5.0 Community Improvement Plan Incentive Programs

5.1 Introduction

The incentive grants contained in this CIP are a framework of programs that will assist in achieving the goals outlined in Section 3.0. The incentive programs can be used individually or together by an applicant, but the total of all grants provided in respect of the subject lands and buildings of an applicant under the programs contained in this CIP, combined with any Brownfields CIP programs, shall not exceed 70% of the eligible costs of on / off site development of said lands and buildings, excluding all taxes, to a total maximum combined grant per property owner / property of $1,000,000.00, whichever is lower.

The maximum grant amount will be increased to 85% of the eligible costs of on / off site development of said lands and buildings, excluding all taxes, for residential development of 3 or more new dwelling units provided that affordable housing criteria as set out in the City of Ottawa Official Plan are achieved, to a total maximum combined grant per property owner / property of $1,000,000.00, whichever is lower.

To be considered for grant programs, a project must include one or more of:

      1. An addition of building space to an existing building;
      2. Façade improvement facing a public road right-of-way;
      3. New building construction; and
      4. Site works including hard / soft landscaping and signage.

Stand-alone internal building upgrade and maintenance costs in existing building space do not qualify for the incentive grant programs in this CIP.

To be eligible for payment of a grant, the amount of work undertaken on the property and/or buildings shall result in a minimum increase of $10,000.00 in the assessed value of the property as determined through post-construction reassessment by the Municipal Property Assessment Corporation (MPAC). To be eligible to receive payment of an increased grant amount as a result of the provision of three or more affordable housing units, affordability will be determined in accordance with the City of Ottawa Official Plan and shall be based on the actual sale price or rental cost of the units.

The incentive programs are available to all properties within the Community Improvement Plan Project area subject to fulfilment of grant program requirements. Any property owner (or assignee) in the St. Joseph Boulevard CIP Project Area is eligible to apply for the incentive programs. If all or part of a property is sold within a grant eligibility period, grant payments will continue to be made to the Owner that signed the original grant agreement. The City may however, at its discretion, transfer all or part of a grant amount to a new property owner subject to the new owner entering into an agreement (where applicable) with the City that fulfills the requirements of the original agreement, plus any new requirements. Grants awarded under any incentive program for a particular property are not transferable to another property. New agreements are subject to the approval of the General Manager, Planning and Growth Management and/or Council.

Where the CIP Project Area Boundary does not follow a property boundary (i.e. only a portion of the property abutting the public road is included), only that portion of the property and building(s) within the CIP boundary may qualify for incentive programs.

Coordinated development proposals that include abutting properties under the same or separate ownership are permitted to apply only for one of each type of grant in this CIP (i.e. more than one application for the same type of grant on abutting properties that comprise a coordinated development is not permitted).

Applications for grants and that exceed a total grant amount of $250,000 are subject to approval by City Council. Applications for grants equal to or less than a total amount of $250,000 are subject to approval by the General Manager, Planning and Growth Management.

Program duration is specified in each program description. All programs are offered subject to Council approval of operating funds where applicable. The commencement of timing for program duration for each incentive grant starts on the date the application is approved by either Council or by the Deputy City Manager, as required based on total program funding amount.

The financial incentive programs in this CIP apply to the private sector and are designed to encourage private sector revitalisation of properties within the St. Joseph Boulevard CIP Project Area. This CIP contains the following incentive programs:

    1. Project Feasibility Study Grant Program
    2. Planning Fee Grant Program
    3. Development Incentive Grant Program
    4. Building Permit Fee Grant Program

A summary of the incentive programs is shown in Figure 1. The purpose, type, duration, eligibility criteria and application requirements for each of the financial incentive programs is described in detail in the sections following below.

Figure 1 - Incentive Programs Summary

Program

Description Summary

Project Feasibility Study Grant Program

Grant equivalent to 25% of the cost of an eligible project feasibility study. Includes studies, tests or designs required by the City and in support of an application under the Planning Act and/or for building permit approval (i.e. architectural, engineering, site design, transportation). Would apply for example to small projects such as facade improvement up to larger projects such as demolition and intensification through redevelopment. Total combined maximum grant amount is $2,500.Grant increased to up to 50% / $5,000 max. if three or more new affordable housing units are constructed.

