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Additions to Council, October 24, 2012ADDITIONS TO COUNCIL, TUESDAY, OCTOBER 24, 2012 COUNCIL 1. PD- 201262 - Official Plan Amendment No. 106 Proposed urban Area Boundary Expansion a) Correspondence from Frank Fohr b) Correspondence from Joyce Sankey, Niagara Falls Nature Club Reports 1. F- 2012 -42 Niagara Falls Soccer Club Indoor Facility Update (10/22/2012) Teresa Fabbro - Fwd: Letter for council From: To: Date: Subject: Attachments: For additions Dean Iorfida Teresa Fabbro 10/22/2012 9:02 AM Fwd: Letter for council urban boundary.doc »> "Frank Fohr" <ffohr�a cogeco.ca> 10/21/2012 4:39 PM »> Hi Dean, Please see attached a letter to council regarding the urban boundary expansion (PD- 2012 -62). Thanks Frank Fohr Page 1 October 21, 2012 5701 MacPherson Cres Niagara Falls, ON L2J 1Z9 To members of Niagara Falls city council, I have read with interest the report to council from the planning department as well as correspondence regarding official plan amendment #106 (PD- 2012 -62). I do not wish to repeat any of the arguments for or against this proposal, but raise one concern that I do not see mentioned anywhere else in the 39 pages of information presented to council, namely the impact on traffic. An urban boundary expansion will obviously have an influence on traffic. In considering this proposal, I feel it is important for council to consider the impact it will have on two traffic concerns. Mountain Road has just received much needed improvements which includes a bicycle lane, islands to divide traffic east of Mewburn Road as well as a roundabout at Mewburn Rd. How will the expansion of the urban boundary impact on the traffic plan for Mountain Rd? My first concern is how the urban expansion will impact the safety of the bicycle lane along Mountain Rd. With increased traffic using the Mountain Rd exit off the QEW as well as increased traffic at the corner of Kalar and Mountain Rd, the safety of bicycles along Mountain Rd will be compromised. When Mountain Rd was chosen as preferable to Thorold Stone Rd as a bicycle route, it was because it was a less busy route through a rural area. Will the expansion of the urban boundary compromise the safety of Mountain Rd as a bicycle route? My second concern is potential traffic congestion at the QEW exit onto Mountain Rd as well as the intersection of Mountain and Kalar Rds. Both of these intersections can at times be dangerous particularly for cars turning left onto Mountain Rd. The roundabout which was constructed at Mountain and Mewburn Rd is a wonderful improvement which allows cars driving north from Mewburn Rd to enter Mountain Rd safely. Roundabouts are an improvement over stoplights which tend to bunch up traffic and increase greenhouse emissions due to idling times waiting for lights to change. If the city chooses to extend the urban boundary to Kalar, what plans are envisioned for the increasingly busy intersections at the QEW and Kalar? Is land available for additional roundabouts at these intersections? Placing stoplights to the west of the Mewburn roundabout would seem to be counter productive, since the roundabout at Mewburn was built by the region as a '`gateway" into the urban area of Niagara Falls. By extending the urban area to Kalar, this roundabout would no longer be a gateway. To restate, I see no discussion of how this proposal would impact traffic in the information presented to council. Is it premature to change the urban boundary without a study of the impact on traffic? Sincerely, Frank Fohr October 18, 2012 NIAGARA FALLS NATURE CLUB P.O. BOX 901, NIAGARA FALLS, ONTARIO, L2E 6V8. Alex Herlovitch, MCIP, RPP Director of Planning, Building & Development City Hall 4310 Queen Street Niagara Falls, Ontario L2E 6X5 Re: Northwest Boundary Expansion, Official Plan Amendment — AM -30/04 Dear Mr. Herlovitch, The Niagara Falls Nature Club opposes the expansion of the city's urban boundary to allow land outside the current boundary to be developed. The Nature Club favours more development within already settled areas of the city. This would make better use of existing roads and sewer and water services. Building within the city core would make transit more available and affordable to residents. Retailers and other commercial venues would then not be as likely to leave the central areas of the city to build anew on the outskirts, leaving neighbourhoods with abandoned buildings and fewer amenities. As Niagara Falls increasingly is home to an aging population in comparison to most municipalities, more centralized neighbourhoods are important for services to be accessible to this population. The increase in residential density would also benefit young Niagara residents who are searching for work or just beginning their working lives. Zoning approvals for adult communities centered on golf courses have already been granted by council. Do we really need another? We also have concerns about the impact of more development on the water quality and the ecology of Shiner's Creek. Sincerely, Joyce Sankey, Past - President Niagara Falls Nature Club jsankey @cogeco.ca REc ':J ED OCT 1 9 2012 F- 2012 -42 Niagarapalls October 