DATE:· TITLE: r-f:A.O. March 29, 2010 A·

THE CITY OF k;._•.;§!1 City-Owned Employment Lands Strategy CS-ED201 0-017

REPORT:

Waterloo WARD: PREPARED BY:

Marlene Coffey

FILE: DEPARTMENT: Corporate Services

ATTACHMENTS: CLEARANCE: App. A- Best Practices in Higher Density CMT: Apri121, 2010

Employment Lands FSP: May 10,2010 App. B- Employment Lands Implementation COW:

Plan for City-owned Land COUNCIL:

RECOMMENDAT/ONS:

That Council receive Report CS-ED2010-017 as information and direct staff to provide a further report with recommendations in June, 2010.

EXECUTIVE SUMMARY:

The City of Waterloo currently holds a number of properties designated Industrial, which are being held for future employment purposes through the eventual sale of city-owried employment land. The Employment Lands Strategy will form the template from which Council can discuss criteria for Employment Land decision making, and ultimately make decisions specific to the Industrial Land Account (ILA), Industrial Land Sales Policy, and the eventual development and sale of City-Owned Employment Lands.

In 2009 the City secured the services of Coldwell Banker Peter Benninger Realty, to complete an Employment Lands Strategy for the City of Waterloo. The task consisted of two key documents:

A. Best Practices in Higher Density Employment Lands (Appendix A); and B. Employment Lands Implementation Plan for City-owned Land (Appendix B).

'The two documents, in combination', form the City-Owned Employment Lands Strategy. Part A is intended to be a broadly scoped document identifying best practices in higher density employment,

.

using international and local examples. The best practices are transferable themes that could be used

Other Date

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by the City as a guide for City-Owned Employment Lands - or by developers - on privately held lands. This document could also be used as a marketing tool for investment attraction and developer inspiration. Part B is the tactical document, which outlines the implementation plan for bringing City­Owned Employment Lands to market. The content includes a market assessment, implementation factors (including planning framework, development roles, marketing opportunities) and ultimately makes recommendations for implementation.

BACKGROUND:

Council's Strategic Plan, 2007-2010, identifies Economic Vitality as one of the City's five key areas, which includes the strategic imperatives to complete and implement an Economic Development Strategy and Employment Lands Strategy. ·

In 2007/2008, the City completed a Market Analysis, Infrastructure Assessment, Gap Analysis, and Economic Development Strategy. A key issue which has emerged for the City of Waterloo - is the limited supply of Industrial Land (Employment Land) - and the City's need to satisfy market demand for location-sensitive new investment. The City of Waterloo has, since the 1980's, provided the local business community with an available supply of affordable industrial land which has helped to fuel growth. However, despite this history and given Waterloo's location in one of the fastest growing regions in the country, the City has not had any industrial land on the market for several years. Stakeholder consultations during the development of the Economic Development Strategy, identified the issue of limited supply of industrial land as a concern. This limited supply has affected the City's ability to provide internal growth opportunities. It has also hampered Canada's Technology Triangle's (CTT) activities when promoting the city for external and foreign investment. The use of the industrial land holdings will be a key issue as the diminishing supply of land requires good land use planning, higher density uses, and appropriate servicing. The City of Waterloo has roughly 150 acres of industrial land holdings which are currently not serviced or for sale, and represents approximately half of all vacant industrial land inventory within the community at large.

The City furthered the Economic Development Strategy by engaging in a two-part process to firstly, target research on Best Practices for Higher Density Employment Land. Secondly, the City plans to apply those best practices and ensure delivery of suitable employment land though an Employment Lands Implementation Plan. The two documents together are the Employment Lands Strategy for City-. owned land and will assist the City in proViding for business retention, expansion,.and attraction· opportunities.

CITY-OWNED EMPLOYMENT LAND STRATEGY:

Part A - Best Practices in Higher Density Employment Lands

Project Description:

The project included research that identifies best practices where land is maximized for the use of high value-added employment. Eight examples, some international, demonstrate higher density employment land use that is transferable into the Waterloo context. The project includes examples of good land use planning, urban design, building design and layout, programming within the building, and examples of transportation networking (parking/transit).

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Context

The Province of Ontario, through the Places to Grow legislation, and supported by the Region of Waterloo's Growth Management Strategy, target minimum densities on green field and redevelopment lands within the existing urban boundaries. In order to maximize opportunities and comply with legislative requirements, the City of Waterloo needs to determine best practices for the development of its remaining 150 acres (60.7 Hectares) of industrial land.

Determining how others have applied high density requirements to the development of industrial land will assist the City in developing long term policies for land use, land pricing and marketing initiatives. This work will provide opportunity for local growth and support CTT in their efforts in external attraction.

Deliverables

o Eight good examples of employment land use intensification o Examples that provide transferable options (relative to comparable property size, infrastructure,

resources) to Waterloo context o Description of Implementation Factors and Considerations o List of Action Steps for Implementation o Designs with Full Description of land uses and complete with visuals

Part B - Employment Lands Implementation Plan for City-owned Land

Project Description

The project involved a Market Assessment that identifies development opportunity based on investment inquiries and capacity to absorb investment. This was a pure supply and demand exercise so as to understand development inquiries and investment opportunities and match that demand to appropriate servicing and implementation of saleable Industrial Land.

