FINANCE AND ADMINISTRATION COMMITTEE – SEPTEMBER 4, 2018
Jessica Gibson, representing 1080 Architecture, addressed the Committee.
The Committee adopted a resolution to concur in the recommendation contained in the report.
Recommendation #5 does not require City Council approval.
Councillors: Bob Hawkins (Chairperson), Sharron Bryce (teleconference), Jason Mancinelli, and Barbara Young were present during consideration of this report by the Finance and Administration Committee.
The Finance and Administration Committee, at its meeting held on September 4, 2018, considered the following report from the Administration:
1. That a tax exemption for the property located at 3038 - 3060 18th Avenue, being Units 1-8, inclusive, in Condo Plan 78R58518, be approved in an amount equal to the lesser of:
a) Fifty per cent of eligible costs for the work completed as described in the Conservation Plan in Appendix B; or
b) An amount equal to the total property taxes payable on the subject property for 10 years.
2. That the provision of the property tax exemption be subject to the following conditions:
a) Eligibility for the property tax exemption includes the requirement that the property possesses and retains its formal designation as a Municipal Heritage Property in accordance with The Heritage Property Act.
b) The property owner shall submit detailed written documentation of payments made for the actual costs incurred (i.e. itemized invoices and receipts) in the completion of the identified conservation work as described in Appendix B. In the event the actual costs exceed corresponding estimates by more than 10 per cent the property owner shall provide full particulars as to the reason(s) for any cost overrun or portion thereof, if considered not to be reasonably or necessarily incurred for eligible work.
c) The work that is completed and invoices submitted by September 30th each year would be eligible for an exemption the following year for up to 50 per cent of the cost of approved work.
3. That the Executive Director of City Planning & Development or designate be authorized under the tax exemption agreement to make all determinations regarding reimbursements of the costs incurred for work done to the property based on the City’s Heritage Building Rehabilitation Program and the Conservation Plan for the property (Appendix B to this report).
4. That the Executive Director of City Planning and Development or designate be authorized to apply to the Government of Saskatchewan on behalf of the property owner for any exemption of the education portion of the property taxes that is $25,000 or greater in any year during the term of exemption.
5. That this report be forwarded to the September 24, 2018, meeting of City Council for approval.
CONCLUSION
The applicant, 1080 Architecture, Planning + Interiors, on behalf of the unit owners of Leopold Homes Condominium Corporation has requested a property tax exemption under the Heritage Building Rehabilitation Program to assist in recovering costs associated with conserving the building.
The proposed conservation work will ensure the continued existence of this historic place. The tax exemption provided for in the Heritage Incentive Policy has made it feasible for the property owner to conserve this heritage building.
Administration has determined that the conservation work proposed is eligible for assistance under the Heritage Building Rehabilitation Program. A property tax agreement between the property owners and the City will be prepared to secure the City’s interests in ensuring the building is properly conserved and maintained.
BACKGROUND
On September 26, 1983, City Council approved Bylaw No. 7625 designating the property at 3038-3060 18th Avenue as a Municipal Heritage Property.
The Heritage Incentive Policy was approved by City Council on August 24, 2014, (CR14-100). It replaced the Municipal Incentive Policy for the Preservation of Heritage Properties, which was initially adopted in 1991 and amended in 2001. Under the Heritage Incentive Policy the designated properties eligible for assistance include Municipal Heritage Properties, Provincial Heritage Properties and properties within the Victoria Park Heritage Conservation District.
The types of work that may be eligible for assistance are:
a) Professional architectural or engineering services.
b) Façade improvements including conservation of original building elements, cleaning of surfaces and removal of unsympathetic materials.
c) Structural stabilization.
d) Improvements required to meet the National Building Code of Canada or City of Regina bylaw requirements, including the repair or upgrading or mechanical and electrical systems.
e) Improvements to energy efficiency (i.e. windows, insulation).
f) Conservation of significant or rare character-defining interiors or interior elements.
Financial assistance can be provided equivalent to the lesser of:
a) Fifty per cent of eligible work costs, that is, expenses incurred to restore or preserve architecturally significant elements of the building or structure, to extend its effective life, and/or to ensure its structural integrity; or
b) The total property taxes that would otherwise be payable in the 10 years immediately following the approval of the tax exemption by City Council.
Cosmetic improvements, regular maintenance and new additions are not eligible for assistance.
The amount of the property tax exemption, including calculation of any percentage or portion, is determined by the City Assessor. The amount will only apply to the portion of the property containing the building structure or landscape with heritage value pursuant to Section 11(1) of The Heritage Property Act.
In general, property tax exemptions are initiated in the fiscal year following City Council’s approval and are based on the actual value of the completed approved work items. It is noted that no abatement of outstanding or current taxes are eligible for the tax exemption.
DISCUSSION
Henderson Terrace was constructed in 1913 by Charles Gardiner Henderson, a contractor and partner in the firm of R & C.G. Henderson Real Estate. The design of Henderson Terrace was inspired by contemporary English Garden suburb developments, which featured tall, narrow houses connected together in a row with long narrow backyards. These kinds of developments were prominent in England during speculative building booms where developers would try to put as many houses as possible onto one street or plot of land. Henderson Terrace was a part of the building boom in Regina pre-World War I and is located in the Crescents neighbourhood of Regina, which was a part of Thomas Mawson’s original City Beautiful Plan.
