Brownfields in Ontario Today by o489H3

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									            Ministry of Municipal Affairs and Housing
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Brownfields in Ontario Today

   Northern Ontario Development Network
                Thunder Bay
             November 10, 2009
                  The Challenge of Brownfields




      ▪   Brownfields are lands that may have been contaminated from past use
          and are currently abandoned or underutilized.
      ▪   Usually, but not exclusively, former industrial or commercial
          properties that may be underutilized, derelict, or vacant.
      ▪   Key Challenge
            Encourage the revitalization of brownfield properties and
             surrounding communities while protecting health and the
             environment

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             Brownfields in Ontario: Where are
                        they found?

                    Brownfields exist in every
                     municipality, big and small, urban
                     and rural
                    Common in historic urban cores,
                     waterfronts, downtown main
                     streets, railway corridors, service
                     junctions
                    In smaller communities, most
                     common brownfield sites:
                      • abandoned service stations
                      • former industrial sites
                      • landfills


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                        Why do Brownfields Matter?

      ▪ Brownfield redevelopment brings significant benefits…
              Environmental:
                • Reduce threats to drinking water sources
                • Reduce environmental and human health risks
                • Reduce greenhouse gas emissions

                Economic:
                   Can increase the local tax base
                   More efficient use of existing infrastructure and services
                   Generates significant new economic investment
                   Creates value and transforms a "negative energy field” into a
                    magnet for economic activity

                Social:
                  • Acts as a catalyst for community revitalization
                  • Breathes new life into a community


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                How Does Ontario Encourage
                Brownfield Redevelopment?

      ▪   Municipal Empowerment
      ▪   Tax Incentive Programs
      ▪   Growth Management Policy
      ▪   Liability Limitation
      ▪   Clear Standards




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                 Municipal Empowerment


      ▪ Ontario provides a legislative and
          regulatory environment that empowers
          municipalities to take action on
          brownfields:
      ▪   Community Improvement Plans
      ▪   Development Charge Exemptions



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                     Community Improvement Plans

      ▪   Allow for strategic policy planning on
          a site-specific or area-wide basis
              Existing built-up area
              Former industrial area
              Downtown / mainstreet

      ▪   Assist with implementing municipal
          priorities and planning policies (e.g.
          economic development, downtown
          revitalization)

      ▪   Allow for incentive-based programs to
          stimulate private sector investment
          (e.g. remediation of brownfields,
          façade and main streetscape
          improvements)



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                      What Kinds of Incentives are Offered?



      ▪   Section 28 of the Planning Act allows a very broad
          range, but usual measures include:
              Property Tax Reduction/Cancellation
                • Cancel or reduce taxes for a period of time or until remediation
                  paid for
              Tax Increment Equivalent Grant
                • Municipality repays landowner a portion of increase in property
                  assessment until remediation paid for
              Tax Arrears Cancellation
              Environmental Study Grants or Loans
                • Assists with a proportion of costs of Phase 1, 2 ESA’s, and/or Risk
                  Assessment
      ▪   Other Fee Reductions (s.69, Planning Act)
                • Reduce or eliminate fees for Planning and Building Permit
                  applications (s.69, Planning Act), Landfill Tipping Fees, etc.


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                Development Charge Exemptions


      ▪   Development Charges Act (sec 5.1.10) allows
          municipalities to give full or partial exemption
          for certain areas or classes of property
      ▪   Development Charges relatively unusual in
          Northern Ontario
      ▪   Implementation of this tool requires extensive
          consideration and analysis in Development
          Charge Study
      ▪   A preferred incentive by development sector
          because grant typically occurs at time of
          building permit issuance

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                Ontario Brownfields Tax Incentive
                         Program (BFTIP)

      ▪   BFTIP is a tax cancellation program affecting the
          provincial component of the Business Education Tax
      ▪   BFTIP only applicable where a municipality is also
          offering tax cancellation/reduction via a CIP.
      ▪   Municipal Council requests approval for a by-law from
          the Minister of Finance. MMAH Regional Offices
          administer the program, and can explain it to
          municipal staff.
      ▪   Maximum eligibility is lesser of 3 years or
          reimbursement of remediation cost.
      ▪   Sale or division of property renders it ineligible for
          further BFTIP funding

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                How many Brownfield CIP’s are
                          there?

