report for community services committee august 25, 2008 ...webdocs.edmonton.ca › occtopusdocs ›...

Space for Non-profit Organizations

Recommendation:That the August 8, 2008, Community Services Department report 2008CSS007 be received for information.

Report SummaryThis report provides information regarding space for non-profit organizations and delineates Administration’s action plan.

Previous Council/Committee ActionAt the July 7, 2008, Agenda Review Committee meeting, the August 8, 2008, Community Services Department report 2008CSS007 was postponed to the August 25, 2008, Community Services Committee meeting.At the May 5, 2008, Community Services Committee meeting, the following motion was passed:

That Administration, in cooperation with the Edmonton Chamber of Voluntary Organizations, return to Community Services Committee by July 14, 2008, regarding:1. A Framework for space needs

and allocations.2. A list of local social agencies that

are currently looking for space, with a terms of reference on how similar groups could be housed together.

3. Input from The Building Owners and Managers Association (BOMA) and other stakeholders.

4. Develop a framework for the concept of a clearing house for space.

5. A list of community, public, government, church and other facilities that might be available for non-profit organizations.

ReportBackground Non-profit organizations contribute to

the quality of life in Edmonton. They provide services and programming that might otherwise be an expense to the City, or not be provided.

Non-profit organizations are finding it increasingly difficult to find suitable, affordable space in Edmonton.

Space issues are a key focus in the June 24, 2008, Multicultural Facility Feasibility report (2008CSS006). Space issues have also been identified as the first priority in the Edmonton Arts Council 2008-2018 Plan: Art of Living.

Currently, approximately $22 million is available for non-profit groups through the major grant programs that the City administers (Attachment 1), and, also through nominal leases of City property (74 organizations receiving $8.2 million annually in waived rent and exempt municipal taxes).

In addition, there are in the order of 100 organizations with nominal license arrangements and all qualified non-profit organizations occupying private or public space can receive exemption from property taxes.

Addressing space needs in a regional context may also offer some advantages over the long term.

Listed below are the responses to the Community Services Committee’s motion:

ROUTING – Community Services Committee | DELEGATION – H. McRae/R. DavissWRITTEN BY – J. Kain | August 8, 2008 – Community Services Department 2008CSS007 of 4

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Space for Non-profit Organization

1. A Framework for space needs and allocations: Administration and the Edmonton

Chamber of Voluntary Organizations (ECVO) are currently working on a number of short-term actions, as outlined in Attachment 2. In addition, Administration and ECVO agree that a long-term strategy is required to address non-profit space needs into the future. They have jointly identified future activities that may be undertaken to achieve these agreed upon outcomes, recognizing that this issue requires a community solution.

The current Not-for-Profit Leasing Guidelines provide a beginning framework for addressing space needs and allocations (Attachment 3). These guidelines include fundamental principles, criteria for non-profit qualification and a recommended process. A Project Team that will be jointly led by Administration and ECVO will update the guidelines and address two gaps: a prioritization mechanism and the need for additional space.

Results of this update will come to City Council in the form of a draft City Policy in 2009.

2. List of local social agencies currently looking for space with a terms of reference on how similar groups could be housed together. Asset Management and Public

Works Department has updated its list of non-profit organizations seeking less than market rent leases on City-owned property (Attachment 4). There are currently 37 social service organizations and 42 other non-

profit organizations on this list. The estimated space costs for these additional 79 groups is in the order of $5 million annually. However, if the City was to establish itself as a provider of space on a nominal basis as a matter of course, it is expected that the list of 79 would expand considerably given that there are presently approximately 4500 registered non-profit groups in the City.

Family and Community Supports Services (FCSS) staff are aware of at least twelve FCSS funded social service organizations that are currently dealing with space challenges (Attachment 4).

A plan is being developed, as part of the longer-term strategy, to co-house similar social service agencies. The space inventory that is being conducted will assist in determining the feasibility of this plan and the possibility of creating a pilot project co-housing model.

3. Input from The Building Owners and Managers Association (BOMA) and other stakeholders.

The following information was collected: The Executive Vice President of

BOMA is prepared to take the issue of non-profit organizations finding suitable and affordable space to the general membership and would be prepared to encourage appropriate members to list available space for lease on a potential clearinghouse website.

The average cost of space currently listed by private realtors for lease, sub-lease or sale is approximately $15 per square

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foot plus operating costs of $8 per square foot. In addition to this, tenant improvement costs are typically $50 to $60 per square foot for office space. These costs often result in appropriate spaces not being affordable for non-profits.

United Way of the Alberta Capital Region is involved in a project funded by Human Resources and Social Development Canada that is aimed at developing an innovative national organizational model for shared space. They have indicated an interest in working with the City on this.

The Province currently provides about $9 million of space per year to non-profit groups, with the tenants paying all operating costs.

