RECOMMENDATION:
THAT the report entitled “Review of Canadian Municipal Incentive
Programs for Heritage Preservation and Downtown Renewal” dated May 18, 2004, be received as information;
THAT the report entitled “Review of Canadian Municipal Incentive
Programs for Heritage Preservation and Downtown Renewal”, and Discussion Paper
Appendix “A”, be circulated for comment to the Main Street Markham Committee,
Heritage Markham, the Unionville BIA and the Markham Village BIA.
AND THAT the program requirements for the Commercial Façade Improvement
Grant Program and the Signage Replacement Program be forwarded to the
Development Services Committee meeting of June
1, 2004 for endorsation.
PURPOSE:
The purpose of this report is to present the findings of an examination
of the types of assistance provided by Canadian municipalities to downtown
areas and heritage properties/ districts.
BACKGROUND:
Staff was asked to examine
assistance programs in other municipalities
This project was initiated after Markham Council approved funding for
two pilot programs to address façade improvement and signage replacement in Markham’s traditional
commercial downtown areas, which are also heritage conservation districts. Council requested staff to investigate what
types of financial and non-financial programs were being offered in other
municipalities. The results of this
analysis could then be used to assist Council in determining whether a more
comprehensive assistance program was warranted in Markham.
Staff obtained the services
of a co-op student to undertake research
To undertake this research project, staff obtained the services of a University of Waterloo co-op
student. A referral sampling method was
used. Municipalities were selected using
staff knowledge of existing assistance programs and materials currently on
file. Both primary and secondary
research methods were used.
Municipalities were contacted by email or telephone, and were provided a
prepared questionnaire to complete or answer verbally. Secondary research was undertaken on other
municipalities through Internet searches and hardcopy documents. Often referrals to other municipalities were
obtained during discussions.
Collected data was organized in matrixes according to the different
types of incentive programs and analysed for the report. The study findings are in the Discussion
Paper attached as Appendix “A”.
DISCUSSION:
The review examined both
financial and non-financial assistance
The examination of assistance programs in other municipalities found
that both financial and non-financial assistance is being offered. Financial assistance generally involves
grants, loans or tax relief and entrance into one of these programs often does
not prevent a property owner from applying to another.
Non-financial assistance usually complements other types of financial
assistance programs and can include: the relaxation of development requirements
and standards (i.e. parking requirements, zoning standards), the waiving or
reduction of fees and charges (i.e. development charges, building permit fees),
the use of density bonuses, fast-tracking application approval and the
provision of consultation services.
For financial assistance,
grants are the more popular form of incentives
The examination found the following:
Grants
·
This form of incentive is the more popular form of
assistance related to heritage specific programs, however they are used for
both designated properties and downtown renewal programs.
·
Type of eligible work is primarily exterior
restoration and renovation (façade improvements) and conservation of heritage
features.
·
Professional fees often are eligible.
·
Interior improvements are rarely eligible
·
Grants range from $1000 to $200,000, many with a
$25,000 maximum
·
Most programs are 50/50 matching grants
·
There is usually a requirement to protect the
investment through an easement registered on title.
Loans
·
Common among both heritage and non-heritage assistance
programs
·
Loan amounts range from $3000 to $50,000 with many
having a maximum limit of $15,000.
·
Loans offer a low interest rate (below bank prime) or
interest free.
·
Eligible work usually involved exterior façade
improvements and heritage restoration.
Tax Relief
·
Most tax relief programs are associated with
redevelopment or building improvement projects.
·
The municipality encourages the improvement work by
forgoing all or a percentage of the annual increase in municipal property taxes
attributed to the new work.
·
Assistance is offered in the form of a tax rebate, tax
credit, tax exemption or a grant, where the revenue forgone can range from
20-100% of the annual tax increases over a period of 3-12 years.
·
A number of Ontario municipalities have also taken
advantage of recent provincial legislation that allows a property tax reduction
of 10-40% to be given for designated heritage properties. This program recognizes that heritage
properties have additional maintenance costs due to their heritage attributes.
For non-financial assistance,
the exemption of fees is often used
The study revealed that most municipalities do not
have a separate program for non-financial incentives, but it is instead part of
their business practices. Some
municipalities report that the non-financial tools are the most important. Many of these tools provide indirect
financial assistance. The examination
found the following:
Fee Exemptions
·
Appears to be widely used and includes
development charges, building permit fees, planning fees and other application
fees, or equivalent grants.
·
Fee exemption is used for downtown
rehabilitation, redevelopment projects, etc.
·
A report on incentives undertaken in B.C.
found that reduced development cost charges is considered a greater incentive
than grants, tax exemption and reduced building code regulations.
Density Bonus
·
Involves an increase in the intensity of
development allowed on a property as an incentive for redevelopment
·
This has been used to encourage
commercial/residential conversions and other adaptive re-use efforts as well as
property redevelopment.
