DOWNTOWN REVITALIZATION: Barrie prioritizes affordable housing

NRU
April 6, 2016
By Leah Wong

As it works towards revitalizing its downtown and increasing its range of housing options, City of Barrie council is considering replacing the community improvement plans for its downtown core.

The city hosted a public meeting on the proposed Built Boundary CIP, which would replace the existing Downtown Barrie and Allandale Centre CIPs, at its general committee meeting Monday night. While the goals of the existing plans—revitalizing the downtown and eliminating vacancies - continue to be priorities for the city, the updated plan places greater emphasis on the need for more affordable housing in the city.

Barrie senior policy planner Kathy Brislin told committee that a new approach is needed as the planning landscape, both locally and provincially, has shifted considerably in the 12 years since the Downtown Barrie plan was approved.

Locally affordable housing, brownfield redevelopment, responsible spending, workforce attraction and transportation have become city priorities. Most recently council approved an affordable housing strategy that addresses the need for a range of housing options in its downtown core. The strategy was developed, in part, based on recommendations from the city’s Built Form Taskforce. (See NRU December 2, 2015 GTA edition.)

Provincially downtown Barrie is a designated urban growth centre under the Growth Plan, with a target of 150 persons and jobs per hectare, with at least 40 per cent of growth occurring in built up areas. In 2011 Barrie had 141,000 persons and 70,000 jobs. It is projected to reach 253,000 persons and 129,000 jobs
by 2041.

To encourage construction of affordable housing units, redevelopment of brownfield sites and  development in the city’s intensification areas, staff is proposing to restructure financial incentives for renovation and redevelopment in the downtown core. The proposed changes seek to create a more sustainable source of funding for CIP programs, while incentivizing a range of development.

The renovation grant program, which replaces the forgivable loan program under the existing CIPs, allows building owners to receive financial support for small-scale projects. One of the focuses of this program is encouraging owners to renovate upper-level spaces for commercial or residential uses.

Projects will be scored for design elements, affordability of units created, whether the building is occupied or vacant and the types of employment created.

Property owners investing in bigger projects on eligible properties, such as adaptive re-use, additions to existing buildings, and development of vacant underutilized lands, may be eligible for the redevelopment program. This program also seeks to create a range of housing types along the affordability spectrum.

“To target a continuum of housing types, the level of grant [and the timing of payment] will vary,” said Brislin. “For example, for emergency shelters and transition housing it is helpful for the grant to be paid upfront rather than after the construction process, whereas with affordable rental [units] we’re recommending [the grant] be received afterwards.”

Owners of projects eligible for the redevelopment program will recoup costs through a tax increment grant, which the city also utilized in the downtown and Allandale CIPs. However, for the new CIP staff is recommending the program be adjusted so that in year three, when the grant drops from 100 per cent of incremental tax increases to 75 per cent, so that the portion of incremental taxes collected by the city is diverted to a reserve fund. The city can then use this money to continue to support downtown revitalization in future years.

“The use of the tax increment grant is excellent because it’s a win-win based on the increased revenue to the city,” Mayor Jeff Lehman told general committee. He added that through this program the city is delaying the receipt of new tax revenues from developments that may not have happened without this grant program. Under the new financing programs building owners will be required to apply. Currently tenants can apply for loans, but they must get the support of their landlord to be eligible.

“Tenants needed their [building] owners to sign off ,” said Brislin. “The owners ultimately had to work through process.

When tenants were involved it was complicating things for both parties.”

While the updated CIP seeks to diversify the housing stock in Barrie, the one area of the affordable ownership spectrum it does not address is affordable home ownership.

In a deputation to committee Sean Mason Homes director Sean Mason suggested that the city still needs a substantive policy that encourages the development of affordable ownership units. Mason, a member of the Built Form Taskforce, said the city needs to find a partner to address this segment of the market as
the proposed plans only address the need for more rental units.

Brislin said staff had considered incentives for affordable ownership, but had not been able to find a way to ensure the units remain affordable once they’ve been constructed.

Staff could not find examples where other jurisdictions have used CIPs to leverage ownership units and will continue to study other ways to encourage the development of affordable ownership units.

Staff will continue to consult with the public and stakeholders on the updated CIP and expects to report back with recommendations in June. While the renovation grant program will have to be worked into the 2017 budget before projects can be approved, Brislin said that once the CIP comes into effect the city can start processing redevelopment projects eligible for the tax increment grant.