Planning Fee Grant Program

Grant equivalent to 25% of the City fees for initial applications made under the Planning Act (after applicable multi-application reductions) including for example Official Plan amendments, Zoning By-law amendments, Site Plan approval, Plans of Condominium and Committee of Adjustment applications. Final approval by the City of the planning application must be obtained in order for a grant under this program to be paid. Total combined maximum grant amount is $5,000.Grant increased to 50% / $10,000 max. if three or more new affordable housing units are constructed.

Development Incentive Grant Program

Grant paid once annually following post-construction property reassessment and tax payment, up to a maximum 10 year period, equal to 70% of the increase in the municipal portion of property taxes resulting from constructed eligible projects, up to a combined maximum grant total of 70% of the eligible on/off site construction costs of the project or $1,000,000.00 maximum, whichever is lower. Grant annual payment increased to 85% and combined maximum grant total percentage increased to 85% / $1,000,000.00 max, if three or more new affordable housing units are constructed.

Building Permit Fee Grant Program

Grant equivalent to 30% of building permit fee - included as an “eligible cost” within a Development Incentive Grant (maximum 21% paid).Grant maximum percentage increased to 40% if three or more new affordable housing units are constructed (maximum 34% paid).

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5.2 General Program Requirements

The general and program specific requirements contained in this CIP are not necessarily exhaustive and the City reserves the right to include other requirements and conditions as deemed necessary on a property specific basis. All of the financial incentive programs contained in this CIP are subject to the following general requirements as well as the individual requirements specified under each program.

    1. The City reserves the right to audit the cost of project feasibility studies and/or works that have been approved under any of the financial incentive programs, at the expense of the applicant;
    2. 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;
    3. If an applicant is in default of any of the general or program specific requirements, or any other requirements of the City, the City may delay, reduce or cancel the approved grant;
    4. The City may discontinue any of the programs at any time but applicants with approved grants will continue to receive said grant subject to meeting the general and program specific requirements;
    5. All proposed works approved under the incentive programs and associated improvements to buildings and/or land shall conform to all relevant codes, policies, procedures, standards and guidelines, including applicable municipal by-laws, Official Plan policies and zoning requirements and approvals;
    6. The improvements made to buildings and/or land shall be made pursuant to a Building Permit where required, and/or other required permits, and be constructed in accordance with the Ontario Building Code where applicable;
    7. City staff, officials, and/or agents of the City may inspect any property that is the subject of an application for any of the financial incentive programs offered by the City;
    8. Outstanding work orders, and/or orders or requests to comply, and/or other charges from the City (including tax arrears) must be satisfactorily addressed prior to any grant payment being issued at any time;
    9. If post-construction assessment is appealed by any party for a property and/or buildings subject of an approved grant application and the post-appeal assessment is reduced, the City will recalculate payments made to the Applicant that were based on the higher assessment and corresponding municipal tax increment and any overpayment amount shall be repaid to the City by the Owner.
    10. The total of all grants provided in respect of the particular lands and buildings of an applicant under the programs contained in this CIP, combined with any Brownfields CIP programs, shall not exceed 70% of the eligible costs of on / off site development of said lands and buildings, excluding all taxes, to a total maximum combined grant per property owner / property of $1,000,000.00, whichever is lower.
    11. The maximum combined grant amount will be increased to 85% of the eligible costs of on / off site development of said lands and buildings, excluding all taxes, for residential development of three or more new dwelling units provided that affordable housing criteria as set out in the City of Ottawa Official Plan are achieved, to a total maximum combined grant per property owner / property of $1,000,000.00, whichever is lower.
    12. To be considered for grant programs, a project must include one or more of:
      1. An addition of building space to an existing building;
      2. Façade improvement facing a public road right-of-way;
      3. New building construction; and
      4. Site works including hard / soft landscaping and signage.
    13. Stand-alone internal building upgrade and maintenance costs in existing building space do not qualify for the incentive grant programs in this CIP.
    14. To be eligible to receive a grant, the amount of eligible work undertaken on the property and/or buildings shall result in a minimum increase of $10,000 in the assessed value of the property as determined through post-construction reassessment by the Municipal Property Assessment Corporation (MPAC).
    15. To be eligible to receive a grant, the combined total grant payment per grant type must be a minimum of $1,000.00. Grant applications that, based on review, are projected to result in a combined total grant payment of less than $1,000.00 will not be processed.
    16. To be eligible to receive payment of an increased grant amount as a result of the provision of three or more new affordable housing units, affordability will be determined in accordance with the City of Ottawa Official Plan and shall be based on the actual sale price or rental cost of the units as may be applicable.
    17. Generally, the City will provide grant payments under this CIP only after applicable permits have been issued, construction is complete and has received final inspection approval by the City, the property has been reassessed by MPAC demonstrating that the minimum required increase in assessment has been achieved and, following reassessment, the property owner has paid the first year property taxes in full.
    18. Except as noted for the Project Feasibility Study Grant Program, grant payment amounts will be calculated based on the actual costs incurred.

