Brownfields Redevelopment Community Improvement Plan

Brownfields are abandoned, vacant, or underutilized properties where past actions have resulted in actual or perceived environmental contamination and/or derelict or deteriorated buildings. They are usually, but not exclusively, former industrial or commercial properties. Brownfields can include old landfills, abandoned factories, dry cleaners, gas stations, storage areas, bulk fuel storage/oil terminals, asphalt plants and print shops.

The Ottawa Brownfield Redevelopment Community Improvement Plan is a comprehensive framework for promoting brownfield development within the City's urban boundary and designated villages, as shown in the Official Plan. To be eligible, the proposal must contain a housing component. The eligible funding may be stacked with any other Community Improvement Program, with the exception of the Heritage Community Improvement Plan. 

The Brownfield Redevelopment Community Improvement Plan was adopted by Council on April 27, 2007 and amended by Council on May 12, 2010, October 14, 2015 and April 17, 2024.

Grant Application form

At the time of application, the site must be zoned to permit residential uses. For sites that require a Zoning Bylaw Amendment to permit residential use, the brownfields application may only be submitted once an application for the Zoning Bylaw Amendment has been deemed complete. 

Program description

Under the Brownfield Redevelopment Community Improvement Plan, the applicant is required to submit various technical documents to determine eligibility as well as the estimated eligible costs for the grant. The list of six eligible items are indicated below, and are directly associated with the remediation of the contaminated site.

Eligible items 

• Environmental studies, remedial work plan and risk assessment not included in any of the below
• Environmental remediation including the cost of preparing a record of site condition
• Placing clean fill and grading
• Installing environmental and/or engineering controls/works as specified in the remedial work plan and/or risk assessment
• Monitoring, maintaining and operating environmental and engineering controls/works as specified in the remedial work plan and/or risk assessment
• Environmental insurance premiums

The Brownfield Redevelopment Community Improvement Plan specifies that the total eligible grant is capped at 50 per cent of the total estimated eligible costs.

The two components to the brownfield program are described below.

Rehabilitation Grant Program

The Rehabilitation Grant is payable for a maximum of 20 years from the date of Council approval or until the eligible grant is recovered, whichever occurs earlier.  The chart below indicates the grant per year of the property tax uplift and the maximum eligible amounts for the various application scenarios. Brownfields Redevelopment Community Improvement Plan may be stacked with other Community Improvement Plans, except of the Heritage Community Improvement Plan. 

The program funding is administered through the incremental increase of property tax (property tax uplift) following the brownfield site redevelopment. For example, if a brownfield site currently generates $10,000 in municipal property tax per year and following redevelopment, the property tax being generated increases to $500,000 per year, the uplift is calculated to be $490,000 per year and the annual grant is based on this amount.

In cases of stacked Community Improvement Plan agreements, the annual grants are not to exceed 100 per cent of the annual municipal property tax uplift. The City will only pay the annual grant if all terms and conditions specified in the registered legal agreement between the City and the applicant have been met.

Development Charge Deferral Program

Under the Development Charge Deferral Program. the owner of the property is eligible for a 50 per cent deferment of eligible items costs towards development charges by entering into a deferral agreement with a preferred annual interest charge of the issued index interest rate with the City of Ottawa. The term of the agreement would be subject to a maximum of either two years after issuance of a building permit or three years after the approval by the Council of the Brownfield Redevelopment Community Improvement Plan application by the owner, whichever occurs first, at which time the payment of the development charge deferred amount, plus interest, would be made by the owner.

For more information about these programs and how to make an application, please contact:

Wendy Tse
Coordinator (Acting)
Front-Ending Agreement and Brownfields Program
613-580-2424, extension 12585
wendy.tse@ottawa.ca

History

Council adopted its first Brownfields Redevelopment Community Improvement Plan on April 27, 2007 which was subsequently amended on May 12, 2010 and October 14, 2015. After a comprehensive review, the program was further amended on November 22, 2023 and January 24, 2024.

The goal of the Brownfields Redevelopment Community Improvement Plan is to help applicants overcome the impediments to redevelopment due to site contamination, leading to environmental, economic, and social benefits for the neighbourhood and the City overall.

Basis of the Plan

Brownfields are abandoned, vacant, or underutilized properties where past actions have resulted in actual or perceived environmental contamination and/or derelict or deteriorated buildings. They are usually, but not exclusively, former industrial or commercial properties. Brownfields can include old landfills, abandoned factories, dry cleaners, gas stations, storage areas, bulk fuel storage/oil terminals, asphalt plants and print shops.