Henderson Terrace is of heritage value as it is a landmark within the historic Cathedral Leopold Crescent neighbourhood and the design of the row housing is unique to Regina. The row house development is divided into eight units and features a two-storey red brick building with gambrel roof. For more information about the heritage value, refer to the Bylaw No. 7625 in Appendix C.
Conservation Work
The applicant, 1080 Architecture, Planning + Interiors, on behalf of the unit owners of Leopold Homes Condominium Corporation, has submitted a request for approval to undertake certain alterations to Henderson Terrace, as described in the Conservation Plan attached as Appendix B. Conservation work, which would be eligible for assistance would include the following elements:
· Repair of exterior brick face and stucco and masonry repointing.
· Repair of stucco sills.
· Replace and/or repair windows.
· Wood shake replacement on dormer walls.
· Repair and/or replacement of south porches.
· Reinstating original landscaping.
Administration has determined that all of the above proposed work is eligible for assistance under the policy as this work is required to conserve the character-defining elements of the building’s exterior.
As a designated Municipal Heritage Property, Administration’s role in the evaluation of changes to the building is through issuance of a Heritage Alteration Permit. Administration will ensure that the work that is being incentivized is being done in accordance with the Conservation Plan, which will be attached to the incentive agreement.
Tax Exemption
According to the Heritage Incentive Policy, the application must include financial evidence indicating why the tax exemption is required. The Conservation Plan in Appendix B details the work to be done and provides approximate costs associated with the required conservation work.
The Program provides a tax exemption equal to 50 per cent of the eligible costs for the work described in the Conservation Plan, Appendix B, or an amount equal to 10 years of property taxes, whichever is the lesser. The actual value of the tax exemption will be based on the invoices submitted for the work done.
Based on the cost estimates and financial assistance criteria in the Heritage Building Rehabilitation Program, Administration has determined the owner is eligible for an exemption of fifty per cent of the estimated cost of work.
RECOMMENDATION IMPLICATIONS
Financial Implications
Section 262(4) of The Cities Act limits the term of a tax exemption agreement to not more than five years. However, Section 28(a) of The Heritage Property Act enables City Council to provide tax relief to any person, organization, agency, association or institution with respect to heritage property notwithstanding any provisions of The Cities Act. The Heritage Incentive Policy approved by City Council in August 2014, established a tax exemption for a maximum of 10 years.
The value of the work to be done will qualify for a tax exemption equal to 50 per cent of the value of the approved work. Administration estimates that 10 years of property tax exemption based on a three per cent increase year over year would be approximately $253,265.88. The estimated cost of the work as stated in the Conservation Plan is $418,990.00. Fifty per cent of the estimated cost of the work would be $209,995.00. This adheres to the Heritage Building Rehabilitation Program approved by City Council on August 24, 2014.
The annual property exemption based on estimated 2018 figures is estimated to be $21,449.04 which is distributed as follows:
· Municipal portion: $12,811.32
· Education portion: $7,451.01
· Library portion: $1,186.71
The final value of the tax exemption provided by the City will be based on receipt submissions for actual work completed and actual property taxes.
Environmental Implications
The conservation work proposed will ensure the building continues to be used and maintained. The work will protect the character defining elements of the building and improve the structural integrity of the building.
Policy and/or Strategic Implications
Conservation of Henderson Terrace meets the following policies outline in Part A of Design Regina: The Official Community Plan Bylaw No. 2013-48:
Section D5: Land Use and Built Environment
Goal 6 - Built Form and Urban Design
Build a beautiful Regina through quality design of its neighbourhoods, public spaces and buildings.
7.38 Consider impacts of alterations, development, and/or public realm improvements on or adjacent to an historic place to ensure its heritage value is conserved.
Section D8: Culture
Goal 1 – Support Cultural Development and Cultural Heritage
Enhance quality of life and strengthen community identity and cohesion through supporting cultural development and cultural heritage.
10.1 Build partnerships and work collaboratively with community groups, other levels of government, and the private and voluntary sectors to encourage cultural development opportunities and conserve historic places.
10.4 Protect, conserve and maintain historic places in accordance with the Standards and Guidelines for the Conservation of Historic Places in Canada and any other guidelines adopted by City Council.
10.5 Encourage owners to protect historic places through good stewardship and voluntarily designating their property for listing on the Heritage Property Register.
10.11 Leverage and expand funding, financial incentive programs and other means of support to advance cultural development, cultural resources and conservation of historic places.
The proposal is also consistent with the vision and objectives Regina’s Cultural Plan respecting:
Goal 7.3 – Commemorate and Celebrate the City’s Cultural Heritage
Objectives:
· Demonstrate Leadership through the Management of the Heritage Conservation Program.
· Conserve Cultural Heritage Resources.
Other Implications
None with respect to this report.
Accessibility Implications
None with respect to this report.
COMMUNICATIONS
Heritage Regina and the Architectural Heritage Society of Saskatchewan will receive a copy of this report for information.
The Library Board will be provided with a copy of this report and will be advised of City Council’s decision.
DELEGATED AUTHORITY
Applications for assistance under the Heritage Building Rehabilitation Program must be approved by City Council.
Respectfully submitted,
FINANCE AND ADMINISTRATION COMMITTEE
Ashley Thompson, Secretary