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5.3 Project Feasibility Study Grant Program

5.3.1 Purpose

The purpose of the Project Feasibility Study Grant Program is to encourage and facilitate development by partially offsetting costs associated with preparing studies that are typically needed to determine the feasibility of development. Studies under this program will assist in demonstrating how proposed development will, for example, improve site and built form aesthetics, provide for additional jobs and/or housing and help to support the economic viability of the community.

5.3.2 Description

The Project Feasibility Study Grant Program provides a one-time grant per study type per property per owner (or assignee) of up to 25% of the cost of one or more eligible feasibility studies to a maximum combined grant of $2,500. The maximum grant amount will be increased to 50% of the cost of eligible feasibility studies to a maximum combined grant of $5,000 for residential development of three or more new dwelling units if affordable housing criteria as set out in the City of Ottawa Official Plan are achieved. The grant will only be paid if the increase in assessed value of the property following development is a minimum of $10,000.

Eligible feasibility studies include but are not limited to:

    1. transportation analyses
    2. site servicing analysis
    3. geotechnical analysis
    4. market analyses
    5. planning rationale
    6. conceptual building elevation / façade improvement plans
    7. site design concept plans; and
    8. any other feasibility study as approved by the City at the time of grant application

Phase one environmental site assessments are not eligible under this program.

All eligible studies shall be prepared by qualified professionals to the satisfaction of the City and, where appropriate, in consultation with relevant public agencies and affected parties. Applications will be processed and approved on a first come, first served basis, subject to availability of funding as approved by Council. Review and evaluation of an application and supporting materials against program requirements will be done by City staff and a decision on the grant application will be made by City staff, subject to delegation of this approval authority from Council.

Applicants must submit to the City for review and acceptance the final completed study along with the original invoice, indicating that the study consultants have been paid in full. The grant will be paid on the lesser of the initial cost estimate provided by the consultant conducting the study and the actual cost of the study. The grant may be reduced or cancelled if the study is not completed, not completed as approved, or if the consultant(s) that conducted the study are not paid. The applicant will agree to provide the City with permission to provide the study to subsequent owners and interested parties, should the applicant decide not to proceed with construction of the project.

The City will provide a grant for eligible studies after a building permit has been issued, building construction is complete and inspected, the property has been reassessed by MPAC demonstrating that the minimum required increase in assessment has been achieved and the property owner has paid the property taxes in full for the first year following reassessment. Alternatively, the City may elect to pay the Project Feasibility Study Grant as a component of a grant for the same property approved under the Development Incentive Grant Program.

The Project Feasibility Study Grant Program will commence on or after the date that this Plan comes into effect and will be offered for an initial period of five years, with an option to extend the program for up to another five years, subject to the availability of funding as approved by City Council.

5.3.3 Additional Requirements

Applicants are eligible to apply for funding under this program, subject to meeting the general program requirements, the following program requirements, and subject to the availability of funding as approved by Council:

    1. A grant application must be submitted to and be deemed complete by the City prior to a consultant / company being retained in writing to prepare any feasibility study to which the grant will apply;
    2. If the applicant is not the owner of the property, the applicant must provide written consent from the owner of the property to make the application and conduct the study;
    3. Applications shall include:
      1. a detailed work plan for each study;
      2. a cost estimate for each study; and
      3. a description of the planned project, including projected construction cost and any anticipated planning applications;
    4. All completed feasibility studies must comply with the description of the studies as provided in the grant application form;
    5. One electronic and one hard copy of all feasibility studies under this program shall be submitted to the City for the City’s review and retention.

