Staff memo.
1. The status of the ‘Stranded Asset’ review process.
There are actually multiple processes happening here:
1)Finance staff are updating the City’s asset management requirements based on directive from the Province (PS-3260 – Liability for Contaminated Sites) (See November 2013 Report attached)
2) At its December 5, 2013 Budget meeting where the $250k contribution to IMICO’s development process was approved in principle, Council also directed staff: “… conduct a comprehensive review of the City’s strategic real estate needs and report back in Q2 2014 with a policy framework supporting the creation and administration of a Strategic Real Estate Reserve.”
3) With related issues like the Wilson Farmhouse and other city-owned potentially surplus or stranded assets, there is recognition that a ‘Stranded Asset’ review needs to take place, not just focused on contaminated sites.
I can report:
· As described in the Nov 2013 report, the City is on track to be in compliance with PS 3260 by the deadline of December 2015 – this means that known city-owned contaminated sites are appropriately recognized in the City’s financial statements.
· With regards to the Strategic/Stranded review, this is being established as a joint project involving PBEE, CSS and F&E staff. The work plan is to be in place by end of 2014 that would provide the basis for developing the comprehensive strategy and potential financial recommendations, likely over the course of 2015. The intent is that this process would bring a lot of these loose threads together with regards to these types of city-owned assets.
2. Brownfield Funding Replenishment Potential
· On May 28, 2014 staff will be presenting a proposed Guelph Economic Investment Fund model to Council. As directed by Council, this recommendation will include addressing the replenishment / extension of the Tax-increment Based Grant (TIBG) reserve to provide on-going support to the CIP programs that use that mechanism (Brownfield/Downtown/Heritage). While I can’t release details ahead of the May 28th report publication, staff will be making a positive recommendation for Council’s consideration.
· To be clear, staff consider the requirements and impetus to plan for city-owned contaminated or surplus sites as distinct from the Community Improvement Plan programs and TIBG reserve designed to incentivise private sector / private lands redevelopment. Staff