On October 8, th 2019, 2594756 Ontario Ltd. (c/o Kyle MacDonald), owner of the property located at 1008 Drouillard Road, submitted an application for grants under the Ford City CIP Financial Incentive Programs and the Building Facade Improvement Program and Urban Design Guidelines for Main Streets CIP. The property is located in the Ford City Business Improvement Area (BIA) and CIP Area. The owner is Employed by the City of Windsor.

Discussion:

Ford City CIP Financial Incentive Programs

The applicant is eligible for the following programs under the Ford City CIP Financial Incentive Programs:

Retail Investment Grant Program — the design and first impression made of a retail store is criti cal when appealing to its intended market and it can influence a consumer’s perception of the quality of the store and visually communicate value. The grant offers up to 50% of eligible costs for improvements to a maximum amount of $15,000 per retail unit in a building that has had a vacant ground floor retail or commercial storefront(s) for at least 6 months immediately prior to submission of an application to the program and will be occupied by a new retail business. The applicant is proposing one (1) new retail unit on the ground floor.

Interior improvements include retention/rehabilitation of the interior terrazzo floor, extensive interior upgrades including the new gypsum board walls with insulation, new washrooms and fixtures, new HVAC equipment and distribution, new electrical power distribution, new lighting, new steel & wood stairs, and new interior doors. The applicant is eligible for a $15,000 grant for the one (1) ground floor retail unit.

Municipal Development Fees Grant Program — intended to encourage development within Ford City by providing an incentive to offset the costs associated with seeking the appropriate planning approvals and building permits for a project. Property owners will be eligible to receive a grant for 100% of the specified Municipal Development Fees , up to a maximum of $50,000 per property.

Building/Property Improvement Tax Increment Grant — intended to provide financial incentive for the physical improvements to properties whereby registered property owners and/or assignees would be eligible to receive a grant for 100% of the municipal portion of the tax increment generated from the improvements made to the building or property for up to 10 years.

The property is assessed at the 2020 commercial tax rate. According to the program details, to be eligible for the Building/Property Improvement Tax Increment Grant, improvements to the building/property must result in an annual grant (or tax increment) of at least $5000 for this particular property. After our initial calculations we realized that the grant threshold is likely too high for the magnitude of investments being made in Ford City and should be lowered to $1000 for a commercial property. Through Recommendation VII we are requesting minor revisions to the Program Detail which is explained in the Financials Matters Section of this Report.

The applicant proposes to spend approximately $152,000 to renovate the façade and interior of the existing building. The estimated value of this property after