The Ottawa Brownfields Redevelopment Community Improvement Plan is a comprehensive framework for promoting brownfield development within the City's urban area boundary and designated villages. 

Provincial legislation

Section 28 of the Planning Act allows municipalities with provisions in their Official Plans relating to community improvement to designate through by-law a “community improvement project area” and prepare and adopt a community improvement plan for the community improvement project area. Once the community improvement plan has been adopted by the municipality and comes into effect, the municipality may exercise authority to make grants in conformity with the Community Improvement Plan By-law.

Section 28 (7.1) specifies that the eligible costs of a community improvement plan may include costs related to ‘environmental site assessment, environmental remediation, development, redevelopment, construction and reconstruction of lands and buildings for rehabilitation purposes or for the provision of energy efficient uses, buildings, structures, works, improvements or facilities.’

Section 28 (7.3) of the Planning Act specifies that the total of all grants and loans made in respect of particular lands and buildings under subsections 28 (7) and (7.2) of the Planning Act shall not exceed the eligible costs of the community improvement plan with respect to those lands and buildings. The grant program contained in Section II of this report sets out the program details for a Brownfields Redevelopment Community Improvement Plan that ensure that this legislation requirement is met.

With the implementation of a community improvement plan under the provisions of the Planning Act, the municipality is exempt from the bonusing prohibition in Section 106 of the Municipal Act. Further, Section 365.1 provides the authority to the municipality to provide tax assistance.

Provincial Policy Statement

The Provincial Policy Statement 2020, issued under Section 3 of the Planning Act, guides municipalities as planning decisions are made. The Planning Act requires that municipal decisions in respect of the exercise of any authority that affects a planning matter “shall be consistent with” the Provincial Policy Statement.

The Provincial Policy Statement supports the long-term economic prosperity and well being of Ontario including strong, sustainable and resilient communities for people of all ages, a clean and healthy environment and a strong and competitive economy which includes the redevelopment of brownfield sites.

Ottawa Official Plan

The Community improvement policies in Section 11.3 of the Official Plan set out the direction for preparing a community improvement plan, conditions to be considered when designating a community improvement project area, priority areas for community improvement, and the range of actions that Council may undertake to implement community improvement plans. A Community Improvement Plan may be prepared and adopted to facilitate the renovation, repair, rehabilitation, remediation, development or other improvement of lands and/or buildings.

Term of Council priorities

The Brownfields Redevelopment Community Improvement Plan directly aligns with the following 2023-2026 Term of Council Priorities to create an Ottawa that:

• has affordable housing and is more liveable for all
• is green and resilient
• has a diversified and prosperous economy
   

General program requirements

• This program applies to brownfields sites within the City of Ottawa’s urban boundary and designated villages.
• Lands under the ownership of the Federal Crown, or the Crown in right of Ontario (or any other Province), or lands under the ownership of a Crown corporation (including but not limited to the National Capital Commission) are not eligible. 
• For the purposes of this community improvement plan, an applicant is the registered owner, assessed owner and tenant of lands and buildings within the community improvement project area, and any person to whom such an owner or tenant has assigned the right to receive a grant or loan, to pay for the whole or any part of the eligible costs of the community improvement plan.
• The general and program specific requirements contained in this community improvement plan are not necessarily exhaustive and the City reserves the right to include other requirements and conditions as deemed necessary on a property specific basis. 
• The City reserves the right to audit the cost of any studies or works that have been approved under this program, at the expense of the applicant. 
• The City is not responsible for any costs incurred by an applicant in relation to the program, including without limitation, costs incurred in anticipation of a grant payment.
• If the applicant is in default of any of the program requirements, or any other requirements of the City, the City may delay, reduce or cancel the approved grant payment.
• The City may discontinue any of the programs at any time, but applicants with approved grants and/or tax assistance will still receive said grant and/or tax assistance, subject to meeting the program requirements, 
• All proposed works approved under the incentive programs and associated improvements to buildings and/or land shall conform to all municipal by-laws, policies, procedures, standards and guidelines, including applicable Official Plan and zoning requirements and approvals. 
• The improvements made to buildings and/or land shall be made pursuant to a building permit, and/or other required permits, and constructed in accordance with the Ontario Building Code. 
• Outstanding work orders, and/or orders or requests to comply, and/or other charges from the City (including tax arrears, where applicable) must be satisfactorily addressed prior to grant payment. 
• 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.