Alberta Employment and Immigration is willing to discuss a facilitative role in addressing non-profit space needs.

The federal government has advised that there is no federal space available for lease to non-profits in Edmonton.

4. Developing a framework for the concept of a clearing house for space. Development of a clearinghouse

framework is underway. Administration reviewed several models for a clearing house and discovered two web-sites that would be well suited to Edmonton’s needs: http://www.orgspaces.org/http://www.nycpaspaces.org/

Administration and ECVO have engaged a business analyst to advise on building, hosting and resourcing a clearing house.

5. A list of community, public, government, church and other facilities that might be available for non-profit organizations. Significant work is underway by

Administration and ECVO to produce a comprehensive list of community, public, church and other facilities that might have space available. Information obtained from this space inventory will be used to populate the web-based clearinghouse.

At this time, there is no available municipal, provincial or federal government space.

Next steps in 2008

Short term actions, as identified in Attachment 2, can be implemented within existing budget and 2008 FCSS dollars.

Administration will continue to work with ECVO and other groups to validate and coordinate the long-term strategy.

A business plan will be developed regarding a pilot project for a co-housing model.

The Project Team will report back to Community Services Committee on its progress by December, 2008.

PolicyNon-Profit Leasing Guidelines – Approved by City Council March 16, 1999.

Focus AreaVibrant Communities – encourages recreational, cultural, artistic and entertainment opportunities for all residents.

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http://www.nycpaspaces.org/

http://www.orgspaces.org/


Attachments1. Summary of Major Grant Programs

Administered by the City of Edmonton

2. Action Framework3. Non-profit Leasing Guidelines –

Approved by City Council March 16, 1999

4. List of Local Social Agencies Currently Looking for Space

Others Approving this Report L. Rosen, General Manager, Asset

Management and Public Works Department

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Attachment 1

Summary of Major Grant Programs Administered by the City of Edmonton

Grant Program Total amount

Community Investment Operating Grants $2,364,649

Family and Community Support Services- payments to community agencies*

$10,644,418

Edmonton Arts Council- includes funding for grant programs administered by the EAC and EAC Operating

$4,833,000

Edmonton Federation of Community Leagues – includes Community League Operating, Maintenance and Renovation, and EFCL Operating

$2,113,000

Seniors Centre Grants $1,405,000

Multicultural Grants-includes space subsidy $550,000

Community Investment “Keeping the Doors Open” $497,487

TOTAL $22,407,554

*- Does not include out of school care subsidy

Page 1 of 1 Report: 2008CSS007 Attachment 1

Attachment 2

Action FrameworkActions completed to date

Short Term Goals(July 2008 - Dec 2008)

Mid-Term Goals(Dec 2008 – June 2009)

Long Term Goals(June 2009 - June 2011)

Policy Framework Reviewed existing not for profit leasing guidelines and identified gaps

Completed preliminary research into policies in other Canadian municipalities to address non- profit space needs

Assemble project team and develop Terms of Reference; review and validate long term goals

Lead: Asset Management and Public Works// Community Services

Develop sector consultation plan

Lead: Community Services

Consult with key stakeholders

Lead: Community Services/ ECVO

Engage BOMA and the private sector in determining longer term solutions to the non-profit space issue.

Lead: Asset Management and Public Works/Community Services/ECVO

Revise Not For Profit leasing guidelines based on input from consultation

Convert revised Not For Profit leasing guidelines to City Policy


Attachment 2

Actions completed to date




Inventory of Space (demand and supply)

Retained consultant to develop space inventory questionnaire to confirm demand and supply

Completed 1st draft of space inventory questionnaire

Explored other space allocation models

Finalize e-contact list of not for profit organizations in Edmonton and community, public, church and other facility contacts that may have space available.


Administer space inventory questionnaire and complete analysis of results

Administration and ECVO co-ordinate a forum for non-profit organizations to broker additional space or time they have available at their facility with organizations that need additional space or time specific space. Assess the value of holding the forum on a yearly basis.

Begin to populate the web-based clearinghouse with data from the inventory

Funding/Resources Reviewed funding options Undertake an implementation strategy with Community Services Advisory Board to assist FCSS agencies with current rent costs. To ensure this is as equitable as possible, Community Services will take into consideration groups already receiving other city subsidies.


Administration and Community Services Advisory Board undertake to assist social service agencies with rent costs in 2009 and beyond.


Attachment 2

Actions completed to date




Clearinghouse for Space

Reviewed clearinghouse models

Had initial discussions with key community organizations that may be interested in building, hosting or collaborating on the clearinghouse site

Engage Business Analyst to advise on building, hosting and resourcing the clearinghouse site


Build Clearinghouse data Structure

Design tools required to collect data for site

Data collection

Launch web-based clearinghouse

Terms of Reference for Co-housing model

Reviewed not for profit co-housing models across Canada and U.S.A.