The EmploymentLands Implementation Plan for City-owned Land is the implementation document that itemizes the suggested planning framework, lot sizes to meet rieeds of investors, servicing of the lots (roads, sidewalks, transit locations), release of Jan<;! in terms of project timing and marketing. The strategy includes implementable best practices identified in the Best Practices in Higher Density Employment Lands portion of the project.

Deliverable&

o Market Assessment o understand market demand - inquiries are being received in regioh/city, gaps analysis o capacity to absorb Investment Opportunities -availability/supply

o Employment Lands Implementation Plan for City-owned Land o strategy for implementation - planning framework, zoning & by-laws, lot sizes, servicing

requirements, project timing & marketing o apply best practices

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OUTCOMES AND RECOMMENDATIONS

Upon review of some best practices for higher density employment lands, 10 key characteristics describe successful employment land developments, including:

• Character • Walkability • Incubation and Entrepreneurship Support • Access to Talented Workforce • Focus on Particular Niche Area • Increased Environmental Sustainability • Transit-Friendly • Flexibility to Accommodate Growth and Change • Access to Amenities • Safety

Some emerging trends include: • Eco-lndustrial Parks • LEED for Neighbourhood Development • "Creative Class" Incubation

The Market Assessment summarizes that: • Demand for employment land in the City of Waterloo has been shifting away from the traditional

manufacturing industrial sector to the office sector. • Building permit data from the past 5 years highlight the predominance of office and post

secondarY institutional activity, more specifically RIM and Uotw. • The University of Waterloo Research +Technology Park has been a strong contributor to new

construction activity. • The majority of private and public land sales are less than 5 acres (2 Hectares) in size; • Regional policy and practical considerations are directing traditional users requiring large land

tracts to other areas of the Region. • The combination of Provincial, Regional and City policies encouraging intensification, the small

supply of land in Waterloo and the primarY market demand being office users, all work together to create a situation where demand and supply are complementarY. .

• . The continued growth of the post-secondarY institutions coupled with the incremental growth of the technology sector will ensure t:ontinued demand for office, laboratorY, research and • advanced manufacturing space in the City of Waterloo. ·

Implementation factors for the City-Owned Employment Lands include the key characteristics as described above, planning policies, consideration for the City's development role, and marketing strategies. A few ideas are presented for the City's consideration that could assist in establishing desired land uses (and densities), including:

• Change current "Industrial" zoning to. "Employment" or "Business Park" zoning • Establish Minimum Density Targets • Adopt new "Form-Based Codes" to help achieve specific urban form • Utilize a Master Planning process to emphasize and encourage desired development

East-Side Lands SummarY of Recommendations: • Complete Master Plan • Complete geotechnical, environmental, and other technical studies

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o Planning and/or studies can be completed in 3-6 months at an estimated cost of $50,000-75,000

o Place on the market in 2010

West-Side Lands Summary of Recommendations: o Complete Columbia Street studies o Complete West-Side land acquisitions (or resolution) o Complete geotechnical, environmental, and other technical studies o ·Convert Lands to Absolute Title o Complete Draft Plan of Subdivision to establish location of proposed collector road and

development blocks o Establish "Employment Lands By-Law" o Complete Master Plan o Infrastructure, planning and development studies, and other necessary steps complete in 3-5

years at an estimated cost of $200,000-250,000 o Preparation of Purchase and Sale documentation and sale of property

WATERLOO ECONOMIC DEVELOPMENT ADVISORY COMMITTEE (WEDC):

On March 23, 2010 the Waterloo Economic Development Advisory Committee (WEDC) reviewed and made the Motion to support the Employment Lands Strategy in principle with emphasis on:

Endorsing the work which has been done to date Preserving development options (including lot sizes, timing/availability, lease/ownership) Ensuring increased densities for employment areas Ensuring that the document be used for promotion and branding Utilizing a master planning process to ensure the vision for employment areas Ensuring development supports principles of environmental sustainability (as per the City of Waterloo's Official Plan and Environmental Strategy) Supporting that the East Side Lands are available first Recommending to move the Employment Land Strategy forward

FINANCIAL:

At the FSP Meeting of December 8, 2008, Council made the following motion, indicating "that staff present a Land Sales Policy for approval by Council prior to the end of March, 2009." The motion was made in the context of the Industrial Land Account and specifically the Industrial Land Interest Policy. The Employment Lands Strategy is the first step toward establishing context and a framework for a Land Sales Policy. The Strategy was delayed due to ongoing land issues and negoti!ltions. The Industrial Land Sales, Price and Procedures Policy will be attached and part of the June report.

Budget implications for implementation, including planning and engineering work, servicing costs and other expenses are budgeted for in the Industrial Land Account (Capital Budget). The West Side Employment Land Servicing is budgeted for $17,173,000, the East Side Employment Lands Servicing is budgeted for $2,678,000. Timing of expenditures within the Capital Budget (2008, 2009, 201 0) will be rolled into the appropriate years (over the next 5-years), as specific recommendations with approvals move forward under Council direction.

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LEGAL CONSIDERATIONS:

The City is currently engaged in negotiations and issues which are confidential in nature. Any parts of the implementation plan specific to parts under negotiation are subject to completed negotiations.

Submi~d by:

Position: Director of Economic Development