AUGUST 2017 NAIOP

Photo credit: davebloggs007 President’s Message

Welcome to NAIOP’s Government • Advocating for streamlined and City Council has approved changes Affairs Commitee newsletter. Here evidence-based regulations across to the Downtown Parking Strategy you will find important information the planning continuum; and (bringing about an end to cash-in- on government initiatives that affect • Several new City of -led lieu), and introduced the Centre Calgary’s commercial real estate initiatives. City Enterprise District to streamline industry. development approvals. Our Achievements NAIOP’s Government Affairs Furthermore, NAIOP continues to Committee is composed of established Together with other industry groups promote industry interests in other leaders within Calgary’s commercial real including BOMA and BILD Calgary initiatives, including the new Guidelines estate sector, dedicated to improving Region, NAIOP has successfully for Development in Proximity to Rail, conditions for their industry. The advocated for positive changes that the forthcoming City Charters, and committee members volunteer their time benefit our city’s development industry. recent proposed changes to Calgary’s to participate as stakeholders on behalf Urban Design Review process. of NAIOP members to provide feedback The ongoing Industry/City Work Plan on public initiatives. continues to identify improvements to Thank you for your continued support. local planning and regulatory processes In this issue, read about our committee’s which reduce costs and uncertainty, Peter Zorbas work on: while improving communication President, between stakeholders. NAIOP Calgary Chapter • Reviewing urban development [email protected] processes, fees, and timelines; Following successful NAIOP advocacy,

WeAreNAIOP.com AUGUST 2017 1 In this issue

Calgary Industry/City Work Plan 02 Development in Proximity to Rail 05 Health Impact Assessment 07

New Community Growth 03 Update 06 Alberta Strategy Urban Design Review Panel 06 Establish Area Strategy 03 MGA Review and City Charters 08 Industrial Strategy 03 Climate Smart Cities Study 06 Continuous Process 03 New CPC Report Procedure 06 Improvements Corporate Approvals Team EXPO 07 Centre City Non-residential Property Tax 07 Downtown Parking Strategy 04 Accessibility Certification 07 Centre City Levy 04 Centre City Enterprise Area 05 Development Permit Extensions 07

Industry/City Work Plan

The third progress report on the This was a direct result of the 2016 off-site changes to improve the efficiency of Industry/City Work Plan was levy bylaw, which industry representatives Calgary’s planning process. The previous submitted to City Council in supported in exchange for a commitment to six initiatives have been condensed into June 2017, highlighting progress ongoing dialogue on critical issues. four, with corresponding working groups over the previous six months. established under a City of Calgary Several projects, initiatives, and Administration was to collaborate with developer advisory committee. These process improvements have been industry on six key initiatives: establishing current initiatives are: New Community implemented through the Work a developer advisory committee, phasing Growth Strategy, Established Area Strategy, Plan to reduce delays and increase growth/land supply, established area Industrial Strategy, and Continuous Process certainty for industry. strategy, funding growth, process Improvements. Each working group is improvements strategy, and industrial composed of industry representatives, In early 2016, City Council directed strategy. including NAIOP, and members of City Administration to review key land Administration. development challenges and opportunities in Over the past year-and-a-half, the Industry/ partnership with private sector stakeholders. City Work Plan has reviewed and suggested

