8. BROWNFIELDS
GRANT APPLICATION - CLYDESDALE SHOPPING CENTRES LIMITED - 1357 BASELINE ROAD DEMANDE DE SUBVENTION POUR LA REMISE EN VALEUR DES
FRICHES INDUSTRIELLES – CLYDESDALE
SHOPPING CENTRES LIMITED – 1357, CHEMIN BASELINE |
That Council:
1. Approve
the Brownfields Rehabilitation Grant Application
submitted by Clydesdale Shopping Centres Limited, owner of the property at 1357
Baseline Road, for a Brownfields Rehabilitation Grant
not to exceed $1,784,275,
payable as a property tax rebate, to Clydesdale Shopping Centres Limited over a
maximum of 10 years, subject to the establishment of, and in accordance with,
the terms and conditions of the Brownfields
Rehabilitation Grant Agreement;
2.
Direct staff
to enter into a Brownfields Rehabilitation Grant
Agreement with Clydesdale Shopping Centres Limited establishing the terms and
conditions governing the payment of the Brownfields
Rehabilitation Grant, for, and redevelopment of, 1357 Baseline Road, satisfactory
to the Deputy City Manager, Infrastructure Services and Community
Sustainability, the City Solicitor and the City Treasurer; and
3.
That the
terms and conditions referred to in Recommendation 2 include the retention of
funding until such time as, where a single large format store is located in the
east portion of the site as part of the first phase of development, that at
least two of the six buildings shown on the concept plan, submitted in support
of this Application, are constructed also as part of the first
phase along either Baseline Road or Clyde Avenue frontage and are completed for
occupancy within three years of the commencement of the large format store.
RecommandationS du ComitÉ
Le Conseil :
1.
Donne son aval à la demande de subvention pour la remise en valeur des
friches industrielles présentée par Clydesdale Shopping Centres Limited, propriétaire du 1357, chemin
Baseline, en vue d’une subvention pour
la remise en valeur des friches industrielles d’au plus 1,784,275 $,
payable sous la forme de remise de taxes foncières à Clydesdale
Shopping Centres Limited pendant au
plus dix (10) ans, sous réserve de l’adoption des modalités de cette
demande de subvention et conformément à celles‑ci;
2.
Confie au personnel la tâche de conclure avec Clydesdale Shopping Centres Limited une
entente de subvention pour la remise en valeur des friches industrielles,
dans laquelle seront stipulées les
modalités du versement d’une subvention pour la remise en valeur des friches
industrielles, en vue du réaménagement du 1357, chemin Baseline, à la satisfaction de la directrice municipale
adjointe, Services
d'infrastructure et viabilité des collectivités, du chef du contentieux et de la trésorière municipale; et
3.
Que les modalités auxquelles fait
référence la recommandation 2 comprennent la retenue du financement jusqu’à ce
qu’un magasin individuel de grand format soit installé dans la partie est du
site dans le cadre de la première étape du réaménagement, qu’au moins deux des
six bâtiments indiqués sur le plan conceptuel présenté à l’appui de la demande,
soient également construits dans le cadre de la première étape, soit le long du
chemin Baseline, soit en bordure de l’avenue Clyde et qu’ils soient prêts aux
fins d’occupation dans les trois ans suivant le début des travaux du magasin de
grand format.
DOCUMENTATION
1. deputy City Manager’s report Infrastructure Services and Community
Sustainability dated 6 May 2010
(ACS2010-ICS-CSS-0009).
Corporate Services and
Economic Development Committee
Comité des services organisationnels et du développement économique
and Council / et au
Conseil
Submitted by/Soumis par :
Nancy
Schepers, Deputy City Manager/
Directrice municipale adjointe,
Infrastructure
Services and Community Sustainability/Services d’infrastructure et Viabilité
des collectivités
Contact Person/Personne ressource : Johanne Levesque, Director/Directrice, Community
Sustainability Services/Services de viabilité des collectivités
(613) 580-2424 x 12257 Johanne.Levesque@Ottawa.ca
That Corporate Services and Economic Development Committee recommend
Council:
1. Approve the Brownfields
Rehabilitation Grant Application submitted by Clydesdale Shopping Centres Limited,
owner of the property at 1357 Baseline Road, for a Brownfields Rehabilitation
Grant not to exceed $1,784,275,
payable as a property tax rebate, to Clydesdale Shopping Centres Limited over a
maximum of 10 years, subject to the establishment of, and in accordance with,
the terms and conditions of the Brownfields Rehabilitation Grant Agreement;
2. Direct staff to enter
into a Brownfields Rehabilitation Grant Agreement with Clydesdale Shopping
Centres Limited establishing the terms and conditions governing the payment of
the Brownfields Rehabilitation Grant, for, and redevelopment of, 1357 Baseline
Road, satisfactory to the Deputy City Manager, Infrastructure Services and
Community Sustainability, the City Solicitor and the City Treasurer; and
3. That the terms and
conditions referred to in Recommendation 2 include the retention of funding
until such time as, where a single large format store is located in the east
portion of the site as part of the first phase of development, that at least
two of the six buildings shown on the concept plan, submitted in support of
this Application, are constructed also as part of the first phase along either
Baseline Road or Clyde Avenue frontage and are completed for occupancy within
three years of the commencement of the large format store.
Le Comité des services
organisationnels et du développement économique recommande
que le Conseil :
1.
Donne son aval à la demande de subvention pour la remise en valeur des
friches industrielles présentée par Clydesdale Shopping
Centres Limited, propriétaire du
1357, chemin Baseline, en vue d’une
subvention pour la remise en valeur des friches industrielles d’au plus
1,784,275 $, payable sous la forme de remise de taxes foncières à
Clydesdale Shopping Centres Limited pendant
au plus dix (10) ans, sous réserve de l’adoption des modalités de cette
demande de subvention et conformément à celles‑ci;
2.
Confie au personnel la tâche de conclure avec Clydesdale Shopping Centres Limited une entente de subvention pour la remise en valeur des friches
industrielles, dans laquelle
seront stipulées les modalités du versement d’une subvention pour la remise en
valeur des friches industrielles, en vue du réaménagement du 1357,
chemin Baseline, à la satisfaction de
la directrice municipale adjointe, Services d'infrastructure et viabilité des collectivités, du chef du contentieux et de la trésorière
municipale; et
3.
