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220314 Regular Council Meeting AgendaThe Corporation of the Town of Tillsonburg Council Meeting AGENDA Monday, March 14, 2022 6:00 PM Electronic Meeting 1.Call to Order 2.Closed Session 3.Adoption of Agenda Proposed Resolution #1 Moved By: ________________ Seconded By: ________________ THAT the Agenda as prepared for the Council meeting of March 14, 2022, be approved. 4.Moment of Silence 5.Disclosures of Pecuniary Interest and the General Nature Thereof 6.Adoption of Council Minutes of Previous Meeting Proposed Resolution #2 Moved By: ________________ Seconded By: ________________ THAT the minutes of the Regular Council meeting held on February 28, 2022, be approved 7.Presentations 8.Public Meetings 9.Planning Reports 9.1.Zone Change Application - ZN 7-22-01 – Performance Communities Realty Inc & Lindprop CorpZN 7-22-01 – Performance Communities Realty Inc & Lindprop Corp Proposed Resolution #3 Moved By: ________________ Seconded By: ________________ THAT the Council of the Town of Tillsonburg approves the zone change application submitted by Performance Communities Realty Inc & Lindprop Corporation, for lands legally described as Lot 5, Concession 10 (Dereham), Parts 1-6 of 41R-10049 in the Town of Tillsonburg, to remove the Holding Provision from the lands. 10.Delegations 11.Deputation(s) on Committee Reports 12.COVID-19 13.Information Items 13.1.Oxford County - 2024 Oxford County Water and Wastewater Master Plan 13.2.Oxford County - 2024 Transportation Master Plan 13.3.Long Point Region Conservation Authority - Inventory of Programs and Services under Ontario Regulation 687-21 Proposed Resolution #4 Moved By: ________________ Seconded By: ________________ THAT Council receives the correspondence items from Oxford County dated March 9, 2022 and the correspondence item from Long Point Region Conservation Authority dated February 28, 2022, as information. 14.Staff Reports 14.1.Chief Administrative Officer 14.2.Corporate Services 14.2.1.CS 22-06 Hybrid Work Model Staff Report Proposed Resolution #5 Moved By: ________________ Seconded By: ________________ THAT Council approve the Hybrid Work Model (Policy 6-010). 14.2.2.CS 22-08 Outdoor Patios on Municipal Property Page 2 of 300 Proposed Resolution #6 Moved By: ________________ Seconded By: ________________ THAT a Patio Program on Municipal Property be established in Tillsonburg; AND FURTHER THAT staff be directed to work with the BIA on establishing criteria on patio design standards for those businesses wanting to use municipal property for their patios. 14.3.Economic Development 14.3.1. EDM 22-07 Economic Development Strategy Update Proposed Resolution #7 Moved By: ________________ Seconded By: ________________ THAT the Economic Development Strategy Update be approved in principle in accordance with the recommended prioritization from the Economic Development Advisory Committee and subject to specific items being brought forward as part of the annual Business Plan and Budget process. 14.3.2.EDM 22-08 Oxford County Housing Master Plan – Potential Tillsonburg Sites Proposed Resolution #8 Moved By: ________________ Seconded By: ________________ THAT excess lands at the 31 Earle Street and 45 Hardy Avenue properties and a portion of the Gylveszy Park be included in the Oxford County Housing Master Plan feasibility analysis in support the Town and County’s Affordable and Attainable Housing initiatives. 14.4.Finance 14.5.Fire and Emergency Services 14.6.Operations and Development 14.6.1.OPD 22-04 - Sign Variance - 565 Broadway Proposed Resolution #9 Moved By: ________________ Seconded By: ________________ Page 3 of 300 THAT Council approves the variance to Sign By-Law 3798 to allow for the construction of a two sided 12.54 square metres (135 sq. ft.) x 4.57 metres (15 ft) high monolith sign with an incorporated 2.4 square meter (25.8 sq.ft.) animated LED display located within the Town road allowance, within 72 metres of another animated LED display sign and within 90 metres of a signalized pedestrian crosswalk located at 565 Broadway (PT 10, 41R517) subject to Re/Max Tri-County Realty Inc. entering into an encroachment agreement with the Town. 14.6.2.OPD 22-10 Hangar Land Lease Agreement Taxiway G2-9 Proposed Resolution #10 Moved By: ________________ Seconded By: ________________ THAT Council authorizes the Mayor and the Clerk to sign the attached agreement to terminate the existing lease agreement for Taxiway G1 Lot 6; AND THAT By-law 2021-065 Hangar land lease agreement with Nathan Bain and Emily Crombez for Taxiway G1 Lot 6 be repealed; AND THAT a By-law to execute the Hangar Land Lease Agreement for Taxiway G2 Lot 9 with Civilogistics Incorporated (Nathan Bain and Emily Crombez) be brought forward for Council consideration. 14.6.3.OPD 22-11 Hangar Land Lease Agreement Taxiway G2-8 Proposed Resolution #11 Moved By: ________________ Seconded By: ________________ THAT a By-law to execute the Hangar Land Lease Agreement for Taxiway G2 Lot 8 with 1467246 Ontario Inc. (Geoff Lee) be brought forward for Council consideration. 14.7.Recreation, Culture and Parks 14.7.1.RCP 22-07 Gas Turbine Service Agreement Renewal Proposed Resolution #12 Moved By: ________________ Seconded By: ________________ THAT due to the need for a factory-authorized distributor service provider, and the limited number of qualified providers for co-generation gas turbine units, the purchasing process be waived in accordance with Sec. 6 of the Town’s Purchasing Policy; AND THAT the Mayor and Clerk be authorized to execute a six (6) year Page 4 of 300 service agreement with Vergent Power Inc. of Eden Prairie, Minnesota, in the amount of $172,620 USD, divided equally for each of the next six years, for a comprehensive factory prevention plan for the Gas Turbine Co- Generators at the Tillsonburg Community Centre. 15.New Business 16.Consideration of Committee Minutes 16.1.Committee Minutes Proposed Resolution #13 Moved By: ________________ Seconded By: ________________ THAT Council receives the Affordable and Attainable Housing Committee Minutes of February 23, 2022, the Tillsonburg Airport Advisory Committee Minutes of January 20, 2022 and the Memorial Park Revitalization Advisory Committee Minutes of February 16, 2022, as information. 16.2.Conservation Authority Minutes 16.2.1.220223 Long Point Region Conservation Authority Proposed Resolution #14 Moved By: ________________ Seconded By: ________________ THAT Council receives the Long Point Region Conservation Authority minutes of February 23, 2022, as information. 17.Motions/Notice of Motions 18.Resolutions/Resolutions Resulting from Closed Session 19.By-Laws 19.1.A by-law to amend Zoning By-Law Number 3295, as amended. (ZN 7-22-01) 19.2.A by-law to authorize an agreement for the purpose of receiving funds from the dedicated Gas Tax Funds for Public Transportation Program 19.3.A by-law to enter into an airport hanger land lease with 1467246 Ontario Inc. for Hanger G2-8 19.4.A by-law to enter into an airport hanger land lease with Civilogistics for Hanger G2-9 Page 5 of 300 Proposed Resolution #15 Moved By: ________________ Seconded By: ________________ THAT a by-law to amend Zoning By-Law Number 3295, as amended. (ZN 7-22-01); and A by-law to authorize an agreement for the purpose of receiving funds from the dedicated Gas Tax Funds for Public Transportation Program; and A by-law to enter into an airport hanger land lease with 1467246 Ontario Inc. for Hanger G2-8; and A by-law to enter into an airport hanger land lease with Civilogistics for Hanger G2-9 be read for a first, second, third and final reading and that the Mayor and the Clerk be and are hereby authorized to sign the same, and place the corporate seal thereunto. 20.Confirm Proceedings By-law Proposed Resolution #16 Moved By: ________________ Seconded By: ________________ THAT By-Law 2022-023, to Confirm the Proceedings of the Council meeting held on March 14, 2022, be read for a first, second, third and final reading and that the Mayor and the Clerk be and are hereby authorized to sign the same, and place the corporate seal thereunto. 21.Items of Public Interest Regular Meeting of Council and Planning Meeting March 28, 2022 at 6:00 p.m.• Regular Meeting of Council and Planning Meeting April 19, 2022 at 6:00 p.m.• 22.Adjournment Proposed Resolution #17 Moved By: ________________ Seconded By: ________________ THAT the Council meeting of March 14, 2022 be adjourned at ______ p.m. Page 6 of 300 1 The Corporation of the Town of Tillsonburg Council Meeting MINUTES Monday, February 28, 2022 5:00 PM Electronic Meeting ATTENDANCE: Mayor Molnar Deputy Mayor Beres Councillor Esseltine Councillor Gilvesy Councillor Luciani Councillor Parker Councillor Rosehart Staff: Kyle Pratt, Chief Administrative Officer Michelle Smibert, Director of Corporate Services/Clerk Renato Pullia, Interim Director of Finance/Treasurer Shane Caskanette, Fire Chief Chris Baird, Director of Recreation, Culture and Parks Carlos Reyes, Director of Operations and Development Cephas Panschow, Development Commissioner Geno Vanhaelewyn, Chief Building Official Shayne Reitsma, Manager of Engineering Andrea Greenway, Recreation Programs and Services Manager Ann Wright, Records and Legislative Coordinator David Drobitch, Parks & Facilities Manager Richard Sparham, Manager of Public Works _____________________________________________________________________ 1. Call to Order Mayor Molnar called the meeting to order at 5:00 p.m. Page 7 of 300 2 2. Closed Session (5:00 P.M.) Resolution # 2022-061 Moved By: Councillor Gilvesy Seconded By: Councillor Rosehart THAT Council move into Closed Session to consider a matter of information explicitly supplied in confidence to the municipality or local board by Canada, a province or territory or a Crown agency of any of them, under section 239 (2) (h) of the Municipal Act. Carried 2.1 Adoption of the Agenda 2.2 Disclosures of Pecuniary Interest and the General Nature Thereof 2.3 Adoption of Closed Session Council Minutes 2.4 Reports 2.4.1 239 (2) (h) information explicitly supplied in confidence to the municipality or local board by Canada, a province or territory or a Crown agency of any of them. 3. Adoption of Agenda (6:00 P.M.) Two requests for delegations were received to speak to the Town Hall item; 1. Cedric Tomico, Downtown Tillsonburg BIA; 2. Ben Cressman & Terra Attard from Tillsonburg Town Centre - Strathallen Capital. Resolution # 2022-062 Moved By: Councillor Rosehart Seconded By: Councillor Luciani THAT the Agenda as prepared for the Council meeting of February 28, 2022, with item 14.1.1 Staff Report OPD 22-02 being dealt immediately following item 7.1, be approved, as amended. Carried 4. Moment of Silence Page 8 of 300 3 5. Disclosures of Pecuniary Interest and the General Nature Thereof No disclosures of pecuniary interest were declared. 6. Adoption of Council Minutes of Previous Meeting Resolution # 2022-063 Moved By: Councillor Esseltine Seconded By: Councillor Parker THAT the minutes of the Regular Council meeting held on February 14, 2022, be approved. Carried 7. Presentations Two Delegations to Speak to CAO Report 22-01 Town Hall item: 1) Cedric Tomico, Downtown Tillsonburg BIA Cedric Tomico spoke on behalf of the Tillsonburg BIA and was opposed to the recommended location of the proposed new Town Hall office, believing it would have a negative impact on the central business district and requested to be part of the public consultation moving forward. 2) Ben Cressman & Terra Attard from Tillsonburg Town Centre - Strathallen Capital Ben Cressman and Terra Attard spoke on behalf of the Tillsonburg Town Centre - Strathallen Capital and provided a PowerPoint presentation, and was opposed to the recommended location of the proposed new Town Hall office. Strathallen would like the Town Hall office to remain in the mall. Resolution # 2022-064 Moved By: Councillor Gilvesy Seconded By: Councillor Parker That council receive the delegation of Cedric Tomico representing the Tillsonburg BIA as information; And that Council receive the delegation of Ben Cressman & Terra Attard from Strathallan as information. Carried Page 9 of 300 4 7.1 Design & Feasibility Study Presentation (Appendix A to Report CAO 22-01) Presentation by Paul Sapounzi & Yaser Rahmanian of +VG The Ventin Group Architects. Paul noted to Council that they achieved their project deliverable as they were able to take the proposed program and offer three options for Council to consider as part of the Town Hall project. The consultants then reviewed their power point with Council. Also in attendance Travis Forrest & Dennis Vass of +VG The Ventin Group Architects. Resolution # 2022-065 Moved By: Deputy Mayor Beres Seconded By: Councillor Gilvesy THAT Council receives the presentation by Paul Sapounzi & Yaser Rahmanian of +VG The Ventin Group Architects regarding the Town Hall Design & Feasibility Study; AND THAT this information be referred to item 14.1.1 staff report CAO 22- 01, for consideration. Carried Item 14.1.1 was considered next. 8. Public Meetings 9. Planning Reports 10. Delegations 11. Deputation(s) on Committee Reports 12. COVID-19 Mayor Molnar provided a COVID-19 update. Dave Drobitch provided an update regarding the Community Centre no longer requiring proof vaccination as of March 1st. 13. Information Items 13.1 BIA - Board of Management Appointment Page 10 of 300 5 13.2 Canadian Wildlife Federations - Opportunity for Tillsonburg to join CWF's Pollinator Network 13.3 Ministry of Northern Development, Mines, Natural Resources and Forestry - Outbreak of LDD Moth Resolution # 2022-066 Moved By: Councillor Parker Seconded By: Councillor Esseltine THAT Council receives the correspondence from the Tillsonburg BIA Board of Management dated January 26 and February 9, 2022, the correspondence from Canadian Wildlife Federation dated February 11, 2022 and the correspondence from the Ministry of Northern Development, Mines, Natural Resources and Forestry dated February 18, 2022 as information; AND THAT a by-law be brought forward to amend By-Law 4260 to Appoint Directors for the Tillsonburg BIA Board. Carried 14. Staff Reports 14.1 Chief Administrative Officer John Veldman, Chair of the Town Hall Steering Committee was also in attendance to provide the Committee recommendation to proceed with option “C” the Greyfield site and to answer any questions regarding the project. Other members of the Town Hall Steering Committee also present: Andrew Gilvesy, Jesse Goosens, and Rick Strouth. 14.1.1 CAO 22-01 Town Hall Committee Recommendations Resolution # Tabled Resolution Moved By: Councillor Luciani Seconded By: Deputy Mayor Beres THAT Council receives Report CAO 22-01 Town Hall Steering Committee Recommendation. THAT Council endorses the Town Hall Steering Committees recommendation regarding Option C – Greyfield Site – located at Page 11 of 300 6 the corner of Brock and Harvey Street at the “Maximum” square footage scenario to enable future growth and expansion; AND THAT staff be directed to move forward with this option. Motion to amend. Resolution # 2022-067 Moved By: Councillor Gilvesy Seconded By: Councillor Parker THAT the resolution on the floor be amended by splitting into two (2) separate resolutions as follows to be voted on separately; 1) THAT Council receives Report CAO 22-01 Town Hall Steering Committee Recommendation. 2) THAT Council endorses the Town Hall Steering Committees recommendation regarding Option C – Greyfield Site – located at the corner of Brock and Harvey Street at the “Maximum” square footage scenario to enable future growth and expansion; AND THAT staff be directed to move forward with this option. Carried The separated resolutions were then considered by Council: Resolution # 2022-068 Moved By: Councillor Luciani Seconded By: Deputy Mayor Beres THAT Council receives Report CAO 22-01 Town Hall Steering Committee Recommendation. Carried Resolution # 2022-069 Moved By: Councillor Luciani Seconded By: Deputy Mayor Beres Page 12 of 300 7 THAT Council endorses the Town Hall Steering Committees recommendation regarding Option C – Greyfield Site – located at the corner of Brock and Harvey Street at the “Maximum” square footage scenario to enable future growth and expansion; AND THAT staff be directed to move forward with this option. Councillor Luciani requested a recorded vote. Councillor Luciani - Yes Councillor Gilvesy - No Councillor Parker - No Councillor Esseltine - Yes Councillor Rosehart - No Deputy Mayor Beres - No Mayor Molnar – No Defeated Resolution # 2022-070 Moved By: Deputy Mayor Beres Seconded By: Councillor Gilvesy THAT Council receives Report CAO 22-01 Town Hall Steering Committee Recommendation; AND THAT Council directs staff to negotiate a lease or other options with Strathallen that is equal to or better than the lowest costed option identified in CAO 22-01 Town Hall Steering Committee Recommendation. Councillor Parker requested a recorded vote. Councillor Parker - Yes Councillor Esseltine - No Councillor Gilvesy - Yes Councillor Luciani - Yes Councillor Rosehart - Yes Deputy Mayor Beres - Yes Page 13 of 300 8 Mayor Molnar – No Carried 14.2 Corporate Services 14.2.1 CS 22-07 IT Study Resolution # 2022-071 Moved By: Councillor Rosehart Seconded By: Councillor Luciani That Council receives report CS 22-07 entitled IT Study and the overview and recommendations contained in the IT Study be received for information. Carried 14.3 Economic Development 14.3.1 EDM 22-05 Offer to Purchase - Lot 5 and 6, Van Norman Innovation Park Resolution # 2022-072 Moved By: Councillor Gilvesy Seconded By: Councillor Rosehart THAT Council receives Report EDM 22-05 Offer to Purchase – Lots 5 and 6, Van Norman Innovation Park; AND THAT a by-law be brought forward to authorize the Mayor and Clerk to enter into an agreement of purchase and sale with from Prince Estates Inc for the property described as Lots 5 and 6 in the Van Norman Innovation Park. Carried 14.3.2 EDM 22-06 Snow Storage Requirement - Van Norman Innovation Park Resolution # 2022-073 Moved By: Deputy Mayor Beres Seconded By: Councillor Parker Page 14 of 300 9 THAT Council receives Report EDM 22-06 Snow Storage Requirement – Van Norman Innovation Park; AND THAT Council approve the allocation of 4 acres of industrial land in the Van Norman Innovation Park to the Public Works Department for the purposes of maintaining the Town’s existing snow storage area. Defeated Resolution # 2022-074 Moved By: Councillor Gilvesy Seconded By: Councillor Parker THAT Council receives Report EDM 22-06 Snow Storage Requirement – Van Norman Innovation Park; AND THAT staff be requested to provide a further report with other options. Carried 14.4 Finance 14.5 Fire and Emergency Services 14.6 Operations and Development 14.6.1 OPD 22-09 The Town of Tillsonburg Development Guidelines and Design Criteria Resolution # 2022-075 Moved By: Councillor Parker Seconded By: Councillor Esseltine THAT Council received report OPD 22-09 Town of Tillsonburg Development Guidelines and Design Criteria as information; AND THAT the Tillsonburg Development Guidelines and Design Criteria be sent to the Economic Development Committee for comment and review; AND THAT the Tillsonburg Development Guidelines be distributed to local Developers for comment and review. Page 15 of 300 10 Carried 14.7 Recreation, Culture and Parks 14.7.1 RCP 22-03 Recreation and Sports Advisory Committee Recommendation to Council - Parks Use By-law Resolution # 2022-076 Moved By: Councillor Esseltine Seconded By: Deputy Mayor Beres THAT Council receives Staff Report RCP 22-03, Recreation and Sports Advisory Committee Recommendation, as information; and AND supports the Recreation and Sports Advisory Committee’s recommendation that staff be directed to develop a comprehensive new draft Parks Use Bylaw for further review of Council. Carried 14.7.2 RCP 22-05 - RCP COVID Revenue Mitigation Deputy Mayor Beres took over the chair as Mayor Molnar left the meeting from 9:59 p.m. until 10:01 p.m. and returned before item 14.7.2 was voted on. Resolution # 2022-077 Moved By: Councillor Gilvesy Seconded By: Councillor Luciani THAT Council receives RCP report 22-05 entitled RCP COVID Revenue Mitigation Strategy; AND THAT staffing and service levels in the Recreation, Culture and Parks Department remain at present levels. Carried 14.7.3 RCP 22-06 Tillsonburg Community Centre Janitorial Services Resolution # 2022-078 Moved By: Councillor Luciani Seconded By: Councillor Gilvesy Page 16 of 300 11 THAT Report RCP 22-06, Tillsonburg Community Centre Janitorial Services, be received as information; and THAT Staff be authorized to initiate the necessary measures to implement a new in-house janitorial services program at the Tillsonburg Community Centre; and THAT the Director of Finance make the necessary operational budget adjustments to effect the change in service model. Carried 15. New Business 16. Consideration of Committee Minutes 17. Motions/Notice of Motions 18. Resolutions/Resolutions Resulting from Closed Session 19. By-Laws 19.1 By-Law 2022-022 to repeal By-Law 2020-072 to adopt a T:GO Advertising Policy 19.2 By-Law 2022-021 to authorize an agreement of purchase and sale with Prince Estates Inc 19.3 By-Law 2022-020 to amend By-Law 4260, to appoint Directors to the Tillsonburg BIA Board of Management Resolution # 2022-079 Moved By: Councillor Parker Seconded By: Deputy Mayor Beres THAT By-Law 2022-022 to repeal By-Law 2020-072 to adopt a T:GO Advertising Policy; and By-Law 2022-021 to authorize an agreement of purchase and sale with Prince Estates Inc.; and By-Law 2022-020 to amend By-Law 4260, to appoint Ben Cressman, Mike Bossy and Emily Birtwell as Directors to the Tillsonburg BIA Board of Management be read for a first, second, third and final reading and that the Mayor and the Clerk be and are hereby authorized to sign the same, and place the corporate seal thereunto. Page 17 of 300 12 Carried 20. Confirm Proceedings By-law Resolution # 2022-080 Moved By: Councillor Esseltine Seconded By: Councillor Rosehart THAT By-Law 2022-019, to Confirm the Proceedings of the Council meeting held on February 28, 2022, be read for a first, second, third and final reading and that the Mayor and the Clerk be and are hereby authorized to sign the same, and place the corporate seal thereunto. Carried 21. Items of Public Interest Regular Meeting of Council - March 14, 2022 at 6:00 p.m. Regular Meeting of Council - March 28, 2022 at 6:00 p.m. 22. Adjournment Resolution # 2022-081 Moved By: Councillor Rosehart Seconded By: Councillor Parker THAT the Council meeting of February 28, 2022 be adjourned at 10:29 p.m. Carried Page 18 of 300 Page 1 of 4 Report No: CP 2022-109 COMMUNITY PLANNING Council Date: March 14, 2022 To: Mayor and Members of Tillsonburg Council From: Eric Gilbert, Senior Planner, Community Planning Application for Zone Change ZN 7-22-01 – Performance Communities Realty Inc & Lindprop Corp. REPORT HIGHLIGHTS  The application for zone change proposes to remove the holding provision from the lots within the Northcrest Estates Phase 2 draft plan of subdivision. The appropriate servicing works and development agreements have been completed. Removal of the holding provision will allow for the issuance of building permits.  The current phase consists of 71 lots for single detached dwellings, and 45 lots for 202 street- fronting townhouse dwellings.  Planning staff are recommending approval of the application, as sufficient water and wastewater capacity is available for the development, and all necessary development agreements have been completed. DISCUSSION Background OWNERS: Performance Communities Realty Inc & Lindprop Corporation 1 Barrie Boulevard, St Thomas ON N5P 4B9 AGENT: Will Hayhoe, Performance Communities Realty Inc 1 Barrie Boulevard, St Thomas ON N5P 4B9 LOCATION: The subject lands are described as Part Lot 5, Concession 10 (Dereham), Parts 1-6 of 41R-10049 in the Town of Tillsonburg. The lands are located on the north side of North Street East, between Huntley Avenue and Tillson Avenue, and are known municipally as 78 & 84 North Street East, Tillsonburg. Page 19 of 300 Report No: CP 2022-109 COMMUNITY PLANNING Council Date: March 14, 2022 Page 2 of 4 COUNTY OF OXFORD OFFICIAL PLAN: Schedule “T-1” Schedule “T-2” Town of Tillsonburg Land Use Plan Town of Tillsonburg Residential Density Plan Residential Low Density Residential TOWN OF TILLSONBURG ZONING BY-LAW NO. 3295: Existing Zoning: Special Low Density Residential Type 1A Holding Zone (R1A-26 (H)) Special Low Density Residential Type 2 Holding Zone (R2-25 (H)) Special Low Density Residential Type 3 Holding Zone (R3-20 (H)) Passive Use Open Space Zone (OS1) Active Use Open Space Zone (OS2) Proposed Zoning: Special Low Density Residential Type 1A Zone (R1A-26) Special Low Density Residential Type 2 Zone (R2-25) Special Low Density Residential Type 3 Zone (R3-20) Passive Use Open Space Zone (OS1) Active Use Open Space Zone (OS2) PROPOSAL: The purpose of the application for Zone Change is to remove a holding provision on the subject lands to allow for the development of single detached dwellings and street-fronting townhouse dwellings. The subject lands comprise approximately 16.25 ha (40.2 ac), are currently vacant and have recently been serviced. Surrounding uses include existing low density residential uses to the south and west, with a municipal drain and proposed park to the north and the Ontario Southland Railway line to the north and east. Appropriate development agreements have been completed and the subdivision will be registered imminently and the owners have now requested that the holding provision on the lands be lifted to allow for the issuance of building permits for these lands. Plate 1, Location Map with Zoning, shows the location of the subject property and the existing zoning in the immediate vicinity. Plate 2, Applicant’s Sketch, shows the lots that are subject to this application. Application Review PROVINCIAL POLICY STATEMENT (PPS): Section 1.1.3.1 of the PPS states that Settlement Areas will be the focus of growth and their vitality and regeneration shall be promoted. Section 1.1.1 provides that healthy liveable and safe communities are sustained by promoting efficient development and land use patterns which sustain the financial well-being of the Province and municipalities over the long term; accommodating an appropriate range and mix of residential, employment (including industrial, commercial and institutional uses), recreational and open space uses to meet long-term needs; Page 20 of 300 Report No: CP 2022-109 COMMUNITY PLANNING Council Date: March 14, 2022 Page 3 of 4 and avoiding development and land use patterns which may cause environmental or public health and safety concerns. OFFICIAL PLAN: The subject lands are designated ‘Residential’ and ‘Low Density Residential’ according to the Land Use Plan and Residential Density Plan for the Town of Tillsonburg, as contained in the Oxford Official Plan. Low density residential areas are those lands that are primarily developed or planned for a variety of low-rise, low density housing forms including both executive and smaller single-detached dwellings, semi-detached, duplex and converted dwellings, street-fronting townhouses and other, similar development. Within areas designated Low Density Residential, it is intended that there will be a mixing and integration of different forms of housing to achieve a low overall density of use. The policies of Section 8.2 (Town of Tillsonburg Housing Development and Residential Areas) promote the accommodation of present and future demand for housing in Tillsonburg through the efficient use of vacant residentially-designated lands, underutilized parcels in built-up areas and existing housing stock in all neighbourhoods. TOWN OF TILLSONBURG ZONING BY-LAW: The subject property is currently zoned ‘Special Low Density Residential Type 1A Holding Zone R1A-26 (H))’, ‘Special Low Density Residential Type 2 Holding Zone (R2-25 (H)), & Special Low Density Residential Type 3 Holding Zone (R3-20 (H))’, according to the Town of Tillsonburg Zoning By-law. Permitted uses within the ‘R1A-26’ & ‘R2-25’ zone include a single detached dwelling, once the holding provision is removed. Permitted uses within the ‘R3-20’ zone include a street-fronting townhouse once the holding provision is removed. The intent of the holding provision is to ensure that all appropriate development agreements are in place, required easements have been provided, and payment for servicing has been provided in advance of building permit issuance. Section 36 of the Planning Act governs the use of Holding Provisions. Holding provisions are typically used to ensure that technical or administrative matters are addressed prior to the intended use of a property being permitted. Removal of holding provisions does not require public notice or circulation of the application, and the only right to appeal lies with the applicant. In this instance, holding provisions were applied to ensure that appropriate development agreements are in place and adequate water and wastewater capacity is assigned to the development prior to the construction of dwelling units. The applicant proposes to remove the holding provision to allow the lands to be used for residential purposes. AGENCY COMMENTS: The application was circulated to various public agencies considered to have an interest in the proposal. The Town Building Services Department and Town Engineering Services Department indicated that they have no concerns with the request to remove the holding provision from the lands. The Oxford County Public Works Department indicated that they have no objection to the Page 21 of 300 Report No: CP 2022-109 COMMUNITY PLANNING Council Date: March 14, 2022 Page 4 of 4 request, as there is adequate water and wastewater treatment capacity to service the proposed development. Planning Analysis It is the opinion of this Office that the proposed zoning application is consistent with the policies of the Provincial Policy Statement and maintains the intent and purpose of the Official Plan, and can therefore be supported from a planning perspective. Oxford County Public Works Department have confirmed that there is sufficient water and wastewater capacity available to service the proposed development and Town staff have indicated that they have no objection to the removal of the holding provision as the appropriate development agreements have been completed and will be registered on the lands. It is Planning staff’s opinion that the request to remove the holding provision within this phase of the draft plan to allow for residential development in the form of single detached dwellings and street-fronting townhouse dwellings is appropriate from a planning perspective and can be given favourable consideration. A copy of the draft amending by-law is attached for Council’s consideration. RECOMMENDATION It is recommended that the Council of the Town of Tillsonburg approve the zone change application submitted by Performance Communities Realty Inc & Lindprop Corporation, for lands legally described as Lot 5, Concession 10 (Dereham), Parts 1-6 of 41R-10049 in the Town of Tillsonburg, to remove the Holding Provision from the lands. SIGNATURES Authored by: Eric Gilbert, MCIP, RPP Senior Planner Approved for submission: Gordon K. Hough, RPP Director Page 22 of 300 ZN 7-22-01 4-Feb-22 000210738 Page 23 of 300 Page 24 of 300 Page 25 of 300 Page 26 of 300 www.oxfordcounty.ca Public Works 21 Reeve Street, PO Box 1614 Woodstock, ON N4S 7Y3 519.539.9800, ext. 3001  1.800.755.0394 Public Works MEMORANDUM TO: All Oxford County Area Municipal Councils FROM: David Simpson, Director of Public Works DATE: March 9, 2022 RE: 2024 Oxford County Water and Wastewater Master Plan Municipal Class Environmental Assessment Study - Notice of Study Commencement, Oxford County Oxford County is initiating a Water and Wastewater Master Plan Class Environmental Assessment Study to provide the County with a strategic long-term water and wastewater planning document to 2046. The Study Area encompasses the entire geographic boundary of Oxford County. This Master Plan Study is being carried out in accordance with the planning and design process for Phase 1 and 2 projects as outlined in the Municipal Engineers Association Municipal Class Environmental Assessment (October 2000, as amended in 2007, 2011 and 2015), which is approved under the Ontario Environmental Assessment Act. Any potential impact of the project alternatives on social, cultural, economic, and natural environments will be evaluated and assessed during the Master Plan Study. R.V. Anderson Associates Limited has been retained to assist in undertaking the Master Plan Study to comprehensively develop, evaluate and select preferred long term water and wastewater servicing strategies to accommodate future projected population and employment growth to the year 2046 as well as provide effective on-going servicing continuity for existing settlement areas across Oxford County as appropriate. Public and review agency consultation is a key element of the Master Plan process and input will be sought throughout the process. The Notice of Study Commencement will appear in local newspapers in March 2022. David Simpson, P.Eng., PMP Director of Public Works Encl. Notice of Study Commencement Page 27 of 300 Notice of Study Commencement Oxford County Water and Wastewater Master Plan Oxford County has initiated the development of a Water and Wastewater Master Plan (W/WW MP) to provide the County with strategic long-term water and wastewater servicing strategies to support existing servicing needs and accommodate further projected population and employment growth to the year 2046. PUBLIC NOTICE What is the Water and Wastewater Master Plan? The W/WW MP is a long-term strategic planning document that lays out the County’s vision and goals for its water and wastewater systems to 2046. The W/WW MP will:  Provide water and wastewater strategies to service existing settlement areas and growth to the year 2046;  Develop water and wastewater strategies that are consistent with and conform to Provincial policies/ legislation and support the County’s Official Plan and strategic initiatives;  Identify options for optimizing the effectiveness of the existing water and wastewater infrastructure;  Develop an integrated multi-year water and wastewater capital implementation plan which affords infrastructure reliability, redundancy and sustainability. R.V. Anderson Associates Limited has been retained by Oxford County to complete the W/WW MP. The W/WW MP is being conducted in accordance with the Master Plan requirements of Phases 1 and 2 of the Municipal Class Environmental Assessment (2000, as amended in 2007, 2011 & 2015), approved under the Ontario Environmental Assessment Act. We want to hear from you As the Project Team reviews and updates the W/WW MP, it is important to engage with the public to identify the community’s servicing needs and priorities. Members of the public are invited and encouraged to comment on the project at any time during the Study. Those interested in this study are invited to participate by:  Visiting the study website at www.speakup.oxfordcounty.ca/wwwmp  Subscribing to the study mailing list to receive notices of future consultation opportunities. To be added to the mailing list, contact one of the key contacts below.  Attending future Public Consultation Centres (PCC). PCCs will be held at various locations around the County. More details about the PCCs will be provided as they become available  Providing your comments through the study website on Speak Up, Oxford! at www.speakup.oxfordcounty.ca/wwwmp, or submit to the key study contacts listed below. A draft W/WW MP Study Report will be prepared and made available for public review and comment prior to its finalization. Contacts for information Travis Pawlick, P.Eng. Supervisor, Water and Wastewater Oxford County 519-539-9800 x3111 | tpawlick@oxfordcounty.ca John Tyrrell, MSc (Eng.), P.Eng Senior Project Manager R.V. Anderson Associates Limited 519-681-9916 x 5038 | jtyrrell@rvanderson.com Information will be collected in accordance with the Municipal Freedom of Information and Protection of Privacy Act. With the exception of personal information, all comments will become part of the public record. Posting date to be confirmed oxfordcounty.ca [DRAFT] Page 28 of 300 www.oxfordcounty.ca Public Works 21 Reeve Street, PO Box 1614 Woodstock, ON N4S 7Y3 519.539.9800, ext. 3001  1.800.755.0394 Public Works MEMORANDUM TO: All Oxford County Area Municipal Councils FROM: David Simpson, Director of Public Works DATE: March 9, 2022 RE: 2024 Transportation Master Plan Municipal Class Environmental Assessment Study – Phase 1 & 2 Notice of Study Commencement, Oxford County Oxford County is initiating a Transportation Master Plan Class Environmental Assessment (EA) Study to provide the County with a strategic long-term multi-modal transportation system planning document to 2046. The Study Area encompasses the entire geographic boundary of Oxford County. This Master Plan Study is being carried out in accordance with the planning and design process for Phase 1 and 2 as outlined in the Municipal Engineers Association Municipal Class Environmental Assessment (October 2000, as amended in 2007, 2011 and 2015), which is approved under the Ontario Environmental Assessment Act. Any potential impact of the project alternatives on social, cultural, economic, and natural environments will be evaluated and assessed during the Master Plan Study. Parsons Inc. has been retained to assist in undertaking the Master Plan Study to assess the impact of population and employment growth, travel demand and patterns, future transportation conditions (including sustainable transportation solutions), specific needs related to people and goods movement on the County’s transportation network. Public and review agency consultation is a key element of the Master Plan process and input will be sought throughout the process. The Notice of Commencement will appear in the Oxford Review in March, 2022. David Simpson, P.Eng., PMP Director of Public Works Encl. Notice of Commencement Page 29 of 300 Notice of Study Commencement Oxford County Transportation Master Plan Update Oxford County has initiated a 2024 update of its current 2019 Transportation Master Plan (TMP). PUBLIC NOTICE What is the Transportation Master Plan? The TMP is a long-term strategic transportation planning document that lays out the County’s vision and goals for its transportation system to 2046. The TMP will consider: Population and employment growth in the County; Accommodation of future transportation conditions while also considering sustainable and multi-modal transportation solutions (e.g., promoting active transportation, transportation demand strategies, and public transportation over single-occupant vehicle trips); and Specific needs of the County, including people and goods movement, along with agricultural mobility. Parsons Inc. has been retained by Oxford County to complete the TMP Update. Key objectives of the TMP Update include: Assess existing and future transportation network conditions and performance, with consideration to travel demand and patterns; Identify needs of the transportation system and develop policies to address them; and Develop a safe, effective and financially viable integrated transportation system implementation plan which maximizes the use of existing infrastructure and promotes regional connectivity. As part of the TMP Update, a corridor study of Oxford Road 4 will be completed. This corridor is a key transportation link between Highways 401/403 and the northern part of the County. Findings of this study will be incorporated into the TMP. The TMP Update is being conducted in accordance with the Master Plan requirements of Phases 1 and 2 of the Municipal Class Environmental Assessment (2000, as amended in 2007, 2011 & 2015), approved under the Ontario Environmental Assessment Act. We want to hear from you As the Project Team reviews and updates the TMP, it is important to engage with the public to identify the community’s transportation needs and priorities. Those interested in this study are invited to participate by: Visiting the study website at www.oxfordcounty.ca/2024tmp Subscribing to the study mailing list to receive notices of future consultation opportunities. To be added to the mailing list, contact one of the key contacts below. Attend future Public Consultation Centres (PCC). PCCs will be held at various locations around the County. More details about the PCCs will be provided as they become available Provide your comments through the study website on Speak Up, Oxford! at www.oxfordcounty.ca/2024tmp, or submit to the key study contacts listed below. Near the end of this Study, a draft TMP Study Report will be prepared and made available for public review and comment prior to its finalization. Contacts for information Information will be collected in accordance with the Municipal Freedom of Information and Protection of Privacy Act. With the exception of personal information, all comments will become part of the public record. Posting date to be confirmed oxfordcounty.ca Ryan Vink, P.Eng. Project Manager Oxford County rvink@oxfordcounty.ca 519-535-8471 John McGill, P.Eng., PTOE, RSP1 Project Manager Parsons Inc. john.mcgill@parsons.com 905-330-9569 [DRAFT] Page 30 of 300 Long Point Region Conservation Authority 4 Elm St., Tillsonburg, Ontario N4G 0C4 519-842-4242 or 1-888-231-5408 ˖ Fax 519-842-7123 Email: conservation@lprca.on.ca ˖ www.lprca.on.ca A Member of the Conservation Ontario Network February 28, 2022 Via Email only Kyle Pratt, CAO kpratt@tillsonburg.ca Dear Mr. Pratt, Re: LPRCA Inventory of Programs and Services under Ontario Regulation 687/21 As a requirement under Ontario Regulation 687/21, the Long Point Region Conservation Authority (LPRCA) has developed an Inventory of Programs and Services based on the three categories identified in the Regulation. The categories include: (1) Mandatory, (2) Municipally requested, and (3) Other (Authority determines are advisable). Background On October 4, 2021, the Ministry of Environment, Conservation and Parks (MECP) released three Phase 1 regulations to implement amendments to the Conservation Authorities Act made in 2019/2020. The following two regulations are relevant for completing the programs and services inventory. Ontario Regulation 686/21: Mandatory Programs and Services http://www.ontario.ca/laws/regulation/r21686 This regulation prescribes the mandatory programs and services conservation authorities are required to provide: risk of natural hazards, conservation and management of CA-owned lands, elements of source water protection, core watershed-based resource management strategies, and provincial water quality and quantity monitoring. Ontario Regulation 687/21: Transition Plans and Agreements for Programs and Services under Section 21.1.2 of the Act https://www.ontario.ca/laws/regulation/r21687 This regulation provides details for the required Programs and Services Inventory and how additional programs and services that a conservation authority provides to local communities (beyond the mandatory programs and services that the Authority is required to provide) can continue. Under Ontario Regulation 687/21, LPRCA completed a transition plan and it was circulated to member municipalities and MECP by the December 31, 2021 deadline. The next requirement under Ontario Regulation 687/21 is that each authority develops an inventory of programs and services and circulates to member municipalities and submits to MECP by February 28, 2022. Ontario Reg 687/21 requires status reports to MECP in 2022 and 2023 which allows changes to the inventory during the transition period. Page 31 of 300 Programs and Services Categories LPRCA’s programs and services are to be classified in the following three categories as per the CA Act S 21.1, 21.1.1 and 21.1.2. Category 1: Mandatory programs and services as identified in Ontario Regulation 686/21. Conservation authorities are required to deliver these programs and service and they will be funded by municipal levy or a combination with user fees. Category 2: Municipal programs and services that are provided at the request of the municipality. These programs and services that are carried out by the CA on behalf of a municipality can be funded through government and other agency grants and/or municipal funding under a memorandum of understanding (MOU) or agreement with the municipality. Category 3: Other programs and services that an Authority (Board) determines are advisable. These programs can be funded through self -generated revenue, user fees, government and other agency grants, donations, etc. Any use of municipal funding will require a cost-apportioning agreement. LPRCA Programs and Services Inventory List (Chart A) The LPRCA Programs and Services Inventory and information required under Ontario Regulation 687/21 Section 6 is attached. The attached inventory list is an overview of the program and services that LPRCA currently offers. The departments are consistent with the LPRCA 2022 budget. The Chart A list has the category 1, 2 or 3 disclosed for the programs and services in each department. The funding source is listed along with the percentage contribution of funding for each department. Each program and service has been categorized based on the criteria identified under the Conservation Authorities Act and Ontario Regulation 686/21. As required by Ontario Regulation. 687/21, the list explains why a program falls into category 1 by referencing applicable sections under Ontario Regulation 686/21 “Mandatory Programs and Services”. Programs are shown with two categories when only a portion of the current program activities are defined in regulation as Category 1. The inventory has the annual costs from the 2022 budget for the programs/services, sources of funding and the percentage attributed to each funding source. The 2022 budget costs have been used because the 5-year average cost is skewed by a number of factors including staff restructuring, the COVID-19 pandemic and fluctuations in special projects supported by external funding. and rising inflation. The 2022 budget provides the best estimate of the costs to provide the program and services. Any exceptions to this approach are noted in the inventory and are allowed under the regulation. The report includes a breakdown of the percentage contribution of revenue that supports the programs and services. Revenue source categories include: municipal levy, provincial, 2 Page 32 of 300 federal and self-generated revenue specific to the program (i.e. user fees), resource revenue, current surplus allocation and reserves. New Mandatory Initiatives The mandated programs and services in Ontario Regulation 686/21 include the following six initiatives that LPRCA must complete by December 31, 2024: • Operational Plan - Natural Hazards Infrastructure • Asset Management Plan - Natural Hazards Infrastructure • Ice Management Plan • Watershed-based Resource Management Strategy • Conservation Areas Strategy • Land Inventory The development of these mandatory plans and strategies in the short time window before December 31, 2024 will require additional staff and financial resources. Staff is currently investigating how these deliverables can best be completed. Summary of Category 2 Programs and Services (Chart B) As required under Ontario Regulation 687/21 Section 6(5), the current Category 2 Programs and Services (provided at the request of a municipality) are summarized in Chart B along the status of the MOU or Service Agreement under which the service is offered. Summary of Category 3 Programs and Services (Chart C) As required under Ontario Regulation 687/21 Section 6(6), the current Category 3 Programs and Services (advised by the Authority) are summarized in Chart C indicating whether the program relies, in whole or in part, on municipal levy and whether the authority intends to seek to enter into a cost apportioning agreement with member municipalities. Most of LPRCA’s Category 3 programs and services are funded from internal and/or external sources as noted in the attached inventory, and are not currently reliant on municipal levy. For those Category 3 programs and services that rely, in whole or in part, on municipal levy, the LPRCA Board plans to discuss options for other funding sources before seeking cost-apportionment agreements with member municipalities. Future updates to the Programs & Services Inventory listing will reflect the status of discussions. Upcoming Phase 2 Regulations In advance of releasing Phase 2 regulations, MECP has released on January 26, 2022 a consultation guide to provide a description of the proposed regulations. The Phase 2 regulations will include the Municipal Levies Regulation, the Minister’s published list of classes of programs and services for which a conservation authority may charge a user fee, and complementary regulations to increase transparency of authority operations. Many of the current processes for voting and methods of apportioning expenses appear to remain the same. The release of Phase 2 regulations will provide more details, particularly for capital costs and corporate administrative costs. A full analysis on the impact for LPRCA 3 Page 33 of 300 will be completed once the Phase 2 regulations are released; the Programs and Services Inventory will be updated accordingly. Next Steps We look forward to discussing with you any questions and comments you may have on the attached LPRCA Programs and Services Inventory. It would be very helpful if you can provide the name of a municipal point of contact person if you have not already done so. The next status report with an updated Programs and Services Inventory is due to the Ministry of Environment, Conservation and Parks by June 30, 2022. Sincerely, Judy Maxwell, General Manager CC. Michelle Smibert, Director of Corporate Services/Clerk, msmibert@tillsonburg.ca 4 Page 34 of 300 1 Version 1.0 24 February 2022 LPRCA 2022 Current Programs and Services CA Program and Services Categories, as follows: 1. Mandatory programs and services (where municipal levy could be used without an agreement) 2. Municipal programs and services. Programs and services at the request of a municipality (with municipal funding through an MOU/agreement) 3. Other programs and services. Programs and services an authority determines are advisable (use of municipal levy requires a cost-apportionment MOU/agreement with participating municipalities or, if no levy is required, no agreement is needed). Chart A – LPRCA Programs and Services Inventory Listing Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Operating Costs Natural Hazard Management Program Watershed Planning and Technical Studies Section 28.1 Permit Administration Reviewing, processing permit applications & technical reports, site inspections, communications with applicants, agents, consultants. Requests by solicitors. 1 CA Act 21.1 O.Reg. 686/21 Sec 8 $ 114,262 User fees – 100% Program administration and enforcement: General inquiry. Compliance monitoring, enforcement. Policies, standards development and maintenance. Public information and outreach, consultation. Review under other legislation (Environmental Assessment, Drainage, Aggregate Resources), with comments principally related to natural hazards, wetlands, watercourses and Sec 28 permit requirements. CA Act 21.1 O.Reg. 686/21 Sec 3, 6, 8, 9 $ 160,901 User fees – 8% Municipal levy – 92% Municipal Plan Input Input to municipal land-use planning documents (OP, Comprehensive AB, Secondary plans) related to natural hazards, on behalf of NDMNRF (delegated to CAs in 1983) 1 CA Act 21.1 O.Reg. 686/21 Sec 7 $ 42,354 NDMNRF S39 TP - 21% Municipal levy - 79% Provincial Section 39 Funding Page 35 of 300 2 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Municipal Plan Review Technical information and advice to municipalities on municipal land use planning applications (OP and ZB Amendments, Subdivisions, Consents, Minor Variances). Preconsultation. 1, 2 CA Act 21.1 O.Reg. 686/21 Sec 7 $ 67,100 User fees – 100% Plan review for wetlands and storm water management is intertwined with plan review for natural hazards but may be a Category 2 service to be addressed in CA/municipal MOUs for Municipal Plan Review Services. Subwatershed Plans Partner developed plans containing policies and implementation actions to protect, enhance and improve the health of the area, particularly related to land use change 2 CA Act 21.1 None currently Potential Category 2 Service As requested by a municipality as part of its land use planning process. Technical Studies and Information Management Maintenance of base mapping, flood and erosion hazard mapping, hazard line mapping, regulated area mapping. Data collection and storage systems and GIS. Data collection and design studies to mitigate natural hazards including flooding, erosion and drought. 1 CA Act 21.1 O.Reg. 686/21 Sec 1.3 $ 22,050 Municipal levy – 100% Cost shown is 2022 operating cost. Project costs vary from year to year based on funding we are successful in obtaining, such NDMP Riverine and Shoreline Hazard Mapping. 5-year average actual cost is $106,669. Watershed Flood Control Services Flood Forecasting and Warning Daily data collection and monitoring of weather and water level forecasts and watershed conditions. Flood event forecasting. Flood warning and communications. Maintenance of equipment. 1 CA Act 21.1 O.Reg. 686/21 Sec 2 $126,998 NDMNRF S39 TP – 13% Municipal levy – 87% Provincial S39 transfer payment Water Control Infrastructure Operation and Management (Backus, Brooks, Deer Creek, Hay Creek, Lehman, Norwich, Sutton, Teeterville, Vittoria) Dam operations, regular inspections, maintenance activities, activities related to operator health and safety. 1 CA Act 21.1 O.Reg. 686/21 Sec 5.1 $77,612 NDMNRF S39 TP – 12% Municipal levy – 88% Provincial S39 transfer payment New: Develop operational plan for natural hazards infrastructure. New: Develop asset management plan for natural hazards infrastructure. CA Act 21.1 O.Reg. 686/21 Sec 5.2 TBD To be completed by December 31, 2024. The cost of developing the plans is being investigated. Ice Management Services New: Develop an ice management plan. 1 CA Act 21.1 O.Reg. 686/21 Sec 4 TBD An ice management plan is to be completed by December 31, 2024 The cost of developing the plan is being investigated. Page 36 of 300 3 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Watershed Low Water Response Services Low Water Response Conditions monitoring/analysis. Technical & administrative support to the Water Response Team representing major water users and decision makers, who recommend drought response actions. 1 CA Act 21.1 O.Reg. 686/21 Sec 3 $ 6,500 NDMNRF– 0% Municipal levy – 100% Provincial NDMNRF funding some (dry) years. Source Water Protection Source Water Protection (source protection authority role as set out in the Clean Water Act.) Lake Erie Region tech support, SPC support, SPA reports and meetings, activities required by the Clean Water Act and regulations. 1 O.Reg. 686/21 Sec 13 $ 10,332 MECP TP through Grand River CA – 100% Watershed-based Resource Management Strategy Watershed Resource Management Strategy (WRMS) New: The WRMS describes the current watershed conditions based on current knowledge and monitoring data, sets objectives, describes issues and identifies initiatives to reduce the impact of natural hazards, conserve natural resources and improve the health of the watershed. Provides a watershed-based context for LPRCA’s natural hazards and natural resource conservation programs and collaborative activities in its watershed. 1 CA Act 21.1 O.Reg. 686/21 Sec 12.1 TBD Last completed in 1983. To be completed by December 31, 2024. The cost of developing the strategy is being investigated. Healthy Watershed Services Conservation Services Healthy Watershed Technical Support Services Apply for and manage external funding, promote private land stewardship, provide advice and technical support to property owners where the cost cannot be covered from external sources. 3 CA Act 21.1.2 $ 58,778 User fees – 3% Municipal levy – 97% The conservation services (private land stewardship) program is a Category 3 activity. An agreement would be needed with all municipalities to fund the program with levy for the 2024 budget unless supported with surplus revenue from other departments. Private land stewardship services Soil erosion control, water quality improvements, habitat restoration. Disbursements to landowners and contractors are externally funded. 3 CA Act 21.1.2 $ 162,397 (5-yr avg) External sources (Federal, Provincial, OPG, ALUS) – 100% Page 37 of 300 4 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Private forestry land management services Private land tree planting and survival monitoring. 1.82 million trees planted since 2002. 3 CA Act 21.1.2 $ 106,937 (5-yr avg) External sources (Federal, Provincial, OPG) – 100% Trees for Roads A road-side tree planting program by municipal request (mostly used by Bayham and SW Oxford) 2 CA Act 21.1.1 $ 8,523 (5-yr avg) Municipality – 100% Fee for service at municipal request. Surface and Groundwater Quality Services Provincial Water Quality Monitoring Network (PW QMN) and Provincial Groundwater Monitoring Network (PGMN) PWQMN - MECP program for stream water quality monitoring. LPRCA takes water samples; MECP does lab analysis and data management. PGMN - MECP program for groundwater level and quality monitoring. CA maintains equipment, data transfer to MECP, water sampling; MECP provides equipment, lab analysis, data management. 1 CA Act 21.1 O.Reg. 686/21 Sec 12.1 $ 40,552 Municipal levy – 100% The PWQMN program has been running for 50+ years and the PGMN program for 20+ years. The data is used internally for water quality and stream health assessment. Input to the Watershed Report Card. Stream Water Quality Sampling Assist municipalities with their water quality monitoring needs by taking field water samples and delivering them to the laboratory facility. 2 CA Act 21.1.1 None currently Potential Category 2 Service As requested by a municipality as part of its monitoring needs, e.g. for wastewater discharge compliance. Stream health monitoring Benthic invertebrate sampling & analysis has been carried out since 2003 (19 years). Provides additional water quality and stream health information. Input to the Watershed Report Card. Contributed to the province-wide Ontario Benthos Biomonitoring Network. 3 CA Act 21.1.2 $ 9,000 Municipal levy – 100% A cost apportionment agreement with all municipalities will be required to fund the program with levy for the 2024 budget unless an alternative funding source is found. Drain classification (Norfolk partnership) Electrofishing activities to classify municipal drains. Informs drain maintenance decisions and approvals. 2 CA Act 21.1.1 $ 2,590 DFO through Norfolk County under MOU – 100% Activity based on funding secured by Norfolk County. Lamprey barrier inspections Lamprey barriers stop invasive sea lamprey from moving from Lake Erie into the creeks. DFO pays LPRCA annually to inspect their condition. 3 CA Act 21.1.2 $ 3,320 DFO contract – 100% Federal Department of Fisheries and Oceans (DFO) Page 38 of 300 5 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Conservation Authority-Owned Lands Conservation Area Strategy New: Over-arching strategy for CA-owned lands including guiding principles, objectives, land securement/acquisition and disposition, recommended management principles for different land use categories, with public consultation. 1 CA Act 21.1 O.Reg. 686/21 Sec 9.1, 10 TBD To be completed by December 31, 2024. The cost of developing the strategy is being investigated. Land Inventory New: Development and maintenance of an inventory containing information for every parcel of CA-owned land including location, available information, acquisition details, land use categories. 1 CA Act 21.1 O.Reg. 686/21 Sec 11 TBD To be completed by December 31, 2024. The cost of developing the inventory is being investigated. Conservation Authority Lands Section 29 Minister’s regulation for Conservation Areas Conservation areas enforcement/compliance including legal expense for regulation and compliance. 1 CA Act 29 O.Reg. 686/21 Sec 9.1 $ 53,639 Municipal levy – 100% Conservation lands management and maintenance including safety, security and enforcement Boundary identification/maintenance, gate and sign maintenance, trail maintenance, hazard tree removal, garbage pickup, monitoring and enforcement. Assessment to identify maintenance and repair needs. Property taxes, drainage assessment, fish stocking 1 CA Act 21.1 O.Reg. 686/21 Sec 9.1 $168,989 Municipal levy – 100% Maintain facilities, trails or other amenities for public access and passive recreational activities Parkette maintenance, trails maintenance, grass cutting, washrooms, garbage collection. 1 CA Act 21.1 O.Reg. 686/21 Sec 9.1 $ 48,400 User fees - 27% Municipal levy – 72% Lee Brown Waterfowl Management Area Area management, operation and maintenance 1, 3 CA Act 21.1 O.Reg. 686/21 Sec 9.1 CA Act 21.1.2 $142,268 User fees and rentals – 100% Public viewing station is a Category 1 activity. Camp Trillium Children’s camp on property lease 3 CA Act 21.1.2 $59,000 Lease – 100% Page 39 of 300 6 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Backus Heritage and Education Services Backus Environmental Education Centre Education Centre program services, operation and maintenance and outdoor education program 3 CA Act 21.1.2 $126,881 User fees – 2% Contracts – 18% Endowment – 80% Backus Heritage Village and Historical Services Heritage Village and Mill program services, operation and maintenance and heritage education program 3 CA Act 21.1.2 $123,343 Provincial – 7% User fees – 3% Contracts – 13% Municipal levy – 77% The Backus Heritage Area is a Category 3 and an agreement will be needed with all municipalities to fund the operation of the heritage village and historical services with levy for the 2024 budget. Conservation Parks Management Services Conservation Parks (Backus, Deer Creek, Haldimand, Norfolk, Waterford North) Management and operations including business planning, promotion, park operations, safety, security and enforcement, drinking water and sewage operations, maintenance and repair. 3 CA Act 21.1.2 $1,345,310 User fees – 98% Provincial – 2% Public Forest Land Management Services Forestry Management Services 10-year Managed Forest Plans renewal, 5-year Operational Plan, harvest operations (marking, tendering, monitoring), ecological surveys, MFTIP and CLTIP programs 1, 3 CA Act 21.1 O.Reg. 686/21 Sec 9.1 CA Act 21.1.2 $244,644 Federal – 7% Resource revenue – 93% Corporate Administrative Costs Ongoing operating expenses and capital costs, not directly related to the delivery of any specific program or services, that are required to function effectively as an organization and best de liver their programs and services. Corporate Services LPRCA Board Supporting CA Board, Advisory Committees 1 CA Act 20 $ 66,467 Municipal levy – 100% Corporate/IT Services Senior management, main office rent, utilities, office equipment and supplies, financial services, legal expenses, IT 1 CA Act 20 1,037,071 Municipal levy – 51% User fees – 5% Internal surplus – 44% Page 40 of 300 7 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Communications and Marketing Services Communications and Marketing Promoting public awareness of natural hazards. Media relations, website and social media, special events & outreach, partnership programs, networking and collaboration 1 CA Act 21.1 O.Reg. 686/21 Sec 1.3 $98,744 Municipal levy – 100% Memorial forest Trees planted in memorial forest at Backus CA in memory of loved ones 1 CA Act 21.1 O. Reg. 686/21 Sec 9.1 $7,475 Donations – 100% Leighton and Betty Brown Conservation Scholarship Awarded annually to a watershed student graduating from high school and pursuing a degree in an environmental or natural resources field 3 CA Act 21.1.2 $1,000 Trust fund interest – 100% Maintenance Operations Services Maintenance Operations Support operations and facilities maintenance for conservation areas, flood control structures, forestry and motor pool. Equipment and vehicle maintenance. 1 CA Act 20 $371,813 Inter-departmental charges – 30% Municipal levy- 70% Capital Costs Watershed Flood Control Services Water Control Infrastructure (Backus, Brooks, Deer Creek, Hay Creek, Lehman, Norwich, Sutton, Teeterville, Vittoria) Dam safety reviews, emergency preparedness plans, environmental assessments. 1 CA Act 21.1 O. Reg. 686/21 Sec 5.1 $105,000 (avg/year in 5- year forecast) NDMNRF WECI grant – 50% Municipal levy – 50% 2022 budget is $25,000. The $105,000 is based on the average per year in the 5-year forecast. Major maintenance, capital repairs identified in inspections, dam safety reviews or environmental assessment; design studies 1 CA Act 21.1 O. Reg. 686/21 Sec 5.1 $328,000 (avg/year in 5- year forecast) NDMNRF WECI grant – 50% Special benefit levy – 50% The $328,000 is based on the average per year in the 5-year forecast. If the item doesn’t get approved for WECI funding, the payment has been 100% special levy. Page 41 of 300 8 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Backus Heritage Conservation Area Asset: Infrastructure – Education Centre Major maintenance and accessibility upgrades 1, 3 CA Act 21.1.2 $ 96,000 Federal – 100% The office area of the Education Centre is a Category 1 and the remaining area of the displays and the classroom is a Category 3. Federal grant for doors, ramp and washroom for accessibility. Asset: Infrastructure – Heritage Buildings Major maintenance 3 CA Act 21.1.2 $- Historically: Donations – 28% Municipal levy – 72% The Backus Heritage Area is a Category 3. An agreement will be needed with all municipalities to fund the capital activities with levy for the 2024 budget. The 5-year average actual cost is $4,153. Conservation Parks Management Services Asset: Infrastructure – Conservation Areas Water and hydro services upgrades, washroom upgrades, roof replacements and water systems 3 CA Act 21.1.2 $154,000 Reserves – 26% Municipal levy – 74% The campgrounds annually have an operating surplus that has historically been used to reduce levy and it is used to partially fund the corporate services expenses. A capital reserve should be established prior to the 2024 budget and then an agreement would not be needed with municipalities to fund the capital activities with levy. Forestry Asset: Infrastructure – Forest Tracts Tract signage, 911 signs and gates 1 CA Act 21.1 O.Reg. 686/21 Sec 9.1 $ 5,000 Municipal levy – 100% Corporate Services Asset: Computers Office computers and servers 1 CA Act 20 $ 7,000 Municipal levy – 100% Maintenance Operations Services Assets: Equipment Lawn mowers, trailers and tools 1, 3 CA Act 20 $ 26,000 Municipal levy – 100% Some equipment, vehicles and UTVs are used in Conservation Parks for Category 3 activities. Park related capital needs should be drawn from the Conservation Parks capital reserve described above and then an agreement would not be needed with municipalities to fund these capital needs with levy. Assets: Vehicles & UTVs Pickup trucks, dump truck and UTVs 1, 3 CA Act 20 $267,000 Lee Brown Reserve – 8% Municipal levy – 92% Page 42 of 300 9 Version 1.0 24 February 2022 Program/Service Description Category Category Rationale 2022 budget annual cost Current funding mechanisms and % contribution (2022 budget) Comment Asset: Infrastructure – Workshop Workshop roof replacement 1 CA Act 20 $27,250 Municipal levy – 100% Page 43 of 300 Chart B – Summary of Category 2 Programs and Services – Details of Municipal Agreements Ontario Regulation 687/21 Section 6 Subsection 5 requirements (5) For each Category 2 program or service listed in the inventory under clause (2) (a), the authority shall include the following information: 1. The name of the municipality on behalf of which the program or service is provided. 2. The date on which the authority and the municipality entered into a memorandum of understanding or another agreement with respect to the provision of the program or service. Program or Service Category Applicable Section of the Act Description Memorandum of Understanding (MOU) / Agreement Status Municipal plan review – wetlands, stormwater management 2 CA Act Section 21.1.1 Provide services related to wetlands and storm water management for planning and other applications or projects. The service is funded by user fees. As at February 28, 2022 MOUs have yet to be updated or negotiated with all municipalities. Future updates to the P&S inventory listing will reflect status of MOUs. Trees for Roads 2 CA Act Section 21.1.1 Roadside tree planting service at municipal request. Primarily delivered for the Municipality of Bayham and South-West Oxford Township. This has historically been a “fee for service” program without agreement. A service agreement will be required. Drain classification 2 CA Act Section 21.1.1 Electrofishing services to Norfolk County’s drain classification program, funded annually by DFO. Norfolk County/LPRCA/DFO MOU. The 2022 MOU update is in process. Version 1.0 24 February 2022 10 Page 44 of 300 Chart C – Summary of Category 3 Programs and Services – Details of Municipal Agreements Ontario Regulation 687/21 Section 6 Subsection 6 requirements (6) For each Category 3 program or service listed in the inventory under clause (2) (a), the authority shall include the following information: 1. Whether or not the program or service was financed, in whole or in part, through municipal levies collected from participatin g municipalities. 2. Whether or not the authority intends to seek to enter into a cost apportioning agreement with one or more participating munic ipalities to ensure all or part of the financing of the program or service after the transition date. Program or Service Category Applicable Section of the Act Description Section 6(6) Info Requirements Conservation services (private land stewardship and private forestry land management services) 3 CA Act Section 21.1.2 The disbursements to property owners and contractors are externally funded. The staffing cost to apply for and manage external funding, promote private land stewardship and provide advice and technical support to property owners relies on municipal levy funding where the cost cannot be covered fr om external sources. Program and Service has been financed in part through municipal levies. The LPRCA Board will discuss options to seek other funding sources and/or negotiate cost-apportionment agreements with member municipalities. Future updates to the P&S inventory listing will reflect the status of discussions. Stream health monitoring 3 CA Act Section 21.1.2 The stream health monitoring that LPRCA undertakes beyond the activities for Provincial Water Quality Monitoring Network and the Provincial Groundwater Monitoring Network is Category 3. Most activities are funded by external sources. The benthic invertebrate sampling program is reliant on municipal levy. Program and Service has been financed in part through municipal levies. The LPRCA Board will discuss options to seek other funding sources and/or negotiate cost-apportionment agreements with member municipalities. Future updates to the P&S inventory listing will reflect the status of discussions. Lamprey barrier inspection 3 CA Act Section 21.1.2 DFO pays LPRCA annually under MOU to inspect the condition of the lamprey barriers. Not financed through municipal levies. Lee Brown Waterfowl Management Area 1 & 3 CA Act Section 21.1.2 Area management, operation and maintenance Not financed through municipal levies. Camp Trillium 3 CA Act Section 21.1.2 Children’s camp on property leased from LPRCA Not financed through municipal levies. Backus Environmental Education Centre 1 & 3 CA Act Section 21.1.2 Education Centre operation and maintenance and outdoor education program. Not financed through municipal levies. Backus Heritage Village and Historical Services 3 CA Act Section 21.1.2 The Heritage Village and Mill operation and maintenance and heritage education program, while they receive external funding from the provincial government, user fees and school board contracts, are funded in part by municipal levy. The mill is a National Historic Site. Program and Service has been financed in part through municipal levies. The LPRCA Board will discuss options to seek other funding sources and/or negotiate cost-apportionment agreements with member municipalities. Future updates to the P&S inventory listing will reflect the status of discussions. Version 1.0 24 February 2022 11 Page 45 of 300 Program or Service Category Applicable Section of the Act Description Section 6(6) Info Requirements Conservation Parks 3 CA Act Section 21.1.2 Water and hydro services upgrades, washroom upgrades, roof replacements, water systems and vehicles. The capital infrastructure upgrades, vehicles and equipment have been funded in part by municipal levy. Program and Service has been financed in part through municipal levies. The campgrounds annually have an operating surplus that has historically been used to reduce levy and partially fund the corporate services expenses. A capital reserve should be established prior to the 2024 budget and then an agreement would not be needed with municipalities to fund the capital activities with levy. Public Forest Land Management 1 & 3 CA Act Section 21.1.2 10-year Managed Forest Plans renewal, 5-year Operational Plan, harvest operations (marking, tendering, monitoring), ecological surveys, MFTIP and CLTIP programs. Not financed through municipal levies. Leighton and Betty Brown Conservation Scholarship 3 CA Act Section 21.1.2 Awarded annually to a watershed student graduating from high school and pursuing a degree in an environmental or natural resources field Not financed through municipal levies. Version 1.0 24 February 2022 12 Page 46 of 300 Page 1 of 6 Subject: Hybrid Work Model Report Number: CS 22-06 Department: Corporate Services Department Submitted by: Director of Corporate Services Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION That Council approve the Hybrid Work Model (Policy 6-010). BACKGROUND At its meeting on August 9, 2021 the following resolution was adopted : “THAT Council approves a 6 month pilot project of a hybrid return to work model for Town of Tillsonburg staff from September 2021 to March 2022, and direct staff to bring back a formal policy for Council consideration regarding a hybrid work model.” DISCUSSION Feedback was provided by employees on the hybrid return to work model and there were sufficient opportunities for management to assess business continuity, employee engagement/collaboration and team performance. The employee feedback regarding work from home can be found in the initial staff report which is attached. Benefits of the Hybrid Work Model One of the main challenges facing employees is the balancing of demands of work with personal responsibilities and interests. Where appropriate, flexible work arrangements like a hybrid work model can offer a viable solution in achieving work/life harmony for employees and have also been shown to be important to employee attraction, engagement and retention. Page 47 of 300 CS 22-06 Page 2 of 6 Many studies suggest that there is increased productivity and quality of work when employers offer flexible work arrangements to employees, and they are implemented well and managed properly. Common findings include:  Increased ability to attract, retain and motivate high-performing and experienced employees;  Increased job satisfaction, energy, creativity and ability to handle stress;  Reduced absenteeism;  Ability to work with minimal distractions resulting in improved productivity. The Human Resources Professional Association (HRPA) recently released the results of their 2021 HR Trends Survey and reported the following:  Flex work will continue to be popular in the post pandemic workforce with 89% continuing with hybrid, 81% continuing with remote work, 93% continuing with job sharing, 92% continuing with flexible start and end times, and 95% continuing with a compressed work week.  