions in their Official Plans relating to community improvement to designate by by-law a “community improvement project area” and prepare and adopt a Community Improvement Plan (CIP) for the community improvement project area. Once the Community Improvement Plan has been adopted by the municipality and approved by the Minister of Municipal Affairs and Housing, the municipality may exercise authority under Section 28(6) or (7) of the Planning Act or Section 365.1 of the Municipal Act, 2001 in order that the exception provided for in Section 106(3) of the Municipal Act, 2001 will apply. That is, approval of the CIP by the Minister of Municipal Affairs and Housing is required before any new financial incentive programs can be offered by the City unless permitted under other provincial legislation.

Municipalities may offer other incentive-based programs such as grants under the Heritage Act, reducing or cancelling of fees for planning applications under the Planning Act, heritage property tax relief under the Municipal Act, or exempting all or part of a development charge under the Development Charges Act.

The purpose of this CIP is to act as the primary vehicle for implementing the Ottawa Brownfields Redevelopment Strategy by providing a framework containing financial incentive programs and a municipal leadership strategy that will encourage the remediation, rehabilitation and adaptive reuse of brownfield properties in Ottawa. Furthermore, implementation of this CIP will help the City meet its growth management goals.

The exemption of development charges due to site contamination is an existing program of Council. The ability to offer this incentive does not require provincial approval under Section 28 of the Planning Act. A summary of the guidelines have been included in the CIP for information purposes only and do not form part of the CIP. This incentive-based program is intended to augment and support the programs contained in the CIP. The proposed guidelines for the reduction in development charges due to site contamination will require the approval of Council, as would any application for reduction in development charges. All marketing materials, application guides and forms will contain reference to all the financial programs offered by the City to support brownfields redevelopment.

The incentive programs contained in the Strategy and CIP can be used individually or together by an applicant, but the total of all grants, loans, exemptions and tax assistance provided in respect of the particular lands and buildings of an applicant under the programs contained in the Strategy and CIP shall not exceed the cost of rehabilitating said lands and buildings. The purpose, type, duration, eligibility criteria and application requirements for each of the financial incentive programs is described in the CIP (Document 2).

ENVIRONMENTAL IMPLICATIONS

Brownfields are defined as “abandoned, vacant, or underutilized commercial and industrial properties where past actions have resulted in actual or perceived environmental contamination and/or derelict or deteriorated buildings.” The various programs, actions and policies identified in the Strategy and in the CIP will encourage the redevelopment of brownfield properties, support the growth management principles of Ottawa 20/20, assist in responsibly managing aspects of the City’s environment as established in the Environmental Strategy and will ensure that contaminated or potentially contaminated sites are properly assessed, remediated and /or risk managed prior to development. Brownfield redevelopment is identified as a key strategy for promoting reinvestment in existing urban areas and for reducing the need to expand into greenfield sites. The remediation and redevelopment of brownfield sites will help to promote an environment that is cleaner and a city that is more environmentally sensitive which will assist in meeting one of the Environmental Strategy’s goals of “clean air, water and earth”.

RURAL IMPLICATIONS

The Community Improvement Project area for the Brownfields Community Improvement Plan includes all 26 villages as designated in the City Council Approved Official Plan. This will permit the CIP to promote the remediation, rehabilitation, adaptive reuse, redevelopment and overall improvement of brownfield sites in villages across the municipality. The incentive programs that are contained in the CIP along with the actions and programs contained in the Redevelopment Strategy will together assist in addressing the impediments to brownfield redevelopment in villages.

CONSULTATION

For this report, a notice advertising the proposed Brownfields Redevelopment Strategy and Community Improvement Plan and the date and time of the meeting where the Planning and Environment and Agriculture and Rural Affairs Committee would consider the matter appeared in the Ottawa Citizen and Le Droit and was posted on the City’s website under public consultation. Copies of the proposed Community Improvement Plan were also posted on the City’s website and made available in other forms upon request.

The draft Brownfields Redevelopment Strategy including the draft financial incentives and municipal leadership strategy was presented to the Business Advisory Committee on June 13, 2006; to the Environmental Advisory Committee on July 13, 2006 and; to the Rural Issues Advisory Committee on July 18, 2006. The Business Advisory Committee and the Rural Issues Advisory Committee were supportive of the proposed Brownfields Redevelopment Strategy.

The Environmental Advisory Committee approved the following motion:

“Whereas the EAC appreciates the need for the City of Ottawa to develop and implement a strategy for identifying and determining the best plan for dealing with individual brownfields sites in the City; and, such a plan must place the public interest as the highest priority;

THEREFORE BE IT RESOLVED that the EAC supports the implementation by the City of a program to encourage the development of brownfield sites by setting the legislative, policy, social and financial framework for brownfields development; with individual properties to be subject to existing and future environmental, human ecological health, and planning objectives;

AND BE IT FURTHER RESOLVED THAT EAC members, working through the Chair, provide further input and advice directly to the PEC, as an addendum from the EAC to the staff report, on this topic.”

Section 1.2 of the Brownfields Redevelopment Community Improvement Plan (Document 2 provides the rationale for Brownfields redevelopment highlighting the environmental, social and economic benefits. Section 2.0 of the Brownfields Redevelopment Community Improvement Plan describes the legislative authority and planning policies that form the basis of the plan. Section 2.9 includes the rationale from the Council Approved Environmental Strategy that supports the redevelopment of brownfields in Ottawa.

