The Regina Food Bank (Food Bank) has been actively searching for a new property to expand their services within the community. The Food Bank has entered into a conditional purchase agreement for the building located at 1881 Broad Street and in support of the development planned for that location, would like to lease the City-owned property located across the lane at 1720 12th Avenue. Along with the lease request, the Food Bank is requesting a one-time contribution of $200,000 to assist in the development of the property and seeking a property tax exemption on both properties as well as support to rezone as necessary.
When considering the lease of City-owned property, standard procedure for Administration is to ensure that the property is made publicly available and leased at market value. In this lease, the land is being provided without a public offering and at less than market value, which requires City Council approval. It is recommended that City Council approve the City entering into a lease agreement with the Regina Food Bank for this property as well as approve the one-time contribution consistent with the terms set out on this report.
Financial Impacts
The current estimated market value of the lease area if it were non-contaminated is approximately $70,000 annually. The proposed agreement would provide a $1 lease to the Food Bank, for a period of 10 years with two options to renew for additional periods of 5 years each. The Food Bank would be responsible for the maintenance and operation of the property. The Food Bank would be responsible for all property tax assessed on the property; however, they have applied for a tax-exemption under the 2023 Community Non-Profit Tax Exemption Policy for both 1881 Broad Street and 1720 12th Avenue, that if approved would become effective on the possession date of each property.
The recommended one-time contribution would be split between $100,000 grant funded from the Community Investment Grants Program (CIGP) Reserve and up to $100,000 of in-kind support funded from the Land Development Reserve to pave the lot.
The CIGP reserve is used to support and partner with community non-profit organizations to deliver programs, projects and services that align with Council priorities and community needs. The CIGP reserve has three sub-reserves, with the Community Investments Grants (Executive Committee) sub-reserve, with an uncommitted balance of $230,000, being the recommended funding source for the $100,000 grant, reducing the sub-reserve balance to $130,000. An allocation of funding from this reserve to support the Regina Food Bank’s proposal would align with the purposes of this reserve. While the Land Development Reserve is currently in a negative balance of $34 million, the Land Development Reserve is the appropriate funding source as this work results in an improvement to City owned land that will allow it to be utilized as opposed to sitting vacant. Administration will be undertaking a detailed analysis of this reserve in 2023 with a report to Council as over the long-term it is expected to return to a positive balance as returns on land development replenish this reserve.
Policy/Strategic Impacts
Food security is something that more and more people are struggling with. Foodbanks have recorded record numbers of families and individuals utilizing their services over the past few years. The Official Community Plan: Section D11, Goal 2 promotes the collaboration and partnerships with other organizations to increase access to healthy, diverse and affordable food sources. Goal 4 – Vulnerable and Marginalized Populations also speaks to working towards securing access to basic needs including food for the most vulnerable individuals within our community by coordinating the delivery of the services. Additionally, Community Safety and Well-being is one of the City’s five Strategic Priorities. Its goal is “We create a healthier and more inclusive community.”
Environmental Impacts
Shortly after acquisition of the property in 1999, the City completed an environmental assessment on the property and discovered the existence of environmental contamination. The property has since sat vacant and undeveloped due to the anticipated remediation costs. As part of the property development, the following considerations will be made to address environmental concerns:
· The City will require that the entire surface of the property be paved and not allow for any disturbance of the subsurface soils.
· The drive-through buildings will be required to be portable, freestanding structures that do not require anchoring to the surface of the ground.
· There will be no food growth allowed on the property, only decorative plants will be allowed.
The report recommendations facilitate a development on City property. The proposed development contributes to additional greenhouse gas (GHG) emissions in two ways. First, the production of building materials and the construction process itself are both energy intensive and generate emissions. Second, drive-through establishments are known to contribute to the amount of vehicle idling in communities which increases carbon emissions. Differences in wait times and traffic volume make it difficult to quantify exact fuel consumption and greenhouse gas emissions.
Option 1
The City could choose to provide a $200,000 one-time grant to the Food Bank from the CIGP reserve in addition to an in-kind investment of up to $100,000 to pave the lot. Under this option the CIGP reserve would be reduced by an additional $100,000 reducing reserve flexibility to provide funding to other potential grant applicates. Alternatively, the City could require the Food Bank to pave the lot, however, there is value in the City paying the lot as the City will continue to be the land owner and maintaining direct control over the paving of the lot ensures any environmental considerations related to the paving of the lot are managed appropriately.
