The extension initiative has been celebrated in the development community. Pictured: St. Catharines City Hall. Photo Credit: City of St. Catharines.
As Canada seeks to emerge from one of the most economically tumultuous periods in our nation’s history, municipalities have contended with a global pandemic, supply-line challenges, labour shortages and inflation woes. These acute challenges have had a direct impact on developers striving to complete both intermediary and longer-term projects. In an attempt to facilitate optimal progress in the building of essential infrastructure, St. Catharines City Council has chosen to grant extensions to community improvement plan (CIP) approved projects.
CIPs provide property owners with financial incentives that can help to mitigate the burden of certain aspects of redevelopment initiatives. CIP agreements require that the projects be completed within three years, while brownfield redevelopment remediation projects must be completed within five years. For extensions to become available, the council had to amend bylaws from 2015 and 2020.
The municipality can now revoke projects in which the owner has not entered an agreement once one year has passed since the city has presented an offer. Council has also empowered the St. Catharines Planning and Building Services Director (or it’s designate) with the ability to approve requested extensions of a length not exceeding two years. Council itself will have to approve any longer requests.
Numerous St. Catharines councillors have been reluctant to enact extensions when the topic has been debated. However, the extenuating circumstances of recent years have led even the most vocal critics to reconsider their views. Bruce Williamson, Councillor for Port Dalhousie, as well as St. Andrew’s Councillor Joe Kushner, voted in favour of the staff recommendation for extension provisions, even though both members have previously expressed significant reservations about this approach.
Carlos Garcia, who also serves as a Port Dalhousie Councillor, voted for the motion but instructed the clerk to record that while he supported the ability of the city to revoke offers, he was not in favour of extensions that exceed a maximum of one year. Garcia’s amendment proposal that would have capped extensions at one year was defeated by the council in an 8-4 vote.
The extension initiative has been celebrated in the development community, where multiple contracting companies will have enhanced access to a more workable timeframe for completing massive and long-standing projects. Examples include a mixed-use development at 16 Lock St. in Port Dalhousie, which is being undertaken by Rankin Construction, as well as an 18-storey high-rise building, which will be located at 57 Carlisle St. downtown, and is being completed by Nickel Developments. While work is well underway on both projects, extension availabilities are expected to help ensure the projects can be completed with maximum quality and efficiency.
St. Catharines Mayor Mat Siscoe reflected on the new availability of extensions amid this unique moment in time.
“The steps taken by St. Catharines Council really came down to an issue of fairness,” Siscoe explained. “We have a number of projects in various states of completion, but agreements that did not take into account the upheaval of the last several years in the building industry.”
“The extensions allow those projects to be completed, and receive the grants that they had been approved for, while giving some flexibility due to market conditions. Ultimately, this will be a win-win for the proponents as well as the residents in our community.”
Now that council has approved CIP extensions, the coming months and years will provide tangible evidence about whether they are an effective tool for increasing productivity and getting big projects done.
Nick Redekop completed his Honours Bachelor of Arts Degree in Labour Studies at Brock University. He has previously served in municipal and federal politics. In his free time, Nick enjoys following sports, taking part in outdoor activities, and reading biographies. Nick resides in Niagara Falls