Photo credit: Uli Harder

WeAreNAIOP.com AUGUST 2017 2 The Established Area Strategy working Acceptance Certification (FAC) processes. New Community group focuses on reducing the costs, Mid-term initiatives include uniting Calgary timelines, and barriers to redevelopment in Economic Development, NAIOP, BILD Growth Strategy established communities. Accomplishments Calgary Region, and other stakeholders to date include greater reporting detail to educate Calgarians on the importance Key initiatives include: reviewing on Centre City Levy funds, an exhaustive of industrial growth and its connection to the Growth Management Overlay inventory of Development Permit-stage lower residential property taxes. Another (GMO) removal process, potentially fees and charges, and a pilot water utility initiative being explored is a tailored levy to allowing Outline Plans to proceed mapping project in a single Calgary reflect lower water and sewage requirements prior to securing infrastructure community (Killarney). The working group in industrial areas, and the ‘double-dip’ for financing, and exploring is moving forward to evaluate the Centre library and recreation centre levies on both infrastructure financing alternatives. City Levy, letters of credit (security) charges home and business owners. and fees, as well as expanding the utility The New Community Growth Strategy pilot project to two more neighbourhoods working group examines appropriate ways in 2017. In addition, the working group to fund and manage new urban growth. This is examining central industrial areas for Continuous Process includes reviewing how the City’s Growth the purposes of increasing light industrial Improvements Management Overlay (GMO) is used in growth. Calgary’s inner city industrial areas relation to Outline Plans and land use are under increasing pressure to redevelop Key initiatives include: changes applications. From industry’s perspective, into non-industrial uses. to the Construction Completion Outline Plans should be allowed to proceed Certificate/Final Acceptance in advance of infrastructure funding. This Certificate process, standardizing could significantly improve planning process Industrial Strategy CPAG comments and conditions, efficiency, given the extended timelines and compiling CPAG staff contact needed to secure financing. City Council will Key initiatives include: monitoring information. be discussing the proposal at their July 31 industrial land supply, and meeting. improving transportation The Continuous Process Improvements infrastructure serving industrial working group examines the entire The working group has also implemented areas. Future work will focus on development process to identify improvements to the GMO removal reviewing sanitary pipe sizes, and enhancements serving both customers and process, as well as criteria for the same. City exploring development levy changes The City. Reducing delays and uncertainty Administration has received evaluated eight to better reflect the lower servicing is a key focus area. A review of the GMO removal proposals from industry. requirements in industrial areas. Construction Completion Certificate/Final Other key initiatives include infrastructure Acceptance Certificate (CCC/FAC) process prioritization (completed in Q4 2016 The Industrial Strategy working group has been completed and improvements are and Q1 2017), and exploring alternative is evaluating ways to improve Calgary’s now being implemented. A standardized land servicing funding arrangements. industrial development process and the city’s library for comments and conditions Funding through front-ending agreements overall competitiveness as an inland port. To has been compiled to provide additional (Construction Finance Agreements) is being inform future work, the working group has clarity to private sector stakeholders. As discouraged. The working group is seeking compiled an industrial land supply report well, a database of CPAG generalists and creative methods to advance development detailing land use and ownership patterns. specialists has been created to ensure ease of where the infrastructure is not currently City Council has also approved funds communication. budgeted for by The City. toward enhancing the Glenmore Trail and 68 Street SE intersection to improve goods movement within the southeast industrial area, as well as enhancements to Airport Established Area Trail and Country Hills Boulevard in the northeast industrial area. Future work will Strategy focus on reviewing sanitary pipe sizes in industrial areas, and moving forward with Key initiatives include: increased the development of a complete industrial reporting transparency for strategy for Calgary. development levy funds, monitoring Development Permit-stage fees and Short-term initiatives include: a simplified levies, and capacity mapping for change of use process, and better water utilities. administration of the Construction Complete Certificate (CCC) and Final Photo credit: Bill Longstaff

WeAreNAIOP.com AUGUST 2017 3 Centre City Downtown Parking Strategy

Downtown office developers will the first time in over 30 years that industry is completed, the remaining cash-in-lieu soon be allowed to build parking has successfully advocated for changes to funds will be exhausted. Existing City- to full Land Use Bylaw ratios. downtown parking regulations. owned parkades will be maintained to honor This is a significant achievement previous parking reductions made under the for development advocates, and a The cash-in-lieu program is being cash-in-lieu program. positive change for industry. concluded. Instead, developers will have the option to either build parking to the These positive developments are a direct City Council has in principle approved full ratios allowed under the Land Use result of continued NAIOP advocacy over changes to the downtown parking policy, Bylaw or to reduce stalls constructed by the last two years, in this case working and directed Administration to bring up to 50% by contributing to a dedicated closely with BOMA Calgary. We thank The forward amendments to the Land Use fund for improving downtown cycling, City of Calgary, all NAIOP members, as Bylaw, Area Redevelopment Plans, and pedestrian, and public realm improvements well as BOMA staff, for their work to bring other relevant policies by Q1 2018. This is Once the City-owned East Village parkade about these changes.