Que les modalités auxquelles fait
référence la recommandation 2 comprennent las retenue du financement jusqu’à ce
qu’un magasin individuel de grand format soit installé dans la partie est du
site dans le cadre de la première étape du réaménagement, qu’au moins deux des
six bâtiments indiqués sur le plan conceptuel présenté à l’appui de la demande,
soient également construits dans le cadre de la première étape, soit le long du
chemin Baseline, soit en bordure de l’avenue Clyde et qu’ils soient prêts aux
fins d’occupation dans les trois ans suivant le début des travaux du magasin de
grand format.
Brownfields are properties where past actions have resulted in actual environmental contamination and/or derelict or deteriorated buildings. They may be vacant, abandoned or underused.
Council adopted the Brownfields Redevelopment Community Improvement Plan (BRCIP) on April 27, 2007.
On December 1, 2009 the Corporate Services and Economic Development Committee, while considering a Brownfields Rehabilitation Grant application (reference ACS2008-ICS-CSS-0004 -Clydesdale Shopping Centres Limited) carried the following motion:
"That Staff bring forward to Corporate Services and Economic Development committee and Council recommendations for amendments to the policy in Q1 2010 that insure the policy is used to achieve its intent; and that a moratorium be placed on the use of the policy until amendments to the policy are approved by Council."
In addition was a direction to
staff: “That Community and Sustainability
Services staff ensure that the policy is applied to land, not buildings."
Implicit in the motion was a deferral of the Clydesdale Shopping Centres Limited Rehabilitation Grant application until amendments to the BRCIP are approved by Council. After which this application would be brought forward for consideration under the provisions of any Council approved revisions to any of the financial incentives offered under the approved brownfields program.
A review of the approved
brownfields program was undertaken by RCI
Consulting of
The consultant recommended two revisions to the Brownfields Rehabilitation Grant Program: reduction of eligible costs for on-site infrastructure upgrading of water services, sanitary sewers and stormwater management facilities from 100 to 50 per cent; and, the elimination of off-site infrastructure upgrading and construction as an eligible cost.
No other program reductions were recommended by the consultant or by staff. The recommendations were brought forward in a report to the CSEDC on May 4, 2010 (reference ASC2010-ICS-CSS-0003). CSEDC recommended that Council direct staff to prepare the necessary amendments to the Rehabilitation Grant contained within the Brownfields program. Council approved these recommendations on May 12, 2010.
As a result of Council’s approval,
the moratorium on the use of the brownfields program can be lifted allowing Rehabilitation
grant applications that have been deferred or are pending to be brought forward
by staff for Committee and Council consideration under the new amended policy
regime as part of the continued implementation of the City’s Brownfields
Redevelopment Strategy.
Clydesdale Shopping Centres Limited, filed an application for a Brownfields Rehabilitation Grant for the clean-up, demolition and redevelopment of 1357 Baseline Road, a 6.22-hectare property that contained a 19,245-square metre, two-storey above grade building (with a basement). The application was filed with the City in November of 2008, and later amended in September of 2009 to reflect a revised site development proposal. The building is the former Laurentian High School built in phases between 1956 and 1997. The property was declared surplus by the Ottawa-Carleton District School Board in 2005. It was acquired by Clyde Baseline Development Inc. (now Clydesdale Shopping Centre Limited) in July 2007.
Phase I and II Environmental Site Assessments were prepared in 2007 by SEACOR Environmental Inc. for the school board in preparation for the sale of the property. SEACOR identified a number of environmental impacts from petroleum-based products under, and in the vicinity of the heating plant (boiler room) located at the east end of the building.
After the property was purchased by Clydesdale Shopping Centres Limited additional subsurface investigations were conducted by Paterson Group Inc. in July and September of 2008. The results confirmed the previous analytical findings and as well delineated the area impacted by petroleum hydrocarbons likely from former underground fuel oil storage tanks located on site.
The soil and groundwater test
results are in excess of the applicable Ministry of the Environment (MOE) site
standards for commercial development.
The recommendations of the
The building, according to a “Designated Substance Survey” report prepared by SEACOR Environmental Inc., contained asbestos in a number of construction materials that must be removed prior to demolition. In addition, lead, mercury, silica, and minor quantities of polychlorinated biphenyls (PCBs) and Chloroflourocarbons (CFCs) were also identified in various parts of the building.
The site qualifies as an eligible "brownfield" under the City's Brownfields CIP.
The eligible costs for the Clydesdale Shopping Centre Rehabilitation Grant application have been modified to reflect Council’s revised eligible infrastructure cost components under the amended Brownfields Rehabilitation Grant program, and in addition, include actual costs rather than estimates for some of the eligible costs.
The purpose of this report is to bring the Rehabilitation Grant application for 1357 Baseline Road before Committee and Council for approval.
The Rehabilitation Grant Program is a tax-increment based grant (property tax rebate) funded through the tax increase resulting from the redevelopment of the property. The tax-increment grant is not paid in advance but is directly tied to the amount of development actually completed on the property. If the development does not proceed, then no grants are paid. If only a phase of project is completed within the time period of the grant, then the grant is based solely on this amount of development.
The Clydesdale Shopping Centres Rehabilitation Grant Application
The required documents that are to be submitted to the City as part of a Rehabilitation Grant application are described in Document 2. Staff reviewed the submissions and deemed the application to be complete in November 2008. The original grant application was amended slightly in September 2009 to reflect a revised site development proposal. Given the deferral of the application by CSEDC on December 1, 2009, staff requested and received up-dated cost information which has been included in the revisions to the eligible costs which are shown in Document 3.
Remediation Program
The remediation program indicated that all contaminated soil and bedrock would be excavated from the site for off-site disposal at a Ministry of the Environment licensed landfill facility. All hydrocarbon-impacted groundwater would be pumped during the excavation program by an MOE licensed pumping contractor for off-site disposal.
All asbestos containing materials and, all other hazardous materials identified in the designated substance survey, would be removed and managed as part of the building decommissioning and demolition. All of these rehabilitation works have been completed. A record of site condition #66519 was filed on the Ontario Ministry of the Environment’s Brownfields Environmental Site Registry on December 09, 2009 indicating that the site has been remediated to permit the change of use from institutional to the most sensitive property use-residential.
