Owners of 5021089 Ontario Inc.: Ray Blanchard (majority), Yanini Sizonenko (minority) 

Discussion:

New Residential Development Grant Program

The New Residential Development Grant Program is intended to provide an incentive to stimulate residential development within Downtown Windsor. The program will consist of a grant whereby property owners will be eligible to receive a grant to $2,500 for every new residential unit, up to a maximum of $50,000 per property.

The owner proposes seven (7) new residential units, therefore the project qualifies for a grant total of $17,500 under the program.

Building/Property Improvement Tax Increment Grant Program

This program is intended to provide economic incentive for the development, rehabilitation and redevelopment of properties in Downtown Windsor. The program provides an annual grant equal to 100% of the increase in municipal property taxes for five years, with the possibility of an extension up to a total of ten (10) years, after the project is completed and reassessed. The grant is to help offset the costs of rehabilitating and redeveloping properties, as long as such development results in an increase in assessment and therefore an increase in property taxes.

Council may approve an additional five (5) year extension for a catalyst project, a designated heritage building, projects where at least 20% of the units are affordable housing units and/or projects that achieve a LEED Bronze or higher certification. The applicant proposes a LEED Bronze Certification to qualify for the additional five (5) years. The applicant will be required to provide documentation to verify the Bronze Certification each year to receive the annual grant for the additional five (5) years.

The proposed improvements to the building will increase the assessed value and therefore increase municipal taxes. This project qualifies for the Building/Property Improvement Tax Increment Grant and the Financial Matters section of this report discusses the estimated grant amount.

Planning Approvals

The subject proposal will require Site Plan Control. Typically, staff is delegated site plan control approval authority, however, in certain locations like downtown, City Council is the approval authority unless it delegates it back to staff.

The applicant is currently progressing through the site plan control process. In order to expedite the approval process and allow the developer to begin work, staff recommend that the City Planner be delegated authority to approve the site plan control application for the proposed development at 477 Pelissier Street.

Risk Analysis:

There is low risk associated with the approval of the subject Downtown CIP grant applications. The grant is payable after the facade improvements are complete to the