Centre City Levy In response to industry concerns, infrastructure in the Centre City. levy sub-categories, and by budgeted and City Administration has begun actual amounts. The Centre City Levy is reporting on Centre City Levy The 2016 levy amount was $4,710 per metre slated for review in 2017-2018, as part of fund management in greater of a development’s frontage on avenues the Industry/City Work Plan. In this case, detail. NAIOP and other industry (east-west). In total, $2,590,520 was collected NAIOP advocacy has resulted in increased groups welcome this increase in and $4,347,515 was spent this past year. In transparency around one of the many transparency. total, $7,208,972 remains in reserve. Major development fees collected by The City of projects included the 8th and 1st Street SW Calgary. On June 14, the City of Calgary’s SPC on underpass enhancements, and contributions Planning and Urban Development (PUD) towards Calgary’s new Central Library. NAIOP is also advocating for a more received the 2016 Centre City Levy annual Annual reports now include detailed comprehensive review of levies, fees, and report. This levy, in place since 2007, breakdowns of money collected and changes affecting downtown development. includes fees for enhancing pedestrian, spent, including funds spent by project. It is our preliminary view that there is some recreation, transit, utilities, and other Amounts are further disaggregated by overlap.

Photo credit: Bernard Spragg

WeAreNAIOP.com AUGUST 2017 4 Centre City Enterprise District

The approved Centre City Enterprise at their June 14, 2017 meeting. Effective Evaluated Historic Resources and potentially District removes certain permit June 26, 2017 Development Permits are high-impact uses such as liquor stores and requirements in the downtown core. generally no longer required for changes of nightclubs. Chinatown, Eau Claire, and East These amendments to the Land Use use, exterior alterations, and small additions Village are excluded from the Enterprise Bylaw took effect June 26, 2017. within the Commercial Core, Downtown Area due to their residential character and West, and the Beltline community districts. new policy recently established for those Following advocacy by NAIOP members This increases certainty, and reduces leasing neighbourhoods. participating in Calgary Economic transaction timelines in these areas. Development’s Real Estate Advisory A similar program is now being pursued by Committee, City Council approved the Some limited exemptions apply, including NAIOP for the balance of the city, including proposed Centre City Enterprise Area for buildings listed on the Inventory of industrial and suburban office areas.

Development in Proximity to Rail

Over the past three years The City a Baseline Risk Assessment (BRA) for facilitating emergency access to the rail has worked closely with private development in proximity to rail. Using corridor, and optimizing the development sector stakeholders to develop a an empirical approach, the assessment potential of lands in proximity to rail made-in-Calgary policy framework will compile generalized freight risk and consistent with the Municipal Development for development near railways. other engineering data to better understand Plan. Key objectives include protecting Calgary’s risk context. The BRA’s study area public safety and buildings, while is the CP freight corridor extending through The Interim Approach is flexible and will maximizing development potential. the Sunalta, Centre City, and Inglewood/ be updated to respond to findings from the Ramsay communities. Work on the BRA Baseline Risk Assessment. The Interim In response to the 2013 Guidelines for commenced in May, and will continue Approach will be used to guide applications New Development in Proximity to Rail through Q3 2017. until a Rail Policy is adopted by City Council. Operations, released by the Federation of As a separate but parallel process, an Access Canadian Municipalities (“FCM”) and the Once the BRA is complete, a Development Strategy is being prepared in consultation Railway Association of Canada, City Council and Rail Policy will be prepared and with The , Calgary has directed Administration to develop presented to Calgary City Council for Emergency Management Agency (CEMA), policy for development near rail corridors. approval. Until the policy framework is CP Rail and CN Rail. The strategy will completed, an Interim Approach will be identify key locations on public lands which In consultation with development and applied to development applications in must be retained to provide emergency rail rail industry representatives, The City has proximity to rail corridors. Core objectives corridor access. retained Dillon Consulting to conduct include public safety, protecting buildings,