While these rehabilitation works
have been completed it is important to note that these works are still eligible
costs under the provisions of the Brownfields Redevelopment Community Improvement
Plan. This provision is provided in Section 6.6.3. (a), of the Rehabilitation
Grant which states that: “A grant
application must be submitted to the City prior to the start of any
rehabilitation works to which the grant will apply.”
The applicant advised staff in
June, 2009 that they would be commencing demolition of the school building in
August, 2009 and then proceeding later with site remediation activities. These
activities were undertaken on the full understanding and written acknowledgment
by the applicant that under the General Program Requirements, as stated in Section
6.2 (b) of the BRCIP that: “The City is
not responsible for any costs incurred by an applicant in relation to any of
the programs, including without limitation, costs incurred in anticipation of a
grant and/or tax assistance.”
City staff acknowledged in June, 2009 that the applicant’s Brownfields Rehabilitation Grant application was submitted and deemed to be complete in November, 2008 and confirmed that any works commenced before final consideration of the complete application by Committee and Council are still eligible costs under the administrative provisions of the Rehabilitation Grant Program, but subject to the proviso noted above.
Proposed Redevelopment Scheme
Council approved an amendment to the zoning by-law with a holding provision on October 14, 2009 (Ref N°: ACS2009-ICS-PGM-0131) to permit development of the site as a predominately retail centre with some upper floor space for those buildings proposed to front onto Baseline Road and Clyde Avenue with future potential to accommodate residential and/or more intense office development. The proposed development is focused on providing a stand-alone large format retail store located in the northeast quadrant of the site. The remainder of the site would be framed with buildings with upper floors accommodating approximately 7,620 square metres of office space. The total retail area proposed for the site is approximately 20,400 square metres with the total density proposed reflecting a 0.5 Floor Space Index (FSI).
Part of the requirements to be satisfied for the lifting of the holding provision include a requirement to construct, along with the large format store, two street edge buildings within the first phase. This condition has been tied to the release of any approved brownfields grant funding. The specific requirements from the zoning report (Document 2, 20d as amended by Council and 20e) are:
“20 d) Where a single large
format store is located in the east portion of the site as part of the first
phase of development, that at least two of the six buildings shown on the
concept plan (included as Document 4) shall be constructed also as part of the
first phase along either the Baseline Road or Clyde Avenue frontage. And, that
these buildings be completed for occupancy within
three years of the commencement of construction of the large format store.
20 e)
The City will retain brownfields grant funding until the street edge buildings
required by 20 (d) have been completed.”
A lifting of the Holding By-law was approved by Council on April 28,
2010. An application for site plan control has been approved and an agreement
has been registered for the first phase of the development. Two special conditions
have been included in the Site Plan Control approval to reflect Conditions 20
(d) and 20 (e) above.
These site development conditions are reflected in the recommendations of this report since they would require inclusion in the Brownfields Rehabilitation Grant agreement.
Calculating the Rehabilitation Grant
Under the Brownfields Rehabilitation Grant program guide, the applicant is required to submit various technical documents to determine eligibility as well as the costs eligible for the rehabilitation grant. Staff reviewed the submissions and have determined that the total costs eligible for a Brownfields Rehabilitation Grant under the revised 2010 program are $3,568,549.
A breakdown of the eligible costs is shown in Document 3.
The Brownfields Redevelopment Community Improvement Plan specifies that the total eligible costs (Document 3) be capped at 50 per cent of the total costs. Applying this cap results in a final eligible cost for the calculation of the Rehabilitation Grant of $1,784,275.
Based on the formulas contained within the approved CIP the Rehabilitation Grant is $1,784,275. The detailed calculations are shown in Document 4.
Grants, paid in the form of property tax rebates, would be capped at 50 per cent of the municipal share of the increase in property taxes that results from the redevelopment, payable annually for up to 10 years; or, up to the time when the total grant payments equal the total eligible costs, whichever comes first. The City will only pay the annual grant after property taxes have been paid in full each year and all terms and conditions specified in the registered legal agreement between the City and the applicant have been met.
A project of this nature will see development occurring in phases dependent on market conditions. The applicant has indicated that the first phase of the project could commence this year. The whole project could take up to four years to complete. The first phase is to include a large format retail tenant and two retail use buildings comprising about 15,189 square metres of gross floor area in total. The second phase would be comprised of a retail and office component of approximately 8,488 square metres. The final phase would be comprised of an additional 4,849 square metres of retail and office uses.
For the
purposes of estimating the possible future municipal tax increment and the
estimated pay-out period it has been assumed for illustrative purposes that the
first phase would be completed within three years as per the stipulation
regarding payment of the grant. The detailed assumptions and the calculations
are shown in Document 5.
The program period is a maximum of 10 years from the first payment or until all eligible costs have been paid by the annual grant, whichever comes first. It is possible that the pay-out would not occur within 10 years of the first payment if the first phase of the project is all that is built at which time the annual municipal payment would end even if the grant has not been paid in full.
Benefits
to the Community
Economic
Benefits
The overall economic impact of the proposed mixed-use development is estimated at $31 million in direct construction value. During the development of the site, direct and indirect economic benefits to the local economy will be experienced as a result of building demolition, site remediation and the construction period through payroll, purchased material supplies and services and equipment rentals. The economic benefits would span over a period of four years. The project is estimated to create approximately 300 construction jobs, 350 retail jobs and provide office space to accommodate approximately 425 employees.
Over $47 million in new commercial assessment would be added to the property tax assessment roll at full development. Staff estimates that over $134,000 per year in increased municipal property taxes, net of the Brownfields Rehabilitation Grant, can be expected by the end of the first phase of the project.
The project will earn the City nearly $200,000 in present value dollars in building permit fees and other development fees.
The
approval of this rehabilitation grant will assist with the redevelopment of
this brownfield property and ensure that this contaminated site is properly
remediated prior to development. A
Record of Site Condition (RSC) will be required as per the funding agreement.
Brownfield redevelopment is identified as a key strategy for promoting
reinvestment in existing urban areas and for reducing the need to expand into
N/A
N/A
The Ward Councillor is aware of this application and the staff recommendations.