Flexibility helps with recruitment and retention – organizations that experienced issues with recruitment were three (3) times more likely not to offer any flex work options compared to those that didn’t struggle with recruitment and remote work was less common in organizations that reported issues with employee retention – 46% compared to those that didn’t at 53%. Considerations We want the Town of Tillsonburg to be an employer of choice and be seen as an employer who puts its people first. As part of this commitment, we recognize that our employees have lives and commitments outside of the workplace. Therefore, as an employer we want to support facilitating a flexible working environment when reasonable and possible. During the hybrid work model pilot, the Town was able to fill some key positions with experienced employees that were attracted in part by the flexible work arran gements of the hybrid work model. There is a risk in the retention of this talent if the model is discontinued. The hybrid work model also resulted in some cost savings for employees (gas, vehicles maintenance) and can provide some leverage when negotiatin g a salary that may otherwise be comparatively lower than other organizations competing for the same talent. Flexible hybrid work model arrangements are not suitable for all positions and situations. While all staff (non-union) employees will have the ability to request a Page 48 of 300 CS 22-06 Page 3 of 6 flexible work arrangement, a leader’s approval of these arrangements is based on operational requirements and employee’s specific role and responsibilities, and therefore is not guaranteed. It is important that the hybrid work model arrangements as outlined in this submission are not substitutions for or part of the accommodation for employees with disabilities. In cases where an employee requests this work arrangement for medical reasons to accommodate a disability, the Town has a duty t o accommodate (to the point of undue hardship). There is a separate process in place to arrange accommodation related to illness or disability. Employee’s Responsibilities Employees must have a minimum level of job experience and consistently meet or exceed expectations for job performance. The employee must establish a designated work space at their residence. The employee’s residence must be within a reasonable commuting distance from their designated work location within the Town of Tillsonburg. Shoul d an employee wish to change their designated home/hybrid work location, it must be approved in advance by their leader. The costs of setting up a home office are paid by the employee. The employee is expected to use their own equipment and they are responsible for any costs that are associated with the employee using their home as an alternative worksite, for example, home maintenance, insurance, internet or telephone connection or utilities. As this is a voluntary program, employees will not be eligible to receive documentation for taxation purposes in relation to home office expenses (T2200). For safety reasons, employees cannot meet with work clients or coworkers at their home or provide their home phone number or address for contact to conduct work business. All communication must be through town email and phone numbers using Bell Total Connect. Employees will be required to complete and submit a home office safety checklist. When employees work with confidential material, protocols must be established and agreed to for securing confidential materials that are transferred between the home and Town locations and/or maintained at the employee’s home. Employees must review, and if necessary enhance their home insurance policies and ensure that equipment, furniture, and other work materials are covered for loss. Management Responsibilities Page 49 of 300 CS 22-06 Page 4 of 6 Leaders must conduct a comprehensive review of the job, operational requirement interdependencies and coordination of work within the department and with other departments. Leaders must consider and establish means and methods of supervision of the employee who participates in the hybrid work model arrangement and must monitor workload and results. They must consider frequency and method of communication with the employee and ensure they can monitor their progress and maintain regular contact. Leaders must also ensure they and the work team are available to the hybrid work model arrangement employee so they can provide appropriate feedback, recognition and answer questions. Leaders must consider a number of factors when assessing employee suitability for a hybrid work model arrangement:  The eligible employee must have a minimum level of job experience and consistently meet or exceed expectations for job performance;  Consider the employee’s independence, initiative, reliability, organizational ability, and collaboration and communication skills;  Determine whether their home environment is a healthy and safe place to work including a workspace free from distractions and assessing of the risk of violence. Policy and Procedure As part of the policy and procedure, employees will be provided the hybrid work model policy and written agreement is required to be signed between the leader and the employee which includes the terms and conditions of the hybrid work model arrangement with an effective date, an expiry date, and a provision to discontinue the arrangement. As part of the agreement, there will be a required home office safety checklist to be completed by the employee which includes a picture of their designated workspace. The leader will retain the ability to alter the work arrangement or cancel the arrangement based on operational requirements for employee related considerations. Full Flexible Work Arrangement Model When conducting research on the proposed model, it was found that a number of municipalities /public sector employees have not only adopted a hybrid work model but implemented a robust flexible work arrangement model that includes: flextime, compressed work week, job sharing and full time remote work. Currently, Zorra Township has attracted a lot of attention and reported great success with the implementation of a four day (4 day) work week. While staff is not advocating for a Page 50 of 300 CS 22-06 Page 5 of 6 complete flexible work arrangement at this time, to remain an employer of choice with a diverse workforce, it would be worthwhile considering this sometime in the future. Town Hall Project – impact on space requirements with the implementation of the Work from Home Hybrid Model As evidenced by the consultant’s report on the Town Hall, there are cost savings when considering new Town Hall options if there is a hybrid work model in place. CONSULTATION Team members, managers, SLT FINANCIAL IMPACT/FUNDING SOURCE No financial impacts if we continue with the current hybrid model. Savings can be realized if Council decides to move forward with a New Town Hall. CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☐ Lifestyle and amenities ☒ Customer service, communication and engagement ☐ Business attraction, retention and expansion ☐ Community growth ☐ Connectivity and transportation ☐ Not Applicable Does this report relate to a specific strategic direction or project identified in the Community Strategic Plan? Please indicate section number and/or any priority projects identified in the plan. Goal – The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and opportunities to shape municipal initiatives. Strategic Directions – Enhance employee engagement as the foundation of exceptional customer service and to explore opportunities for service efficiencies. Ongoing Projects – Town Hall, Employee Engagement Strategy. Page 51 of 300 CS 22-06 Page 6 of 6 ATTACHMENTS Appendix A – Policy for Hybrid Work Model Arrangements Appendix B – Hybrid Work Model Agreement and Home Office Safety Assessment Checklist Appendix C – Safety Information Sheet – Working from Home Appendix D – CAO Staff Report, August 9, 2021, Hybrid Model Pilot Project Page 52 of 300 6-010 Page 1 of 4 CATEGORY Policy 6 -010: Hybrid Work Model Policy Approval Date: Month, DD, YYYY Approval Authority: Council, Resolution # Effective Date: Next Scheduled Review Year: 2023 Department: Last reviewed: Month, DD, YYYY Revision Date/s: Schedules: POLICY STATEMENT The Town of Tillsonburg supports work location flexibility for approved positions through the use of a hybrid work model. This policy outlines the process for participation and the expectations for employees participating in the hybrid work model. SCOPE This policy applies to the following employees: Non-union, full-time employees. Employees within the scope of this policy are eligible to apply for participation if they have demonstrated a satisfactory level of job experience and consistently met or exceeded expectations for job performance. DEFINITIONS Hybrid Work Model: means that the employee must work a minimum two (2) days per week in the Town of Tillsonburg office as designated. Page 53 of 300 6-010 Page 2 of 4 IMPLEMENTATION PROCEDURE This policy does not alter or replace the terms of an existing employment contract. Employees must comply with all Town of Tillsonburg policies, procedures, and instructions that would apply if the employee were working at their regular worksite. Work hours, compensation, absence reporting and leave scheduling will continue to be in accordance with applicable policies and agreements. Requests to work overtime or use leave time must be approved by the employee’s supervisor in the same manner. Home/hybrid work arrangements are not substitutions for, or part of, the accommodation for employees with disabilities. In cases where an employee requests this work arrangement for medical reasons or to accommodate a disability, the Town has a duty to accommodate (to the point of undue hardship). There is a separate process in place to arrange accommodation related to illness or disability facilitated through the Human Resources department. Approval Process: The Hybrid Work Model Arrangement is not an entitlement and will only be considered: i. where working off-site will not negatively impact client/ customer/ citizen service and the ability of the employee’s co-workers to perform their duties, and is operationally feasible; ii. when the employee’s work can reasonably be done off-site; iii. where the employee has demonstrated that they are self-motivated, self-disciplined, can work independently, are able to manage distractions and have the ability to meet deadlines; iv. when the overall quality and productivity of work is maintained at an acceptable level, as determined by the immediate supervisor. Where all above conditions are met, approval for participation in the Hybrid Work Model is subject to the approval of the employee’s immediate supervisor. The approval of participation in the hybrid work model is subject to operational and work-related requirements, and may be modified or cancelled as necessary at any time, at the supervisor’s discretion, with reasonable notice provided to the employee. Availability: When working at home employees must ensure availability to work and continuity of communication during the core business hours (8:00 am to 4:30 pm). The employee is responsible for maintaining effective and timely communication and workflow management with clients, co-workers, and their supervisors, including monitoring of voicemail and email as applicable. Employees must make appropriate dependent care arrangements and must manage their personal responsibilities in a way that allows them to successfully meet their job responsibilities. Page 54 of 300 6-010 Page 3 of 4 While participating in the hybrid work arrangement model, the employee’s designated remote workspace must be located within a reasonable commuting distance from the Town of Tillsonburg. Health and Safety: Town of Tillsonburg is committed to ensuring that the alternate worksite is safe and hazard free. Employees participating in the Hybrid Work Model Arrangement are required to complete a Home Office Safety assessment and the workspace must meet all the criteria detailed in the assessment. Employees must remain fit for duty during working hours. Employees cannot meet with work clients or coworkers at their home, or provide their home phone number or address for contract to conduct work business. Employees must immediately report all work-related accidents or injuries to their supervisor and in the case of a workplace injury/illness a member of Human Resources is permitted to attend their residence to perform an inspection. Additionally, the employee may be required to grant access to their residence from such authorities as the Ministry of Labour or the Workplace Safety Insurance Board (WSIB). Incidents of workplace violence and harassment must be reported by the employee to the supervisor as soon as possible. Confidentiality: Employees are responsible for protecting the confidentiality of any privileged and/or confidential Town information/documents while it is being transported to and from their home and while it is in their home. Employees are expected to follow the provisions identified in the Records Management Policy and Procedure. Responsibilities: The employee shall: a) review and understand the Hybrid Work Model Policy; b) review and understand all other applicable policies (HR, Health and Safety and IT policies) related to remote work; c) discuss and seek the approval of their immediate supervisor for participation in a hybrid work model arrangement; d) upon approval, review, agree, and sign the Hybrid Work Model Agreement; e) review the working from Home Office Safety Information Sheet; f) complete and sign the Home Office Safety Assessment; and g) Use their own work related equipment and be responsible for the maintenance and repair of that equipment including home maintenance, insurance, adequate internet, telephone connection, and utilities. The immediate supervisor shall: a) review, discuss, assess, and authorize requests for hybrid work model arrangement where appropriate; Page 55 of 300 6-010 Page 4 of 4 b) ensure that an appropriate trial period is completed and evaluated for ongoing Hybrid Work Model Arrangements and ensure that such agreements do not negatively impact on requirement business continuity or service levels; c) review and sign the Hybrid Work Model Agreement with your employee and forward the completed document to Human Resources; d) review and approve the Home Office Safety Assessment and forward the completed document to Human Resources; and e) confirm the details, changes or discontinuation of all ongoing Hybrid Work Model Arrangements with the employee in writing through the completion of a new Hybrid Work Model Agreement or a written notice to discontinue the arrangement. Page 56 of 300 Hybrid Work Model Agreement Employee information: <insert employee name> Supervisor information: <insert supervisor name> Department: <insert department name> Position title: <insert position title> Position title: <insert position title> Agreement effective: <insert effective date> Expiry date: <insert end date> Note: Initial agreement to be a maximum of six (6) months. Subsequent agreements must be renewed annually. The following terms have been agreed upon concerning the employee’s request to work from home as detailed in the work schedule below. Work Schedule Day of the Week Hours of Work Work Location Monday <input> <input> Tuesday <input> <input> Wednesday <input> <input> Thursday <input> <input> Friday <input> <input> Page 57 of 300 Saturday <input> <input> Sunday <input> <input> The home office location of the employee is: Home office address: <address> Home office contact information if different from Town contact information: <fillable field> Terms and Conditions 1. The employee has reviewed and understand the Hybrid Work Model Policy and all other applicable policies pertaining to remote work. 2. The employee and supervisor will have regular discussions about work priorities and other matters that relate to the work and this agreement. 3. The employee will maintain a regular contact schedule with their supervisor. As a minimum, contact will be made <how often and when>, by <list preferred methods and contact details>. 4. By agreeing to this arrangement, the employee confirms that they have a dedicated space in their place of residence where they can uninterruptedly perform their duties. 5. The supervisor and employee agree on the following related to equipment and resources: a. Provided by the employee:  <list> b. Provided by the employer:  <list> The Town will not be responsible for any operating costs that are associated with the employee using his or her home as an alternative worksite, including home maintenance, insurance, or utilities. 6. It is the employee’s responsibility to consult with an insurance agent for any coverage/payment implications due to working from home. 7. The employee will require access to Town systems through high-speed internet service and the virtual private network (VPN). The employee will be responsible for the monthly cost of this high-speed internet connection. 8. The employee must comply with all the Town’s guidelines/tips pertaining to the use of computer hardware and software, including, but not limited to:  Install Operating System and Software Updates Page 58 of 300  Protection of Password  Be Cautious of Using Email/Internet and Email Spam/ Phishing  Sending Restricted Data  Do Not Download or Install Unsolicited Files  Avoid Peer to Peer File Sharing  Lock Your Computer or Log off  Securing Confidential Electronic Data 9. All communication must be through a Town email and a Town provided mobile phone or using a phone number through Bell Total Connect. 10. When working from home, the employee is responsible for setting up and maintaining a designated workspace that meets workplace health and safety requirements. See the Health and Safety Assessment checklist that forms part of this agreement. 11. All work-related, in-person meetings are not permitted to take place at the employee’s residence. The employee must not provide their home phone number or address for contact to conduct work business. 12. Employees who must attend virtual meetings will be prepared to keep their camera on for the duration of the meeting and their appearance must adhere to the Town’s dress code. 13. The employee is solely responsible for any loss or damage to any Town property in their possession, including property while being transported to and from their home and for property in their home, whether in the designated work area or otherwise, except for normal wear and tear. a. Should there be any loss or damage to any Town property while in their possession, the Employee must notify their supervisor as soon as this is known. 14. The Town will not be held liable for any damages to an employee’s property or for any injuries to family members, visitors, or others in the employee’s home. 15. The employee is responsible for protecting the confidentiality of any privileged and/or confidential Town information while it is being transported to and from their home and while it is in their home. Specific provisions agreed to by the Employee and the Supervisor include: <details> 16. The employee may be required, in order to meet workplace needs, to forfeit their option to work from home on the day(s) they have been designated to work from home under this arrangement. The Supervisor will make every effort to provide adequate notice of any such requirement. 17. The employee will continue to perform the duties of their position and will be expected to continue meeting the requirements of their position during this arrangement. 18. The employee will continue to follow current protocol for leaves of absence. This includes: Page 59 of 300 a. Vacation requests b. Sick Leave requests. If an employee is unable to carry out the duties of their position, when working at home, due to illness or injury, they will follow normal protocol for reporting the absence. c. Other personal absences that the employee is entitled to. Vacation days cannot regularly be used to as a mechanism to avoid attending the workplace on scheduled in-office days. 19. The employee’s employment will continue to be bound by the employee’s employment agreement and all applicable Town policies, procedures, and practices. 20. This arrangement will continue to be subject to operational and other work-related requirements, and may be modified or cancelled as necessary at any time at the employer’s discretion, with reasonable notice provided to the employee. 21. Employees may request a cancellation or change; however it is within the employer’s discretion to approve the cancellation or change. 22. The employee will report all work-related accidents or injuries immediately to their supervisor. 23. Incidents of workplace violence and harassment must be reported by the employee to the supervisor as soon as possible. Employee Signature: ______________________ Date: ________________ Supervisor Signature: ______________________ Date: _________________ Page 60 of 300 Part B: Home Office Safety Assessment Checklist Department Inspected By (Employee Name) Location (Employee Address) Date Inspected The employee:  completes parts A through F of the checklist  submits the checklist to the supervisor The supervisor:  signs and forwards a copy of the checklist to Human Resources Human Resources:  signs and retains a file copy Workplace conditions Considerations Response Action Required/Comments Floors  Free of trip, slip and fall hazards  Free of protrusions, loose tiles, torn/ ripped carpets <yes/no> Stairs  Handrail installed and in good condition  Clear and unobstructed <yes/no> Exits  Clear and unobstructed  Outside landings, walkways clean <yes/no> Lighting  Walking/working areas adequately illuminated <yes/no> Ergonomics  Employee knows and uses ergonomic principles at their workstation as outlined in Setting up the Home Office. <yes/no> Equipment/Furnishings  In safe operating condition <yes/no> Page 61 of 300 Electrical Considerations Response Action Required/Comments Power cords in good condition <yes/no> Power cords used safely <yes/no> Adequate number of receptacles (No overloaded outlets) <yes/no> Receptacle plates in good condition (not broken, no evidence of shorting) <yes/no> Power bars and surge protectors plugged directly into wall receptacles (not into each other) <yes/no> Personal safety Considerations Response Action Required/Comments Do you feel safe working in your home? <yes/no> Are there any issues that the Town should be made aware of with regards to your safety while working from home? <yes/no> Fire protection Considerations Response Action Required/Comments Working smoke alarm(s) <yes/no> Working carbon monoxide detector <yes/no> Emergency procedures Considerations Response Action Required/Comments Evacuation plan established <yes/no> First aid supplies adequate <yes/no> Emergency contact numbers posted near the telephone <yes/no> Page 62 of 300 Additional comments <Additional comments from the employee> Signature of Employee Date Supervisor’s comments <Additional comments from the supervisor> Name Signature Date Once completed, please send signed documents to Human Resources. Page 63 of 300 Health and Safety in Hybrid Work Model Arrangements Health and safety considerations must be reviewed prior to determining whether or not a hybrid work model arrangement is appropriate. If all parties agree to the arrangement, the health and safety checklist must be completed and included as part of the written agreement about the arrangement. The Town is committed to creating a healthy and safe work environment. This commitment and duty also extends to Town employees who work from home. Employees are responsible for setting up an appropriate work environment within their home, which provides the same level of safety and security as the regular work office. Workplace Injuries When an employee is injured while working from home they must comply with the normal reporting requirements for any work-related accident. Employees should first treat or seek treatment for the injury, and then report the injury to their supervisor, just as they would if they were injured at the office. The Town is not responsible and assumes no liability for any injuries to family members, visitors, and others in the employee’s home. Workplace Injury Coverage (WSIB) Employees participating in a hybrid work model that are injured while working in their home offices are eligible to apply for WSIB benefits. While the WSIB assesses each case individually based on its circumstances (time, place, activity), generally the injury must have occurred in the course of employment. Disability Coverage Since the employer-employee relationship remains unchanged, the employee's access to certain benefit plans, such as disability benefits remains the same. In determining approval of the claim for disability benefits, work location is not a factor. When an employee is ill or injured Page 64 of 300 and unable to work, they must comply with the normal protocols for absences due to illness and injury. Workplace Violence All employees are required to report incidents of violence that occur in the workplace, as well as behaviours (including uncivil or harassing behaviours) that may indicate a risk of workplace violence. Work from home/hybrid employees are subject to all of the same policies and procedures and expected standards of conduct as all Town employees. Before a hybrid work model arrangement will be authorized, supervisors must ascertain, through the Home Office Safety Checklist whether the proposed remote workplace is a safe environment. The agreement will not be approved if the supervisor determines that there is a predisposed risk of violence to occur. Supervisors can contact Human Resources for assistance is assessing the risk. If an employee reports an act of violence or threat of violence, supervisors must notif y Human Resources. A decision will be made, based on the risk, whether or not the work from home/hybrid agreement should be continued. If you ever have an immediate fear for your safety, call the police at 911. Working Alone When an employee is working at home, they are often working alone. Working alone under certain circumstances can increase the risk to health and safety. To address these circumstances, Human Resources has established Working Alone Guidelines. Under these guidelines, working from home is classified as low risk. However, the employee and supervisor should establish a contact schedule. This schedule should be laid out in the agreement, and include who to contact, when contact will be made, and the preferred method of communication. Meeting Visitors For health and safety reasons, employees cannot have work meetings with clients or others in their homes. Setting Up the Home Office Since a lot of time will be spent working in a home office, employees must make sure it’s a comfortable, healthy and safe environment. The main criteria for a home-based office are comfort, function, health, safety, accessibility, and privacy for disturbance-free professionalism. The employee is expected to use their own equipment and they are responsible for the maintenance and repair of that equipment. The Town will not be responsible for any costs that are associated with the employee using their home as an alternative worksite; for example, home maintenance, insurance, internet or telephone connection, or utilities. Page 65 of 300 In the exceptional circumstances where the Town provides equipment for the employee working from home, the Town will assume the responsibility for normal maintenance and repair of that equipment subject to appropriate use. Below are some common considerations in setting up a home office. For additional assistance, please contact Human Resources. Work Surface You will need a desk or table that’s large enough to hold the materials used for your work. Having a work surface that is too high or too low can affect your overall posture and body positioning, and can cause undue strain and aches. The chair and/or work surface height should be adjusted according to each individual’s body specifications and type of work performed. Chair Make sure you have a comfortable chair – this is probably your most important piece of work furniture. The seat should be adjustable, have a backrest shaped to support your lower back, and a swivel mechanism to avoid twisting. Try to find a chair with castors (wheels), for easy movement, and a non-slip, breathable seat fabric. Lighting Make sure your home office has good lighting. Lighting is rated as a top environmental factor affecting productivity. Good lighting can help avoid eye fatigue and shadows that hamper work and can contribute to stiffness and aches in the shoulder and neck area if trying to read something under poor lighting conditions. Ventilation Choose a well-ventilated room that can be maintained at a comfortable temperature year-round. Equipment and Electronics Avoid dangerous electrical practices such as overloading circuits or modifying three-prong plugs to fit two-prong outlets. There is also a risk of data loss without suitable power circuitry and surge protection to guard electronic equipment from power surges and blackouts. When you arrange your home office workspace, locate equipment so that you don't have power cords and telephone lines trailing across the floor and creating hazards. If you must move the equipment around, do it carefully so you don't hurt yourself – or damage your equipment. Remember that not all components of your office need to be in the same room, or space, as long as everything is conveniently located. Communications Tools Maintaining communication is an integral part of a successful work from home/hybrid arrangement. Consider the importance of tools such as voicemail, email, electronic calendar, laptop computers, remote internet access, shared electronic folders and files, flash drives, and cell phones, and ensure you know how to use them. Page 66 of 300 Secure Storage If you work with confidential information at your home office, you need to ensure that you have secure storage to protect this material and reduce the risk of loss to the Town. Page 67 of 300 Page 1 of 5 Subject: Return to Work – Hybrid Model Pilot Project for Town staff Report Number: CAO 21-10 Department: Office of the CAO Submitted by: Kyle Pratt, Chief Administrative Officer Meeting Type: Council Meeting Meeting Date: Monday, August 9, 2021 RECOMMENDATION THAT Council approves a 6 month pilot project of a hybrid return to work model for Town of Tillsonburg staff from September 2021 to March 2022, and direct staff to bring back a formal policy for Council consideration regarding a hybrid work model. BACKGROUND After managing over 17 months of working from home due to COVID-19 restrictions, it is evident that the duties and responsibilities of a number of staff can be successfully accomplished through the use of a hybrid model of working both on-site and remotely. Through the incorporation of an on-site staffing schedule at both the Customer Service Centre and the Corporate Offices, we have been able to maintain adequate offi ce coverage to ensure that there has been no decrease in the level of service offered to the public when our locations have been open. With the use of technology, such as Cisco Any Connect, WebEx, Zoom, Bell Total Connect, we have been able to effectively and efficiently virtually conduct interviews, complete onboarding of new staff, and hold Corporate wide, department, inter- department, and public meetings, and attend conferences and seminars. The Town of Tillsonburg has staff located within eight different locations, with the majority of staff at the Customer Service Centre, Corporate Offices, Public Works Building, and the Tillsonburg Community Centre. This has led to several departments being disconnected functionally and, as a result of this, a large portion of staff do not regularly interact with each other in person, aside from any pandemic restrictions. In March/April of 2021, the Town Hall Planning Committee conducted a staff survey regarding remote work arrangements. Highlights and summary information from the survey include:  70% of Administration staff responded; 30% of Operations Staff responded  Administrative roles were more likely to be able to work from home Page 68 of 300 CAO 21-10 Page 2 of 5  86% of Administration respondents jobs would allow them to work remotely  26% of Administrative respondents prefer to work remotely; 66% of Administration respondents prefer to work remotely part of the time and 8% of Administration respondents to not prefer to work remotely.  80% of Administrative staff are Very Satisfied or Satisfied with their remote work arrangements.  100% of Administrative staff respondents advised that they are equally (49%) or more productive (51%) working remotely.  53% of Administrative staff respondents advised that they could work remotely 5 days a week.  80% of Administrative staff respondents advised that they would prefer to work remotely 3-5 days a week (5 days – 22%; 4 days – 22%; 3 days – 36%)  84% of Administrative staff respondents advised that if a decision was made that employees working remotely must establish their own dedicated workspaces, at their costs, they would still be interested in working remotely.  Administrative staff respondents advised that the top three (3) advantages to working remotely are: o Less distractions (78%) o Better work-life balance (63%) o Reduced commuting time/costs (63%) o Increased productivity/performance (60%)  Administrative staff respondents advised that the top three (3) disadvantages to working remotely are: o Self-isolation (35%) o Difficulty communicating with co-workers (31%) o Inability to separate work life and home life (21%)  Administrative staff respondents advised that if enrolled in a remote work model, 65% were willing to share a workspace, with 8% having no preference. Implementing a hybrid model will assist the Corporation in improving employee morale, retaining and attracting top talent as there is an increasing trend in candidates seeking remote work options; the potential for decreased operating/capital expenses with regard to the Town Hall project; and decreased absenteeism among employees as a hybrid model would allow for flexibility in the workplace when it comes to family responsibilities . As a result, a hybrid model for positions that can be successfully fulfilled with a remote and office mixture is an attractive opportunity and will attract certain talent that want to limit commute time and balance child-care needs. Studies have shown that the newer generations entering the workforce, prefer a more flexible work environment. We are seeing a surge in residential growth in our Town, and being recognized in Maclean’s magazine recently with respect to being one of the top 25 places in Canada to live and work remotely provides further evidence that there is a growing trend and demand in the Page 69 of 300 CAO 21-10 Page 3 of 5 option for remote working. By being able to accommodate such hybrid arrangements, the Town of Tillsonburg will be better prepared for the future workforce. SPACE NEEDS Council is aware that we are currently undergoing a space needs study to evaluate the future footprint of the Town of Tillsonburg office/space requirement s. A hybrid work from home/in office model will reduce the physical footprint needed and result in cost savings for an updated Town Hall location/re-model. While acknowledging there are several positions that are unable to complete their duties while working from home, there are many positions that are able to complete their duties from, while being more productive. FABRIK consultants are currently reviewing our staff survey and options for a new Town Hall, while gathering further data and they will be preparing recommendations later this fall. Council is also aware that we have received funding under the Municipal Modernization Grant to do further studies on space needs. The Town Hall Planning Committee will need to digest the information and make recommendations to Council. OTHER MUNICIPAL MODELS There are other local municipal hybrid work model precedents to be considered. For example, The Township of Zorra piloted an 8 month project involving a compressed work week. Staff work a 4 day work week based on a team schedule to ensure coverage in all departments 5 days a week between the hours of 8 am to 5 p.m. The result was a 12.5 % increase in the hours open with no additional cost to tax-payers. In May 2021, the Town of Aylmer has followed suit and implemented a 4 day work week for their staff. The City of Brantford has developed a Centralized Office and Work from Home Model which has resulted in savings of $21.57 million in 10 year capital needs and $1.12 million in annual operating savings for administrative accommodations alone – divesting of another major facility and decreasing leased space . The Municipality of Central Elgin has a Working from Home Program Agreement, while the Town of Pelham has an Off- Site Work Arrangement Policy. In addition, the City of Guelph has an Alternative Work Arrangement policy. CONSULTATION In March/April of 2021, the Town Hall Planning Committee conducted a staff survey regarding remote work arrangements. Page 70 of 300 CAO 21-10 Page 4 of 5 The Senior Leadership Team (SLT) met on July 21, 2021 to discuss feasible options for a return to work. After discussion, the SLT team agreed on a 3:2 hybrid model, with 3 being the maximum number of days any staff could work from home and 2 being the minimum number of days to work on-site. While some departments feel they could still fulfill all work obligations with a 4:1 ratio, the majority of the SLT thought the 3:2 ratio would provide the advantages of remote work options, while addressing the concerns of social isolation and adequate scheduling/coverage. The Manager of Human Resources was consulted regarding this staff report and the development of a Remote Work Policy. DISCUSSION Staff is looking for direction from Council to approve the implementation of a pilot hybrid work from home model from September 2021 (after Labour Day weekend) to March 2022. Staff intend to gather data from both the Space Needs project and the Town Hall Planning Committee to pave the way for a future policy regarding Work from Home arrangements. FINANCIAL IMPACT/FUNDING SOURCE There are no immediate financial considerations with respect to staff working from home. Any purchases for home offices has already occurred and been entirely or substantially covered through the COVID financial relief from upper-tier governments. COMMUNITY STRATEGIC PLAN (CSP) LINKAGE 1. Excellence in Local Government ☒ Demonstrate strong leadership in Town initiatives ☐ Streamline communication and effectively collaborate within local government ☒ Demonstrate accountability 2. Economic Sustainability ☐ Support new and existing businesses and provide a variety of employment opportunities ☐ Provide diverse retail services in the downtown core ☐ Provide appropriate education and training opportunities in line with Tillsonburg’s economy 3. Demographic Balance ☒ Make Tillsonburg an attractive place to live for youth and young professionals ☒ Provide opportunities for families to thrive ☐ Support the aging population and an active senior citizenship 4. Culture and Community Page 71 of 300 CAO 21-10 Page 5 of 5 ☐ Promote Tillsonburg as a unique and welcoming community ☐ Provide a variety of leisure and cultural opportunities to suit all interests ☒ Improve mobility and promote environmentally sustainable living ATTACHMENTS None. Page 72 of 300 Subject: Outdoor Patio Program Report Number: CS 22-08 Department: Corporate Services Department Submitted by: Director of Corporate Services Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION That a Patio Program on Municipal Property be established in Tillsonburg; And further that staff be directed to work with the BIA on establishing criteria on patio design standards for those businesses wanting to use municipal property for their patios. BACKGROUND With the pandemic and capacity restrictions placed on restaurants and at the request of BIA, the Town approved a pilot program for outdoor patios in 2000 and 2001. Staff used the encroachment program along with draft guidelines to process requests from restaurant owners who wanted to use municipal space for their patios. DISCUSSION Council as well as the BIA has expressed an interest in continuing on with this type of a program and various staff departments have reviewed the process in light of these requests. Staff feels that the encroachment process should continue to be the process for the receipt of and review/approval of any patios on municipal property. Currently, the cost for the encroachment application fee is $25. Other municipalities that support the use of municipal property for patios charge a fee based on the square footage of the space required. The City of Stratford for example, charges a fee of $2.60 per square foot for use of the municipal property. Staff believes that a fee should be charged but in discussing this matter with the BIA, they have asked Page 73 of 300 that those charges not be collected for this patio season as the financial effects of COVID is still impacting the restaurant sector. Feedback from the Accessibility Advisory Committee asked staff to consider keeping the sidewalk open for the use of pedestrian traffic rather than using a pedestrian by- pass which can create unstable surfaces for pedestrians. Staff agrees with this recommendation and will incorporate this into any outdoor patio planning. It should be noted that this program applies to a spring, summer, fall season and staff are suggesting that no permanent fixtures be installed on municipal property. Some municipalities have piloted a polar patio program in the winter months and this can be explored if Council would like staff to do so. In anticipation of COVID no longer being with us and with capacity limits returning to normal, staff is unsure of the interest of a polar patio program following COVID but will discuss further with the BIA. During our discussions with the BIA, it was suggested that some additional guidelines be provided by the Town as it relates to the downtown or Broadway area as it is important to ensure traffic flow for both vehicles and pedestrians. As a result, the engineering department has provided a document that helps to delineate where patios might be placed on municipal property on Broadway to help ensure safety for everyone. Another operational question that came up in speaking with the BIA was a guideline document for the patio infrastructure (perimeter barriers, greenery, flowers) that can be permitted in the downtown (Broadway) so that there is some consistency. If/when the overall program is approved by Council, then staff can work with the BIA on a guidelin e document that is found in other municipalities. CONSULTATION BIA, Engineering, Roads, Building departments. FINANCIAL IMPACT/FUNDING SOURCE N/A CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☒ Lifestyle and amenities ☐ Customer service, communication and engagement ☒ Business attraction, retention and expansion ☐ Community growth ☐ Connectivity and transportation Page 74 of 300 ☐ Not Applicable Does this report relate to a specific strategic direction or project identified in the Community Strategic Plan? Please indicate section number and/or any priority projects identified in the plan. Goal – Within the community, Tillsonburg will strive to offer residents the amenities, services and attractions they require to enjoy a balanced lifestyle; and also attract and retain a diverse range of businesses, creating employment opportunities for residents and a balanced tax base. Strategic Directions – Facilitate the enhancement and diversification of retail and dining opportunities in the downtown and supporting local businesses in post COVID -19 recovery. Ongoing Projects – Continued support for BIA and town-wide businesses during COVID-19 recovery. ATTACHMENTS Appendix A – Outdoor Patio/Encroachment on Municipal Property Guidelines Appendix B – Broadway Daylighting Diagram Page 75 of 300 Page 1 of 4 Outdoor Patios/Encroachment on Municipal Property Guidelines The Town of Tillsonburg allows downtown eating establishments or coffee shops to establish temporary seasonal patios by using on-street parking spaces along municipal streets which have curb side on street parking as well as in municipal parking lots. The outdoor patio season is established between April 15th to November 1st *. (*May be permitted earlier at the Town’s discretion depending on weather and completion of required maintenance) All outdoor patios must be designed and constructed to the satisfaction of the Town of Tillsonburg. The patio structure must be maintained at all time to be safe and in good condition, periodic inspections by Town staff may be conducted and any required corrections or modifications will be made by the Patio owner. LOCATION  Permitted only on streets with existing on-street parking or in municipal parking lots.  Curb side patios shall be permitted only where the outdoor patio installation can be located directly in front of the associated business; however, the Town may, in their sole and absolute discretion, consider other locations in proximity to the business should there be extenuating circumstances.  Parking lot outdoor patios will be permitted only where a municipal parking lot is located adjacent to the associated business.  Curb side patios should be located at least one (1) parking stall away from an intersection unless approved with alternative solutions.  Proposals will be assessed and approved in accordance with vehicle volumes, sightlines and visibility including but not limited to appendix B attached and also to the satisfaction of Town staff. Page 76 of 300 Page 2 of 4  Proposals must not obstruct underground utility access, electrical transformer vaults, utility boxes, loading zones, transit stops and other infrastructure  Proposals must avoid conflicts with existing pedestrian crossings.  Jersey barriers may be requested to assist with delineation of the patio area and also to support with separation between the patio and vehicular traffic. DESIGN STANDARDS  All parts of the outdoor patio must adhere to Ontario Regulation 191/11 Integrated Accessibility Standards Part IV.1 Design of Public Spaces Standards.  Where there are residential dwellings in the same building the outdoor patio should not interfere with the ability of first responders to access the building.  Any outdoor patio deck or sidewalk by-pass design will vary depending on the slope of the street and the overall design of the structure. The sub-structure must accommodate the crown of the road and provide a level surface f or the patio.  Any gates must swing into the patio space and not obstruct the sidewalk  Tables shall not exceed a height of 0.865 metres (34”) above the finished floor of an outdoor patio.  No umbrellas or other treatments can extend into the sidewalk or travelled portion of the roadway.  Any lighting will be subject to review and shall be designed and installed in such a way as to not create a visual or physical distraction to the travelling public on the sidewalk or roadway.  The outside edge of the outdoor patio must be at least 0.5m (20”) from the travelled portion of the roadway, creating a 0.5m (20”) clear zone.  At each end of the parking space, wheel stops must be placed 1.2m (48”) from the edge of patio to provide a buffer from the next parking stall.  Proposals must have vertical elements that that are at least 1.2m (48”) high that make them visible to traffic, such as flexible posts or bollards or landscape planters and include reflective elements so as to be visible by traffic at night. These elements should be placed 0.5m (20”) from both corners of the outdoor patio and be in line with the edge of the patio that is parallel to the travelled portion of the roadway.  The patio surface must be designed for easy removal and to prevent damage to the underlying infrastructure. The applicant’s plan for affixing wheel stops and flexible reflective posts must be included as part of the application package and requires acceptance by the Town.  Guardrails or Railings must be present on at least the three sides of an outdoor patio located within an on-street parking area and shall be constructed to the following specifications: o must be a minimum of 0.91m (36”) and no higher than 1.07m (42”) in height. Page 77 of 300 Page 3 of 4 o must be designed and attached in a manner to resist a concentrated load at any point of not less than 1 kN, and, o must be designed and attached in a manner to resist a uniformly distributed load of 0.75 kN/m.  The outdoor patio must not interfere with proper drainage of the roadway (curbs/catch basins in the immediate area must be free of obstructions)  Any necessary maintenance completed by the Town will be at cost of staff time plus administration. COPY OF CURRENT LIABILITY INSURANCE  General Liability Insurance from an insurer licensed in the Province of Ontario for $2 million per occurrence with an aggregate limit of no less than $5 million to the Town of Tillsonburg against any liability for property damage or personal injury, negligence including death which may arise from the applicant’s operations under this agreement. The Town of Tillsonburg must be included as an “Additional Named Insured”. In addition, the Commercial General Liability shall contain Cross Liability and Severability Clauses and Products & Completed Operations coverage including a standard contractual liability endorsement. ADDITIONAL CRITERIA  Any outdoor patio arrangement must accommodate 2m physical distancing (if required) within the proposed layout.  Smoking shall be prohibited on any outdoor patio, pursuant to the Smoke -Free Act with ‘no smoking’ signage posted at the entrance/exit.  Applicants must provide notice to adjacent business neighbours of their proposals.  Applicants accept responsibility for any and all damages that occur to the platform or patio and associated fixtures and chattels.  Electrical power cords or any device that crosses the travelled portion of the sidewalk will not be permitted.  All eating establishment or coffee shop must provide a minimum of 6 non- alcoholic menu items.  Outdoor food preparation will not be permitted  Business owners interested in obtaining a liquor license for the outdoor patio will require license approval from the AGCO. This is a separate process to be undertaken by the applicant.  Businesses are required to maintain the occupied space free of litter and debris during occupancy and immediately after the structure is removed.  The Applicant agrees to comply with the hours of operation established in any subsequent lease agreement. Page 78 of 300 Page 4 of 4  Upon completion of any work, the Applicant agrees to restore the property at its expense to the satisfaction of the Town of Tillsonburg and to remove all debris and rubbish.  Outdoor patios shall comply with all applicable Town By-laws.  The Town of Tillsonburg reserves the right to cancel the lease of any municipal space at any time for failure to comply with the conditions described above. APPLICATION REQUIREMENTS Please follow the steps below to submit an application;  Prepare plans and drawings of the proposed outdoor patio installation(s) with dimensions in accordance with the criteria outlined above.  Complete the on-line Encroachment Permit Application https://governmentevolved.com/encroachment.html APPROVAL PROCESS ****It is recommended that each restaurant/café book a consultation with the Town – please contact the Chief Building Official Geno Vanhaelewyn at gvanhaelewn@tillsonburg.ca or 519-688-3009 Ext. 4601********** Step 1 – Submit your Encroachment Permit application, as noted above. Step 2 – Revise application in response to staff comments, as necessary. Step 3 – Clear conditions of approval. Step 4 – Construct outdoor patio installation(s). Step 5 – Contact Town staff re: inspection prior to use. Step 6 – Obtain final approval. All applications submitted will be reviewed/approved by Town staff. Page 79 of 300 T.L.MUN NO. 247MUN NO. 248MUN NO. 200MUN NO. 239MUN NO. 200MUN NO. 2MUN NO. 199MUN NO. 191MUN NO. 187MUN NO. 161MUN NO. 165MUN NO. 169MUN NO. 175MUN NO. 179MUN NO. 183MUN NO. 160MUN NO. 157TOWN OF TILLSONBURGP1OPERATIONS SERVICESENGINEERING DEPARTMENTTOWN OF TILLSONBURG1 of 2CONTRACT NUMBROADWAY STREETBRIDGE STREETWEST BRIDGE STREETEASTWASHINGTONGRAND AVE BROADWAY STREETBROADWAY STREET MATCHLINE A-A MATCHLINE A-ABROADWAY STREET RIDOUT STREET WEST RIDOUT STREET EAST BROADWAY STREET MATCHLINE B-BOUTDOOR PATIO PROGRAMBROADWAY STREETPage 80 of 300 MUN NO. 160MUN NO. 156MUN NO. 154MUN NO. 152MUN NO. 146MUN NO. 138MUN NO. 132MUN NO. 128MUN NO. 126MUN NO. 122MUN NO. 118MUN NO. 114MUN NO. 110MUN NO. 102MUN NO. 157MUN NO. 149MUN NO. 147MUN NO. 141MUN NO. 135MUN NO. 129MUN NO. 127MUN NO. 121MUN NO. 111MUN NO. 80MUN NO. 86MUN NO. 88MUN NO. 92MUN NO. 94MUN NO. 68MUN NO. 71MUN NO. 75MUN NO. 77MUN NO. 79MUN NO. 81MUN NO. 85MUN NO. 87MUN NO. 91MUN NO. 95MUN NO. 93TOWN OF TILLSONBURGP2OPERATIONS SERVICESENGINEERING DEPARTMENTTOWN OF TILLSONBURG2 of 2OUTDOOR PATIO PROGRAMCONTRACT NUMBROADWAY STREETBROADWAY STREETBROCK STREET WEST BROCK STREET EAST BROADWAY STREETBROADWAY STREET MATCHLINE C-C MATCHLINE C-CBROADWAY STREET OX F O R D S T R E E T MATCHLINE B-BBROADWAY STREET BALDWIN STREET Page 81 of 300 Page 1 of 8 Subject: Economic Development Strategy Update Report Number: EDM 22-07 Department: Economic Development Department Submitted by: Cephas Panschow Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION THAT the Economic Development Strategy Update be approved in principl e in accordance with the recommended prioritization from the Economic Development Advisory Committee and subject to specific items being brought forward as part of the annual Business Plan and Budget process. BACKGROUND An update to the Town’s Economic Development Strategy was first identified in the 2019 Economic Development & Marketing Business Plan with a status update on the previous strategy being provided to the Economic Development Advisory Committee in October 2019. In 2020, mdb Insight was retained to undertake the Economic Development Strategy Update. Through an extensive public engagement process that included a survey to local businesses, two workshops and interviews with business leaders, a draft strategy was prepared and staff, in consultation with the Economic Development Advisory Committee, have reviewed the document and are bringing forward for approval in principle subject to the recommendation from the Committee. DISCUSSION The Economic Development Strategy Update included the following items:  A comprehensive background review; Page 82 of 300 EDM 22-07 Page 2 of 8  An updated economic analysis; and,  Internal and external stakeholders' engagement. The Strategy recognized the need to be proactive in responding to changes in not only the local, but broader regional, provincial and national economy. The goal was to complement the Town’s broader Community Strategic Plan and other local initiatives. The Economic Analysis included in Strategy was based on the best available data at the time of it being written and the data does reflect some of the increased growth already being experienced at that time, but it does not show the full impact as that is o nly now being realized with the release of 2021 Census data (first release on February 9, 2022). Nevertheless, some of the key data points for the community are shown below. Population  The Town experienced growth of 7% over the 10 year period from 2006 to 2016, but showed nearly 6% growth over the two year period from 2016 to 2018  In 2018, Tillsonburg’s core labour force population (between 25 and 44 years) was at 20%. This is below provincial rates of 26%.  28% of the population is over 65+ years which is significantly higher than the tri-county or the province as a whole. Age & Education Profile  33% of Tillsonburg’s population had a high school degree while 23% had college, CEGEP or non-university diplomas.  Only 11% of people in Tillsonburg and the Tri-County have a university certificate, diploma or degree at a bachelor level or above, compared to 26% of people in the Province. Labour Force Trends  In 2018, Tillsonburg’s labour force by industry comprised 7,693 people.  Concentrated in manufacturing, retail trade, health care, and accommodation and food services  Labour force has been growing over the years; a 3% (net increase of 220 people) over the 2011 to 2016 census periods. More recently, from 2016- 2018, a 7% growth (net increase of 473 people) Page 83 of 300 EDM 22-07 Page 3 of 8 Manufacturing Sector Overview  The top manufacturing sub-sector for Tillsonburg is ‘Fabricated metal product manufacturing’ with a total of 10 businesses or 19% of the sector. Majority of businesses in this sector are small firms employing between 1- 19 employees  The concentration of fabricated metal product manufacturing sector also presents cluster development opportunity for the town  Machinery manufacturing is the second largest sub -sector for Tillsonburg recording 7 businesses or 13% of the sector. The majority of businesses are small businesses or sole operators  Tillsonburg is home to several major automotive companies include Adient Seating Canada Ltd (foam seating), Autoneum Canada Limited (noise insulation products), Fleetwood Metal Industries Inc (stamped metal components), Martinrea International Inc, Marwood International (stamped metal components), THK Rhythm Automotive Canada Ltd (linkages/steering components), etc. Labour Force Occupational Trends  Majority of Tillsonburg’s labour force perform sales and service occupations at 23%  Trades, transport and equipment operators and related occupations rank second highest in Tillsonburg at 17%, likely due to the high proportion of manufacturing jobs within the Town and region  Tillsonburg is a net importer of workers and is a regional provider of employment for residents from surrounding communities Business Count Data  As of December 2019, there were approximately 1,474 businesses in Tillsonburg: o 943 businesses without employees, 243 businesses (1 to 4 employees), 195 businesses (5 to 19 employees). o 17 businesses employing at least 100 employees.  Real estate and rental and leasing, construction and retail trade accounted for the highest proportion of business establishments by industry.  The concentration of businesses in accommodation and food services, finance and insurance, construction and health care industries present growth opportunities for the Town The final Economic Development Strategy contained 31 Action Items, which were then compared to Strategic Initiatives identified in the approved 2021 Community Strategic Page 84 of 300 EDM 22-07 Page 4 of 8 Plan and then further prioritized by the Economic Development Advisory Committee, which reduced the total number of Action Items to 15 as follows: Economic Development Strategy Action Items Start Date Status/Comments Continue to position and promote the Van Norman Innovation Park to secure investment in the advanced manufacturing, information technology and food processing sectors 2022 Marketing efforts will focus on 16 acre parcel Ontario site certification and Phase 2 planning in Business Plan (BP) Support local businesses to build online/e-commerce capability and capacity TBD Survey existing businesses in 2022 to determine capabilities post-pandemic and then consider for future Explore the expansion and resourcing of the Town’s CIP program to support residential development (particularly rental accommodation), the targeting of key sector investment including tourism and the continued revitalization of the downtown 2022 Not in BP, but can be undertaken in conjunction with Planning Undertake a housing needs study to address perceived gaps in inventory, affordability, and demand, in the short-term (remote workers) and long term (permanent residents) TBD Other In collaboration with Affordable/Attainable Housing Committee and County Housing Master Plan Support investment in the manufacturing sector by adopting the recommendations in the High-Tech Manufacturing Sub-Cluster Action Plan 2022 Multi-year plan to support local mfgrs with investments in technology and equipment Pursue opportunities to develop workforce training programs and tailored curriculum offerings that support on-the-job training that 2023? Based on outcome of High- Tech Action Plan start-up Page 85 of 300 EDM 22-07 Page 5 of 8 prepares local students for employment in the town’s high- priority industries Already working with high school Career Studies class to highlight local opportunities Adopt the recommendations of the 2019 Retail Gap Analysis, including the “Invest in Tillsonburg Downtown” digital and/or online marketing piece 2022 Consider refreshing data first Advocate for tourism priorities, showcasing Tillsonburg’s authentic tourism experiences and promoting these experiences to local and regional accommodation providers and tour operators 2023 Per Business Plan, will explore Airport “Fly-in Tours” in 2022 Identify and advocate for the use of existing vacant buildings and/or storefronts as temporary artist space 2024 May consider initiative with BIA and mall owner in partnership with Station Arts Centre Conduct a service delivery audit to determine the opportunities to reduce operating costs for the town and the associated reduction in development approval/permitting costs TBD Other A number of CSP Projects support service delivery enhancements including a potential new Town Hall Continue to improve online-access to and assistance of the town’s development approvals and permitting process TBD Other Review in conjunction with Operations & Development Dept Operate an innovation hub that offers on-one business in-person and virtual consultations, business plan reviews, networking events, access to online learning and seminars/workshops TBD 2025? Budget for “Pop-up” business support office included in 2022 BP. Consider partnering with private businesses Advocate for the provision of regional transit service and related infrastructure to support economic growth and workforce mobility TBD Other Future of Shortline Rail initiative led by Town/SCOR as per Business Plan Higher level efforts led by Southwestern Ontario Transportation Task Force, Page 86 of 300 EDM 22-07 Page 6 of 8 SCOR EDC and Town advocacy Fast track the Airport Site Master Plan to understand the benefits to the town and shared service agreement requirements with the neighbouring community TBD Other Being led by Operations and Development Dept Work with local developers to ensure the integration of fibre in all new development TBD Request information on known developments from Operations and Development Dept Implementation by Year Number Action Items for Completion in 2022 4 Action Items for Completion in 2023 2 Action Items for Completion in 2024 1 Action Items for Completion - TBD* 3 Action Items for Completion - TBD Other* 5 TOTAL 15 *Note: TBD (To Be Determined) Items may result in future Business Plan items CONSULTATION The Economic Development Advisory Committee has been extensively involved in the development and monitoring of the 2008 Economic Development Strategy with a status update on the completion of the action items in that strategy being received by the Committee at their October 8, 2019 meeting. An update on the process to update the Economic Development Strategy was brought forward for their input at their August 11, 2020 meeting, which was followed by a number of public engagement actions. Page 87 of 300 EDM 22-07 Page 7 of 8 The process included surveying local business leaders with the following results:  Online business survey ran from July to August 2020 with 113 responses  Majority of respondents were locally owned and operated businesses and included corporations and sole-proprietors  Respondents were from the manufacturing, retail trade, real estate, professional services, construction, health care and accommodation/food services sectors  The combined overall business satisfaction was very high at 96%.  Over the past 12 months, 24% of businesses indicated that their attitude about doing business in Tillsonburg was more positive  Respondents were either “very satisfied” or “somewhat satisfied” with: o Water availability (93%) o Local roads and streets (86%) & o Provincial roads and highways (86%)  Respondents were either ‘very dissatisfied’ or ‘somewhat dissatisfied’ with: o Availability of adequate housing (52%) o Availability of unskilled labour (48%) & o Availability of property for purchase or lease (46%) Respondents felt ‘very important’ factors were:  Support for small business (63%)  Downtown revitalization (54%) &  Promotion and marketing of Tillsonburg (54%) Over 20 people participated in the two workshops held on September 17, 2020 (hybrid format). A summary of the Economic Development Strategy was brought forward to the Economic Development Advisory Committee at their March 8, 2021 meeting with discussion regarding prioritization of the 31 Action Items taking place at meetings on May 11, 2021, July 13, 2021, September 14, 2021, October 12, 2021 with following resolution at their January 11, 2022 meeting: THAT the Economic Development Advisory Committee recommends to Council that the Updated Economic Development Strategy be adopted in principal with the 31 Action Items reduced to 15 based on the review of Community Strategic Plan priorities Page 88 of 300 EDM 22-07 Page 8 of 8 FINANCIAL IMPACT/FUNDING SOURCE There is no financial impact related to the recommendation contained in this report. Funding sources for future initiatives will be brought forward as part of the Town’s annual Business Plan and Budget process. Some items have been included in the approved 2022 Business Plan and Budget. CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☐ Lifestyle and amenities ☐ Customer service, communication and engagement ☒ Business attraction, retention and expansion ☐ Community growth ☐ Connectivity and transportation ☐ Not Applicable Does this report relate to a specific strategic direction or project identified in the Community Strategic Plan? Please indicate section number and/or any priority projects identified in the plan. Goal – Through community and regional partnerships, Tillsonburg will attract and retain a diverse range of businesses, creating employment opportunities for residents and a balanced tax base. Strategic Direction – An updated Economic Development Strategy supports all of the Business Attraction, Retention and Expansion Strategic Directions Priority Project – Immediate Term - Economic Development Strategy update ATTACHMENTS Overview Presentation Economic Development Strategy Update Economic Baseline Analysis Page 89 of 300 Economic Development Strategy Update March 14, 2021 Page 90 of 300 2 Outline •Economic Base Analysis •Stakeholder Consultation •Business Survey Responses •Goals and Recommended Action Items Page 91 of 300 3 Economic Base Analysis Page 92 of 300 4 Historic, Current and Projected Population Change Year Tillsonburg Oxford County Tri-County Ontario 2006 14,822 102,756 295,919 12,160,282 2011 15,301 105,719 302,298 12,851,821 2016 15,872 110,862 309,627 13,448,494 2018 16,749 117,520 326,595 14,256,800 2023 17,341 123,106 335,454 14,929,100 2028 17,909 128,718 344,123 15,633,200 % of Population Change (2006-2016)7.1%7.9%4.6%10.6% % of Population Change (2016-2018)5.5%6.0%5.5%6.0% % of Population Change (2018-2023)3.5%4.8%2.7%4.7% % of Population Change (2023-2028)3.3%4.6%2.6%4.7% % of Population Change (2006-2028)21%25%16%29% Source: Statistics Canada, 2011 Census of Population. Statistics Canada, 2016 Census of Population. 