Photo credit: Trains in Calgary

WeAreNAIOP.com AUGUST 2017 5 Photo credit: davebloggs007

Design Review Panel. NAIOP and The City of Calgary is partnering with the several of its members participated and the University Green Line Update as stakeholders. These changes of Leeds to develop scenarios for local would expand the Panel’s scope of greenhouse gas reductions. Results will work, and potentially introduce an include prioritized lists of recommendations On June 26, by a 12-3 vote, for emissions reduction and suggested City Council approved the entire additional source of delay in the development approvals process. implementation strategies. The study’s Green Line alignment and station results will inform an updated municipal locations, from Seton in the south Climate Change Mitigation Plan, and will be to 160th Avenue in the north. NAIOP and other industry stakeholders have been working with The City to improve completed by November 2017. NAIOP, together with BOMA and BILD the Urban Design Review Panel (UDRP) process. Changes are intended to provide Four working groups have been created for Calgary Region supports the complete vision the study: Building and Energy Systems, of the entire line, with extensions as funding collaborative discussion on public realm architecture and urban design best practices. Land Use and Transportation, Waste and permits, including a fully underground Consumption, and Natural Systems and alignment through the downtown area from City Administration is looking to move this Water. Each committee will examine and 16th Street North to Macleod Trail in the make recommendations regarding their Beltline. review to earlier in the development permit process. Industry supports this initiative, subject matter areas. NAIOP has put forward representatives for each working Industry strongly supports the underground however City Administration and council’s Planning and Urban Development (PUD) group. The first engagement sessions were alignment in the Centre City, both in the held on June 13. downtown core and in the Beltline, to committee have also recommended that prevent the division of communities by UDRP comment on Outline Plans. NAIOP and BILD do not support this. We are NAIOP is advocating for a rationale transit infrastructure, maintain active street approach to data collection and climate level activity (including retail/restaurant of the view that the current process for approving Outline Plans is sufficient, and chance scenarios. NAIOP members use uses) and to retain assessed values along leading edge technology on an ongoing basis the route. Alternative surface and elevated that UDRP’s expertise is currently weighted more towards architecture than planning. to reduce environmental footprints. There is configurations would have been severely concern that a prescriptive GHG reduction detrimental to office projects and associated NAIOP and BILD successfully lobbied program could be implemented, harming retail/service space along the proposed 2nd industry with little environmental benefits. Street SW route. council to defer these proposed changes to the UDRP process so that industry can In the Beltline, City Council approved the engage in further consultation. Changes “transition to 10th avenue” at-grade option. to the UDRP process were referred to the Though an underground alignment along SPC on PUD’s July 21 meeting for further New CPC Report 12th Avenue east of MacLeod Trail to the discussion, and were then approved by would have been preferred, the Council at their July 24 meeting. Procedure area is particularly challenging given land ownership patterns, policy reviews underway, City Administration has recently made and the impact of potential high-profile changes to Calgary Planning Commission’s projects in the area. report submission procedure. Changes are designed to increase customer involvement Climate Smart Cities and quality control. Planning application Calgary Study reports must now be completed three weeks prior to the scheduled CPC hearing date. Urban Design Review File Managers are also now required to Building on previous efforts, The circulate draft reports to applicants prior Panel City has commissioned a study on to CPC hearing dates. The changes are a local greenhouse gas emissions direct result of the Continuous Process City Administration undertook a reduction, to inform an updated Improvements initiative of the Industry/ comprehensive review of the Urban emissions reduction plan. City Work Plan, of which NAIOP is part.

WeAreNAIOP.com AUGUST 2017 6 Non-residential Corporate Approvals Development Permit Phased Tax Program Team EXPO Extensions

City Council has approved a The City’s Corporate Approvals City Council has approved extended temporary phased tax program Team continues to demonstrate its Development Permit commencement to reduce 2017 non-residential willingness to adopt a collaborative timelines, in addition to extended property tax increases outside the approach when working with renewal periods. Under Land Use Bylaw Centre City. industry stakeholders. amendments approved by Council on June 12, developers will have up to 6-7 years Due decreased downtown property values, The City of Calgary’s Corporate Approval’s to begin construction (up from 4-5 years) there will be a shift in the non-residential Team hosted a forum at City Hall on under approved permits, and be eligible for property tax burden to parcels outside of February 22. The purpose of the forum two consecutive renewal periods of up to the core. To mitigate the impact of the was to educate and inform those involved two years each. This proposal is a result of resulting increases in tax, City Council has in the approvals process of the initiatives the Industry/City Work Plan’s Continuous proposed a $45 Million program to limit currently underway that will have an impact Process Improvements initiative, of which property tax increases. on how future developments are planned NAIOP is a part. and approved. In NAIOP’s opinion, while this program will serve to mitigate the effect of the shift in tax There were several tables set up with City burden away from the downtown for 2017, staff members showcasing current policy Health Impact the program is not sustainable for the long work as well as process improvement term. It is unlikely that Centre City non- initiatives and other City led projects. The Assessment/ residential property values will increase in result was an interactive session which the near term, and The City cannot continue resulted in productive dialogue between HealthyYYC to defer property tax income. industry participants and City staff. At its May 29 meeting City Council Unless City Council is prepared to address One of the takeaways from this event was approved the Terms of Reference for the imbalance in tax burden borne between a sense that there is a genuine interest and HealthyYYC, a new initiative to explore the non-residential and residential sectors, willingness by the Corporate Approvals how health principles can be integrated into we anticipate that, in the absence of the Team to work with industry more Calgary’s planning and urban development MGA or Charter City legislation allowing collaboratively. NAIOP GAC members systems. A committee composed of The City to allocate tax burden to multiple fully support this initiative and will continue Administration and external stakeholders commercial classes, non-residential to advocate for initiatives that contribute will be created to explore the issue and properties outside the core will ultimately to a more effective and efficient approval develop recommendations. Administration absorb the entire burden of the reduced process. will report back to Council in 2019. downtown assessment base.