5.3.4 Administration

Guidelines for the administration of this program are attached in Appendix “D”. Appendix “D” does not form part of this Plan. The Guidelines for administration of this program may be changed from time to time, as required, without amendment to this Plan.

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5.4 Planning Fee Grant Program

5.4.1 Purpose

The purpose of the Planning Fee Grant Program is to provide an incentive to facilitate development that improves site and built form aesthetics, provides for additional jobs and/or housing and supports the economic viability of the area.

5.4.2 Description

The Planning Fee Grant Program will provide a one-time grant to property owners (or assignee) equivalent to 25% of eligible City of Ottawa planning fees to a maximum combined grant for all applications of $5,000, calculated after applicable multiple application reductions. The maximum grant amount will be increased to 50% of the cost of eligible planning fees to a maximum combined grant of $10,000 for residential development of three or more new dwelling units provided that affordable housing criteria as set out in the City of Ottawa Official Plan are achieved. This grant will only be paid if development results in a minimum increase in assessed value of the property of $10,000. If a planning application is withdrawn, the City for that particular application will pay no grant or partial grant.

This Program applies only to initial planning applications meaning that amendments or extensions to planning documents, plans, policies and regulations approved through applications under this grant program do not qualify for additional grants. Applications for grant assistance for any individual type of planning application can be made at any time however only one application type per property per owner is permitted. Final approval by the City of the planning application must be obtained in order for a grant under this program to be paid. Exclusions from the program include but are not limited to registration costs, the Engineering Design Review Fee, Appraisal Fee for parkland dedication and the Conservation Authority Fee.

Applications will be processed and approved on a first come, first served basis, subject to availability of funding as approved by Council. City staff will undertake review and evaluation of an application and supporting materials against program requirements. The City will provide a grant for eligible planning application fees once a building permit has been issued, building construction is complete and inspected, the property has been reassessed by MPAC demonstrating that the minimum required increase in assessment has been achieved and the property owner has paid the property taxes in full for the first year following reassessment. Alternatively, the City may elect to pay the Planning Fee Grant as a component of a grant for the same property approved under the Development Incentive Grant Program.

The Planning Fee Grant Program will commence on or after the date that this Plan comes into effect and will be offered for an initial period of five years, with an option to extend the program for up to another five years, subject to the availability of funding as approved by City Council.

5.4.3 Additional Requirements

Applicants are eligible to apply for funding under this program, subject to meeting the general program requirements, the following program requirements, and subject to the availability of funding as approved by Council:

    1. A pre-consultation meeting for the proposed development is required to determine the type of planning applications necessary and that are supportable by planning staff. This is followed by submission of a grant application listing eligible planning applications and associated fees. The grant application must be submitted to the City prior to submission of any planning application to which the grant will apply;
    2. If the applicant is not the owner of the property, the applicant must provide written consent from the owner of the property to make the application;
    3. Eligible costs under the Planning Fee Grant Program applies to the fees for any of the following types of planning approvals:
      1. Official Plan amendment;
      2. Zoning By-law amendment;
      3. Lifting of Holding;
      4. Minor Variance;
      5. Site Plan Control;
      6. Plan of Subdivision and Condominium;
      7. Lifting of Part Lot Control; and
      8. Consent to Sever;
    4. Applications will include:
      1. a detailed list of eligible planning approvals and associated fees;
      2. a description of the planned project;
      3. a breakdown of projected residential unit market selling price if affordable housing is proposed.
    5. The fees associated with planning applications that are not supported by Planning staff are not eligible costs under the Planning Grant Fee Program.

The fees associated with planning applications that are not supported by Planning staff are not eligible costs under the Planning Fee Grant Program.