2018 Manifold Data Mining Inc. NOTE: Initial 2021 Census Release indicates that Tillsonburg is now experiencing a much higher level of growth at 17.3% from 2016 to 2021! Page 93 of 300 5 Population by Age -Tillsonburg vs Comparators 15% 10%10%10% 12% 14% 28% 17% 12%11%11% 13% 16% 19% 16% 12%13%13% 14%14% 17% 0% 5% 10% 15% 20% 25% 30% 0-14 15-24 25-34 35-44 45-54 55-64 65+Percentage of Total PopulationAge Groups (years) Tillsonburg Tri-County Ontario Page 94 of 300 6 Median Housing Income $52,228 $58,418 $62,375 $61,668 $69,825 $77,262 $66,358 $74,287 $79,939 $- $20,000 $40,000 $60,000 $80,000 $100,000 2010 2015 2018Median Household Income ($)Tillsonburg Tri-county Ontario Page 95 of 300 7 Education 26% 24% 18% 33% 30% 27% 3% 4% 3% 3% 5% 3% 23% 25% 21% 1% 2% 2% 11% 11% 26% 0%10%20%30%40%50%60%70%80%90%100% Tillsonburg Tri-County Ontario Educational Attainment (%) No certificate, diploma or degree Secondary (high) school diploma or equivalency certificate Trades certificate or diploma Certificate of Apprenticeship or Certificate of Qualification College, CEGEP or other non-university certificate or diploma University certificate or diploma below bachelor level Page 96 of 300 8 Labour Force Commuting Patterns Labour force population aged 15+ years by industry subsectors (NAICS) Residents working IN Tillsonburg Tillsonburg resident ‘working outside’ Tillsonburg (A) Non-residents ‘working in’ Tillsonburg (B) B-A = Net Import (+)/Net Export (-) Total 3,315 2,710 4,215 1,505 336 Transportation equipment manufacturing 525 480 1,020 540 722 Food services and drinking places 295 150 180 30 561 Administrative and support services 145 55 90 35 611 Educational services 125 125 125 0 541 Professional, scientific and technical services 95 85 130 45 445 Food and beverage stores 170 90 30 -60 238 Specialty trade contractors 85 70 85 15 621 Ambulatory health care services 135 65 170 105 Page 97 of 300 9 Place of Work -Residents 22% 11% 11%10% 5% 4% 3% 3% 2% 2%1% 13%Norfolk County London Woodstock Ingersoll South-West Oxford Norwich Bayham St. Thomas Haldimand County Brantford Aylmer Rest of communities Page 98 of 300 10 Place of Residence –In-commuters 38% 14%9% 8% 6% 5% 4% 3% 3%3%1%1%3% Norfolk County Bayham Norwich South-West Oxford London Malahide St. Thomas Ingersoll Woodstock Aylmer Thames Centre Brant Page 99 of 300 11 Employment Trends: Ingersoll Tillsonburg & Woodstock 17,130 25,430 38,700 9,570 8,580 10,800 - 10,000 20,000 30,000 40,000 50,000 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046Employment (number)Woodstock Tillsonburg Ingersoll Page 100 of 300 12 Total Businesses in Tillsonburg (2019) Total Businesses Without employees With employees Businesses with Employees (Range) 1-4 5-9 10-19 20-49 50-99 100-199 200-499 500 + 1,474 943 531 243 114 81 59 17 12 5 - 100%64.0%36.0%16.5%7.7%5.5%4.0%1.2%0.8%0.3%0% Page 101 of 300 13 Concentration/Percentage of Mfg Sector Comparison (2019) Page 102 of 300 14 Summary –Economic Base Analysis •The 25-44 age cohort has not seen a rate increase between the two census periods and 2018, which may suggest a trend towards a future skills gap •Household income is comparatively lower than Tri- County and the Province but did see a 16% rate of increase ($10,147) from 2011 to 2018 •Tillsonburg’s largest income brackets are the $20,000 to $39,999 bracket, representing 30% of total income groups, and the $40,000 to $59,999 bracket, which represents 21% of total household incomes Page 103 of 300 15 Summary –Economic Base Analysis •Monitor changes in the manufacturing sector as it is a critical employer within the community accounting for nearly one-fourth of total jobs •Given the anticipated impact of COVID-19 on the retail and accommodation and food services sectors, more support may be required to ensure the long-term sustainability of these sectors and a return to work for the 1,500 people employed in these sectors Page 104 of 300 16 Summary –Economic Base Analysis •Finance and Insurance sector accounts for 7% of all businesses in Tillsonburg, which is a slightly larger percentage than the comparator communities •Accounting , tax preparation, bookkeeping and payroll services is the largest sub-sector within Tillsonburg, recording 20 businesses or 20% of the total sector and is at a comparative strength recording a LQ of 1.98 Page 105 of 300 17 Stakeholder Consultation •What is the greatest opportunity for Tillsonburg to sustain the growth of the local economy over the next 5 years? •What challenges are limiting economic growth in Tillsonburg? •Where does the town need to focus its efforts on over the next 18-24 months? Page 106 of 300 18 Business Survey Responses •113 Respondents •96% overall business satisfaction •Support needed: •24% Financial grants/cash flow •13% Information and leadership •12% Property tax assistance •Very satisfied or somewhat satisfied with Water Availability (93%), local roads/streets (86%) and Provincial roads/highways (86%) Page 107 of 300 19 Business Survey Responses •Very dissatisfied or somewhat dissatisfied with Availability of housing (52%), Availability of Unskilled labour (48%), Availability of property for purchase or lease (46%) •Very important factors: •Support for small business (63%) •Downtown revitalization (54%) •Promotion and marketing of Tillsonburg (54%) Page 108 of 300 20 Goals and Recommended Action Items Page 109 of 300 21 Goals and Objectives •Goal 1: Enable a Tech-based Business Environment (11 Actions) •Foster a business environment that supports the expansion and sustainability of existing businesses and attracts new business investment and entrepreneurs through a commitment to innovation. •Goal 2: Create A Strong Local Brand (12 Actions) •Develop a broad regional-based value proposition to attract business, investors and residents that incorporates the specific strengths found in the town. •Goal 3: Transform to the Creative Entrepreneurial Economy (8 Actions) •Leverage the creative and cultural industries to drive innovation and economic growth of the town’s entrepreneurial economy. Page 110 of 300 22 Recommended Action Items Economic Development Strategy Action Items Start Date Status/Comments Continue to position and promote the Van Norman Innovation Park to secure investment in the advanced manufacturing, information technology and food processing sectors 2022 Marketing efforts will focus on 16 acre parcel Ontario site certification and Phase 2 planning in Business Plan (BP) Support local businesses to build online/e-commerce capability and capacity TBD Survey existing businesses in 2022 to determine capabilities post- pandemic and then consider for future Page 111 of 300 23 Proposed Implementation Schedule Economic Development Strategy Action Items Start Date Status/Comments Explore the expansion and resourcing of the Town’s CIP program to support residential development (particularly rental accommodation), the targeting of key sector investment including tourism and the continued revitalization of the downtown 2022 Not in BP, but can be undertaken in conjunction with Planning Undertake a housing needs study to address perceived gaps in inventory, affordability, and demand, in the short- term (remote workers) and long term (permanent residents) TBD Other In collaboration with Affordable/Attainable Housing Committee and County Housing Master Plan Page 112 of 300 24 Proposed Implementation Schedule Economic Development Strategy Action Items Start Date Status/Comments Support investment in the manufacturing sector by adopting the recommendations in the High-Tech Manufacturing Sub- Cluster Action Plan 2022 Multi-year plan to support local mfgrs with investments in technology and equipment Pursue opportunities to develop workforce training programs and tailored curriculum offerings that support on-the- job training that prepares local students for employment in the town’s high- priority industries 2023?Based on outcome of High-Tech Action Plan start-up Already working with high school Career Studies class to highlight local opportunities Page 113 of 300 25 Proposed Implementation Schedule Economic Development Strategy Action Items Implementation Date Status/Comments Adopt the recommendations of the 2019 Retail Gap Analysis, including the “Invest in Tillsonburg Downtown” digital and/or online marketing piece 2022 Consider refreshing data first Advocate for tourism priorities, showcasing Tillsonburg’s authentic tourism experiences and promoting these experiences to local and regional accommodation providers and tour operators 2023 Per Business Plan, will explore Airport “Fly-in Tours” in 2022 Identify and advocate for the use of existing vacant buildings and/or storefronts as temporary artist space 2024 May consider initiative with BIA and mall owner in partnership with Station Arts Centre Page 114 of 300 26 Proposed Implementation Schedule (TBD) Economic Development Strategy Action Items Implementation Date Status/Comments Conduct a service delivery audit to determine the opportunities to reduce operating costs for the town and the associated reduction in development approval/permitting costs TBD Other A number of CSP Projects support service delivery enhancements including a potential new Town Hall Continue to improve online-access to and assistance of the town’s development approvals and permitting process TBD Other Review in conjunction with Operations & Development Dept Operate an innovation hub that offers on-one business in-person and virtual consultations, business plan reviews, networking events, access to online learning and seminars/workshops TBD 2025? Budget for “Pop-up” business support office included in 2022 BP. Consider partnering with private businesses Page 115 of 300 27 Proposed Implementation Schedule (Others) Economic Development Strategy Action Items Implementation Date Status/Comments Advocate for the provision of regional transit service and related infrastructure to support economic growth and workforce mobility TBD Other Future of Shortline Rail initiative led by Town/SCOR as per Business Plan Higher level efforts led by Southwestern Ontario Transportation Task Force, SCOR EDC and Town advocacy Fast track the Airport Site Master Plan to understand the benefits to the town and shared service agreement requirements with the neighbouring community TBD Other Being led by Operations and Development Dept Work with local developers to ensure the integration of fibre in all new development TBD Request information on known developments from Operations and Development Dept Page 116 of 300 28 Action Item Summary Implementation by Year Number Action Items for Completion in 2022 4 Action Items for Completion in 2023 2 Action Items for Completion in 2024 1 Action Items for Completion -TBD*3 Action Items for Completion -TBD Other* 5 TOTAL 15 *Note: TBD (To Be Determined) Items may result in future Business Plan items Page 117 of 300 Page 118 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page i Table of Contents 1. Introduction ................................................................................................................. 1 1.1 Purpose of the Strategy ........................................................................................................... 1 1.2 Approach and Methodology ................................................................................................... 2 1.3 Policy and Planning Alignment ................................................................................................ 2 2. Current Context ............................................................................................................ 4 3. Determining Future Priorities ........................................................................................ 7 3.1 The 2008 Strategy .................................................................................................................... 7 3.2 Implementation Efforts ........................................................................................................... 8 3.3 A Shifting Economy ................................................................................................................ 11 3.4 Current Economic Development Needs ................................................................................ 16 3.5 Strategic Priorities ................................................................................................................. 20 4. Economic Development Strategy Update .................................................................... 25 4.1 Goals, Objectives and Actions ............................................................................................... 25 4.2 Action Plan ............................................................................................................................. 26 Appendices ......................................................................................................................... 34 Page 119 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 1 1. Introduction It should be noted at the onset of this report that it has been prepared during an unprecedented downturn in the global economy as a result of the COVID-19 pandemic. The Town of Tillsonburg has shown leadership in its response to the impact of COVID-19, undertaking a coordinated response with the Tillsonburg District Chamber of Commerce and the Downtown Business Improvement Area to support local businesses and rebuild the local economy. In addition, economic development professionals across Oxford County as well as the Western Ontario Wardens’ Caucus have been working together to provide a holistic approach and learn from each other on how best to sustain the region’s economy over the long term. While the short term measures contained in this Economic Development Strategy Update supports the immediate needs of Tillsonburg businesses, it also looks beyond the current economic climate and anticipates the opportunities for future economic growth and prosperity for the community. This includes building on the implementation efforts associated with the 2008 Economic Development Strategy, integrating current departmental business planning efforts and the aspirations of the community. 1.1 Purpose of the Strategy The Town of Tillsonburg approved its current Economic Development Strategy in 2008. The strategy was designed to support sustainable growth and align with the desire of stakeholders for achieving this goal. The goals and vision of the strategy also took into consideration the impact of the regional economy. It identified the opportunities that would support the growth of existing businesses and establish and attract new enterprises. It also identified the need to increase employment opportunities, and to maintain and improve the quality of life for all residents. Important among the priorities in the strategy was the need to streamline the town’s development approvals process and procedures. Similar commentary was provided during the updating of the strategy. The implementation outcomes of the 2008 strategy are viewed as having had a positive impact on the community, including support for key economic sectors, preparation of a tourism strategy, the attraction of new residential investment, a more streamlined development approvals process and a new downtown identity. In recent years, however, the local economy has seen significant change due to the nature of domestic and foreign investment and as a result of regional and provincial economic trends. The 2008 Strategy is thus being reviewed and updated to ensure that the goals, objectives and action plan reflect the shifting nature of the economy in the region and the province, as well as the current needs and aspirations of both business and community stakeholders. The Economic Development Strategy Update builds on the success of the 2008 Strategy and supports the town’s efforts in moving the economy forward, particularly as it looks to respond to the impact of the COVID-19 pandemic. The Strategy also seeks alignment with the new Community Strategic Plan that is underway by providing direction on the economic priorities that are of the greatest concern or opportunity for the town. Page 120 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 2 1.2 Approach and Methodology The Economic Development Strategy Update was initiated in January 2020 but delayed in part by the pandemic shutdown of March to May 2020. The process was led by the Town’s Development Commissioner with input provided by the Town’s Economic Development Advisory Committee (EDAC) Subcommittee at key milestones in the process. The initial phase involved a review of available background material and documents including the outcomes associated with the 2008 Tillsonburg Economic Development Strategy, the 2019 High-Tech Manufacturing Sub-Cluster Action Plan, the 2020 Phase One of Oxford County’s Comprehensive Review, and the 2021 Economic Development & Marketing Business Plan. The review provided an understanding of the current policy and economic development landscape in Tillsonburg. An analysis of Tillsonburg’s current economic and labour market indicators was also conducted using data collected from various sources. The results of the background review and economic base analysis were used to inform the stakeholder consultation process. This included an online business survey conducted between July and August 2020 that attracted over 100 participants. The results from the survey helped to build an understanding of the attitudes towards the local economy and business environment, taking into consideration the impact of the COVID-19 pandemic. In September 2020, targeted workshops were conducted with key stakeholders from the manufacturing sector and retail, commercial, and business sectors. Members of the Economic Development Advisory Committee and elected officials also participated. Input from the consultation process informed the creation of five strategic priorities that reflect the shared aspirations and goals of Tillsonburg’s residents, businesses, and community stakeholders. These strategic priorities were reviewed with the EDAC Subcommittee in early October 2020. Based on the input provided, the Economic Development Strategy Update was developed. 1.3 Policy and Planning Alignment In addition to the direction provided by the 2008 Economic Development Strategy, Tillsonburg’s current economic development framework is guided by the 2014 Community Strategic Plan and the (1995, amended 2017) Oxford County Official Plan. The Community Strategic Plan, while being updated, establishes a vision for the future that reflects community ideas and aspirations. It guides priority setting, ensuring that programs and services address the changing needs of a community, through four broad themes or Strategic Objectives, namely: ▪ Excellence In Local Government ▪ Economic Sustainability ▪ Demographic Balance ▪ Culture & Community The Oxford County Official Plan ensures conformity with Provincial land use policy and provides direction to guide and manage the extent, pattern and type of settlement that will occur in the town and the use of land and resources. The Tillsonburg Municipal Planning Strategy is a section of the Official Plan and provides general policy direction and a long-range planning framework for the town. Page 121 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 3 Key goals serve as general guidelines and include the need for expanding the existing broad industrial base by attracting modern industries, preserving the cultural and heritage features, promoting the town as one of the most attractive residential communities in Southern Ontario and maintaining and promoting the downtown. The 2020 Oxford County Phase One Comprehensive Review builds on historical growth forecasting, land needs and growth management studies in the County and will be used to inform potential updates to the Oxford County Official Plan policies and to update the growth projections referenced in the Plan. Other plans and regional strategies, including the Future Oxford Community Sustainability Plan (2015), Oxford County Action Plan & Strategy Alignment (2017), Strategic Plan for Oxford County (2015-2018) and the Future Oxford Community Sustainability Plan (2015), also focus on growing the local economy. Page 122 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 4 2. Current Context Tillsonburg has witnessed a rapidly growing and changing local economy, as evidenced by strong population and industry growth that is projected into the future. Growth in the town can be in part attributed to its strategic location as part of the Oxford, Elgin and Haldimand-Norfolk Tri-county region with access to larger centres throughout Southern Ontario including Woodstock, London, Kitchener/Waterloo, Hamilton, Toronto as well as the U.S. Industrial heartland and cities like Detroit and Chicago. Manufacturing remains a major economic driver for the town with major automotive parts companies including Adient Seating Canada Ltd (foam seating), Autoneum Canada Limited (noise insulation products), Fleetwood Metal Industries Inc (Stamped metal components), and THK Rhythm Automotive Canada Ltd (linkages/steering components – formerly TRW Canada). In recent years, Tillsonburg has attracted investment from Martinrea International Inc, Triton Innovation, Xcel Fabrication & Design Ltd, Systemair, Wise Line Metal Sales and Zelus Material handling, to name a few. Marwood International (a homegrown stamped metal components auto parts supplier) is the town’s largest employer with 450 employees and four plants located in the community. In tandem with the transformation occurring in the town’s traditional sectors is the strong growth in the local service sectors, driven primarily by knowledge-based and creative sectors including the finance and insurance, professional, scientific and technical services, and educational services. Research conducted as part of the strategy update suggests that Tillsonburg is also a strong player in the region’s cultural economy. The town’s current residential marketing program and the ‘Discover Tillsonburg’ initiative highlights some of the key local assets. Cultural, sporting and environmental assets such as the Annandale National Historic Site, Otter Valley Playhouse, Tillsonburg Community Centre and Lake Lisgar Waterpark are central to these marketing efforts. The town’s 2017 Community Improvement Plan (CIP) also aims to address, promote and encourage downtown renewal that can be leveraged in the attraction of creative and cultural enterprises. As per the 2020 Oxford County Phase One Comprehensive Review, Tillsonburg will account for roughly 25% of the County’s housing and employment growth forecast to 2046. The County is expected to experience relatively high levels of net in-migration compared to past periods. This represents a significant opportunity for Tillsonburg, provided certain steps are taken including boosting its investment-ready brand within Southwestern Ontario and actions to ensure sufficient land is available to accommodate forecasted growth – both residential and non-residential uses. The current residential land need assessment suggests that growth will continue to be accommodated through intensification, both through development within built-up areas and through a forecasted shift to moderately higher density residential forms over the planning period. These higher density residential forms along with recreational and community amenities, will enable the town to target the required workforce more effectively, including young professionals and families. The section that follows highlights the recent economic performance of Tillsonburg. A complete economic baseline analysis is provided as a background document titled Town of Tillsonburg – Economic Baseline Analysis. The baseline is presented in comparison to the Tri-County (which includes Oxford County, Elgin County and Haldimand-Norfolk Census Division) and the Province of Ontario. Tillsonburg’s target sector concentrations are also analyzed in comparison to Ingersoll, Woodstock, St Thomas and Stratford. Page 123 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 5 Page 124 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 6 Page 125 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 7 3. Determining Future Priorities 3.1 The 2008 Strategy The 2008 Economic Development Strategy outlined a vision and four strategic themes around which the town would direct its economic development efforts. These strategic themes, determined through the consultation process, include: ▪ Industrial Development ▪ Tourism ▪ Downtown ▪ Education and Labour Force Development A key objective of the strategy was that the town further streamlines’ organizational and institutional procedures to facilitate a timelier development approvals process. Thus, institutional conditions were identified as an overarching theme. Key actions included a review of the approvals process and establishing key performance indicators (KPIs). The ‘strategies’ under each strategic theme is listed below: Figure 1: Strategic Themes of the 2008 Economic Development Strategy Strategic Themes Strategy Industrial Development ▪ Support the Development of Key Economic Clusters ▪ Evaluation of the Potential for Development of a Regionally Significant Industrial Park at Tillsonburg Airport ▪ Use the hospital as leverage for opportunities for health care provision Tourism ▪ Develop a Tourism Strategy Downtown ▪ Create New Downtown Identity ▪ Review of Existing Improvement Plans ▪ Review Zoning By-Law and Official Plan regarding Residential Densities in the Downtown ▪ Explore Possibilities for Development of Town Hall Education and Labour Force Development ▪ Build Employer, Educational Institution and Town Partnership for Career Counselling ▪ Establishment of Apprenticeships ▪ Establish a Seniors Advisory Committee Source: 2008 Economic Development Strategy, 2020. Page 126 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 8 The 2008 Strategy also identified several key strengths for the Tillsonburg including access to Highway 401 and major North American markets for industrial output, a location close to Lake Erie, a skilled manufacturing-based labour force, relatively inexpensive land, and superior quality of life. Opportunities for the Town of Tillsonburg include building on the strength on its downtown, the availability of land that could be serviced for industrial uses, excellent tourism assets and an airport that offers for several development possibilities. Several weaknesses were also identified including a relatively undiversified economy focused on the auto sector, the decline in the traditional agricultural base, (i.e. tobacco) and strong competition for labour due to investments being made in surrounding municipalities. Threats facing the town at that time included a rising Canadian dollar, global competition, and the transformation of the automotive sector with an increased focus on technology. Many of the same factors were highlighted during the process to update the strategy. 3.2 Implementation Efforts The implementation efforts for the 2008 Economic Development Strategy are outlined in Figure 2 and described below. A critical focus of the strategy was support for and investment in the town’s manufacturing sector. Priority recommendations included supporting the development of manufacturing clusters in sectors such as auto-related production and value-added agricultural production, among others. Tillsonburg has supported its local manufacturing sector through the Manufacturing Acceleration Program (MAP) and the High Tech Manufacturing Subcluster Action Plan. The Manufacturing Accelerator Program (MAP) was launched in 2015 in partnership with Isah International B.V with the focus of introducing local firms to Industry 4.0 concepts. By 2017, the program evolved to include the development of a High-Tech Manufacturing Cluster Framework, a Capabilities Assessment with ten area manufacturers and an accelerated business growth framework to help local companies to explore European markets. Tillsonburg is currently reviewing and extending its MOU with Isah Software, in part because of the findings of the High Tech Manufacturing Subcluster Action Plan, which positioned the program as a platform for continued economic growth. The creation of an industrial park at the Tillsonburg Airport site was another priority recommendation of the industrial development strategic theme. The strategy identified that an industrial park along with leveraging the hospital to generate economic activities and renewed business retention efforts would significantly diversify Tillsonburg’s industrial base and position the town as a favourable place for business growth. As part of the airport industrial park/expansion, the town has completed a series of feasibility studies. An Airport Master Plan update (the first since 1989) is also underway, overseen by the Tillsonburg Airport Advisory Committee. While the 2008 strategy identified the need to develop a tourism strategy, the responsibility for the same has been transferred to the Recreation, Culture & Parks (RCP) Department. The Economic Development Office has, however, worked with other Town departments to raise the profile of the tourism sector. Key efforts include the DiscoverTillsonburg website, maintained by the Town of Tillsonburg in partnership with local builders and other community partners. The town’s signature event; Turtlefest is also a key success, attracting over 12,000 visitors in 2019 alone. The 2008 strategy also highlighted the need to build on the strengths of the downtown and position it as a major destination for retail and commercial activities within the region. This included a call for the construction of a new Town Hall blending historical roots with urban design elements. Page 127 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 9 While Tillsonburg does benefit from a catchment trade area of approximately 60,000 residents1, the downtown lacks specific attributes to capitalize on this opportunity2. For example, retail is scattered throughout the town and are not clustered as effectively as it could be. As per the 2019 Downtown Tillsonburg Retail Gap Analysis, slightly too much ground-level retail is devoted to professional services and medical services rather than retail. Also, the town is not perceived as a tourism hub and has an underdeveloped night-time economy. Creating a vibrant downtown will mean that the town needs to enhance the visitor’s experience and direct resources to improving the public realm. It also means targeting a more diverse mix of businesses including retail, personal and business services along with arts and cultural resources, restaurants, outdoor cafes, merchandise displays, food trucks, bars, entertainment and music venues. Initiatives to support a new downtown identity included the 2012 Town of Tillsonburg Central Area Design Study and partnership with the Tillsonburg Business Improvement Association (BIA). The 2013 Downtown Façade Improvement Program, initiated by the town and the BIA, provides grants to promote the rehabilitation, restoration, and improvement of the front facades of commercial buildings within the downtown area of Tillsonburg. An updated Community Improvement Plan was approved and implemented in 2017 to enhance support for investment in the downtown core and commercial and industrial zones. The program promotes the redevelopment of aging infrastructure and brownfield sites with the goal of encouraging businesses to improve the visual quality and function of buildings in the town. The CIP provides financial incentive programs, including tax increment, facade improvements, accessibility improvements, architectural design improvements, building permit grants and brownfield redevelopment incentive program. The education and labour force development strategic theme articulated a desired future state for the town’s workforce that is comprised of a strong mix of both highly developed technical skills in mathematics, health care and I.T. as well as skilled tradespeople to meet the needs of local employers. The strategy also recommended increasing partnerships with businesses to offer students apprenticeships and work-based learning terms, conducting an educational needs assessment, and establishing a satellite university campus to help train students within the area. The town has made substantial progress in developing its talent pipeline. This includes partnerships with the Oxford Workforce Development Partnership and the Elgin Middlesex Oxford Workforce Planning and Development Board. The town also undertook two Education and Training Needs surveys to seek input from local businesses and manufacturers regarding the training and education needs of the local workforce and to help assist with developing a “Made in Tillsonburg” solution to address these needs. 1 2019 Downtown Tillsonburg Retail Gap Analysis. 2 ibid. Page 128 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 10 Figure 2: Economic Development Strategy - Status of Recommendations (July 9, 2019) Strategic Themes Strategy Completion Industrial Development Support development of key economic sectors ▪ Workshops ▪ iMiN Online ▪ Manufacturing Acceleration Program (MAP) ▪ High Tech Manufacturing Subcluster Action Plan Development of airport industrial park/expansion ▪ Feasibility study & expansion completed in 2010 and 2019 ▪ Master Plan consolidation being planned Tourism Develop a tourism strategy ▪ Signature event (Turtlefest) ▪ Responsibility has been moved to RCP Department ▪ Discover Tillsonburg partnership Downtown Increase residential densities ▪ Anchor investment with the 253 Broadway property ▪ Support for 83 Rolph St redevelopment, etc. ▪ Supporting County Initiatives Explore opportunity for stand-alone Town Hall ▪ Design/Build & Own and status quo options Create a new downtown identity ▪ 2012 Design Study guiding the development ▪ Collaboration with BIA Review existing improvement plans ▪ Downtown Façade Programs ▪ 2017 Community Improvement Plan Education and Labour Force Development Build partnership for career counselling ▪ Oxford Workforce Development Partnership ▪ Careers 101 event at high school ▪ Youth robotics challenge Page 129 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 11 Strategic Themes Strategy Completion College/Post-Secondary ▪ 2 Education & Training Surveys completed ▪ Education Task Force – to develop a Made in Tillsonburg solution for both training and education Institutional Conditions Review approvals process ▪ Subdivision process and development manual review ▪ Streamlining of processes (intro of development bonds) ▪ Fast track expediting for key projects Establish performance indicators ▪ Quarterly tracking and reporting to CAO/EDAC/Council Source: Town of Tillsonburg, 2020. 3.3 A Shifting Economy Notwithstanding the economic growth experienced across the province in recent years, the domestic and international competition for workers, business development and investment is increasing in today’s “new economy”. On a global scale, Tillsonburg faces several challenges regarding its competitive position in which it has limited control. This includes the relative strength of the global economy, changes in international trade policy and the competitiveness of the Ontario economic base relative to other established and emerging global markets. At the more regional level, Tillsonburg faces competition from neighbouring municipalities for workforce attraction, business attraction and investment as several of them generally offer regional and local attributes that appeal to prospective international, national and local firms. Despite these challenges, Tillsonburg can position itself positively. This requires the town to market itself as a hub for innovation, entrepreneurship, business development and local investment retention. A major factor for the future competitiveness of the town, however, relates to the quantity and quality of its employment areas and other non-residential areas and the community’s ability to attract the workforce required to drive the economy forward. This section builds on the economic drivers identified by the town and discusses how they are likely to shape the town’s competitiveness over the long term. The current response of the town to these trends has been highlighted, based on the economic development programming of the Economic Development Office, as evidenced in the 2021 Business Plan (Figure 3). These efforts will be integrated as part of the update to the strategy’s action plan. Page 130 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 12 Industry 4.0 and Industrial Production Industry 4.0 signifies a shift in manufacturing from mass production to customized production. Employment and skills have also shifted as technology has decreased the need for routine jobs and created demand for skilled and tech-dependent jobs. Industry 4.0 will continue to significantly impact the manufacturing sector, and the town should broaden its practical knowledge about technologies and develop strategies that respond to this shift. Tillsonburg is currently focussing on innovation-based investments, particularly in the manufacturing sector. The opportunities identified as part of the 2019 High-Tech Manufacturing Sub-Cluster Action Plan is critical in this regard. In the past, the town’s economic development initiatives with respect to Industry 4.0 adaption included a partnership with Isah International B.V, to implement the Manufacturing Accelerator Program (MAP). The program is a key platform for growth as it can help raise the competitiveness, network and profitability of individual manufacturing companies through well-defined business strategies and by capitalizing on innovation in products, processes and markets. The program is being reviewed for a relaunch as part of the town’s pandemic recovery efforts. FDI Patterns As per 2020 The fDi Report, the number of FDI projects into Canada increased from 328 in 2018 to 345 in 2019. The province of Ontario accounted for 44% of total projects in 2019 and 7.9 billion in outbound capital investment. The majority of investments made in Ontario has located in the Greater Golden Horseshoe. Historically, the United States has been the dominant force behind investment into Canada with traditional sectors, including manufacturing, energy and mining sectors fuelling growth. Investments in manufacturing have been growing, building on the Scientific Research and Experimental Development (SR&ED) program, as well as Canada’s competitive marginal effective tax rate. A current capital investment trend seen across North America is a push towards electric vehicle battery manufacturing plants. Ontario is already capitalizing on this trend; the 1.8 billion investment in retooling Ford of Canada’s Oakville Assembly Complex into a global hub for battery electric vehicle production is one such example. Other than manufacturing, investments have been diversifying with technology-based sectors including Software and IT services leading the charge. Canada is attracting investment from global companies in Asian and European markets, a trend that Tillsonburg is focussing on through its investment attraction efforts. Tillsonburg’s 2021 Business Plan (Figure 3) has identified the SOMA Asia Mission as a key item to promote the town and SOMA region as a competitive manufacturing and investment location and to strengthen trade relationships with China and Japan. Canadian Trade Agreements The trade war between the U.S. and China, which began in 2018, continues to add risk to global economic growth and further add to trade disruption and near-term market volatility3. The Canada- United States-Mexico Agreement (CUSMA)4 and the Comprehensive and Economic Trade Agreement (CETA) provide both opportunities and challenges for Canada to pursue trade and investment. The CUSMA replaced the North American Free Trade Agreement (NAFTA) to re-balance trade and 3 U.S. China Trade Tensions Area Back: Global Economy Week Ahead, Bloomberg, Nov 11, 2020. 4 In the United States, the Agreement is known as the United States -Mexico-Canada Agreement (USMCA), while in Mexico the Agreement is known as Tratado México, Estados Unidos y Canadá (T -MEC). Page 131 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 13 increase industrial activity within North America. The new agreement provides benefits for the Canadian market, including tariff-free market access for exports, continued investments in the automotive and steel and aluminium sectors and provides new market access opportunities for the agricultural sector5. While these are positive outcomes, stringent rules of origin (RoO) requirements suggest declining motor vehicle exports to the United States6. Further, lower returns in the U.S. market and non-tariff measures limit Canadian dairy market exports7. Moving forward, communities should continue to monitor the uncertainty and implications associated with the access to the U.S. market and adapt strategies to focus on local strengths and inward investment and needs of a technology-based environment8. The recent Comprehensive and Economic Trade Agreement (CETA) has made it easier for businesses to explore European Markets. Local businesses can work with industry partners such as Export Development Canada (EDC), Ministry of Economic Development, Job Creation and Trade (MEDJCT) and European’ middlemen’ partners to understand European laws and regulations, tax systems, customer expectations and overcoming language barriers. Expanding trade markets and exploring new export-related opportunities if of particular relevance. The European market is a key opportunity, given the push to technology-led FDI. Tillsonburg has recognized opportunities to increase the export readiness of local manufacturers by leveraging trade relations in Europe. Placemaking and Economic Growth Place-based economic development with a focus on active pedestrian-friendly downtowns and community nodes is considered key to long-term economic growth for many communities. Cities and towns are updating their planning policies to enable higher-density, mixed-use, multi-modal, vibrant and amenity-rich spaces, that cater to a younger entrepreneurial class with the ability to live, work and invest in the community. Place-making has also been a central theme to municipal cultural planning efforts. As Tillsonburg grows, more attention will be required on how best to sustain or improve its quality of place, including the downtown and community nodes for both residents and visitors. Continued investment in and promotion of the CIP is essential, as it will enable streetscape development, beautification efforts, business retention and stimulate additional private sector investment. The town’s 2017 Community Improvement Plan (CIP) addresses downtown revitalization, through a mixture of 8 grants and financial incentive programs. A risk for the town is that if Community Improvement Plan funding is decreased, it may result in lost opportunities to ensure the vibrancy of the downtown and support investors and entrepreneurs in Tillsonburg. Resident Attraction While residential growth is projected for the Town, reduced investment or the lack of targeted initiatives in this area may jeopardize growth scenarios. A targeted resident attraction plan is key, particularly given the Oxford County projections expect growth to occur within the older demographic (50 years and over). Also, a place-based approach is needed to attract young families, skilled workers 5 Global Canada Affairs. (2020). The Canada-United States-Mexico Agreement: Economic Impact Assessment. 6 United States International Trade Commission. (2019). U.S.-Mexico-Canada Trade Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors. 7 Howe Institute. (202). Quantifying CUSMA: The Economic Consequences of the New North American Trade Regime. 8 ibid. Page 132 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 14 and professionals to the community. The town needs to support a mix of housing forms to satisfy the various demographics of the community. Tillsonburg is already taking leadership in downtown residential development by securing an anchor investment with the 253 Broadway property and providing support for other downtown developments, including the 83 Rolph Street property redevelopment. A residential marketing campaign, whereby the town established partnerships with existing and new home builders to increase residential growth, was undertaken over the past few years. Key future considerations for the Town could include addressing social housing and ensuring housing options for all household income categories. This is of particular relevance as the 2019 Oxford County’s Housing Forum identified opportunities for increased rental options and incentives for private developers to build more housing suitable for those earning $38,000 or less. As housing values continue to rise, partnerships between all levels of government and the private sector will be required to meet future housing needs. A Talent Pipeline The shift towards innovation in traditional sectors and the growth of technology focussed service sectors has resulted in significant competition for talent. Estimates show that Canada has been able to shift from a brain drain to a brain gain; for example, Toronto has recruited more technology workers than Seattle, the Bay Area and Washington D.C. combined9. In addition to producing top-tier talent, Canadian universities, colleges and vocational institutions also attract a high proportion of international students. To ensure long term competitiveness talent attraction efforts needs to ensure the right balance of creative, technical and soft skills. In addition to offering a range of employment opportunities, successful talent attraction programs also need to consider housing affordability, access to amenities and recreation, art and cultural offerings and career prospects. Workforce development has been a key consideration for the town. Recent efforts include partnerships with Oxford Workforce Development, Careers 101 event at the high school, Youth robotics challenge and an Education Task Force. COVID-19 COVID-19 has created economic and human costs across the world since its outbreak in December 2019. Economic sectors such as travel and tourism, accommodation and food, manufacturing, energy, and finance have been impacted while technology-based sectors have transitioned to a greater reliance on digital tools. Furthermore, physical distancing and increased work at home requirements have resulted in economic disruption largely related to changes in consumer demand and consumption patterns. These measures have affected global economic output, commodity prices, consumer spending and people’s mental health. While the pandemic is an ongoing challenge, it represents a series of opportunities in the short and longer-term. The Town of Tillsonburg has shown leadership in its response to the impact undertaking a coordinated response with the Tillsonburg District Chamber of Commerce and the Downtown Business Improvement Area to support local businesses and rebuild the local economy. Economic Developers across the County as well as the Western Ontario Wardens’ Caucus are part of this holistic effort. Through the spring of 2020, the town administered surveys to understand the impact of COVID-19 on local businesses and advocated on behalf of local businesses. Local task forces were launched, and 9 Toronto adds more tech jobs than Seattle, the Bay Area and Washington D.C. combined. Invest in Ontario, Nov 11, 2020. Page 133 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 15 information regarding support programs from all levels of government have been shared through the local and regional business community. The following table summarises the current economic development agenda identified in the 2021 business plan. Figure 3: Town of Tillsonburg, 2021 Business Plan Item Owner Target Date Community Improvement Plan (Downtown Façade) Business Improvement Association Q4 Community Improvement Plan Development Commissioner Q4 Economic Development Strategy Implementation Economic Development & Marketing Q4 Enhanced Business Processes (Lead Gen Apps) Development Commissioner Q1 High Tech Manufacturing Action Plan Development Commissioner Q3 SOMA Asia Mission (Biannual) Development Commissioner Q4 Van Norman Innovation Park – Clearview Dr Extension & SWM Pond Construction Operations Department/Development Commissioner Q4 Van Norman Innovation Park (Certified Sites) Development Commissioner Q4 Engineering Design Services for Rokeby Road Property Operations Department/Development Commissioner/Consultant Q4 Chamber Awards - Grant Development Commissioner Q2 Chamber Awards -Sponsorship Development Commissioner Q2 Service Level Carryover – Marketing/External Communications Development Commissioner Q2 Community Video Production Economic Development & Marketing Q3 Bridges to Better Business Development Commissioner Q4 Youth Robotics Challenge Development Commissioner Q4 Residential Marketing Economic Development & Marketing Q4 Branding – Wayfinding Signage (carry-forward) Economic Development & Marketing Q3 Consultations for Mall Parking Lot Reconfiguration (carry-forward) Economic Development & Marketing/Chief Building Official Q1-Q2 1,101 Highway 3 Property – Explore development opportunities Development Commissioner Q4 Education Task Force Development Commissioner Q4 Page 134 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 16 Item Owner Target Date Pandemic Business Recovery Development Commissioner, Mayor’s Working Group, Chamber of Commerce, BIA Q4 Town Hall Project Support Town Hall Project Committee Q4 Continue to facilitate discussions and networking with potential partners to review additional opportunities for Short Line Rail connectivity within the Town of Tillsonburg. Development Commissioner Q4 Continue to facilitate discussions, networking and planning to ensure adequate Industrial Zoned land is available for servicing and development. Development Commissioner Q4 Source: Town of Tillsonburg, 2020. 3.4 Current Economic Development Needs A targeted consultation program was conducted with key community partners, stakeholders and the business community to inform an understanding of the community’s current economic development programming needs. One on one interviews were conducted with Community Futures Oxford, the Tillsonburg District Chamber of Commerce and the County’s Small Business Enterprise Centre (SBEC). An online business survey was also administered between July 2020 to August 2020. The majority of respondents were locally owned and operated businesses and included corporations and sole- proprietors. Of the 113 respondents, over 70% have been operating their business in Tillsonburg for over ten years. Respondents included local manufacturing, retail trade, real estate firms, professional services, construction, health care and accommodation and food services. Key survey results are presented in the infographic below. Building on the results of the survey, two workshops were conducted with representatives from local manufacturing, retail, commercial and business service firms. Participants were asked to provide input to the following: ▪ What is the greatest opportunity for Tillsonburg to sustain the growth of the local economy over the next 5 years? ▪ What challenges are limiting economic growth in Tillsonburg? ▪ Where does the town need to focus its efforts on over the next 18-24 months? The stakeholder consultations are summarised below: Figure 4: Summary of Consultation Responses Consultation Themes Summary of responses Opportunities for Growth ▪ Manufacturing first lens, as it drives much of the economic success in the town Page 135 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 17 Consultation Themes Summary of responses ▪ Establish a technology/innovation hub ▪ Provide shovel ready lands and pursue the development of airport lands ▪ Capitalize on the remote working trend resulting from COVID-19 ▪ Expand health care services ▪ Ensure broadband availability ▪ Build on existing cultural assets ▪ Showcase the local artists and artisans, promote the emerging arts community, cultural and social experiences ▪ Stronger online marketing presence that includes cultural experiences ▪ Build on existing partnerships with BIA, Oxford Tourism, Oxford Creative Connections and Tillsonburg Multi-Service Centre to improve awareness of existing initiatives and Tillsonburg’s priorities ▪ Work with Tillsonburg District Chamber of Commerce to build on the existing relationship with Council and EDO ▪ Promote the community as a space to live and raise a family – children’s programs ▪ Target sports tourism, agri-tourism (winery, microbreweries), capitalize on Norfolk/Elgin Winery cluster ▪ Pursue hotel development that allows people to stay in town ▪ Regional talent attraction, attract and retain younger professionals ▪ Flexible zoning, ease of development approvals ▪ Environmental health and safety Challenges limiting economic growth ▪ Boundaries adjustments with South-West Oxford Township, limited hydro and no agreement for shared assessment hinder the development of the airport site for an industrial park although town owns 600 acres. ▪ Competition for talent attraction & retention ▪ Lack of awareness of employment opportunities – trades are still viewed as not attractive careers ▪ Lack of apprenticeship positions for trades ▪ Lack of affordable housing opportunities for young professionals, entry- level workers Page 136 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 18 Consultation Themes Summary of responses ▪ Gaps in cultural and recreational amenities that would encourage people to live and work here ▪ Volunteer burnout – cultural sector ▪ The municipality needs to advocate better for business priorities ▪ Some manufactures are witnessing a high-turnover in staff ▪ Highway 19/401 congested – need better access to the town Economic Growth Focus in the next 18-24 months ▪ Continuously engage businesses & employers to understand their evolving needs and support business programming ▪ Market Tillsonburg as a manufacturing hub, a regional centre and a remote working environment ▪ Need for entry-level housing ▪ Open for business message needs to resonate ▪ Increased training, job placement & internship opportunities ▪ Develop a secondary industrial area Page 137 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 19 Page 138 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 20 3.5 Strategic Priorities Stakeholder input and related background research support the need to update the focus of the Economic Development Strategy. A number of strategic priorities emerged, which were reviewed with the Economic Development Advisory Committee and found to be relevant and in line with the town’s emerging economic development agenda. The priorities are outlined below. 3.5.1 Enhance Investment Readiness Investment readiness for Tillsonburg ranges from providing high-quality, shovel ready industrial lands, targeting technology-based manufacturing to collaborative partnerships that allow for growth and investment. Tillsonburg is expected to account for 11% of the County’s forecast employment growth10, adding 2,230 jobs over 2016 to 2046 period in sectors that include manufacturing, transportation and warehousing, retail trade and administration. Capitalizing on this opportunity requires a long-term supply of high- quality, shovel-ready employment land and available lease space opportunities. This is consistent with the 2008 Economic Development Strategy, and stakeholder input received during the updating of the strategy. While several stakeholders identified the Tillsonburg Municipal Airport site as offering opportunities for industrial development, the current lack of services such as water, sewage, and gas will limit industrial growth over the short to mid-term11. Tillsonburg is currently home to two main industrial areas, namely, the Forest Hill Industrial Park and the newer Van Norman Innovation Park, which is comprised of 37 acres of developable land with servicing currently underway. The Van Norman Innovation Park is anticipated to have three phases with additional lands recently secured by the town and additional lands to be secured. Also, the town owns properties at the Rokeby Rd site (54 acres with rail) along with a 35-acre outdoor industrial site on Highway 19 South along the railway corridor. The town has recently acquired another 70 acres of industrial land for future development. As identified in the 2020 Oxford County Phase One Comprehensive Review, Oxford County and Tillsonburg remain relatively well-positioned in terms of the suitability of the industrial land supply. As of 2019, Tillsonburg has a net developable industrial land supply of 77 ha; approximately 15% of total net developable industrial land supply in Oxford County. Tillsonburg is also home to 18 ha of net developable commercial and institutional land. Given the existing supply, a critical consideration for the town is to explore opportunities to expand their inventory of high quality, shovel ready industrial land and take actions to ensure a long term supply of designated industrial land. Potential issues that may affect the availability of lands for development include fragmented supply; smaller spread out parcels; and industrial lands being mostly privately owned. Tillsonburg’s continued strength in manufacturing will require local businesses to invest in the digitization and automation of their operations. The town’s efforts to enable a ‘metal lab’ or an innovation-hub would allow for collaboration between business, education and government in areas including 3D printing, training programs and skills development. The emerging broader trends of electric and autonomous vehicles (E.V.s and A.V.s), signifies supply chain business opportunities for the town, including batteries, electric motors and transmission modules, air-conditioning units, brakes, and 10 2020 Oxford County Phase One Comprehensive Review. 11 2010 Airport Business Park and Airpark Market Analysis and Feasibility Study Page 139 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 21 steering systems. In addition to the opportunities associated with industrial development, Tillsonburg’s strategic location and proximity to Highway 401 provides opportunities for higher density uses, including office- commercial development and co-working/flexible office space for professional service firms. This is a short term priority, in light of the ongoing remote working trend associated with the impact of COVID-19 and longer-term resident attraction efforts to ensure a sustainable residential base. Recent investments, including the $1.2 million grant received from the Province of Ontario for infrastructure investments at the Van Norman Innovation Park positions the town as a strong player in the regional innovation ecosystem and provides an opportunity for higher-order industrial/office development. To ensure success, the town needs to eliminate potential barriers that often come up in the investment attraction process. This includes providing business-grade broadband services that go beyond the downtown and continuing to ease the ‘red tape’ and zoning challenges associated with some forms of development. Easing restrictions on multi-unit residential development should also be a consideration, particularly as the town looks to attract young families and creative professionals. Improving business infrastructure requires that the Town work with local and regional partners to determine an appropriate response for delivering efficient and cost-effective services. 3.5.2 Improved Support for Entrepreneurship and the Small Business Economy Tillsonburg is home to a significant number of small businesses and entrepreneurs in a wide range of industries, ranging from real estate, construction and retail trade to finance and insurance and professional, scientific and technical services. The economic development department supports entrepreneurs and small businesses by providing market information, real estate advice and networking opportunities. Stakeholders consulted as part of the strategy update commented that the town plays an important role as a facilitator for business development. Support for start-up companies is also offered county-wide through Community Futures Oxford and the Small Business Centre. Opportunities exist to build on existing programming and support, as 63% of business survey respondents12 indicated that support for small business is important to ensure future growth in the town. The supportive business environment should be leveraged in the attraction of new investment in the creative, technology, and innovation sectors. This may require investment and resources beyond traditional support. As local programming with Fanshawe College is currently limited, the town could look to strengthen and market partnerships with the TechAlliance of Southwestern Ontario (RIC, London), Advanced Manufacturing and Hardware Innovation Lab, the Fraunhofer Project Centre for Composites Research, Trillium Network for Advanced Manufacturing, etc. The creation of the Education Task Force and partnerships with the Oxford Workforce Development are strengths that should be continued and broadly profiled. Initiatives such as the Caledon Business Innovation Zone (CBIZ) and BusinessTO Support Centre serve as best practice, given its role in helping start-up and entrepreneurs with consultations, business planning and reviews, training, workshops and networking events and promotions particularly in the absence of a regional presence. 12 n=28 Page 140 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 22 An effective sector-based BR+E program could better inform economic development programming and support investment attraction activities and supply chain development opportunities that go beyond traditional manufacturing. Regular and ongoing communications with key sector/sub-sector representatives can help the town to gauge collaboration opportunities, programming needs and growth and expansion challenges. 3.5.3 Support for the Creative Cultural Economy The creative and cultural industries are one of the most rapidly growing sectors of the economy, generating income, jobs, and exports. These businesses are involved in the creation, production and distribution of cultural goods and services and include the performing arts; film and video production; recording and broadcasting; architecture; design (graphic, industrial, interior, fashion, etc.) advertising; publishing; new and interactive digital media etc. As per the 2020 Canadian Business Counts, Tillsonburg is home to approximately 77 (5% of total businesses) creative and cultural industries13. The majority of these (20 businesses) are full-service restaurants while five businesses are involved in computer systems design and related services (except video game design and development). The creative cultural industries NAICS is provided in Appendix I. While the creative and cultural industries represent an untapped economic potential for the town, targeted investments are needed to ensure growth. Currently, the town has a lower proportion of creative and cultural industries compared to the province at 10%. In addition, the town lags with respect to digital media industries including video game companies, animation, mobile app developers, post- production studios and special effects tool makers. On the other hand, the Station Arts Centre, Annandale Museum and Theatre Tillsonburg are key pillars that promote the cultural economy. The Station Arts Centre is a key part of the Tillsonburg experience, showcasing local artists and artisans and providing family-oriented programming and year-round cultural events. Along with art galleries, art programming, an artisan gift shop, pottery studio and Saturday Farmer’s Market, the Centre is home to several in-house groups, including Bridge St. Artists, Stationhouse Potters and Tillsonburg Photography Club. Opportunities exist to build on the existing cultural and creative assets for mutual benefit. For example, full-service restaurants can serve as venues for live entertainment and promote local bands and artists. Tillsonburg’s cultural identity and rural nature provide excellent opportunities for value-added businesses, including artisan food, craft brewery and wineries, organic produce, and other organic products. The proximity of the Toast the Coast Trail in Norfolk County and Elgin County position the town to investigate opportunities in craft-brewed breweries and cideries and promote farm-to-table and culinary tourism experiences. An innovative Community Improvement Plan (CIP) that supports the growth and diversification of agri-businesses and tourism product may be central to this effort. Building on the guiding principle of the 2011 Community Parks, Recreation & Cultural Strategic Master Plan14, an updated cultural asset inventory and a Cultural Master Plan will showcase the diverse range of assets in the town and enhance opportunities for cultural production and consumption. The Cultural Improvement Alliance was an important initiative undertaken by the town to develop cultural sector governance and operational capacity. As of the writing of the report, the program is not operational as 13 Based on the Statistics Canada’s Canadian Framework for Cultural Statistics. The framework is a collaborative effort of the Culture Statistics Program of Statistics Canada and the Department of Canadian Heritage. 14 Town to work with and develop the arts, cultural and heritage sector. Page 141 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 23 the Culture Development Fund has ended. Digital awareness is an important consideration to grow the creative and cultural industries, as it allows for easy content creation and distribution. Programs such as the Digital Main Street, currently administered by the SBEC, ShopHERE powered by Google and best practices such as Shop Toronto Design and Industry Advisory Committee can help businesses innovate, commercialize new products and be digital-savvy. As COVID-19 continues to impact on the economy, main street businesses and entrepreneurs increasingly require support to create and sustain an effective online presence. Ontario’s Small Business Success Strategy and the “Shop Local! Shop Safe! Shop with Confidence!” campaign are key initiatives that support small businesses in the current economic climate. 3.5.4 Build Sustainable Community and Business Infrastructure A key priority for the town is to invest in community infrastructure, workforce development and sustainability goals that ensure the well-being of residents and serve as resident and talent attraction enablers. Stakeholders suggested that community priorities include investing in the healthcare sector and focusing on doctor recruitment. The town can work with local not-for-profit organizations to promote community and social goals. The Kawartha Lakes Health Care Initiative (KLHCI) is a best practice in this regard. The non-profit works closely with the local medical community, the Ross Memorial Hospital, and the Rural Ontario Medical Program (ROMP) to successfully recruit family doctors to the City of Kawartha Lakes. Tillsonburg is primarily comprised of single-family, detached homes and limited care/retirement options for an ageing demographic. This impacts the ability of the community to attract immigrants and younger workers or allow for ageing in place. In addition, ensuring access to skilled labour is a growing challenge for the town. An ageing workforce, lower immigration levels and the need for tech-based talent place considerable pressures on labour market supply. These factors present growth challenges, particularly if local businesses must recruit workers from outside the area. Given these trends, more emphasis on workforce attraction and marketing the town to these workers is essential. This includes a focus on lifestyle, local amenities, and the vitality of the community. Continued engagement with the Oxford Workforce Development Partnership and partnerships with Fanshawe College and other stakeholders to retain high school students and youth for careers in the trades will be important. Stakeholders suggested partnering with local firms to create apprenticeship, training, and employment opportunities. This would allow for recent high school graduates to continue to stay and work in Tillsonburg as opposed to moving out of the community. Tillsonburg should also consider how it can increase the amount of roofed accommodation that is available, which could allow the town to host larger conferences, trade shows and events. While stakeholders identified hotel development as a key opportunity area, the downturn of the hospitality sector in light of COVID-19 presents significant challenges in the short term. The town can investigate the feasibility of alternative accommodations including traditional B&B’s, Airbnb’s, boutique hotels, and increased billeting (often associated with competitive amateur sports). Opportunities also exist to work with private developers to combine a hotel with a medium density residential building with ‘hotel-like’ services and amenities. 3.5.5 Raise the Town’s Profile The coronavirus pandemic has dramatically altered the workplace, as many companies have shifted to Page 142 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 24 remote work. This shift is particularly prevalent in technology-based services and includes managers, professionals and financial workers who can carry out their jobs on computers virtually anywhere. Remote working has also raised conversations and trends that point towards an urban migration to small and rural towns. Research does suggest that urban migration was occurring before the pandemic15 , and the pandemic has simply accelerated relocation decisions. While the future of telework is still largely unknown, particularly as the economy reopens, the ongoing urban migration has social, economic and political implications for both rural and urban communities alike. Rural and small-town communities are well-positioned to capitalize on this trend, provided it has the needed infrastructure (particularly broadband) and place-based amenities that support the lifestyle aspirations of an urban population. The forthcoming Community Strategic Plan should inform this discussion. Stakeholders consulted as part of the strategy update suggested that Tillsonburg is perceived as a transient community (commuters) and that the town lags in attracting people to live and work in Tillsonburg for the long term. There was a desire among some stakeholders to see more connections with nature, better amenities, more festivals and cultural experiences and value-added agricultural products as a way to offset this perception. As noted previously, the town and its partners should take proactive and purposeful place-based investments that create a vibrant, inclusive, prosperous and unique community. This should include investment in fibre optic internet, housing options that are affordable and adaptable to teleworking situations and community assets, experiences and events can improve the overall quality of place. An emphasis on ‘ideal small-town living’, access to highways including the 401 and major centres including London, Kitchener/Waterloo and Toronto and a competitive residential market can ensure the town is well-positioned to attract the remote workers looking to move away from the large urban centres. 15 As per a 2017 Gallup Poll, 27% of urban residents prefer rural areas and included population aged 30-49 years of age. Page 143 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 25 4. Economic Development Strategy Update The Strategic Priorities for Tillsonburg’s Economic Development Strategy Update are highly interrelated. If implemented effectively, the related goals, objectives and action planning will ensure a strong and sustainable local economy. The strategic priorities resulted in the development of three clear and well- defined goals, each with objectives and actions to achieve desired results over a specific period of time. The framework for the Economic Development Strategy Update is illustrated below. Figure 5: Strategy Update Framework 4.1 Goals, Objectives and Actions The Strategy Update is underpinned by three high-level goals, intended to anchor and qualify all ensuing actions. These goals reflect the priorities discussed in Section 3 and builds on the Economic Vision of the 2008 Economic Development Strategy as the strategic themes remained relevant in 2020. The goals and objectives of the Economic Development Strategy Update are presented below: Goal 1: Enable a Tech-based Business Environment The objective is to: ▪ Foster a business environment that supports the expansion and sustainability of existing businesses and attracts new business investment and entrepreneurs through a commitment to innovation. Goal 2: Create A Strong Local Brand The objective is to: ▪ Develop a broad regional-based value proposition to attract business, investors and residents that incorporates the specific strengths found in the town. Goal 3: Transform to the Creative Entrepreneurial Economy The objective is to: ▪ Leverage the creative and cultural industries to drive innovation and economic growth of the town’s entrepreneurial economy. GOALObjective Action Action Timing Lead/Partner Resource Requirements Key Performance Indicators Page 144 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 26 4.2 Action Plan 4.2.1 Interpreting the Action Plans Actions The direction the town, its partners, and its stakeholders will undertake to address the essential issues or opportunities that should be addressed over the length of the Strategy. The short term measures in this updated Strategy support the immediate needs of Tillsonburg businesses. It also looks beyond the current economic climate and anticipates the opportunities for future economic growth and prosperity for the community. This includes building on the implementation efforts associated with the 2008 Strategy, integrating current departmental business planning efforts and the aspirations of the community. Timing The timeframe for initiating and/or implementing the recommendations in the Action Plan is 5 years. Priority timings are either short term (S = 1-2 years), medium-term (M = 3-4 years) and long term (L = 5 years or longer). It is assumed that the town will revisit the progress of the Strategy after 5 years to assess the effectiveness of the recommendations, adjust the recommendations based on current conditions as necessary, and add new actions in response to changing market conditions and policy considerations. Lead and Partners The identification of select leads and internal/external partners that can support economic development objectives. Acronyms The following table lists the acronyms used in the Strategy and their respective descriptions. Figure 6: List of Acronyms used in the Action Plan Description Acronym Business Improvement Agency BIA Tillsonburg District Chamber of Commerce CC Community Futures Development Corporations Inc. CFDC Economic Development Office EDO Ministry of Economic Development, Job Creation and Trade MEDJCT Recreation and Culture Department RCD Small Business Enterprise Centre SBEC Page 145 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 27 Key Employer Support Programs for Strategy Implementation The following table lists the key employer support programs for strategy implementation. A full description of programs is provided in Appendix II. Figure 7: Program Purpose Page 146 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 28 Goal 1: A Tech-Enabled Business Environment # Action Lead/ Partner Timing S M L 1.1 Create a business environment that supports the expansion and sustainability of existing businesses and attracts new business investment and entrepreneurs through a commitment to technology integration and innovation. 1.1.1 ▪ Provide online resources for local businesses in the form of webinars, links to various financial supports, website design/e-commerce tools and in-person consultation. ▪ Work with local businesses as required to assist in the identification of available funding. EDO; CFDC 1.1.2 ▪ Support local businesses to build online/e-commerce capability and capacity. EDO; CFDC 1.1.3 ▪ Work with the Chamber of Commerce to promote SBEC efforts to implement a Digital Main Street Program. SBEC; CC; BIA 1.1.4 ▪ Ensure the inventory of available serviced and un-serviced commercial and industrial land is updated and available online. EDO; Planning 1.1.5 ▪ Fast track the Airport Site Master Plan to understand the benefits to the town and shared service agreement requirements with the neighbouring community. Town 1.1.6 ▪ Undertake an Employment Lands Needs Study to determine the current and expected demand for higher- order employment lands, including office, commercial and industrial. ▪ Support the preparation of shovel-ready employment/industrial lands to ensure long term competitiveness. Town 1.1.7 ▪ Continue to monitor the ongoing impact of CUSMA and other trade agreements through regular engagement with provincial and federal trade representatives. MEDJCT; EDO 1.1.8 ▪ Support investment in the manufacturing sector by adopting the recommendations in the High-Tech Manufacturing Sub-Cluster Action Plan. EDO; Manufacturers Page 147 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 29 # Action Lead/ Partner Timing S M L ▪ Continue to focus on fabricated metal product manufacturing, transportation equipment manufacturing and machinery manufacturing. ▪ Continue to engage directly with key local industries and forge long-term relationships. ▪ Conduct a survey of local businesses to determine the level and type of support for a cluster initiative. 