After a 5 ½ month hiatus the City of Ottawa’s Brownfields Redevelopment Program is back in business, effective May 13, 2010. The only significant change from the previous Brownfields Policy, relates to a reduction in infrastructure costs. Henceforth, no coverage will be afforded for offsite infrastructure and onsite infrastructure will be restricted to 50% of the cost.
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This is the first change in the City’s program since its implementation over 3 years ago. The policy preserves the idea of priority and non-priority areas within the City, for reductions in development charges otherwise payable, as part of the grant program towards eligible costs. The range of costs remains broad; the concept allows the developer to recoup 50% of eligible costs through grants, firstly as against building permit charges or development charges, then up to a maximum of ten years as a reduction of taxes that otherwise would be payable. This tax grant is transferrable in the event of a sale of property. Applications must be made in advance before the costs are incurred, or eligibility will not be afforded for coverage. All parties interested in developing or re-developing Brownfields lands would be well advised to obtain the necessary information from their consultant, or the City, as up to 50% of all costs incurred in diagnosing and remediating a contaminated site can be recovered by virtue of the grant program.
How are the “Grants” paid?
In appropriate cases, 50% of eligible costs are covered by the program. 30% of those costs may be claimed as a grant in the first instance in appropriate cases, for the building fee permit. Subsequently, grants as against development charges may be obtained, and the amount varies , depending on whether the property is located within the priority or non-priority area. The balance of the grant is taken as a year by year reduction, in the taxes otherwise payable until the grant is paid in full.
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Commentary
The City’s new Brownfields policy is in line with that of many Ontario Municipalities in allowing a wide range of costs, except offsite infrastructure, which is debatable as it relates to the remediation of a contaminated site. Parties interested in developing or redeveloping Brownfields lands would be well advised to analyze the substantial benefit that can be obtained from availing themselves of these grants. Often, projects are undertaken with no recourse to the program, resulting in a loss of any substantial assistance, when it is easily available to applicants. The grants are transferrable to a purchaser in the event that the property is sold, and will form an incentive for the purchaser if the transaction is structured in this manner.
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What is Covered?
City of Ottawa Council unanimously approved the new policy on May 12, 2010, and changes will be posted on the City’s website at
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Items Covered
The grant covers 50% of costs incurred over a broad range of remediation activities, such as environmental assessments, site remediation, demolition, LEED compliance, any charges for appropriate environmental insurance and onsite infrastructure, except that the limit is 25% of the costs of such infrastructure.
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Procedure to Take Advantage of Grants
Please note that application and approval must be made before expenditures are made. An application is made to the City of Ottawa on an appropriate Brownfields site, with supporting data. Staff then assess the application and either approve or reject the application. It is expected that no delays, over and above the normal delays experienced, in development in the City of Ottawa are to be experienced by reason only of Brownfields approvals.
Tags: Brownfields, Ottawa, Redevelopment