5.4.4 Administration

Guidelines for the administration of this program are attached in Appendix “E”. Appendix “E” does not form part of this Plan. The Guidelines for administration of this program may be changed from time to time, as required, without amendment to this Plan.

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5.5 Development Incentive Grant Program

5.5.1 Purpose

The purpose of the Development Incentive Grant Program is to improve site and built form aesthetics, provide for additional jobs and/or housing and to support the economic viability of the area by providing grants to partially offset site and building development costs.

5.5.2 Description

The Development Incentive Grant Program will provide a financial incentive in the form of an annual grant to property owners (or assignee) for up to 10 years to help offset the cost of construction. This grant will only be paid when development results in a minimum increase in assessed value of the property of $10,000. The first payment of the annual grant available under the Development Incentive Grant Program will be made following final building inspection, reassessment of the property and after the property owner has paid the property taxes in full for the year in which the grant is to be provided. The total amount of the grant provided under the Development Incentive Grant Program including the total of all other grants as set out in Section 5.1 shall not exceed 70% of the total of eligible development costs (85% for residential development of three or more new dwelling units provided that affordable housing criteria as set out in the City of Ottawa Official Plan are achieved) excluding all taxes, or $1,000,000.00 whichever is lower.

Eligible costs for the Development Incentive Grant Program include the following:

    1. Demolishing buildings;
    2. Constructing / upgrading on-site infrastructure including water services, sanitary sewers, burial of hydro service and stormwater management facilities;
    3. Constructing / upgrading off-site infrastructure including roads, water services, sanitary sewers, stormwater management facilities, electrical and gas utilities,
    4. Constructing / upgrading on-site features including hard and soft landscaping, parking areas, walkways, decorative lighting and signage;
    5. Constructing / upgrading off-site features including walkways, pedestrian amenities, hard and soft landscaping;
    6. Constructing new building(s), additions to buildings, upgrading building facade in front or external side yards;
    7. Building permit fees for any of the preceding works to a maximum amount as set out in Section 5.6, “Building Permit Fee Grant Program”; and
    8. The following Leadership in Energy and Environmental Design (LEED) Program Components:
      1. Base plan review by a certified LEED consultant;
      2. Preparing new working drawings to the LEED standard;
      3. Submitting and administering the constructed element testing and certification used to determine the LEED designation;

The annual grant available under the Development Incentive Grant Program is based on the municipal tax increment amount. The applicant will initially pay for the entire cost of development. After the City receives payment of the incremental property taxes that result from the project, the City will reimburse the applicant in the form of an annual grant equivalent to 70% of the increase in municipal taxes (85% if new affordable housing is constructed) for a period of up to ten years, or up to the time when total grant payments equal the lesser of a maximum of 70% of total eligible costs excluding all taxes (85% if new affordable housing is constructed) and $1,000,000.00, whichever comes first.

Applications will be processed and approved on a first come, first served basis, subject to availability of funding as approved by Council. City staff will undertake review and evaluation of an application and supporting materials against program requirements. Applications for funding under this program that exceed a total grant amount of $250,000.00 are subject to approval by City Council. Applications for funding under this program that result in a total grant amount equal to or less than $250,000.00 are subject to approval by the General Manager, Planning and Growth Management. As a condition of approval of an application for a Development Incentive Grant, the applicant must enter into an agreement with the City. The Agreement will be registered against the land to which it applies and will specify the terms, duration and default provisions of the grant.

The assessment and municipal property taxes (“base rate”) will be determined before commencement of the project. The increase in municipal property taxes (or “municipal tax increment”) is calculated by subtracting the municipal property taxes before reassessment from municipal property taxes after reassessment as determined by the Municipal Property Assessment Corporation (MPAC) following project completion. The amount of the grant payment will be recalculated annually based on the municipal property taxes levied and the resultant municipal tax increment paid by the owner for that year.

The Development Incentive Grant Program will commence on or after the date that this Plan comes into effect and will be offered for an initial period of five years, with an option to extend the program for up to another five years, subject to the availability of funding as approved by City Council.