23, 2012 REPORT TO: Mayor James M. Diodati and Members of the Municipal Council City of Niagara Falls SUBMITTED BY: Finance Department SUBJECT: F- 2012 -42 Niagara Falls Soccer Club Indoor Facility Update RECOMMENDATION . That Council approve one of the following options: 1) Provide another extension to the Niagara Falls Soccer Club for completing the requirements outlined in 2011, or; 2) Withdraw support. EXECUTIVE SUMMARY The City of Niagara Falls had previously committed to provide funding assistance to the Niagara Falls Soccer Club's proposed indoor soccer facility. This funding included a contribution of $1 million toward the construction costs, the waiving of building and development charge fees of $405,490 and capital improvements of $174,000. As a condition of establishing an agreement with the City, the CAO outlined in the August 15, 2011 report, a series of conditions that the Club must satisfy. At the May 29, 2012 Council meeting, staff had prepared a report that was deferred by Council so as to give the Soccer Club an extension of 90 days to provide the required information. Since that time, staff have worked with the group to resolve the issues. Members of senior staff met with the group this week to clarify the status of the required information. The requirements are listed below with the highlights identifying the current status. 1) Council will advance the $1 million contribution only at such time as funding under the Federal Government P3 application has been determined. In 2011, the application was denied and the City's involvement changed to a grant. 2) Council will require that, in the event the $1 million is provided to the Club, a charge be placed on title for 20 years, requiring a prorated repayment to the City, should the property be sold. This issue will be subject to agreement with prospective financiers. 3) The Club will have sole responsibility for the cost of operations, maintenance of the building and any future capital improvements to the building and parking areas. October 23, 2012 - 2 - F- 2012 -42 The club had their auditor develop a confidential financial forecast for the construction and the operations of the facility. The Club has provided a copy for staff. It is staff's understanding that financial institutions have used this document of the project's viability. 4) The Club will be responsible for the payment of property taxes, subject to a final determination by MPAC related to the Club's charitable status. In respect to the group seeking charity status, this has been denied, however, the group will continue to operate as a non - profit corporation. An estimate of property taxes has been included in the group's financial forecast. 5) The $1 million payment will be advanced to the Club in stages to coincide with the progress of the construction (i.e., 25% at permit issuance, 25% at building being enclosed, 25% at substantial completion, 25% at occupancy). This issue is satisfactory to both the City and the Club. 6) The signing of the agreement and forwarding of any monies is subject to the final approval of all planning and zoning processes required by the Club on this site. The group is finalizing its site plan application. In addition, the group requires comments from the Niagara Escarpment Commission and CN on the project. As a result, at this time, this requirement has not been met. 7) The advance of any funds is subject to the Club providing documentation to the satisfaction of the City that all project financing has been secured and mortgage arrangements are in place. At the time of this writing, the Club has received a commitment letter from a third party financier for the construction financing, however, this document contains a number of conditions, which the group is working towards completing. In 'respect to take out financing, this is not in place at this time. 8) Council requested that the soccer club follow a public tendering process consistent with municipal practices. The group has initiated a public tender for the general contractor that is underway. It is staff's understanding that this process will be completed by the end of October. As has been identified in all reports to date, the City faces significant capital reinvestment requirements for its existing infrastructure. This project would require the use of funding otherwise required to meet these reinvestment needs. Planning for the 2013 Capital Budget will begin this month and resolution of the status of this project is needed for this planning to proceed. At present, this project nor the associated infrastructure improvement requests have not been included in the budget. If the City commits funding, the result would be a reduction of funding available for other re- investments. Council has two options at present: 1) Provide another extension to the group for completing the requirements outlined in 2011 2) Withdraw support. October 23, 2012 BACKGROUND - 3 - F- 2012 -42 This project commenced in June 2011, when the Soccer Club requested that the City partner on the construction of a new indoor facility. A series of staff reports (MW- 2011 -25 and CAO 2011 -04) have been provided to Council outlining the