REQUEST FOR DECISION
DATE: December 5, 2022 Report No. FIN-22-016
TO: Dan Horan, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:
Title
Business Façade Improvement Program
End
RECOMMENDATION:
Recommendation
That Council approve the Business Façade Improvement Program Guidelines and Application as outlined in Attachment 1 of Staff Report FIN-22-016.
Body
RELEVANT POLICY:
Community Charter S25
STRATEGIC RELEVANCE:
Build and Enhance Partnerships
Resilient and Diverse Economic Environment
BACKGROUND:
As a potential alternative to the Revitalization Tax Exemption Bylaw, Council expressed interest in creating a business façade improvement program. These types of programs, currently in place in other municipalities, offer incentives to help improve the ‘curb appeal’ of the community. Such a program could provide immediate and substantial visual impacts through improvements such as exterior painting, door and window alterations, or awning installations. Any implementation of such a program would represent a shift in approach to revitalization and would require the involvement of external resources.
Section 25 of the Community Charter states that Councils must not provide a grant, benefit, advantage, or other form of assistance to a business. While this legislation is applicable to all municipalities, there is a potential way to offer an improvement program and remain in compliance. While these programs exist in other jurisdictions, they do so through utilization of partnerships with community not-for-profit organizations which take a lead role with tasks such as application adjudication and payment administration.
Following the May 9, 2022 Committee of the Whole meeting, staff discussed the concept of an improvement program with an Esquimalt Chamber of Commerce representative and explored whether it would agree to partner with the Township. During that meeting, they were advised of the administrative requirements including the acceptance, review, and adjudication of applications as well as the assessment of completed projects, and the approval of payments. They expressed a willingness to fulfill this role with the shared vision of promoting business space revitalization within the Township.
ISSUES:
1. Rationale for Selected Option
When reviewing façade improvement programs that have been established in other municipalities, several common components were identified. Follow up discussions were then held with those individuals involved with coordinating and administering the programs. Based on this information and direction provided at Committee of the Whole meetings around topics such as applicant eligibility, financial and program administration and project types, a façade improvement program has been created for the Township.
Eligible Applicants
To participate in the program, applicants must (i) be located in a building within the Township boundaries which contains an operating business, (ii) be in compliance with all Township taxes, fees and permits, and (iii) have not received a previous grant under the improvement program. While the program allows for applications from business owners who are not the property owners, it does require the property owner to provide their written approval as part of any application.
While the Committee of the Whole expressed interest in prioritizing business properties along Esquimalt Road, the proposed program allows for an application by any business property in the Township. Allowing wider participation could result in increased participation by allowing interested businesses to participate without having to wait simply based on their location.
Eligible Projects
Existing improvement programs typically focus on funding the renovation, restoration or redesign of building facades and storefronts. The program outlines a list of eligible improvements including permanent features such as signage, awnings, lighting, windows, and exterior surfaces and details. Within each improvement project, there are various costs including direct labour, contractor fees, tool/equipment rental and project related materials and supplies and the program document discusses cost eligibility. In addition to defining the eligible projects and costs, a minimum project cost has been established to increase the likely impact of any potential project.
Financial Administration
To be eligible for funding, approved applicants must confirm completion and provide evidence of all costs incurred prior to December 31 each year. Payment of project costs are the responsibility of the applicant, but potential reimbursement could be available based on up to 50% of the total eligible costs and a maximum amount of $5,000 per location. These parameters have been established with the intention of providing an incentive while also allowing for a greater number of projects.
Architect
With a focus on achieving a level of consistency across all projects, the program requires each approved applicant to work with an architect prior to project commencement. These services, provided at no cost to the applicant, will involve consultation and the generation of a rendering based on their project plan and budget. An annual payment will be made to the contracted architect based on a percentage of the total project improvement costs during the year. With the Township offering to pay for architecture costs, any applicant accessing these services but not completing their project in accordance with the program, will be responsible for full cost reimbursement to the Township.
Program Administration
The Township’s involvement would be limited to program development and marketing as well as an initial compliance review of all applications. With the Chamber accepting the administrative role, they would be responsible for the approval of applications and the issuance of payments. While the Township would issue a payment to the Chamber for the approved amount related to funding completed projects, it would also issue a separate payment as compensation for their role. This payment would be made at the end of each year and would be calculated based on a percentage of the total funding allocated.
Funding for this program would be established similarly to the local grants account with an annual amount included in the financial plan. The established amount will be based on Council direction and will need to be sufficient to pay for approved projects as well as the fees associated with third party administration and architectural services.
2. Organizational Implications
With the creation of the program, staff involvement will consist of time spent performing an initial review of all applications to ensure they comply with all program conditions. This review will also allow for the identification of projects which may potentially require a permit and would allow staff to ensure that process is initiated in a timely manner after approval.
3. Financial Implications
Each year the program is operational, Council will need to determine the amount to be included in the financial plan to fund program costs including architecture and Chamber of Commerce fees. As this represents an operating cost in the financial plan, any annual amount allocated for this program would require taxation each year to fund the expenditures.
4. Sustainability & Environmental Implications
There are no sustainability or environmental implications of this decision.
5. Communication & Engagement
Upon approval, staff will work to identify marketing opportunities for the program including on social media, the Township’s website and in a future issue of the Current. As well, it is anticipated that the Chamber of Commerce will advise its members of the program and all relevant details to encourage participation.
ALTERNATIVES:
1. That Council approve the Business Façade Improvement Program as outlined in Attachment 1 of Staff Report FIN-22-016.
2. That Council amend the Business Façade Improvement Program and approve as amended.
3. That Council provide additional direction to staff on the Business Façade Improvement Program.