1.1.9 ▪ Regularly engage with local partners in workforce development to ensure a stable supply of skilled and semi- skilled workers. ▪ Pursue opportunities to develop workforce training programs and tailored curriculum offerings that support on-the-job training that prepares local students for employment in the town’s high-priority industries. Workforce Planning and Development Board; EDO 1.1.10 ▪ Develop a broadband strategy with recommendations for providing a fibre optic network throughout the town. ▪ Support businesses’ ability to operate online or remotely by advocating for improved access to high- speed internet and cell phone service. ▪ Work with local developers to ensure the integration of fibre in all new development. EDO; Developers 1.1.11 ▪ Take a leadership role in developing a Regional Information and Communications Technology (ICT) & Digital Media Sector Study. The study will take inventory of sector resources, assets and markets and enable an understanding of the local and regional technology sector profile and capacity. EDO; CFDC; SBEC Page 148 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 30 Goal 2: An Inspiring Community Brand # Action Lead/ Partner Timing S M L 2.1 Enable a regional-based value proposition to attract business, investors and residents that incorporates the specific strengths found in the town. 2.1.1 Launch a short-term destination marketing campaign that promotes the assets16 of the town and positions it as a hub for remote working in South Western Ontario. Town 2.1.2 Promote the functionality of EngageOxford as an interactive directory, social media platform and events calendar for local businesses. Town 2.1.3 Support businesses participation in online ‘shop local’ efforts. This includes identifying resources that can help businesses understand tax regulations, technology implications etc. EDO; CC; SBEC 2.1.4 Advocate for tourism priorities, showcasing Tillsonburg’s authentic tourism experiences17 and promoting these experiences to local and regional accommodation providers and tour operators. EDO; RCD; Tourism Oxford 2.1.5 Develop ‘Here we Grow’ business profiles and testimonials, interactive maps and other business information products that showcase the story of Tillsonburg’s business community and entrepreneurs. EDO 2.1.6 Adopt the recommendations of the 2019 Retail Gap Analysis, including the “Invest in Tillsonburg Downtown” digital and/or online marketing piece. EDO; Planning 2.1.7 Continue to improve online-access to and assistance of the town’s development approvals and permitting process. Planning 2.1.8 Continue to position and promote the Van Norman Innovation Park to secure investment in the advanced manufacturing, information technology and food processing sectors. EDO 2.1.9 Continue to implement a Physician Recruitment Program to attract and retain doctors and health care professionals in the town. EDO 2.1.10 Undertake a housing needs study to address perceived gaps in inventory, affordability, and demand, in the short-term (remote workers) and long term (permanent residents). Planning; EDO 2.1.11 Explore the expansion and resourcing of the Town’s CIP program to support residential development (particularly rental accommodation), the targeting of key sector investment Planning; EDO 16 small town living, quality of life, recreation, affordability, and geographic proximity. 17 agri-tourism, culinary events, culture-based tourism, and sport tourism Page 149 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 31 including tourism and the continued revitalization of the downtown. 2.1.12 Advocate for the provision of regional transit service and related infrastructure to support economic growth and workforce mobility. Town; CC Page 150 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 32 Goal 3: Transform to the Creative Entrepreneurial Economy # Action Lead/ Partner Timing S M L 3.1 Leverage the creative and cultural industries to drive innovation and economic growth of the town’s entrepreneurial economy. 3.1.1 ▪ Support networking opportunities with local and regional stakeholders (not for profit, for-profit, institutions, intermediaries, BIA’s and chambers of Commerce) as a way to promote, connect and coordinate the creative and cultural industries and initiatives. RCD; EDO; Cultural Organizations 3.1.2 ▪ Support the development and enhancement of cultural tourism products and enterprises that align with the marketing and promotional efforts of Tourism Oxford. ▪ Work with the County to investigate opportunities for agri-based tourism and value-added agricultural products, e.g. farms festivals, artisan food, craft brewery and organic produce. EDO; Tourism Oxford; Cultural Organizations 3.1.3 ▪ Undertake a cultural asset mapping exercise to quantify the full range of arts, cultural, tourism and heritage assets in the town. The asset map can also serve to market, promote and showcase resources and attract new business investment. RCD 3.1.4 ▪ Develop a creative economy handbook that provides a listing of government programming and services to support the growth of a creative economy and provides profiles of business, entrepreneurs or organizations that contribute to the success of the creative economy. EDO; CFDC 3.1.5 ▪ Pursue the creation of co-working spaces geared to entrepreneurs and teleworkers (e.g. thecreativespace.ca) EDO; Developers 3.1.6 ▪ Operate an innovation hub that offers on-one business in- person and virtual consultations, business plan reviews, networking events, access to online learning and seminars/workshops ▪ Identify and advocate for the use of existing vacant buildings and/or storefronts as temporary artist space. EDO; SBEC; CFDC; BIA Page 151 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 33 # Action Lead/ Partner Timing S M L ▪ Explore the feasibility of a Makerspace to allow for entrepreneurs to collaborate, network and share resources and tools. 3.1.7 ▪ Conduct a service delivery audit to determine the opportunities to reduce operating costs for the town and the associated reduction in development approval/permitting costs. Town 3.1.8 ▪ Develop a Festival and Events Strategy to ensure a long- term vision and support for the town’s festivals and events. RCD Page 152 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 34 Appendices Page 153 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 35 Appendix I – Creative and Cultural Industries NAICS NAICS Creative Cultural Industries Tillsonburg Ontario Total businesses 1,501 1,446,355 722511 Full-service restaurants 20 16,718 541514 Computer systems design & related services (except video game design & devt.) 5 49,568 713991 Sports clubs, teams and leagues performing before a non-paying audience 4 1,582 541490 Other specialized design services 4 1,303 541430 Graphic design services 4 4,402 713940 Fitness and recreational sports centres 3 3,554 713910 Golf courses and country clubs 3 859 611610 Fine arts schools 2 1,600 541920 Photographic services 2 3,951 519190 All other information services 2 1,314 519130 Internet broadcasting and web search portals 2 1,287 515110 Radio broadcasting 2 464 451140 Musical instrument and supplies stores 2 509 323119 Other printing 2 1,604 713992 Other sport facilities 1 370 713299 All other gambling industries 1 154 712115 History and science museums 1 69 711511 Independent visual artists and artisans 1 2,469 711190 Other performing arts companies 1 321 711120 Dance companies 1 455 541870 Advertising material distribution services 1 462 541850 Display advertising 1 730 541515 Video game design and development services 1 518 541420 Industrial design services 1 633 541410 Interior design services 1 3,569 541340 Drafting services 1 697 532210 Consumer electronics and appliance rental 1 195 519121 Libraries 1 358 517919 All other telecommunications 1 752 517310 Wired and wireless telecommunications carriers (except satellite) 1 1,027 512110 Motion picture and video production 1 7,634 511211 Software publishers (except video game publishers) 1 1,545 451310 Book stores and news dealers 1 566 312120 Breweries 1 389 812921 Photo finishing laboratories (except one-hour) - 54 713999 All other amusement and recreation industries - 936 713950 Bowling centres - 183 713930 Marinas - 443 713920 Skiing facilities - 69 713291 Lotteries - 160 713210 Casinos (except casino hotels) - 23 Page 154 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 36 NAICS Creative Cultural Industries Tillsonburg Ontario 713120 Amusement arcades - 196 713110 Amusement and theme parks - 118 712190 Nature parks and other similar institutions - 89 712130 Zoos and botanical gardens - 38 712120 Historic and heritage sites - 61 712119 Other museums - 150 712111 Non-commercial art museums and galleries - 145 711513 Independent writers and authors - 2,323 711512 Independent actors, comedians and performers - 3,913 711322 Festivals without facilities - 453 711321 Performing arts promoters (presenters) without facilities - 432 711311 Live theatres and other performing arts presenters with facilities - 127 711130 Musical groups and artists - 3,146 711112 Musical theatre and opera companies - 145 711111 Theatre (except musical) companies - 479 541930 Translation and interpretation services - 1,244 541899 All other services related to advertising - 2,184 541891 Specialty advertising distributors - 523 541860 Direct mail advertising - 112 541840 Media representatives - 667 541830 Media buying agencies - 180 541810 Advertising agencies - 3,258 541320 Landscape architectural services - 909 541310 Architectural services - 2,828 526989 All other miscellaneous funds and financial vehicles - 1,047 519122 Archives - 36 515210 Pay and specialty television - 126 515120 Television broadcasting - 349 512290 Other sound recording industries - 133 512250 Record production and distribution - 200 512240 Sound recording studios - 269 512230 Music publishers - 275 512190 Post-production and other motion picture and video industries - 704 512130 Motion picture and video exhibition - 273 512120 Motion picture and video distribution - 244 511212 Video game publishers - 57 511190 Other publishers - 307 511140 Directory and mailing list publishers - 77 511130 Book publishers - 622 511120 Periodical publishers - 653 511110 Newspaper publishers - 653 453920 Art dealers - 587 442292 Print and picture frame stores - 248 414440 Sound recording merchant wholesalers - 34 Page 155 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 37 NAICS Creative Cultural Industries Tillsonburg Ontario 414420 Book, periodical and newspaper merchant wholesalers - 198 323120 Support activities for printing - 288 312130 Wineries - 314 % of total businesses 5.1% 10.0% Page 156 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 38 Appendix II – Employer Support Programs Min./Agency Program Purpose CAPITALIZATION AND FINANCING BDC (Business Development Canada) Business Development Bank of Canada BDC offers financing solutions for entrepreneurs, whether you’re looking to expand production, purchase new equipment or access financing for a special project. Loans available to help with working capital, buying a business, investing in real estate, purchasing equipment, start-up financing, technology financing, transferring a business or business expansion. BDC also offers entrepreneurs help with venture capital as well as growth and transitional capital. www.bdc.ca Federal – Canadian Crown Corporation Export Development Canada Crown corporation that supports and develops, directly or indirectly, Canada’s export trade and Canadian capacity to engage in that trade and to respond international business opportunities. EDC provides insurance and financial services, bonding products, and small business solutions to Canadian exporters and investors; EDC also provides online credit risk management tools. Services include export financing to customers, receivable insurance and due diligence. Export Express and Export Express Credit assists with marketing. http://www.edc.ca MEDJCT South Western Ontario / Eastern Ontario Development Fund Up to 15% grant (max $500K) / loan (max $5M) for job creation and investment. Supports: Investments in equipment, new technologies, talent and training to enhance business productivity and competitiveness, leading to growth; Investment in new operations in Eastern or Southwestern Ontario. Investment in existing operations that lead to business expansion and introduction of new products or services or new markets. Page 157 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 39 Min./Agency Program Purpose Priority will be given to projects that generate regional economic impacts beyond the company. www.ontario.ca/southwesternfund www.ontario.ca/page/eastern-ontario-development-fund FedDev Business Scale Up and Productivity Assists existing southern Ontario businesses to adopt new technologies that have the potential to improve productivity and expand their operations. Loans from $500K to $10M for new technologies, processes and related skills, business/market development and expansion, facilities improvement and expansion – up to 35% repayable contribution. 0% interest, flexible repayment terms. http://www.feddevontario.gc.ca/eic/site/723.nsf/eng/02466.html?OpenDocument Community Futures Development Corp. Community Futures Development Corp. Community based, not-for-profit organizations encouraging entrepreneurship and economic opportunities. Provides loans to small businesses in rural communities up to $250,000 for equipment, inventory, working capital, etc. https://www.cfontario.ca/index.php/public-information Innovation, Science and Economic Development Canada (ISED) Canada Small Business Financing Program Loan available from any chartered bank for companies with less than $10 M in revenues for capital acquisition. Up to $350 K ($1M for real estate) at prime + 3% +2% registration fee. www.ic.gc.ca/csbfp FedDev Ontario Southern Ontario Fund for Investment in Innovation Loans of $150,000 to $500,000 are available to support such growth activities as late stage commercialization, new product or service development new applications or market, or development or implementation of new processes or technologies. http://www.sofii.ca/ Page 158 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 40 Min./Agency Program Purpose (SOFII) Futurpreneur Canada Futurpreneur Loan of $20,000 to start business for individuals age 18 to 39. Those who qualify can also apply for an additional $40,000 through the Futurpreneur-BDC Start-Up Financing Program. http://www.futurpreneur.ca/en/resources/ Mentors provide business advice, as well as support and encouragement, to help young entrepreneurs remain focused on what is important for the success of their business. Find out more about being hand- matched with a Futurpreneur Canada mentor or about volunteering as a Futurpreneur Canada mentor. http://www.futurpreneur.ca/en/mentoring/ MEDJCT Summer Company Provides full-time students ages 15-29 an opportunity to start and run a summer business. Awards of up to $3,000. https://www.ontario.ca/page/start-summer-company-students MEDJCT Starter Company Provides young people, ages 18-29, with the resources and knowledge they need to start and grow their business. Candidates may be eligible to receive up to $5,000 to put towards their business. https://www.ontario.ca/page/small-business-advice-support-services-regulations Fed Dev Community Economic Development and Diversification No interest, repayable contributions from $250,000 up to $5 million per project for incorporated businesses, including Indigenous businesses. Non-repayable contributions from $250,000 up to $5 million per project for not-for-profit organizations. Funding is available to: Enhance business attraction, investment, retention and employment opportunities in southern Ontario communities. Develop and expand collaborative efforts that strengthen regional competitiveness. Support regional businesses, hubs and communities with the goal of economic diversification, integration and transformation. Page 159 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 41 Min./Agency Program Purpose Examples of projects include: Creating financing opportunities to reduce risk and enable businesses to make investments in innovative technologies. Integrating local businesses into national or global supply chains. https://www.feddevontario.gc.ca/eic/site/723.nsf/eng/02475.html?OpenDocument Innovation, Science and Economic Development Canada (ISED) Strategic Innovation Fund Five Streams - Stream 2 involves business expansion. Stream 3 is for attraction of large investment. Focus is on larger projects (over $10 million in requested contribution) http://www.ic.gc.ca/eic/site/125.nsf/eng/home Global Affairs Canada CanExport Up to $75,000 in funding to cover up to 75% of your international market development activities. Canadian small and medium-sized enterprises (SMEs) may choose up to (5) export markets to target, where your company has no or minimal business. https://www.tradecommissioner.gc.ca/funding-financement/canexport/sme-pme/index.aspx?lang=eng Agriculture and Agri-Food Canada AgriInnovate Program A repayable contribution of 50 percent of total eligible costs, to a maximum of $10 million for projects that aim to accelerate the commercialization, adoption and/or demonstration of innovative products, technologies, processes or services that increase agri-sector competitiveness and sustainability. In order to be eligible for funding, applicants must clearly illustrate how proposed projects will commercialize/adopt/demonstrate an innovation new to the sector or country. Expenses can include: Expansion or modernization of a facility or site to demonstrate, commercialize or adopt an innovative agricultural, agri-food or agri-based product, technology, process or service; Purchase and installation of equipment; Training and development of staff necessary for the successful completion of the project; and/or, Marketing activities provided they form a minor component of a project. Projects solely involving the Page 160 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 42 Min./Agency Program Purpose development or implementation of marketing plans are not eligible. https://www.agr.gc.ca/eng/agricultural-programs-and-services/agriinnovate-program/?id=1515682916298 Ministry of Natural Resources and Forestry Forest Sector Investment and Innovation Program (FSIIP) Support is available for projects with at least $3 million in eligible costs undertaken by for-profit manufacturers and processors of wood and forest biomass across Ontario, including saw mills, pulp and paper mills, secondary wood manufacturers and bio-economy projects. Funding support of up to 30% of eligible costs in the form of a performance-based loan (of which, up to 50% may be forgivable). Grants of up to 15% of eligible costs may be considered in exceptional situations at the discretion of the province. https://www.ontario.ca/page/forestry-sector-investment-innovation- program?_ga=2.177276007.354775256.1575041769-1215655203.1533664409 IESO Save on Energy Program Get up to $2,000 in incentives towards eligible energy-efficient lighting upgrades with the Small Business Lighting program. Energy efficient retrofit incentives are available through the Retrofit Program. https://saveonenergy.ca/ Natural Resources Canada NRCan Financial assistance is available to help fund your industrial facility’s energy management project. Natural Resources Canada (NRCan) will provide financial assistance of up to 50% of eligible costs, to a maximum of $40,000. The following types of projects may be eligible for assistance: ISO 50001 Energy Management Systems Standard projects Energy Management Information Systems (EMIS) projects Process Integration (PI) and Computational Fluid Dynamics (CFD) studies https://www.nrcan.gc.ca/energy/efficiency/industry/financial-assistance/5387 Angel Investors Angel Investors A community of professionals and industry leaders investing in innovative start-ups and providing Page 161 of 300 MDB Insight – Town of Tillsonburg – Economic Development Strategy Update Page 43 Min./Agency Program Purpose Ontario Ontario mentorship to promising entrepreneurs. A number of localized chapters exist. https://www.angelinvestorsontario.ca/ Page 162 of 300 Town of Tillsonburg Economic Baseline Analysis June 2020 Page 163 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page i Table of Contents 1. About This Report ......................................................................................................... 1 1.1 Data Sources ............................................................................................................................ 1 1.2 Demographic Profile ................................................................................................................ 2 1.3 Labour Force Profile ................................................................................................................. 9 1.4 Employment Growth Forecasts ............................................................................................. 16 1.5 Business Environment and Structure .................................................................................... 19 1.6 Benchmarking Industry Concentrations ............................................................................... 22 Page 164 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page ii List of Tables Table 1: Historic, Current and Projected Population Change, Tillsonburg & Comparators, 2006 to 2028 .. 3 Table 2: Major field of study of Population aged 15+ years, Tillsonburg & Comparators, 2018.................. 9 Table 3: Labour Force Status, Tillsonburg & Comparators, 2018 ................................................................. 9 Table 4: Labour Force by Industry (%), Tillsonburg & Comparators, 2018 ................................................. 10 Table 5: Labour Force by Industry (%), Tillsonburg, 2016 & 2018 .............................................................. 11 Table 6: Tillsonburg’s Labour force Composition based on Top 20 Industrial Subsectors (3-digit NAICS), 2018 ............................................................................................................................................................ 12 Table 7: Net Export (-)/Net Import (+) of Labour by top 20 industrial subsectors, Tillsonburg, 2016 ....... 13 Table 8: Resident Labour Force by Occupation (%), Tillsonburg & Comparators, 2018 ............................. 15 Table 9: Tillsonburg’s Resident Occupational Composition based on top 20 subsectors (4-digit NOC), 2018 ............................................................................................................................................................ 16 Table 10: Total Businesses, Tillsonburg, 2019 ............................................................................................ 19 Table 11: Businesses with and without Employees by Industry, Tillsonburg, 2019 ................................... 20 Table 12: Total Businesses with Employees by Employee Range, Tillsonburg, 2019 ................................. 21 Table 13: Tillsonburg’s Business Counts based on top 20 subsectors and Corresponding LQ’s (3-digit NAICS), 2019 ............................................................................................................................................... 22 List of Figures Figure 1: Population Trends, Tillsonburg, Woodstock & Ingersoll, 2006 to 2046 ........................................ 2 Figure 2: Population Trends, Oxford County, 2006 to 2046 ......................................................................... 3 Figure 3: Age of the Population by Broad Age Groups (%), Tillsonburg, 2011, 2016 & 2018 ....................... 4 Figure 4: Age of the Population by Broad Age Groups (%), Tillsonburg vs Comparators, 2018 ................... 5 Figure 5: Occupied Private Dwellings by Type, Tillsonburg & Comparators, 2016 ....................................... 5 Figure 6: Average Value of Dwellings ($), Tillsonburg & Comparators, 2011, 2016 & 2018 ........................ 6 Figure 7: Migration Levels, Tillsonburg and Comparators, 2016 .................................................................. 7 Figure 8: Median Household Income ($), Tillsonburg & Comparators, 2010, 2015, 2018 ........................... 7 Figure 9: Household Income by Broad Income Groups, ($), Tillsonburg & Comparators, 2018 .................. 8 Figure 10: Educational Attainment of Population aged 15+ years, Tillsonburg & Comparators, 2018 ........ 8 Figure 11: Place of Work for Residents of Tillsonburg, 2016 ...................................................................... 14 Figure 12: Place of Residence for Workers who Commute to Tillsonburg to work, 2016 .......................... 15 Figure 13: Employment Trends, Tillsonburg, Woodstock & Ingersoll, 2006 to 2046 ................................. 17 Figure 14: Employment Trends, Oxford County, 2006 to 2046 .................................................................. 18 Figure 15: Employment by Land-use Categories, Tillsonburg, 2016 to 2046 ............................................. 18 Figure 16: Concentration and Percentage of Manufacturing Sector, Tillsonburg and Key Comparators (2019) .......................................................................................................................................................... 23 Figure 17: Concentration and Percentage of the Top 5 Sub-Sectors (3-Digit NAICS) of Manufacturing, Tillsonburg and Key Comparators (2019) ................................................................................................... 24 Figure 18: Concentration and Percentage of Finance and Insurance Businesses, Tillsonburg and Key Comparators (2019) .................................................................................................................................... 25 Page 165 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page iii Figure 19: Concentration and Percentage of the Top 5 Sub-Sectors (3-Digit NAICS) of Finance and Insurance, Tillsonburg and Key Comparators (2019) .................................................................................. 26 Figure 20: Concentration and Percentage of Professional, Scientific and Technical Services Businesses, Tillsonburg and Key Comparators (2019) ................................................................................................... 27 Figure 21: Concentration and Percentage of the Top 5 Sub-Sectors (4-Digit NAICS) of Professional, Scientific and Technical Services, Tillsonburg and Key Comparators (2019) .............................................. 28 Figure 22: Concentration and Percentage of Transportation and Warehousing Businesses, Tillsonburg and Key Comparators (2019) ...................................................................................................................... 29 Figure 23: Concentration and Percentage of the Top 5 Sub-Sectors (3-Digit NAICS) of Transportation and Warehousing, Tillsonburg and Key Comparators (2019) ............................................................................ 29 Page 166 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 1 1. About This Report The Town of Tillsonburg is undertaking a review and update of its 2008 Economic Development Strategy. This report serves as an appendix to the Economic Development Strategy Update 2020-2025. It provides an overview of the current demographic, labour force, and industry composition in Tillsonburg. This economic baseline analysis for Tillsonburg is presented in comparison to the Tri-County (which includes Oxford County, Elgin County and Haldimand-Norfolk Census Division) and the Province of Ontario. Tillsonburg’s target sector concentrations are also analysed in comparison to Ingersoll, Woodstock, St Thomas and Stratford. 1.1 Data Sources The following data sources were used in developing this economic baseline analysis for The Town of Tillsonburg.  Oxford County Phase One Comprehensive Review, 2020  Statistics Canada, Canadian Business Counts, December 2019  Manifold Data Mining Inc., 2018  Statistics Canada, Census Profile, 2011 & 2016  Statistics Canada, National Household Survey, 2011 Notes on Data  The December 2019 Canadian Business Counts were used to determine the total number of registered businesses in Tillsonburg.  Statistics Canada’s Canadian Business Counts Data provides a record of business establishments by industry and size. This data is collected from the Canada Revenue Agency (CRA). The business data collected for Tillsonburg included all local businesses that met at least one of the three following criteria: Have an employee workforce for which they submit payroll remittances to CRA; or have a minimum of $30,000 in annual sales revenue; or are incorporated under a federal or provincial act and have filed a federal corporate income tax form within the past three years.  Manifold Data is a leading data and analytical service provider in Canada. It provides organizations with precise consumer data products, analytics, and predictive modeling. All data products are at the 6-digit postal code level, and each postal code has an average of 10-15 households.  Where possible, Manifold Data has been incorporated based on 2018 economic modelling and estimates. The data is modeled using the census data 2016 from Statistics Canada to the current year estimates with the following approaches: enhanced cohort survival methods, collaborative filtering techniques, and structural coherence techniques. Comparisons with Statistics Canada data over time has been used in a limited manner in this report and noted when done so.  The 2016 Census of Population is the latest and most widely available data product offered by Statistics Canada. It provides population, dwelling trends, immigration and ethnic diversity, income, education, labour force by industry and occupation and commuting patterns. Page 167 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 2 Definitions As part of this economic baseline analysis, the Location Quotient (LQ) Analysis was completed to determine the concentration of industries (businesses) in Tillsonburg relative to the Province. It reveals what makes a region “unique.” The LQ’s Classifications are as follows:  LQ greater than or equal to 1.25 – indicates that the community has a proportionately ‘high’ concentration of industries than the larger comparison area.  LQ lower than 1.25 and higher than 1.0 – indicates that the community has an ‘above average’ concentration of industries than the larger comparison area.  LQ 1.0 – indicates industry concentration in the community is ‘on par’ with the larger comparison area.  LQ lower than 1.0 and higher than 0.75 – indicates that the community has a ‘moderate’ concentration of industries than the larger comparison area.  LQ lower than 0.75 - indicates that the community has a ‘low’ concentration of industries than the larger comparison area. 1.2 Demographic Profile The demographic profile details the population and related trends, including the age of the population, dwelling trends, immigration and ethnic diversity, income levels and educational profile for Tillsonburg and comparator communities. 1.2.1 Population and Related Trends As part of Oxford County, Tillsonburg forms one of the three urban centers representing approximately 63% of the County’s population (Figure 1 & Figure 2). With a population of 16,749 people in 2018, Tillsonburg represented 14% of Oxford County’s population. The city of Woodstock accounted for the largest share of Oxford County’s population at 37% while Ingersoll represented 12%. Figure 1: Population Trends, Tillsonburg, Woodstock & Ingersoll, 2006 to 2046 Source: Statistics Canada, 2011 Census of Population. Statistics Canada, 2016 Census of Population. 2018 Manifold Data Mining Inc. Oxford County Phase One Comprehensive Review, 2020. 35,480 43,916 51,054 64,080 14,822 16,749 17,909 21,530 11,760 13,529 14,828 18,430 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2006 2011 2016 2018 2021 2023 2026 2028 2031 2036 2041 2046Population (number)Woodstock Tillsonburg Ingersoll Page 168 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 3 Population growth is evident in Tillsonburg; estimates forecast an average annual growth rate of 3% from 2006 to 2046. Considering the past three census periods, the town saw a population growth of 7% from 14,822 in 2006 to 15,872 in 2016. As per the census data, population growth in Tillsonburg is at a lower rate than other urban centers including Woodstock (15% growth for the same time period) and Ingersoll (8% growth for the same time period). As per the2018 Manifold Data Mining Inc., Tillsonburg saw population growth of 6% (net increase of 1,050 people from 2016-2018. This rate of population growth is similar to that of Woodstock (7%) and Ingersoll (6%). As per the 2020 Oxford County Phase One Comprehensive Review, the County is forecast to grow to 161,000 in total population by 2046. Considering the 2018 population base, this represents a growth of 39,180 residents or a 33% growth. The majority of this resident growth can be attributed to the city of Woodstock, anticipated to witness a net growth of 20,164 people or 51% of Oxford County’s growth. Tillsonburg is projected to grow by 4,781 people from 2018 to 2046 and is expected to account for 12% of the County’s growth. Rural Oxford is also projected to grow; As per the 2020 Oxford County Phase One Comprehensive Review, 25% growth has been allocated throughout the Townships, with serviced settlement areas being where most growth in the rural area municipalities is expected to occur. Figure 2: Population Trends, Oxford County, 2006 to 2046 Source: Statistics Canada, 2011 Census of Population. Statistics Canada, 2016 Census of Population. 2018 Manifold Data Mining Inc. Oxford County Phase One Comprehensive Review, 2020. Considering the regional trade area for Tillsonburg, the Tri-County saw population growth of 5.5% in recent years. While historically, Tillsonburg’s population growth rate of 7% was lower than the provincial rate of 11%, recent estimates (2016-2018) show that Tillsonburg witnessed just under a 6% growth rate, similar to the provincial growth rate. Tillsonburg is expected to show an annual population growth of 0.69% for the next 5 years. This translates to 3.5% growth from 2018-2023, which is slightly lower than the provincial growth rate of 5%. Table 1: Historic, Current and Projected Population Change, Tillsonburg & Comparators, 2006 to 20 28 Year Tillsonburg Oxford County Tri-County Ontario 2006 14,822 102,756 295,919 12,160,282 2011 15,301 105,719 302,298 12,851,821 102,756 117,520 128,718 156,700 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2006 2011 2016 2018 2021 2023 2026 2028 2031 2036 2041 2046Population (number)Oxford County Page 169 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 4 Year Tillsonburg Oxford County Tri-County Ontario 2016 15,872 110,862 309,627 13,448,494 2018 16,749 117,520 326,595 14,256,800 2023 17,341 123,106 335,454 14,929,100 2028 17,909 128,718 344,123 15,633,200 % of Population Change (2006-2016) 7.1% 7.9% 4.6% 10.6% % of Population Change (2016-2018) 5.5% 6.0% 5.5% 6.0% % of Population Change (2018-2023) 3.5% 4.8% 2.7% 4.7% % of Population Change (2023-2028) 3.3% 4.6% 2.6% 4.7% % of Population Change (2006-2028) 21% 25% 16% 29% Source: Statistics Canada, 2011 Census of Population. Statistics Canada, 2016 Census of Population. 2018 Manifold Data Mining Inc. In addition to analysing the growth rate of Tillsonburg’s population, it is important to examine the age of the population by broad age groups. This will provide insights into current and future talent needs, housing needs and support programming. As shown in Figure 3, Tillsonburg’s population continues to be dominated by a senior age cohort. From 2011 to 2018, Tillsonburg saw an increase in retirees (65+ years) from 25% in 2016 to 28% in 2018. Opportunities exist to provide for infrastructure and programming that will support seniors who want to age in place (e.g. seniors housing, lifestyle programming). Figure 3: Age of the Population by Broad Age Groups (%), Tillsonburg, 2011, 2016 & 2018 Source: Statistics Canada, 2011 Census of Population. Statistics Canada, 2016 Census of Population. 2018 Manifold Data Mining Inc. Regarding the core labour force, 20% of Tillsonburg’s population is aged between 25 and 44 years. This is below provincial rates at 26%. This age cohort has not seen a rate increase between the two census periods and 2018, which may suggest a trend towards a future skills gap. Generally, a higher proportion of the population 65 years and above indicates declining participation in the labour force and per-capita income. 15% 11%11%11% 14%13% 25% 15% 10%10%11% 13%14% 28% 15% 10%10%10%12% 14% 28% 0% 5% 10% 15% 20% 25% 30% 0-14 15-24 25-34 35-44 45-54 55-64 65+Total Population Age Groups (years) 2011 2016 2018 Page 170 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 5 Figure 4: Age of the Population by Broad Age Groups (%), Tillsonburg vs Comparators, 2018 Source: 2018 Manifold Data Mining Inc. 1.2.2 Dwelling Trends As per the 2016 Statistics Canada data, Tillsonburg comprised of approximately 7,125 occupied private dwellings. As shown in Figure 5Figure 6, Tillsonburg’s existing housing stock is predominately comprised of single-detached dwelling (i.e. low-density units) at 68%. Interestingly, Tillsonburg has a higher percentage of low-rise apartment buildings (less than 5 floors) at 14% then the Tri-County (9%) and the Province (10%). However, Tillsonburg has a significantly lower percentage of high-rise buildings (greater than 5 storeys) at 6% then the Province at 17%. It is understood that a wide variety of housing types is needed to support a younger cohort, newcomers, single households and seniors. This will, in turn, attract and encourage residents to live, work and or retire in Tillsonburg. Figure 5: Occupied Private Dwellings by Type, Tillsonburg & Comparators, 2016 Source: Statistics Canada, 2016 Census of Population. 15% 10%10%10% 12% 14% 28% 17% 12%11%11% 13%16% 19% 16% 12%13%13%14%14% 17% 0% 5% 10% 15% 20% 25% 30% 0-14 15-24 25-34 35-44 45-54 55-64 65+Percentage of Total PopulationAge Groups (years) Tillsonburg Tri-County Ontario 68% 78% 54% 6% 3% 17% 4% 4% 6% 5% 4% 9% 3% 2% 3% 14% 9% 10% 0%10%20%30%40%50%60%70%80%90%100% Tillsonburg Tri-County Ontario Occupied Private Dwellings by Type (%) Single-detached house Apartment in a building that has five or more storeys Semi-detached house Row house Apartment or flat in a duplex Apartment in a building that has fewer than five storeys Page 171 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 6 As shown in Figure 6, Tillsonburg in 2018 has a lower average housing value of $293,016 compared to the Tri-County $331,842 and the Province $569,709. Further, average housing value in Tillsonburg increased by 23% across the 2011 to 2018 period, which is 13% less than that of the Province. This is important as it highlights the relative affordability of dwellings within Tillsonburg, which is an important factor in the attraction of graduates, young families and professionals and growing business and investment. It also indicates that housing prices are increasing but are still affordable. Figure 6: Average Value of Dwellings ($), Tillsonburg & Comparators, 2011, 2016 & 2018 Statistics Canada, 2016 Census of Population. Statistics Canada; 2011 Census of Population. 2018 Manifold Data Mining Inc. 1.2.3 Immigration and Ethnic Diversity In 20161, both Tillsonburg and the Tri-County had higher proportions of non-immigrants at 88% and 89% respectively of total population compared to the Provincial rate of 69%. Tillsonburg and the Tri-County have seen lower immigrant attraction rates, possibly due to the nature of immigrants preferring larger metropolitan areas to settle. The comparatively low proportion of immigration attraction could pose a long-term challenge to the town and the Tri-County when attracting both skilled and unskilled labour. Considering the ethnic diversity of Tillsonburg, it was estimated that Tillsonburg’s population is comprised of a very small visible minority2 of only 2.6%, with the remaining 97.4% of the population predominantly of European descent. The largest visible minority present within Tillsonburg was Southeast Asian, which accounted for 136 people or 0.8%, followed by Black, which represented 109 people or 0.7% of the population. It should be noted that the cultural groups (including Dutch heritage) has had a positive and growing influence of in terms of investment and community growth. 1 2016 data was used as it is the latest data available. 2 The visible minority refers to whether a person belongs to a visible minority group as defined by the Employment Equity Act. Visible minorities are defined as "persons, other than Aboriginal peoples , who are non-Caucasian in race or non-white in colour." $224,400 $261,565 $293,016 $244,726 $291,319 $331,842 $367,428 $506,409 $569,709 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2011 2016 2018Average Value of Dwellings ($)Tillsonburg Tri-County Ontario Page 172 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 7 Figure 7: Migration Levels, Tillsonburg and Comparators, 2016 Source: Statistics Canada, 2016 1.2.4 Income Levels In 2018, Tillsonburg showed a median household income of $62,375, which is comparatively lower than $77,262 in Tri-County and the Province at $79,939. However, median incomes of the resident population have been increasing, witnessing a 16% rate of increase ($10,147) from 2011 to 2018. Figure 8: Median Household Income ($), Tillsonburg & Comparators, 2010, 2015, 2018 Source: Statistics Canada, 2011 National Household Survey. Statistics Canada, 2016 Census of Population 2018 Manifold Data Mining Inc. Further analysis of income groups shows that (Figure 9) Tillsonburg has a lower percentage of high- income earners over $100,000 of 5%, compared to the Province at 9%. Tillsonburg’s largest income brackets are the $20,000 to $39,999 bracket, representing 30% of total income groups, and the $40,000 to $59,999 bracket, which represents 21% of total household incomes. Both of these income brackets were larger than the Tri-County and Province, supporting the findings in Figure 8 that Tillsonburg households earn less. 88% 89% 69% 11% 9% 18% 1% 1% 7%4% 0.0% 0.3% 2% 0%10%20%30%40%50%60%70%80%90%100% Tillsonburg Tri-County Ontario Percentage of Total MigrationComparator CommunitiesNon-immigrants Immigrants to 2000 Immigrants 2001 to 2010 Immigrants 2011 to 2016 Non-permanent residents $52,228 $58,418 $62,375 $61,668 $69,825 $77,262 $66,358 $74,287 $79,939 $- $20,000 $40,000 $60,000 $80,000 $100,000 2010 2015 2018Median Household Income ($)Tillsonburg Tri-county Ontario Page 173 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 8 Figure 9: Household Income by Broad Income Groups, ($), Tillsonburg & Comparators, 2018 Source: 2018 Manifold Data Mining Inc. 1.2.5 Educational Profile In 2018, 26% Tillsonburg’s population aged 15 years and over had no certificate, diploma or degree compared to the Province at 18%. 33% of Tillsonburg’s population had a secondary (high) school diploma or equivalency certificate while 23% had college, CEGEP or non-university diplomas. Only 11% of people in Tillsonburg and the Tri-County have a university certificate, diploma or degree at a bachelor level or above, compared to 26% of people in the Province. Figure 10: Educational Attainment of Population aged 15+ years, Tillsonburg & Comparators, 2018 Source: 2018 Manifold Data Mining Inc. Table 2Table 2 shows the major fields of study for Tillsonburg’s population aged 15 years and older with a postsecondary certificate, diploma or degree. Similar to regional and provincial trends, majority of Tillsonburg’s population have an education related to architecture, engineering, and related technologies (20%), followed by health and related fields (19%) and business, management and public administration (18%). 10% 12% 15% 19% 17% 17% 30% 28% 24% 21% 20% 17% 10% 11% 11% 5% 6% 7% 5% 5% 9% 0%10%20%30%40%50%60%70%80%90%100% Tillsonburg Tri-county Ontario Household Income by income groups (%) Under $10,000 $10,000 to $19,999 $20,000 to $39,999 $40,000 to $59,999 $60,000 to $79,999 $80,000 to $99,999 $100,000 and over 26% 24% 18% 33% 30% 27% 3% 4% 3% 3% 5% 3% 23% 25% 21% 1% 2% 2% 11% 11% 26% 0%10%20%30%40%50%60%70%80%90%100% Tillsonburg Tri-County Ontario Educational Attainment (%) No certificate, diploma or degree Secondary (high) school diploma or equivalency certificate Trades certificate or diploma Certificate of Apprenticeship or Certificate of Qualification College, CEGEP or other non-university certificate or diploma University certificate or diploma below bachelor level University certificate, diploma or degree at bachelor level or above Page 174 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 9 Table 2: Major field of study of Population aged 15+ years, Tillsonburg & Comparators, 2018 Major Field Of Study Tillsonburg % of total Tri-County % of total Ontario % of total Total 5,937 100% 125,230 100% 6,614,245 100% Education 414 7% 7,796 6% 385,894 6% Visual & performing arts, & communications tech 174 3% 3,828 3% 280,284 4% Humanities 269 5% 5,140 4% 397,266 6% Social and behavioural sciences and law 630 11% 11,973 10% 872,236 13% Business, management and public administration 1,084 18% 20,378 16% 1,372,660 21% Physical and life sciences and technologies 153 3% 3,029 2% 288,095 4% Mathematics, computer and information sciences 181 3% 3,319 3% 326,234 5% Architecture, engineering, and related technologies 1,212 20% 30,252 24% 1,254,360 19% Agriculture, natural resources and conservation 199 3% 5,514 4% 132,752 2% Health and related fields 1,105 19% 23,379 19% 928,429 14% Personal, protective and transportation services 516 9% 10,529 8% 373,707 6% Other fields of study - 0% 93 0% 2,328 0% Source: 2018 Manifold Data Mining, Inc. 1.3 Labour Force Profile The labour force profile details the employment and unemployment trends, the labour force by industry and occupation, labour force concentration and commuting patterns for Tillsonburg. 1.3.1 Labour Force Status Table 3Table 3 shows that Tillsonburg has a marginally lower unemployment rate of 5% compared to the Province’s 6%. The comparatively lower participation and employment rate could indicate a slowdown in the local labour market, as there are less people employed or actively looking for a job then compared to the Province. This could be reflective of limited employment opportunities within Tillsonburg, or more likely, reflective of the large retiree population based on Tillsonburg’s attractiveness for that age demographic. It should be noted that the data presented here is pre-COVID-19 and may not reflect current community conditions. To provide context for Tillsonburg, the data for London CMA provided by the Canadian Economic Dashboard and COVID-19 related indicators is presented here3. As of 2018, London CMA showed a participation rate of 61.5% and an unemployment rate of 5.2%. As per the Canadian Economic Dashboard and COVID-19 related indicators, the unemployment rate in London CMA was recorded at 9.9% in April 2020; a 3.1 point increase from the previous month. Participation rate also decreased by 1.9 points from the previous month to 59.7% in April 2020. Table 3: Labour Force Status, Tillsonburg & Comparators, 2018 Labour Force Status for Population Aged 15+ Years Tillsonburg Oxford Tri-County Ontario 3 Data is available only at the CMA level. Source: Labour Market Indicators, April 2020 Page 175 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 10 Labour Force Status for Population Aged 15+ Years Tillsonburg Oxford Tri-County Ontario Participation rate (%) 55% 62% 63% 64% Unemployment rate (%) 5% 5% 5% 6% Source: 2018 Manifold Data Mining Inc. 1.3.2 Labour Force by Industry Note, the data in this section is labour force by industry, meaning that it is place of residence. Table 4 Error! Reference source not found.shows the percentage of the labour force by industry in Tillsonburg and comparative rates in the Tri-County and Ontario in 2018. The analysis for Tillsonburg shows that employment is centred in the following industry sectors:  Manufacturing – 1,882 people (24% of the total labour force)  Retail trade – 1,059 people (14% of the total labour force)  Health care and social assistance – 731 people (10% of the total labour force)  Accommodation and food services – 523 people (7% of the total labour force) Compared to the Tri-County and Ontario, Tillsonburg has a significantly higher proportion of the labour force employed in the manufacturing sector at 24%, compared to the Ontario rate of 10%. Tillsonburg should closely monitor changes in the manufacturing sector and the provision of support services as it is a critical employer within the community accounting for nearly one-fourth of total jobs. Given the anticipated impact of COVID-19 on the Province’s retail and accommodation and food services sectors, more support may be required to ensure the long-term sustainability of these sectors and a return to work for the 1,500 people employed in these sectors. Table 4: Labour Force by Industry (%), Tillsonburg & Comparators, 2018 Labour force population aged 15+ years by industry (NAICS) Tillsonburg % of total Tri-County % of total Ontario % of total All industries 7,693 100% 167,347 100% 7,475,890 100% Agriculture, forestry, fishing and hunting 196 2.5% 11,498 6.9% 114,696 1.5% Mining, quarrying, and oil and gas extraction 29 0.4% 669 0.4% 39,583 0.5% Utilities 60 0.8% 1,408 0.8% 64,914 0.9% Construction 429 5.6% 13,517 8.1% 503,917 6.7% Manufacturing 1,882 24.5% 29,118 17.4% 717,354 9.6% Wholesale trade 233 3.0% 6,751 4.0% 297,182 4.0% Retail trade 1,059 13.8% 17,659 10.6% 818,675 11.0% Transportation and warehousing 336 4.4% 9,482 5.7% 356,339 4.8% Information and cultural industries 86 1.1% 2,109 1.3% 201,583 2.7% Finance and insurance 219 2.8% 4,861 2.9% 412,156 5.5% Real estate and rental and leasing 143 1.9% 2,301 1.4% 168,046 2.2% Professional, scientific and technical services 320 4.2% 6,114 3.7% 603,992 8.1% Management of companies and enterprises - 0.0% 162 0.1% 17,751 0.2% Admin & support, waste mgmt. & remediation 339 4.4% 7,050 4.2% 364,118 4.9% Educational services 324 4.2% 8,944 5.3% 559,819 7.5% Health care and social assistance 731 9.5% 18,336 11.0% 789,330 10.6% Page 176 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 11 Labour force population aged 15+ years by industry (NAICS) Tillsonburg % of total Tri-County % of total Ontario % of total Arts, entertainment and recreation 128 1.7% 3,081 1.8% 171,333 2.3% Accommodation and food services 523 6.8% 10,126 6.1% 505,328 6.8% Other services (except public administration) 360 4.7% 7,708 4.6% 322,166 4.3% Public administration 296 3.8% 6,454 3.9% 447,604 6.0% Source: 2018 Manifold Data Mining Inc. Labour force in Tillsonburg has been growing over the years; the town witnessed a 3% (net increase of 220 people) over the 2011 to 2016 census periods. More recently, as shown in Table 5, Tillsonburg’s labour force grew by 7% (net increase of 473 people). The manufacturing sector shows the highest growth in the labour force; a net increase of 57 people, followed by real estate and rental and leasing and information and cultural industries. Table 5: Labour Force by Industry (%), Tillsonburg, 2016 & 2018 Labour force population aged 15+ years by industry (NAICS) Year Labour Force Change 2016-2018 2016 2018 Net Change % Change All industries 7,220 7,693 473 7% Agriculture; forestry; fishing and hunting 170 196 26 15% Mining; quarrying; and oil and gas extraction 30 29 1 -3% Utilities 35 60 25 71% Construction 420 429 9 2% Manufacturing 1,825 1,882 57 3% Wholesale trade 220 233 13 6% Retail trade 1,030 1,059 29 3% Transportation and warehousing 320 336 16 5% Information and cultural industries 50 86 36 72% Finance and insurance 195 219 24 12% Real estate and rental and leasing 95 143 48 51% Professional; scientific and technical services 290 320 30 10% Management of companies and enterprises - - - - Admin & support, waste mgmt. & remediation services 315 339 24 8% Educational services 295 324 29 10% Health care and social assistance 710 731 21 3% Arts; entertainment and recreation 110 128 18 16% Accommodation and food services 515 523 8 2% Other services (except public administration) 340 360 20 6% Public administration 265 296 31 12% Source: Statistics Canada, 2016 Census of Population 2018 Manifold Data Mining Inc. 1.3.3 Labour force by Industry Concentration The labour force by industry analysis was completed at the 3-digit industry sub-sectors to determine Page 177 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 12 where the majority of Tillsonburg labour force was concentrated. These top-20 subsectors were then benchmarked against the Province to determine the unique sectors for Tillsonburg’s labour force and the sectors that lag behind with respect to the Province. Table 6 shows the top 20 industry sub-sectors, where the majority of Tillsonburg’s labour force are employed. Within the manufacturing sector, transportation equipment manufacturing employs the majority of Tillsonburg’s labour force; approximately 1,115 people (14% of the total labour force). other major employment sectors for Tillsonburg’s labour force include food services, administrative and support services, educational services and professional, scientific and technical services. Compared to the benchmark, the labour force employed in the transportation equipment manufacturing shows a high location quotient of 6.97, indicating that the community has a proportionately ‘high’ concentration of labour force than the Province. Sectors including machinery manufacturing, truck transportation, motor vehicle and parts dealers and fabricated metal product manufacturing also showed a proportionately ‘high’ concentration of labour force compared to the Province. Tillsonburg’s labour force shows a comparatively low employment concentration in professional, scientific and technical services with an LQ of 0.51. This subsector comprises establishments primarily engaged in activities in which human capital is the major input and include legal services; architectural, engineering and related services; specialized design services; computer systems design and related services and scientific research and development services. Table 6: Tillsonburg’s Labour force Composition based on Top 20 Industrial Subsectors (3-digit NAICS), 2018 Labour force population aged 15+ years by industry subsectors (NAICS) Tillsonburg Percent LQ 336 Transportation equipment manufacturing 1,115 14.49% 6.97 333 Machinery manufacturing 163 2.12% 2.87 484 Truck transportation 210 2.73% 1.9 441 Motor vehicle and parts dealers 173 2.25% 1.86 332 Fabricated metal product manufacturing 120 1.56% 1.72 445 Food and beverage stores 316 4.11% 1.57 111 - 112 Farms 163 2.12% 1.56 311 Food manufacturing 137 1.78% 1.53 452 General merchandise stores 161 2.09% 1.46 811 Repair and maintenance 131 1.70% 1.33 623 Nursing and residential care facilities 179 2.33% 1.18 722 Food services and drinking places 489 6.36% 1.06 238 Specialty trade contractors 315 4.10% 0.99 624 Social assistance 151 1.96% 0.96 561 Administrative and support services 339 4.41% 0.94 913 Local, municipal and regional public administration 162 2.11% 0.92 621 Ambulatory health care services 222 2.89% 0.82 622 Hospitals 178 2.31% 0.77 611 Educational services 324 4.21% 0.56 541 Professional, scientific and technical services 320 4.16% 0.51 Page 178 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 13 Source: Statistics Canada, 2016 Census of Population 2018 Manifold Data Mining Inc. 1.3.4 Commuting Patterns While the labour force by industry data provides information on the type of industry where Tillsonburg’s population are employed, it does not indicate if the labour force is employed in industries within Tillsonburg or if they commute outside the town to work. The commuting patterns are important in this regard as it indicates where Tillsonburg’s labour force live and work. As shown in Table 7, approximately 3,315 residents worked in Tillsonburg’s industrial sector while 2,710 of its resident’s commute outside the town to work in other communities. Tillsonburg attracts approximately 4,215 workers to work in the town. This indicates that the town is a net importer of workers and may act as a regional provider of employment for residents from surrounding communities. Table 7 also provides a detailed examination of the commuting patterns for Tillsonburg’s top 20 Industrial Subsectors (as described in Table 6). Analyzing the commuting patterns of Tillsonburg’s top 20 Industrial Subsectors is important as it helps identities the sectors that provide employment for the town and the region4. Key insights are described below:  The transportation equipment manufacturing with a high labour force LQ of 6.97 is a major employment sector for the town and the surrounding communities. The sector employs approximately 525 residents and attracts 1,020 workers from surrounding communities.  The machinery manufacturing, motor vehicle and parts dealers and fabricated metal product manufacturing sectors show high labour force LQ’s and also act as a net importer of workers.  Industries which have the highest number of residents traveling outside of Tillsonburg to work include the transportation equipment manufacturing sector, food services and drinking places, educational services sector, truck transportation and hospitals. including food and beverage stores, educational services. However, when accounted for inflows only the truck transportation, farms and food and beverage stores recorded a net export of workers. Table 7: Net Export (-)/Net Import (+) of Labour by top 20 industrial subsectors, Tillsonburg, 2016 Labour force population aged 15+ years by industry subsectors (NAICS) Residents working IN Tillsonburg Tillsonburg resident ‘working outside’ Tillsonburg (A) Non-residents ‘working in’ Tillsonburg (B) B-A = Net Import (+)/Net Export (-) Total 3,315 2,710 4,215 1,505 336 Transportation equipment manufacturing 525 480 1,020 540 722 Food services and drinking places 295 150 180 30 561 Administrative and support services 145 55 90 35 611 Educational services 125 125 125 0 541 Professional, scientific and technical services 95 85 130 45 445 Food and beverage stores 170 90 30 -60 238 Specialty trade contractors 85 70 85 15 621 Ambulatory health care services 135 65 170 105 4 Tillsonburg’s Labour force Composition based on Top 20 Industrial Subsectors is 2018 data whereas the Net Export (-)/Net Import (+) of Labour by top 20 industrial subsectors is 2016 data. The data should be interpreted for insights or trends and not for absolute numbers. Page 179 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 14 484 Truck transportation 0 110 20 -90 623 Nursing and residential care facilities 95 70 115 45 622 Hospitals 75 100 160 60 441 Motor vehicle and parts dealers 105 60 125 65 111 - 112 Farms (111 to 112) 10 85 20 -65 333 Machinery manufacturing 70 65 220 155 913 Local, municipal & regional public admin 95 30 90 60 452 General merchandise stores 120 20 110 90 624 Social assistance 50 35 90 55 311 Food manufacturing 75 30 165 135 811 Repair and maintenance 45 60 95 35 332 Fabricated metal product manufacturing 50 85 145 60 Source: Statistics Canada, 2016 Census of Population. Figure 11: Place of Work for Residents of Tillsonburg, 2016 & Figure 12: Place of Residence for Workers who Commute to Tillsonburg to work, 2016 illustrate where residents of Tillsonburg work and the communities where Tillsonburg attracts workers from. The majority of resident out-commuters travel to work to Norfolk County (690 people – 22% of the commuting workforce), followed by London (350 people – 11% of total) and Woodstock (340 people – 11% total). Figure 11: Place of Work for Residents of Tillsonburg, 2016 Source: Statistics Canada, 2016 Census of Population. 22% 11% 11%10% 5% 4% 3% 3% 2% 2% 1% 13%Norfolk County London Woodstock Ingersoll South-West Oxford Norwich Bayham St. Thomas Haldimand County Page 180 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 15 Tillsonburg attracts in-commuting workers traveling from Norfolk County (1,595 people – 38% of total), Bayham (595 people – 14% of total) and Norwich (390 people – 9% of total) to work. Figure 12: Place of Residence for Workers who Commute to Tillsonburg to work, 2016 Source: Statistics Canada, 2016 Census of Population. 1.3.5 Labour Force by Top Occupation As indicated in Table 8, the (resident) labour force by occupations shows that sales and service occupations rank the highest in Tillsonburg, accounting for 23% or 1,834 of total occupations. This number falls in line with the Province and is 3% higher than the Tri-County area. The trades, transport and equipment operators and related occupations rank second highest in Tillsonburg at 17% (1,338 occupations), most likely due to the high proportion of manufacturing jobs within the Town and region. Table 8: Resident Labour Force by Occupation (%), Tillsonburg & Comparators, 2018 Total labour force population aged 15 years and over by Occupation - (NOC) Tillsonburg % of total Tri- County % of total Ontario % of total All occupations 7,693 100% 167,347 100% 7,475,890 100% Management occupations 600 8% 17,861 10% 845,997 11% Business, finance & administration occupations 895 12% 20,613 12% 1,197,320 16% Natural & applied sciences & related occupations 310 4% 6,261 4% 559,763 7% Health occupations 455 6% 11,092 7% 483,047 6% Occupations in education, law & social, community & government services 644 8% 14,925 9% 888,485 12% Occupations in art, culture, recreation & sport 141 2% 3,278 2% 255,777 3% Sales & service occupations 1,834 24% 34,762 21% 1,731,070 23% Trades, transport & equipment operators & related 1,338 17% 33,859 20% 985,909 13% Natural resources, agriculture & related production 235 3% 7,374 4% 135,330 2% 38% 14%9% 8% 6% 5% 4% 3% 3%3%1%1%3% Norfolk County Bayham Norwich South-West Oxford London Malahide St. Thomas Ingersoll Woodstock Page 181 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 16 Total labour force population aged 15 years and over by Occupation - (NOC) Tillsonburg % of total Tri- County % of total Ontario % of total Occupations in manufacturing & utilities 1,241 16% 17,322 10% 393,184 5% Source: 2018 Manifold Data Mining Inc. Table 9 shows Tillsonburg’s top 20 industrial subsectors based on the 4-digit National Occupation Classification (NOC). Combined, these subsectors account for 44.8% or 3,447 of the total occupations. Motor vehicle assemblers, inspectors and testers was the largest subsector at 7.9% (606 occupations), followed by retail salesperson at 4.8% (369 occupations) and food counter attendants, kitchen helpers and related support occupations (3.1%). Table 9: Tillsonburg’s Resident Occupational Composition based on top 20 subsectors (4-digit NOC), 2018 Total labour force population aged 15+ years by Occupation (NOC) Tillsonburg % of total All occupations 7,693 100.0% Sub-total, top 20 National Occupation Classification (NOC) subsectors 3,447 44.8% 9522 Motor vehicle assemblers, inspectors and testers 606 7.9% 6421 Retail salespersons 369 4.8% 6711 Food counter attendants, kitchen helpers and related support occupations 239 3.1% 7511 Transport truck drivers 201 2.6% 6611 Cashiers 193 2.5% 0621 Retail and wholesale trade managers 160 2.1% 7452 Material handlers 156 2.0% 7321 Automotive service technicians, truck and bus mechanics and mechanical repairers 152 2.0% 4032 Elementary school and kindergarten teachers 146 1.9% 9619 Other labourers in processing, manufacturing and utilities 134 1.7% 1411 General office support workers 125 1.6% 7237 Welders and related machine operators 125 1.6% 6513 Food and beverage servers 111 1.4% 1221 Administrative officers 110 1.4% 3413 Nurse aides, orderlies and patient service associates 110 1.4% 3012 Registered nurses and registered psychiatric nurses 96 1.2% 6733 Janitors, caretakers and building superintendents 92 1.2% 6322 Cooks 91 1.2% 6622 Store shelf stockers, clerks and order fillers 84 1.1% 8612 Landscaping and grounds maintenance labourers 74 1.0% 7311 Construction millwrights and industrial mechanics 73 0.9% Sub-total, all other subsectors 4,243 55.2% Source: 2018 Manifold Data Mining Inc. 1.4 Employment Growth Forecasts While the labour force profile (Section 1.3) provides important information on the number of people who work or are able to work in any given industry during the reference period, it does not accurately represent the employment base of a community. As place of residence data, it include residents who work in the community and those who commute outside to work. The commuting patterns (Section Page 182 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 17 1.3.4) does provide information on the employment base of a community. However, the data has limitations5. This section examines the employment profile (place of work) of Tillsonburg from 2006 and forecasts to 2046. Place of Work data provides the overall number of jobs in the community, irrespective of where the employee resides. The data provided here is obtained from the 2020 Oxford County Phase One Comprehensive Review. In 2016, Tillsonburg accounted for 8,580 jobs, representing 15% of all jobs in Oxford County. The town witnessed job losses between 2006 to 2011, in large part due to the recession of 2008 – 2009 and subsequent impact. The City of Woodstock has the largest share of jobs within Oxford County at 44% or 25,430 jobs. Employment is forecast to grow in the County to an employment base of 78,390 people by 2046. This represents a net growth of over 21,000 jobs or 37% growth. Similar to population trends, the majority of this employment growth will be accommodated in Woodstock, the largest urban centre in the County. Tillsonburg’s employment is projected to grow to 10,800 jobs by 2046; a net increase of 2,220 jobs or 26% growth. Tillsonburg is expected to account for 11% of the County’s employment growth while Ingersoll will accommodate 15% of this growth. Figure 13: Employment Trends, Tillsonburg, Woodstock & Ingersoll, 2006 to 2046 Source: Oxford County Phase One Comprehensive Review, 2020. 5 It compares the 2018 labour force data and the 2016 commuting patterns. The data should be interpreted for insights or trends and not for absolute numbers. 17,130 25,430 38,700 9,570 8,580 10,800 - 10,000 20,000 30,000 40,000 50,000 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046Employment (number)Woodstock Tillsonburg Ingersoll Page 183 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 18 Figure 14: Employment Trends, Oxford County, 2006 to 2046 Source: Oxford County Phase One Comprehensive Review, 2020. The Oxford County Phase One Comprehensive Review also categories employment by land-use (population related employment, employment land employment and rural based employment). The majority of Tillsonburg’s employment is attributed to employment-land related employment with 5,170 jobs in 2016. These include traditional industrial-type employment primarily accommodated in designated industrial lands and employment areas. Tillsonburg’s economic base has remained relatively stable, focussed on manufacturing, transportation and warehousing, retail trade and administrative sectors. These sectors are projected to continue to grow from 2016 to 2046 with a net increase of 20% or 1,010 jobs. The remaining 40% of employment is population related employment with 3,410 jobs in 2016. Population-related employment primarily serves a resident population and includes retail, food services, education, healthcare, and local government. Population-related employment is projected to grow to 4,630 jobs by 2046; a net increase of 36% or 1,220 jobs. As per the data, there are no rural-based employment (including agriculture and resource based) in Tillsonburg. As per the 2016 commuting patterns, although Tillsonburg has an agricultural labour force, the majority of its resident’s work outside Tillsonburg, indicating there maybe limited jobs in this sector. Oxford County is projected to see a modest increase in rural-based employment; a net increase of 460 jobs from 2016 to 2046. Figure 15: Employment by Land-use Categories, Tillsonburg, 2016 to 2046 Year Employment Total Population-related Employment-land Rural-based 2016 8,580 3,410 5,170 0 2021 9,060 3,670 5,390 0 2026 9,320 3,800 5,520 0 2031 9,600 3,950 5,650 0 2036 9,950 4,150 5,800 0 48,090 78,390 - 20,000 40,000 60,000 80,000 100,000 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046Employment (number)Oxford County Page 184 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 19 Year Employment Total Population-related Employment-land Rural-based 2041 10,350 4,370 5,980 0 2046 10,800 4,620 6,180 0 % of Employment Change (2016-2046) 26% 35% 20% - Source: Oxford County Phase One Comprehensive Review, 2020. 1.5 Business Environment and Structure A business characteristics assessment was completed to understand the number and type of businesses in Tillsonburg using the Canadian Business Counts. Specifically, businesses in Tillsonburg were profiled by total employee number, size of business establishments by employees and businesses by industry. 1.5.1 Key Business Characteristics As of December 2019, approximately 1,474 businesses by industry were registered in Tillsonburg. Table 10 shows the total businesses in Tillsonburg, the majority of which were businesses without employees (i.e.) sole-proprietorships; approximately 943 businesses fall under this category. 243 businesses employ between 1 to 4 employees, while 195 businesses employed between 5 to 19 employees. Tillsonburg is also home to large business establishments, with approximately 17 businesses employing at least 100 employees. Table 10: Total Businesses, Tillsonburg, 2019 Total Businesses Without employees With employees Businesses with Employees (Range) 1-4 5-9 10-19 20-49 50-99 100-199 200-499 500 + 1,474 943 531 243 114 81 59 17 12 5 - 100% 64.0% 36.0% 16.5% 7.7% 5.5% 4.0% 1.2% 0.8% 0.3% 0% Source: Canadian Business Counts, December 2019 The following sectors (Table 11) show the highest proportion of business establishments by industry in 2019. These include business without employees and businesses with employees.  Real estate and rental and leasing – 292 businesses (20% of total businesses)  Construction – 152 businesses (10% of total businesses)  Retail trade – 147 businesses (10% of total businesses)  Other services (except public administration) – 132 businesses (9% of total businesses) Industry sectors with the highest number of businesses without employees in 2019 (Table 11) slightly differ from the highest total business establishment proportions. The highest sole proprietorships in 2019 were in:  Real estate and rental and leasing – 263 businesses (28% of total businesses)  Agriculture, forestry, fishing and hunting – 106 businesses (11% of total businesses)  Construction – 84 businesses (9% of total businesses)  Other services (except public administration) – 80 businesses (8% of total businesses) Page 185 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 20 The top industry sectors with employees (Table 11) in 2019 were:  Retail trade – 91 businesses (17% of total businesses)  Construction – 68 businesses (13% of total businesses)  Health care and social assistance – 53 businesses (10% of total businesses)  Other services (except public administration) – 52 businesses (10% of total businesses)  Manufacturing – 38 businesses (7% of total) Table 11: Businesses with and without Employees by Industry, Tillsonburg, 2019 Business by Industry (NAICS) Total Businesses Without employees With employees Counts % Counts % Counts % Total 1,474 100% 943 100% 531 100% Agriculture, forestry, fishing and hunting 133 9% 106 11% 27 5% Mining and oil and gas extraction 1 0% 1 0% 0 0% Utilities 5 0% 5 1% 0 0% Construction 152 10% 84 9% 68 13% Manufacturing 52 4% 14 1% 38 7% Wholesale trade 30 2% 17 2% 13 2% Retail trade 147 10% 56 6% 91 17% Transportation and warehousing 66 4% 43 5% 23 4% Information and cultural industries 16 1% 7 1% 9 2% Finance and insurance 104 7% 79 8% 25 5% Real estate and rental and leasing 292 20% 263 28% 29 5% Professional, scientific and technical services 99 7% 64 7% 35 7% Management of companies and enterprises 14 1% 13 1% 1 0% Admin & support, waste mgmt. & remediation services 52 4% 31 3% 21 4% Educational services 9 1% 5 1% 4 1% Health care and social assistance 101 7% 48 5% 53 10% Arts, entertainment and recreation 17 1% 12 1% 5 1% Accommodation and food services 51 3% 15 2% 36 7% Other services (except public administration) 132 9% 80 8% 52 10% Public administration 1 0% 0 0% 1 0% Source: Canadian Business Counts, December 2019 1.5.2 As shown in Table 12 , business establishments in Tillsonburg are characterized by micro-businesses, with 46% of businesses employing between 1-4 employees. 37% of businesses are small businesses with between 5-19 employees, and 14% of businesses are medium with between 20-99 employees. The industries with the highest number of establishments employing fewer than ten people were:  Retail trade – 53 businesses  Construction – 53 businesses Page 186 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 21  Other services (except public administration) – 46 businesses  Health care and social assistance – 30 businesses It is important to note the small number of medium and larger sized firms in the municipality’s economy. Small firms are generally the major source of new products and ideas, while mid-size and large business are typically more export-oriented and generate higher operating surpluses. A healthy mix of small, medium and large firms ensures that a community can capitalize on innovation and entrepreneurship opportunities and at the same time attract and grow investment. Table 12: Total Businesses with Employees by Employee Range, Tillsonburg, 2019 Business by Industry (NAICS) Total, with employees 1-4 5-9 10- 19 20- 49 50- 99 100- 199 200- 499 500 + Sub-total, classified 531 243 114 81 59 17 12 5 0 % of total 100% 46% 21% 15% 11% 3% 2% 1% 0% Agriculture, forestry, fishing and hunting 27 8 7 7 4 1 0 0 0 Mining and oil and gas extraction 0 0 0 0 0 0 0 0 0 Utilities 0 0 0 0 0 0 0 0 0 Construction 68 38 15 7 6 1 1 0 0 Manufacturing 38 9 3 4 7 6 6 3 0 Wholesale trade 13 6 3 3 1 0 0 0 0 Retail trade 91 31 22 19 12 5 2 0 0 Transportation and warehousing 23 13 6 2 1 0 1 0 0 Information and cultural industries 9 3 2 2 2 0 0 0 0 Finance and insurance 25 13 3 6 3 0 0 0 0 Real estate and rental and leasing 29 24 3 2 0 0 0 0 0 Professional, scientific and technical services 35 21 6 4 3 1 0 0 0 Management of companies and enterprises 1 1 0 0 0 0 0 0 0 Administrative and support, waste management and remediation services 21 11 4 1 4 0 1 0 0 Educational services 4 1 3 0 0 0 0 0 0 Health care and social assistance 53 23 7 13 7 1 1 1 0 Arts, entertainment and recreation 5 3 0 2 0 0 0 0 0 Accommodation and food services 36 8 14 4 8 2 0 0 0 Other services (except public administration) 52 30 16 5 1 0 0 0 0 Public administration 1 0 0 0 0 0 0 1 0 Source: Canadian Business Counts, December 2019 1.5.3 Business Concentration Tillsonburg’s industries were benchmarked against the Province at the 3-digit industry sub-sectors to determine the business concentration. The top-20 businesses in Tillsonburg’s were benchmarked against the Province at the 3-digit level to determine the unique sectors for Tillsonburg and the sectors that lag behind with respect to the Province. Key insights are described below: Page 187 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 22  Real estate services is the largest industry subsector with 280 businesses representing 19% of total businesses for Tillsonburg. The majority of these businesses are individual agents; 255 businesses are sole-proprietorships. This subsector is also on par with the Province in terms of its concentration of businesses with an LQ of 0.94.  