NAIOP GAC members will continue to advocate for sound fiscal management with fair and transparent taxation of non- residential properties.

Accessibility Certificate Program

The Rick Hansen Foundation is working to develop an Accessibility Certification program for commercial and institutional building design. The program uses an empirical ranking system to recognize accessible built environments. A pilot project is currently underway in Victoria, BC and the lower mainland. NAIOP has been engaged as a stakeholder to aid in the program’s continued development. Photo credit: davebloggs007

WeAreNAIOP.com AUGUST 2017 7 Photo credit: Marcel Schoenhardt

MGA Amendments and City Charters

Following three rounds of changes scope of off-site levies now includes Edmonton are seeking, or which the to Alberta’s municipal government libraries and recreation centres. Levies may provincial government intends to grant. legislation, the province and the now be charged separately and over time. Based on the province’s City Charters Cities Calgary and Edmonton An enabling framework for City Charters overview document, under discussion is have turned their attention to City has been introduced, as well as taxation tools increased influence over building codes, Charters. Details on the Charters to incentivize brownfield redevelopment. increased flexibility in the subdivision however have yet to be released. Municipalities are now required to clearly process, and expanded authority to regulate identify how plans relate to one another, the form and content of land use bylaws. In recent years there have been many and can now set their own development Changes in any of these areas could changes to Alberta’s municipal government decision-making timelines. These are only result in increased costs for the province’s legislation. Three distinct rounds of some of many changes. development industry, and reduced consultation and legislative change have affordability for end users. occurred, resulting in the Municipal City Charters for Calgary and Edmonton Government Amendment Act (Bill 20) are currently being drafted, to be enacted NAIOP will continue to advocate for in 2015, the Modernized Municipal through regulations. Bill 20 introduced the increased stakeholder involvement in the Government Act (Bill 21) in 2016, and broad framework for City Charters, and City Charter process, and against any finally An Act to Strengthen Municipal includes provisions allowing City Councils initiative that could result in additional Government (Bill 8) in 2017. Regulations to make bylaws modifying or replacing burdens on land development. Once the arising from these legislative changes are prescribed sections of the Municipal proposed Charters have been finalized, currently being drafted, with the second Government Act, or other enactments. there will be a 60-day period for public and tranch of regulations released on July 24. If there is an inconsistency between the industry review and comment. NAIOP will This tranch did not include regulations Charter and the MGA or other statues the inform members once the comment period governing City Charters. Charter would prevail. has begun.

These changes have significant implications Little specific information has been released for Alberta’s development industry. The on the powers the Cities of Calgary and

WeAreNAIOP.com AUGUST 2017 8 Contact Us Government Affairs Committee NAIOP Calgary Chapter NAIOPCalgary.com/ NAIOPCalgary.com Government-Affairs [email protected] Peter Zorbas, President [email protected] Chris Ollenberger, Chair [email protected] Erika Holter Bernie Bayer Executive Director [email protected] [email protected]

Rick Charlton NAIOP Commercial Real Estate [email protected] Development Association 400 - Paul Derksen 1040 7 Avenue SW Calgary, [email protected] Alberta T2P 3G9 Robert Homersham [email protected] James Midwinter [email protected] Events

Richard Morden Save the date for these upcoming [email protected] chapter events. Registration is available at NAIOPCalgary.com/Events. Eileen Stan [email protected] September 28 - Fall Market Update Barry Sullivan November 22 - Calgary Real Estate [email protected] Excellence (REX) Awards December 6 - NAIOP Annual General Meeting

Chris Bernie Rick Ollenberger Bayer Charlton

RPaul RobertRichd James Derksenm HomershamMo Midwinter

Richard Eileen Barry Morden Stan Sullivan

WeAreNAIOP.com AUGUST 2017 9