5.5.3 Additional Requirements

Applicants are eligible to apply for funding under this program, subject to meeting the general program requirements, the following program requirements and subject to the availability of funding as approved by City Council:

    1. A grant application must be submitted to and be deemed complete by the City prior to the start of any site development works that require a building permit;
    2. Such application shall include reports, plans, estimated project costs including but not limited to building permit fees, an estimate of increase in assessment resulting from the proposed development prepared by a qualified person, contracts and other details as may be required to satisfy the City with respect to all eligible costs and conformity of the project with the CIP;
    3. If the development includes site environmental remediation, a separate grant application may be submitted by the Owner under the City’s Brownfield’s Community Improvement Plan;
    4. The cost of any site development works undertaken in advance of grant application approval by Council and / or the General Manager, Planning and Growth Management as required, shall not be included as an eligible cost under this grant program;
    5. As a condition of the grant application, the City may require the applicant to submit a Business Plan, with said Plan being to the City’s satisfaction;
    6. The property shall be developed such that the amount of work undertaken is sufficient to at a minimum result in an increase in the assessed value of the property of at least $10,000;
    7. The total value of the grant provided under this program shall not exceed 70% (85% if new affordable housing is constructed) of the total eligible costs excluding all taxes or, $1,000,000 whichever is lower. Eligible costs for the Development Incentive Grant Program include the following:
      1. Demolishing buildings;
      2. Constructing / upgrading on-site infrastructure including water services, sanitary sewers burial of hydro service and stormwater management facilities;
      3. Constructing / upgrading off-site infrastructure including roads, water services, sanitary sewers, stormwater management facilities, electrical and gas utilities;
      4. Constructing / upgrading on-site features including hard and soft landscaping, parking areas, walkways, decorative lighting and signage;
      5. Constructing / upgrading off-site features including walkways, pedestrian amenities, hard and soft landscaping;
      6. Constructing new building(s) additions to buildings, upgrading building facade in front or external side yards;
      7. Building permit fees for any of the preceding works to a maximum amount as set out in Section 5.6, “Building Permit Fee Grant Program”; and
      8. The following Leadership in Energy and Environmental Design (LEED) Program Components:
        1. Base plan review by a certified LEED consultant;
        2. Preparing new working drawings to the LEED standard;
        3. Submitting and administering the constructed element testing and certification used to determine the LEED designation.
    8. All applicants participating in this program will be required to enter into an agreement with the City which will specify the terms of the grant and will be registered against the property to which it applies;
    9. Development Incentive Grant Program applications with a projected grant amount exceeding $250,000.00 must be approved by City Council;
    10. If a building(s) erected or renovated on a property participating in this program is demolished before the grant period expires, the remainder of the monies to be paid out under the grant shall be forfeited.

5.5.4 Administration

Guidelines for the administration of this program are attached in Appendix “F”. Appendix “F” does not form part of this Plan. The Guidelines for administration of this program may be changed from time to time, as required, without amendment to this Plan.

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5.6 Building Permit Fee Grant Program

5.6.1 Purpose

The purpose of the Building Permit Fee Grant Program is to facilitate development by providing an additional incentive to partially offset development costs.

5.6.2 Description

This program applies to properties that have been approved under the Development Incentive Grant Program. Therefore, a separate application will not be required for the Building Permit Fee Grant Program.

The Building Permit Fee Grant Program allows for 30% of building permit fees paid, excluding development charges and other supplementary permit charges, to be included as an “eligible cost” within the Development Incentive Grant Program, through which up to 21% of permit cost (70% of 30%) may be reimbursed. The maximum allowable building permit fee as an eligible cost in the Development Incentive Grant Program may be increased to 40% for residential development of three or more new dwelling units (provided that affordable housing criteria as set out in the City of Ottawa Official Plan are achieved) through which up to 34% of permit cost (85% of 40%) may be reimbursed.

The City will provide a grant for eligible building permit fees once building construction is complete and inspected, the property has been reassessed by MPAC demonstrating that the minimum required increase in assessment has been achieved and the applicant has met all the terms of the approved Development Incentive Grant Program agreement.

The Building Permit Fee Grant Program will commence on or after the date that this Plan comes into effect and will be offered for an initial period of five years, with an option to extend the program for up to another five years, subject to the availability of funding as approved by City Council.

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