Speciality trade contractors, crop production and professional, scientific and technical services are also important subsectors, each accounting for 7% of Tillsonburg’s total businesses.  Crop production with 102 businesses can be seen as a competitive industry as it has a high LQ of 4.12, meaning it has a comparatively higher concentration of businesses when compared to the Province. The high number and concentration of businesses in this sector maybe attributed to the crop production head offices located here and not necessarily businesses that are engaged in growing or farming crops, including arms, orchards, groves, greenhouses, and nurseries.  Despite accounting for 7% of total business, the professional, scientific and technical services subsector has a low LQ of 0.48, indicating a comparatively low concentration of businesses to the Province. Of the 99 businesses in this sector, 64 businesses are sole proprietorships. The main components of this subsector are legal services; architectural, engineering and related services; specialized design and computer services; management, scientific and technical consulting, research and related services. This subsector is also the only subsector within the top 20 subsectors that received a low LQ rating and could represent an opportunity for expansion. Table 13: Tillsonburg’s Business Counts based on top 20 subsectors and Corresponding LQ’s (3 -digit NAICS), 2019 Businesses by Industry Subsectors - (NAICS) Tillsonburg % of total 2019 Location Quotient (LQ) Sub-total, classified 1,474 100% - 531 Real estate 280 19% 0.94 238 Specialty trade contractors 107 7% 1.24 111 Crop production 102 7% 4.12 541 Professional, scientific and technical services 99 7% 0.48 523 Securities, commodity contracts, and other financial investment and related activities 74 5% 1.09 621 Ambulatory health care services 71 5% 0.85 561 Administrative and support services 51 3% 0.88 813 Religious, grant-making, civic, and professional and similar organizations 47 3% 1.34 484 Truck transportation 46 3% 0.81 812 Personal and laundry services 46 3% 1.47 722 Food services and drinking places 44 3% 1.13 236 Construction of buildings 39 3% 0.83 811 Repair and maintenance 34 2% 1.22 445 Food and beverage stores 26 2% 1.76 453 Miscellaneous store retailers 22 1% 1.90 624 Social assistance 19 1% 1.18 112 Animal production and aquaculture 17 1% 0.88 524 Insurance carriers and related activities 16 1% 1.09 448 Clothing and clothing accessories stores 14 1% 1.18 551 Management of companies and enterprises 14 1% 0.88 Source: Canadian Business Counts, December 2019 Page 188 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 23 1.6 Benchmarking Industry Concentrations This section of the report reviews the industry concentrations in other comparable communities. The industries chosen for comparison include manufacturing; finance & insurance; professional, scientific and technical services; and transportation and warehousing. As identified in the above sections, these sectors have a good proportion of businesses, business concentration and labour force capable of participating in these sector and provide opportunities for continued growth and investment. Although agriculture, forestry, fishing and hunting has a high number of businesses, the majority of businesses are head offices of crop production. Similarly, the labour force in the sector, although high, travel outside the community to work. Thus, Tillsonburg serve as a regional center for the sector and plays an important role in supporting the sector regionally. Retail trade, construction and the health care and social assistance are also important sectors for the town, however, growth in these sectors are tied to population growth and demand and given their nature, they should be effectively managed rather than actively targeted. The target sector for Tillsonburg are compared to regional comparators include Ingersoll, Woodstock, St Thomas and Stratford. For each sector, Tillsonburg’s proportion of businesses and their corresponding Location Quotients (LQ’s) are compared to the other comparable communities. This is followed by a detailed examination of the top five sub-sectors within each of the sector contrasted against the key comparators communities. The results of this analysis for each sector are below. 1.6.1 Manufacturing Figure 16 shows the concentration and percentage for the manufacturing sector. The bubble size is a pictorial representation of the number of manufacturing industries in 2019 (size equals the number of businesses). Key insights of this analysis include:  All comparator communities have a higher concentration of businesses compared to the Province, indicating that businesses in the manufacturing sector across the board are of competitive strength.  Tillsonburg’s manufacturing sector includes 52 businesses, the majority of which are businesses with employees (38 businesses).  When compared to the key comparators, Tillsonburg’s manufacturing sector is the second smallest (52 businesses), however, has the third-highest concentration of businesses (LQ of 1.38).  Besides Stratford, all other comparators have a similar LQ rating of between 1.20 and 1.80 , indicating they have roughly similar proportions of businesses within their community when compared to the Province. Figure 16: Concentration and Percentage of Manufacturing Sector, Tillsonburg and Key Comparators (2019) Page 189 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 24 Source: Canadian Business Counts, December 2019 Figure 17 shows a breakdown of Tillsonburg’s manufacturing sector contrasted against the key comparators communities. Key insights of this analysis include:  The top manufacturing sub-sector for Tillsonburg is ‘Fabricated metal product manufacturing’ with a total of 10 businesses or 19% of the sector. Majority of businesses in this sector are small firms employing between 1-19 employees.  Fabricated metal product manufacturing shows an LQ of 1.33; indicating a high concentration of businesses. As identified in the 2019 framework for a High-Tech Manufacturing Cluster Model in Tillsonburg, the sector presents a cluster development opportunity for the town.  Fabricated metal product manufacturing is also a specialized sub-sector in Ingersoll, Woodstock and Strafford.  Machinery manufacturing is the second largest sub-sector for Tillsonburg recording 7 businesses or 13% of the sector. The majority of businesses are small businesses or sole operators.  Tillsonburg is home to several major automotive companies include Adient Seating Canada Ltd (foam seating), Autoneum Canada Limited (noise insulation products), Fleetwood Metal Industries Inc (stamped metal components), Martinrea International Inc, Marwood International (stamped metal components), THK Rhythm Automotive Canada Ltd (linkages/steering components), etc. Figure 17: Concentration and Percentage of the Top 5 Sub-Sectors (3-Digit NAICS) of Manufacturing, Tillsonburg and Key Comparators (2019) Sector Breakdown Tillsonburg Ingersoll Woodstock St. Thomas Stratford No. % LQ No. % LQ No. % LQ No. % LQ No. % LQ NAI CS All industry total, classified 1474 100% n/a 788 100% n/a 3003 100% n/a 2301 100% n/a 3291 100% n/a n/a Sector Total 52 4% 1.38 27 3% 1.34 114 4% 1.49 95 4% 1.62 86 3% 1.02 332 Fabricated metal product manufacturing 10 19% 1.33 7 26% 1.80 20 18% 1.22 11 12% 0.80 20 23% 1.61 333 Machinery manufacturing 7 13% 1.37 0 0% - 14 12% 1.25 11 12% 1.18 6 7% 0.71 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00Manufacturing Businesses (%)LQ (2019) Tillsonburg Ingersoll Woodstock St Thomas Stratford Page 190 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 25 Sector Breakdown Tillsonburg Ingersoll Woodstock St. Thomas Stratford 321 Wood product manufacturing 6 12% 2.20 0 0% - 4 4% 0.67 4 4% 0.80 2 2% 0.44 336 Transportation equipment manufacturing 6 12% 2.77 5 19% 4.45 11 10% 2.32 13 14% 3.29 8 9% 2.24 327 Non-metallic mineral product manufacturing 5 10% 2.93 1 4% 1.13 3 3% 0.80 4 4% 1.28 4 5% 1.42 Source: Canadian Business Counts, December 2019 1.6.2 Finance and Insurance Figure 18 shows the concentration and percentage for the finance and insurance sector. The bubble size is a pictorial representation of the number of agriculture industries in 2019 (size equals the number of businesses). Key insights include:  Tillsonburg has the highest LQ score of 1.08, indicating that the sector is comparatively on par with the province yet leading the comparable communities.  Tillsonburg has the second smallest finance and insurance sector out of the comparable communities with 104 businesses, ahead of Ingersoll which recorded only 40 businesses while Stratford had the most businesses at 208.  The Finance and Insurance sector accounts for 7% of all businesses in Tillsonburg, which is a slightly larger percentage than the comparator communities. Figure 18: Concentration and Percentage of Finance and Insurance Businesses, Tillsonburg and Key Comparators (2019) Source: Canadian Business Counts, December 2019 Figure 19 shows a more detailed breakdown of Tillsonburg’s finance and insurance sector at the 3-digit NAICS level, contrasted against the key comparators communities. Key insights include: 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40Businesses Counts (%)LQ (2019) Tillsonburg Ingersoll Woodstock St Thomas Stratford Page 191 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 26  Securities, commodity contracts, and other financial investment and related activities is the largest sub-sector for Tillsonburg accounting for 74 businesses or 71% of the total sector. However, 86% (64 businesses) within this sub-sector are sole proprietorships meaning they do not have employees. The sector shows an LQ of 1.01, indicating it is on par in terms of concentration of businesses to the province. Woodstock and Stratford also have similar sized sub-sectors which are on par with the province in terms of LQ rankings.  Insurance carriers and related activities is the second largest sub-sector within the industry, recording 16 businesses or 15% of the sector total. The sub-sector has an LQ of 1.02 which again shows it is on par with the province. Slightly under half, 46% (7 businesses) within this sub-sector possess employees. Ingersoll recorded the highest LQ for the sector (1.49) yet only has 9 businesses, whereas St. Thomas totaled 25 businesses and an LQ of 1.20.  Credit intermediation and related activities is the final significant sub-sector within this category, accounting for 12 businesses or 12% of the sector total. The LQ is 0.97 meaning it is slightly below par compared to the province. 67% (8 businesses) have employees for this sector.  Overall, the sector is important for Tillsonburg but does not represent a competitive strength. Given the strong growth of this sector within Toronto and the GTA there may exist opportunities to grow the sector in the long term, perhaps by attracting firms to the Town through lower rental property rates or remote workers as the COVID-19 pandemic highlights the benefits of working from home. Figure 19: Concentration and Percentage of the Top 5 Sub-Sectors (3-Digit NAICS) of Finance and Insurance, Tillsonburg and Key Comparators (2019) Sector Breakdown Tillsonburg Ingersoll Woodstock St. Thomas Stratford No % LQ No. % LQ No. % LQ No % LQ No % LQ n/a All industry total, classified 1474 100% n/a 788 100% n/a 3003 100% n/a 2301 100% n/a 3291 100% n/a N/ A Sector Total (classified) 104 7% 1.08 40 5% 0.77 176 6% 0.89 138 6% 0.91 208 6% 0.96 523 Securities, commodity contracts, and other financial investment and related activities 74 71% 1.01 24 60% 0.86 124 70% 1.00 86 62% 0.89 143 69% 0.98 524 Insurance carriers and related activities 16 15% 1.02 9 23% 1.49 24 14% 0.90 25 18% 1.20 35 17% 1.11 522 Credit intermediation and related activities 12 12% 0.97 7 18% 1.47 23 13% 1.09 20 14% 1.21 21 10% 0.85 526 Funds and other financial vehicles 2 2% 0.70 0 0% 0.00 5 3% 1.04 7 5% 1.85 9 4% 1.58 521 Monetary authorities - central bank 0 0% 0.00 0 0% 0.00 0 0% 0.00 0 0% 0.00 0 0% 0.00 Source: Canadian Business Counts, December 2019 Page 192 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 27 1.6.3 Professional, Scientific and Technical Services Figure 20 shows the concentration and percentage for the professional, scientific, and technical services industry. The bubble size is a pictorial representation of the number of professional, scientific and technical services in 2019 (size equals the number of businesses). Key insights include:  All comparator regions recorded an LQ of less than 0.68, indicating low concentration compared to the Province.  Tillsonburg trails the key comparators with an LQ of 0.48 and has the second smallest sector with 99 recorded businesses. Overall, this could indicate the potential for Tillsonburg to improve within this sector.  Stratford and St Thomas have the greatest concentration of businesses in this sector as a factor of the Province with an LQ of 0.68 (309 businesses) and 0.67 (212 businesses) respectively.  While Tillsonburg has a strong manufacturing sector, it should be noted that the town lags behind in other sectors, specifically the technology-based sectors. The town should capitalize on strengths in manufacturing and draw synergies in other sectors to ensure a diverse economy and continued viability into the future. Figure 20: Concentration and Percentage of Professional, Scientific and Technical Services Businesses, Tillsonburg and Key Comparators (2019) Source: Canadian Business Counts, December 2019 Figure 17Figure 21 shows a detailed breakdown of the Tillsonburg’s top five sub-sectors within the professional, scientific and technical services industry as compared against the key comparators. Key insights include:  Accounting, tax preparation, bookkeeping and payroll services is the largest sub-sector within Tillsonburg, recording 20 businesses or 20% of the total sector and is at a comparative strength recording a LQ of 1.98. Majority of businesses are companies without employees (12 businesses or 60%). Of those businesses with employees, there was only one medium to large employer of between 50-99 employees with the remaining 7 businesses having between 1-19 staff members. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80PSTS Business Counts (%)LQ (2019) Tillsonburg Ingersoll Woodstock St Thomas Stratford Page 193 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 28  Management, scientific and technical consulting services account for 19 businesses and an LQ of 0.76. Businesses in this sector provide expert advice and assistance on management, environmental, scientific and technical issues and form an important subset of the knowledge economy.  Tillsonburg also has a high proportion of legal service firms when compared against the Province, recording an LQ of 1.70 with 16 businesses in the sub-sector.  Architectural, engineering and related services is another small but important sub-sector for Tillsonburg, accounting for 10 businesses or 10% of the sector total. This sector is competitive for Tillsonburg scoring an LQ of 1.19 which again was the second highest LQ when contrasted with the comparator communities. Figure 21: Concentration and Percentage of the Top 5 Sub-Sectors (4-Digit NAICS) of Professional, Scientific and Technical Services, Tillsonburg and Key Comparators (2019) Sector Breakdown Tillsonburg Ingersoll Woodstock St. Thomas Stratford No % LQ No. % LQ No. % LQ No % LQ No % LQ n/a All industry total, classified 14 74 100 % n/a 788 100% n/a 3003 100 % n/a 2301 100 % n/a 3291 100% n/a n/a Sector Total 99 7% 0.48 63 8% 0.58 241 8% 0.58 212 9% 0.67 309 9% 0.68 5412 Accounting, tax preparation, bookkeeping and payroll services 20 20% 1.98 22 35% 3.43 43 18% 1.75 42 20% 1.95 35 11% 1.11 5416 Management, scientific and technical consulting services 19 19% 0.76 11 17% 0.70 55 23% 0.91 42 20% 0.79 71 23% 0.92 5411 Legal services 16 16% 1.70 5 8% 0.83 29 12% 1.26 45 21% 2.23 41 13% 1.39 5419 Other professional, scientific and technical services 15 15% 1.36 10 16% 1.43 30 12% 1.12 25 12% 1.06 57 18% 1.66 5413 Architectural, engineering and related services 10 10% 1.19 5 8% 0.93 29 12% 1.41 13 6% 0.72 31 10% 1.18 Source: Canadian Business Counts, December 2019 1.6.4 Transportation and Warehousing Figure 22 shows the concentration and percentage for the Transportation and Warehousing industry. The bubble size is a pictorial representation of the number of transportation and warehousing businesses in 2019 (size equals the number of businesses). Key insights include:  Woodstock and Ingersoll have the largest concentration of businesses within this sector as a factor of the Province with an LQ of 2.07 and 1.30, respectively, indicating the sector is a competitive strength for both communities. The large difference in LQ’s is because Woodstock has a significantly larger proportion of businesses as a factor of its population at 14% compared to Ingersoll at 9%.  Tillsonburg recorded the second-lowest LQ of 0.66, ahead of Stratford at 0.34, yet behind St Thomas at 0.79. Tillsonburg has 4.5% (66 businesses) within the transportation and warehousing industry, indicating the potential for expansion. Page 194 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 29 Figure 22: Concentration and Percentage of Transportation and Warehousing Businesses, Tillsonburg and Key Comparators (2019) Source: Canadian Business Counts, December 2019 Figure 23Figure 17 shows a detailed breakdown of the Tillsonburg’s top five sub-sectors within the Transportation and Warehousing industry as compared against comparator communities. Key insights include:  Majority of businesses in this sector are engaged in the truck transportation of goods with 46 businesses or 70% of the sector total. The majority of companies (74% or 34 businesses) do not have employees while the remaining are small businesses employing between 1-9 people.  Tillsonburg accounts for 8 warehousing and storage facilities. While this sector in itself is not a significant job creator, the sector forms an important part of the logistics supply chain. The sector recorded an LQ of 6.28 showcasing a large competitive strength. Figure 23: Concentration and Percentage of the Top 5 Sub-Sectors (3-Digit NAICS) of Transportation and Warehousing, Tillsonburg and Key Comparators (2019) Sector Breakdown Tillsonburg Ingersoll Woodstock St. Thomas Stratford No % LQ No. % LQ No. % LQ No % LQ No % LQ n/a All industry total, classified 1474 100% n/a 788 100% n/a 3003 100% n/a 2301 100 % n/a 3291 100% n/a 0.0% 5.0% 10.0% 15.0% 20.0% 0.00 0.50 1.00 1.50 2.00 2.50Business Counts (%)LQ (2019) Tillsonburg Ingersoll Woodstock St Thomas Stratford Page 195 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 30 Sector Breakdown Tillsonburg Ingersoll Woodstock St. Thomas Stratford n/a Sector Total (classified) 66 4% 0.66 70 9% 1.30 424 14% 2.07 124 5% 0.79 77 2% 0.34 484 Truck transportation 46 70% 1.24 59 84% 1.49 332 78% 1.39 68 55% 0.97 38 49% 0.87 488 Support activities for transportation 9 14% 1.50 6 9% 0.94 22 5% 0.57 13 10% 1.15 5 6% 0.71 493 Warehousing and storage 8 12% 6.28 2 3% 1.48 6 1% 0.73 8 6% 3.34 2 3% 1.35 485 Transit and ground passenger transportation 2 3% 0.13 3 4% 0.18 17 4% 0.17 14 11% 0.47 20 26% 1.08 492 Couriers and messengers 1 2% 0.22 0 0% 0.00 15 4% 0.51 21 17% 2.45 10 13% 1.88 Source: Canadian Business Counts, December 201 Appendix Commuting Patterns By Industry, 2-digit NAICS, Tillsonburg, 2016 Industry Resident working IN Tillsonburg Tillsonburg resident ‘working outside’ Tillsonburg (A) Non-residents ‘working in’ Tillsonburg (B) B-A = Net Import (+)/Net Export (-) Total - Industry - North American Industry Classification System (NAICS) 2012 3,265 2,685 4,180 1,495 11 Agriculture, forestry, fishing and hunting 15 95 20 -75 21 Mining, quarrying, and oil and gas extraction 0 20 0 -20 22 Utilities 10 20 40 20 23 Construction 100 90 150 60 31-33 Manufacturing 850 875 1,815 940 41 Wholesale trade 50 125 130 5 44-45 Retail trade 660 285 465 180 48-49 Transportation and warehousing 30 170 65 -105 51 Information and cultural industries 30 20 30 10 52 Finance and insurance 100 65 95 30 53 Real estate and rental and leasing 55 30 50 20 54 Professional, scientific and technical services 95 100 115 15 55 Management of companies and enterprises 0 0 0 0 56 Administrative and support, waste management and remediation services 145 35 105 70 61 Educational services 125 135 140 5 62 Health care and social assistance 355 280 505 225 71 Arts, entertainment and recreation 50 25 35 10 72 Accommodation and food services 315 150 190 40 81 Other services (except public administration) 170 130 135 5 91 Public administration 130 115 125 10 Page 196 of 300 MDB Insight – Town of Tillsonburg – Economic Baseline Analysis Page 31 Source: Statistics Canada, 2016 Census of Population. Page 197 of 300 Page 1 of 6 Subject: Oxford County Housing Master Plan – Potential Tillsonburg Sites Report Number: EDM 22-08 Department: Economic Development Department Submitted by: Cephas Panschow Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION THAT excess lands at the 31 Earle Street and 45 Hardy Avenue properties and a portion of the Gylveszy Park be included in the Oxford County Housing Master Plan feasibility analysis in support the Town and County’s Affordable and Attainable Housing initiatives. BACKGROUND The County of Oxford has retained a consultant to prepare a Housing Master Plan that will identify gaps along the housing continuum, housing needs and provide a list of priority sites that could be developed to support increased supply of affordable housing in the County. County staff have indicated that they would like to consider sites from around the County, including the Town of Tillsonburg, so this request was reviewed with the Town’s Affordable and Attainable Housing Committee who have recommended these three sites be included for consideration. DISCUSSION The lack of housing supply, both rental and owned, across Canada has been well documented. The Town of Tillsonburg is experiencing an unprecedented supply of new housing and also unprecedented demand for that housing. These record levels of demand are resulting in housing price increases that are well beyond the reach of many Page 198 of 300 EDM 22-08 Page 2 of 6 people, especially considering the lower average income levels in Tillsonburg and the competing demand from outside the community. Unfortunately, there are no perfect solutions to the current housing problems and solving them will require a combination of strategic planning, partnerships and “out-of- the-box” thinking. In this regard, there are no ideal sites either and the Town of Tillsonburg, like most other communities, does not have enough development sites readily available to fully address this problem. That means that the Town will have to work with what is available to be able to contribute to a solution in a meaningful manner. The three properties proposed by the Town’s Affordable/Attainable Housing Committee have been identified as potential sites that could support social housing projects in the Town of Tillsonburg. These sites are: 31 Earle Street Page 199 of 300 EDM 22-08 Page 3 of 6 The excess lands part of the 31 Earle Street property are probably the best available option for social housing notwithstanding the fact that, as Council is fully aware, there is currently a conditional offer to purchase in place with a private sector developer. Should this transaction not proceed or be transferred to another property, these lands would become available for potential redevelopment. 45 Hardy Avenue (Community Centre property) Despite the significant acreage at the Community Centre/Memorial Park, most of the land has already been developed for various recreational uses. Hence, it is a challenge to find any that could potentially be used for social housing. A small, 0.58 Acre site has been identified between the John Street and Sanders Street access points. There are other possible sites that could potentially work for a small social housing project (to the Northeast of Sanders Street east of the parking lot), but these other s ites could be more problematic as they encroach further into parklands and recreational use areas. The proposed 0.58 Acre site is not ideal, but is a possibility. Certainly, the Tri-County Page 200 of 300 EDM 22-08 Page 4 of 6 Agricultural Society would have to be consulted as this potential site is immediately adjacent to one of their buildings. The Gylveszy Park (Potential Development Site) Despite the “worthy” cause, the Gylveszy Park site would pose a number of challenges as it is currently designated as parkland in the Town of Tillsonburg. Further, the park was developed with support from the Gilvesy family and there may be restrictive covenants prohibiting re-use registered on title to the property. This would have to be investigated further prior to proceeding. It is clear that there are no ideal sites within the Town of Tillsonburg, especially none that are municipally owned. However, these three sites are being recommended in order to initiate discussions about potential solutions. Including these sites in the County’s Housing Master Plan analysis does not mean that they will be brought forward for development although that is certainly a possibility. The Development Commissioner supports the Committee’s recommendation for discussion purposes only at this time. Page 201 of 300 EDM 22-08 Page 5 of 6 CONSULTATION Town Council recognized the need for more housing options in Tillsonburg and established the Affordable/Attainable Housing Committee in 2021 (first meeting June 2021). Since then the Committee has been meeting on a monthly basis reviewing available information, potential development opportunities, and meeting with various community stakeholder groups with the goal of helping to develop a “Made -in- Tillsonburg” solution to the housing challenges that the community is facing. In response to the request from County staff, the Committee reviewed a number of properties that could be considered for potential social housing in the Town and they passed the following resolution at their February 23, 2020 meeting: THAT the Affordable/Attainable Housing Committee recommends to Council that the excess lands at 31 Earle St and a portion of the 45 Hardy Ave and a portion Gilvesy Park property be supported for inclusion in the Oxford County Housing Master Plan analysis for potential future development Depending on the outcome of the County’s Housing Master Plan, the stakeholders and property owners adjacent to the various sites would have to be consulted along with further input from various Town and County Departments with respect to servicing, zoning, etc. FINANCIAL IMPACT/FUNDING SOURCE There is no financial impact related to the recommendation contained in this report. CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☒ Lifestyle and amenities ☐ Customer service, communication and engagement ☐ Business attraction, retention and expansion ☒ Community growth ☐ Connectivity and transportation ☐ Not Applicable Page 202 of 300 EDM 22-08 Page 6 of 6 Does this report relate to a specific strategic direction or project identified in the Community Strategic Plan? Please indicate section number and/or any priority projects identified in the plan. Goal – Within the community, Tillsonburg will strive to offer residents the amenities, services and attractions they require to enjoy balanced lifestyles; The Town of Tillsonburg will accommodate and support growth. Strategic Direction – Work with Oxford County and community partners to ensure an adequate supply of affordable, attainable housing options; Work with Oxford County and the development community to proactively plan for a variety of housing options that are affordable and attainable for current and prospective residents. Priority Project – Immediate Term - Affordable housing collaboration with Oxford County; Immediate Term – Attainable housing plan. ATTACHMENTS None Page 203 of 300 Page 1 of 3 Subject: Sign Variance – 565 Broadway Report Number: OPD 22-04 Department: Operations and Development Department Submitted by: Geno Vanhaelewyn, Chief Building Official Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION THAT Council approves the variance to Sign By-Law 3798 to allow for the construction of a two sided 12.54 square metres (135 sq. ft.) x 4.57 metres (15 ft) high monolith sign with an incorporated 2.4 square meter (25.8 sq.ft.) animated LED display located within the Town road allowance, within 72 metres of another animated LED display sign and within 90 metres of a signalized pedestrian crosswalk located at 565 Broadway (PT 10, 41R517) subject to Re/Max Tri-County Realty Inc. entering into an encroachment agreement with the Town. BACKGROUND Building Services received a request from Re/Max Tri-County Realty Inc. for the construction of a monolith sign to be located within the Town’s road allowance in front of Re/Max at 565 Broadway to replace the existing pylon sign. A review of the request revealed that the proposed sign and location would not comply with Sign By-Law 3798 and therefore could not be processed/issued. This information was provided to the applicant and subsequently the applicant requested that the sign and the proposed location be considered for a variance to the Sign By-Law. DISCUSSION The applicant proposes to construct a 4.57 metre (15 ft) high two-sided monolith sign with a sign dimension of nine feet wide by fifteen feet high incorporating an LED animated display to be located within the road allowance on the West side of Broadway in front of the business as indicated on the attached drawings. The purpose of the Page 204 of 300 OPD 22-04 – Sign Variance – 565 Broadway Page 2 of 3 signage is to replace the existing pylon sign and the request for the encroachment is to have the sign located for improved visibility. Sign By-Law 3798 notes the following related to this request and the application requires relief from: 5.2 Prohibited Locations f) No person shall erect a sign with a footing/foundation less than 1.0 metre (3.28 ft) from a street line; g) No person shall erect a sign higher than 0.75 metres (2.46 ft) within 3.0 metres (9.84 ft) of any road allowance where the sign may impede vision of an access from any improved public street to any lot; 8.0 Animated Signs f) Animated signs shall have a 150 meter (492 ft) setback from other animated signs. j) No animated sign shall be placed closer than 100 meters (328 ft) to any signalized or controlled intersection and pedestrian cross walks. In this case:  The proposed monolith sign will be located entirely within the Town road allowance.  The proposed sign will be 4.57 metres (15 ft) in height.  The incorporated animated sign is located within approximately 72 metres of another animated sign located on a pylon sign at 540 Broadway – Burger King.  The proposed animated LED sign will be located within 90 meters of a signalized pedestrian cross walk. CONSULTATION A public notice was circulated to adjacent properties and no comments or concerns were received in favour or against the application. Internal departments were also consulted and the following comments were received: Town of Tillsonburg – Public Works 1. Public Works reviewed the proposed 10m reduction to the signalized pedestrian crosswalk and do not have a concern based on a site specific review. Town of Tillsonburg – Engineering Department 1. Engineering noted the proposed location is located close to an abandoned storm pipe and will require a minimum 1.5m setback. The Owner will need to have locates completed (to ensure minimum distances are maintained) prior to construction. Page 205 of 300 OPD 22-04 – Sign Variance – 565 Broadway Page 3 of 3 2. Should the variance be granted, Re/Max Tri-County Realty Inc. will be required to enter into an encroachment agreement with the Town for use and insurance purposes. Based on the information provided, staff makes note that this variance is major in nature and affects the intent of Sign By-Law 3798. Based on a site specific evaluation completed by staff and the nature and intent of the signage, staff recommends that the sign variance request be granted subject to Re/Max Tri-County Realty Inc. entering into an encroachment agreement with the Town. FINANCIAL IMPACT/FUNDING SOURCE None CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☐ Lifestyle and amenities ☒ Customer service, communication and engagement ☐ Business attraction, retention and expansion ☐ Community growth ☐ Connectivity and transportation ☐ Not Applicable Does this report relate to a specific strategic direction or project identified in the Community Strategic Plan? Please indicate section number and/or any priority projects identified in the plan. Goal – The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and opportunities to shape municipal initiatives. Strategic Direction – N/A Priority Project – N/A ATTACHMENTS 565 Broadway Sign Variance - Site Plan & Elevation Page 206 of 300 OPD 22-04 SIGN VARIANCE – 565 BROADWAY SITE PLAN SITE PLAN Page 207 of 300 OPD 22-## SIGN VARIANCE – 565 BROADWAY ELEVATION Page 208 of 300 Page 1 of 3 Subject: Hangar Land Lease Agreement Taxiway G2-9 Report Number: OPD 22-10 Department: Operations and Development Department Submitted by: Richard Sparham, Manager of Public Works Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION THAT Council authorizes the Mayor and the Clerk to sign the attached agreement to terminate the existing lease agreement for Taxiway G1 Lot 6; AND THAT By-law 2021-065 Hangar land lease agreement with Nathan Bain and Emily Crombez for Taxiway G1 Lot 6 be repealed; AND THAT a By-law to execute the Hangar Land Lease Agreement for Taxiway G2 Lot 9 with Civilogistics Incorporated (Nathan Bain and Emily Crombez) be brought forward for Council consideration. BACKGROUND Staff received a new application to construct a 46 ft. x 56 ft. hangar (2576 sq. ft.) from Nathan Bain and Emily Crombez (o/a Civilogistics Incorporated). The lot assigned to the applicant is Lot 9 on Taxiway G2 (Hangar G2-9). Staff are satisfied with the proposal and recommend that Council enter into the attached Airport Hangar Land Lease Agreement for Taxiway G2 Lot 9 with Nathan Bain and Emily Crombez to permit the construction of a 2,576 sq. ft. hangar for a twenty (20) year and six month term, expiring on January 1, 2043. The construction of new hangars increases airport revenue through both the land lease fee and the potential for additional fuel sales, supporting the Corporation ’s goal of decreasing the net levy requirement to support Airport operations. In addition to this request, Nathan Bain and Emily Crombez requested the termination of the existing hangar lease agreement with the Town for Hangar G1-6 (Bylaw 2021-065) approved on June 14, 2021. Page 209 of 300 OPD 22-10 Hangar Land Lease Agreement Taxiway G2-9 Page 2 of 3 DISCUSSION After reviewing the existing lease agreement for this hangar, Staff recommends that the lease agreement with Civilogistics Incorporated for Hangar G2-9 be executed and that the existing lease agreement with Nathan Bain and Emily Crombez for hangar G1-6 be terminated. Figure 1. Hangar G2-9 - Site Plan CONSULTATION The following staff and resources have been consulted in preparing this report:  Director of Operations and Development FINANCIAL IMPACT/FUNDING SOURCE The termination of the existing lease agreement for hangar G1-6 of 3,600 ft2 will represent a loss of revenue of approx. $1,116/year. The proposed hangar G2-9 of 2,576 ft2 will provide an additional revenue source for the Tillsonburg Regional Airport of approx. $798.56/year based on the Hangar Land Lease fee of $0.31 per ft2 included in the Tariffs and Fees for 2022. The net financial impact to the Tillsonburg regional airport is a loss of revenue of approx. $317.44/year. Page 210 of 300 OPD 22-10 Hangar Land Lease Agreement Taxiway G2-9 Page 3 of 3 CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☐ Lifestyle and amenities ☐ Customer service, communication and engagement ☐ Business attraction, retention and expansion ☐ Community growth ☒ Connectivity and transportation ☐ Not Applicable Does this report relate to a specific strategic direction or project identified in the Community Strategic Plan? Please indicate section number and/or any priority projects identified in the plan. Goal – Tillsonburg residents and businesses will be connected to each other, regional networks, and the world through effective traditional and digital infrastructure. Strategic Direction – Leverage the municipal airport more effectively to increase access, visibility and business activity in Tillsonburg. Priority Project – Immediate Term – Airport Master Plan and implementation ATTACHMENTS: Hangar G1-6 Termination of Existing Agreement Hangar G2-9 Tillsonburg Airport Hangar lease agreement with Civilogistics Incorporated Page 211 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ (WKH ³LaQGORUG´) TILLSONBURG AIRPORT HANGAR LEASE This Lease is made this 14 day of March, 2022 (WKH ³EIIHFWLYH DaWH´). B E T W E E N THE CORPORATION OF THE TOWN OF TILLSONBURG -and ± Civilogistics Incorporated 93 Windham Road #3 Norwich Ontario N0J 1P0 Attention: Emily Crombez and Nathan Bain (WKH ³Tenant´) WHEREAS the Landlord owns all and singular that certain parcel or tract of land and premises situated, lying and being in the Township of South West Oxford in the County of Oxford, being compromised of: PT LT 3-4 CON 7 DEREHAM; LT 5-6 CON 7 DEREHAM; PT LT 7 CON 7 DEREHAM PT 1, 2, 3, 4 & 5, 41R2877, PT 2 & 3, 41R2714, PT 1, 2 & 3, 41R4343, PT 1, 2, 3 & 4, 41R4545; S/T 406551; SOUTH-WEST OXFORD; PIN: 00016-0089 (LT); LRO #41; municipal address being 244411 Airport Road, Tillsonburg, ON N4G 4H1; referred to herein as WKH ³PURSHUW\´, WKH ³ALUSRUW´ RU WKH ³TLOOVRQbXUJ ALUSRUW´ upon which is located the Tillsonburg Airport which is owned and operated by the Landlord. In consideration of the covenants, agreements, warranties and payments herein set forth and provided for, the sum of two dollars ($2.00) paid by each party to the other and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto respectively covenant and agree as follows: 1.LEASED PREMISES (1)The Leased Premises shall consist of a portion of the Tillsonburg Airport identified as Taxiway G2-9 RQ WKH SOaQ aWWaFKHG aV SFKHGXOH ³A´, bHLQJ WKH aUHa XSRQ ZKLFK WKH THQaQW¶V aLUSOaQH KaQJaU VKaOO bH ORFaWHG SOXV RQH (1) PHWUH RI OaQG H[WHQGHG bH\RQG Whe H[WHULRU SHULPHWHU RI WKH THQaQW¶V aLUSOaQH KaQJaU bXLOGLQJ (WKH ³LHaVHG PUHPLVHV´). (2)Notwithstanding the above, the Landlord reserves the right to assign an alternate lot to the THQaQW RQ WKLUW\ (30) Ga\V¶ ZULWWHQ QRWLFH aW aQ\ WLPH SULRU WR WKH commencement of FRQVWUXFWLRQ RI WKH THQaQW¶V KaQJaU. (3)The Landlord covenants and agrees to the construction by the Tenant of an airplane hangar on the Leased Premises being a HaQJaU, (WKH ³HaQJaU´) subject to the provisions RI SFKHGXOH ³B´. TKH THQaQW shall complete the construction of the Hangar at its sole cost and expense. (4)The Landlord covenants and agrees that the Hangar on the Leased Premises is not owned by the Landlord but is owned by the Tenant. 2.GRANT OF LEASE (1)The Landlord leases the Leased Premises to the Tenant: (a)at the Rent set forth in Section 3; (b)for the Term set forth in Section 4; and (c)subject to the conditions and in accordance with the covenants, obligations and agreements herein including schedules. (2)The Landlord covenants that it has the right to grant the leasehold interest in the Leased Premises free from encumbrances except as disclosed on title. 3.RENT (1)Rent means the amounts payable by the Tenant to the Landlord pursuant to this Section and includes Additional Rent. (2)The Tenant covenants to pay to the Landlord, during the Term of this Lease rent as follows (WKH ³BaVH RHQW´): for every year of the Term, the total sum of $798.56 per annum (based Page 212 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 2 upon $0.31 per square foot of Hangar building area) plus H.S.T., and any other applicable services tax which may accrue on account of the Landlord collecting rent, payable yearly in advance. Base Rent shall commence on the first day of the Term. If the first day of the Term is not January 1st then Base Rent for the first year of the term shall be prorated until December 31 of the initial year. Base Rent shall then be due on 1st day of the year commencing on January 1st, 2023 and every 1st day of January thereafter. The Parties further agree that the Landlord may, in their sole and absolute discretion, increase the Base Rent annually in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. If the square footage of the Hangar on the Leased Premises expands then the Base Rent shall accordingly increase in proportion to the additional square footage. (3)The Tenant further covenants to pay all other sums required by this Lease to be paid by it and agrees that all amounts payable by the Tenant to the Landlord or to any other party pursuant to the provisions of this Lease shall be deemed to be additional rent (³AGGLWLRQaO RHQW´) ZKHWKHU RU QRW VSHFLILFaOO\ GHVLJQaWHG aV VXFK LQ WKLV LHaVH. (4)The Landlord and the Tenant agree that it is their mutual intention that this Lease shall be a completely carefree net lease for the Landlord and that the Landlord shall not, during the Term of this Lease, be required to make any payments in respect the Leased Premises other than charges of a kind personal to the Landlord (such as income and estate taxes and mortgage payments) and to effect the said intention of the parties the Tenant promises: (a)to pay as Additional Rent: business taxes, real estate taxes and licenses if applicable; (b)to pay all annual fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended, as Additional Rent for such expenses incurred by the Landlord for the maintenance and servicing of the Airport; and, (c)to pay the Landlord a one-time capital recovery charge, based on actuals, for the Landlord to construct the associated hangar apron, if applicable; and, (d)to pay for or provide servicing and maintaining the Leased Premises and the Hangar and shall include the following: (i)all utilities and services including, but not limited to, electricity, water, sewage, natural gas and propane. The Tenant acknowledges that connection fees for utilities and services are entirely at the Tenant¶V FRVW. Further, the Tenant acknowledges that nothing in this Lease, including in this article, is a warranty, covenant or representation by the Landlord to provide connections, utilities or services to the Leased Premises or that the services or utilities can be extended to the Leased Premises; (ii)snow removal and landscaping on the Leased Premises including cutting the grass and weed control of the Leased Premises including the one (1) metre area around the perimeter of the Hangar; (iii)all repair, service and maintenance to the Hangar including reasonable wear and tear; and, (iv)to pay airport infrastructure fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. (5)The Tenant hereby agrees to indemnify and protect the Landlord from any liability accruing to the Landlord in respect of the expenses payable by the Tenant as provided for herein. (i)The Tenant on behalf of itself/himself/herself/themselves, its/his/her/their heirs, executors, administrators and assigns, including its/his/her/their successors in title, hereby covenants and agrees to indemnify and save harmless the Landlord from all actions, cause of actions, suits, claims, demands, damages, losses, costs, charges and expenses of every nature and kind whatsoever by whomsoever make brought or prosecuted, including legal fees, which the Landlord may incur or have to pay, which may arise either directly or indirectly by reason of any activity, actions, performance, negligence or non-performance of the Tenant, its employees, servants, agents, contractors, subcontractors, architect, landscape architect, engineer, surveyor, planner, consultant, project m anager or any other person the Tenant is responsible for at law during the duration of this Agreement; in executing the W ork s under this Agreement; by reason of installation of any Works required under this Agreement; by the failure of the Tenant to complete the installation of the Works required under this Agreement; because of or on account of the ownership, construction, use existence, or maintenance of the property described in the Agreement; by the exercise of the Tenant¶V SRZHUV under this Agreement; the construction, maintenance or the improper or inadequate construction, installation and/or maintenance of the Works; any act or omission of said parties while undertaking the Works; or by reason of the neglect of the Tenant or its employees, servants, agents, contractors, subcontractors or others for whom the Tenant is responsible at law. (ii)Without limiting the generality of the foregoing, the Tenant agrees to indemnify and save harmless the Landlord for any issues related to the alteration of any grade or existing level construction, the maintenance or repair of any taxiway Page 213 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 3 within the Airport, or by reason of the failure, neglect or omission of the Tenant to do anything agreed to be done pursuant to this Agreement or by reason of any act or omission of the Tenant, including failure of the Tenant to comply with the Construction Act. (6)Additional Rent shall be payable yearly in advance on the same dates stipulated for payment of Base Rent in Section 3 (2). (7)All payments to be made by the Tenant pursuant to this Lease are to be in Canadian funds by bank draft, money order or cheque payable to the Landlord and shall be delivered to the Landlord at the Landlord¶V aGGUHVV IRU VHUYLFH VHW RXW LQ SHFWLRQ 17 or to such other place as the Landlord may from time to time direct in writing. (8)All Rent in arrears and all sums paid by the Landlord for expenses incurred which should have been paid by the Tenant shall bear interest from the date payment was due, or made, or expense incurred at a rate per annum equal to the prime commercial lending rate of the Landlord¶V baQN SOXV WZR (2) SHU FHQW. (9)The Tenant acknowledges and agrees that the payments of Rent and Additional Rent provided for in this Lease shall be made without any deduction for any reason whatsoever unless expressly allowed by the terms of this Lease or agreed to by the Landlord in writing and no partial payment by the Tenant which is accepted by the Landlord shall be considered as other than a partial payment on account of Rent o wing and shall not prejudice the Landlord¶V ULJKW WR UHFRYHU aQ\ RHQW RZLQJ. 4.TERMS AND POSSESSION (1)The Tenant shall have possession of the Leased Premises for a period of twenty years, eleven months (WKH ³THUP´), commencing on the 14 day of March, 2022 and ending on the 1st day of January, 2043. (2)The Tenant shall pay any and all connection costs for hydro, gas, water, heating, air- conditioning and for all other services and utilities as may be provided to the Leased Premises. The Tenant shall arrange with the local authority for connection of gas, electricity and water in the name of the Tenant. Nothing in this paragraph or lease is a warranty or representation by the Landlord that any utilities or services are extended to the Leased Premises or can be extended to the Leased Premises. (3)Subject to the Landlord¶V ULJKWV XQGHU WKLV LHaVH, aQG aV ORQJ aV WKH Tenant is in good standing, the Landlord covenants that the Tenant shall have quiet enjoyment of the Leased Premises during the Term of this Lease without any interruption or disturbance from the Landlord or any other person or persons lawfully claiming through the Landlord. 5.ABATEMENT OF RENT DURING CONSTRUCTION (1)So long as the Lease has been fully executed, the Tenant has provided the Landlord with proof of the Tenants insurance, aQG WKH THQaQW KaV SaLG WKH ILUVW aQG OaVW PRQWK¶V RHQW WR be held as a deposit, the Landlord shall provide the Tenant with possession of the Leased Premises for a period of up to six (6) months commencing on the Effective Date for the purposes of constructing the Hangar on the Leased Premises. All terms of the Lease shall be applicable from the Effective Date save and except for the payment of Rent, Base Rent and Additional Rent which shall be payable as of the first day of the month of occupancy of the Hangar or the expiry of the six (6) month construction period whichever occurs first. (2)In the event the Tenant has not completed construction of the Hangar within the six (6) month construction period, the Landlord, in its sole and absolute discretion, may extend the construction period upon written request of the Tenant or terminate this Lease of which WKHQ WKH THQaQW¶V GHSRVLW SURYLGHG LQ SHFWLRQ 5 (1) ZRXOG bH IRUIHLWHG. 6.ASSIGNMENT (1)The Tenant shall not assign this Lease or sublet the whole or any part of the Leased Premises unless they first obtain the consent of the Landlord in writing, which consent shall not unreasonably be withheld and provided the sub-Tenant and/or assignee signs a written acknowledgement that he/she will be bound by the terms, conditions and rules as provided for in this Lease. The Tenant hereby waives its right to the benefit of any present or future Act of the Legislature of Ontario which would permit the Tenant to assign this Lease or sublet the Leased Premises without the Landlord¶V FRQVHQW. (2)The consent of the Landlord to any assignment or subletting shall not operate as a waiver of the necessity for consent to any subsequent assignment or subletting. (3)Any consent given by the Landlord to any assignment or other disposition of the Tenant¶V interest in this Lease or in the Leased Premises shall not relieve the Tenant from its obligations under this lease, including the obligation to pay Rent, Base Rent and Additional Rent as provided for herein. Page 214 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 4 (4)If all or more than 50% of the shares in the Tenant should be sold, assigned or transferred in any manner to a person other than the Tenant, then such transferee shall be bound by the terms and conditions of this Lease. 7.USE (1)During the Term of this Lease the Leased Premises shall not be used for any purpose other than as an aircraft hangar for the storage, repair and operation of airplanes, without the express consent of the Landlord given in writing. The Tenant shall not construct a new hangar or any other building on the Leased Premises except in accordance to the terms of this Lease. (2)The Tenant shall not do or permit to be done at the Leased Premises anything which may: (a)contravene any Airport use, standards, or tenant policy as established by the Landlord from time to time; (b)cause damage to the Leased Premises; (c)cause injury or annoyance to occupants of neighbouring premises; (d)make void or voidable any insurance upon the Leased Premises; (e)constitute a breach of any by-law, status, order or regulation of any municipal, provincial or other competent authority relating to the Tillsonburg Airport, the Leased Premises including any septic bed or other property, equipment or appurtenances; and, (f)create an environmental hazard. The Tenant shall not store, allowed to be stored or do anything that creates hazardous waste or toxic material as defined by the Environmental Protection Act or any related or successor legislation. If an order is made by any level of government, including all agencies, crown corporations, municipal bodies, or a court is made as a result of the Tenant¶V, RU LWV VHUYaQWV, directors, employees, invitees, customers or agents, actions or inaction under this Article or Article 7(2)(e) above or as a result of the septic bed system used by the Tenant then the Tenant shall satisfy the terms of such order including, but not limited to, paying all costs of the work required and shall indemnify and save the Landlord harmless from any costs, including legal costs, if the Landlord suffers any damages or pays any costs associated with such order. (3)The Tenant shall: (a)not interfere in the use of the Airport or any other use of the Property. The Tenant acknowledges that there are other uses of the Property and it shall not interfere in any other use of the Property. The Tenant further acknowledges that there are other Tenants and users of the Airport and it shall not unreasonably interfere in the use or operation of the Airport in any manner nor shall it do, or allow to be done by any of its invitees, customers, employees or agents, anything that would cause or constitute a nuisance, safety violation or hazard to any other Tenant or any user of the Airport who are acting reasonably; (b)comply with all federal and provincial transportation guidelines, regulations, rules, by-laws, statutes, directives and any other such matter that governs the flight, use or operation of aircraft; (c)not block or obstruct the taxiways or runway and permit the ingress and egress to adjacent hangars, aprons and parking areas; (d)not conduct any major repairs to any motor vehicle of any kind other than an aircraft or any vehicle or machinery ancillary to or connected with aircraft; (e)not perform aircraft repair or maintenance outside of the Leased Premises; (f)not start any aircraft in the Hangar; (g)not store any items on the Leased Premises, surrounding Property or in the Hangar other than aircraft and related aircraft items except as specifically permitted in this agreement; (h)not store any flammable products inside the Hangar or on the Leased Premises with the exception of fuel or necessary aircraft related products; (i)notify the Landlord of any public activities and/or events no less than thirty (30) days before such activity and/or event with approval by the Landlord, in its sole and absolute discretion and such approval not to be unreasonably withheld; (j)comply with all rules and regulations of the Airport and ensure the compliance of all the Tenant¶V contractors, employees, agents, customers and invitees; and, (k)provide proof of documentation showing current and proper insurance coverage of any aircraft stored inside the Hangar. (4)The Tenant covenants and agrees that the Landlord may require the adjustment in the Airport leases and as such may demand the Tenant move the Hangar and the location of the Leased Premises. The Landlord shall compensate the Tenant for any expenses in moving the Hangar as agreed between the Parties. (5)The Tenant shall be permitted to construct and maintain one (1) aircraft hangar (the ³WRUNV´) on the Leased Premises as follows: (a)the dimensions of the Hangar shall be 46 feet by 56 feet for a total floor area of 2576 square feet; Page 215 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 5 (b)the style of the Hangar shall be either a pole barn style building or a metal frame building; (c)the siding, siding colour, roof colour, hanger number, and height of the building will be maintained in accordance with current Airport standards as approved by the Landlord; (d)the hangar apron shall be constructed of a hard surface (i.e. asphalt or concrete) with a minimum 300mm (12´) structural sub-base to the satisfaction of the Landlord; (e)any construction or renovation shall comply with the construction requirements of the Landlord in its sole and absolute discretion including the construction UHTXLUHPHQWV GHWaLOHG LQ SFKHGXOH ³B´ to this Lease and all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations; (f)prior to the commencement of construction, the Tenant shall submit, at its sole cost, a site plan and drainage/grading plan which shall include, but not limited to, the information required in this Article 7(5) of this Lease and the proposed floor elevation, which all shall be subject to the approval of the Landlord; (g)the Tenant agrees to maintain the lot grading during and after construction and erection of the Hangar and shall comply with the lot grading and drainage requirements of the Landlord at the sole cost of the Tenant; (h)obtain all necessary permits, as applicable, at the expense of the Tenant; and, (i)the Tenant shall be responsible for and pay the cost of all repair, renovation, and maintenance and nothing in this Lease shall render the Landlord responsible for any such costs. (6)The Landlord acknowledges that it has granted access to the Tenant for the Tenant to maneuver its aircraft from the Hangar to the adjacent taxiway and runway of the Airport. Further, the Landlord hereby grants to the Tenant, its successors and assigns, free and uninterrupted access in, over, upon, across or through the Hangar apron area, defined as 6 metres wide and 26 metres from the front of the Hangar to the adjacent taxiway on each face as required. The Landlord grants to the Tenant the right to enter upon the Hangar apron area at all times and to pass and re-pass thereon as may be required by the Tenant, and its licensees, successors, assigns, servants, agents, employees and contractors including all necessary vehicles, equipment and machinery, from time to time, for the purposes of installing, maintaining, replacing, and reconstructing a suitable surface treatment to the Hangar apron as approved by the Landlord in its sole and absolute discretion. Any cost of installing, removing, maintaining, replacing and/or reconstructing the Hangar apron shall be at the sole expense of the Tenant without contribution of the Landlord. The Tenant covenants that it shall not conduct such work to the Hangar apron without first obtaining the consent of the Landlord and such consent shall not be unreasonably withheld. The Tenant hereby releases the Landlord from any and every claim which may or might arise out of the proper exercise by the Tenant of any of the rights granted herein. 8.CONSTRUCTION IMPLEMENTATION SCHEDULE (1) The Tenant hereby undertakes to complete the work herein in accordance with the WLPHIUaPHV VHW RXW LQ WKH SFKHGXOH ³C´ (WKH ³CRQVWUXFWLRQ SFKHGXOH´). TKH THQaQW VKaOO submit a proposed construction schedule which shall be subject to amendments and approval by the Landlord and attached hereto aV SFKHGXOH ³C´. A variance to the timeframes will only be allowed if approved in writing by the Landlord. Failure to comply may result in the Tenant being in default of this Agreement and the Landlord may seek remedy pursuant to this Agreement. (2) The Landlord approved work shall be carried out by the Tenant in a proper and professional manner so as to do as little damage or disturbance as possible to the Airport lands or the ALUSRUW¶V LQIUaVWUXFWXUH. TKH Tenant shall repair and make good all damage and disturbance that may be caused to the Airport laQGV RU WKH ALUSRUW¶V LQIUaVWUucture, to the satisfaction of the Landlord, acting reasonably, at the sole expense of the Tenant. (3) During construction, the works to be carried out by the Tenant, shall be maintained in all respects in a state of good repair by the Tenant, including keeping the site in a sound, neat, safe and clean condition to the satisfaction of the Landlord. If the site is not kept in a state of good repair, upon seven (7) business days written notice to the Tenant (or such shorter time as may be required in the case of an emergency or other urgent matters or as otherwise provided herein), the Landlord shall have the right to do any work necessary to fulfill this condition and all costs incurred by the Landlord shall be recovered from the Tenant and may be recovered as Additional Rent. 9.REPAIR AND MAINTENANCE (1) The Tenant covenants that during the term of this Lease and any renewal thereof, the Tenant shall keep the Leased Premises and Hangar in good condition including all alterations and additions made thereto, and shall, with or without notice, promptly make all needed repairs and all necessary replacements as would a prudent owner. The Tenant shall be responsible for all wear and tear to the Hangar and shall affect all repairs as Page 216 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 6 necessary. Save and accept the Landlord¶V, RU LWV aJHQW¶s, contractor¶s and employee¶s negligence or intentional actions, at no time is the Landlord responsible for any repairs or damage to the Hangar or the Leased Premises. (2)The Tenant shall permit the Landlord or a person authorized by the Landlord to enter the Leased Premises including the Hangar to examine the condition thereof and view the state of repair at reasonable times: (a)and if upon such examination repairs are found to be necessary, written notice of the repairs required shall be given to the Tenant by or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice; and, (b)if the Tenant refuses or neglects to keep the Leased Premises including the Hangar in good repair the Landlord may, but shall not be obliged to, make any necessary repairs, and shall be permitted to enter the Leased Premises and Hangar, including by its servants or agents, for the purpose of effecting the repairs without being liable to the Tenant for any loss, damage or inconvenience to the Tenant in connection with the Landlord¶V HQWU\ aQG UHSaLUV. II WKH Landlord makes such repairs the Tenant shall pay the cost of them immediately as Additional Rent. (3)Subject to any renewal, upon the expiry of the Term or other determination of this Lease the Tenant agrees to surrender peaceably the Leased Premises to the Landlord in a state of good repair and subject to the conditions contained in this Article 9(3). The Tenant may remove the Hangar provided the Tenant places the Leased Premises back into a similar condition as it was in prior to the construction of the Hangar even if the construction of the Hangar predated this Lease. At any time during the Term, expiry of the Term, if an Act of Default occurs or upon termination of this Lease if the Tenant is in arrears of any rent whatsoever the Tenant agrees that the Landlord shall be permitted to register such lien on the Hangar under the Personal Property Security Act and possession of the Hangar will not be obtained by the Tenant until the lien is paid in full with all accrued interest and legal fees. (4)The Tenant shall immediately give written notice to the Landlord of any substantial damage that occurs to the Leased Premises including the Hangar from any cause. (5)The Tenant hereby agrees that at no time is the Landlord responsible for any damage, including damage to property or personal injury, as a result of the Tenant¶V XVH RI WKH Leased Premises, Airport or Property and the Tenant hereby waives any cause of action in law, equity or by statute as against the Landlord for any loss. The Tenant acknowledges that it shall not institute any claim or make any demand against the Landlord, or anyone that may claim indemnity from the Landlord, for any personal injury or damage to property, including aircraft, as a result of the Tenant¶V XVH (LQFOXGLQJ VWRUaJH) RI WKH HaQJar, Airport or Property. The Tenant acknowledges that the use of the Airport, Hangar or Property is at its own risk. (6)The Tenant hereby forever releases the Landlord from any and all claims in law, equity or by statute as a result of any intentional or negligent acts of any other Tenant and/or user of the Property and/or Airport, or their agents, contractors, invitees, customers or employees that may cause death, personal injury or property loss to the Tenant or its agents, customers, employees, contractors or invitees. 10.ALTERATIONS AND ADDITIONS (1)If the Tenant, during the Term of this Lease or any renewal of the Lease, desires to make any alterations or additions to the Leased Premises, including but not limited to; erecting partitions, attaching equipment, and installing necessary furnishings or additional equipment of the Tenant¶V bXVLQHVV but not including erecting a new hangar or any other accessory building, the Tenant may do so at his own expense provided that any and all alterations or additions to the Leased Premises made by the Tenant must comply with any requirement of thH LaQGORUG LQFOXGLQJ SFKHGXOH ³B´ aQG all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations. (2)The Tenant shall pay Rent at the rate prescribed in paragraph 3 above based upon the area of the Hangar subsequent to any addition or alteration. (3)The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Leased Premises. (4)No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant, or any other person on the Tenant¶V bHKaOI, RQ any part of the outside of the Hangar unless it is located along the facade of the Hangar¶V front and provided it complies with the Landlord¶V VLJQaJH UHTXLUHPHQWV aQG ZLWK aOO aSSOLFabOH OaZV, b\-laws and regulations and is in good workmanlike manner. No other sign, advertisement or notice shall be erected Page 217 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 7 unless it has been approved in every respect by the Landlord in writing. (5)The Tenant agrees, at its own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered against the Landlord¶V SURSHUW\ LQ FRQQHFWLRQ ZLWK aQ\ aGGLWLRQV RU aOWHUaWLRQV WR WKH Leased Premises made by the Tenant or in connection with any other activity of the Tenant. (6)The Tenant shall, at his own expense, if requested by the Landlord, remove any or all additions or improvements made by the Tenant to the Leased Premises during the Term and shall repair all damage caused by the installation or the removal or both. (7)The Tenant shall not bring onto the Leased Premises or any part of the Leased Premises any machinery, equipment or any other thing that might in the opinion of the Landlord, by reason of its hazardous nature, weight, size or use, damage the Leased Premises or the Property. If the Leased Premises or Property are damaged the Tenant shall restore the Leased Premises or Property immediately or pay to the Landlord the cost of restoring the Leased Premises or Property. 11.INSURANCE (1)The Tenant covenants to keep the Landlord indemnified and save harmless the Landlord at all times against all claims, suits, procedures, actions and demands (including but not limited to all legal costs) whatsoever and howsoever arising by any person, entity or corporation whether in respect of damage, loss or death to person or property, arising out of or occasioned by the maintenance, use or occupancy of the Leased Premises, Airport and Property or the subletting or assignment of same or any part thereof. And the Tenant further covenants to indemnify the Landlord with respect to any encumbrance on or damage to the Leased Premises occasioned by or arising from the act, default, or negligence of the Tenant, its officers, agents, servants, employees, contractors, customers, invitees or licensees. The Tenant agrees that the foregoing indemnity shall survive the termination of this Lease notwithstanding any provisions of the Lease to the contrary. (2)The Tenant shall carry insurance in its own name insuring against the risk of damage to the Tenant¶V SURSHUW\ and the Hangar within the Leased Premises caused by fire or other perils. (3)The Tenant shall carry such general liability and property damage insurance including personal injury and property damage coverage with at least two million ($2,000,000.00) dollars in limits of each occurrence with respect to the Leased Premises and Tenant¶V occupation of the Leased Premises. Such insurance policy shall contain no airport site exclusion. (4)All insurance policies in this Section 11 including this Article shall name the Landlord, where applicable, as an insured and loss payee and the policy shall include a cross -liability endorsement. All policies shall be applicable as primary insurance, taking precedence over any other insurance protection owned by the Landlord. The Tenant shall insure that each insurance policy contains a waiver of subrogation rights which the insurer may have against the Landlord and the persons for whom is legally responsible. (5)Upon demand of the Landlord, the Tenant shall provide a copy of any and all policies of insurance including renewals and terms of such policies to the Landlord. If any policy of insurance is canceled the Tenant shall inform the Landlord without delay of such cancellation and shall obtain a replacement policy without delay on the same terms as set out in this Section 11. Under no circumstances shall delivery of and review by the Landlord of any certificate set forth or any insurance policy or any other proof of existence of the insurance coverage release the Tenant of its obligations to take out insurance in strict compliance with the present provisions or constitute a waiver in favour of the Tenant of any of the Landlord's rights. 12.ACTS OF DEFAULT AND LANDLORD¶S REMEDIES (1)An Act of Default has occurred when: (a)the Tenant has failed to pay Rent for a period of 45 consecutive days from the date that payment was required to be paid to the Landlord; (b)the Tenant has breached its covenants or failed to perform any of its obligations under this Lease for a period of 45 consecutive days and: (i)the Landlord has given ten (10) days¶ notice specifying the nature of the default and the steps required to correct it; and, (ii)the Tenant has failed to correct the default as required by the notice; (c)the Tenant has: Page 218 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 8 (i)become bankrupt or insolvent or made an assignment for the benefit of creditors; (ii)had its property seized or attached in satisfaction of a judgment; (iii)had a receiver appointed; (iv)committed any act or neglected to do anything with the result that a Construction Lien or other encumbrance is registered against the Landlord¶V SURSHUW\; or, (v)taken action with a view to dissolution or liquidation; (d)any required insurance policy is cancelled or not renewed by reason of the use or occupation of the Leased Premises, or by reason of non-payment of premiums; (e)the Leased Premises: (i)has become vacant or remain unoccupied for a period of 180 consecutive days. For the purposes of this section the Parties agree that the terms ³YaFaQW aQG ³XQRFFXSLHG´ VKaOO PHaQ QR XVH RU utilization of the Hangar and/or no storage of necessary tools, implements or equipment in the Hangar; or, (ii)is used by any other person or persons, or for any other purpose than as provided for in this Lease without the written consent of the Landlord; (f)failure to install or remedy faulty work, if, in the opinion of the Landlord the Tenant: i.is not proceeding or causing to be proceeded the works required in connection with this Agreement within WKLUW\ (30) Ga\V¶ RI QRWLFH given; or ii.is improperly performing the works; or iii.has neglected or abandoned before the completion, or unreasonably delayed the same, so that conditions of this Agreement are being violated or carelessly executed or being carried out in bad faith; or iv.has neglected or refused to renew or again perform such work as may be rejected by the Landlord as defective or unsuitable; or v.has defaulted performance of the terms and conditions of this agreement; then, in any such instance, the Landlord shall promptly notify the Tenant, in writing, of such default or neglect and if such notification be without effect within ten (10) business days after such notice, the Landlord shall thereupon have full authority and power to purchase materials and employ workers and machines for the proper completion of the works at the cost and expense of the Tenant. The cost of such work shall be calculated by the Landlord whose decision shall be final and be paid to the Landlord by the Tenant on demand. Should payment not be received following the issuance of an invoice from the Landlord, the Landlord shall collect same as Additional Rent in addition to any other remedy available to the Landlord. It is further understood and agreed between the parties hereto that such entry upon the Premise shall be as an agent for the Tenant and shall not be deemed, for any purposes whatsoever, as an acceptance of the works by the Landlord. (2)When an Act of Default on the part of the Tenant has occurred: (a)the current \HaU¶V Rent together with the next yearV¶ Rent shall become due and payable immediately; and, (b)the Landlord shall have the right to terminate this Lease and to re-enter the Leased Premises and deal with them as it may choose. (3)If, because an Act of Default has occurred, the Landlord exercises its right to terminate this Lease and re-enter the Leased Premises prior to the end of the Term, the Tenant shall nevertheless be liable for payment of Rent and all other amounts payable b y the Tenant in accordance with the provisions of the Lease until the Landlord has re-let the Leased Premises or otherwise dealt with the Leased Premises in such manner that the cessation of payments by the Tenant will not result in loss to the Landlord and the Tenant agrees to be liable to the Landlord, until the end of the Term of this Lease for payment of any difference between the amount of Rent hereby agreed to be paid for the Term hereby granted and the Rent any new Tenant pays to the Landlord. (4)If when an Act of Default has occurred, the Landlord chooses not to terminate the Lease and re-enter the Leased Premises, the Landlord shall have the right to take any and all necessary steps to rectify any or all Acts of Default of the Tenant and to charge the costs of such rectification to the Tenant and to recover the costs as Rent. (5)If, when an Act of Default has occurred, the Landlord chooses to waive its right to exercise the remedies available to it under this Lease or at law the waiver shall not constitute condonation of the Act of Default, nor shall the waiver be pleaded as an estoppel against the Landlord to prevent his exercising his remedies with respect to a subsequent Act of Page 219 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 9 Default. No covenant, term, or condition of this Lease shall be deemed to have been waived by the Landlord unless the waiver is in writing and signed by the Landlord. 