project, clarifying expectations and conditions. Suffice to say, the project has taken longer that expected at the time of the initial request. In May 2012, staff provided report F- 2012 -27 which was subsequently deferred for 90 days so as to provide additional times to meet the commitments outlined in CAO- 2011 -04. Staff of all departments have met as required to assist the group in respect to the project. Staff recognize the significant effort the group has engaged on the project. Staff met on October 16, 2012 with the group's proponents to ascertain the status of the project. While significant progress has been made, a number of conditions of the project are not complete. • A commitment letter for construction financing has been provided with a series of conditions. At present, these conditions are still being resolved. • Take out financing is not in place at this time, although the group has indicated they are working on this. • A public tender for the general contractor has been initiated which is anticipated to be completed by the end of October 2012. • Although not a condition of the City's it was suggested that the group would attain a corporate structure of charity. This would have reduced the property tax cost for the property, however this had been denied. • A Business Plan be submitted for the operation of the facility. The group provided a financial forecast prepared by its accounting firm for both construction and operation supported by commitments from users in the club and other groups. Staff believe the business plan will be vetted by 3' parry financiers who will evaluate the viability of the project. Staff are concerned that the development of a new facility combined with an existing private facility, a year round outdoor artificial field and a new facility proposed in a neighbouring municipality will impact the projections. The soccer group has firmly re- iterated their belief that the required utilization assumed in their financial projections can be attained. FINANCIAL IMPLICATIONS The proposed soccer facility has two implications for the municipality. Firstly, the funding commitment of $1 million towards the construction of the facility and the $174,000 in infrastructure investments are not currently identified in the 2012 Capital Budget. The $1 million contribution would be directed from the approximated $4.4 million allocated for capital projects in the General Purposes Budget. Funding this project will reduce the capital funding available for municipal infrastructure re- investments. As Council October 23, 2012 - 4 - F- 2012 -42 knows, staff face numerous capital reinvestment requirements. In fact, capital reinvestment needs exceed available funding as was evidenced by staff's efforts in compiling a 10 -year needs estimate. This funding commitment compounds these issues. The second implication of this project is the waiving of the City Development Charges. As expressed in the Hemson Consulting DC Peer Review, the City does not have a policy regarding waiving of development charges for community agencies, instead the municipality has had a practice of evaluating organizational requests in a case by case manner. Recent examples of DC exemption by Council include the Boy's and Girl's Club, and the FACS building. In these cases, the municipality waived the fees to the group but funded the DC reserve with an equivalent amount from the Capital /Operating reserve. If Council proceeds with this direction, then this process would be repeated. This project was approved in principle last summer, but since the required information has not been provided, staff have not included it in this year's Capital Budget. LIST OF ATTACHMENTS F- 2012 -27 Niagara Falls Soccer Club Indoor Facility Update (May 29, 2012) CAO- 2011 -04 Niagara Falls Soccer Club Indoor Facility - Project Update (August 15, 2011) MW- 2011 -25 Niagara Falls Soccer Club Indoor Facility Proposal (June 13, 2011) Recommended by: Respectfully submitted: Todd Ha ison, Di'•ctor of Finance Ke'n Todd, Chief Administrative Officer Niagaraaalls REPORT TO: Mayor James M. Diodati and Members of the Municipal Council City of Niagara Falls T MA t DEFER Y COl N 'il SUBMITTED BY: Finance Department F- 2012 -27 May 29, 2012 SUBJECT: F- 2012 -27 Niagara Falls Soccer Club Indoor Facility Update RECOMMENDATION . That the City's funding assistance for the proposed Indoor Soccer Facility be withdrawn. EXECUTIVE SUMMARY The City of Niagara Falls had previously committed to provide funding assistance to the Niagara Falls Soccer Club's proposed indoor soccer facility. This funding included a contribution of $1 million toward the construction costs, the waiving of building and development charge fees of $405,490 and capital improvements of $174,000. As a condition of establishing an agreement with the City, the Club was required to provide documentation to the satisfaction of the City that all project financing has been secured and mortgage arrangements are in place. At the time of this report, this information has not been provided. In addition, the City faces significant capital reinvestment requirements in its existing infrastructure. This project would require the use of