There are no legal/risk management impediments to implementing any of the recommendations in this report.
One of the City’s priorities, as a strategic direction, is planning and growth management. An important objective is to respect the existing urban fabric, neighbourhood form and the limits of existing hard services, so that new growth is integrated seamlessly with established communities (Code F2). The zoning amendment (with a holding provision) approved by Council for this site will ensure that this development meets this objective.
N/A
As per the Brownfields Redevelopment CIP, if this Rehabilitation Grant application is approved, the City would provide the owner with a grant equivalent to 50 per cent of the increase in municipal taxes. In this case, the total maximum grant is $1,784,275. The grant payment would be calculated annually and would be paid per year until the total eligible costs are repaid, or a maximum of 10 years, whichever comes first. At that time the City will begin to collect and retain the full municipal portion of the tax increment.
The City will retain 15 per cent of the municipal tax increment per year to coincide with the grant period until the total eligible costs are repaid. These monies will be deposited into the Municipal Leadership Account. This account would function as a revolving fund to be used to support the Brownfields Redevelopment Strategy. The remaining 35 per cent of the municipal tax increment will be applied to the general City budget. No taxes will be rebated in 2010. As approved components of this project come forward the Revenue Division will review rebated tax calculations.
SUPPORTING
DOCUMENTATION
Document 1 General Location Map
Document 2 Rehabilitation Grant Application Requirements
Document 3 Rehabilitation Grant-Eligible Costs
Document 4 Calculating the Rehabilitation Grant and Development Charge Reduction
Document 5 Estimated
Document 6 Brownfields Rehabilitation Grant Application-Clydesdale Shopping Centres Limited-1357 Baseline Road- ACS2008-ICS-CSS-0004- 3 November 2009
City Clerk and Solicitor Department, Legal Services to prepare the Brownfields Rehabilitation Grant Agreement.
Community Sustainability Department and Finance Department, Revenue Branch to develop a general administrative approach to implement the Brownfields Redevelopment financial incentive program and more specifically for this application.
Community Sustainability Department to monitor the performance of this grant application and prepare a status report on this application as part of an annual Brownfields Redevelopment monitoring report to Council.
Community Sustainability Department to notify the applicant of Council’s decision.
REHABILITATION GRANT APPLICATION
REQUIREMENTS DOCUMENT 2
A Brownfields Rehabilitation Grant program guide was prepared as part of the administration of the Brownfields financial incentives program. This program guide provides the detailed requirements to an applicant in order to file a complete application with the City for consideration of financial assistance under this grant program. The applicant is required to submit various technical documents to determine eligibility and costs eligible for the rehabilitation grant. The following documents are required:
The applicant (registered owner) or agent acting on behalf of the registered owner is required to fully complete the application including all required signatures and complete the sworn declaration.
The costs eligible for a
Brownfields Rehabilitation Grant for
|
Eligible
Costs
|
Actual/Estimated Cost |
1 |
Environmental studies |
$48,100[1] |
2 |
Environmental Remediation (site and building) |
$2,078,847[2] |
3 |
The following Leadership in Energy and Environmental Design (LEED) Program Components: a) base plan review by a certified LEED consultant b) preparing new working drawings to the LEED standard c) submitting and administering the constructed element testing and certification used to determine the LEED designation |
$74,081 |
4 |
Cost of Project Feasibility Study |
$10,000 |
5 |
30 per cent of the estimated Building Permit Fee to be paid |
$137,210 |
6 |
Building Demolition |
$516,671[3] |
7 |
Upgrading on-site infrastructure including water services, sanitary sewers and stormwater management facilities costs |
$1,503,479 |
8 |
50 % cap on eligible costs (line
7) of upgrading on-site infrastructure including water services, sanitary
sewers and stormwater management facilities |
$751,740 |
|
Total Costs Eligible for a
Rehabilitation Grant |
From the above, the total costs eligible for a Brownfields Rehabilitation Grant are $3,568,549.[4]
CALCULATING THE REHABILITATION GRANT DOCUMENT 4
The Ottawa Brownfields CIP specifies that, the total of all grants and development charge reduction shall not exceed 50 per cent of the cost of rehabilitating said lands and buildings.*
1 |
Total eligible Costs-
from Document 3 |
$3,568,549 |
2 |
Total capping at 50 per
cent of line 1 |
$1,784,275 |
3 |
Total Rehabilitation Grant Payable |
$1,784,275 |
* The site is located at
The total Rehabilitation Grant
payable is $1,784,275 (line 3 above).
ESTIMATED
ANNUAL MUNICIPAL GRANT PAYABLE
DOCUMENT 5
Current Value Assessment (2009) on the property at 1357 Baseline is $12,037,250, classed as Commercial (CT). Current property taxes are approximately $441,421[5] broken down as follows:
Table 1
Municipal Property Tax portion |
$242,688 |
Education Property Tax Portion |
$198,733 |
Total Pre-Project Property Taxes
|
$441,421 |
Based on a post-project assessment valuation prepared by Calloway Real Estate Investment Trust, and revised August 2009 by Clydsale Shopping Centres Limited (Property Taxation Department), as submitted as part of the revised application, it is estimated that once the entire project is complete, the property including all buildings could have a post-project assessment value in excess of $60,000,000.
There are many technical assumptions and variables that are used to project possible future commercial property tax assessments and future property tax estimates. These include consideration of building vacancy rates, expense rates, capitalization rates, income/fair market rents, amount of undeveloped/excess land, appropriate tax classes, tax rates and phase-in assessment values. [6] It is important to note that the final assessment value of the property would be established by the Municipal Property Assessment Corporation.
A project of this nature will see development occurring in phases dependent on market conditions. The applicant has indicated that the first phase of the project could commence next year. The whole project could take up to four years to complete. The first phase is to include a large format retail tenant and two retail use buildings comprising about 15, 189 square metres of gross floor area in total. The second phase would be comprised of a retail and office component of approximately 8,488 square metres. The final phase would be comprised of an additional 4,849 square metres of retail and office uses.
For the
purposes of estimating a future municipal tax increment and the estimated
pay-out period it has been assumed for illustrative purposes that the first
phase would be completed within three years as per the stipulation regarding
payment of the grant.
