This correspondence was intended to be presented to Council in reference to the Tax Increment Grant proposal for 148-152 MacDonnell St.
I’m DS and I am speaking this evening on behalf of the Guelph Civic League, as its president, regarding the request for a Tax Increment-Based Grant related to the proposed development at 148-152 Macdonell Street.
First, I would like to say that the GCL strongly supports the development of brownfield sites and recognizes the benefit of Tax Increment-Based Grants as a strong incentive for brownfield development. We recognize that brownfield developments are often complex and incentives for development are important for increasing the tax base and the health of the City in the long term.
The staff report on this issue describes the purpose of such a financial
incentive: “to stimulate investment in remediation, reuse and redevelopment of brownfield sites that otherwise would not be redeveloped.”That is the central question: is the brownfield site in this case one that otherwise would not be redeveloped?
City staff signalled to the development community that an 18-storey structure may be possible via the Downtown Guelph Secondary Plan. The developer in this case appears to have jumped at the chance to build in this location, despite the fact that the Secondary Plan is not yet approved. Property was purchased and has already been cleared.
Does this sound like a brownfield site that otherwise would not be redeveloped?
In a number of municipalities in Ontario, when the city allows a developer to build at a height and density beyond what is allowed by zoning, the developer compensates by providing added benefits to the community. This exchange, called ‘bonusing’, often results in the developer providing facilities, services, or matters, such as public art or transit improvements.
Apparently Guelph will be heading in this direction with its next Official Plan update.
The staff report states that the site in question is “designated Central Business District in the Official Plan and zoned CBD.1 which permits a broad range of commercial and institutional uses and residential uses as part of a mixed-use building to a maximum of 64 units and a maximum height of 6 storeys.”
It also states that “The City has received an application to amend the Official Plan and Zoning By-law to permit an 18-storey building with 130 residential units.”
That is triple the height and more than double the density currently permitted.
That would make for a heck of a lot of bonusing! Perhaps, instead of taxpayers providing a $1.75M incentive for site remediation, the developer here should be doing the site remediation as a ‘service’ to the community.As mentioned in the staff report, there is a limited budget for brownfield site incentives, and that $1.75M could be used for those existing brownfield sites that – truly – would otherwise not be redeveloped. DS