Every successful economic development program or process must be dynamic in nature and possess the ability to change in order to accommodate revisions to policy, trends in the market, and to satisfy the needs of the end user of the program (while simultaneously delivering on the expectations of elected representatives). This is why the City of Hamilton's brownfield redevelopment program - the Environmental Remediation and Site Enhancement (ERASE) Community Improvement Plan (CIP) - is now in its third generation.
The original ERASE program commenced in 2001 and was the first brownfield redevelopment program of its kind in Canada. Later expanded in 2005, the program has contributed to a number of success stories. Building on this legacy, Hamilton's Economic Development Office has again refined and expanded efforts towards brownfield redevelopment through the ERASE CIP in light of the new regulatory environment in Ontario (see Cover Story, page 18) and drawing on synergies of other momentum in Hamilton.
Amongst the changes is the introduction of an innovative new financial incentive, the Downtown Hamilton/West Harbourfront Remediation Loan Program. This pilot program has been developed to stimulate residential/commercial development/redevelopment on properties requiring remediation within the city's downtown or the West Harbourfront, as traditional forms of financing remediation are often difficult to secure.
The program will provide financial assistance through a low interest loan equal to 75 per cent of the cost of remediating a property within the defined areas to a maximum of $100,000 per property/project. The loan is to be a "bridge" until such time as the property owner receives their ERASE Redevelopment Grant money (municipal property tax rebate to off-set costs of the environmental remediation of a property).
In essence, applicants will not owe any money back to the city out of their own pocket for the loan. Rather, the loan will be paid back through the future increase in property taxes (that results on property from the redevelopment by assignment of their approved ERASE Redevelopment Grant). Any approved grant monies outstanding to the applicant for their ERASE Redevelopment Grant would then flow back to them as an annual tax grant, up to ten years, after the loan has been paid back in full.
In addition to the new loan program, several other significant changes have been made to existing financial incentive programs for brownfield redevelopment in Hamilton. The city is doubling the incentive for sustainable "green" projects on brownfield lands. Through the ERASE Redevelopment Grant program, the city is cost sharing (50/50) in Leadership in Energy and Environmental Design (LEED) component costs, as per the city's LEED Grant Program, on eligible projects. These eligible costs, which increase depending on the level of LEED certification achieved (e.g., silver, gold or platinum), include: the incremental construction costs (to a maximum), consultation, energy modeling, and certification fees of a redevelopment to achieve LEED certification through the Canadian Green Building Council (CaGBC).
Furthermore, as a result of the amendments to Ontario Reg. 153/04, and the anticipated increase in costs for several facets of redeveloping brownfield sites in Ontario, the city has increased its maximum contribution for the ERASE Study Grant program. The Study Grant program, which provides a matching grant for Phase II and Phase III environmental site assessments, has increased the maximum contribution by an additional $5,000 per study and $5,000 per property.
Brian Morris, Ec.D., is Business Development Consultant, City of Hamilton Economic Development & Real Estate Division, Planning & Economic Development Department. Contact Brian at Brian.Morris@Hamilton.ca