It is important to note that the tax increment is only an estimate and provides guidance on the order of magnitude of the possible payment under the assumption of all buildings being completed, reassessed and taxes levied and paid in this period.
The tax rates and all of the assessment valuation parameters are held constant for illustration purposes. In practice the assessed value would increase reflecting increasing tenant property and land values. As well, there would likely be some increase in the annual municipal levy during the projection period.
The administration of the grant program would require that any grants to be paid be based on actual Municipal Property Assessment Corporation (MPAC) property assessment (including any resolution of appeals) of improved properties. The prevailing tax rate would be applied and only after taxes are paid in full for one year and only when the City is satisfied that all terms and conditions have been met as specified in the legal agreement between the City and the applicant would a tax rebate be issued. This rebate would be capped at 50 per cent of the municipal share of the increase in property taxes over the pre-project municipal property taxes paid.
The program period is a maximum of 10 years from the first payment or until all eligible costs have been paid by the annual grant, whichever comes first.
Estimated Annual Post-Project Municipal Property Taxes- After Phase 1
Tax Class |
Estimated assessment |
Estimated pro-rated Municipal Tax |
Commercial and Shopping Centre |
$29,442,000 |
$558,525 |
Estimated future Municipal Tax Increment = Estimated future municipal tax minus pre-project municipal share of taxes (2009). That is $558,525 (from Table 2) - $242,688 (from Table 1) = $315,837.
Once the future municipal tax increment has been determined based on the 50 per cent grant factor (as set by Council in the CIP) the annual grant could be $157,919. The possible payment schedule is shown in the following table.
In the administration of this grant each row would be calculated every year based on the new assessment, tax rate, taxes paid and actual municipal tax increment to establish the actual grant payment. It is possible that the pay-out would not occur within 10 years of the first payment if the first phase of the project is all that is built at which time the annual municipal payment would end even if the grant has not been paid in full.
Table 3 Estimated Municipal Property Tax Changes if only Phase 1 built
Year |
Existing Taxes (2009) |
New Taxes |
Municipal Tax Increment |
50% Grant |
15% to BMLRF* |
Revenue |
1 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
2 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
3 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
4 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
5 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
6 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
7 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
8 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
9 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
10 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
TOTAL |
$2,426,880 |
$5,585,250 |
$3,158,370 |
$1,579,190 |
$236,880 |
$1,342,310 |
*BMLRF-Brownfields Municipal Leadership Revolving
Fund
New municipal property tax portion (tax increment) for years one through 10 |
|
Rehabilitation Grant value for years one through 10 |
|
Contribution to BMLRF based on tax increment for years one through10 |
$236,880 |
Net new municipal portion of
property taxes for years one through 10 |
$1,342,300 |
|
|
BROWNFIELDS
REHABILITATION GRANT APPLICATION -
CLYDESDALE
SHOPPING CENTRES LIMITED DOCUMENT 6
Report to/Rapport au :
Corporate Services and Economic Development
Committee
Comité des services organisationnels et du développement économique
and Council / et au
Conseil
03
November 2009 / le 03 novembre 2009
Submitted by/Soumis par :
Nancy
Schepers, Deputy City Manager/Directrice municipale adjointe,
Infrastructure Services and Community
Sustainability/Services d’infrastructure et Viabilité des collectivités
Contact
Person/Personne ressource : Johanne Levesque, Director/Directrice, Community and Sustainability
Services/Services de viabilité et des collectivités
(613) 580-2424 x 12257 Johanne.Levesque@Ottawa.ca
Ref N°: ACS2008-ICS-CSS-0004 |
SUBJECT:
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BROWNFIELDS GRANT APPLICATION - CLYDESDALE SHOPPING CENTRES LIMITED - |
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OBJET :
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Demande de subvention pour la remise en valeur des friches
industrielles – CLYDESDALE SHOPPING CENTRES LIMITeD – 1357, chemin
BASELINE |
That Corporate Services and Economic Development Committee recommend
Council:
1.
Approve the
Brownfields Rehabilitation Grant Application submitted by Clydesdale Shopping
Centres Limited, owner of the property at 1357 Baseline Road, for a Brownfields
Rehabilitation Grant not to exceed $3,442,184, payable to Clydesdale Shopping
Centres Limited over a maximum of 10 years, subject to the establishment of,
and in accordance with, the terms and conditions of the Brownfields
Rehabilitation Grant Agreement;
2.
Direct staff
to enter into a Brownfields Rehabilitation Grant Agreement with Clydesdale
Shopping Centres Limited establishing the terms and conditions governing the
payment of the Brownfields Rehabilitation Grant, for, and redevelopment of,
1357 Baseline Road, satisfactory to the Deputy City Manager, Infrastructure
Services and Community Sustainability, the City Solicitor and the City Treasurer;
and
3.
That the
terms and conditions referred to in Recommendation 2 include the retention of
funding until such time as, where a single large format store is located in the
east portion of the site as part of the first phase of development, that at
least two of the six buildings shown on the concept plan, submitted in support
of this Application, are constructed also as part of the first phase along
either Baseline Road or Clyde Avenue frontage and are completed for occupancy
within three years of the commencement of the large format store.
Le Comité des services
organisationnels et du développement économique recommande
que le Conseil :
1.
Donne son aval à la demande de subvention pour la remise en valeur des
friches industrielles présentée par Clydesdale Shopping
Centres Limited, propriétaire du
1357, chemin Baseline, en vue d’une
subvention pour la remise en valeur des friches industrielles d’au plus 3 442 184 $,
payable à Clydesdale Shopping Centres Limited pendant au plus dix (10) ans, sous réserve de l’adoption des
modalités de cette demande de subvention et conformément à celles‑ci;
2.
Confie au personnel la tâche de conclure avec Clydesdale Shopping Centres Limited une entente de subvention pour la remise en valeur des friches
industrielles, dans laquelle
seront stipulées les modalités du versement d’une subvention pour la remise en
valeur des friches industrielles, en vue du réaménagement du 1357,
chemin Baseline, à la satisfaction de
la directrice municipale adjointe, Services d'infrastructure et viabilité des collectivités, du chef du contentieux et de la trésorière
municipale; et
3.