 Program eligibility requirements

• If the applicant or one of its associated companies caused the contamination on site, they are not eligible for an application for grant funding.
• The proposed development shall include a housing component.
• For large developments with a portion of the site meeting the eligibility requirements, only costs related to that portion for the development is eligible for funding. For example, if fill is required for the site with fifty percent contamination, only the cost of the fill related to that fifty percent portion is eligible for funding.
• Eligibility for Brownfields Redevelopment Community Improvement Plan grant funding can be stacked with any other community improvement plan programs. However, the maximum grant funding in any given year cannot exceed 100 per cent of the property tax uplift.
• Any brownfields funding approval will become null and void if the development is not issued a building or excavation permit within 18 months post Council approval of the brownfields application.

Eligible rehabilitation items and costs

Below is a table summarizing the eligible items and maximum eligible costs. 

• Only those items listed in the table above are considered eligible items at the percentage of costs indicated.
• All proposed costs shall exclude HST.
• All proposed costs shall be the incremental cost between a greenfield and brownfields development. For example, if excavation and shoring is required regardless of whether the site is a brownfields project, these costs are not eligible. However, the tipping fee which is only associated with a brownfields project is eligible. 
• Project management costs shall have an upset limit of 10 per cent of the total remediation cost and shall be supported by backup invoices or timesheets.
• Any cost associated with the remediation of future City parkland is not eligible.

Application submission requirements

• All environmental studies (Phase I environmental site assessment, Phase II environmental site assessment, remedial action plan, risk assessment). 
• Detailed work plan and cost estimate prepared by a qualified person (as defined by the Environmental Protection Act and Ontario Regulation 153/04 as amended) for all eligible environmental remediation and risk assessment/risk management works (if not already included in the above environmental studies).
• A cost estimate prepared by a bona fide contractor for eligible rehabilitation costs. 
• A detailed architectural/design and/or construction drawings.
• Estimated post-project assessment value prepared by a private sector property tax consultant. 
• A completed application form.

Process

1. An optional pre-consultation process to identify required submission material and determination of project eligibility may be requested by the property owner/agent.
2. Applicant submits the completed package. Applications must have zoning which permits residential.  For applications that require a Zoning Bylaw Amendment to permit residential, the brownfields application may only be submitted once an application for Zoning Bylaw Amendment has been deemed complete.
3. City staff will review the submission package and provide any comments relating to the submission.
4. The applicant will respond and resubmit to address the comments.
5. City will retain the right to request a peer review on any of the submission material and the full cost will be borne by the applicant.
6. Once all the comments are addressed, staff will deem the application complete and prepare a report to Finance and Corporate Services Committee for final deliberation at Council. For applications which are subject to site plan control approval, the report will be brought forward once site plan control approval has been granted or once there are no outstanding substantial issues.
7. Any remediation costs following application deemed complete are eligible for recovery and the applicant may proceed with remediation at their own risk subject to final Council approval of the Brownfields Redevelopment application.
8. Following Council approval, an agreement will be prepared by the City and registered on the property. The incentives are not transferable except that where the owner ceases to own the lands or part thereof, the remaining grant and provisions of the agreement may be assigned by the owner to another registered owner, upon the consent of the City.
9. When amendments to this community improvement plan are made, the City will pass a by-law to adopt such amendments.
10. Should staff not support approval of an application, the applicant may request a report be brought to Finance and Corporate Services Committee and Council. Council is the final approval authority.

Requirements prior to Rehabilitation Grant payment

Prior to the Rehabilitation Grant payment, the applicant shall complete the below requirements to the City’s satisfaction. The City will then process the initial and yearly payments until the upset limit or a maximum of 20 years from Council approval is reached, whichever occurs earlier.