funding otherwise required to meet these reinvestment needs. Tonight's agenda includes the 2012 Capital Budget. This project nor the associated infrastructure improvement requests have not been included in the budget. As a result, staff recommend that Council withdraw its proposed funding support. BACKGROUND On June 13, 2011, Council approved report MW- 2011 -25, which outlined the City's collaboration in the proposed facility. In August 2011, Council provided staff with conditions on establishing an agreement for its collaboration with the organization (CAO- 2011-04). In addition, Council requested that the details be provided on the tendering process for the project to ensure its compliance with municipal practices. At present, the documentation requested regarding financing has not met the conditions of the latter report. Specifically, condition 7, requires that the organization provide documentation to the satisfaction of the City that all project financing has been secured and mortgage arrangements are in place. Originally, staff received a discussion paper from a potential financial institution, however, the document included municipal guarantees of the project's debt obligation. Staff advised the group that guarantees were not part of the Council motion. Staff requested that funding documentation be provided without municipal auarantees. To date. this has not been received. May 29, 2012 - 2 - F- 2012 -27 FINANCIAL IMPLICATIONS Municipal staff in many departments have worked with the proponents of the organization in attempt to ensure the project's viability. As Council knows, staff face numerous capital reinvestment requirements. In fact, capital reinvestment needs exceed available funding as was evidenced by staff's efforts in compiling a 10 -year needs estimate. The 2012 Capital Budget proposed this evening is a composite of municipal priorities and project readiness. This project was approved in principle last summer, but since the required funding documentation is not ready, staff did not include it in this year's Capital Budget. LIST OF ATTACHMENTS MW- 2011 -25 Niagara Falls Soccer Club Indoor Facility Proposal CAO- 2011 -04 Niagara Falls Soccer Club Indoor Facility - Project Update Recommended by: Respectfully submitted: Ken Todd, Chief Administrative Officer MeY Todd Harriso , Director .f Finance NiagaraJalls REPORT TO: Mayor James M. Diodati and Members of the Municipal Council City of Niagara Falls, Ontario SUBMITTED BY: Municipal Works Recreation & Culture MW- 2011 -25 June 13, 2011 er.OMM erzc§a2[c n(s) ionts,i to this report ,rphre adopted as 1 City CounrO SUBJECT: MW- 2011 -25 Niagara Falls Soccer Club Indoor Facility Proposal RECOMMENDATION 1. That the City support the Niagara Falls Soccer Club proposal in principle; and, 2. That the City's contribution be limited to in -kind services and technical support; and grants equal to the waiver of fees requested. 3. Staff be directed to submit an application to the P3 Canada Fund and to continue investigating other possible grant and revenue opportunities; and that the Region be requested to waive their applicable development charges fee. EXECUTIVE SUMMARY At its meeting on February 28, 2011, City Council received a presentation from the Niagara Falls Soccer Club (NFSC) outlining their plans to construct a new $4 million dollar indoor soccer facility on lands they have recently acquired on Swayze Drive. Council directed staff to meet with the proponents to clarify the terms of their proposed 50 -50 partnership with the City and to confirm the club's intentions with their current facility located at E.E. Mitchelson Park. Staff met with the proponents to finalize the specifics of the NFSC's request and received a letter which is attached to this report for your reference. The proposed indoor facility has not been identified in the Recreation Strategic Plan nor has any funding been set aside in the five year Capital Forecast for this project. Council is aware of the growing financial challenges of trying to fund those projects which already have been identified as needs in the short term. By advancing this project the City is committing to a project that would be delaying an identified project or if added on prior commitments may result in an increase in debt and /or tax levy increase. Staff respect the efforts of the proponents and their vision but cannot recommend the City make a financial commitment. Instead, we are proposing to provide in -kind services and technical support. Staff are also recommending that we assist the NFSC in obtaining third party funding through the P3 Canada Fund in an effort to address the funding challenges associated with the project. BACKGROUND The Niagara Falls Soccer Club is working towards providing an indoor facility where local soccer players can train, practice and play year round. Their goal is to continue to develop MW- 2011 -25 -2- June 13, 2011 elite local players and to enhance the skill level of new players. Local players currently travel to Stoney Creek and facilities located in New York state to train during the off season. Ontario communities such as Stoney Creek, Oakville and Vaughan have indoor soccer facilities. The