      ▪ 45 across Ontario, with 15 in approval
          process and 33 more being considered.
      ▪   Not just a southern Ontario feature; 9 in
          Northern Ontario
      ▪   Northern Ontario municipalities have
          some outstanding examples
      ▪   Municipalities in North-West – Thunder
          Bay, Kenora, Fort Frances
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                    Best Practices for Incentive Policies


      Municipalities have major role to play
      Remediation is expensive; big-ticket items such as development charge
      exemptions and property tax reductions can make a real difference

      ▪      Recognize financial realities of brownfield redevelopment:
                Developers struggle with funding front-end site assessment and remediation work, so try
                 to focus on bringing support in early.
      ▪   Time is money
                Consider how to get decisions quickly, and how to make provide information that is both
                 clear and easily available to land owners and developers
      ▪   Link your strategies
                Brownfield redevelopment should be just one component in larger economic
                 development, land use planning, and infrastructure strategies.
      ▪   Opportunity Cost is a reality
                NOT encouraging brownfield development isn’t free – if sites stay undeveloped,
                 environmental problems continue, areas of municipalities are negatively affected
                If development doesn’t happen, municipality definitely won’t get more revenue; with
                 incentives, municipality eventually will




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                      Growth Management Policy

      ▪   PPS section 1.3 requires municipalities to consider
          preservation of Employment Areas in their planning
          documents and decisions.
      ▪   Conversion of employment lands requires a
          “Comprehensive Review”
      ▪   Municipalities have to strike a balance between
          employment uses, defined as:
              including, but not limited to, manufacturing, warehousing,
               offices, and associated retail and ancillary facilities
      ▪   Need to consider how brownfields fit into this review.
      ▪   Avoid assumption that residential is necessarily the
          only alternative for brownfields.

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                 Municipal Empowerment


      ▪ Ontario provides a legislative and
          regulatory environment that empowers
          municipalities to take action on
          brownfields:
      ▪   Community Improvement Plans
      ▪   Development Charge Exemptions



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                     Community Improvement Plans

      ▪   Allow for strategic policy planning on
          a site-specific or area-wide basis
              Existing built-up area
              Former industrial area
              Downtown / mainstreet

      ▪   Assist with implementing municipal
          priorities and planning policies (e.g.
          economic development, downtown
          revitalization)

      ▪   Allow for incentive-based programs to
          stimulate private sector investment
          (e.g. remediation of brownfields,
          façade and main streetscape
          improvements)



10/11/2009                        Brownfields - Northern Ontario   15
                      What Kinds of Incentives are Offered?



      ▪   Section 28 of the Planning Act allows a very broad
          range, but usual measures include:
              Property Tax Reduction/Cancellation
                • Cancel or reduce taxes for a period of time or until remediation
                  paid for
              Tax Increment Equivalent Grant
                • Municipality repays landowner a portion of increase in property
                  assessment until remediation paid for
              Tax Arrears Cancellation
              Environmental Study Grants or Loans
                • Assists with a proportion of costs of Phase 1, 2 ESA’s, and/or Risk
                  Assessment
      ▪   Other Fee Reductions (s.69, Planning Act)
                • Reduce or eliminate fees for Planning and Building Permit
                  applications (s.69, Planning Act), Landfill Tipping Fees, etc.


10/11/2009                       Brownfields - Northern Ontario                         16
                Development Charge Exemptions


      ▪   Development Charges Act (sec 5.1.10) allows
          municipalities to give full or partial exemption
          for certain areas or classes of property
      ▪   Development Charges relatively unusual in
          Northern Ontario
      ▪   Implementation of this tool requires extensive
          consideration and analysis in Development
          Charge Study
      ▪   A preferred incentive by development sector
          because grant typically occurs at time of
          building permit issuance

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                                   Liability Limitation

      ▪   Two varieties:
              Civil
              Regulatory
      ▪   Civil liability relates to harm to persons or property.
              Typically arises from off-site migration of contamination or negative effects,
               potentially also in future from future users of remediated site
              No Canadian province limits civil liability
      ▪   Regulatory liability relates to potential for a government authority to
          impose costs, orders, or obligations on a current or past landowner
              Filing Record of Site Condition offers some protection against regulatory
               liability for owners
              Municipalities are also able to undertake tax sale and do work on site without
               incurring regulatory liability
              Secured Creditors, Trustees, Receivers, and Executors also receive limited
               protection
              New contamination of the property would invalidate liability for polluter, as
               would filing false or misleading information.