Document 5 of this report contains an overview of the key National, Provincial and City policies that support, and have led to, the City undertaking a Brownfields Redevelopment Strategy.

The first public meeting on the Brownfields Redevelopment Strategy and CIP was held July 27, 2005 at Ottawa City Hall. The purpose of this meeting was to inform the public and key stakeholders of the study process. Approximately 50 people attended the public meeting. With respect to promoting brownfield redevelopment, those in attendance at the public meeting made suggestions in the areas of growth management, financial incentives, community impact and government coordination. These redevelopment suggestions were used to help guide development of the Brownfields Redevelopment Strategy and CIP.

A second public meeting was held on February 1, 2006. The purpose of this meeting was to present the Draft Brownfields Redevelopment Strategy (including draft financial incentive programs and municipal leadership strategy) to the public and key stakeholders so as to obtain their comments. Approximately 50 people attended this public meeting. This public meeting included a workshop where participants were divided into working groups and asked to provide feedback on the proposed incentive programs, strategies and actions contained in the Draft Brownfield Redevelopment Strategy. Based on the input received at this public meeting, comment sheets submitted by members of the public after the public meeting, and comments provided by City staff, the Draft Brownfields Redevelopment Strategy and CIP were finalized.

A section of the City’s website under public consultation has background information on the Brownfields project including a community information package, notices of all public meetings, and presentation materials. This section was developed as a vehicle that is used to promote the project and will be enhanced as part of the implementation of the project, if approved by Council. For more information see the link:

Http://www.ottawa.ca/public_consult/brownfield/index_en.html

The project was also supported by an external public/private Brownfields Advisory Committee which met over the course of the assignment and provided direction and advice to the consulting team.

A database was created with which included over 180 stakeholders from various public and private organizations and agencies as well as engineering, planning, environmental and architectural consultants; lawyers, financial, insurance and real estate specialists; commercial and residential land owner/developers; construction companies; environmental remediation companies; waste management companies; private utilities; community associations and other interested parties. All of these groups were advised of the various public meetings including the meeting to consider the Community Improvement Plan, via direct e-mail.

FINANCIAL IMPLICATIONS

The funds requested would be used to offer the various grants that are not property tax-based as described in the Strategy and CIP. Given the Budget Directions Report 2007 staff are recommending that no start-up funds be allocated for 2007 to support these two none property-tax based grants and that instead a phased implementation approach be adopted. In the first year of the program only the two property tax-based programs (Property Tax Assistance Program and the Rehabilitation Grant Program) as described in the Strategy and CIP would be offered. The development charge reduction program is a current program of Council. These three programs are considered to be very important financial incentives that can be used to spur Brownfields redevelopment and importantly they do not require any start-up funds. Staff would report back to Council prior to the 2008 budget process on the success and outcomes of the 2007 program.

There is no requirement for additional staff within Planning, Transit and the Environment to implement this program.

These costs will also be identified in the LRFP3 and be considered as part of the 2007 budget.

SUPPORTING DOCUMENTATION

The following supporting documents have been issued separately and are on file with the City Clerk:

Document 1 Ottawa Brownfields Redevelopment Strategy

Document 2 Ottawa Brownfields Redevelopment Community Improvement Plan

Document 3 Guidelines for the Development Charge Reduction Program Due to Site Contamination

Document 4 Nicholas-Mann Gateway Process

Document 5 Provincial, City and National Policy context

Document 6 Historical Land Use Inventory

DISPOSITION

Planning, Transit and the Environment Department to prepare the implementing by-laws and forward to Department of Corporate Services, Legal Services Branch

Department of Corporate Services, Legal Services Branch to forward the implementing by-laws to City Council.

Planning, Transit and the Environment Department and Corporate Services Department, to prepare all required documents and forward the record and the adopted community improvement plan within 15 days to the Ministry of Municipal Affairs and Housing for approval.

Planning, Transit and the Environment Department to prepare a request for funding to the Federation of Canadian Municipalities under the Green Municipal Funds to obtain a grant to undertake a sustainable community planning study for the Nicholas-Mann Gateway project.

Planning, Transit and the Environment Department to implement the Strategy and CIP.

Planning, Transit and the Environment Department to prepare reports to Council on applications for property tax assistance grants, rehabilitation grants and requests for development charge reductions due to site contamination.

Planning, Transit and the Environment Department to prepare an annual report on grants (Project Feasibility Grants and Environmental Site Assessment Grants) that have been delegated to the Director of Planning, Environment and Infrastructure Policy for approval.

Planning, Transit and the Environment to prepare an annual Brownfields Redevelopment monitoring report to Council.

[1] Generally, matching education property tax assistance will last for a maximum of three years. Extensions are subject to the approval of the Minister of Finance.

[2] LEED-Leadership in Energy and Environmental Design.

[3] En général, L’aide de contrepartie au titre des impôts fonciers prélevés aux fins scolaires peut durer 3 ans au maximum. Les prolongements doivent être approuvés par le ministère des Finances.

[4] LEED- Leadership in Energy and Environmental Design.

[5] National Roundtable on the Environment and the Economy (NRTEE). 2003. Cleaning Up the Past, Building the Future – A National Brownfield Redevelopment Strategy for Canada. Ottawa, Ontario.

[6] Generally, matching education property tax assistance will last for a maximum of three years. Extensions are subject to the approval of the Minister of Finance.

[7] LEED-Leadership in Energy and Environmental Design. The inclusion of these costs is aimed at encouraging the incorporation of Smart Growth design principles into new/retrofit building construction.