facilities range from privately built and owned to municipal private /public partnerships. The Club is in the process of conducting a Capital Campaign to increase awareness of their project and fund raising opportunities. The executive has presented their proposal to local business to promote naming and sponsorship opportunities for the new indoor soccer facility. Local sport organizations including Greater Niagara Baseball Association (GNBA), Niagara Falls Minor Football have confirmed they support and are interested in using space at the new facility as listed in attachment #2. Other local sport organizations Niagara Regional Athletics and Niagara Falls Lightning gymnastics have inquired about the project and future opportunities. ANALYSIS /RATIONALE Playing Field Re- location Request NFSC are currently based at the E.E. Mitchelson Park clubhouse. With the proposed new facility at Swayze Drive, they are requesting that the M.F. Ker Park ball diamonds be switched with E.E. Michelson Park soccer fields, thereby allowing NFSC easier access to soccer fields from their new home base. E.E. Mitchelson Park consists of four soccer pitches and a lit senior pitch /football field shared with St Paul High School. An informal ball diamond is also shared with Notre Dame Public School. A Hydro corridor runs through the center of the park. M.F. Ker Park consists of four senior ball diamonds (one lit) as well as a soccer /football field. GNBA and Mens Fastball are the major users of the ball diamonds. Staff are recommending the fields stay status quo. There is minimal city owned property at E.E. Mitchelson Park, due to the soccer /football field being half on St Paul High School property, as well the informal ball diamond located partially on Notre Dame School property. The Hydro wires located at E. E. Mitchelson would not be conducive to ball play. Even with adequate property, the switching of fields between M.F. Ker and E.E. Mitchelson would not be feasible due to the costs involved to construct all new fields at both parks. There is also limited parking at E.E. Mitchelson Park. The new fields would require a two year re- building time in order to allow the turf time to mature. The current users at both parks would not be able to use the playing fields during this re- construction period. Hydro Corridor Lease The NFSC requested that additional parking be located to the south of their proposed complex on Hydro land and that the City pay the annual license fee if applicable. The City leases Hydro property from Sinnicks Avenue to Swayze Drive for parking at MF Ker Park. The annual license fee is $7,980. Additional parking on the hydro lands north of Swayze will result in an increase in the annual license fee of approximately $2,000. The actual fee would be calculated according to the size of hydro lands that would be used for parking. MW- 2011 -25 .3- June 13, 2011 NFSC Proposal The NFSC proposes to construct a 4287 square metre indoor soccer facility on a 1.3 hectare site located on the north side of Swayze Drive, between Stanley Avenue and Heritage Drive. The site was recently declared surplus by the City and sold by public auction. The site is bounded by an active Canadian National Railway line to the east, and an Ontario Hydro corridor to the west. The northerly third of the site is a wooded valley that must be preserved and buffered. The subject lands are zoned Open Space (OS) in accordance with Zoning By -law No. 79- 200, as amended. While the indoor soccer facility is a permitted use, the proposal requires relief from a number of zoning regulations. For example, the building is proposed within 6 metres of the front lot line, whereas the standard front yard setback is 10 metres. Further, the building is proposed within 6 metres and 9 metres of the side lot lines, whereas interior side yard setbacks of 10 metres are required. Additional departures include a lot coverage of 34 %, whereas 10% is permitted: a building height of 14.63 metres, whereas 10 metres is permitted: and the provision of 65 on -site parking spaces, whereas 107 on -site parking spaces are required. One option to provide the required number of parking spaces would be for the club to enter into a long term lease with Hydro One to provide the balance of the required parking spaces. Entering into a long -term lease to provide the balance of parking in the park across the street is another option, but raises a number of safety issues. A zoning amendment would be required to allow the various departures from the standard provisions of the OS zone and to "marry" the subject site with the land to be used for the balance of the required parking. The City of Niagara Falls Strategic Plan for the Provision of Parks, Recreation, Arts & Culture reviewed the City's outdoor playing fields and indoor facilities to determine future indoor and outdoor facility needs. Facility needs were determined on actual use, anticipated future use and broader activity trends. Outdoor sport facilities determined the following: • City should not provide any additional baseball or softball diamonds • City should provide five (5) additional soccer fields, one for present need and four (4) for future needs (P. Cummings: one (1) soccer and one (1) multi purpose — 2012) • City should provide one (1) football field (MF Ker Park, 2012) • City should provide two (2) rugby fields (one (1) multi purpose — P. Cummings — 2012) • City should accommodate emerging sports interests on outdoor multi - purpose and artificial turf fields • City should consider providing outdoor artificial turf facility examining possible partnership opportunities (Kalar Road Sports Complex, 2008) As stated in the Strategic Plan there is support and demand for outdoor artificial turf fields. The Recreation & Culture department does support the future development of an artificial turf field at E.E. Mitchelson field #1. The cost of the new field could be shared by the Niagara Falls Soccer Club, the Niagara Catholic District School Board (St. Paul) and the City of Niagara Falls. MW- 2011 -25 FINANCIAL IMPLICATIONS -4- June 13, 2011 The total facility cost is approximately 3.8 to 4 million dollars. If the City partnered 50/50 on this facility the contribution would be approximately two million dollars. This project was not budgeted in the 2011 Capital budget and the City does not have the funds to partner nor has it the City's practice to partner on private facilities. If City Council approved funding for this project it would have to borrow the money defer an approved 2011 capital project or commit funding from the 2012 Capital Budget. If significant City dollars are contributed to this project, staff recommend the facility and land become City owned with the facility operation and maintenance the responsibility of the Niagara Falls Soccer Club. The existing Niagara Falls Soccer Club clubhouse is located at E.E. Mitchelson Park on City property and is a City owned building. The E.E. Mitchelson Community Clubhouse and athletic field development was completed in 1994. The City and Niagara Falls Soccer Club each contributed $260,000.00 (50% of costs) towards the project. The City can consider waiving of its development charge fees, site plan processing fees and building permit fees. The Niagara Falls Soccer Club can apply to register their Club to become a registered charity. If the Club has registered charity status or if City owned property they are exempt from paying City property taxes. CITY'S STRATEGIC COMMITMENT The City of Niagara Falls' Strategic Plan for the Provision of Parks, Recreation, Arts and Culture does not support the City building an indoor turf facility. Financial Stability is a strategic priority that directs staff to ensure resources are focused on core City programs and services. To partner with the Niagara Falls Soccer Club and invest approximately two million in a private recreation facility does not adhere to the City's financial priorities. LIST OF ATTACHMENTS 1. Niagara Falls Soccer Club letter 2. Niagara Falls Soccer Club list of User Commitments Recommended by: Recommended by: Respectfully Submitted by: G.Holman sn Geoff Holman, Director of Municipal Works A .6.°-ItItC6iLe- 1 Kathy Moldenhauer, Director of Recreation and Culture Ken Todd, Chief Administrative Officer Niagarapalls REPORT TO: Mayor James M. Diodati and Members of the Municipal Council City of Niagara Falls SUBMITTED BY: Chief Administrative Officer CAO- 2011 -04 August 15, 2011 SUBJECT: CAO- 2011 -04 Niagara Falls Soccer Club Indoor Facility - Project Update RECOMMENDATION That staff be directed to proceed with the preparation of the Agreement between the Niagara Falls Soccer Club (Club) and the City of Niagara Falls (City), in accordance with the provisions contained in the report. EXECUTIVE SUMMARY At its June 13`h meeting, City Council approved a $1 million contribution to the development of Niagara Falls Soccer Club's proposed soccer facility, along with the waiving of certain municipal fees. At the same meeting, Council endorsed staff making an application to the federal government intake of P3 applications. Council approved contribution to the project in two manners. Firstly, Council approved the waiving of fees associated with the development as well as serving extensions required. These changes are identified as outlined on Appendix "A ". Secondly, Council approved an advance of $1 million during construction. This advance is refundable based on a successful result of the City's P3 application. At the present time, staff has not received notice of whether the application has been approved. It should be noted, that should the application not be approved, the advance would become a grant to the project. Staff has outlined funding options for Council should this materialize. This report provides an update of the status planning and site servicing issues. Staff indicates that a public meeting regarding zoning matters on this project will be necessary later this year. In addition, staff is working with Club officials to complete an agreement for the funding of the facility and the conditions regarding the advancement of construction financing. Council's consideration of this agreement will be provided in conjunction with the planning application; however, the following are the details that will formulate the basis of the agreement. 