On Tuesday night, members of Bradford council heard a deputation from Cachet Homes, regarding a new housing development on Dissette Street and application for a $700K grant from the Downtown Community Improvement Plan (DCIP).
A benefits analysis was presented by economist Jeannette Gillezeau of Altus Group, with Cachet's Marcus Gagliardi in attendance to answer questions from council and staff.
The developer is seeking $680,000 under Program 5, the Tax-based Redevelopment Grant (TIG), and $20,000 under Program 3, planning fees and building permits.
The application for the development was received by the town in Nov. 2017. The subject lands are 2.37 hectares in size, located at 200 Dissette Street, just south of Jay Street. Cachet is planning to build 122 homes, including 106 townhomes and 16 residential units on top of retail spaces.
The $53 million development will cover seven blocks, within walking distance of the GO Station and the downtown core.
"Why these back-to-back townhouses are more common is because it's a way to get higher density development that really fits pretty well with your existing low density neighbourhoods but can also provide housing that is suitable for young families and affordable for young families," noted Gillezeau. "It really can be a pleasant environment to live in."
Gillezeau pointed out that to date, there has been very little residential intensification in Bradford, and referred to the County of Simcoe's stats indicating Bradford sits at only five percent.
"With 122 units, it will make a good dent in your intesification requirements," she said.
She noted that the DCIP was established to promote social, economic and physical enhancement of the downtown and improve neighbourhood amenities; the proposed development would do just that.
"The average household spends $38K a year in retail and services," she said, "so the 122 families who move in will bring up to $4.6M in spending and be an opportunity for your existing businesses...a larger pool of potential customers."
"From an economic perspective, the mixed use will effectively address your goals and outcomes of the DCIP incentive program," she concluded.
So far, Cachet has pre-sold approximately 110 units.
Gagliardi thanked council for their consideration, and support for the development. He noted the $20K costs under Program 3 include permits to relocate a hydro pole and curb, and widen the road.
The bulk of the money, $680K, would assist the developer with the municipal portion of their taxes. The funds would be phased in over a 10-year period, and subject to review given that taxes will change over time. For years 1-3, Cachet would receive $20K, $40K and $60K respectively, and years 5-10 would receive installments of $80K.
“We appreciate the sensitivity of that relief but there is potential for reassessment," noted Gagliardi.
"We are working on data from MPAC," said Treasuer Ian Goodfellow, "that’s why we suggested phasing in the payment over a few years. This isn’t all the taxes, it’s a portion. The committee felt this was a fair number and something that certainly requires a bit of a crystal ball."
Council was pleased with the presentation, with most Councillors in favour of supporting the grant application.
"It's a very nice development. We're excited to see it on Dissette Street," said Mayor Rob Keffer.
"This is an investment in our community," noted Deputy Mayor James Leduc, "without any impact to our residents... "I truly believe you've checked all the boxes."
"This is what we put this CI grant program (in place for)," said Leduc, noting that the incentive is similar to that provided for Seniors' Accommodation. "We've seen great investments," he said. "This is not an impact to our residents but it delivers a project that really bodes well for our community."
Coun. Ron Orr said he liked the style of the homes, but wondered if the developer would still go through with the project, whether or not the grants were approved.
"I would start tomorrow!" said Gagliardi. “I think there was some fear from staff that this development might get phased, but the reality is this development is a full go and we will deliver it as quickly and efficiently as possible.”
Coun. Mark Contois, who also sits on the Downtown Revitalization Committee, supported the application and noted the intent of the CIP program was not originally designed for developments, "but we put together an incentive program for commercial industrial areas, and in my view we're looking for enhancements by the GO station and this falls into everything we want."
Coun. Raj Sandhu noted the application was unique and supported the staff's recommendations for the grant. He noted that Cachet could have requested "a little more than $2 million" through the CIP's Development Charges program, but it wasn't seen as appropriate. The TIG grant provides an alternative.
"It's forgone revenue... and it's delivering an excellent project," said Sandhu. "That's well-spent money. This is providing options for young families, close to the downtown."
Coun. Orr admitted at first he wasn't on board with the idea of the development, but understands it's something the town needs.
"My original thought pattern was, I can't support this... I've had a few people upset because of the money we are perceived to be giving away," said Orr. "The fact that the market is so strong and they are almost sold out, I wondered if we need to go this far (in giving more money)?"
Mayor Keffer said he hopes residents will take the time to understand the background of the project to see it more as a long-term investment for the town.
"People look at this $700K and wonder 'what are we doing?'" he said. "I don't want council members to think this won't get some consideration from the tax payers of our municipality, wondering if it's a wise decision on our part."
In response to a question from Council, it was noted that the development is expected to generate over $1.58 million in municipal taxation alone over the 10-year period of the TIG program. The grant represents 40 percent of future taxation.
"This taxation wouldn't be here, if we didn't get this development," noted Leduc. "It's not like we're impacting any residents. This is a development that's going to support jobs, growth, this is brownfield, this is intensificiation... and meets all our OP (Official Plan) requirements."
"I think it's going to kickstart our downtown," he said. "This is only a ten year program. We're going to generate taxation for 40 or 50 years, and further. This is a win-win."
Coun. Mark Contois had one further point: "How many communities are actually getting investment during COVID? We're fortunate. I think this is a great opportunity for our community, and the timing can't be any better."
He added, "The benefit is more so than the deficit."
Council voted unanimously to approve the report as presented.
