Downtown Hamilton CIP - Maximizing returns

NRU
March 30, 2016
By Leah Wong

To maximize redevelopment opportunities in the downtown core, the City of Hamilton is considering adjusting the boundaries and incentive programs of its community improvement plan.

Last year the city launched a five-year review of its downtown and community renewal community improvement plan. General committee considered the proposed revisions to the downtown CIP at its March 23 meeting and council will provide its direction at its meeting today.

“The changes we are proposing are probably going to look as logical extensions of existing strategies and existing plans that we have in place already,” Hamilton urban renewal manager Glen Norton told committee.

Staff is proposing to extend the CIP’s boundaries in four places-Upper James Street, Dundurn Avenue South, Barton Street East and at the intersection of Barton and King streets. These changes are being proposed to include sites currently outside the CIP area that have been flagged for potential redevelopment.

The city has started to see financial benefits from the incentive programs. Hamilton urban renewal incentives coordinator Hazel Milsome told committee that, for example, the Hamilton Downtown Multi- Residential Property Investment Program has leveraged around $205-million in private construction.

Hoping to fine tune the financial incentives that support the plan amendments are also being proposed.

Norton said the changes seek to address the future sustainability of the program. While the amendments do not require additional funding, they will help to increase the number of businesses that can access existing programs by adjusting the cap on subsidies and altering the criteria for grant programs.

Additionally, staff is proposing to add two incentive programs that will specifically target the Barton-Kenilworth corridor. One of these, the tax increment grant program, would cover a portion of a business’ increase in municipal taxes attributable to redevelopment, such that the increase would be phased in on a sliding scale over nine years.

“We’re bringing focus to the area of the city that I think, probably most people would agree, is most in need of some focus right now. And that’s Barton-Kenilworth,” said Norton. The city has been working to encourage revitalization on this corridor with council approving the Barton-Kenilworth Commercial Corridors Study in September 2014.

These proposed changes follow an extensive consultation process involving neighbourhood groups, businesses and other stakeholders.

This time the city took a more extensive approach to its engagement process than has been used in the past. Hamilton urban renewal senior planner Joe Muto told committee that staff used different engagement methods, such as a bike tour of the CIP area, to get a broader range of feedback.

While overall feedback on the CIP has been positive, one developer is pushing for the city to expand the boundaries further to incorporate one of its projects. New Horizon Development Group is asking the city to extend the CIP boundaries so that the third phase of its City Square project, in the Durand neighbourhood, would be eligible for city subsidies.

“The third phase is on hold right now because the financial feasibility is not quite there to bring it to market,” GSP Group principal planner Glenn Scheels said in a deputation to
committee on behalf of New Horizon. “[The third building] faces a challenge on marketability against projects that are really just several blocks away and within the CIP area.”

Some councillors questioned whether the feasibility of the project hinged on additional subsidies given that the developers have already received demolition credits, parkland dedication relief and increased density.

“I’m sure for developers across the city there are always further ways the city can subsidize your projects,” said Ward 3 councillor Matthew Green. “You got the parkland dedication, you got the demolition credit, you got the increased density, it’s a viable project and I look forward to you building it.”

The Durand Neighbourhood Association is opposed to the city changing the CIP boundaries to include parts of its neighbourhood. Former association president Janice Brown told committee that New Horizon was fully aware of the boundaries of the CIP when it made plans to develop the third City Square condominium tower. She added that the intent of the CIP is to target investment in areas where development is most needed and there is no developable site in Durand at this time.

Ward 2 councillor Jason Farr added that while he wants to support good development, which New Horizon provides, it’s important to recognize that Durand is a very different neighbourhood than the ones that currently lie within the CIP boundaries.

Staff recommendations are expected to be considered by the planning committee at a statutory public meeting May 3.