1) Council will advance the $1 million contribution only at such time as funding under the Federal Government P3 application has been determined. 2) Council will require that, in the event the $1 million is provided to the Club, a charge be placed on title for 20 years, requiring a prorated repayment to the City, should the property be sold. August 15, 2011 - 2 - CAO- 2011 -04 3) The Club will have sole responsibility for total the cost of operations, maintenance of the building and any future capital improvements to the building and parking areas. 4) The Club will be responsible for the payment of property taxes, subject to a final determination by MPAC related to the Club's charitable status. 5) The $1 million payment will be advanced to the Club in stages to coincide with the progress of the construction (i.e., 25% at permit issuance, 25% at building being enclosed, 25% at substantial completion, 25% at occupancy). 6. The signing of the agreement and forwarding of any monies is subject to the final approval of all planning and zoning processes required by the Club on this site. 7 The advance of any funds is subject to the Club providing documentation to the satisfaction of the City that all project financing has been secured and mortgage arrangements are in place. BACKGROUND This report is provided to Council as an update of the project status of the Niagara Falls Soccer Club Indoor Facility. Since Council approved a City contribution of a $1 million advance in conjunction with the waiving of certain fees, staff has been meeting with officials of the Club to ensure the project progresses. Staff has applied for a P3 grant under the Federal Infrastructure Program and the success of that application is not known at this time. It is anticipated that the decision on this application will be known later in the year. Staff in various departments has contributed to this report. The original staff report, MW- 2011 -25 has been attached. ANALYSIS /RATIONALE Staff from various departments is involved in this project. This section updates Council on each area. Planning The final application form for rezoning has been submitted by Niagara Falls Soccer Club. The application will address a reduction from prescribed building setbacks and to accommodate off -site parking. Planning, Building and Development has requested further revisions to the preliminary site drawing necessary to accompany the zoning amendment application. The revisions should address a need for a further 37 parking spaces (to meet prescribed parking ratios) and a shift in the location of the westerly driveway. The addition of 37 parking spaces will necessitate a larger land area within Ker Park which could affect the outfield of the ball diamonds and will necessitate the cutting of some trees (removal of trees could be met by public opposition and will not be known until the public meeting). A traffic study to support the rezoning is yet to be submitted. A tree survey has been submitted to address the woodlot at the north end of the soccer club property; Planning is waiting for the Conservation Authority to confirm whether this study addresses the NPCA interests or whether further information (scoped study) is necessary. Drawings to complete the Site Plan Application process showing turning movements for garbage trucks have not yet been received; the landscape plan for the site plan application has been promised for a later date and will be needed in order to complete the processing of this application. August 15, 2011 - 3 - CAO- 2011 -04 While it is recognized, everyone is working within a compressed time frame for processing, Planning will still require approximately three (3) weeks to schedule and hold a neighbourhood meeting with the public and a further five (5) weeks to give statutory notice of the Public Meeting before City Council, secure the comments of all agencies and departments and prepare a report. An early October Council date would be difficult to achieve given the outstanding matters mentioned. Recreation & Culture The Club is currently based at the E.E. Mitchelson Park clubhouse. With the proposed new facility at Swayze Drive, they are requesting that the M.F. Ker Park ball diamonds be switched with E.E. Mitchelson Park soccer fields, thereby allowing the Club easier access to soccer fields from their new home base. E.E. Mitchelson Park consists of four soccer pitches and a lit senior pitch /football field shared with St Paul High School. An informal ball diamond is also shared with Notre Dame Public School. A Hydro corridor runs through the centre of the park. M.F. Ker Park consists of four senior ball diamonds (one lit) as well as a soccer /football field. GNBA and Mens Fastball are the major users of the ball diamonds. Staff is recommending the fields stay status quo. There is minimal city -owned property at E.E. Mitchelson Park, due to the soccer /football field being half on St Paul High School property, as well the informal ball diamond located partially on Notre Dame School property. The Hydro wires located at E.E. Mitchelson would not be conducive to ball play. Even with adequate property, the switching of fields between M.F. Ker and E.E. Mitchelson