Option 2
The City could choose to only lease the property to the Food Bank and not provide for the requested financial contribution towards the new development. This is not the recommended option as food security is an issue that is on the rise within the community. Through the financial contribution along with the less than market value lease, the City is helping community partners work towards access to healthy food for all.
Option 3
The City could choose to not lease the land or provide the requested financial contribution to the Food Bank. This is not the recommended option as the Food Bank has identified this property as a prime location for improved service delivery and has recently signed a conditional offer to purchase the adjacent Broad Street property. By not providing the lease of the property or the financial contribution request, the Food Bank will need to re-evaluate the options they have available to them, which will result in diminished service to the most vulnerable individuals within our community.
Public notice is required for City Council to approve the lease of City-owned property without public offering and below market value. Notice regarding this proposal has been advertised in accordance with The Public Notice Policy Bylaw, 2020.
The Food Bank will be informed of any decisions of the Executive Committee and City Council.
The Food Bank has been searching for a new location to expand their services within the community and has recently signed a conditional purchase agreement for the property located at 1881 Broad Street. Attached as Appendix B is the Food Bank’s formal request for $200,000 as one-time funding, a $1 annual lease of 1720 12th Avenue, a tax exemption on both parcels and support from the City of any potential rezoning required. The property on Broad Street will be developed into a community food hub that will advance the Food Bank’s ability to deliver service in an area that has a high demand. The food hub will be a first of its kind in Canada operating more akin to a grocery store and community centre with the space being provided in-kind to dozens of community partners as opposed to a traditional foodbank. The City property will have two freestanding structures on the property that will operate as a food hamper drive thru which will provide easier and quicker access to individuals utilizing their services. The Food Bank intends to place above-ground decorative planters to help beautify the property.
The Food Bank will fund the project based on several streams of funding. The building on which the Food Bank has a conditional purchase agreement with the Government of Saskatchewan was negotiated at below market value. The Food Bank is plans to fund their initiative from the following funding sources; $1 million of their existing funds, $1 million raised from corporate partners which is currently underway; and $1 million from a public fundraising campaign. The Food Bank is also requesting a one-time $200,000 contribution from the City towards the project. The City is proposing to provide up to $100,000 in kind to pave the lot as well as an additional $100,000 cash donation to be utilized by the Food Bank for their development.
The Food Bank has requested a property tax exemption on the property they intend to acquire as well as the property they intend to lease from the City. A request for this exemption has been forwarded to the Assessment and Property Revenue Department and will be included in the 2023 Community Non-Profit Tax Exemption report.
The vacant lot is approximately 15,643 square feet and is in the DCD-D zone. Should Council approve the proposed lease agreement, an application will be brought forward through the Regina Planning Commission to obtain a Contract Zone on the property to facilitate the proposed operation.
The Regina & District Food Bank Inc. is a longstanding community partner of the City of Regina, with a strong history of continuous impact within community. Through programs and services related to food provision, skill development, and connections to community support, the Regina Food Bank continues to be well positioned in our City to respond to growing needs of food insecurity. Their strong alignment to City of Regina priorities and plans has resulted in a long history of funding from the City of Regina’s Community Investment Grant Program, Social Development stream of funding. Specifically, the Regina Food Bank aligns to the priority of ‘Supporting communities to create collaborative strategies to address hunger and food security as well as access to housing,’ and demonstrates this alignment yearly. On any given year, the Regina Food Bank distributes close to 9 million dollars in food and non-food products to the most vulnerable members of our community.
Further to this, the recent City Council-endorsed Community Safety and Well-Being (CSWB) Plan lays out 6 priorities for our city that emerged as a result of comprehensive community consultation. Food Security is one of the six priorities that is outlined in the plan, and is accompanied by various recommendations and action items that should guide collaborative efforts in our city. The Regina Food Bank has been vital in championing the CSWB Plan, not only through their leadership at the Food Security Community Action Table, but most importantly through their commitment to taking action on the recommendations that are presented in the plan. Of relevance to this proposal is their direct alignment to the action item that calls for exploration of opportunities to establish community food hubs that can act as centres for food preparation, distribution, programming, and knowledge development.
Given the environmental concerns on the property, following the paving of the lot the proposed use by the Food Bank is currently seen as the highest and best use of this property. Administration is proposing a 10-year term with two options to renew for an additional 5 years each. The lease will be conditional on receiving all necessary regulatory approvals including the adoption of a Contract Zone at 1720 12th Avenue. Administration is recommending the approval of the lease conditional on receiving the necessary planning approvals.
The recommendation contained in this report requires City Council approval.
Respectfully Submitted, Respectfully Submitted,
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