Relaxation of Regulations and Flexibility
·
Includes zoning regulations and standards,
parking requirements and some building code requirements.
·
In some jurisdictions, regulations are
automatically relaxed based on the type of project or area of the municipality
while in others, they are negotiated.
Fast-tracking Approvals
·
Some jurisdictions fast-track or give
special priority to certain types of redevelopment or restoration projects or
projects in certain areas as a form of incentive.
Public Works
·
A number of municipalities have undertaken
improvements to the public realm to encourage investment on private property.
·
Projects have included new or improved
street furniture, lighting, street name. signage, pavement widths, treatment of
sidewalks, tree plantings and flowers, etc.
·
Demonstrates a commitment to partner with
the private sector.
Non-financial Heritage Incentives
·
Some programs are specifically directed at
heritage properties including fee exemptions for all building and planning fees
if the property is designated and the waiving of all fees to move a heritage
building in order to save it.
·
Another program offers free consultation
on colour scheme selection and provides free paint.
Markham has supported a
number of programs directed at heritage properties and downtown areas
The study also briefly reviews the two primary
financial assistance programs in Markham: The Town of Markham Heritage Loan
Program created in 1981, and the Heritage Property Tax Reduction Program
recently introduced by Council.
Markham does not charge an application fee for
Heritage Permits which are utilized by property owners in heritage conservation
district and by owners of individually designated properties when minor
alterations are requested. Council has
also waived the fees associated with the preparation of Heritage Easement
Agreements. Staff in the Planning and
Urban Design Department also provides design review assistance for restoration
projects and new construction in the heritage districts. The municipality has also undertaken a wide
array of streetscape improvements and studies, and beautification projects in
the heritage districts. These
improvements to the public realm encourage private investment.
Council has also approved the funding of two new
programs as pilot projects, but these are not yet implemented as program
requirements are still being prepared.
The Commercial Façade Improvement Grant Program would provide
grant assistance to facilitate façade improvements of privately-owned
commercial properties located within the Town’s heritage districts (which
include the traditional commercial areas of Thornhill, Unionville and Markham
Village). The Commercial Signage
Replacement Program is proposed to encourage the replacement of
inappropriate commercial signage in heritage districts with complementary
signage that respects the character of the area, the District guidelines and
the Markham Sign By-law.
The study offers some
suggestions for further investigation
The following suggestions are from the study. Most would require further analysis and
investigation as to their feasibility and applicability to Markham:
·
The necessary program guidelines and application procedures for the
Commercial Façade Improvement Grant Program and the Commercial Signage
Replacement Program should be brought forward to Council for approval and
implementation.
·
The existing Heritage Loan Program should be reviewed in light of other
loan programs currently offered in other municipalities.
·
Staff should investigate if other forms of financial assistance
programs used in other communities are appropriate for Markham.
·
Staff should investigate whether the reduction or elimination of
certain fees, or grants equivalent to fees, related to improvement projects
would be appropriate for Markham.
·
Staff should investigate the applicability of introducing some form of
fast-track review of planning applications and building permit applications
that involve the preservation of a heritage resource.
Recommendations
It is recommended that the study be circulated for comment to the Main
Street Markham Committee, Heritage Markham, the Unionville BIA and the Markham
Village BIA.
To address certain recommendations of the study, Staff has been working
on the development of a complete package of program requirements for the
Commercial Façade Improvement Grant Program and the Commercial Signage
Replacement Program. We anticipate that
these programs will be forwarded to the Development Services Committee meeting
of June 1, 2004 for approval and implementation.
It is recommended that the other suggested options be further reviewed
by staff across Town Commissions, along with any feedback received from the
organizations such as the BIAs, Heritage Markham and the Main Street Markham
Committee, as to their applicability and possible merit in the Markham context.
FINANCIAL CONSIDERATIONS:
None at this time.
ENGAGE 21ST CONSIDERATIONS:
This analysis aligns with the corporate goal of
achieving a Quality Community through recognizing, promoting and strengthening
a sense of community.
BUSINESS UNITS
CONSULTED AND AFFECTED:
It is recommended that the report entitled “Review of Incentive Programs
for Heritage Preservation and Downtown Renewal” be circulated for comment to
the Main Street Markham Committee, Heritage Markham, the Unionville BIA and the
Markham Village BIA. Development
Services Commission staff will also review the possible merit of the suggested
options with Finance and Legal staff, and the C.A.O.
ATTACHMENTS:
Appendix “A” – Review of Canadian
Municipal Incentive Programs for Heritage Conservation and Downtown Renewal
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Valerie Shuttleworth, M.C.I.P., R.P.P.
Director of Planning & Urban Design
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Jim Baird, M.C.I.P., R.P.P.
Commissioner of Development Services
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Q:\Development\Heritage\SUBJECT\Financial
Incentives-Heritage and Downtown\DSC report may 18, 2004.doc