13.TERMINATION UPON NOTICE AND AT END OF TERM (1)If the Leased Premises and/or Property are subject to an Agreement of Purchase and Sale: (a)The Landlord shall have the right to terminate this Lease, notwithstanding that the Term has not expired, b\ JLYLQJ QLQHW\ (90) Ga\V¶ QRWLFH (WKH ³NRWLFH´) LQ ZULWLQJ WR the Tenant and, at the Tenant¶V RSWLRQ, WKH Landlord shall pay to the Tenant the fair market value for the Hangar or the Tenant agrees to remove the Hangar and comply with Articles 9(3) and 10(5) of this Lease. Upon expiry of the Notice the Tenant shall provide vacant possession of the Leased Premises provided the Landlord pays to the Tenant a bonus of $500.00. For the purposes of this Article and Articles 13(3) and 13(4) fair market value shall be determined as of the date of the issuing of the Notice. (2)If the Tenant remains in possession of the Leased Premises after termination of this Lease as aforesaid and if the Landlord then accepts Rent for the Leased Premises from the Tenant, it is agreed that such overholding by the Tenant and acceptance of Rent by the Landlord shall create a monthly tenancy only but the tenancy shall remain subject to all the terms and conditions of this Lease except those regarding the Term. The Parties agree that if the Term is not renewed then upon expiry of the Term or if the Tenant is an overholding tenant then either Party may terminate the lease upon sixty (60) days written notice to the other party and the Tenant shall comply with Articles 9(3) and 10(5) of this Lease. (3)Other than a termination of this Lease in accordance with Article 13(1) of this Lease, the Landlord shall, at any time and notwithstanding that the Term has not expired, have the XQTXaOLILHG ULJKW WR WHUPLQaWH WKLV LHaVH XSRQ RQH \HaU¶V SULRU ZULWWHQ QRWLILFaWLRQ (the ³NRWLFH´) if the Leased Premises are required for any reason or purpose of the Landlord in which event the Landlord shall pay to the Tenant the fair market value for the Hangar, if erected by the Tenant, unless the Tenant agrees to remove the Hangar and comply with Articles 6(3) and 7(5) of this Lease , and the Tenant shall provide such vacant possession upon the expiry of the Notice provided the Landlord pays to the Tenant a bonus of $500.00. (4)The Parties agree that it is their mutual intention that at the end of the Term of this Lease the lease shall be renewed upon such conditions and terms as agreed between the Parties. The Parties further agree that although it is their mutual intention to renew the lease nevertheless either party may decide not to renew the lease for any reason. The Parties acknowledge that upon such renewal all terms and conditions shall be negotiated between the Parties. If the Parties do not renew this Lease then the Parties agree that the Landlord shall be granted thH RLJKW RI FLUVW RHIXVaO WR SXUFKaVH WKH HaQJaU (WKH ³OSWLRQ´). TKH Tenant covenants that it will not sell the Hangar, or any part thereof, to any person, firm or corporation, without first providing the Landlord to exercise its Option as set out in the terms of this paragraph. Upon the Tenant UHFHLYLQJ a bRQa ILGH RIIHU LQ ZULWLQJ (WKH ³TKLUG PaUW\ OIIHU´) WKH Tenant shall deliver to the Airport Office, 244411 Airport Road, Township of South-West Oxford, Ontario, a copy of the Third Party Offer and the Landlord shall have WZHQW\ bXVLQHVV Ga\V (WKH ³NRWLFH PHULRG´) IURP WKH GaWH RI UHFHLSW RI WKH TKLUG PaUW\ OIIHU to exercise the Option to match the Third Party Offer. If the Landlord exercises its option in the Notice Period then it must inform the Tenant at the Property in writing that it will purchase the Tenant¶V LQWHUHVW LQ WKH HaQJaU RQ WKH VaPH WHUPV aQG FRQGLWLRQV, RU PRUH favourable terms to the Tenant at the Landlord¶V GLVFUHWLRQ, aV FRQWaLQHG LQ WKH TKLUd Party OIIHU (WKH ³Landlord¶V OIIHU´). II WKH Landlord exercises its Option in the Notice Period then the Tenant must sell the Hangar to the Landlord upon the terms and conditions as contained in the Landlord¶V OIIHU. II WKH Landlord does not exercise its option in the Notice Period then the Tenant shall be at liberty to accept the Third Party Offer provided that there are no modifications to the Third Party Offer. If any modifications are made to the Third Party Offer then the Landlord shall be permitted to exercise its option pursuant to the terms of this paragraph. For the purpose of this paragraph, if the Tenant is a corporation, the ZRUG ³VHOO´, LQ aGGLWLRQ WR LWV RUGLQaU\ PHaQLQJ, VKaOO bH GHHPHG WR PHaQ aQG LQFOXGH a VaOH or disposition of the corporate shareholding of the Tenant by the person or persons who, at the date of the commencement of the lease holds or hold a majority of the corporate shares. Subject to the conditions contained in Article 4 of this Agreement, the Parties agree that prior to the expiry of this Lease if the Tenant seeks to assign this Lease to a third party then the Landlord will agree to examine a proposal to extend the term of this Lease however nothing in this paragraph shall require the Landlord to accept any amendment of the term or new term. 14.ACKNOWLEDGMENT BY TENANT (1)The Tenant agrees that it will at any time or times during the Term, upon being given at least forty-eight (48) hours prior written notice, execute and deliver to the Landlord a statement in writing certifying: Page 220 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 10 (a)that this Lease is unmodified and is in full force and effect (or if modified stating the modifications and confirming that the Lease is in full force and effect as modified); (b)the amount of Rent being paid; (c)the dates to which Rent has been paid; (d)other charges payable under this Lease which have been paid; (e)particulars of any prepayment of Rent or security deposits; and, (f)particulars of any sub tenancies. 15.SUBORDINATION AND POSTPONEMENT (1)This Lease and all the rights of the Tenant under this Lease are subject and subordinate to any and all charges against the land, buildings or improvements of which the Leased Premises form part, whether the charge is in the nature of a mortgage, trust deed, lien or any other form of charge arising from the financing or re-financing, including extensions or renewals, of the Landlord¶V LQWHUHVW LQ WKH Property. (2)Upon the request of the Landlord the Tenant will execute any form required to subordinate this Lease and the Tenant¶V ULJKWV WR aQ\ VXFK FKaUJH, aQG ZLOO, LI UHTXLUHG, aWWRUQ WR WKH holder of the charge. (3)No subordination by the Tenant shall have the effect of permitting the holder of any charge to disturb the occupation and possession of the Leased Premises by the Tenant as long as the Tenant performs his obligations under this Lease. 16.RULES AND REGULATIONS The Tenant agrees on behalf of itself and all persons entering the Leased Premises with the Tenant¶V aXWKRULW\ RU SHUPLVVLRQ WR abLGH b\ VXFK UHaVRQabOH UXOHV, standards and regulations of the Airport and/or Property which shall form part of this Lease and as the Landlord may make and/or amend from time to time. 17.NOTICE (1)Any notice required or permitted to be given by one party to the other pursuant to the terms of this Lease may be given To the Landlord at: Tillsonburg Regional Airport Attn: Airport Administrator 244411 Airport Rd South-West Oxford, On N4G 4H1 Fax: 519-842-3445 To the Tenant at the Leased Premises or at: Civilogistics Incorporated 93 Windham Road #3 Norwich, Ontario N0J 1P0 (2)The above addresses may be changed at any time by giving ten (10) days written notice. (3)Any notice given by one party to the other in accordance with the provisions of this Lease shall be deemed conclusively to have been received on the date delivered if the notice is served personally or seventy-two (72) hours after mailing if the notice is mailed. 18.REGISTRATION The Tenant shall not at any time register notice of or a copy of this Lease on title to the Property of which the Leased Premises form part without consent of the Landlord. 19.INTERPRETATION (1)The words importing the singular number only shall include the plural, and vice versa, and words importing the masculine, feminine or neutral gender shall include the other genders, and words importing persons shall include firms and c orporations and vice versa. (2)UQOHVV WKH FRQWH[W RWKHUZLVH UHTXLUHV, WKH ZRUG ³Landlord´ aQG WKH ZRUG ³Tenant´ ZKHUHYHU Page 221 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 11 used herein shall be construed to include the executors, administrators, successors and assigns of the Landlord and Tenant, respectively. (3)When there are two or more Tenants bound by the same covenants herein contained, their obligations shall be joint and several. 20.MISCELLANEOUS (1)Unless otherwise stipulated, parking, if applicable, in the common parking area shall be in common and unreserved. (2)If a dispute should arise between the Parties in the interpretation of this Agreement then both parties agree that such dispute shall be referred to binding arbitration and be bound by the result of such arbitration. The terms, f orm and procedure of the arbitration shall be in accordance with the Arbitration Act or any successor legislation. The parties further agree that the arbitrator shall be jointly chosen and the arbitrator shall have the ability to award costs of the arbitration. This clause shall not apply if the Tenant is in default under the terms of the Lease which include but are not limited to: (a)its obligations to pay Rent, Base Rent and/or Additional Rent; (b)non-repair or maintenance of the Leased Premises; (c)subleased the Leased Premises without the authorization of the Landlord, acting reasonably; (d)changed its use of the Leased Premises; or, (e)used the Leased Premises in any manner contrary to Article 7. (3)In the event that any clause herein should be unenforceable or be declared invalid for any reason whatsoever, such enforce ability or invalidity shall not affect the enforce ability or validity of the remaining portions of the covenants and such unenforceable or invalid portions shall be severable from the remainder of this Lease. (4)This Lease shall be construed and enforced in accordance with the laws of the Province of Ontario. Any proceeding shall be brought at the City of Woodstock in the County of Oxford, Ontario. (5)The Tenant hereby agrees that it has had an opportunity to review the terms of this Lease and seek independent legal advice. (6)Should any provision of this Lease require judicial interpretation or arbitration, it is agreed that the court or arbitrator interpreting or construing the same shall not apply a presumption that the terms thereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent prepared the same, it be agreed that both parties have participated in the preparation hereof. (7)This Lease aQG LW¶V VFKHGXOHV constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersedes all pr ior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the Parties in connection with the subject matter hereof, exc ept as specifically set forth herein. No supplement, modification, waiver or termination of this Lease shall be binding unless executed in writing by the Parties. (8)The Tenant agrees that it has not relied upon any representation, promise or warranty of the Landlord with respect to the condition of the Leased Premises, Hangar or any representation or promise of the Landlord to repair, renovate or otherwise alter the Leased Premises in any manner prior to or after commencement of the Term. The Parties agree that the Leased Premises are being offered to the Tenant LQ aQ ³aV LV´ FRQGLWLRQ. TKH Tenant shall not call on or demand the Landlord to perform any repairs or renovations prior to or after it obtains possession. The Tenant acknowledges that it has performed its own due diligence in establishing the state of repair of the Leased Premises including the Hangar. In Witness of the foregoing covenants the Landlord and the Tenant have executed this Lease. __________________________________ Landlord Stephen Molnar, Mayor The Corporation of the Town of Tillsonburg Page 222 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 12 __________________________________ Landlord Michelle Smibert, Clerk The Corporation of the Town of Tillsonburg We have authority to bind the Corporation. Per: ____________________ _________________________ Witness Name Tenant Emily Crombez and Nathan Bain per. Civilogistics Inc. January 18/22 Page 223 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 13 Schedule “A” THE “LEASED PREMISES” HANGAR G2-9 Page 224 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 14 SCHEDULE “B” CONSTRUCTION REQUIREMENTS 1.The Tenant shall construct an airplane hangar building with approximate dimensions of 46 feet wide by 56 feet deep compromising a floor area of 2576 square feet. 2.The Tenant covenants and agrees, notwithstanding any other statute, regulation or provision regarding WKH IHGHUaO JRYHUQPHQW¶V aXWKRULW\ WR UHJXOaWH WKH aHURQaXWLFV industry, to: (a)obtain from the Landlord an Airport Development Permit prior to construction; (b)to pay to the Landlord a flat fee of $620 to administer the Airport Development Permit; (c)to construct the airplane hangar, and any other building that may be permitted, to the standard of the Ontario Building Code, O. Reg. 332/12 as amended or replaced from time to time (WKH ³OBC´) and to the satisfaction of the Landlord in its sole and absolute discretion, and; (d)to ensure all persons retained by the Tenant have appropriate health and safety policies, insurance and WSIB coverage. 3.The Tenant shall provide to the Landlord the following in order to obtain an Airport Development Permit and approval for use of the Leased Premises and hangar thereon: (a)prior to construction, submission of: 1.all applicable fees; 2.2 copies of a site plan showing the proposed location of the hangar and dimensions to the adjacent buildings; 3.2 copies of construction drawings (foundation plan, floor plan, building elevations, diaphragm/truss bracing, anchorage, construction details/finishes, etc.) stamped by a professional engineer; 4.2 copies of the truss drawings stamped by a professional engineer; and 5.Commitment to General Reviews form completed by both the building owner and professional engineer; (b)prior to occupancy and acceptance: 1.inspection of the construction and acceptance of same by the Landlord in in respect of compliance with the OBC, the terms of this Airport Lease and all policies and rules regulating the Tillsonburg Airport; and 2.submission of all site reports (footing inspection, framing inspection, occupancy inspection) and an occupancy report from the professional engineer; and, (c)final approval: 1.provide a final report (verifying outstanding items not completed at occupancy have been completed/corrected) from the professional engineer if applicable. 4.The parties covenant and agree that the Tenant is not required to obtain a building permit from the Township of Southwest Oxford for construction of buildings on the Tillsonburg Airport. 5.The Tenant covenants and agrees that failure to comply with the provisions of this schedule shall be an event of default of this Lease and in the absence of remedying such default, shall permit the Landlord to terminate this Lease and seek any and all other recourse against the tenant in such instance. Page 225 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 15 SCHEDULE “C” CONSTRUCTION SCHEDULE Provided by the Tenant prior to execution of the lease agreement and approved by the Landlord. Preliminary Construction Schedule: Start of Construction - TBD End of Construction - Prior to Winter Note: Tenant has expressed that a detailed construction schedule will be provided to the Town of Tillsonburg once the contractor and Tenant have finalized. Page 226 of 300 Page 1 of 3 THIS AGREEMENT made the 14th day of March 2022 BETWEEN THE CORPORATION OF THE TOWN OF TILLSONBURG (the “Landlord”) AND Nathan Bain (the “Present Lessee”) AND Emily Crombez (the “Present Lessee”) WHEREAS: the Landlord owns all and singular that certain parcel or tract of land and premises situated lying and being in the Township of South West Oxford in the County of Oxford, being compromised of: PT LT 3-4 CON 7 DEREHAM; LT 5-6 CON 7 DEREHAM; PT LT 7 CON 7 DEREHAM PT 1, 2, 3, 4 & 5, 41R2877, PT 2 & 3, 41R2714, PT 1, 2 & 3, 41R4343, PT 1, 2, 3 & 4, 41R4545; S/T 406551; SOUTH-WEST OXFORD; PIN: 00016-0089 (LT); LRO #41; municipal address being 244411 Airport Road, Tillsonburg, ON N4G 4H1; referred to herein as the “Premises” upon which is located at the Tillsonburg Airport which is owned and operated by the Landlord. AND WHEREAS: By a lease made as of June 14, 2021 (By-law 2021-065) (the “Present Lease”), a copy of which is attached hereto as Schedule “A”, the Landlord leased to the Present Tenant the lands (the “Leased Premises”) more fully described in the Present Lease as Taxiway G1 Lot 6 and comprising approximately 3600 square feet subject to the terms and conditions set forth in the Present Lease; AND WHEREAS: The Landlord and the Tenant have agreed that the Present Lease dealing with the Leased Premises shall be terminated and the Present Lease will be at an end on March 14, 2022 (the “Termination Date”), on and subject to the terms and conditions contained herein; NOW THEREFORE in consideration of the covenants and agreements herein set forth and provided for, the sum of two dollars ($2.00) paid by each Party to the other and other good and valuable consideration, the receipt and sufficient of which is hereby acknowledged, the Parties hereto respectively covenant and agree as follows: 1.0 Termination of Present Lease 1.1 Subject to the provisions of section 1.3, the term of the Present Lease shall be fully completed and ended with effect from and after the Termination Date and the Present Lease is hereby amended accordingly. 1.2 The Present Tenant hereby remises, releases and forever discharges the Landlord, with effect as and from the Termination Date, of and from all manner of actions, causes of action, suits, debts, duties, accounts, covenants, contracts, claims and demands whatsoever which the Present Tenant now has or can, shall or may hereafter have against the Landlord arising out of or under or by virtue of the Present Lease, except as expressly set out herein. 1.3 Notwithstanding any termination of the Present Lease, the Present Tenant shall continue to Page 227 of 300 Page 2 of 3 be responsible to the Landlord for all amounts in arrears under the Present Lease, all damage to the Premises, and for all charges and expenses incurred by or on behalf of the Landlord with respect to such default including, without limitation, all legal, bailiff’s and other professional fees. 2.0 General 2.1 The Landlord represents and warrants that it has the right, full power and authority to enter into this Agreement and to perform its obligations hereunder, that it has not assigned or encumbered its interest in the Lease and that no consent from any mortgagee or other party is required. 2.2 All notices required or permitted to be given hereunder shall be in writing and delivered or sent by prepaid registered mail to the address of the intended recipient set forth below or at such other address as may from time to time be notified by the Landlord or the Tenant in writing. To the Landlord at: The Corporation of the Town of Tillsonburg Attention: Director of Operations and Development 200 Broadway Street Tillsonburg, Ontario N4G 5A7 To the Tenant at: Nathan Bain and Emily Crombez 93 Windham Road #3 Norwich Ontario N0J 1P0 2.3 Each party shall promptly do, execute, deliver or cause to be done, executed and delivered all further acts, documents and things in connection with this Agreement that the other party or parties thereto may reasonably require for the purpose of giving effect to this Agreement and carrying out its provisions and completing the transactions contemplated by this Agreement. 2.4 Unless the context otherwise requires, words importing the singular in number only shall include the plural and vice versa, words importing the use of gender shall include the masculine, feminine and neuter genders, and words importing persons shall include individuals, corporations, partnerships, associations, trusts, unincorporated organizations, governmental bodies and other legal or business entities. If this Agreement has been executed by more than one party as Tenant, their obligations hereunder shall be joint and several, and all references to the “Tenant” herein shall refer to all such parties, as the context requires. 2.5 Delivery of an executed copy of a signature page to this Agreement by electronic transmission shall be effective as delivery of an original executed copy of this Agreement, and each party hereto undertakes to provide each other party with a copy of the Agreement bearing original signatures forthwith upon demand. 2.6 The rights and liabilities of the parties shall ensure to the benefit of their respective legal representatives, heirs, executors, administrators, successors and assigns, as the case may be. 2.7 The Parties covenant and agree that all provisions, terms and conditions contained in this Agreement shall not merge upon completion of this Agreement. 2.8 The parties acknowledge and agree that they enter into this Agreement out of their own volition, and that they have not been induced to sign this Agreement by any representation or warranty. This Agreement, inclusive of its schedules constitutes the entire Agreement between the parties with respect to the subject matter hereof and cancels and supersedes any prior understandings, undertakings, representations, warranties, terms, conditions and agreements, whether collateral, express, implied or statutory, between the parties. 2.9 The parties acknowledge that they have obtained independent legal advice concerning the content of this Agreement or that they have had the opportunity to obtain independent legal advice and chosen not to do so. Page 228 of 300 Page 3 of 3 IN WITNESS WHEREOF the parties hereto have duly executed this Agreement. THE CORPORATION OF THE TOWN OF TILLSONBURG _________________________________________ Stephen Molnar, Mayor I have authority to bind the corporation. _________________________________________ Michelle Smibert, Director of Corporate Services/Clerk I have authority to bind the corporation. PRESENT TENANTS ______________________ _________________________________________ Witness Nathan Bain I have authority to bind the corporation. ______________________ _________________________________________ Witness Emily Crombez I have authority to bind the corporation. Page 229 of 300 Page 1 of 3 Subject: Hangar Land Lease Agreement Taxiway G2-8 Report Number: OPD 22-11 Department: Operations and Development Department Submitted by: Richard Sparham, Manager of Public Works Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION THAT a By-law to execute the Hangar Land Lease Agreement for Taxiway G2 Lot 8 with 1467246 Ontario Inc. (Geoff Lee) be brought forward for Council consideration. BACKGROUND Staff received a new application to construct a 46 ft. x 56 ft. hangar (2576 sq. ft.) from Geoff Lee (1467246 Ontario Inc.). The lot assigned to the applicant is Lot 8 on Taxiway G2 (Hangar G2-8). Staff are satisfied with the proposal and recommend that Council enter into the attached Airport Hangar Land Lease Agreement for Taxiway G2 Lot 8 with 1467246 Ontario Inc. (Geoff Lee) to permit the construction of a 2,576 sq. ft. hangar for a twenty (20) year and six month term, expiring on January 1, 2043. The construction of new hangars increases Airport revenue through both the land lease fee and the potential for additional fuel sales, supporting the Corporations goal of decreasing the net levy requirement to support Airport operations. DISCUSSION After reviewing the existing lease agreement and amendments for this hangar, Staff recommends that the current lease agreement with 1467246 Ontario Inc. be executed. Page 230 of 300 OPD 22-11 Hangar Land Lease Agreement Taxiway G2-8 Page 2 of 3 Figure 1. Hangar G2-8 - Site Plan CONSULTATION The following staff and resources have been consulted in preparing this report:  Director of Operations and Development FINANCIAL IMPACT/FUNDING SOURCE This hangar will provide an additional revenue source for the Tillsonburg Regional Airport of approx. $798.56/year based on the Hangar Land Lease fee of $0.31 per ft2 included in the Tariffs and Fees for 2022. CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☐ Lifestyle and amenities ☐ Customer service, communication and engagement ☐ Business attraction, retention and expansion ☐ Community growth ☒ Connectivity and transportation Page 231 of 300 OPD 22-11 Hangar Land Lease Agreement Taxiway G2-8 Page 3 of 3 ☐ Not Applicable Does this report relate to a specific strategic direction or project identified in the Community Strategic Plan? Please indicate section number and/or any priority projects identified in the plan. Goal – Tillsonburg residents and businesses will be connected to each other, regional networks, and the world through effective traditional and digital infrastructure. Strategic Direction – Leverage the municipal airport more effectively to increase access, visibility and business activity in Tillsonburg. Priority Project – Immediate Term – Airport Master Plan and implementation ATTACHMENTS: Hangar G2-8 Tillsonburg Airport Land Lease Agreement with 1467246 Ontario Inc. Page 232 of 300 Landlord’s Initials __________ Tenant’s Initials __________ TILLSONBURG AIRPORT HANGAR LEASE This Lease is made this 14 day of March 2022 (the “Effective Date”). B E T W E E N THE CORPORATION OF THE TOWN OF TILLSONBURG (the “Landlord”) - and – 1467246 Ontario Inc 244779 Milldale Rd, Otterville, Ont, N0J1R0 Attention: Geoff Lee (the “Tenant”) WHEREAS the Landlord owns all and singular that certain parcel or tract of land and premises situated, lying and being in the Township of South West Oxford in the County of Oxford, being compromised of: PT LT 3-4 CON 7 DEREHAM; LT 5-6 CON 7 DEREHAM; PT LT 7 CON 7 DEREHAM PT 1, 2, 3, 4 & 5, 41R2877, PT 2 & 3, 41R2714, PT 1, 2 & 3, 41R4343, PT 1, 2, 3 & 4, 41R4545; S/T 406551; SOUTH-WEST OXFORD; PIN: 00016-0089 (LT); LRO #41; municipal address being 244411 Airport Road, Tillsonburg, ON N4G 4H1; referred to herein as the “Property”, the “Airport” or the “Tillsonburg Airport” upon which is located the Tillsonburg Airport which is owned and operated by the Landlord. In consideration of the covenants, agreements, warranties and payments herein set forth and provided for, the sum of two dollars ($2.00) paid by each party to the other and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto respectively covenant and agree as follows: 1. LEASED PREMISES (1) The Leased Premises shall consist of a portion of the Tillsonburg Airport identified as Hangar G2-8 on the plan attached as Schedule “A”, being the area upon which the Tenant’s airplane hangar shall be located plus one (1) metre of land extended beyond the exterior perimeter of the Tenant’s airplane hangar building (the “Leased Premises”). (2) Notwithstanding the above, the Landlord reserves the right to assign an alternate lot to the Tenant on thirty (30) days’ written notice at any time prior to the commencement of construction of the Tenant’s hangar. (3) The Landlord covenants and agrees to the construction by the Tenant of an airplane hangar on the Leased Premises being a Hangar, (the “Hangar”) subject to the provisions of Schedule “B”. The Tenant shall complete the construction of the Hangar at its sole cost and expense. (4) The Landlord covenants and agrees that the Hangar on the Leased Premises is not owned by the Landlord but is owned by the Tenant. 2. GRANT OF LEASE (1) The Landlord leases the Leased Premises to the Tenant: (a) at the Rent set forth in Section 3; (b) for the Term set forth in Section 4; and (c) subject to the conditions and in accordance with the covenants, obligations and agreements herein including schedules. (2) The Landlord covenants that it has the right to grant the leasehold interest in the Leased Premises free from encumbrances except as disclosed on title. 3. RENT (1) Rent means the amounts payable by the Tenant to the Landlord pursuant to this Section and includes Additional Rent. (2) The Tenant covenants to pay to the Landlord, during the Term of this Lease rent as follows (the “Base Rent”): for every year of the Term, the total sum of $798.56 per annum (based upon $0.31 per square foot of Hangar building area) plus H.S.T., and any other applicable Page 233 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 2 services tax which may accrue on account of the Landlord collecting rent, payable yearly in advance. Base Rent shall commence on the first day of the Term. If the first day of the Term is not January 1st then Base Rent for the first year of the term shall be prorated until December 31 of the initial year. Base Rent shall then be due on 1st day of the year commencing on January 1st, 2023 and every 1st day of January thereafter. The Parties further agree that the Landlord may, in their sole and absolute discretion, increase the Base Rent annually in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. If the square footage of the Hangar on the Leased Premises expands then the Base Rent shall accordingly increase in proportion to the additional square footage. (3) The Tenant further covenants to pay all other sums required by this Lease to be paid by it and agrees that all amounts payable by the Tenant to the Landlord or to any other party pursuant to the provisions of this Lease shall be deemed to be additional rent (“Additional Rent”) whether or not specifically designated as such in this Lease. (4) The Landlord and the Tenant agree that it is their mutual intention that this Lease shall be a completely carefree net lease for the Landlord and that the Landlord shall not, during the Term of this Lease, be required to make any payments in respect the Leased Premises other than charges of a kind personal to the Landlord (such as income and estate taxes and mortgage payments) and to effect the said intention of the parties the Tenant promises: (a) to pay as Additional Rent: business taxes, real estate taxes and licenses if applicable; (b) to pay all annual fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended, as Additional Rent for such expenses incurred by the Landlord for the maintenance and servicing of the Airport; and, (c) to pay the Landlord a one-time capital recovery charge, based on actuals, for the Landlord to construct the associated hangar apron, if applicable; and, (d) to pay for or provide servicing and maintaining the Leased Premises and the Hangar and shall include the following: (i) all utilities and services including, but not limited to, electricity, water, sewage, natural gas and propane. The Tenant acknowledges that connection fees for utilities and services are entirely at the Tenant’s cost. Further, the Tenant acknowledges that nothing in this Lease, including in this article, is a warranty, covenant or representation by the Landlord to provide connections, utilities or services to the Leased Premises or that the services or utilities can be extended to the Leased Premises; (ii) snow removal and landscaping on the Leased Premises including cutting the grass and weed control of the Leased Premises including the one (1) metre area around the perimeter of the Hangar; (iii) all repair, service and maintenance to the Hangar including reasonable wear and tear; and, (iv) to pay airport infrastructure fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. (5) The Tenant hereby agrees to indemnify and protect the Landlord from any liability accruing to the Landlord in respect of the expenses payable by the Tenant as provided for herein. (i) The Tenant on behalf of itself/himself/herself/themselves, its/his/her/their heirs, executors, administrators and assigns, including its/his/her/their successors in title, hereby covenants and agrees to indemnify and save harmless the Landlord from all actions, cause of actions, suits, claims, demands, damages, losses, costs, charges and expenses of every nature and kind whatsoever by whomsoever make brought or prosecuted, including legal fees, which the Landlord may incur or have to pay, which may arise either directly or indirectly by reason of any activity, actions, performance, negligence or non-performance of the Tenant, its employees, servants, agents, contractors, subcontractors, architect, landscape architect, engineer, surveyor, planner, consultant, project manager or any other person the Tenant is responsible for at law during the duration of this Agreement; in executing the Works under this Agreement; by reason of installation of any Works required under this Agreement; by the failure of the Tenant to complete the installation of the Works required under this Agreement; because of or on account of the ownership, construction, use existence, or maintenance of the property described in the Agreement; by the exercise of the Tenant’s powers under this Agreement; the construction, maintenance or the improper or inadequate construction, installation and/or maintenance of the Works; any act or omission of said parties while undertaking the Works; or by reason of the neglect of the Tenant or its employees, servants, agents, contractors, subcontractors or others for whom the Tenant is responsible at law. (ii) Without limiting the generality of the foregoing, the Tenant agrees to indemnify and save harmless the Landlord for any issues related to the alteration of any grade or existing level construction, the maintenance or repair of any taxiway within the Airport, or by reason of the failure, neglect or omission of the Tenant Page 234 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 3 to do anything agreed to be done pursuant to this Agreement or by reason of any act or omission of the Tenant, including failure of the Tenant to comply with the Construction Act. (6) Additional Rent shall be payable yearly in advance on the same dates stipulated for payment of Base Rent in Section 3 (2). (7) All payments to be made by the Tenant pursuant to this Lease are to be in Canadian funds by bank draft, money order or cheque payable to the Landlord and shall be delivered to the Landlord at the Landlord’s address for service set out in Section 17 or to such other place as the Landlord may from time to time direct in writing. (8) All Rent in arrears and all sums paid by the Landlord for expenses incurred which should have been paid by the Tenant shall bear interest from the date payment was due, or made, or expense incurred at a rate per annum equal to the prime commercial lending rate of the Landlord’s bank plus two (2) per cent. (9) The Tenant acknowledges and agrees that the payments of Rent and Additional Rent provided for in this Lease shall be made without any deduction for any reason whatsoever unless expressly allowed by the terms of this Lease or agreed to by the Landlord in writing and no partial payment by the Tenant which is accepted by the Landlord shall be considered as other than a partial payment on account of Rent owing and shall not prejudice the Landlord’s right to recover any Rent owing. 4. TERMS AND POSSESSION (1) The Tenant shall have possession of the Leased Premises for a period of twenty years, ten months (the “Term”), commencing on the 14 day of March 2022 and ending on the 1st day of January, 2043. (2) The Tenant shall pay any and all connection costs for hydro, gas, water, heating, air- conditioning and for all other services and utilities as may be provided to the Leased Premises. The Tenant shall arrange with the local authority for connection of gas, electricity and water in the name of the Tenant. Nothing in this paragraph or lease is a warranty or representation by the Landlord that any utilities or services are extended to the Leased Premises or can be extended to the Leased Premises. (3) Subject to the Landlord’s rights under this Lease, and as long as the Tenant is in good standing, the Landlord covenants that the Tenant shall have quiet enjoyment of the Leased Premises during the Term of this Lease without any interruption or disturbance from the Landlord or any other person or persons lawfully claiming through the Landlord. 5. ABATEMENT OF RENT DURING CONSTRUCTION (1) So long as the Lease has been fully executed, the Tenant has provided the Landlord with proof of the Tenants insurance, and the Tenant has paid the first and last month’s Rent to be held as a deposit, the Landlord shall provide the Tenant with possession of the Leased Premises for a period of up to six (6) months commencing on the Effective Date for the purposes of constructing the Hangar on the Leased Premises. All terms of the Lease shall be applicable from the Effective Date save and except for the payment of Rent, Base Rent and Additional Rent which shall be payable as of the first day of the month of occupancy of the Hangar or the expiry of the six (6) month construction period whichever occurs first. (2) In the event the Tenant has not completed construction of the Hangar within the six (6) month construction period, the Landlord, in its sole and absolute discretion, may extend the construction period upon written request of the Tenant or terminate this Lease of which then the Tenant’s deposit provided in Section 5 (1) would be forfeited. 6. ASSIGNMENT (1) The Tenant shall not assign this Lease or sublet the whole or any part of the Leased Premises unless they first obtain the consent of the Landlord in writing, which consent shall not unreasonably be withheld and provided the sub-Tenant and/or assignee signs a written acknowledgement that he/she will be bound by the terms, conditions and rules as provided for in this Lease. The Tenant hereby waives its right to the benefit of any present or future Act of the Legislature of Ontario which would permit the Tenant to assign this Lease or sublet the Leased Premises without the Landlord’s consent. (2) The consent of the Landlord to any assignment or subletting shall not operate as a waiver of the necessity for consent to any subsequent assignment or subletting. (3) Any consent given by the Landlord to any assignment or other disposition of the Tenant’s interest in this Lease or in the Leased Premises shall not relieve the Tenant from its obligations under this lease, including the obligation to pay Rent, Base Rent and Additional Rent as provided for herein. (4) If all or more than 50% of the shares in the Tenant should be sold, assigned or transferred Page 235 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 4 in any manner to a person other than the Tenant, then such transferee shall be bound by the terms and conditions of this Lease. 7. USE (1) During the Term of this Lease the Leased Premises shall not be used for any purpose other than as an aircraft hangar for the storage, repair and operation of airplanes, without the express consent of the Landlord given in writing. The Tenant shall not construct a new hangar or any other building on the Leased Premises except in accordance to the terms of this Lease. (2) The Tenant shall not do or permit to be done at the Leased Premises anything which may: (a) contravene any Airport use, standards, or tenant policy as established by the Landlord from time to time; (b) cause damage to the Leased Premises; (c) cause injury or annoyance to occupants of neighbouring premises; (d) make void or voidable any insurance upon the Leased Premises; (e) constitute a breach of any by-law, status, order or regulation of any municipal, provincial or other competent authority relating to the Tillsonburg Airport, the Leased Premises including any septic bed or other property, equipment or appurtenances; and, (f) create an environmental hazard. The Tenant shall not store, allowed to be stored or do anything that creates hazardous waste or toxic material as defined by the Environmental Protection Act or any related or successor legislation. If an order is made by any level of government, including all agencies, crown corporations, municipal bodies, or a court is made as a result of the Tenant’s, or its servants, directors, employees, invitees, customers or agents, actions or inaction under this Article or Article 7(2)(e) above or as a result of the septic bed system used by the Tenant then the Tenant shall satisfy the terms of such order including, but not limited to, paying all costs of the work required and shall indemnify and save the Landlord harmless from any costs, including legal costs, if the Landlord suffers any damages or pays any costs associated with such order. (3) The Tenant shall: (a) not interfere in the use of the Airport or any other use of the Property. The Tenant acknowledges that there are other uses of the Property and it shall not interfere in any other use of the Property. The Tenant further acknowledges that there are other Tenants and users of the Airport and it shall not unreasonably interfere in the use or operation of the Airport in any manner nor shall it do, or allow to be done by any of its invitees, customers, employees or agents, anything that would cause or constitute a nuisance, safety violation or hazard to any other Tenant or any user of the Airport who are acting reasonably; (b) comply with all federal and provincial transportation guidelines, regulations, rules, by-laws, statutes, directives and any other such matter that governs the flight, use or operation of aircraft; (c) not block or obstruct the taxiways or runway and permit the ingress and egress to adjacent hangars, aprons and parking areas; (d) not conduct any major repairs to any motor vehicle of any kind other than an aircraft or any vehicle or machinery ancillary to or connected with aircraft; (e) not perform aircraft repair or maintenance outside of the Leased Premises; (f) not start any aircraft in the Hangar; (g) not store any items on the Leased Premises, surrounding Property or in the Hangar other than aircraft and related aircraft items except as specifically permitted in this agreement; (h) not store any flammable products inside the Hangar or on the Leased Premises with the exception of fuel or necessary aircraft related products; (i) notify the Landlord of any public activities and/or events no less than thirty (30) days before such activity and/or event with approval by the Landlord, in its sole and absolute discretion and such approval not to be unreasonably withheld; (j) comply with all rules and regulations of the Airport and ensure the compliance of all the Tenant’s contractors, employees, agents, customers and invitees; and, (k) provide proof of documentation showing current and proper insurance coverage of any aircraft stored inside the Hangar. (4) The Tenant covenants and agrees that the Landlord may require the adjustment in the Airport leases and as such may demand the Tenant move the Hangar and the location of the Leased Premises. The Landlord shall compensate the Tenant for any expenses in moving the Hangar as agreed between the Parties. (5) The Tenant shall be permitted to construct and maintain one (1) aircraft hangar (the “Works”) on the Leased Premises as follows: (a) the dimensions of the Hangar shall be 46 feet by 56 feet for a total floor area of 2576 square feet; (b) the style of the Hangar shall be either a pole barn style building or a metal frame Page 236 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 5 building; (c) the siding, siding colour, roof colour, hanger number, and height of the building will be maintained in accordance with current Airport standards as approved by the Landlord; (d) the hangar apron shall be constructed of a hard surface (i.e. asphalt or concrete) with a minimum 300mm (12”) structural sub-base to the satisfaction of the Landlord; (e) any construction or renovation shall comply with the construction requirements of the Landlord in its sole and absolute discretion including the construction requirements detailed in Schedule “B” to this Lease and all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations; (f) prior to the commencement of construction, the Tenant shall submit, at its sole cost, a site plan and drainage/grading plan which shall include, but not limited to, the information required in this Article 7(5) of this Lease and the proposed floor elevation, which all shall be subject to the approval of the Landlord; (g) the Tenant agrees to maintain the lot grading during and after construction and erection of the Hangar and shall comply with the lot grading and drainage requirements of the Landlord at the sole cost of the Tenant; (h) obtain all necessary permits, as applicable, at the expense of the Tenant; and, (i) the Tenant shall be responsible for and pay the cost of all repair, renovation, and maintenance and nothing in this Lease shall render the Landlord responsible for any such costs. (6) The Landlord acknowledges that it has granted access to the Tenant for the Tenant to maneuver its aircraft from the Hangar to the adjacent taxiway and runway of the Airport. Further, the Landlord hereby grants to the Tenant, its successors and assigns, free and uninterrupted access in, over, upon, across or through the Hangar apron area, defined as 40 feet wide from the front of the Hangar to the adjacent taxiway. The Landlord grants to the Tenant the right to enter upon the Hangar apron area at all times and to pass and re- pass thereon as may be required by the Tenant, and its licensees, successors, assigns, servants, agents, employees and contractors including all necessary vehicles, equipment and machinery, from time to time, for the purposes of installing, maintaining, replacing, and reconstructing a suitable surface treatment to the Hangar apron as approved by the Landlord in its sole and absolute discretion. Any cost of installing, removing, maintaining, replacing and/or reconstructing the Hangar apron shall be at the sole expense of the Tenant without contribution of the Landlord. The Tenant covenants that it shall not conduct such work to the Hangar apron without first obtaining the consent of the Landlord and such consent shall not be unreasonably withheld. The Tenant hereby releases the Landlord from any and every claim which may or might arise out of the proper exercise by the Tenant of any of the rights granted herein. 8. CONSTRUCTION IMPLEMENTATION SCHEDULE (1) The Tenant hereby undertakes to complete the work herein in accordance with the timeframes set out in the Schedule “C” (the “Construction Schedule”). The Tenant shall submit a proposed construction schedule which shall be subject to amendments and approval by the Landlord and attached hereto as Schedule “C”. A variance to the timeframes will only be allowed if approved in writing by the Landlord. Failure to comply may result in the Tenant being in default of this Agreement and the Landlord may seek remedy pursuant to this Agreement. (2) The Landlord approved work shall be carried out by the Tenant in a proper and professional manner so as to do as little damage or disturbance as possible to the Airport lands or the Airport’s infrastructure. The Tenant shall repair and make good all damage and disturbance that may be caused to the Airport lands or the Airport’s infrastructure, to the satisfaction of the Landlord, acting reasonably, at the sole expense of the Tenant. (3) During construction, the works to be carried out by the Tenant, shall be maintained in all respects in a state of good repair by the Tenant, including keeping the site in a sound, neat, safe and clean condition to the satisfaction of the Landlord. If the site is not kept in a state of good repair, upon seven (7) business days written notice to the Tenant (or such shorter time as may be required in the case of an emergency or other urgent matters or as otherwise provided herein), the Landlord shall have the right to do any work necessary to fulfill this condition and all costs incurred by the Landlord shall be recovered from the Tenant and may be recovered as Additional Rent. 9. REPAIR AND MAINTENANCE (1) The Tenant covenants that during the term of this Lease and any renewal thereof, the Tenant shall keep the Leased Premises and Hangar in good condition including all alterations and additions made thereto, and shall, with or without notice, promptly make all needed repairs and all necessary replacements as would a prudent owner. The Tenant shall be responsible for all wear and tear to the Hangar and shall affect all repairs as necessary. Save and accept the Landlord’s, or its agent’s, contractor’s and employee’s negligence or intentional actions, at no time is the Landlord responsible for any repairs or Page 237 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 6 damage to the Hangar or the Leased Premises. (2) The Tenant shall permit the Landlord or a person authorized by the Landlord to enter the Leased Premises including the Hangar to examine the condition thereof and view the state of repair at reasonable times: (a) and if upon such examination repairs are found to be necessary, written notice of the repairs required shall be given to the Tenant by or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice; and, (b) if the Tenant refuses or neglects to keep the Leased Premises including the Hangar in good repair the Landlord may, but shall not be obliged to, make any necessary repairs, and shall be permitted to enter the Leased Premises and Hangar, including by its servants or agents, for the purpose of effecting the repairs without being liable to the Tenant for any loss, damage or inconvenience to the Tenant in connection with the Landlord’s entry and repairs. If the Landlord makes such repairs the Tenant shall pay the cost of them immediately as Additional Rent. (3) Subject to any renewal, upon the expiry of the Term or other determination of this Lease the Tenant agrees to surrender peaceably the Leased Premises to the Landlord in a state of good repair and subject to the conditions contained in this Article 9(3). The Tenant may remove the Hangar provided the Tenant places the Leased Premises back into a similar condition as it was in prior to the construction of the Hangar even if the construction of the Hangar predated this Lease. At any time during the Term, expiry of the Term, if an Act of Default occurs or upon termination of this Lease if the Tenant is in arrears of any rent whatsoever the Tenant agrees that the Landlord shall be permitted to register such lien on the Hangar under the Personal Property Security Act and possession of the Hangar will not be obtained by the Tenant until the lien is paid in full with all accrued interest and legal fees. (4) The Tenant shall immediately give written notice to the Landlord of any substantial damage that occurs to the Leased Premises including the Hangar from any cause. (5) The Tenant hereby agrees that at no time is the Landlord responsible for any damage, including damage to property or personal injury, as a result of the Tenant’s use of the Leased Premises, Airport or Property and the Tenant hereby waives any cause of action in law, equity or by statute as against the Landlord for any loss. The Tenant acknowledges that it shall not institute any claim or make any demand against the Landlord, or anyone that may claim indemnity from the Landlord, for any personal injury or damage to property, including aircraft, as a result of the Tenant’s use (including storage) of the Hangar, Airport or Property. The Tenant acknowledges that the use of the Airport, Hangar or Property is at its own risk. (6) The Tenant hereby forever releases the Landlord from any and all claims in law, equity or by statute as a result of any intentional or negligent acts of any other Tenant and/or user of the Property and/or Airport, or their agents, contractors, invitees, customers or employees that may cause death, personal injury or property loss to the Tenant or its agents, customers, employees, contractors or invitees. 10. ALTERATIONS AND ADDITIONS (1) If the Tenant, during the Term of this Lease or any renewal of the Lease, desires to make any alterations or additions to the Leased Premises, including but not limited to; erecting partitions, attaching equipment, and installing necessary furnishings or additional equipment of the Tenant’s business but not including erecting a new hangar or any other accessory building, the Tenant may do so at his own expense provided that any and all alterations or additions to the Leased Premises made by the Tenant must comply with any requirement of the Landlord including Schedule “B” and all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations. (2) The Tenant shall pay Rent at the rate prescribed in paragraph 3 above based upon the area of the Hangar subsequent to any addition or alteration. (3) The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Leased Premises. (4) No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant, or any other person on the Tenant’s behalf, on any part of the outside of the Hangar unless it is located along the facade of the Hangar’s front and provided it complies with the Landlord’s signage requirements and with all applicable laws, by-laws and regulations and is in good workmanlike manner. No other sign, advertisement or notice shall be erected unless it has been approved in every respect by the Landlord in writing. (5) The Tenant agrees, at its own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered Page 238 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 7 against the Landlord’s property in connection with any additions or alterations to the Leased Premises made by the Tenant or in connection with any other activity of the Tenant. (6) The Tenant shall, at his own expense, if requested by the Landlord, remove any or all additions or improvements made by the Tenant to the Leased Premises during the Term and shall repair all damage caused by the installation or the removal or both. (7) The Tenant shall not bring onto the Leased Premises or any part of the Leased Premises any machinery, equipment or any other thing that might in the opinion of the Landlord, by reason of its hazardous nature, weight, size or use, damage the Leased Premises or the Property. If the Leased Premises or Property are damaged the Tenant shall restore the Leased Premises or Property immediately or pay to the Landlord the cost of restoring the Leased Premises or Property. 11. INSURANCE (1) The Tenant covenants to keep the Landlord indemnified and save harmless the Landlord at all times against all claims, suits, procedures, actions and demands (including but not limited to all legal costs) whatsoever and howsoever arising by any person, entity or corporation whether in respect of damage, loss or death to person or property, arising out of or occasioned by the maintenance, use or occupancy of the Leased Premises, Airport and Property or the subletting or assignment of same or any part thereof. And the Tenant further covenants to indemnify the Landlord with respect to any encumbrance on or damage to the Leased Premises occasioned by or arising from the act, default, or negligence of the Tenant, its officers, agents, servants, employees, contractors, customers, invitees or licensees. The Tenant agrees that the foregoing indemnity shall survive the termination of this Lease notwithstanding any provisions of the Lease to the contrary. (2) The Tenant shall carry insurance in its own name insuring against the risk of damage to the Tenant’s property and the Hangar within the Leased Premises caused by fire or other perils. (3) The Tenant shall carry such general liability and property damage insurance including personal injury and property damage coverage with at least two million ($2,000,000.00) dollars in limits of each occurrence with respect to the Leased Premises and Tenant’s occupation of the Leased Premises. Such insurance policy shall contain no airport site exclusion. (4) All insurance policies in this Section 11 including this Article shall name the Landlord, where applicable, as an insured and loss payee and the policy shall include a cross-liability endorsement. All policies shall be applicable as primary insurance, taking precedence over any other insurance protection owned by the Landlord. The Tenant shall insure that each insurance policy contains a waiver of subrogation rights which the insurer may have against the Landlord and the persons for whom is legally responsible. (5) Upon demand of the Landlord, the Tenant shall provide a copy of any and all policies of insurance including renewals and terms of such policies to the Landlord. If any policy of insurance is canceled the Tenant shall inform the Landlord without delay of such cancellation and shall obtain a replacement policy without delay on the same terms as set out in this Section 11. Under no circumstances shall delivery of and review by the Landlord of any certificate set forth or any insurance policy or any other proof of existence of the insurance coverage release the Tenant of its obligations to take out insurance in strict compliance with the present provisions or constitute a waiver in favour of the Tenant of any of the Landlord's rights. 12. ACTS OF DEFAULT AND LANDLORD’S REMEDIES (1) An Act of Default has occurred when: (a) the Tenant has failed to pay Rent for a period of 45 consecutive days from the date that payment was required to be paid to the Landlord; (b) the Tenant has breached its covenants or failed to perform any of its obligations under this Lease for a period of 45 consecutive days and: (i) the Landlord has given ten (10) days’ notice specifying the nature of the default and the steps required to correct it; and, (ii) the Tenant has failed to correct the default as required by the notice; (c) the Tenant has: (i) become bankrupt or insolvent or made an assignment for the benefit of creditors; (ii) had its property seized or attached in satisfaction of a judgment; (iii) had a receiver appointed; Page 239 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 8 (iv) committed any act or neglected to do anything with the result that a Construction Lien or other encumbrance is registered against the Landlord’s property; or, (v) taken action with a view to dissolution or liquidation; (d) any required insurance policy is cancelled or not renewed by reason of the use or occupation of the Leased Premises, or by reason of non-payment of premiums; (e) the Leased Premises: (i) has become vacant or remain unoccupied for a period of 180 consecutive days. For the purposes of this section the Parties agree that the terms “vacant and “unoccupied” shall mean no use or utilization of the Hangar and/or no storage of necessary tools, implements or equipment in the Hangar; or, (ii) is used by any other person or persons, or for any other purpose than as provided for in this Lease without the written consent of the Landlord; (f) failure to install or remedy faulty work, if, in the opinion of the Landlord the Tenant: i. is not proceeding or causing to be proceeded the works required in connection with this Agreement within thirty (30) days’ of notice given; or ii. is improperly performing the works; or iii. has neglected or abandoned before the completion, or unreasonably delayed the same, so that conditions of this Agreement are being violated or carelessly executed or being carried out in bad faith; or iv. has neglected or refused to renew or again perform such work as may be rejected by the Landlord as defective or unsuitable; or v. has defaulted performance of the terms and conditions of this agreement; then, in any such instance, the Landlord shall promptly notify the Tenant, in writing, of such default or neglect and if such notification be without effect within ten (10) business days after such notice, the Landlord shall thereupon have full authority and power to purchase materials and employ workers and machines for the proper completion of the works at the cost and expense of the Tenant. The cost of such work shall be calculated by the Landlord whose decision shall be final and be paid to the Landlord by the Tenant on demand. Should payment not be received following the issuance of an invoice from the Landlord, the Landlord shall collect same as Additional Rent in addition to any other remedy available to the Landlord. It is further understood and agreed between the parties hereto that such entry upon the Premise shall be as an agent for the Tenant and shall not be deemed, for any purposes whatsoever, as an acceptance of the works by the Landlord. (2) When an Act of Default on the part of the Tenant has occurred: (a) the current year’s Rent together with the next years’ Rent shall become due and payable immediately; and, (b) the Landlord shall have the right to terminate this Lease and to re-enter the Leased Premises and deal with them as it may choose. (3) If, because an Act of Default has occurred, the Landlord exercises its right to terminate this Lease and re-enter the Leased Premises prior to the end of the Term, the Tenant shall nevertheless be liable for payment of Rent and all other amounts payable by the Tenant in accordance with the provisions of the Lease until the Landlord has re-let the Leased Premises or otherwise dealt with the Leased Premises in such manner that the cessation of payments by the Tenant will not result in loss to the Landlord and the Tenant agrees to be liable to the Landlord, until the end of the Term of this Lease for payment of any difference between the amount of Rent hereby agreed to be paid for the Term hereby granted and the Rent any new Tenant pays to the Landlord. (4) If when an Act of Default has occurred, the Landlord chooses not to terminate the Lease and re-enter the Leased Premises, the Landlord shall have the right to take any and all necessary steps to rectify any or all Acts of Default of the Tenant and to charge the costs of such rectification to the Tenant and to recover the costs as Rent. (5) If, when an Act of Default has occurred, the Landlord chooses to waive its right to exercise the remedies available to it under this Lease or at law the waiver shall not constitute condonation of the Act of Default, nor shall the waiver be pleaded as an estoppel against the Landlord to prevent his exercising his remedies with respect to a subsequent Act of Default. No covenant, term, or condition of this Lease shall be deemed to have been waived by the Landlord unless the waiver is in writing and signed by the Landlord. 13. TERMINATION UPON NOTICE AND AT END OF TERM (1) If the Leased Premises and/or Property are subject to an Agreement of Purchase and Sale: Page 240 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 9 (a) The Landlord shall have the right to terminate this Lease, notwithstanding that the Term has not expired, by giving ninety (90) days’ notice (the “Notice”) in writing to the Tenant and, at the Tenant’s option, the Landlord shall pay to the Tenant the fair market value for the Hangar or the Tenant agrees to remove the Hangar and comply with Articles 9(3) and 10(5) of this Lease. Upon expiry of the Notice the Tenant shall provide vacant possession of the Leased Premises provided the Landlord pays to the Tenant a bonus of $500.00. For the purposes of this Article and Articles 13(3) and 13(4) fair market value shall be determined as of the date of the issuing of the Notice. (2) If the Tenant remains in possession of the Leased Premises after termination of this Lease as aforesaid and if the Landlord then accepts Rent for the Leased Premises from the Tenant, it is agreed that such overholding by the Tenant and acceptance of Rent by the Landlord shall create a monthly tenancy only but the tenancy shall remain subject to all the terms and conditions of this Lease except those regarding the Term. The Parties agree that if the Term is not renewed then upon expiry of the Term or if the Tenant is an overholding tenant then either Party may terminate the lease upon sixty (60) days written notice to the other party and the Tenant shall comply with Articles 9(3) and 10(5) of this Lease. (3) Other than a termination of this Lease in accordance with Article 13(1) of this Lease, the Landlord shall, at any time and notwithstanding that the Term has not expired, have the unqualified right to terminate this Lease upon one year’s prior written notification (the “Notice”) if the Leased Premises are required for any reason or purpose of the Landlord in which event the Landlord shall pay to the Tenant the fair market value for the Hangar, if erected by the Tenant, unless the Tenant agrees to remove the Hangar and comply with Articles 6(3) and 7(5) of this Lease, and the Tenant shall provide such vacant possession upon the expiry of the Notice provided the Landlord pays to the Tenant a bonus of $500.00. (4) The Parties agree that it is their mutual intention that at the end of the Term of this Lease the lease shall be renewed upon such conditions and terms as agreed between the Parties. The Parties further agree that although it is their mutual intention to renew the lease nevertheless either party may decide not to renew the lease for any reason. The Parties acknowledge that upon such renewal all terms and conditions shall be negotiated between the Parties. If the Parties do not renew this Lease then the Parties agree that the Landlord shall be granted the Right of First Refusal to purchase the Hangar (the “Option”). The Tenant covenants that it will not sell the Hangar, or any part thereof, to any person, firm or corporation, without first providing the Landlord to exercise its Option as set out in the terms of this paragraph. Upon the Tenant receiving a bona fide offer in writing (the “Third Party Offer”) the Tenant shall deliver to the Airport Office, 244411 Airport Road, Township of South-West Oxford, Ontario, a copy of the Third Party Offer and the Landlord shall have twenty business days (the “Notice Period”) from the date of receipt of the Third Party Offer to exercise the Option to match the Third Party Offer. If the Landlord exercises its option in the Notice Period then it must inform the Tenant at the Property in writing that it will purchase the Tenant’s interest in the Hangar on the same terms and conditions, or more favourable terms to the Tenant at the Landlord’s discretion, as contained in the Third Party Offer (the “Landlord’s Offer”). If the Landlord exercises its Option in the Notice Period then the Tenant must sell the Hangar to the Landlord upon the terms and conditions as contained in the Landlord’s Offer. If the Landlord does not exercise its option in the Notice Period then the Tenant shall be at liberty to accept the Third Party Offer provided that there are no modifications to the Third Party Offer. If any modifications are made to the Third Party Offer then the Landlord shall be permitted to exercise its option pursuant to the terms of this paragraph. For the purpose of this paragraph, if the Tenant is a corporation, the word “sell”, in addition to its ordinary meaning, shall be deemed to mean and include a sale or disposition of the corporate shareholding of the Tenant by the person or persons who, at the date of the commencement of the lease holds or hold a majority of the corporate shares. Subject to the conditions contained in Article 4 of this Agreement, the Parties agree that prior to the expiry of this Lease if the Tenant seeks to assign this Lease to a third party then the Landlord will agree to examine a proposal to extend the term of this Lease however nothing in this paragraph shall require the Landlord to accept any amendment of the term or new term. 14. ACKNOWLEDGMENT BY TENANT (1) The Tenant agrees that it will at any time or times during the Term, upon being given at least forty-eight (48) hours prior written notice, execute and deliver to the Landlord a statement in writing certifying: (a) that this Lease is unmodified and is in full force and effect (or if modified stating the modifications and confirming that the Lease is in full force and effect as modified); (b) the amount of Rent being paid; (c) the dates to which Rent has been paid; (d) other charges payable under this Lease which have been paid; (e) particulars of any prepayment of Rent or security deposits; and, (f) particulars of any sub tenancies. Page 241 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 10 15. SUBORDINATION AND POSTPONEMENT (1) This Lease and all the rights of the Tenant under this Lease are subject and subordinate to any and all charges against the land, buildings or improvements of which the Leased Premises form part, whether the charge is in the nature of a mortgage, trust deed, lien or any other form of charge arising from the financing or re-financing, including extensions or renewals, of the Landlord’s interest in the Property. (2) Upon the request of the Landlord the Tenant will execute any form required to subordinate this Lease and the Tenant’s rights to any such charge, and will, if required, attorn to the holder of the charge. (3) No subordination by the Tenant shall have the effect of permitting the holder of any charge to disturb the occupation and possession of the Leased Premises by the Tenant as long as the Tenant performs his obligations under this Lease. 16. RULES AND REGULATIONS The Tenant agrees on behalf of itself and all persons entering the Leased Premises with the Tenant’s authority or permission to abide by such reasonable rules, standards and regulations of the Airport and/or Property which shall form part of this Lease and as the Landlord may make and/or amend from time to time. 17. NOTICE (1) Any notice required or permitted to be given by one party to the other pursuant to the terms of this Lease may be given To the Landlord at: Tillsonburg Regional Airport Attn: Airport Administrator 244411 Airport Rd South-West Oxford, ON, N4G 4H1 airportattendants@tillsonburg.ca To the Tenant at the Leased Premises or at: 1467246 Ontario Inc 244779 Milldale Rd, Otterville, Ont, N0J1R0 Email: geoff@tailwindaviation.ca Attention: Geoff Lee (2) The above addresses may be changed at any time by giving ten (10) days written notice. (3) Any notice given by one party to the other in accordance with the provisions of this Lease shall be deemed conclusively to have been received on the date delivered if the notice is served personally or seventy-two (72) hours after mailing if the notice is mailed. 18. REGISTRATION The Tenant shall not at any time register notice of or a copy of this Lease on title to the Property of which the Leased Premises form part without consent of the Landlord. 19. INTERPRETATION (1) The words importing the singular number only shall include the plural, and vice versa, and words importing the masculine, feminine or neutral gender shall include the other genders, and words importing persons shall include firms and corporations and vice versa. (2) Unless the context otherwise requires, the word “Landlord” and the word “Tenant” wherever used herein shall be construed to include the executors, administrators, successors and assigns of the Landlord and Tenant, respectively. (3) When there are two or more Tenants bound by the same covenants herein contained, their obligations shall be joint and several. 20. MISCELLANEOUS (1) Unless otherwise stipulated, parking, if applicable, in the common parking area shall be in common and unreserved. (2) If a dispute should arise between the Parties in the interpretation of this Agreement then both parties agree that such dispute shall be referred to binding arbitration and be bound by the result of such arbitration. The terms, form and procedure of the arbitration shall be in accordance with the Arbitration Act or any successor legislation. The parties further Page 242 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 11 agree that the arbitrator shall be jointly chosen and the arbitrator shall have the ability to award costs of the arbitration. This clause shall not apply if the Tenant is in default under the terms of the Lease which include but are not limited to: (a) its obligations to pay Rent, Base Rent and/or Additional Rent; (b) non-repair or maintenance of the Leased Premises; (c) subleased the Leased Premises without the authorization of the Landlord, acting reasonably; (d) changed its use of the Leased Premises; or, (e) used the Leased Premises in any manner contrary to Article 7. (3) In the event that any clause herein should be unenforceable or be declared invalid for any reason whatsoever, such enforce ability or invalidity shall not affect the enforce ability or validity of the remaining portions of the covenants and such unenforceable or invalid portions shall be severable from the remainder of this Lease. (4) This Lease shall be construed and enforced in accordance with the laws of the Province of Ontario. Any proceeding shall be brought at the City of Woodstock in the County of Oxford, Ontario. (5) The Tenant hereby agrees that it has had an opportunity to review the terms of this Lease and seek independent legal advice. (6) Should any provision of this Lease require judicial interpretation or arbitration, it is agreed that the court or arbitrator interpreting or construing the same shall not apply a presumption that the terms thereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent prepared the same, it be agreed that both parties have participated in the preparation hereof. (7) This Lease and it’s schedules constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the Parties in connection with the subject matter hereof, except as specifically set forth herein. No supplement, modification, waiver or termination of this Lease shall be binding unless executed in writing by the Parties. (8) The Tenant agrees that it has not relied upon any representation, promise or warranty of the Landlord with respect to the condition of the Leased Premises, Hangar or any representation or promise of the Landlord to repair, renovate or otherwise alter the Leased Premises in any manner prior to or after commencement of the Term. The Parties agree that the Leased Premises are being offered to the Tenant in an “as is” condition. The Tenant shall not call on or demand the Landlord to perform any repairs or renovations prior to or after it obtains possession. The Tenant acknowledges that it has performed its own due diligence in establishing the state of repair of the Leased Premises including the Hangar. In Witness of the foregoing covenants the Landlord and the Tenant have executed this Lease. __________________________________ Landlord Stephen Molnar, Mayor The Corporation of the Town of Tillsonburg __________________________________ Landlord Michelle Smibert, Clerk The Corporation of the Town of Tillsonburg We have authority to bind the Corporation. ________________________________ __________________________________ Witness Tenant 1467246 Ontario Inc Per: Geoff Lee I have authority to bind the corporation. Page 243 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 12 Schedule “A” THE “LEASED PREMISES” HANGAR G2-8 Page 244 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 13 SCHEDULE “B” CONSTRUCTION REQUIREMENTS 1. The Tenant shall construct an airplane hangar building with approximate dimensions of 46 feet wide by 56 feet deep compromising a floor area of 2576 square feet. 2. The Tenant covenants and agrees, notwithstanding any other statute, regulation or provision regarding the federal government’s authority to regulate the aeronautics industry, to: (a) obtain from the Landlord an Airport Development Permit prior to construction; (b) to pay to the Landlord a flat fee of $620 to administer the Airport Development Permit; (c) to construct the airplane hangar, and any other building that may be permitted, to the standard of the Ontario Building Code, O. Reg. 332/12 as amended or replaced from time to time (the “OBC”) and to the satisfaction of the Landlord in its sole and absolute discretion, and; (d) to ensure all persons retained by the Tenant have appropriate health and safety policies, insurance and WSIB coverage. 