1. Receive the building permit within 18 months of Council approval of the brownfields application.
2. Complete the rehabilitation work. 
3. Post remediation, submit a Record of Site Condition with the Ministry of Environment, Conservation and Parks, in accordance with all applicable laws, to demonstrate that the site has been properly remediated and meets the relevant Ministry standards and provide proof to the City.
4. Satisfy the City that the rehabilitation costs incurred have been paid in full and that there are no liens, claims or litigation in respect of the owner's obligation to pay the rehabilitation costs, or in the event of any such lien, claims or litigation the owner is, in good faith, disputing same.
5. Satisfy the City that there are no outstanding work orders and/or orders or requests to comply from any City department or other regulatory authority in respect of the initial development of the project, the lands and the business of the owner to the extent it relates directly to and in respect of the lands. 
6. Have requested that the lands be assessed by the Municipal Property Assessment Corporation and that the revised assessment be added to the tax roll of the City, which assessment must demonstrate to the satisfaction of the City, acting reasonably, that the rehabilitation and development of the lands has resulted in the occurrence of a tax increment. 
7. Pay or cause to be paid all outstanding property taxes levied on the lands for a minimum of one year after the lands have been reassessed by the Municipal Property Assessment Corporation. However, if the development has been sold to individual homeowners and there are outstanding property tax payment(s), the grant payment can still be issued but shall be made pro-rated based on the total amount of property taxes paid for that given year. The remaining unpaid tax uplift will not be recoverable in future years. If the development remains within the sole ownership of the original developer, the full property taxes continued to have to be paid prior to issuance of grant payment.
8. Satisfy the City that the building has been constructed in accordance with the building permit.
9. Provide a written request to the City for the initial payment of the Rehabilitation Grant.

Repayment

• The eligible costs, including for phased developments, are recoverable over a maximum of 20 years from the date of Council approval or up until the total eligible funding is recovered, whichever occurs earlier. 
• The total of all grants provided in respect of the particular lands and buildings of an applicant under the programs contained in the Brownfields Redevelopment Community Improvement Plan shall not exceed 50 per cent of the cost of rehabilitating said lands.
• The maximum eligible grant for a standalone Brownfields Redevelopment Community Improvement Plan application is capped at $3 million.
• Brownfields Redevelopment Community Improvement Plan may be stacked with other community improvement plan’s but shall not exceed an annual tax incremental grant funding above 100 per cent of the yearly tax uplift and shall include a funding cap of up to $5 million for all the community improvement plans combined, with the exception of the Affordable Housing Community Improvement Plan. 
• The annual repayment will be based on 50 per cent of property tax uplift for applications that do not qualify for the Affordable Housing Community Improvement Plan. 
• The annual repayment be based on 75 per cent of property tax uplift for applications that qualify under the Affordable Housing Community Improvement Plan or up to 100 per cent if the project is both affordable and identified as protected major transit station areas in the City’s Official Plan to encourage faster development near transit.
• If the combined grant funding of all the community improvement plan programs exceeds 100 per cent of the property tax uplift, only 100 per cent of the municipal property tax uplift will be paid in a given year. The grant funding will continue to be payable up to 100 per cent of the municipal property tax uplift in a given year to the maximum eligible amount, or until the 20-year period has been reached. Once the 20-year period has been reached, no additional payments will be made. 

Development Charge Deferral Program

Under the Development Charge Deferral Program, the owner of the property is eligible for a 50 per cent deferment of eligible items costs towards development charges, by entering into a deferral agreement with a preferred annual interest charge of the issued index interest rate with the City of Ottawa. The term of the agreement would be subject to a maximum of either two years after issuance of a building permit or three years after the approval by the Council of the Brownfield Redevelopment Community Improvement Plan application by the developer, whichever one occurs first, at which time the payment of the development charge deferred amount, plus interest, would be made by the developer.

The Old Landfill Management Strategy was implemented by the City of Ottawa to protect public health and the environment, to assess and minimize possible liability of the municipality and individuals, and to provide information to the various stakeholders associated with old landfill sites in the amalgamated City of Ottawa.

The first phase of the Old Landfill Management Strategy initiative included a detailed inventory of old landfill sites within the City which was documented in the report entitled  Old Landfill Management Strategy, Phase 1 – Identification of Sites, City of Ottawa, Ontario” (Golder Associates, October 2004).  Electronic copies of this report are available upon request.  Inquiries such as whether a resident’s home was built on a former landfill can be directed to

Environmental Remediation Unit -  ERU-UAE@ottawa.ca

Kimberley Millar, Environmental Remediation and Leasing Program Manager 
613-580-2424, extension 23416
Kimberley.Millar@ottawa.ca.

Erin Tait, Environmental Remediation Specialist
613-580-2424, extension 12958
Erin.Tait@ottawa.ca.