Que les modalités auxquelles fait
référence la recommandation 2 comprennent las retenue du financement jusqu’à ce
qu’un magasin individuel de grand format soit installé dans la partie est du
site dans le cadre de la première étape du réaménagement, qu’au moins deux des
six bâtiments indiqués sur le plan conceptuel présenté à l’appui de la demande,
soient également construits dans le cadre de la première étape, soit le long du
chemin Baseline, soit en bordure de l’avenue Clyde et qu’ils soient prêts aux
fins d’occupation dans les trois ans suivant le début des travaux du magasin de
grand format.
On April 25, 2007 City Council adopted the Brownfields Redevelopment Community Improvement Plan (CIP). Brownfields are abandoned, vacant, or underutilized properties where past actions have resulted in actual or perceived environmental contamination and/or derelict or deteriorated buildings. The Brownfields Redevelopment CIP contains a comprehensive framework of incentive programs including the Rehabilitation Grant Program and the Building Permit Fee Grant Program.
Clydesdale Shopping Centres Limited, has filed an application for a Brownfields Rehabilitation Grant for the clean-up, demolition and redevelopment of 1357 Baseline Road, a 6.22-hectare property that contains a 19,245-square metre, two-storey above grade building (with a basement). The building is the former Laurentian High School built in phases between 1956 and 1997. The property was declared surplus by the Ottawa-Carleton District School Board in 2005. It was acquired by Clyde Baseline Development Inc. (now Clydesdale Shopping Centre Limited) in July 2007.
Phase I and II Environmental Site Assessments were prepared in 2007 by SEACOR Environmental Inc. for the school board in preparation for the sale of the property. SEACOR identified a number of environmental impacts from petroleum-based products under, and in the vicinity of the heating plant (boiler room) located at the east end of the building.
After the property was purchased by Clydesdale Shopping Centres Limited additional subsurface investigations were conducted by Paterson Group Inc. in July and September of 2008. The results confirmed the previous analytical findings and as well delineated the area impacted by petroleum hydrocarbons likely from former underground fuel oil storage tanks located on site.
The soil and groundwater test
results are in excess of the applicable Ministry of the Environment (MOE) site
standards for commercial development.
The recommendations of the
The existing building, according to a “Designated Substance Survey” report prepared by SEACOR Environmental Inc., contains asbestos in a number of construction materials that must be removed prior to demolition. In addition, lead, mercury, silica, and minor quantities of polychlorinated biphenyls (PCBs) and Chloroflourocarbons (CFCs) were also identified in various parts of the building.
The site qualifies as an eligible "brownfield" under the City's Brownfields CIP.
The purpose of this report is to
bring the Rehabilitation Grant application for
The Rehabilitation Grant Program is a tax-increment based grant funded through the tax increase that results from redevelopment of the property.
Grants will equal 50 per cent of the City portion of the increase in property taxes that results from the redevelopment, payable annually for up to 10 years, or up to the time when the total grant payments equal the total eligible costs, whichever comes first. The City will only pay the annual grant after property taxes have been paid in full each year.
The Building Permit Fee Grant Program provides an additional incentive in the form of a grant equivalent to 30 per cent of building permit fees paid on a project that has been approved for a Rehabilitation Grant. This grant is paid as a component of the Rehabilitation Grant.
The Clydesdale Shopping Centres Grant Application
The required documents that are to be submitted to the City as part of a Rehabilitation Grant application are described in Document 2. Staff have reviewed the submissions and deemed the application to be complete. The original grant application was filed in November of 2008, but was amended in September of 2009 to reflect a revised site development proposal.
Proposed Remediation
All contaminated soil and bedrock will be excavated from the site for off-site disposal at a Ministry of the Environment licensed landfill facility. Paterson Group Inc. estimates that the amount of contaminated soil and bedrock to be removed from the site is 4,850 tonnes. Approximately 200,000 litres of hydrocarbon-impacted groundwater will be pumped during the excavation program. An MOE licensed pumping contractor will pump any groundwater encountered for offsite disposal.
All asbestos containing materials and, all other hazardous materials identified in the designated substance survey, will be removed and managed as part of the building decommissioning and demolition.
Proposed Redevelopment Scheme
Council approved an amendment to the zoning by-law with a holding provision on October 14, 2009 (Ref N°: ACS2009-ICS-PGM-0131) to permit development of the site as a predominately retail centre with some upper floor space for those buildings proposed to front onto Baseline Road and Clyde Avenue with future potential to accommodate residential and/or more intense office development. The proposed development is focused on providing a stand-alone large format retail store located in the northeast quadrant of the site. The remainder of the site would be framed with buildings with upper floors accommodating approximately 7,620 square metres of office space. The total retail area proposed for the site is approximately 20,400 square metres with the total density proposed reflecting a 0.5 Floor Space Index (FSI).
Part of the requirements to be satisfied for the lifting of the holding provision include a requirement to construct, along with the large format store, two street edge buildings within the first phase. This condition has been tied to the release of any approved brownfields grant funding. The specific requirements from the zoning report (Document 2, 20d as amended by Council and 20e) are:
“20 d) Where a single large format
store is located in the east portion of the site as part of the first phase of
development, that at least two of the six buildings shown on the concept plan
(included as Document 4) shall be constructed also as part of the first phase
along either the Baseline Road or Clyde Avenue frontage. And, that these
buildings be completed for occupancy within three
years of the commencement of construction of the large format store.
20 e)
The City will retain brownfields grant funding until the street edge buildings
required by 20 (d) have been completed.”
These site development conditions are reflected in the recommendations of this report since they would require inclusion in the Brownfields Rehabilitation Grant agreement.
Under the Brownfields Rehabilitation Grant program guide the applicant is required to submit various technical documents to determine eligibility and costs eligible for the rehabilitation grant. Staff reviewed the submissions and have determined that the total costs eligible for a Brownfields Rehabilitation Grant are $6,884,368.
A breakdown of the eligible costs is shown in Document 3.
Calculating the Rehabilitation Grant
Because the Ottawa Brownfields CIP specifies that the total of all grants and development charge reduction shall not exceed 50 per cent of the cost of rehabilitating said lands and buildings, the cap on eligible costs is $3,442,184.