3. The Tenant shall provide to the Landlord the following in order to obtain an Airport Development Permit and approval for use of the Leased Premises and hangar thereon: (a) prior to construction, submission of: 1. all applicable fees; 2. 2 copies of a site plan showing the proposed location of the hangar, dimensions to the adjacent buildings and dimensions of the hangar apron (entrance); 3. 2 copies of construction drawings (foundation plan, floor plan (including finish floor elevation), building elevations, diaphragm/truss bracing, anchorage, construction details/finishes, etc.) stamped by a professional engineer; 4. 2 copies of the truss drawings stamped by a professional engineer; and 5. Commitment to General Reviews form completed by both the building owner and professional engineer; (b) prior to occupancy and acceptance: 1. inspection of the construction and acceptance of same by the Landlord in in respect of compliance with the OBC, the terms of this Airport Lease and all policies and rules regulating the Tillsonburg Airport; and 2. submission of all site reports (footing inspection, framing inspection, occupancy inspection) and an occupancy report from the professional engineer; and, (c) final approval: 1. provide a final report (verifying outstanding items not completed at occupancy have been completed/corrected) from the professional engineer if applicable. 4. The parties covenant and agree that the Tenant is not required to obtain a building permit from the Township of Southwest Oxford for construction of buildings on the Tillsonburg Airport. 5. The Tenant covenants and agrees that failure to comply with the provisions of this schedule shall be an event of default of this Lease and in the absence of remedying such default, shall permit the Landlord to terminate this Lease and seek any and all other recourse against the tenant in such instance. Page 245 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 14 SCHEDULE “C” CONSTRUCTION SCHEDULE Provided by the Tenant prior to execution of the lease agreement and approved by the Landlord. Preliminary Construction Schedule: Start of Construction TBD End of Construction Prior to Winter 2022 Note: Tenant has expressed that a detailed construction schedule will be provided once contractor and Tenant have finalized. Page 246 of 300 Page 1 of 2 Subject: Gas Turbine Service Agreement Renewal Report Number: RCP 22-07 Department: Recreation, Culture & Parks Department Submitted by: Christopher Baird - Director Meeting Type: Council Meeting Meeting Date: Monday, March 14, 2022 RECOMMENDATION THAT due to the need for a factory-authorized distributor service provider, and the limited number of qualified providers for co-generation gas turbine units, the purchasing process be waived in accordance with Sec. 6 of the Town’s Purchasing Policy; AND THAT the Mayor and Clerk be authorized to execute a six (6) year service agreement with Vergent Power Inc. of Eden Prairie, Minnesota, in the amount of $172,620 USD, divided equally for each of the next six years, for a comprehensive factory prevention plan for the Gas Turbine Co-Generators at the Tillsonburg Community Centre. BACKGROUND The purpose of this report is to advise Council of the need to establish a new factory service contract for the three co-generation gas turbine units located at the Tillsonburg Community Centre. This is not a new cost. Rather, it comes before Council because it replaces an existing contract for same with a new supplier, better service and a lower overall cost. The Town’s Purchasing Policy By-law 2020-70 requires Council’s approval to enter into the new single-source contract, per Sec. 6 “Council may waive, by resolution, the application of any part of this By-Law in respect of any given procurement”. DISCUSSION The previous service provider, Whitby Hydro/Elexicon no longer provides the level of services required. Staff have been very diligent in identifying and evaluating a new service provider for the highly specialized maintenance requirements of the co- generation gas turbines. The recommended supplier is the factory-authorized distributor for our cogeneration units in northeast North America. Page 247 of 300 RCP 22-07 Page 2 of 2 It is imperative that the Town have available a service contract which essentially acts as an extended warranty for routine parts and major planned lifecycle re -builds. The three Capstone Turbines provide electricity to the centre and the local electrical grid and further generate latent heat that the Town uses for various district heating tasks such as for the indoor aquatic pool. These are highly complex systems and qualified service providers are very limited. In this case, there exists the original provider that ha s various agents that act as a “middleman” for potential gas turbine owners to secure parts and specialized service when needed. For this reason, staff have secured a very favourable quotation for service from Vergent Power Inc. The Town will be able to deal directly with a factory-authorized service provider at a significant annual savings of approximately $30,000 over the remaining contract term. Vergent is already providing monitoring services for our plant and this contract rolls up the monitoring, parts and service into one more cost effective contract. The Town is fortunate to have a highly qualified Chief Operator that not only can provide basic maintenance on the systems but also can work in lock step with the service provider when problems develop. He has been instrumental in identifying a more superior service contract for a considerable cost savings for the Town. CONSULTATION This report has been prepared in consultation with the Chief Operator, the Manager of Parks & Facilities, and the Director of Finance. FINANCIAL IMPACT/FUNDING SOURCE The associated costs for this service contract, which is approximately $227K CDN (based on exchange rate at the time of the report of 1.3127) or $38K annually, is included within the existing base operating budget in the Recreation, Culture & Parks Department. CORPORATE GOALS How does this report support the corporate goals identified in the Community Strategic Plan? ☐ Lifestyle and amenities ☐ Customer service, communication and engagement ☐ Business attraction, retention and expansion ☐ Community growth ☐ Connectivity and transportation ☒ Not Applicable ATTACHMENT N/A Page 248 of 300 Page 1 of 3 The Corporation of the Town of Tillsonburg Affordable and Attainable Housing Committee meeting February 23, 2022 4:15 p.m. Electronic MINUTES Present: Dane Willson, Chris Parker (Chair), Councillor Penny Esseltine, Mayor Stephen Molnar, Lisa Lanthier, Elyse Pelland, Cedric Tomico Absent with Regrets: Gary Green, Suzanne Renken, Rebecca Smith Staff Present: Kyle Pratt, Chief Administrative Officer Kennedy Atkinson, Acting Executive Assistant Cephas Panschow, Development Commissioner 1.Call to Order The meeting was called to order at 4:16 p.m. 2.Adoption of Agenda Resolution #1 Moved by: Dane Willson Seconded by: Counsellor Penny Esseltine THAT the Agenda as prepared for the Affordable and Attainable Housing Advisory Committee meeting of February 23, 2022, be adopted. CARRIED 3.Minutes of the Previous Meeting Resolution #2 Page 249 of 300 Page 2 of 3 Moved by: Counsellor Penny Esseltine Seconded by: Dane Willson THAT the minutes prepared for the Affordable and Attainable Housing Advisory Committee meeting of January 26th, 2022, be adopted. CARRIED 4.Disclosures of Pecuniary Interest and the General Nature Thereof There were no disclosures of pecuniary interest declared. 5.Presentations No presentations 6.General Business and Reports 6.1. County Housing Master Plan Two sections of land were presented to the Affordable and Attainable Housing Advisory Committee, and an additional section of land was recommended by the Committee. A report will be brought forward to the next council meeting for discussion. Information from Blandford Blenheim will be circulated as requested by Mayor Stephen Molnar. Resolution #3 Moved by: Cedric Tomico Seconded by: Mayor Stephen Molnar THAT the Affordable/Attainable Housing Committee recommends to Council that the excess lands at 31 Earle St and a portion of the 45 Hardy Ave and a portion Gyulveszi Park property be supported for inclusion in the Oxford County Housing Master Plan analysis for potential future development CARRIED 6.2 Report of the Ontario Housing Affordability Task Force - Review of Most Appropriate Recommendations for Tillsonburg It was recommended that this item be reviewed by staff and identify items that re most relevant to Tillsonburg. 7.Round Table It was requested that Staff attach the response letter for the Report of the Ontario Housing Affordability Task Force to the next agenda. Page 250 of 300 Page 3 of 3 8.Next Meeting March 23, 2022 9.Adjournment Resolution #4 Moved by: Dane Willson Seconded by: Lisa Lanthier THAT the February 23, 2022 Affordable and Attainable Housing Advisory Committee meeting be adjourned at 4:54 p.m. CARRIED Page 251 of 300 Page 1 of 6 The Corporation of the Town of Tillsonburg Tillsonburg Airport Advisory Committee January 20, 2022 5:30 p.m. Electronic Meeting MINUTES Present: David Brandon, Euclid Benoit, Dan Cameron, Emily Crombez, Councillor Gilvesy, Mayor Molnar, Mark Renaud and Valerie Durston (Joined meeting at 5:41pm) Absent with Regrets: Jeff Miller and Jeff Dean Also Present: Carlos Reyes, Director of Operations and Development Richard Sparham, Manager of Public Works Nahom Woldu, Airport Manager, Loomex Tracy Hird, Public Works Co-ordinator 1. Call to Order The meeting was called to order at 5:30 p.m. 2. Adoption of Agenda Resolution #1 Moved by: Emily Crombez Seconded by: Euclid Benoit THAT the Agenda as prepared for the Tillsonburg Airport Advisory Committee meeting of January 20, 2022, be adopted. Page 252 of 300 Page 2 of 6 Carried 3. Minutes of the Previous Meeting Resolution #2 Moved by: Dan Cameron Seconded by: Emily Crombez THAT the Minutes of the Tillsonburg Airport Advisory Committee meeting dated November 18, 2021, be approved. Carried 4. Disclosures of Pecuniary Interest and the General Nature Thereof There were no disclosures of pecuniary interest declared. 5. General Business and Reports 5.1. Updated DRAFT Operating Reports - Staff Staff recommended more time is required to read over the details of the reports and can bring forward at the next meeting. Councillor Gilvesy questioned staff if there is anything in the current lease agreements that prevent tenants from renting out space to other aircraft owners? Staff commented that the current lease agreement that have been reviewed do have a clause that prohibit subletting of the hangers. It was confirmed that older agreements may not have this clause and have different language. Staff relayed that any subletting should be approved by the Town and would be handled on a case by case basis. It was also noted that going forward, there would be a standard lease agreement for consistency. Committee members provided information that historically, owners have rented space in their hangers as these hangers are large financial investments and renting out the space allows them to re-coup some of the cost. Councillor Gilvesy questioned snow removal timelines for priority areas, especially ambulance access to get to Air Ornge, with the current snow removal contract. Staff confirmed that they have reached out to Horvath Holdings regarding this issue and have not received a response. It was suggested by staff that the Airport Attendants could take on the responsibility of clearing the snow as the Town is currently at the liberty of contractor availability. Mark Renaud commented that this is a life safety issue and for these large snow events staff need to relay the importance of this service to the contractor. Page 253 of 300 Page 3 of 6 Emily Crombez brought forth the ongoing issue with the current snow removal process of leaving windrows beside the taxiways. She stressed that these windrows cannot be left and must be cleared following proper airport snow clearing practices. These windrows pose a risk of damaging the wings when the snow is high. Staff has confirmed that they will meet to review the current process and put a plan in place for future events such as this. This will be communicated to the contractor and if it something that they cannot do, staff will make sure it is completed in a timely manner. Mark Renaud commented that Emily Crombez has a number of years experience and has visited numerous airports and her concerns should be listened to. 5.2. Hangar Updates – Staff Staff provided an update that there are a few applicants that need to go to Council. Two out of the four applicants are ready to go but they need to amend some of the agreements that have already been approved by Council. Councillor Gilvesy questioned if there is a timeline when staff expects to have it come to Council as time is of the essence. This needs to get moving due to the time it takes for permits, obtaining supplies, etc. Staff responded that it will be as soon as possible. They will help get the applicants going to get the green light to start building once the expansion way is completed. Emily Crombez commented that they are again waiting for the Town to get back to them regarding approvals for the revised grading plan. Staff advised that they met on January 7th to discuss the changes to the sizes that were included in the master plan. Engineering was to get back to the tenants in 2 weeks which is January 21st. Staff will follow up with Engineering to provide the information on time. The new process will be followed going forward. Emily Crombez confirmed that the new process going forward with 10 business days is great as long as it is followed for everyone. 5.2.1. Detailed overview of the revised Hangar approval process Staff provided a brief overview of the process; Meeting with the applicant to obtain all information for the hanger that they are interested in. Provide a draft lease agreement so that the tenant has an opportunity to review and provide comments. Once the completed and signed agreement is received it will go to Council. When approved by Council, all of the detailed designs will be obtained from the Engineer and talk will begin with the Building Department. Staff to provide response back to the applicant within 10 business days. Page 254 of 300 Page 4 of 6 Following any further revisions, final approval will be made and a construction permit issued. Pre-construction meeting will take place with a schedule for construction provided. Applicant to provide Town with as built drawings and a certificate from an Engineering consultant approving that everything is safe. Town to issue occupancy. 5.3. Master Plan Update – Staff 5.3.1. Update on Hydro Supply ERTH as been contracted and is in the process of investigating the hydro supply loading issues. Staff should see a report from ERTH for the next meeting. Dan Cameron questioned that ERTH was retained a year or two ago and he is hoping we are not paying for the same information as before. Staff provided an update on the scope of work for this new project. ERTH is providing a drawing that shows all existing locates and an analysis of transformer capacity, proposed layout for expansion, system condition and map of all electrical lines. Staff confirmed that this is a different scope of work. Mark Renaud questioned staff that they are confident that there is enough capacity available to continue to build? Staff confirmed that this is the information that ERTH will provide in this study. 5.3.2. Taxiway Construction Update Contractor completed some work in December before the holidays. The snow event slowed the construction but they are planning to go back on site tomorrow or next week. According to the plans we are good to go. Storm sewers have been installed and the other supplies have been obtained. The only thing we will have to wait for is the asphalt plants to open in the spring. David Brandon questioned what the schedule is for the ramp area? Staff commented that this is a provisional item in the contract. Staff is working on calculations for the materials to make sure there is enough funding. Staff should have an update for the next meeting. 5.3.3. Airport Fence and Gate Installation Bids were sent out in December and staff have tentatively selected a successful contractor. Staff is waiting for Councillor Durston and the January 28th Council meeting. Immediately following that installation of the fence and the set up of the gate at the front will begin. Tender results were positive. A cantilever gate that will be powered with access controls will secure the lessees inside the gate. Page 255 of 300 Page 5 of 6 5.3.4. End of Runway Trees – Staff Staff is finalizing the request for tender. It will be similar to the last time except a component will be added for stump removal to ensure new trees do not grow back in the future. Mark Renaud asked if we need to re-apply for approvals from the Long Point Region Conservation Authority (LPRCA). Staff confirmed that we do not need to obtain approvals, however, we do provide information to the Conservation Authority of the work we will be doing. 5.4. RATI Funding Update No new information. All tendering results have been favourable. 5.5. Safety Spreadsheet – Staff No new issues or concerns at this time. 5.6. Fuel Sales and Airport Movement - Staff Update not available at this time. Staff will update November to February at the next meeting. Mr. Renaud asked that, if there are any metrics available, staff send them out in an email. 6. New Business Communications – Staff has requested all communications and concerns be sent to the Airport Manager and his delegate at the email address airportattendants@tillsonburg.ca. Typically when communication is received staff will make sure all members of the committee are copied on the response. Councillor Gilvesy requested clarification that tenants should send communication to this email address? Staff confirmed that this is the process that they would like to follow. If anything is received that is of relevance to the committee, staff will make sure that it is communicated to the committee as a whole. Staff will send out communication to all of the tenants and committee members with this new email address. Master Transportation Plan – Ai r Sector – Mayor Molnar thanked the representatives of this committee and additionally those that participated proactively in the Southwestern Ontario Master Transportation Plan in its draft form. The ideas and comments of the members of this committee are extremely well represented. Canadian Snowbirds – Mayor Molnar communicated that there is an opportunity for Tillsonburg to be a host site for the Canadian Snowbirds on the 14th of September. Tillsonburg will celebrate its 150th anniversary in 2022 and this opportunity could be tied in with the celebrations. More information will be required before this event is approved. Possibly if there is enough interest, an ad hoc committee could be formed to look into this opportunity further. Page 256 of 300 Page 6 of 6 Awareness of our Regional Airport – Dan Cameron questioned if there would be an opportunity to get word out regarding our airport to our municipal partners. The City of Woodstock website mentions the nearby airports that you can land in when visiting the city but there is no mention of the Tillsonburg Airport. He is wondering how we could go about communicating to the other Municipal Councillors and showcase the value of the airport. Mayor Molnar will connect with our Development Commissioner to contact the City of Woodstock. Mark Renaud added that when the COVID-19 pandemic is over there is definitely opportunity to participate in an open house or an Open Doors Oxford event having the Tillsonburg Airport be a stop to promote the airport 7. Next Meeting February 17th, 2022 at 5:30 p.m. 8. Adjournment Resolution #3 Moved by: Emily Crombez Seconded by: Euclid Benoit THAT the January 20, 2022 Tillsonburg Airport Advisory Committee meeting be adjourned at 6:43 p.m. Carried Page 257 of 300 Page 1 of 3 The Corporation of the Town of Tillsonburg Memorial Park Revitalization Advisory Committee February 16, 2022 5:30 p.m. Electronic MINUTES Present: Mel Getty, Scott Vitias, Joan Weston, Jane Ann McLean, Rosemary Dean Absent with Regrets: Terry Smith, Mike Cerna, Kim Sage, Ken Patterson Also Present: Chris Rosehart, Christopher Baird, Dave Drobitch, Margaret Puhr 1. Adoption of Agenda Resolution #1 Moved by: Joan Weston Seconded by: Scott Vitias THAT the Agenda as prepared for the Memorial Park Revitalization Advisory committee meeting of February 16, 2022, be adopted. Carried 2. Disclosures of Pecuniary Interest and the General Nature Thereof - none 3. Minutes of the Previous Meeting Page 258 of 300 Page 2 of 3 4. Presentations/Deputations - none 5. General Business & Reports 5.1. Staff update – David Drobitch: vandalism at facilities and parks – some occurrences have been found at town facilities, particularly memorial park area with graffiti on buildings and damage to structures. The outdoor rink, fairboard buildings and other facilities have been affected, some repeatedly. Council has been made aware of this, and one of the remedies that has been suggested is creating a parks use by-law. Right now the police or town staff don’t have a lot of regulations to fall back on when something is happening in the parks. A by-law is a tool in the hand of the town staff which can help with acting on incidents of that nature. Dave asked the committee about how it feels about recommending or supporting such measure, to help the staff move forward. Chris Baird supported that other municipalities have progressive park use bylaws to assist with management of those facilities. Committee members would like to see mitigation of the vandalism in the parks and supported the idea as well as cameras at the main affected facilities. There are some cameras installed already and more in planning stages. Committee is fully supportive of investigating and implementing a parks use by-law. 5.2. Community Centre addition/renovation project presentation to council – as shared via email prior to the meeting. The splash pad tender is going out this week, the community centre project is still being worked on with the architects and planners and the final drawings will be presented to council prior to the tendering process. This is a modern addition focused on accessibility, inclusivity and opening up some of the areas around the pool. Councillor Rosehart suggested closing the Health Club facility and converting it to additional hockey dressing rooms that are much needed. 5.3. Master Plan Report card review – deferred to the next meeting. Chris Baird noted that the Town is in the process of installing the new wayfinding signage which is the first phase. The second phase, directional signage at parks and Page 259 of 300 Page 3 of 3 facilities (Memorial Park) has not been started. The committee will have a chance to review the proposed signage. The final stage will the signage on the community centre building, which will be revisited once the renovation i s completed. 5.4. Memorial tree and bench program review – the committee received some background ahead of the meeting. The purpose of this review is to streamline the process and have a better plan for future locations of both trees and benches, as well as perhaps focus on central recognition rather than individual stones for each tree. The committee members will further review the provided documents and discuss at the next meeting. 6. Next Meeting: March 16, 2022 – format TBD 7. Adjournment Resolution #2 Moved by: Rosemary Dean Seconded by: Jane Ann McLean THAT the February 16, 2022 Memorial Park Revitalization Advisory Committee meeting be adjourned at 6:45pm. Carried Please contact the Staff Liaison listed below to gain access to this electronic meeting: Contact Margaret Puhr mpuhr@tillsonburg.ca 519-688-3009 ext.4202 Page 260 of 300 FULL AUTHORITY COMMITTEE MEMBERS Dave Beres, Robert Chambers, Kristal Chopp, Michael Columbus, Valerie Donnell, Ken Hewitt, Tom Masschaele, Stewart Patterson, Ian Rabbitts, John Scholten, Peter Ypma - 1 - LONG POINT REGION CONSERVATION AUTHORITY Board of Directors Special Meeting Minutes of February 23, 2022 Approved March 4, 2022 Members in attendance: John Scholten, Chair Township of Norwich Michael Columbus, Vice-Chair Norfolk County Dave Beres Town of Tillsonburg Robert Chambers County of Brant Valerie Donnell Municipality of Bayham/Township of Malahide Tom Masschaele Norfolk County Stewart Patterson Haldimand County Ian Rabbitts Norfolk County Peter Ypma Township of South-West Oxford Regrets: none Kristal Chopp Norfolk County Ken Hewitt Haldimand County Staff in attendance: Judy Maxwell, General Manager Aaron LeDuc, Manager of Corporate Services Lorrie Minshall, Interim Watershed Services Manager Dana McLachlan, Executive Assistant 1. Welcome and Call to Order The chair called the meeting to order at 9:30 a.m., Wednesday, February 23, 2022. 2. Additional Agenda Items There were no additional agenda items. 3. Declaration of Conflicts of Interest No conflicts declared. 4. Minutes of the Previous Meeting a) Board of Directors Meeting February 2, 2022 The Board requested an update regarding the Watersports Cable Park proposal. Mr. and Mrs. Cook were notified by the General Manager of the Board’s decision to not proceed with a Watersports Cable Park at Waterford North. While disappointed they were understanding and will continue to search for a suitable location. Page 261 of 300 FULL AUTHORITY COMMITTEE MEMBERS Dave Beres, Robert Chambers, Kristal Chopp, Michael Columbus, Valerie Donnell, Ken Hewitt, Tom Masschaele, Stewart Patterson, Ian Rabbitts, John Scholten, Peter Ypma - 2 - A-26/22 Moved by S. Patterson Seconded by T. Masschaele THAT the minutes of the LPRCA Board of Directors Meeting held February 2, 2022 be adopted as circulated. Carried 5. Business Arising There was no business arising from the minutes. 6. New Business a) Phase 1 Programs and Services Report As part of the Phase 1 regulatory requirements, staff reviewed all of the programs and services offered by LPRCA and classified them into three categories as specified by Ontario Regulation 686/21 of the Conservation Authorities Act. Category 1 programs and services are core services mandated by the Province through O. Reg. 686/21 that are funded by municipal levy or in combination with user fees. Category 2 programs and services are requested by a municipality and can be funded by grants or municipal funding by agreement through Memorandum of Understanding (MOU). Category 3 includes all other programs and services that the LPRCA Board agrees is advisable. These programs are funded through self-generated income, user fees, grants, or donations. Any municipal funding would require agreements with each municipality and be subject to cost apportionment. All agreements must be in place by September 2023 in preparation for the 2024 budget. A-27/22 Moved by D. Beres Seconded by P. Ypma THAT the LPRCA Programs and Services Inventory be approved by the LPRCA Board of Directors, circulated to all member municipalities, posted on the LPRCA website and submitted to the Ministry of Environment, Conservation and Parks in accordance with Ontario Regulation 687/21. Carried T. Masschaele left the meeting. Page 262 of 300 FULL AUTHORITY COMMITTEE MEMBERS Dave Beres, Robert Chambers, Kristal Chopp, Michael Columbus, Valerie Donnell, Ken Hewitt, Tom Masschaele, Stewart Patterson, Ian Rabbitts, John Scholten, Peter Ypma - 3 - 7. Closed Session A-28/22 Moved by V. Donnell Seconded by M. Columbus  A trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence to the Authority, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization; Carried The board reconvened in open session at 11:40 a.m. A-29/22 Moved by D. Beres Seconded by S. Patterson THAT the LPRCA Board of Directors approves the bid submitted by Townsend Lumber Inc. for marked standing timber at the Nemeth Tract LP-341-22 for a total tendered price of $22,700. Carried A-30/22 Moved by I. Rabbitts Seconded by M. Columbus THAT the LPRCA Board of Directors approves the bid submitted by TriTree to plant 59,640 trees for LPRCA’s Spring 2022 Restoration contract for a total tendered price of $36,998.87 (HST inclusive). Carried Adjournment The Chair adjourned the meeting at 11:45 a.m. _______________________________ ________________________________ John Scholten Judy Maxwell Chair General Manager/Secretary-Treasurer /dm Page 263 of 300 THE CORPORATION OF THE TOWN OF TILLSONBURG BY-LAW 2022-___ A By-Law to amend Zoning By-Law Number 3295, as amended. (ZN 7-22-01) WHEREAS the Municipal Council of the Corporation of the Town of Tillsonburg deems it advisable to amend By-Law Number 3295, as amended. THEREFORE, the Municipal Council of the Corporation of the Town of Tillsonburg, enacts as follows: 1. That Schedule "A" to By-Law Number 3295, as amended, is hereby amended by changing to ‘R1A-26’, ‘R2-25’ & ‘R3-20’ the zone symbols of the lands so designated ‘R1A-26’, ‘R2-25’ & ‘R3-20’ on Schedule “A” attached hereto. 2 This By-Law comes into force in accordance with Sections 34(21) and (30) of the Planning Act, R.S.O. 1990, as amended. READ A FIRST AND SECOND TIME THIS 14TH DAY OF MARCH, 2022. READ A THIRD AND FINAL TIME AND PASSED THIS 14TH DAY OF MARCH, 2022. _______________________________ MAYOR – Stephen Molnar _______________________________ CLERK – Michelle Smibert Page 264 of 300 R2-25 R3-20 R2-25 R1A-26 R1A-26 R2-25 CA NARY S T KEBACRESNORTH ST EL O T 5C O N C E S S I O N 1 0R2-25 R2-25 R2-25 R3-20 R3-20 BRAUN AVELARK STMARTINST S C H E D U L E "A " P T L O T 5 , C O N C E S S I O N 1 0 (D E R E H A M )TO WN OF TIL LS ONB URG N O T E : A L L D I M E N S I O N S I N M E T R E STHIS B Y -L A W I S I N T E N D E D T O E N C O M P A S SALL O F T H E L A N D S O F D R A F T P L A N O FSUBDIVISION 3 2 T -07 0 0 6 W I T H A H O L D I N G Z O N E . T H I S I S S C H E D U L E "A " M A Y O R C L E R K TO BY-LAW No. ________________, PASSED THE __________ DAY OF ____________, 2022 T O B Y -L A W N o .© 30 0 30 60 9015 METRES A R E A O F Z O N E C H A N G E T O R 2 -2 5R2-2 5 A R E A O F Z O N E C H A N G E T O R 1 A -2 6R1A-2 6 A R E A O F Z O N E C H A N G E T O R 3 -2 0R3-2 0 Þ Page 265 of 300 Ministry of Transportation Ministdre des Transports Office of the Minister Bureau de la ministre 777 Bay Street, 5^ Floor Toronto ON M7A 1Z8 416 327-9200 www.ontario.ca/transportation 777, rue Bay, 5' 6tage Toronto ON M7A1Z8 416 327-9200 www.ontario.ca/transports QnlaiiO January 21, 2022 His Worship Stephen Moinar Mayor, Town of Tiiisonburg lOLisgarAve Tiiisonburg ON N4G 5A5 Dear Mayor Moinar: RE:Dedicated Gas Tax Funds for Public Transportation Program This Letter of Agreement between the Town of Tiiisonburg (the “Municipality”) and Her Majesty the Queen in right of the Province of Ontario, as represented by the Minister of Transportation for the Province of Ontario (the “Ministry"), sets out the terms and conditions for the provision and use of dedicated gas tax funds under the Dedicated Gas Tax Funds for Public Transportation Program (the “Program”). Under the Program, the Province of Ontario provides two cents out of the provincial gas tax to municipalities to improve Ontario’s transportation network and support economic development in communities for public transportation expenditures. The Ministry intends to provide dedicated gas tax funds to the Municipality in accordance with the terms and conditions set out in this Letter of Agreement and the enclosed Dedicated Gas Tax Funds for Public Transportation Program 2021-22 Guidelines and Requirements (the “guidelines and requirements”). In consideration of the mutual covenants and agreements contained in this Letter of Agreement and the guidelines and requirements, which the Municipality has reviewed and understands and are hereby incorporated by reference, and other good and valuable consideration, the receipt and sufficiency of which are expressly acknowledged, the Ministry and the Municipality agree as follows: To support local public transportation services in the Municipality, the Ministry agrees to provide funding to the Municipality under the Program to a maximum amount of up to $102,407 ("the “Maximum Funds”) in accordance with, and subject to, the terms and conditions set out in this Letter of Agreement and, for greater clarity, the guidelines and requirements. 1. Subject to Section 1, the Ministry will, upon receipt of a fully signed copy of this Letter of Agreement and a copy of the authorizing municipal by-law(s) and, if applicable, resolution(s) for the Municipality to enter into this Letter of Agreement, provide the Municipality with $76,805; and any remaining payment(s) will be provided thereafter. 2. Page 1 of 3 Page 266 of 300 If another municipality authorizes the Municipality to provide local public transportation services on its behalf and authorizes the Municipality to request and receive dedicated gas tax funds for those services also on its behalf, the Municipality will in the by-law(s) and, if applicable, resolution(s) described in section 2 confirm that the Municipality has the authority to provide those services and request and receive those funds. 3. The Municipality agrees that any amount payable under this Letter of Agreement may be subject, at the Ministry’s sole discretion, to any other adjustments as set out in the guidelines and requirements. 4. The Municipality will deposit the funds received under this Letter of Agreement in a dedicated gas tax funds reserve account, and use such funds and any related interest only in accordance with the guidelines and requirements. 5. The Municipality will adhere to the reporting and accountability measures set out in the guidelines and requirements, and will provide all requested documents to the Ministry. 6. The Municipality agrees that the funding provided to the Municipality pursuant to this Letter of Agreement represents the full extent of the financial contribution from the Ministry and the Province of Ontario under the Program for the 2021-22 Program year. 7. The Ministry may terminate this Letter of Agreement at any time, without liability, penalty or costs upon giving at least thirty (30) days written notice to the Municipality. If the Ministry terminates this Letter of Agreement, the Ministry may take one or more of the following actions; (a) cancel all further payments of dedicated gas tax funds; (b) demand the payment of any dedicated gas tax funds remaining in the possession or under the control of the Municipality; and (c) determine the reasonable costs for the Municipality to terminate any binding agreement(s) for the acquisition of eligible public transportation services acquired, or to be acquired, with dedicated gas tax funds provided under this Letter of Agreement, and do either or both of the following: (i) permit the Municipality to offset such costs against the amount the Municipality owes pursuant to paragraph 8(b); and (ii) subject to section 1, provide the Municipality with funding to cover, in whole or in part, such costs. The funding may be provided only if there is an appropriation for this purpose, and in no event will the funding result in the Maximum Funding exceeding the amount specified under Section 1. 8. Any provisions which by their nature are intended to survive the termination or expiration of this Letter of Agreement including, without limitation, those related to disposition, accountability, records, audit, inspection, reporting, communication, liability, indemnity, and rights and remedies will survive its termination or expiration. 9. This Letter of Agreement may only be amended by a written agreement duly executed by the Ministry and the Municipality. 10. The Municipality agrees that it will not assign any of its rights or obligations, or both, under this Letter of Agreement. 11. The invalidity or unenforceability of any provision of this Letter of Agreement will not affect the validity or enforceability of any other provision of this Letter of Agreement. Any invalid or unenforceable provision will be deemed to be severed. 12. Page 2 of 3 Page 267 of 300 13. The term of this Letter of Agreement will commence on the date of the last signature of this Letter of Agreement. 14. The Municipality hereby consents to the execution by the Ministry of this Letter of Agreement by means of an electronic signature. If the Municipality is satisfied with and accepts the terms and conditions of this Letter of Agreement, please print it, secure the required signatures for it. and then deliver a fully signed copy, in pdf format, to the Ministry at the email account set out below. Subject to the Province’s prior written consent, including any terms and conditions the Ministry may attach to the consent, the Municipality may execute and deliver the Letter of Agreement to the Ministry electronically. In addition, all program documents are also to be sent to the following email account: MTO-PGT@ontarlo.ca Sincerely Caroline Mulroney Minister of Transportation I have read and understand the terms and conditions of this Letter of Agreement, as set out above, and, by signing below, I am signifying the Municipality’s consent to be bound by these terms and conditions. Municipality Date Name (print); Title (head of council or authorized delegate); have authority to bind the Municipality. Date:Name (print): Title (clerk or authorized delegate); I have authority to bind the Municipality. Page 3 of 3 Stephan Molnar Mayor Michelle Smibert Clerk March 14, 2022 March 14, 2022 Page 268 of 300 THE CORPORATION OF THE TOWN OF TILLSONBURG BY-LAW 2022-___ A by-law to enter into an airport hanger land lease with 1467246 Ontario Inc. for TaxiwayG2, Hanger G2-8. WHEREAS the Corporation of the Town of Tillsonburg is desirous of entering into an airport hanger lease agreement with 1467246 Ontario Inc. for TaxiwayG2, Hanger G2-8 at the Tillsonburg Airport; BE IT THEREFORE ENACTED by the Council of the Corporation of the Town of Tillsonburg as follows: 1. That the land lease agreement attached hereto forms part of this by-law; 2. The Mayor and the Clerk are authorized and directed to execute the attached lease agreement on behalf of the Corporation of the Town of Tillsonburg. 3. That this By-Law shall come into force and take effect on the date it is passed. READ A FIRST AND SECOND TIME THIS 14th DAY OF MARCH, 2022. READ A THIRD AND FINAL TIME AND PASSED THIS 14th DAY OF MARCH, 2022. _______________________________ MAYOR – Stephen Molnar _______________________________ CLERK – Michelle Smibert Page 269 of 300 Landlord’s Initials __________ Tenant’s Initials __________ TILLSONBURG AIRPORT HANGAR LEASE This Lease is made this 14 day of March 2022 (the “Effective Date”). B E T W E E N THE CORPORATION OF THE TOWN OF TILLSONBURG (the “Landlord”) - and – 1467246 Ontario Inc 244779 Milldale Rd, Otterville, Ont, N0J1R0 Attention: Geoff Lee (the “Tenant”) WHEREAS the Landlord owns all and singular that certain parcel or tract of land and premises situated, lying and being in the Township of South West Oxford in the County of Oxford, being compromised of: PT LT 3-4 CON 7 DEREHAM; LT 5-6 CON 7 DEREHAM; PT LT 7 CON 7 DEREHAM PT 1, 2, 3, 4 & 5, 41R2877, PT 2 & 3, 41R2714, PT 1, 2 & 3, 41R4343, PT 1, 2, 3 & 4, 41R4545; S/T 406551; SOUTH-WEST OXFORD; PIN: 00016-0089 (LT); LRO #41; municipal address being 244411 Airport Road, Tillsonburg, ON N4G 4H1; referred to herein as the “Property”, the “Airport” or the “Tillsonburg Airport” upon which is located the Tillsonburg Airport which is owned and operated by the Landlord. In consideration of the covenants, agreements, warranties and payments herein set forth and provided for, the sum of two dollars ($2.00) paid by each party to the other and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto respectively covenant and agree as follows: 1. LEASED PREMISES (1) The Leased Premises shall consist of a portion of the Tillsonburg Airport identified as Hangar G2-8 on the plan attached as Schedule “A”, being the area upon which the Tenant’s airplane hangar shall be located plus one (1) metre of land extended beyond the exterior perimeter of the Tenant’s airplane hangar building (the “Leased Premises”). (2) Notwithstanding the above, the Landlord reserves the right to assign an alternate lot to the Tenant on thirty (30) days’ written notice at any time prior to the commencement of construction of the Tenant’s hangar. (3) The Landlord covenants and agrees to the construction by the Tenant of an airplane hangar on the Leased Premises being a Hangar, (the “Hangar”) subject to the provisions of Schedule “B”. The Tenant shall complete the construction of the Hangar at its sole cost and expense. (4) The Landlord covenants and agrees that the Hangar on the Leased Premises is not owned by the Landlord but is owned by the Tenant. 2. GRANT OF LEASE (1) The Landlord leases the Leased Premises to the Tenant: (a) at the Rent set forth in Section 3; (b) for the Term set forth in Section 4; and (c) subject to the conditions and in accordance with the covenants, obligations and agreements herein including schedules. (2) The Landlord covenants that it has the right to grant the leasehold interest in the Leased Premises free from encumbrances except as disclosed on title. 3. RENT (1) Rent means the amounts payable by the Tenant to the Landlord pursuant to this Section and includes Additional Rent. (2) The Tenant covenants to pay to the Landlord, during the Term of this Lease rent as follows (the “Base Rent”): for every year of the Term, the total sum of $798.56 per annum (based upon $0.31 per square foot of Hangar building area) plus H.S.T., and any other applicable Page 270 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 2 services tax which may accrue on account of the Landlord collecting rent, payable yearly in advance. Base Rent shall commence on the first day of the Term. If the first day of the Term is not January 1st then Base Rent for the first year of the term shall be prorated until December 31 of the initial year. Base Rent shall then be due on 1st day of the year commencing on January 1st, 2023 and every 1st day of January thereafter. The Parties further agree that the Landlord may, in their sole and absolute discretion, increase the Base Rent annually in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. If the square footage of the Hangar on the Leased Premises expands then the Base Rent shall accordingly increase in proportion to the additional square footage. (3) The Tenant further covenants to pay all other sums required by this Lease to be paid by it and agrees that all amounts payable by the Tenant to the Landlord or to any other party pursuant to the provisions of this Lease shall be deemed to be additional rent (“Additional Rent”) whether or not specifically designated as such in this Lease. (4) The Landlord and the Tenant agree that it is their mutual intention that this Lease shall be a completely carefree net lease for the Landlord and that the Landlord shall not, during the Term of this Lease, be required to make any payments in respect the Leased Premises other than charges of a kind personal to the Landlord (such as income and estate taxes and mortgage payments) and to effect the said intention of the parties the Tenant promises: (a) to pay as Additional Rent: business taxes, real estate taxes and licenses if applicable; (b) to pay all annual fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended, as Additional Rent for such expenses incurred by the Landlord for the maintenance and servicing of the Airport; and, (c) to pay the Landlord a one-time capital recovery charge, based on actuals, for the Landlord to construct the associated hangar apron, if applicable; and, (d) to pay for or provide servicing and maintaining the Leased Premises and the Hangar and shall include the following: (i) all utilities and services including, but not limited to, electricity, water, sewage, natural gas and propane. The Tenant acknowledges that connection fees for utilities and services are entirely at the Tenant’s cost. Further, the Tenant acknowledges that nothing in this Lease, including in this article, is a warranty, covenant or representation by the Landlord to provide connections, utilities or services to the Leased Premises or that the services or utilities can be extended to the Leased Premises; (ii) snow removal and landscaping on the Leased Premises including cutting the grass and weed control of the Leased Premises including the one (1) metre area around the perimeter of the Hangar; (iii) all repair, service and maintenance to the Hangar including reasonable wear and tear; and, (iv) to pay airport infrastructure fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. (5) The Tenant hereby agrees to indemnify and protect the Landlord from any liability accruing to the Landlord in respect of the expenses payable by the Tenant as provided for herein. (i) The Tenant on behalf of itself/himself/herself/themselves, its/his/her/their heirs, executors, administrators and assigns, including its/his/her/their successors in title, hereby covenants and agrees to indemnify and save harmless the Landlord from all actions, cause of actions, suits, claims, demands, damages, losses, costs, charges and expenses of every nature and kind whatsoever by whomsoever make brought or prosecuted, including legal fees, which the Landlord may incur or have to pay, which may arise either directly or indirectly by reason of any activity, actions, performance, negligence or non-performance of the Tenant, its employees, servants, agents, contractors, subcontractors, architect, landscape architect, engineer, surveyor, planner, consultant, project manager or any other person the Tenant is responsible for at law during the duration of this Agreement; in executing the Works under this Agreement; by reason of installation of any Works required under this Agreement; by the failure of the Tenant to complete the installation of the Works required under this Agreement; because of or on account of the ownership, construction, use existence, or maintenance of the property described in the Agreement; by the exercise of the Tenant’s powers under this Agreement; the construction, maintenance or the improper or inadequate construction, installation and/or maintenance of the Works; any act or omission of said parties while undertaking the Works; or by reason of the neglect of the Tenant or its employees, servants, agents, contractors, subcontractors or others for whom the Tenant is responsible at law. (ii) Without limiting the generality of the foregoing, the Tenant agrees to indemnify and save harmless the Landlord for any issues related to the alteration of any grade or existing level construction, the maintenance or repair of any taxiway within the Airport, or by reason of the failure, neglect or omission of the Tenant Page 271 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 3 to do anything agreed to be done pursuant to this Agreement or by reason of any act or omission of the Tenant, including failure of the Tenant to comply with the Construction Act. (6) Additional Rent shall be payable yearly in advance on the same dates stipulated for payment of Base Rent in Section 3 (2). (7) All payments to be made by the Tenant pursuant to this Lease are to be in Canadian funds by bank draft, money order or cheque payable to the Landlord and shall be delivered to the Landlord at the Landlord’s address for service set out in Section 17 or to such other place as the Landlord may from time to time direct in writing. (8) All Rent in arrears and all sums paid by the Landlord for expenses incurred which should have been paid by the Tenant shall bear interest from the date payment was due, or made, or expense incurred at a rate per annum equal to the prime commercial lending rate of the Landlord’s bank plus two (2) per cent. (9) The Tenant acknowledges and agrees that the payments of Rent and Additional Rent provided for in this Lease shall be made without any deduction for any reason whatsoever unless expressly allowed by the terms of this Lease or agreed to by the Landlord in writing and no partial payment by the Tenant which is accepted by the Landlord shall be considered as other than a partial payment on account of Rent owing and shall not prejudice the Landlord’s right to recover any Rent owing. 4. TERMS AND POSSESSION (1) The Tenant shall have possession of the Leased Premises for a period of twenty years, ten months (the “Term”), commencing on the 14 day of March 2022 and ending on the 1st day of January, 2043. (2) The Tenant shall pay any and all connection costs for hydro, gas, water, heating, air- conditioning and for all other services and utilities as may be provided to the Leased Premises. The Tenant shall arrange with the local authority for connection of gas, electricity and water in the name of the Tenant. Nothing in this paragraph or lease is a warranty or representation by the Landlord that any utilities or services are extended to the Leased Premises or can be extended to the Leased Premises. (3) Subject to the Landlord’s rights under this Lease, and as long as the Tenant is in good standing, the Landlord covenants that the Tenant shall have quiet enjoyment of the Leased Premises during the Term of this Lease without any interruption or disturbance from the Landlord or any other person or persons lawfully claiming through the Landlord. 5. ABATEMENT OF RENT DURING CONSTRUCTION (1) So long as the Lease has been fully executed, the Tenant has provided the Landlord with proof of the Tenants insurance, and the Tenant has paid the first and last month’s Rent to be held as a deposit, the Landlord shall provide the Tenant with possession of the Leased Premises for a period of up to six (6) months commencing on the Effective Date for the purposes of constructing the Hangar on the Leased Premises. All terms of the Lease shall be applicable from the Effective Date save and except for the payment of Rent, Base Rent and Additional Rent which shall be payable as of the first day of the month of occupancy of the Hangar or the expiry of the six (6) month construction period whichever occurs first. (2) In the event the Tenant has not completed construction of the Hangar within the six (6) month construction period, the Landlord, in its sole and absolute discretion, may extend the construction period upon written request of the Tenant or terminate this Lease of which then the Tenant’s deposit provided in Section 5 (1) would be forfeited. 6. ASSIGNMENT (1) The Tenant shall not assign this Lease or sublet the whole or any part of the Leased Premises unless they first obtain the consent of the Landlord in writing, which consent shall not unreasonably be withheld and provided the sub-Tenant and/or assignee signs a written acknowledgement that he/she will be bound by the terms, conditions and rules as provided for in this Lease. The Tenant hereby waives its right to the benefit of any present or future Act of the Legislature of Ontario which would permit the Tenant to assign this Lease or sublet the Leased Premises without the Landlord’s consent. (2) The consent of the Landlord to any assignment or subletting shall not operate as a waiver of the necessity for consent to any subsequent assignment or subletting. (3) Any consent given by the Landlord to any assignment or other disposition of the Tenant’s interest in this Lease or in the Leased Premises shall not relieve the Tenant from its obligations under this lease, including the obligation to pay Rent, Base Rent and Additional Rent as provided for herein. (4) If all or more than 50% of the shares in the Tenant should be sold, assigned or transferred Page 272 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 4 in any manner to a person other than the Tenant, then such transferee shall be bound by the terms and conditions of this Lease. 7. USE (1) During the Term of this Lease the Leased Premises shall not be used for any purpose other than as an aircraft hangar for the storage, repair and operation of airplanes, without the express consent of the Landlord given in writing. The Tenant shall not construct a new hangar or any other building on the Leased Premises except in accordance to the terms of this Lease. (2) The Tenant shall not do or permit to be done at the Leased Premises anything which may: (a) contravene any Airport use, standards, or tenant policy as established by the Landlord from time to time; (b) cause damage to the Leased Premises; (c) cause injury or annoyance to occupants of neighbouring premises; (d) make void or voidable any insurance upon the Leased Premises; (e) constitute a breach of any by-law, status, order or regulation of any municipal, provincial or other competent authority relating to the Tillsonburg Airport, the Leased Premises including any septic bed or other property, equipment or appurtenances; and, (f) create an environmental hazard. The Tenant shall not store, allowed to be stored or do anything that creates hazardous waste or toxic material as defined by the Environmental Protection Act or any related or successor legislation. If an order is made by any level of government, including all agencies, crown corporations, municipal bodies, or a court is made as a result of the Tenant’s, or its servants, directors, employees, invitees, customers or agents, actions or inaction under this Article or Article 7(2)(e) above or as a result of the septic bed system used by the Tenant then the Tenant shall satisfy the terms of such order including, but not limited to, paying all costs of the work required and shall indemnify and save the Landlord harmless from any costs, including legal costs, if the Landlord suffers any damages or pays any costs associated with such order. (3) The Tenant shall: (a) not interfere in the use of the Airport or any other use of the Property. The Tenant acknowledges that there are other uses of the Property and it shall not interfere in any other use of the Property. The Tenant further acknowledges that there are other Tenants and users of the Airport and it shall not unreasonably interfere in the use or operation of the Airport in any manner nor shall it do, or allow to be done by any of its invitees, customers, employees or agents, anything that would cause or constitute a nuisance, safety violation or hazard to any other Tenant or any user of the Airport who are acting reasonably; (b) comply with all federal and provincial transportation guidelines, regulations, rules, by-laws, statutes, directives and any other such matter that governs the flight, use or operation of aircraft; (c) not block or obstruct the taxiways or runway and permit the ingress and egress to adjacent hangars, aprons and parking areas; (d) not conduct any major repairs to any motor vehicle of any kind other than an aircraft or any vehicle or machinery ancillary to or connected with aircraft; (e) not perform aircraft repair or maintenance outside of the Leased Premises; (f) not start any aircraft in the Hangar; (g) not store any items on the Leased Premises, surrounding Property or in the Hangar other than aircraft and related aircraft items except as specifically permitted in this agreement; (h) not store any flammable products inside the Hangar or on the Leased Premises with the exception of fuel or necessary aircraft related products; (i) notify the Landlord of any public activities and/or events no less than thirty (30) days before such activity and/or event with approval by the Landlord, in its sole and absolute discretion and such approval not to be unreasonably withheld; (j) comply with all rules and regulations of the Airport and ensure the compliance of all the Tenant’s contractors, employees, agents, customers and invitees; and, (k) provide proof of documentation showing current and proper insurance coverage of any aircraft stored inside the Hangar. (4) The Tenant covenants and agrees that the Landlord may require the adjustment in the Airport leases and as such may demand the Tenant move the Hangar and the location of the Leased Premises. The Landlord shall compensate the Tenant for any expenses in moving the Hangar as agreed between the Parties. (5) The Tenant shall be permitted to construct and maintain one (1) aircraft hangar (the “Works”) on the Leased Premises as follows: (a) the dimensions of the Hangar shall be 46 feet by 56 feet for a total floor area of 2576 square feet; (b) the style of the Hangar shall be either a pole barn style building or a metal frame Page 273 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 5 building; (c) the siding, siding colour, roof colour, hanger number, and height of the building will be maintained in accordance with current Airport standards as approved by the Landlord; (d) the hangar apron shall be constructed of a hard surface (i.e. asphalt or concrete) with a minimum 300mm (12”) structural sub-base to the satisfaction of the Landlord; (e) any construction or renovation shall comply with the construction requirements of the Landlord in its sole and absolute discretion including the construction requirements detailed in Schedule “B” to this Lease and all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations; (f) prior to the commencement of construction, the Tenant shall submit, at its sole cost, a site plan and drainage/grading plan which shall include, but not limited to, the information required in this Article 7(5) of this Lease and the proposed floor elevation, which all shall be subject to the approval of the Landlord; (g) the Tenant agrees to maintain the lot grading during and after construction and erection of the Hangar and shall comply with the lot grading and drainage requirements of the Landlord at the sole cost of the Tenant; (h) obtain all necessary permits, as applicable, at the expense of the Tenant; and, (i) the Tenant shall be responsible for and pay the cost of all repair, renovation, and maintenance and nothing in this Lease shall render the Landlord responsible for any such costs. (6) The Landlord acknowledges that it has granted access to the Tenant for the Tenant to maneuver its aircraft from the Hangar to the adjacent taxiway and runway of the Airport. Further, the Landlord hereby grants to the Tenant, its successors and assigns, free and uninterrupted access in, over, upon, across or through the Hangar apron area, defined as 40 feet wide from the front of the Hangar to the adjacent taxiway. The Landlord grants to the Tenant the right to enter upon the Hangar apron area at all times and to pass and re- pass thereon as may be required by the Tenant, and its licensees, successors, assigns, servants, agents, employees and contractors including all necessary vehicles, equipment and machinery, from time to time, for the purposes of installing, maintaining, replacing, and reconstructing a suitable surface treatment to the Hangar apron as approved by the Landlord in its sole and absolute discretion. Any cost of installing, removing, maintaining, replacing and/or reconstructing the Hangar apron shall be at the sole expense of the Tenant without contribution of the Landlord. The Tenant covenants that it shall not conduct such work to the Hangar apron without first obtaining the consent of the Landlord and such consent shall not be unreasonably withheld. The Tenant hereby releases the Landlord from any and every claim which may or might arise out of the proper exercise by the Tenant of any of the rights granted herein. 8. CONSTRUCTION IMPLEMENTATION SCHEDULE (1) The Tenant hereby undertakes to complete the work herein in accordance with the timeframes set out in the Schedule “C” (the “Construction Schedule”). The Tenant shall submit a proposed construction schedule which shall be subject to amendments and approval by the Landlord and attached hereto as Schedule “C”. A variance to the timeframes will only be allowed if approved in writing by the Landlord. Failure to comply may result in the Tenant being in default of this Agreement and the Landlord may seek remedy pursuant to this Agreement. (2) The Landlord approved work shall be carried out by the Tenant in a proper and professional manner so as to do as little damage or disturbance as possible to the Airport lands or the Airport’s infrastructure. The Tenant shall repair and make good all damage and disturbance that may be caused to the Airport lands or the Airport’s infrastructure, to the satisfaction of the Landlord, acting reasonably, at the sole expense of the Tenant. (3) During construction, the works to be carried out by the Tenant, shall be maintained in all respects in a state of good repair by the Tenant, including keeping the site in a sound, neat, safe and clean condition to the satisfaction of the Landlord. If the site is not kept in a state of good repair, upon seven (7) business days written notice to the Tenant (or such shorter time as may be required in the case of an emergency or other urgent matters or as otherwise provided herein), the Landlord shall have the right to do any work necessary to fulfill this condition and all costs incurred by the Landlord shall be recovered from the Tenant and may be recovered as Additional Rent. 9. REPAIR AND MAINTENANCE (1) The Tenant covenants that during the term of this Lease and any renewal thereof, the Tenant shall keep the Leased Premises and Hangar in good condition including all alterations and additions made thereto, and shall, with or without notice, promptly make all needed repairs and all necessary replacements as would a prudent owner. The Tenant shall be responsible for all wear and tear to the Hangar and shall affect all repairs as necessary. Save and accept the Landlord’s, or its agent’s, contractor’s and employee’s negligence or intentional actions, at no time is the Landlord responsible for any repairs or Page 274 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 6 damage to the Hangar or the Leased Premises. (2) The Tenant shall permit the Landlord or a person authorized by the Landlord to enter the Leased Premises including the Hangar to examine the condition thereof and view the state of repair at reasonable times: (a) and if upon such examination repairs are found to be necessary, written notice of the repairs required shall be given to the Tenant by or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice; and, (b) if the Tenant refuses or neglects to keep the Leased Premises including the Hangar in good repair the Landlord may, but shall not be obliged to, make any necessary repairs, and shall be permitted to enter the Leased Premises and Hangar, including by its servants or agents, for the purpose of effecting the repairs without being liable to the Tenant for any loss, damage or inconvenience to the Tenant in connection with the Landlord’s entry and repairs. If the Landlord makes such repairs the Tenant shall pay the cost of them immediately as Additional Rent. (3) Subject to any renewal, upon the expiry of the Term or other determination of this Lease the Tenant agrees to surrender peaceably the Leased Premises to the Landlord in a state of good repair and subject to the conditions contained in this Article 9(3). The Tenant may remove the Hangar provided the Tenant places the Leased Premises back into a similar condition as it was in prior to the construction of the Hangar even if the construction of the Hangar predated this Lease. At any time during the Term, expiry of the Term, if an Act of Default occurs or upon termination of this Lease if the Tenant is in arrears of any rent whatsoever the Tenant agrees that the Landlord shall be permitted to register such lien on the Hangar under the Personal Property Security Act and possession of the Hangar will not be obtained by the Tenant until the lien is paid in full with all accrued interest and legal fees. (4) The Tenant shall immediately give written notice to the Landlord of any substantial damage that occurs to the Leased Premises including the Hangar from any cause. (5) The Tenant hereby agrees that at no time is the Landlord responsible for any damage, including damage to property or personal injury, as a result of the Tenant’s use of the Leased Premises, Airport or Property and the Tenant hereby waives any cause of action in law, equity or by statute as against the Landlord for any loss. The Tenant acknowledges that it shall not institute any claim or make any demand against the Landlord, or anyone that may claim indemnity from the Landlord, for any personal injury or damage to property, including aircraft, as a result of the Tenant’s use (including storage) of the Hangar, Airport or Property. The Tenant acknowledges that the use of the Airport, Hangar or Property is at its own risk. (6) The Tenant hereby forever releases the Landlord from any and all claims in law, equity or by statute as a result of any intentional or negligent acts of any other Tenant and/or user of the Property and/or Airport, or their agents, contractors, invitees, customers or employees that may cause death, personal injury or property loss to the Tenant or its agents, customers, employees, contractors or invitees. 10. ALTERATIONS AND ADDITIONS (1) If the Tenant, during the Term of this Lease or any renewal of the Lease, desires to make any alterations or additions to the Leased Premises, including but not limited to; erecting partitions, attaching equipment, and installing necessary furnishings or additional equipment of the Tenant’s business but not including erecting a new hangar or any other accessory building, the Tenant may do so at his own expense provided that any and all alterations or additions to the Leased Premises made by the Tenant must comply with any requirement of the Landlord including Schedule “B” and all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations. (2) The Tenant shall pay Rent at the rate prescribed in paragraph 3 above based upon the area of the Hangar subsequent to any addition or alteration. (3) The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Leased Premises. (4) No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant, or any other person on the Tenant’s behalf, on any part of the outside of the Hangar unless it is located along the facade of the Hangar’s front and provided it complies with the Landlord’s signage requirements and with all applicable laws, by-laws and regulations and is in good workmanlike manner. No other sign, advertisement or notice shall be erected unless it has been approved in every respect by the Landlord in writing. (5) The Tenant agrees, at its own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered Page 275 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 7 against the Landlord’s property in connection with any additions or alterations to the Leased Premises made by the Tenant or in connection with any other activity of the Tenant. (6) The Tenant shall, at his own expense, if requested by the Landlord, remove any or all additions or improvements made by the Tenant to the Leased Premises during the Term and shall repair all damage caused by the installation or the removal or both. (7) The Tenant shall not bring onto the Leased Premises or any part of the Leased Premises any machinery, equipment or any other thing that might in the opinion of the Landlord, by reason of its hazardous nature, weight, size or use, damage the Leased Premises or the Property. If the Leased Premises or Property are damaged the Tenant shall restore the Leased Premises or Property immediately or pay to the Landlord the cost of restoring the Leased Premises or Property. 11. INSURANCE (1) The Tenant covenants to keep the Landlord indemnified and save harmless the Landlord at all times against all claims, suits, procedures, actions and demands (including but not limited to all legal costs) whatsoever and howsoever arising by any person, entity or corporation whether in respect of damage, loss or death to person or property, arising out of or occasioned by the maintenance, use or occupancy of the Leased Premises, Airport and Property or the subletting or assignment of same or any part thereof. And the Tenant further covenants to indemnify the Landlord with respect to any encumbrance on or damage to the Leased Premises occasioned by or arising from the act, default, or negligence of the Tenant, its officers, agents, servants, employees, contractors, customers, invitees or licensees. The Tenant agrees that the foregoing indemnity shall survive the termination of this Lease notwithstanding any provisions of the Lease to the contrary. (2) The Tenant shall carry insurance in its own name insuring against the risk of damage to the Tenant’s property and the Hangar within the Leased Premises caused by fire or other perils. (3) The Tenant shall carry such general liability and property damage insurance including personal injury and property damage coverage with at least two million ($2,000,000.00) dollars in limits of each occurrence with respect to the Leased Premises and Tenant’s occupation of the Leased Premises. Such insurance policy shall contain no airport site exclusion. (4) All insurance policies in this Section 11 including this Article shall name the Landlord, where applicable, as an insured and loss payee and the policy shall include a cross-liability endorsement. All policies shall be applicable as primary insurance, taking precedence over any other insurance protection owned by the Landlord. The Tenant shall insure that each insurance policy contains a waiver of subrogation rights which the insurer may have against the Landlord and the persons for whom is legally responsible. (5) Upon demand of the Landlord, the Tenant shall provide a copy of any and all policies of insurance including renewals and terms of such policies to the Landlord. If any policy of insurance is canceled the Tenant shall inform the Landlord without delay of such cancellation and shall obtain a replacement policy without delay on the same terms as set out in this Section 11. Under no circumstances shall delivery of and review by the Landlord of any certificate set forth or any insurance policy or any other proof of existence of the insurance coverage release the Tenant of its obligations to take out insurance in strict compliance with the present provisions or constitute a waiver in favour of the Tenant of any of the Landlord's rights. 