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201110 Development MINThe Corporation of the Town of Tillsonburg Economic Development Advisory Committee Meeting November 10, 2020 7:30 a.m. Hybrid Model- Electronic Meeting & 200 Broadway, 2nd Floor Council Chambers MINUTES Present: Lisa Gilvesy, Randy Thornton, Andrew Burns, Cedric Tomico, Collette Takacs, Councillor Gilvesy, Jeff VanRybroeck, Jesse Goossens, Kirby Heckford, Lindsay Morgan-Jacko, Mayor Molnar; Steve Spankers Staff: Kyle Pratt, CAO; Laura Pickersgill, Legislative Services Coordinator; Cephas Panschow, Development Commissioner Regrets: Suzanne Renken Guests: Alex Urbanowicz, Dan Rasokas, Ernie Vidovic, Ian McKenzie, John Gilvesy, Robert Kent Presenters: Ministry of Energy, Northern Development & Mines: Marc Foulon, Director, LDC-ON, Samer Yordi, Team Leader, LDC-ON Ontario Energy Board: Ryan Holder, Manager of Industry Policy & Compliance Brian Hewson, Vice-President, Consumer Protection & Industry Performance 1. Call to Order The meeting was called to order at 7:37 a.m. 2. Adoption of Agenda Resolution #1 Moved by: Randy Thornton Seconded by: Cedric Tomico THAT the Agenda as prepared for the Economic Development Advisory Committee meeting of November 10, 2020, be adopted. Carried 3. Adoption of Previous Minutes Resolution #2 Moved by: Randy Thornton Seconded by: Councillor Gilvesy THAT the Minutes as prepared for the Economic Development Advisory Committee meeting of October 13, 2020, be adopted. Carried 4. Disclosures of Pecuniary Interest and the General Nature Thereof There were no disclosures of pecuniary interest declared. 5. Presentations 5.1 Ontario Energy Board Brian Hewson and Ryan Holder provided an overview on the role of the Ontario Energy Board (OEB). Opportunity was provided to ask questions. It was noted that it is the responsibility of the OEB is to ensure that there is not monopoly by hydro providers. A member asked if there are certain items mandated under the OEB. It was noted that mandatory items would be provided for in the code, such as the distribution code, that customers must be connected in a timely fashion and the types of services that the utilities must provide. It was mentioned that there is flexibility for utilities to decide what equipment to invest in and how it is best to operate that equipment, for example. In summary, it is up to the utility to decide how to best operate using the minimum terms of service established through the OEB. It was noted that the person who is going to benefit from the connection should pay for the connection. Ryan outlined the five basic categories that connections fall into, which include: residential customer, non-residential, all customer classes, expansion, and enhancement. The Economic Evaluation model includes revenues over a 25-year period in estimating the developer’s share of costs. The question was asked as to whether the expansion deposit rebate period should be 25 years as well to match the revenue forecast (instead of the current 5 years). The answer was that a development can be phased in such that the expansion deposits match the phases and reduce the long term liability. A member noted that THI has a split of 90/10 with developers. It was asked that if the developer was going to expand, what funding can the utility require? It was noted that the utility can either ask for the 90% funding up front or they can ask for the 100% expansion deposit, however they are not permitted to take both. The utility is not permitted to end up with more funding then what the overall cost of the project ends up being. If the forecasted revenues do not cover the cost of the project, then the utility must collect at least the amount of the project. A member asked that if a developer has contributed 100% of costs then there is no risk is there? It was noted that the developer would have overpaid as the developer would be paying rates and they should not be paying 100% up front. It was noted that the expansion deposit will be returned to the developer over the first five years of the connection period. It was suggested that if the option exists to go the expansion route versus the capital contribution route that the better option would be to go the expansion route since at least the deposit is returned eventually. It was noted that the options are not mutually exclusive. For example, if project will pay for itself over time then there is no capital contribution required. It was also suggested that if the project won’t pay for itself over the 25 year period then there would be a capital contribution required. It was noted that the amount that the developer pays a third party contractor to complete work would also be the amount confirmed as the capital cost. The question was posed about if a developer has a project with higher end houses that gain more taxes but also produce more energy, how does this bring the maintenance costs down. It was noted that municipal property taxes are the taxes the utility pays to the municipality based on their assets. It was noted that depreciation and interest costs are captured under the maintenance and administrative components of the costs. After the presentation, the members indicated they would like THI to have a debrief meeting as the communication from the OEB doesn’t align with communication from THI. The members would like THI to report back at the next Committee meeting. It was also suggested that a report be developed and go to Council for review and consideration. All of the guests present left the meeting after the presentation. 6. General Business & Reports 6.1 Monthly Projects Update Cephas provided an overview on his monthly project update. It was noted that Council needs to consider stipulations on permitted land uses for a property in Town. It was suggested that these uses are already outlined under the purchase agreement. It was noted that development covenants are registered on title to the property. 6.2 Third Quarter Economic Development & Marketing Activity Summary Cephas will circulate this report to the group after the meeting. 6.3 Criteria for Reviewing Development Applications Cephas will circulate this criteria to the group after the meeting and it will be discussed at a future meeting. 6.4 Tillsonburg Hydro Inc. 6.5 Town Hall Task Force The Town Hall Steering Committee is meeting on November 12, 2020. 6.6 Physician Recruitment & Retention Committee The Committee last met on November 4, 2020. It was noted that there is currently $59,000 left in reserves and that a request for $70,000 has been put into the 2021 budget. If the request is approved and the existing funds remain unused, there will be approximately $129,000 in reserves to use next year. 6.7 Community Strategic Plan Council awarded the RFP to Boulevard Strategy Group and staff will be working with the consultant to move forward through the next steps. 7. Community Organization Updates 7.1 Downtown Business Improvement Association Cedric noted that he will be providing a report with the agenda circulation moving forward. It was noted that the Committee needs to have a discussion and input on the BIA expansion request. Cedric will provide more information for this at a future meeting. 8. 7.2 Tillsonburg District Chamber of Commerce 7.3 Tillsonburg District Real Estate Board 7.3.1 October 2020 Listings & Statistics 9. Round Table The Committee would like to have meetings in-person at the Community Centre. Staff will look into this and report back. Cephas noted that the former International Beams plant has been sold to another manufacturer. It was noted that some offers are being investigated on the lands near Rokeby Road. 10. Next Meeting December 8, 2020 at 7:30 a.m. 11. Adjournment Resolution #4 Moved by: Randy Thornton Seconded by: Kirby Heckford THAT the November 10, 2020 Economic Development Advisory Committee meeting be adjourned at 9:43 a.m. Carried