Based on the formulas contained within the approved CIP the Rehabilitation Grant is $3,442,184. The detailed calculations are shown in Document 4.
A project of this nature will see development occurring in phases dependent on market conditions. The applicant has indicated that the first phase of the project could commence next year. The whole project could take up to four years to complete. The first phase is to include a large format retail tenant and two retail use buildings comprising about 15,189 square metres of gross floor area in total. The second phase would be comprised of a retail and office component of approximately 8,488 square metres. The final phase would be comprised of an additional 4,849 square metres of retail and office uses.
For the
purposes of estimating the possible future municipal tax increment and the
estimated pay-out period it has been assumed for illustrative purposes that the
first phase would be completed within three years as per the stipulation
regarding payment of the grant. The detailed assumptions and the calculations
are shown in Document 5.
The program period is a maximum of 10 years from the first payment or until all eligible costs have been paid by the annual grant, whichever comes first. It is possible that the pay-out would not occur within 10 years of the first payment if the first phase of the project is all that is built at which time the annual municipal payment would end even if the grant has not been paid in full.
Benefits
to the Community
Economic
Benefits
The overall economic impact of the proposed mixed-use development is estimated at $31 million in direct construction value. During the development of the site, direct and indirect economic benefits to the local economy will be experienced as a result of building demolition, site remediation and the construction period through payroll, purchased material supplies and services and equipment rentals. The economic benefits would span over a period of four years. The project is estimated to create approximately 300 construction jobs, 350 retail jobs and provide office space to accommodate approximately 425 employees.
Over $47 million in new commercial assessment would be added to the property tax assessment roll at full development. Staff estimates that over $134,000 per year in increased municipal property taxes, net of the Brownfields Rehabilitation Grant, can be expected by the end of the first phase of the project.
The project will earn the City nearly $200,000 in present value dollars in building permit fees and other development fees.
The
approval of this rehabilitation grant will assist with the redevelopment of
this brownfield property and ensure that this contaminated site is properly
remediated prior to development. A
Record of Site Condition (RSC) will be required as per the funding agreement.
Brownfield redevelopment is identified as a key strategy for promoting
reinvestment in existing urban areas and for reducing the need to expand into
N/A
N/A
The Ward Councillor is aware of this application and the staff recommendations.
There are no legal/risk management impediments to implementing any of the recommendations in this report.
One of the City’s priorities, as a strategic direction, is planning and growth management. An important objective is to respect the existing urban fabric, neighbourhood form and the limits of existing hard services, so that new growth is integrated seamlessly with established communities (Code F2). The zoning amendment (with a holding provision) approved by Council for this site will ensure that this development meets this objective.
N/A
As per the Brownfields Redevelopment CIP, if this Rehabilitation Grant application is approved, the City would provide the owner with a grant equivalent to 50 per cent of the increase in municipal taxes. In this case, the total maximum grant is $3,442,184. The grant payment would be calculated annually and would be paid per year until the total eligible costs are repaid, or a maximum of 10 years, whichever comes first. At that time the City will begin to collect and retain the full municipal portion of the tax increment.
The City will retain 15 per cent of the municipal tax increment per year to coincide with the grant period until the total eligible costs are repaid. These monies will be deposited into the Municipal Leadership Account. This account would function as a revolving fund (capital account) to be used to support the Brownfields Redevelopment Strategy. The remaining 35 per cent of the municipal tax increment will be applied to the general City budget. No taxes will be rebated in 2010. As approved components of this project come forward the Revenue Division will review rebated tax calculations.
SUPPORTING DOCUMENTATION
Document 1 General
Location Map
Document 2 Rehabilitation
Grant Application Requirements
Document 3 Rehabilitation
Grant-Eligible Costs
Document 4 Calculating
the Rehabilitation Grant and Development Charge Reduction
Document 5 Estimated
Future City Property Tax Increment and Annual Municipal Grant Payable
City Clerk and Solicitor Department, Legal Services to prepare the Brownfields Rehabilitation Grant Agreement.
Community Sustainability Department and Finance Department, Revenue Branch to develop a general administrative approach to implement the Brownfields Redevelopment financial incentive program and more specifically for this application.
Community Sustainability Department to monitor the performance of this grant application and prepare a status report on this application as part of an annual Brownfields Redevelopment monitoring report to Council.
Community Sustainability Department to notify the applicant of Council’s decision.
REHABILITATION GRANT APPLICATION
REQUIREMENTS DOCUMENT 2
A Brownfields Rehabilitation Grant program guide was prepared as part of the administration of the Brownfields financial incentives program. This program guide provides the detailed requirements to an applicant in order to file a complete application with the City for consideration of financial assistance under this grant program. The applicant is required to submit various technical documents to determine eligibility and costs eligible for the rehabilitation grant. The following documents are required:
The applicant (registered owner) or agent acting on behalf of the registered owner is required to fully complete the application including all required signatures and complete the sworn declaration.
The costs eligible for a
Brownfields Rehabilitation Grant for
|
Eligible
Costs
|
Actual/Estimated Cost |
1 |
Environmental studies |
$48,100[7] |
2 |
Environmental Remediation |
$700,000 |
3 |
Placing Clean fill and grading |
$252,000 |
4 |
The following Leadership in Energy and Environmental Design (LEED) Program Components: d) base plan review by a certified LEED consultant e) preparing new working drawings to the LEED standard f) submitting and administering the constructed element testing and certification used to determine the LEED designation |
$74,081 |
5 |
Cost of Project Feasibility Study |
$10,000 |
6 |
30 per cent of the estimated Building Permit Fee to be paid |
$137,210 |
7 |
Building Demolition |
$1,820,498 |
8 |
Upgrading on-site infrastructure including water services, sanitary sewers and stormwater management facilities |
$1,503,479 |
9 |
Constructing/upgrading eligible off-site infrastructure including roads, water services, sanitary sewers, stormwater management facilities, electrical and gas utilities, where this is required to permit rehabilitation of the property |
$2,339,000 |
|
Total Costs Eligible for a
Rehabilitation Grant |
$6,884,368 |
From the above, the total costs eligible for a Brownfields Rehabilitation Grant are $6,884,368.[8]
CALCULATING THE REHABILITATION GRANT DOCUMENT 4
The Ottawa Brownfields CIP specifies that, the total of all grants and development charge reduction shall not exceed 50 per cent of the cost of rehabilitating said lands and buildings.*
1 |
Total eligible Costs-
from Document 3 |
$6,884,368 |
2 |
Total capping at 50 per
cent of line 1 |
$3,442,184 |
3 |
Total Rehabilitation Grant Payable |
$3,442,184 |
* The site is located at
The total Rehabilitation Grant
payable is $3,442,184 (line 3 above).