would not be feasible due to the costs involved to construct all new fields at both parks. There is also limited parking at E.E. Mitchelson Park. The new fields would require a two - year rebuilding time in order to allow the turf time to mature. The current users at both parks would not be able to use the playing fields during this reconstructing period. Municipal Works The detailed concerns from a Municipal Works and Parks perspective are being dealt with through the Site Plan Review process. Staff is currently reviewing the preliminary proponent submission of the Site Plan, Site Grading and Servicing Plan, and Site Lighting Plan. Their detailed comments with respect to the review will be forthcoming. In general, the following items have been identified as considerations with respect to the proposed development: 1. The proposed use of and modifications to the existing adjacent to the Ker Park Parking Lot for off -site parking purposes must be assessed to determine the potential impacts on operations at the Ker Park Ball Diamonds. Also significant improvements to the parking lot would be needed to address condition, lighting, safety, access, drainage, and pedestrian and vehicle movement to and from the proposed facility. Responsibility for Winter Maintenance of the improved parking lot will be the responsibility of the Club, as it is currently closed during the winter months. The capital costs of the lighting and parking lot and the responsibility of operational costs will be determined in a future agreement with the Club. August 15, 2011 - 4 - CAO- 2011 -04 2. In terms of servicing requirements, there will be a requirement to extend some existing municipal servicing along Swayze Drive to the proposed development. The existing watermain will need to be extended across the frontage, along with provision of a new sidewalk and streetlighting enhancements. FINANCIAL /STAFFING /LEGAL IMPLICATIONS On June 13, 2011, Council approved contributions to this project in two areas. First, Council approved waiving of applicable fees, including City development charges along with site servicing charges normally charged in projects of this nature. Staff has worked with the Club officials and has determined that the costs amount to an estimated $579,490. The various charges are listed in Appendix A. It should be noted that the waiving of the Regional development charges is a decision of Regional Council and that soccer club officials will be petitioning the Region in this regard. The second area of contribution was a $1 million payment by the City to the Niagara Falls Soccer Club for the construction of the facility should the P3 application not be approved by the Federal Government. This advance will coincide with an application by the City to the Federal Stimulus Initiative (P3). If the application is successful, the City's contribution would be limited to the forfeiture of applicable fees and charges listed in Appendix A. If, however, the application is not successful, the advance of $1 million would be considered a grant to the project. Once the status of the application is known, staff will report to Council and seek direction on the funding source. The options in funding include three options: i) debenture issue ii) an increase in the 2012 General Purposes Budget contribution to capital of $1 million to $5.9 million from $4.9 million iii) the use of the capital /operating reserve for the full amount Staff will recommend to Council the optimal funding source once a decision on the P3 application is received and when Council has considered its 10 -year Capital Needs Plan. Staff has met with Club officials and has received 2008 -2010 audited Financial Statements, a project construction budget, a projected 2012 operating income statement for the proposed facility and an indication from officials that construction financing and long term financing of the facility is being finalized with its lending institution. It is understood by the group that property taxes would be charged on the facility unless the group was to receive exempt status by MPAC under the applicable legislation of the Assessment Act of Ontario. Soccer Club Officials have indicated they are awaiting confirmation from CRA on the club's charitable status. Finally, Club officials understand that a formal agreement with the City is required to clarify the advancement of money, including timing through construction. Likewise, it is understood that should the City's P3 application not be approved and the City's $1 million advance becomes a grant, that the City would require a lien on title for this amount for an agreed term similar to other projects, notably the Boy's and Girl's Club. Staff will advise as information is received. August 15, 2011 - 5 - CAO- 2011 -04 CITY'S STRATEGIC COMMITMENT The investment in this facility was not identified in the Recreation Master Plan. However, this investment will increase the availability of indoor soccer fields, for users in the community. LIST OF ATTACHMENTS 1. Appendix A - List of fees and charges waived 2. Report MW- 2011 -25 Niagara Falls Soccer Club Facility Proposal Respectfully submitted: Ken Todd, Chief Administrative Officer