WHEREAS Cash-in-Lieu of Parkland (CIL) funds are collected as the payment of funds equivalent to the value of the amount of land that the City would otherwise have been entitled to require to be conveyed for park purposes as part of a development; and
WHEREAS the City is not meeting its approved parkland target inside the greenbelt, and the Parks and Recreation Masterplan notes that the Downtown Transect is the most underserved area from a parks and facilities perspective, and it is not recommended that CIL be waived or reduced as part report ACS2023-PRE-GEN-0010; and
WHEREAS it would be possible under Exemptions Section 11 (2)(l) of the Parkland Dedication Bylaw for the City to forgo collection of CIL funds as part of a negotiation with the applicant for an alternative public benefit in partnership with the City; and
WHEREAS Ward 14 includes downtown, with the most amount of office vacancies in the city, and the Ward Councillor has indicated support for a pilot that would forgo in part CIL; and
WHEREAS there are transit and economic development benefits to facilitating rapid conversions of office to residential in downtown core to add more supply of housing to meet the City’s Housing Pledge and Housing Accelerator Fund targets;
THEREFORE BE IT RESOLVED that staff be directed to implement a Financial Incentive Pilot Program for Office-to-Residential conversions with the following parameters:
- That Staff be delegated authority, for office to residential conversion projects, to reduce the applicable CIL cap to 8%, allocated from the Ward-specific CIL portion and not City-wide, on the condition that the Building Permit for the project is issued within 6 months from Site Plan Approval (date of issuance of the delegated authority report), with possibility of a singular extension of 3 months;
- That the eligible geographic area of the pilot be limited to Ward 14;
- That the eligibility of the program require the downtown vacancy rate to be above 10% as reported in the latest Ottawa Office market report by Colliers; and
- That the pilot be limited to a period of 2 years; after which it must be re-considered by Council.
BE IT FURTHER RESOLVED that staff convene a meeting of developers and landowners to further explore the potential impact of additional financial incentives, and report back to Planning and Housing Committee in Q1 2024.