ESTIMATED
ANNUAL MUNICIPAL GRANT PAYABLE
DOCUMENT 5
Current Value Assessment (2009) on the property at 1357 Baseline is $12,037,250, classed as Commercial (CT). Current property taxes are approximately $441,421[9] broken down as follows:
Table 1
Municipal Property Tax portion |
$242,688 |
Education Property Tax Portion |
$198,733 |
Total Pre-Project Property Taxes
|
$441,421 |
Based on a post-project assessment valuation prepared by Calloway Real Estate Investment Trust, and revised August 2009 by Clydsale Shopping Centres Limited (Property Taxation Department), as submitted as part of the revised application, it is estimated that once the entire project is complete, the property including all buildings could have a post-project assessment value in excess of $60,000,000.
There are many technical assumptions and variables that are used to project possible future commercial property tax assessments and future property tax estimates. These include consideration of building vacancy rates, expense rates, capitalization rates, income/fair market rents, amount of undeveloped/excess land, appropriate tax classes, tax rates and phase-in assessment values. [10] It is important to note that the final assessment value of the property would be established by the Municipal Property Assessment Corporation.
A project of this nature will see development occurring in phases dependent on market conditions. The applicant has indicated that the first phase of the project could commence next year. The whole project could take up to four years to complete. The first phase is to include a large format retail tenant and two retail use buildings comprising about 15, 189 square metres of gross floor area in total. The second phase would be comprised of a retail and office component of approximately 8,488 square metres. The final phase would be comprised of an additional 4,849 square metres of retail and office uses.
For the
purposes of estimating a future municipal tax increment and the estimated
pay-out period it has been assumed for illustrative purposes that the first
phase would be completed within three years as per the stipulation regarding
payment of the grant.
It is important to note that the tax increment is only an estimate and provides guidance on the order of magnitude of the possible payment under the assumption of all buildings being completed, reassessed and taxes levied and paid in this period.
The tax rates and all of the assessment valuation parameters are held constant for illustration purposes. In practice the assessed value would increase reflecting increasing tenant property and land values. As well, there would likely be some increase in the annual municipal levy during the projection period.
The administration of the grant program would require that any grants to be paid be based on actual Municipal Property Assessment Corporation (MPAC) property assessment (including any resolution of appeals) of improved properties. The prevailing tax rate would be applied and only after taxes are paid in full for one year and only when the City is satisfied that all terms and conditions have been met as specified in the legal agreement between the City and the applicant would a tax rebate be issued. This rebate would be capped at 50 per cent of the municipal share of the increase in property taxes over the pre-project municipal property taxes paid.
The program period is a maximum of 10 years from the first payment or until all eligible costs have been paid by the annual grant, whichever comes first.
Estimated Annual Post-Project Municipal Property Taxes- After Phase 1
Tax Class |
Estimated assessment |
Estimated pro-rated Municipal Tax |
Commercial and Shopping Centre |
$29,442,000 |
$558,525 |
Estimated future Municipal Tax Increment = Estimated future municipal tax minus pre-project municipal share of taxes (2009). That is $558,525 (from Table 2) - $242,688 (from Table 1) = $315,837.
Once the future municipal tax increment has been determined based on the 50 per cent grant factor (as set by Council in the CIP) the annual grant could be $157,919. The possible payment schedule is shown in the following table.
In the administration of this grant each row would be calculated every year based on the new assessment, tax rate, taxes paid and actual municipal tax increment to establish the actual grant payment. It is possible that the pay-out would not occur within 10 years of the first payment if the first phase of the project is all that is built at which time the annual municipal payment would end even if the grant has not been paid in full.
Table 3 Estimated Municipal Property Tax Changes if only Phase 1 built
Year |
Existing Taxes (2009) |
New Taxes |
Municipal Tax Increment |
50% Grant |
15% to BMLRF* |
Revenue |
1 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
2 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
3 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
4 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
5 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
6 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
7 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
8 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
9 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
10 |
$242,688 |
$558,525 |
$315,837 |
$157,919 |
$23,688 |
$134,231 |
TOTAL |
$2,426,880 |
$5,585,250 |
$3,158,370 |
$1,579,190 |
$236,880 |
$1,342,310 |
*BMLRF-Brownfields Municipal Leadership Revolving
Fund
New municipal property tax portion (tax increment) for years one through 10 |
|
Rehabilitation Grant value for years one through 10 |
|
Contribution to BMLRF based on tax increment for years one through10 |
$236,880 |
Net new municipal portion of
property taxes for years one through 10 |
$1,342,300 |
|
|
[1] Actual costs incurred to date.
[2] Actual costs incurred to date which includes site remediation (excavation, removal and off-site disposal of impacted soil, bedrock, and groundwater), designated substances material removal from building and off-site materials disposal and site fill and grading after building demolition and site remediation.
[3] Actual costs incurred to date.
[4] The maximum that the City will pay will be based on the lesser of actual paid amounts or estimated costs. The costs could be audited by the City.
[5] The property was sold to the applicant in July of 2007 for $21,260,000.
[6] The property tax consultant has projected the assessment value using the income approach. The vacancy rate, the expense rate, the capitalization rate, and market rents generally fall within the range used by the Municipal Property Assessment Corporation (MPAC) for similar retail and office tenants.
[7] Actual costs incurred to date.
[8] The maximum that the City will pay will be based on the lesser of actual paid amounts or estimated costs. The costs could be audited by the City.
[9] The property was sold to the applicant in July of 2007 for $21,260,000.
[10] The property tax consultant has projected the assessment value using the income approach. The vacancy rate, the expense rate, the capitalization rate, and market rents generally fall within the range used by the Municipal Property Assessment Corporation (MPAC) for similar retail and office tenants.