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                    Tax Sales and Provincial Liens

      ▪   Municipalities do not have to vest property if a tax sale fails.

      ▪   Recent legislative changes provide greater flexibility in the tax sale process for
          municipalities (e.g. administration)

      ▪   After a failed tax sale, a municipality can enter the property and undertake basic
          assessment work (2 years).

      ▪   Can also take a variety of actions such as ensuring the supply of services; securing
          the property; removal, repair or renewal of any building or structure.

      ▪   Municipalities can vest property after a failed tax sale, free of provincial crown
          liens; if sold within 7 yrs of vesting, municipality is required to revenue share
          proceeds with province

      ▪   This gives municipalities a variety of options to deal with brownfields properties
          that may be in financial difficulty




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                                       Clear Standards

      ▪   Main Environmental legislation affecting Brownfields is Regulation 153/04
          under the Environmental Protection Act
      ▪   Establishes framework for:
              Determination of when site must be remediated before change in land use
              Standards for site remediation
              Process for site assessment (Phase 1 and 2)
              How risks associated with contamination can be assessed and mitigated (Risk
               Assessment)
              Who can conduct site assessment and oversee remediation (Qualified Persons)
              Registration of site remediation completion – Record of Site Condition
      ▪   MOE has been working on new Regulations under EPA.
                New “Tier 2” Risk Assessment to accelerate approvals
                More standardization and guidance on Phase 1 and 2 contents
                Measures to increase reliability of Record of Site Condition
                Updating standards to reflect current science
      ▪   MOE goal is for new Regulations to be complete this year; but final
          decision rests with Government.


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                              Examples of Brownfield
                                Redevelopment - 1

         North Bay acquired rail lands adjacent to
         the downtown and redeveloped the site into
         a waterfront community park (reduced
         remediation costs) - the park has acted as a
         catalyst for the revitalization of the
         declining city core (new jobs / businesses)

             Abandoned rail lands adjacent to declining central core

             Cleanup costs of $11M reduced to $1.3M with waterfront park

             Creation of 350+ short term and permanent jobs; 20 new businesses
             $24M in adjacent residential and commercial development




10/11/2009                        Brownfields - Northern Ontario                 21
                              Examples of Brownfield
                                Redevelopment - 2

       Hamilton used the time after a failed tax sale
        to do site assessment work, then re-advertised
        the property with this information (Request for
        Offer) - brought higher bids and new interest
        from private sector



     Thorold developed a site specific CIP for the
        former Thorold Gallaher Paper Mill on a 16 acre
        site. Proactive approach taken by municipality to
        develop a Public-Private partnership supported by
        community stakeholders to enhance downtown
        revitalization strategy and the retention and
        enhancement of heritage buildings. Renewed uses
        include a warehouse, retail and offices,
        conference facility, parking and green space
        development


10/11/2009                         Brownfields - Northern Ontario   22
                                  In Conclusion:

      What can make the Difference?
         Shared and clear vision — common commitment to mutually
          agreed goals

         Local leadership — a local champion to sustain momentum

         A knowledgeable, diverse team — cutting corners costs in the
          end

         Creativity and innovation — integrated within the full context of
          change in the community



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                    Where to get Information?

      ▪ www.ontario.ca/brownfields
      ▪ www.sustainablecommunities.fcm.ca/GMF
      Office of the Brownfields Coordinator
      Ministry of Municipal Affairs and Housing
      777 Bay Street, 3rd Floor
      Toronto, ON M5G 2E5

      Tel: 416.585.6778
      Fax: 416.585.6467
      E-mail: Brownfieldsontario@ontario.ca
      Visit: www.ontario.ca/brownfields


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