12. ACTS OF DEFAULT AND LANDLORD’S REMEDIES (1) An Act of Default has occurred when: (a) the Tenant has failed to pay Rent for a period of 45 consecutive days from the date that payment was required to be paid to the Landlord; (b) the Tenant has breached its covenants or failed to perform any of its obligations under this Lease for a period of 45 consecutive days and: (i) the Landlord has given ten (10) days’ notice specifying the nature of the default and the steps required to correct it; and, (ii) the Tenant has failed to correct the default as required by the notice; (c) the Tenant has: (i) become bankrupt or insolvent or made an assignment for the benefit of creditors; (ii) had its property seized or attached in satisfaction of a judgment; (iii) had a receiver appointed; Page 276 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 8 (iv) committed any act or neglected to do anything with the result that a Construction Lien or other encumbrance is registered against the Landlord’s property; or, (v) taken action with a view to dissolution or liquidation; (d) any required insurance policy is cancelled or not renewed by reason of the use or occupation of the Leased Premises, or by reason of non-payment of premiums; (e) the Leased Premises: (i) has become vacant or remain unoccupied for a period of 180 consecutive days. For the purposes of this section the Parties agree that the terms “vacant and “unoccupied” shall mean no use or utilization of the Hangar and/or no storage of necessary tools, implements or equipment in the Hangar; or, (ii) is used by any other person or persons, or for any other purpose than as provided for in this Lease without the written consent of the Landlord; (f) failure to install or remedy faulty work, if, in the opinion of the Landlord the Tenant: i. is not proceeding or causing to be proceeded the works required in connection with this Agreement within thirty (30) days’ of notice given; or ii. is improperly performing the works; or iii. has neglected or abandoned before the completion, or unreasonably delayed the same, so that conditions of this Agreement are being violated or carelessly executed or being carried out in bad faith; or iv. has neglected or refused to renew or again perform such work as may be rejected by the Landlord as defective or unsuitable; or v. has defaulted performance of the terms and conditions of this agreement; then, in any such instance, the Landlord shall promptly notify the Tenant, in writing, of such default or neglect and if such notification be without effect within ten (10) business days after such notice, the Landlord shall thereupon have full authority and power to purchase materials and employ workers and machines for the proper completion of the works at the cost and expense of the Tenant. The cost of such work shall be calculated by the Landlord whose decision shall be final and be paid to the Landlord by the Tenant on demand. Should payment not be received following the issuance of an invoice from the Landlord, the Landlord shall collect same as Additional Rent in addition to any other remedy available to the Landlord. It is further understood and agreed between the parties hereto that such entry upon the Premise shall be as an agent for the Tenant and shall not be deemed, for any purposes whatsoever, as an acceptance of the works by the Landlord. (2) When an Act of Default on the part of the Tenant has occurred: (a) the current year’s Rent together with the next years’ Rent shall become due and payable immediately; and, (b) the Landlord shall have the right to terminate this Lease and to re-enter the Leased Premises and deal with them as it may choose. (3) If, because an Act of Default has occurred, the Landlord exercises its right to terminate this Lease and re-enter the Leased Premises prior to the end of the Term, the Tenant shall nevertheless be liable for payment of Rent and all other amounts payable by the Tenant in accordance with the provisions of the Lease until the Landlord has re-let the Leased Premises or otherwise dealt with the Leased Premises in such manner that the cessation of payments by the Tenant will not result in loss to the Landlord and the Tenant agrees to be liable to the Landlord, until the end of the Term of this Lease for payment of any difference between the amount of Rent hereby agreed to be paid for the Term hereby granted and the Rent any new Tenant pays to the Landlord. (4) If when an Act of Default has occurred, the Landlord chooses not to terminate the Lease and re-enter the Leased Premises, the Landlord shall have the right to take any and all necessary steps to rectify any or all Acts of Default of the Tenant and to charge the costs of such rectification to the Tenant and to recover the costs as Rent. (5) If, when an Act of Default has occurred, the Landlord chooses to waive its right to exercise the remedies available to it under this Lease or at law the waiver shall not constitute condonation of the Act of Default, nor shall the waiver be pleaded as an estoppel against the Landlord to prevent his exercising his remedies with respect to a subsequent Act of Default. No covenant, term, or condition of this Lease shall be deemed to have been waived by the Landlord unless the waiver is in writing and signed by the Landlord. 13. TERMINATION UPON NOTICE AND AT END OF TERM (1) If the Leased Premises and/or Property are subject to an Agreement of Purchase and Sale: Page 277 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 9 (a) The Landlord shall have the right to terminate this Lease, notwithstanding that the Term has not expired, by giving ninety (90) days’ notice (the “Notice”) in writing to the Tenant and, at the Tenant’s option, the Landlord shall pay to the Tenant the fair market value for the Hangar or the Tenant agrees to remove the Hangar and comply with Articles 9(3) and 10(5) of this Lease. Upon expiry of the Notice the Tenant shall provide vacant possession of the Leased Premises provided the Landlord pays to the Tenant a bonus of $500.00. For the purposes of this Article and Articles 13(3) and 13(4) fair market value shall be determined as of the date of the issuing of the Notice. (2) If the Tenant remains in possession of the Leased Premises after termination of this Lease as aforesaid and if the Landlord then accepts Rent for the Leased Premises from the Tenant, it is agreed that such overholding by the Tenant and acceptance of Rent by the Landlord shall create a monthly tenancy only but the tenancy shall remain subject to all the terms and conditions of this Lease except those regarding the Term. The Parties agree that if the Term is not renewed then upon expiry of the Term or if the Tenant is an overholding tenant then either Party may terminate the lease upon sixty (60) days written notice to the other party and the Tenant shall comply with Articles 9(3) and 10(5) of this Lease. (3) Other than a termination of this Lease in accordance with Article 13(1) of this Lease, the Landlord shall, at any time and notwithstanding that the Term has not expired, have the unqualified right to terminate this Lease upon one year’s prior written notification (the “Notice”) if the Leased Premises are required for any reason or purpose of the Landlord in which event the Landlord shall pay to the Tenant the fair market value for the Hangar, if erected by the Tenant, unless the Tenant agrees to remove the Hangar and comply with Articles 6(3) and 7(5) of this Lease, and the Tenant shall provide such vacant possession upon the expiry of the Notice provided the Landlord pays to the Tenant a bonus of $500.00. (4) The Parties agree that it is their mutual intention that at the end of the Term of this Lease the lease shall be renewed upon such conditions and terms as agreed between the Parties. The Parties further agree that although it is their mutual intention to renew the lease nevertheless either party may decide not to renew the lease for any reason. The Parties acknowledge that upon such renewal all terms and conditions shall be negotiated between the Parties. If the Parties do not renew this Lease then the Parties agree that the Landlord shall be granted the Right of First Refusal to purchase the Hangar (the “Option”). The Tenant covenants that it will not sell the Hangar, or any part thereof, to any person, firm or corporation, without first providing the Landlord to exercise its Option as set out in the terms of this paragraph. Upon the Tenant receiving a bona fide offer in writing (the “Third Party Offer”) the Tenant shall deliver to the Airport Office, 244411 Airport Road, Township of South-West Oxford, Ontario, a copy of the Third Party Offer and the Landlord shall have twenty business days (the “Notice Period”) from the date of receipt of the Third Party Offer to exercise the Option to match the Third Party Offer. If the Landlord exercises its option in the Notice Period then it must inform the Tenant at the Property in writing that it will purchase the Tenant’s interest in the Hangar on the same terms and conditions, or more favourable terms to the Tenant at the Landlord’s discretion, as contained in the Third Party Offer (the “Landlord’s Offer”). If the Landlord exercises its Option in the Notice Period then the Tenant must sell the Hangar to the Landlord upon the terms and conditions as contained in the Landlord’s Offer. If the Landlord does not exercise its option in the Notice Period then the Tenant shall be at liberty to accept the Third Party Offer provided that there are no modifications to the Third Party Offer. If any modifications are made to the Third Party Offer then the Landlord shall be permitted to exercise its option pursuant to the terms of this paragraph. For the purpose of this paragraph, if the Tenant is a corporation, the word “sell”, in addition to its ordinary meaning, shall be deemed to mean and include a sale or disposition of the corporate shareholding of the Tenant by the person or persons who, at the date of the commencement of the lease holds or hold a majority of the corporate shares. Subject to the conditions contained in Article 4 of this Agreement, the Parties agree that prior to the expiry of this Lease if the Tenant seeks to assign this Lease to a third party then the Landlord will agree to examine a proposal to extend the term of this Lease however nothing in this paragraph shall require the Landlord to accept any amendment of the term or new term. 14. ACKNOWLEDGMENT BY TENANT (1) The Tenant agrees that it will at any time or times during the Term, upon being given at least forty-eight (48) hours prior written notice, execute and deliver to the Landlord a statement in writing certifying: (a) that this Lease is unmodified and is in full force and effect (or if modified stating the modifications and confirming that the Lease is in full force and effect as modified); (b) the amount of Rent being paid; (c) the dates to which Rent has been paid; (d) other charges payable under this Lease which have been paid; (e) particulars of any prepayment of Rent or security deposits; and, (f) particulars of any sub tenancies. Page 278 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 10 15. SUBORDINATION AND POSTPONEMENT (1) This Lease and all the rights of the Tenant under this Lease are subject and subordinate to any and all charges against the land, buildings or improvements of which the Leased Premises form part, whether the charge is in the nature of a mortgage, trust deed, lien or any other form of charge arising from the financing or re-financing, including extensions or renewals, of the Landlord’s interest in the Property. (2) Upon the request of the Landlord the Tenant will execute any form required to subordinate this Lease and the Tenant’s rights to any such charge, and will, if required, attorn to the holder of the charge. (3) No subordination by the Tenant shall have the effect of permitting the holder of any charge to disturb the occupation and possession of the Leased Premises by the Tenant as long as the Tenant performs his obligations under this Lease. 16. RULES AND REGULATIONS The Tenant agrees on behalf of itself and all persons entering the Leased Premises with the Tenant’s authority or permission to abide by such reasonable rules, standards and regulations of the Airport and/or Property which shall form part of this Lease and as the Landlord may make and/or amend from time to time. 17. NOTICE (1) Any notice required or permitted to be given by one party to the other pursuant to the terms of this Lease may be given To the Landlord at: Tillsonburg Regional Airport Attn: Airport Administrator 244411 Airport Rd South-West Oxford, ON, N4G 4H1 airportattendants@tillsonburg.ca To the Tenant at the Leased Premises or at: 1467246 Ontario Inc 244779 Milldale Rd, Otterville, Ont, N0J1R0 Email: geoff@tailwindaviation.ca Attention: Geoff Lee (2) The above addresses may be changed at any time by giving ten (10) days written notice. (3) Any notice given by one party to the other in accordance with the provisions of this Lease shall be deemed conclusively to have been received on the date delivered if the notice is served personally or seventy-two (72) hours after mailing if the notice is mailed. 18. REGISTRATION The Tenant shall not at any time register notice of or a copy of this Lease on title to the Property of which the Leased Premises form part without consent of the Landlord. 19. INTERPRETATION (1) The words importing the singular number only shall include the plural, and vice versa, and words importing the masculine, feminine or neutral gender shall include the other genders, and words importing persons shall include firms and corporations and vice versa. (2) Unless the context otherwise requires, the word “Landlord” and the word “Tenant” wherever used herein shall be construed to include the executors, administrators, successors and assigns of the Landlord and Tenant, respectively. (3) When there are two or more Tenants bound by the same covenants herein contained, their obligations shall be joint and several. 20. MISCELLANEOUS (1) Unless otherwise stipulated, parking, if applicable, in the common parking area shall be in common and unreserved. (2) If a dispute should arise between the Parties in the interpretation of this Agreement then both parties agree that such dispute shall be referred to binding arbitration and be bound by the result of such arbitration. The terms, form and procedure of the arbitration shall be in accordance with the Arbitration Act or any successor legislation. The parties further Page 279 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 11 agree that the arbitrator shall be jointly chosen and the arbitrator shall have the ability to award costs of the arbitration. This clause shall not apply if the Tenant is in default under the terms of the Lease which include but are not limited to: (a) its obligations to pay Rent, Base Rent and/or Additional Rent; (b) non-repair or maintenance of the Leased Premises; (c) subleased the Leased Premises without the authorization of the Landlord, acting reasonably; (d) changed its use of the Leased Premises; or, (e) used the Leased Premises in any manner contrary to Article 7. (3) In the event that any clause herein should be unenforceable or be declared invalid for any reason whatsoever, such enforce ability or invalidity shall not affect the enforce ability or validity of the remaining portions of the covenants and such unenforceable or invalid portions shall be severable from the remainder of this Lease. (4) This Lease shall be construed and enforced in accordance with the laws of the Province of Ontario. Any proceeding shall be brought at the City of Woodstock in the County of Oxford, Ontario. (5) The Tenant hereby agrees that it has had an opportunity to review the terms of this Lease and seek independent legal advice. (6) Should any provision of this Lease require judicial interpretation or arbitration, it is agreed that the court or arbitrator interpreting or construing the same shall not apply a presumption that the terms thereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent prepared the same, it be agreed that both parties have participated in the preparation hereof. (7) This Lease and it’s schedules constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the Parties in connection with the subject matter hereof, except as specifically set forth herein. No supplement, modification, waiver or termination of this Lease shall be binding unless executed in writing by the Parties. (8) The Tenant agrees that it has not relied upon any representation, promise or warranty of the Landlord with respect to the condition of the Leased Premises, Hangar or any representation or promise of the Landlord to repair, renovate or otherwise alter the Leased Premises in any manner prior to or after commencement of the Term. The Parties agree that the Leased Premises are being offered to the Tenant in an “as is” condition. The Tenant shall not call on or demand the Landlord to perform any repairs or renovations prior to or after it obtains possession. The Tenant acknowledges that it has performed its own due diligence in establishing the state of repair of the Leased Premises including the Hangar. In Witness of the foregoing covenants the Landlord and the Tenant have executed this Lease. __________________________________ Landlord Stephen Molnar, Mayor The Corporation of the Town of Tillsonburg __________________________________ Landlord Michelle Smibert, Clerk The Corporation of the Town of Tillsonburg We have authority to bind the Corporation. ________________________________ __________________________________ Witness Tenant 1467246 Ontario Inc Per: Geoff Lee I have authority to bind the corporation. Page 280 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 12 Schedule “A” THE “LEASED PREMISES” HANGAR G2-8 Page 281 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 13 SCHEDULE “B” CONSTRUCTION REQUIREMENTS 1. The Tenant shall construct an airplane hangar building with approximate dimensions of 46 feet wide by 56 feet deep compromising a floor area of 2576 square feet. 2. The Tenant covenants and agrees, notwithstanding any other statute, regulation or provision regarding the federal government’s authority to regulate the aeronautics industry, to: (a) obtain from the Landlord an Airport Development Permit prior to construction; (b) to pay to the Landlord a flat fee of $620 to administer the Airport Development Permit; (c) to construct the airplane hangar, and any other building that may be permitted, to the standard of the Ontario Building Code, O. Reg. 332/12 as amended or replaced from time to time (the “OBC”) and to the satisfaction of the Landlord in its sole and absolute discretion, and; (d) to ensure all persons retained by the Tenant have appropriate health and safety policies, insurance and WSIB coverage. 3. The Tenant shall provide to the Landlord the following in order to obtain an Airport Development Permit and approval for use of the Leased Premises and hangar thereon: (a) prior to construction, submission of: 1. all applicable fees; 2. 2 copies of a site plan showing the proposed location of the hangar, dimensions to the adjacent buildings and dimensions of the hangar apron (entrance); 3. 2 copies of construction drawings (foundation plan, floor plan (including finish floor elevation), building elevations, diaphragm/truss bracing, anchorage, construction details/finishes, etc.) stamped by a professional engineer; 4. 2 copies of the truss drawings stamped by a professional engineer; and 5. Commitment to General Reviews form completed by both the building owner and professional engineer; (b) prior to occupancy and acceptance: 1. inspection of the construction and acceptance of same by the Landlord in in respect of compliance with the OBC, the terms of this Airport Lease and all policies and rules regulating the Tillsonburg Airport; and 2. submission of all site reports (footing inspection, framing inspection, occupancy inspection) and an occupancy report from the professional engineer; and, (c) final approval: 1. provide a final report (verifying outstanding items not completed at occupancy have been completed/corrected) from the professional engineer if applicable. 4. The parties covenant and agree that the Tenant is not required to obtain a building permit from the Township of Southwest Oxford for construction of buildings on the Tillsonburg Airport. 5. The Tenant covenants and agrees that failure to comply with the provisions of this schedule shall be an event of default of this Lease and in the absence of remedying such default, shall permit the Landlord to terminate this Lease and seek any and all other recourse against the tenant in such instance. Page 282 of 300 Landlord’s Initials __________ Tenant’s Initials __________ 14 SCHEDULE “C” CONSTRUCTION SCHEDULE Provided by the Tenant prior to execution of the lease agreement and approved by the Landlord. Preliminary Construction Schedule: Start of Construction TBD End of Construction Prior to Winter 2022 Note: Tenant has expressed that a detailed construction schedule will be provided once contractor and Tenant have finalized. Page 283 of 300 THE CORPORATION OF THE TOWN OF TILLSONBURG BY-LAW 2022-___ A by-law to enter into an airport hanger land lease with Civilogistics for Taxiway G1 Lot 6, Hanger G2-9. WHEREAS the Corporation of the Town of Tillsonburg is desirous of entering into an airport hanger lease agreement with Civilogistics for Taxiway G1 Lot 6, Hanger G2-9 at the Tillsonburg Airport; BE IT THEREFORE ENACTED by the Council of the Corporation of the Town of Tillsonburg as follows: 1. That the land lease agreement attached hereto forms part of this by-law; 2. The Mayor and the Clerk are authorized and directed to execute the attached lease agreement on behalf of the Corporation of the Town of Tillsonburg. 3. That by-law 2021-065 be repealed in its entirety; 4. And that this By-Law shall come into force and take effect on the date it is passed. READ A FIRST AND SECOND TIME THIS 14th DAY OF MARCH, 2022. READ A THIRD AND FINAL TIME AND PASSED THIS 14th DAY OF MARCH, 2022. _______________________________ MAYOR – Stephen Molnar _______________________________ CLERK – Michelle Smibert Page 284 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ (WKH ³LaQGORUG´) TILLSONBURG AIRPORT HANGAR LEASE This Lease is made this 14 day of March, 2022 (WKH ³EIIHFWLYH DaWH´). B E T W E E N THE CORPORATION OF THE TOWN OF TILLSONBURG -and ± Civilogistics Incorporated 93 Windham Road #3 Norwich Ontario N0J 1P0 Attention: Emily Crombez and Nathan Bain (WKH ³Tenant´) WHEREAS the Landlord owns all and singular that certain parcel or tract of land and premises situated, lying and being in the Township of South West Oxford in the County of Oxford, being compromised of: PT LT 3-4 CON 7 DEREHAM; LT 5-6 CON 7 DEREHAM; PT LT 7 CON 7 DEREHAM PT 1, 2, 3, 4 & 5, 41R2877, PT 2 & 3, 41R2714, PT 1, 2 & 3, 41R4343, PT 1, 2, 3 & 4, 41R4545; S/T 406551; SOUTH-WEST OXFORD; PIN: 00016-0089 (LT); LRO #41; municipal address being 244411 Airport Road, Tillsonburg, ON N4G 4H1; referred to herein as WKH ³PURSHUW\´, WKH ³ALUSRUW´ RU WKH ³TLOOVRQbXUJ ALUSRUW´ upon which is located the Tillsonburg Airport which is owned and operated by the Landlord. In consideration of the covenants, agreements, warranties and payments herein set forth and provided for, the sum of two dollars ($2.00) paid by each party to the other and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto respectively covenant and agree as follows: 1.LEASED PREMISES (1)The Leased Premises shall consist of a portion of the Tillsonburg Airport identified as Taxiway G2-9 RQ WKH SOaQ aWWaFKHG aV SFKHGXOH ³A´, bHLQJ WKH aUHa XSRQ ZKLFK WKH THQaQW¶V aLUSOaQH KaQJaU VKaOO bH ORFaWHG SOXV RQH (1) PHWUH RI OaQG H[WHQGHG bH\RQG Whe H[WHULRU SHULPHWHU RI WKH THQaQW¶V aLUSOaQH KaQJaU bXLOGLQJ (WKH ³LHaVHG PUHPLVHV´). (2)Notwithstanding the above, the Landlord reserves the right to assign an alternate lot to the THQaQW RQ WKLUW\ (30) Ga\V¶ ZULWWHQ QRWLFH aW aQ\ WLPH SULRU WR WKH commencement of FRQVWUXFWLRQ RI WKH THQaQW¶V KaQJaU. (3)The Landlord covenants and agrees to the construction by the Tenant of an airplane hangar on the Leased Premises being a HaQJaU, (WKH ³HaQJaU´) subject to the provisions RI SFKHGXOH ³B´. TKH THQaQW shall complete the construction of the Hangar at its sole cost and expense. (4)The Landlord covenants and agrees that the Hangar on the Leased Premises is not owned by the Landlord but is owned by the Tenant. 2.GRANT OF LEASE (1)The Landlord leases the Leased Premises to the Tenant: (a)at the Rent set forth in Section 3; (b)for the Term set forth in Section 4; and (c)subject to the conditions and in accordance with the covenants, obligations and agreements herein including schedules. (2)The Landlord covenants that it has the right to grant the leasehold interest in the Leased Premises free from encumbrances except as disclosed on title. 3.RENT (1)Rent means the amounts payable by the Tenant to the Landlord pursuant to this Section and includes Additional Rent. (2)The Tenant covenants to pay to the Landlord, during the Term of this Lease rent as follows (WKH ³BaVH RHQW´): for every year of the Term, the total sum of $798.56 per annum (based Page 285 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 2 upon $0.31 per square foot of Hangar building area) plus H.S.T., and any other applicable services tax which may accrue on account of the Landlord collecting rent, payable yearly in advance. Base Rent shall commence on the first day of the Term. If the first day of the Term is not January 1st then Base Rent for the first year of the term shall be prorated until December 31 of the initial year. Base Rent shall then be due on 1st day of the year commencing on January 1st, 2023 and every 1st day of January thereafter. The Parties further agree that the Landlord may, in their sole and absolute discretion, increase the Base Rent annually in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. If the square footage of the Hangar on the Leased Premises expands then the Base Rent shall accordingly increase in proportion to the additional square footage. (3)The Tenant further covenants to pay all other sums required by this Lease to be paid by it and agrees that all amounts payable by the Tenant to the Landlord or to any other party pursuant to the provisions of this Lease shall be deemed to be additional rent (³AGGLWLRQaO RHQW´) ZKHWKHU RU QRW VSHFLILFaOO\ GHVLJQaWHG aV VXFK LQ WKLV LHaVH. (4)The Landlord and the Tenant agree that it is their mutual intention that this Lease shall be a completely carefree net lease for the Landlord and that the Landlord shall not, during the Term of this Lease, be required to make any payments in respect the Leased Premises other than charges of a kind personal to the Landlord (such as income and estate taxes and mortgage payments) and to effect the said intention of the parties the Tenant promises: (a)to pay as Additional Rent: business taxes, real estate taxes and licenses if applicable; (b)to pay all annual fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended, as Additional Rent for such expenses incurred by the Landlord for the maintenance and servicing of the Airport; and, (c)to pay the Landlord a one-time capital recovery charge, based on actuals, for the Landlord to construct the associated hangar apron, if applicable; and, (d)to pay for or provide servicing and maintaining the Leased Premises and the Hangar and shall include the following: (i)all utilities and services including, but not limited to, electricity, water, sewage, natural gas and propane. The Tenant acknowledges that connection fees for utilities and services are entirely at the Tenant¶V FRVW. Further, the Tenant acknowledges that nothing in this Lease, including in this article, is a warranty, covenant or representation by the Landlord to provide connections, utilities or services to the Leased Premises or that the services or utilities can be extended to the Leased Premises; (ii)snow removal and landscaping on the Leased Premises including cutting the grass and weed control of the Leased Premises including the one (1) metre area around the perimeter of the Hangar; (iii)all repair, service and maintenance to the Hangar including reasonable wear and tear; and, (iv)to pay airport infrastructure fees in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. (5)The Tenant hereby agrees to indemnify and protect the Landlord from any liability accruing to the Landlord in respect of the expenses payable by the Tenant as provided for herein. (i)The Tenant on behalf of itself/himself/herself/themselves, its/his/her/their heirs, executors, administrators and assigns, including its/his/her/their successors in title, hereby covenants and agrees to indemnify and save harmless the Landlord from all actions, cause of actions, suits, claims, demands, damages, losses, costs, charges and expenses of every nature and kind whatsoever by whomsoever make brought or prosecuted, including legal fees, which the Landlord may incur or have to pay, which may arise either directly or indirectly by reason of any activity, actions, performance, negligence or non-performance of the Tenant, its employees, servants, agents, contractors, subcontractors, architect, landscape architect, engineer, surveyor, planner, consultant, project m anager or any other person the Tenant is responsible for at law during the duration of this Agreement; in executing the W ork s under this Agreement; by reason of installation of any Works required under this Agreement; by the failure of the Tenant to complete the installation of the Works required under this Agreement; because of or on account of the ownership, construction, use existence, or maintenance of the property described in the Agreement; by the exercise of the Tenant¶V SRZHUV under this Agreement; the construction, maintenance or the improper or inadequate construction, installation and/or maintenance of the Works; any act or omission of said parties while undertaking the Works; or by reason of the neglect of the Tenant or its employees, servants, agents, contractors, subcontractors or others for whom the Tenant is responsible at law. (ii)Without limiting the generality of the foregoing, the Tenant agrees to indemnify and save harmless the Landlord for any issues related to the alteration of any grade or existing level construction, the maintenance or repair of any taxiway Page 286 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 3 within the Airport, or by reason of the failure, neglect or omission of the Tenant to do anything agreed to be done pursuant to this Agreement or by reason of any act or omission of the Tenant, including failure of the Tenant to comply with the Construction Act. (6)Additional Rent shall be payable yearly in advance on the same dates stipulated for payment of Base Rent in Section 3 (2). (7)All payments to be made by the Tenant pursuant to this Lease are to be in Canadian funds by bank draft, money order or cheque payable to the Landlord and shall be delivered to the Landlord at the Landlord¶V aGGUHVV IRU VHUYLFH VHW RXW LQ SHFWLRQ 17 or to such other place as the Landlord may from time to time direct in writing. (8)All Rent in arrears and all sums paid by the Landlord for expenses incurred which should have been paid by the Tenant shall bear interest from the date payment was due, or made, or expense incurred at a rate per annum equal to the prime commercial lending rate of the Landlord¶V baQN SOXV WZR (2) SHU FHQW. (9)The Tenant acknowledges and agrees that the payments of Rent and Additional Rent provided for in this Lease shall be made without any deduction for any reason whatsoever unless expressly allowed by the terms of this Lease or agreed to by the Landlord in writing and no partial payment by the Tenant which is accepted by the Landlord shall be considered as other than a partial payment on account of Rent o wing and shall not prejudice the Landlord¶V ULJKW WR UHFRYHU aQ\ RHQW RZLQJ. 4.TERMS AND POSSESSION (1)The Tenant shall have possession of the Leased Premises for a period of twenty years, eleven months (WKH ³THUP´), commencing on the 14 day of March, 2022 and ending on the 1st day of January, 2043. (2)The Tenant shall pay any and all connection costs for hydro, gas, water, heating, air- conditioning and for all other services and utilities as may be provided to the Leased Premises. The Tenant shall arrange with the local authority for connection of gas, electricity and water in the name of the Tenant. Nothing in this paragraph or lease is a warranty or representation by the Landlord that any utilities or services are extended to the Leased Premises or can be extended to the Leased Premises. (3)Subject to the Landlord¶V ULJKWV XQGHU WKLV LHaVH, aQG aV ORQJ aV WKH Tenant is in good standing, the Landlord covenants that the Tenant shall have quiet enjoyment of the Leased Premises during the Term of this Lease without any interruption or disturbance from the Landlord or any other person or persons lawfully claiming through the Landlord. 5.ABATEMENT OF RENT DURING CONSTRUCTION (1)So long as the Lease has been fully executed, the Tenant has provided the Landlord with proof of the Tenants insurance, aQG WKH THQaQW KaV SaLG WKH ILUVW aQG OaVW PRQWK¶V RHQW WR be held as a deposit, the Landlord shall provide the Tenant with possession of the Leased Premises for a period of up to six (6) months commencing on the Effective Date for the purposes of constructing the Hangar on the Leased Premises. All terms of the Lease shall be applicable from the Effective Date save and except for the payment of Rent, Base Rent and Additional Rent which shall be payable as of the first day of the month of occupancy of the Hangar or the expiry of the six (6) month construction period whichever occurs first. (2)In the event the Tenant has not completed construction of the Hangar within the six (6) month construction period, the Landlord, in its sole and absolute discretion, may extend the construction period upon written request of the Tenant or terminate this Lease of which WKHQ WKH THQaQW¶V GHSRVLW SURYLGHG LQ SHFWLRQ 5 (1) ZRXOG bH IRUIHLWHG. 6.ASSIGNMENT (1)The Tenant shall not assign this Lease or sublet the whole or any part of the Leased Premises unless they first obtain the consent of the Landlord in writing, which consent shall not unreasonably be withheld and provided the sub-Tenant and/or assignee signs a written acknowledgement that he/she will be bound by the terms, conditions and rules as provided for in this Lease. The Tenant hereby waives its right to the benefit of any present or future Act of the Legislature of Ontario which would permit the Tenant to assign this Lease or sublet the Leased Premises without the Landlord¶V FRQVHQW. (2)The consent of the Landlord to any assignment or subletting shall not operate as a waiver of the necessity for consent to any subsequent assignment or subletting. (3)Any consent given by the Landlord to any assignment or other disposition of the Tenant¶V interest in this Lease or in the Leased Premises shall not relieve the Tenant from its obligations under this lease, including the obligation to pay Rent, Base Rent and Additional Rent as provided for herein. Page 287 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 4 (4)If all or more than 50% of the shares in the Tenant should be sold, assigned or transferred in any manner to a person other than the Tenant, then such transferee shall be bound by the terms and conditions of this Lease. 7.USE (1)During the Term of this Lease the Leased Premises shall not be used for any purpose other than as an aircraft hangar for the storage, repair and operation of airplanes, without the express consent of the Landlord given in writing. The Tenant shall not construct a new hangar or any other building on the Leased Premises except in accordance to the terms of this Lease. (2)The Tenant shall not do or permit to be done at the Leased Premises anything which may: (a)contravene any Airport use, standards, or tenant policy as established by the Landlord from time to time; (b)cause damage to the Leased Premises; (c)cause injury or annoyance to occupants of neighbouring premises; (d)make void or voidable any insurance upon the Leased Premises; (e)constitute a breach of any by-law, status, order or regulation of any municipal, provincial or other competent authority relating to the Tillsonburg Airport, the Leased Premises including any septic bed or other property, equipment or appurtenances; and, (f)create an environmental hazard. The Tenant shall not store, allowed to be stored or do anything that creates hazardous waste or toxic material as defined by the Environmental Protection Act or any related or successor legislation. If an order is made by any level of government, including all agencies, crown corporations, municipal bodies, or a court is made as a result of the Tenant¶V, RU LWV VHUYaQWV, directors, employees, invitees, customers or agents, actions or inaction under this Article or Article 7(2)(e) above or as a result of the septic bed system used by the Tenant then the Tenant shall satisfy the terms of such order including, but not limited to, paying all costs of the work required and shall indemnify and save the Landlord harmless from any costs, including legal costs, if the Landlord suffers any damages or pays any costs associated with such order. (3)The Tenant shall: (a)not interfere in the use of the Airport or any other use of the Property. The Tenant acknowledges that there are other uses of the Property and it shall not interfere in any other use of the Property. The Tenant further acknowledges that there are other Tenants and users of the Airport and it shall not unreasonably interfere in the use or operation of the Airport in any manner nor shall it do, or allow to be done by any of its invitees, customers, employees or agents, anything that would cause or constitute a nuisance, safety violation or hazard to any other Tenant or any user of the Airport who are acting reasonably; (b)comply with all federal and provincial transportation guidelines, regulations, rules, by-laws, statutes, directives and any other such matter that governs the flight, use or operation of aircraft; (c)not block or obstruct the taxiways or runway and permit the ingress and egress to adjacent hangars, aprons and parking areas; (d)not conduct any major repairs to any motor vehicle of any kind other than an aircraft or any vehicle or machinery ancillary to or connected with aircraft; (e)not perform aircraft repair or maintenance outside of the Leased Premises; (f)not start any aircraft in the Hangar; (g)not store any items on the Leased Premises, surrounding Property or in the Hangar other than aircraft and related aircraft items except as specifically permitted in this agreement; (h)not store any flammable products inside the Hangar or on the Leased Premises with the exception of fuel or necessary aircraft related products; (i)notify the Landlord of any public activities and/or events no less than thirty (30) days before such activity and/or event with approval by the Landlord, in its sole and absolute discretion and such approval not to be unreasonably withheld; (j)comply with all rules and regulations of the Airport and ensure the compliance of all the Tenant¶V contractors, employees, agents, customers and invitees; and, (k)provide proof of documentation showing current and proper insurance coverage of any aircraft stored inside the Hangar. (4)The Tenant covenants and agrees that the Landlord may require the adjustment in the Airport leases and as such may demand the Tenant move the Hangar and the location of the Leased Premises. The Landlord shall compensate the Tenant for any expenses in moving the Hangar as agreed between the Parties. (5)The Tenant shall be permitted to construct and maintain one (1) aircraft hangar (the ³WRUNV´) on the Leased Premises as follows: (a)the dimensions of the Hangar shall be 46 feet by 56 feet for a total floor area of 2576 square feet; Page 288 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 5 (b)the style of the Hangar shall be either a pole barn style building or a metal frame building; (c)the siding, siding colour, roof colour, hanger number, and height of the building will be maintained in accordance with current Airport standards as approved by the Landlord; (d)the hangar apron shall be constructed of a hard surface (i.e. asphalt or concrete) with a minimum 300mm (12´) structural sub-base to the satisfaction of the Landlord; (e)any construction or renovation shall comply with the construction requirements of the Landlord in its sole and absolute discretion including the construction UHTXLUHPHQWV GHWaLOHG LQ SFKHGXOH ³B´ to this Lease and all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations; (f)prior to the commencement of construction, the Tenant shall submit, at its sole cost, a site plan and drainage/grading plan which shall include, but not limited to, the information required in this Article 7(5) of this Lease and the proposed floor elevation, which all shall be subject to the approval of the Landlord; (g)the Tenant agrees to maintain the lot grading during and after construction and erection of the Hangar and shall comply with the lot grading and drainage requirements of the Landlord at the sole cost of the Tenant; (h)obtain all necessary permits, as applicable, at the expense of the Tenant; and, (i)the Tenant shall be responsible for and pay the cost of all repair, renovation, and maintenance and nothing in this Lease shall render the Landlord responsible for any such costs. (6)The Landlord acknowledges that it has granted access to the Tenant for the Tenant to maneuver its aircraft from the Hangar to the adjacent taxiway and runway of the Airport. Further, the Landlord hereby grants to the Tenant, its successors and assigns, free and uninterrupted access in, over, upon, across or through the Hangar apron area, defined as 6 metres wide and 26 metres from the front of the Hangar to the adjacent taxiway on each face as required. The Landlord grants to the Tenant the right to enter upon the Hangar apron area at all times and to pass and re-pass thereon as may be required by the Tenant, and its licensees, successors, assigns, servants, agents, employees and contractors including all necessary vehicles, equipment and machinery, from time to time, for the purposes of installing, maintaining, replacing, and reconstructing a suitable surface treatment to the Hangar apron as approved by the Landlord in its sole and absolute discretion. Any cost of installing, removing, maintaining, replacing and/or reconstructing the Hangar apron shall be at the sole expense of the Tenant without contribution of the Landlord. The Tenant covenants that it shall not conduct such work to the Hangar apron without first obtaining the consent of the Landlord and such consent shall not be unreasonably withheld. The Tenant hereby releases the Landlord from any and every claim which may or might arise out of the proper exercise by the Tenant of any of the rights granted herein. 8.CONSTRUCTION IMPLEMENTATION SCHEDULE (1) The Tenant hereby undertakes to complete the work herein in accordance with the WLPHIUaPHV VHW RXW LQ WKH SFKHGXOH ³C´ (WKH ³CRQVWUXFWLRQ SFKHGXOH´). TKH THQaQW VKaOO submit a proposed construction schedule which shall be subject to amendments and approval by the Landlord and attached hereto aV SFKHGXOH ³C´. A variance to the timeframes will only be allowed if approved in writing by the Landlord. Failure to comply may result in the Tenant being in default of this Agreement and the Landlord may seek remedy pursuant to this Agreement. (2) The Landlord approved work shall be carried out by the Tenant in a proper and professional manner so as to do as little damage or disturbance as possible to the Airport lands or the ALUSRUW¶V LQIUaVWUXFWXUH. TKH Tenant shall repair and make good all damage and disturbance that may be caused to the Airport laQGV RU WKH ALUSRUW¶V LQIUaVWUucture, to the satisfaction of the Landlord, acting reasonably, at the sole expense of the Tenant. (3) During construction, the works to be carried out by the Tenant, shall be maintained in all respects in a state of good repair by the Tenant, including keeping the site in a sound, neat, safe and clean condition to the satisfaction of the Landlord. If the site is not kept in a state of good repair, upon seven (7) business days written notice to the Tenant (or such shorter time as may be required in the case of an emergency or other urgent matters or as otherwise provided herein), the Landlord shall have the right to do any work necessary to fulfill this condition and all costs incurred by the Landlord shall be recovered from the Tenant and may be recovered as Additional Rent. 9.REPAIR AND MAINTENANCE (1) The Tenant covenants that during the term of this Lease and any renewal thereof, the Tenant shall keep the Leased Premises and Hangar in good condition including all alterations and additions made thereto, and shall, with or without notice, promptly make all needed repairs and all necessary replacements as would a prudent owner. The Tenant shall be responsible for all wear and tear to the Hangar and shall affect all repairs as Page 289 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 6 necessary. Save and accept the Landlord¶V, RU LWV aJHQW¶s, contractor¶s and employee¶s negligence or intentional actions, at no time is the Landlord responsible for any repairs or damage to the Hangar or the Leased Premises. (2)The Tenant shall permit the Landlord or a person authorized by the Landlord to enter the Leased Premises including the Hangar to examine the condition thereof and view the state of repair at reasonable times: (a)and if upon such examination repairs are found to be necessary, written notice of the repairs required shall be given to the Tenant by or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice; and, (b)if the Tenant refuses or neglects to keep the Leased Premises including the Hangar in good repair the Landlord may, but shall not be obliged to, make any necessary repairs, and shall be permitted to enter the Leased Premises and Hangar, including by its servants or agents, for the purpose of effecting the repairs without being liable to the Tenant for any loss, damage or inconvenience to the Tenant in connection with the Landlord¶V HQWU\ aQG UHSaLUV. II WKH Landlord makes such repairs the Tenant shall pay the cost of them immediately as Additional Rent. (3)Subject to any renewal, upon the expiry of the Term or other determination of this Lease the Tenant agrees to surrender peaceably the Leased Premises to the Landlord in a state of good repair and subject to the conditions contained in this Article 9(3). The Tenant may remove the Hangar provided the Tenant places the Leased Premises back into a similar condition as it was in prior to the construction of the Hangar even if the construction of the Hangar predated this Lease. At any time during the Term, expiry of the Term, if an Act of Default occurs or upon termination of this Lease if the Tenant is in arrears of any rent whatsoever the Tenant agrees that the Landlord shall be permitted to register such lien on the Hangar under the Personal Property Security Act and possession of the Hangar will not be obtained by the Tenant until the lien is paid in full with all accrued interest and legal fees. (4)The Tenant shall immediately give written notice to the Landlord of any substantial damage that occurs to the Leased Premises including the Hangar from any cause. (5)The Tenant hereby agrees that at no time is the Landlord responsible for any damage, including damage to property or personal injury, as a result of the Tenant¶V XVH RI WKH Leased Premises, Airport or Property and the Tenant hereby waives any cause of action in law, equity or by statute as against the Landlord for any loss. The Tenant acknowledges that it shall not institute any claim or make any demand against the Landlord, or anyone that may claim indemnity from the Landlord, for any personal injury or damage to property, including aircraft, as a result of the Tenant¶V XVH (LQFOXGLQJ VWRUaJH) RI WKH HaQJar, Airport or Property. The Tenant acknowledges that the use of the Airport, Hangar or Property is at its own risk. (6)The Tenant hereby forever releases the Landlord from any and all claims in law, equity or by statute as a result of any intentional or negligent acts of any other Tenant and/or user of the Property and/or Airport, or their agents, contractors, invitees, customers or employees that may cause death, personal injury or property loss to the Tenant or its agents, customers, employees, contractors or invitees. 10.ALTERATIONS AND ADDITIONS (1)If the Tenant, during the Term of this Lease or any renewal of the Lease, desires to make any alterations or additions to the Leased Premises, including but not limited to; erecting partitions, attaching equipment, and installing necessary furnishings or additional equipment of the Tenant¶V bXVLQHVV but not including erecting a new hangar or any other accessory building, the Tenant may do so at his own expense provided that any and all alterations or additions to the Leased Premises made by the Tenant must comply with any requirement of thH LaQGORUG LQFOXGLQJ SFKHGXOH ³B´ aQG all applicable building code standards and by-laws of the municipality in which the Leased Premises are located and any federal or provincial statutes, rules or regulations. (2)The Tenant shall pay Rent at the rate prescribed in paragraph 3 above based upon the area of the Hangar subsequent to any addition or alteration. (3)The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Leased Premises. (4)No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant, or any other person on the Tenant¶V bHKaOI, RQ any part of the outside of the Hangar unless it is located along the facade of the Hangar¶V front and provided it complies with the Landlord¶V VLJQaJH UHTXLUHPHQWV aQG ZLWK aOO aSSOLFabOH OaZV, b\-laws and regulations and is in good workmanlike manner. No other sign, advertisement or notice shall be erected Page 290 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 7 unless it has been approved in every respect by the Landlord in writing. (5)The Tenant agrees, at its own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered against the Landlord¶V SURSHUW\ LQ FRQQHFWLRQ ZLWK aQ\ aGGLWLRQV RU aOWHUaWLRQV WR WKH Leased Premises made by the Tenant or in connection with any other activity of the Tenant. (6)The Tenant shall, at his own expense, if requested by the Landlord, remove any or all additions or improvements made by the Tenant to the Leased Premises during the Term and shall repair all damage caused by the installation or the removal or both. (7)The Tenant shall not bring onto the Leased Premises or any part of the Leased Premises any machinery, equipment or any other thing that might in the opinion of the Landlord, by reason of its hazardous nature, weight, size or use, damage the Leased Premises or the Property. If the Leased Premises or Property are damaged the Tenant shall restore the Leased Premises or Property immediately or pay to the Landlord the cost of restoring the Leased Premises or Property. 11.INSURANCE (1)The Tenant covenants to keep the Landlord indemnified and save harmless the Landlord at all times against all claims, suits, procedures, actions and demands (including but not limited to all legal costs) whatsoever and howsoever arising by any person, entity or corporation whether in respect of damage, loss or death to person or property, arising out of or occasioned by the maintenance, use or occupancy of the Leased Premises, Airport and Property or the subletting or assignment of same or any part thereof. And the Tenant further covenants to indemnify the Landlord with respect to any encumbrance on or damage to the Leased Premises occasioned by or arising from the act, default, or negligence of the Tenant, its officers, agents, servants, employees, contractors, customers, invitees or licensees. The Tenant agrees that the foregoing indemnity shall survive the termination of this Lease notwithstanding any provisions of the Lease to the contrary. (2)The Tenant shall carry insurance in its own name insuring against the risk of damage to the Tenant¶V SURSHUW\ and the Hangar within the Leased Premises caused by fire or other perils. (3)The Tenant shall carry such general liability and property damage insurance including personal injury and property damage coverage with at least two million ($2,000,000.00) dollars in limits of each occurrence with respect to the Leased Premises and Tenant¶V occupation of the Leased Premises. Such insurance policy shall contain no airport site exclusion. (4)All insurance policies in this Section 11 including this Article shall name the Landlord, where applicable, as an insured and loss payee and the policy shall include a cross -liability endorsement. All policies shall be applicable as primary insurance, taking precedence over any other insurance protection owned by the Landlord. The Tenant shall insure that each insurance policy contains a waiver of subrogation rights which the insurer may have against the Landlord and the persons for whom is legally responsible. (5)Upon demand of the Landlord, the Tenant shall provide a copy of any and all policies of insurance including renewals and terms of such policies to the Landlord. If any policy of insurance is canceled the Tenant shall inform the Landlord without delay of such cancellation and shall obtain a replacement policy without delay on the same terms as set out in this Section 11. Under no circumstances shall delivery of and review by the Landlord of any certificate set forth or any insurance policy or any other proof of existence of the insurance coverage release the Tenant of its obligations to take out insurance in strict compliance with the present provisions or constitute a waiver in favour of the Tenant of any of the Landlord's rights. 12.ACTS OF DEFAULT AND LANDLORD¶S REMEDIES (1)An Act of Default has occurred when: (a)the Tenant has failed to pay Rent for a period of 45 consecutive days from the date that payment was required to be paid to the Landlord; (b)the Tenant has breached its covenants or failed to perform any of its obligations under this Lease for a period of 45 consecutive days and: (i)the Landlord has given ten (10) days¶ notice specifying the nature of the default and the steps required to correct it; and, (ii)the Tenant has failed to correct the default as required by the notice; (c)the Tenant has: Page 291 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 8 (i)become bankrupt or insolvent or made an assignment for the benefit of creditors; (ii)had its property seized or attached in satisfaction of a judgment; (iii)had a receiver appointed; (iv)committed any act or neglected to do anything with the result that a Construction Lien or other encumbrance is registered against the Landlord¶V SURSHUW\; or, (v)taken action with a view to dissolution or liquidation; (d)any required insurance policy is cancelled or not renewed by reason of the use or occupation of the Leased Premises, or by reason of non-payment of premiums; (e)the Leased Premises: (i)has become vacant or remain unoccupied for a period of 180 consecutive days. For the purposes of this section the Parties agree that the terms ³YaFaQW aQG ³XQRFFXSLHG´ VKaOO PHaQ QR XVH RU utilization of the Hangar and/or no storage of necessary tools, implements or equipment in the Hangar; or, (ii)is used by any other person or persons, or for any other purpose than as provided for in this Lease without the written consent of the Landlord; (f)failure to install or remedy faulty work, if, in the opinion of the Landlord the Tenant: i.is not proceeding or causing to be proceeded the works required in connection with this Agreement within WKLUW\ (30) Ga\V¶ RI QRWLFH given; or ii.is improperly performing the works; or iii.has neglected or abandoned before the completion, or unreasonably delayed the same, so that conditions of this Agreement are being violated or carelessly executed or being carried out in bad faith; or iv.has neglected or refused to renew or again perform such work as may be rejected by the Landlord as defective or unsuitable; or v.has defaulted performance of the terms and conditions of this agreement; then, in any such instance, the Landlord shall promptly notify the Tenant, in writing, of such default or neglect and if such notification be without effect within ten (10) business days after such notice, the Landlord shall thereupon have full authority and power to purchase materials and employ workers and machines for the proper completion of the works at the cost and expense of the Tenant. The cost of such work shall be calculated by the Landlord whose decision shall be final and be paid to the Landlord by the Tenant on demand. Should payment not be received following the issuance of an invoice from the Landlord, the Landlord shall collect same as Additional Rent in addition to any other remedy available to the Landlord. It is further understood and agreed between the parties hereto that such entry upon the Premise shall be as an agent for the Tenant and shall not be deemed, for any purposes whatsoever, as an acceptance of the works by the Landlord. (2)When an Act of Default on the part of the Tenant has occurred: (a)the current \HaU¶V Rent together with the next yearV¶ Rent shall become due and payable immediately; and, (b)the Landlord shall have the right to terminate this Lease and to re-enter the Leased Premises and deal with them as it may choose. (3)If, because an Act of Default has occurred, the Landlord exercises its right to terminate this Lease and re-enter the Leased Premises prior to the end of the Term, the Tenant shall nevertheless be liable for payment of Rent and all other amounts payable b y the Tenant in accordance with the provisions of the Lease until the Landlord has re-let the Leased Premises or otherwise dealt with the Leased Premises in such manner that the cessation of payments by the Tenant will not result in loss to the Landlord and the Tenant agrees to be liable to the Landlord, until the end of the Term of this Lease for payment of any difference between the amount of Rent hereby agreed to be paid for the Term hereby granted and the Rent any new Tenant pays to the Landlord. (4)If when an Act of Default has occurred, the Landlord chooses not to terminate the Lease and re-enter the Leased Premises, the Landlord shall have the right to take any and all necessary steps to rectify any or all Acts of Default of the Tenant and to charge the costs of such rectification to the Tenant and to recover the costs as Rent. (5)If, when an Act of Default has occurred, the Landlord chooses to waive its right to exercise the remedies available to it under this Lease or at law the waiver shall not constitute condonation of the Act of Default, nor shall the waiver be pleaded as an estoppel against the Landlord to prevent his exercising his remedies with respect to a subsequent Act of Page 292 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 9 Default. No covenant, term, or condition of this Lease shall be deemed to have been waived by the Landlord unless the waiver is in writing and signed by the Landlord. 13.TERMINATION UPON NOTICE AND AT END OF TERM (1)If the Leased Premises and/or Property are subject to an Agreement of Purchase and Sale: (a)The Landlord shall have the right to terminate this Lease, notwithstanding that the Term has not expired, b\ JLYLQJ QLQHW\ (90) Ga\V¶ QRWLFH (WKH ³NRWLFH´) LQ ZULWLQJ WR the Tenant and, at the Tenant¶V RSWLRQ, WKH Landlord shall pay to the Tenant the fair market value for the Hangar or the Tenant agrees to remove the Hangar and comply with Articles 9(3) and 10(5) of this Lease. Upon expiry of the Notice the Tenant shall provide vacant possession of the Leased Premises provided the Landlord pays to the Tenant a bonus of $500.00. For the purposes of this Article and Articles 13(3) and 13(4) fair market value shall be determined as of the date of the issuing of the Notice. (2)If the Tenant remains in possession of the Leased Premises after termination of this Lease as aforesaid and if the Landlord then accepts Rent for the Leased Premises from the Tenant, it is agreed that such overholding by the Tenant and acceptance of Rent by the Landlord shall create a monthly tenancy only but the tenancy shall remain subject to all the terms and conditions of this Lease except those regarding the Term. The Parties agree that if the Term is not renewed then upon expiry of the Term or if the Tenant is an overholding tenant then either Party may terminate the lease upon sixty (60) days written notice to the other party and the Tenant shall comply with Articles 9(3) and 10(5) of this Lease. (3)Other than a termination of this Lease in accordance with Article 13(1) of this Lease, the Landlord shall, at any time and notwithstanding that the Term has not expired, have the XQTXaOLILHG ULJKW WR WHUPLQaWH WKLV LHaVH XSRQ RQH \HaU¶V SULRU ZULWWHQ QRWLILFaWLRQ (the ³NRWLFH´) if the Leased Premises are required for any reason or purpose of the Landlord in which event the Landlord shall pay to the Tenant the fair market value for the Hangar, if erected by the Tenant, unless the Tenant agrees to remove the Hangar and comply with Articles 6(3) and 7(5) of this Lease , and the Tenant shall provide such vacant possession upon the expiry of the Notice provided the Landlord pays to the Tenant a bonus of $500.00. (4)The Parties agree that it is their mutual intention that at the end of the Term of this Lease the lease shall be renewed upon such conditions and terms as agreed between the Parties. The Parties further agree that although it is their mutual intention to renew the lease nevertheless either party may decide not to renew the lease for any reason. The Parties acknowledge that upon such renewal all terms and conditions shall be negotiated between the Parties. If the Parties do not renew this Lease then the Parties agree that the Landlord shall be granted thH RLJKW RI FLUVW RHIXVaO WR SXUFKaVH WKH HaQJaU (WKH ³OSWLRQ´). TKH Tenant covenants that it will not sell the Hangar, or any part thereof, to any person, firm or corporation, without first providing the Landlord to exercise its Option as set out in the terms of this paragraph. Upon the Tenant UHFHLYLQJ a bRQa ILGH RIIHU LQ ZULWLQJ (WKH ³TKLUG PaUW\ OIIHU´) WKH Tenant shall deliver to the Airport Office, 244411 Airport Road, Township of South-West Oxford, Ontario, a copy of the Third Party Offer and the Landlord shall have WZHQW\ bXVLQHVV Ga\V (WKH ³NRWLFH PHULRG´) IURP WKH GaWH RI UHFHLSW RI WKH TKLUG PaUW\ OIIHU to exercise the Option to match the Third Party Offer. If the Landlord exercises its option in the Notice Period then it must inform the Tenant at the Property in writing that it will purchase the Tenant¶V LQWHUHVW LQ WKH HaQJaU RQ WKH VaPH WHUPV aQG FRQGLWLRQV, RU PRUH favourable terms to the Tenant at the Landlord¶V GLVFUHWLRQ, aV FRQWaLQHG LQ WKH TKLUd Party OIIHU (WKH ³Landlord¶V OIIHU´). II WKH Landlord exercises its Option in the Notice Period then the Tenant must sell the Hangar to the Landlord upon the terms and conditions as contained in the Landlord¶V OIIHU. II WKH Landlord does not exercise its option in the Notice Period then the Tenant shall be at liberty to accept the Third Party Offer provided that there are no modifications to the Third Party Offer. If any modifications are made to the Third Party Offer then the Landlord shall be permitted to exercise its option pursuant to the terms of this paragraph. For the purpose of this paragraph, if the Tenant is a corporation, the ZRUG ³VHOO´, LQ aGGLWLRQ WR LWV RUGLQaU\ PHaQLQJ, VKaOO bH GHHPHG WR PHaQ aQG LQFOXGH a VaOH or disposition of the corporate shareholding of the Tenant by the person or persons who, at the date of the commencement of the lease holds or hold a majority of the corporate shares. Subject to the conditions contained in Article 4 of this Agreement, the Parties agree that prior to the expiry of this Lease if the Tenant seeks to assign this Lease to a third party then the Landlord will agree to examine a proposal to extend the term of this Lease however nothing in this paragraph shall require the Landlord to accept any amendment of the term or new term. 14.ACKNOWLEDGMENT BY TENANT (1)The Tenant agrees that it will at any time or times during the Term, upon being given at least forty-eight (48) hours prior written notice, execute and deliver to the Landlord a statement in writing certifying: Page 293 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 10 (a)that this Lease is unmodified and is in full force and effect (or if modified stating the modifications and confirming that the Lease is in full force and effect as modified); (b)the amount of Rent being paid; (c)the dates to which Rent has been paid; (d)other charges payable under this Lease which have been paid; (e)particulars of any prepayment of Rent or security deposits; and, (f)particulars of any sub tenancies. 15.SUBORDINATION AND POSTPONEMENT (1)This Lease and all the rights of the Tenant under this Lease are subject and subordinate to any and all charges against the land, buildings or improvements of which the Leased Premises form part, whether the charge is in the nature of a mortgage, trust deed, lien or any other form of charge arising from the financing or re-financing, including extensions or renewals, of the Landlord¶V LQWHUHVW LQ WKH Property. (2)Upon the request of the Landlord the Tenant will execute any form required to subordinate this Lease and the Tenant¶V ULJKWV WR aQ\ VXFK FKaUJH, aQG ZLOO, LI UHTXLUHG, aWWRUQ WR WKH holder of the charge. (3)No subordination by the Tenant shall have the effect of permitting the holder of any charge to disturb the occupation and possession of the Leased Premises by the Tenant as long as the Tenant performs his obligations under this Lease. 16.RULES AND REGULATIONS The Tenant agrees on behalf of itself and all persons entering the Leased Premises with the Tenant¶V aXWKRULW\ RU SHUPLVVLRQ WR abLGH b\ VXFK UHaVRQabOH UXOHV, standards and regulations of the Airport and/or Property which shall form part of this Lease and as the Landlord may make and/or amend from time to time. 17.NOTICE (1)Any notice required or permitted to be given by one party to the other pursuant to the terms of this Lease may be given To the Landlord at: Tillsonburg Regional Airport Attn: Airport Administrator 244411 Airport Rd South-West Oxford, On N4G 4H1 Fax: 519-842-3445 To the Tenant at the Leased Premises or at: Civilogistics Incorporated 93 Windham Road #3 Norwich, Ontario N0J 1P0 (2)The above addresses may be changed at any time by giving ten (10) days written notice. (3)Any notice given by one party to the other in accordance with the provisions of this Lease shall be deemed conclusively to have been received on the date delivered if the notice is served personally or seventy-two (72) hours after mailing if the notice is mailed. 18.REGISTRATION The Tenant shall not at any time register notice of or a copy of this Lease on title to the Property of which the Leased Premises form part without consent of the Landlord. 19.INTERPRETATION (1)The words importing the singular number only shall include the plural, and vice versa, and words importing the masculine, feminine or neutral gender shall include the other genders, and words importing persons shall include firms and c orporations and vice versa. (2)UQOHVV WKH FRQWH[W RWKHUZLVH UHTXLUHV, WKH ZRUG ³Landlord´ aQG WKH ZRUG ³Tenant´ ZKHUHYHU Page 294 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 11 used herein shall be construed to include the executors, administrators, successors and assigns of the Landlord and Tenant, respectively. (3)When there are two or more Tenants bound by the same covenants herein contained, their obligations shall be joint and several. 20.MISCELLANEOUS (1)Unless otherwise stipulated, parking, if applicable, in the common parking area shall be in common and unreserved. (2)If a dispute should arise between the Parties in the interpretation of this Agreement then both parties agree that such dispute shall be referred to binding arbitration and be bound by the result of such arbitration. The terms, f orm and procedure of the arbitration shall be in accordance with the Arbitration Act or any successor legislation. The parties further agree that the arbitrator shall be jointly chosen and the arbitrator shall have the ability to award costs of the arbitration. This clause shall not apply if the Tenant is in default under the terms of the Lease which include but are not limited to: (a)its obligations to pay Rent, Base Rent and/or Additional Rent; (b)non-repair or maintenance of the Leased Premises; (c)subleased the Leased Premises without the authorization of the Landlord, acting reasonably; (d)changed its use of the Leased Premises; or, (e)used the Leased Premises in any manner contrary to Article 7. (3)In the event that any clause herein should be unenforceable or be declared invalid for any reason whatsoever, such enforce ability or invalidity shall not affect the enforce ability or validity of the remaining portions of the covenants and such unenforceable or invalid portions shall be severable from the remainder of this Lease. (4)This Lease shall be construed and enforced in accordance with the laws of the Province of Ontario. Any proceeding shall be brought at the City of Woodstock in the County of Oxford, Ontario. (5)The Tenant hereby agrees that it has had an opportunity to review the terms of this Lease and seek independent legal advice. (6)Should any provision of this Lease require judicial interpretation or arbitration, it is agreed that the court or arbitrator interpreting or construing the same shall not apply a presumption that the terms thereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party who itself or through its agent prepared the same, it be agreed that both parties have participated in the preparation hereof. (7)This Lease aQG LW¶V VFKHGXOHV constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersedes all pr ior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no warranties, representations or other agreements between the Parties in connection with the subject matter hereof, exc ept as specifically set forth herein. No supplement, modification, waiver or termination of this Lease shall be binding unless executed in writing by the Parties. (8)The Tenant agrees that it has not relied upon any representation, promise or warranty of the Landlord with respect to the condition of the Leased Premises, Hangar or any representation or promise of the Landlord to repair, renovate or otherwise alter the Leased Premises in any manner prior to or after commencement of the Term. The Parties agree that the Leased Premises are being offered to the Tenant LQ aQ ³aV LV´ FRQGLWLRQ. TKH Tenant shall not call on or demand the Landlord to perform any repairs or renovations prior to or after it obtains possession. The Tenant acknowledges that it has performed its own due diligence in establishing the state of repair of the Leased Premises including the Hangar. In Witness of the foregoing covenants the Landlord and the Tenant have executed this Lease. __________________________________ Landlord Stephen Molnar, Mayor The Corporation of the Town of Tillsonburg Page 295 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 12 __________________________________ Landlord Michelle Smibert, Clerk The Corporation of the Town of Tillsonburg We have authority to bind the Corporation. Per: ____________________ _________________________ Witness Name Tenant Emily Crombez and Nathan Bain per. Civilogistics Inc. January 18/22 Page 296 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 13 Schedule “A” THE “LEASED PREMISES” HANGAR G2-9 Page 297 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 14 SCHEDULE “B” CONSTRUCTION REQUIREMENTS 1.The Tenant shall construct an airplane hangar building with approximate dimensions of 46 feet wide by 56 feet deep compromising a floor area of 2576 square feet. 2.The Tenant covenants and agrees, notwithstanding any other statute, regulation or provision regarding WKH IHGHUaO JRYHUQPHQW¶V aXWKRULW\ WR UHJXOaWH WKH aHURQaXWLFV industry, to: (a)obtain from the Landlord an Airport Development Permit prior to construction; (b)to pay to the Landlord a flat fee of $620 to administer the Airport Development Permit; (c)to construct the airplane hangar, and any other building that may be permitted, to the standard of the Ontario Building Code, O. Reg. 332/12 as amended or replaced from time to time (WKH ³OBC´) and to the satisfaction of the Landlord in its sole and absolute discretion, and; (d)to ensure all persons retained by the Tenant have appropriate health and safety policies, insurance and WSIB coverage. 3.The Tenant shall provide to the Landlord the following in order to obtain an Airport Development Permit and approval for use of the Leased Premises and hangar thereon: (a)prior to construction, submission of: 1.all applicable fees; 2.2 copies of a site plan showing the proposed location of the hangar and dimensions to the adjacent buildings; 3.2 copies of construction drawings (foundation plan, floor plan, building elevations, diaphragm/truss bracing, anchorage, construction details/finishes, etc.) stamped by a professional engineer; 4.2 copies of the truss drawings stamped by a professional engineer; and 5.Commitment to General Reviews form completed by both the building owner and professional engineer; (b)prior to occupancy and acceptance: 1.inspection of the construction and acceptance of same by the Landlord in in respect of compliance with the OBC, the terms of this Airport Lease and all policies and rules regulating the Tillsonburg Airport; and 2.submission of all site reports (footing inspection, framing inspection, occupancy inspection) and an occupancy report from the professional engineer; and, (c)final approval: 1.provide a final report (verifying outstanding items not completed at occupancy have been completed/corrected) from the professional engineer if applicable. 4.The parties covenant and agree that the Tenant is not required to obtain a building permit from the Township of Southwest Oxford for construction of buildings on the Tillsonburg Airport. 5.The Tenant covenants and agrees that failure to comply with the provisions of this schedule shall be an event of default of this Lease and in the absence of remedying such default, shall permit the Landlord to terminate this Lease and seek any and all other recourse against the tenant in such instance. Page 298 of 300 LandlRUd¶V Initials __________ TenanW¶V Initials __________ 15 SCHEDULE “C” CONSTRUCTION SCHEDULE Provided by the Tenant prior to execution of the lease agreement and approved by the Landlord. Preliminary Construction Schedule: Start of Construction - TBD End of Construction - Prior to Winter Note: Tenant has expressed that a detailed construction schedule will be provided to the Town of Tillsonburg once the contractor and Tenant have finalized. Page 299 of 300 THE CORPORATION OF THE TOWN OF TILLSONBURG BY-LAW 2022-023 A by-law to confirm the proceedings of Council at its meeting held on March 14, 2022. WHEREAS Section 5 (1) of the Municipal Act, 2001, as amended, provides that the powers of a municipal corporation shall be exercised by its council; AND WHEREAS Section 5 (3) of the Municipal Act, 2001, as amended, provides that municipal powers shall be exercised by by-law; AND WHEREAS it is deemed expedient that the proceedings of the Council of the Town of Tillsonburg at this meeting be confirmed and adopted by by-law; BE IT THEREFORE ENACTED by the Council of the Corporation of the Town of Tillsonburg as follows: 1. All actions of the Council of The Corporation of the Town of Tillsonburg at its meeting held on March 14, 2022, with respect to every report, motion, by-law, or other action passed and taken by the Council, including the exercise of natural person powers, are hereby adopted, ratified and confirmed as if all such proceedings were expressly embodied in this or a separate by-law. 2. The Mayor and Clerk are authorized and directed to do all the things necessary to give effect to the action of the Council of The Corporation of the Town of Tillsonburg referred to in the preceding section. 3. The Mayor and the Clerk are authorized and directed to execute all documents necessary in that behalf and to affix thereto the seal of The Corporation of the Town of Tillsonburg. 4. That this By-Law shall come into force and take effect on the date it is passed. READ A FIRST AND SECOND TIME THIS 14TH DAY OF MARCH, 2022. READ A THIRD AND FINAL TIME AND PASSED THIS 14TH DAY OF MARCH, 2022. _______________________________ MAYOR – Stephen Molnar _______________________________ CLERK – Michelle Smibert Page 300 of 300