Initial dialogue with other key stakeholders in Edmonton open to exploring this model

Submit concept paper to Alberta Employment and Immigration for labour market partnership funding to support planning and governance related to piloting a co-housing model


Undertake further discussion with United Way and other potential partners


Develop a strategy and pilot project plan based on best practice research

Pilot Co-housing model


Attachment 3

Non-profit Leasing Guidelines – Approved by City Council March 16, 1999

Statement of Intent

The purpose of these Guidelines is to formalize a process for providing less than market rent leases of City-owned property to qualified non-profit organizations.

Principles

The City is responsible to hold public lands in trust and ensure public accessibility.

The City has an obligation to the taxpayers to prudently manage its land holdings.

The City acknowledges a need to provide qualified non-profit organizations with leases of City property at less than market rent.

The City recognizes the contributions of non-profit organizations towards the improvement of the quality of life in Edmonton. Contributions are made in the form of:1. the donation of volunteer time, money and commitment,2. the provision of services and programming that would otherwise be an expense to the

City or not be provided; and3. maintaining or increasing the asset value of the property occupied through upkeep,

maintenance and capital improvements.

It is recognized the City of Edmonton contributes to the strength of the non-profit sector through a variety of means including grants, less than market rents and tax exemptions. Boards or committees making recommendations of support will consider the receipt of all forms of City assistance.

Non-profit organizations provide a useful caretaking function when leasing properties that are not suitable for civic or commercial use, or that are highly specialized or unique. However, it should be noted that the City would not necessarily operate such facilities or provide the services offered by the non-profit community.

Guideline Exclusions and Exceptions

The following will be excluded from these Guidelines:

1. Community Services Department Enterprise Facilities.These facilities were mandated by City Council under the City '97 Initiatives to operate as one management entity. The facilities are the Muttart Conservatory, the Valley Zoo, Kinsmen Sports Centre, Commonwealth Stadium, Clarke Park, Fort Edmonton Park, Municipal Golf Courses, and the John Janzen Nature Centre.


Attachment 3

2. Management/Operating Agreements.The organization is operating the facility on behalf of the City and, in some cases, may obtain an operating subsidy. Examples include the Snow Valley Ski Hill, the Edmonton Ski Club, and the Millwoods Golf Course.

3. Permits, concessions and contracts in Community Services Department facilities.These agreements are not leases and are normally tendered for bids through Materials Management of the Corporate Services Department.

4. Licenses. These agreements are for temporary, non-exclusive use of property.

5. Leases held by the Edmonton Public Library Board.The Library operates under an independent board and is not considered a City department.

6. Leases to Community Leagues.These leases are currently under review.

7. Leases to non-profit organizations where the property is used for commercial, semi-commercial, or religious assembly purposes.

8. Residential/Social Housing.These uses are currently operating under City Policy C437.

9. Leases of Tax Recovery Properties. Tax Recovery properties are required by law to be leased at market value.

Leases where the non-profit organization alone or in partnership with the City proposes to construct or has constructed a facility of a unique or complex nature, will be dealt with on an individual basis by City Council. Examples include the Citadel Theatre, Winspear Centre, Kinsmen Twin Ice Arenas, and the Edmonton Indoor Soccer Centres.

Definitions

For the purposes of these Guidelines the following are defined but not limited to:

1. Operating Costs – costs and/or pro-rated costs for common areas associated with the day-to-day running and upkeep of a property:a) utilities - electricity, water, sewer, natural or propane gas, telephone;b) repair and maintenance – heating, ventilating, air conditioning, electrical, structural,

roof, plumbing, fire, life or safety systems, painting, decorating, drywall, flooring, other maintenance;

c) cleaning – janitorial, materials, garbage and waste removal;d) roads and grounds – maintenance, repair landscaping;


Attachment 3

e) security – wages or contract fees;f) taxes, licenses and license fees, insurance;g) administration costs - supplies, wages and salaries; andh) accounting - advertising and promotional costs.

2. Capital Replacement Costs – costs associated with the replacement of major building components:a) structural – roof, foundation, paving;b) mechanical - heating, air conditioning and ventilating systems; andc) electrical – change of service or complete replacement of all wiring, fire alarm or

security systems.

3. Tenant improvements – those that benefit only the non-profit organization and its uses, such as flooring coverings, interior painting, interior partitions and doors, window coverings, stages, seating, fixtures, etc.

4. Long-term Leases – leases where the term is more than five years, but no greater than ten years.

5. Short-term Leases – leases where the term is five years or less.

6. General Manager – the General Manager of Asset Management and Public Works and, where the property is held in the inventory of Community Services Department, also includes the General Manager of Community Services.

Restrictions on Property Availability

The General Manager has the right to determine the availability of properties for lease to non-profit organizations.

Factors determining the availability of property include, without restriction, future civic requirements, marketability, suitability, and appropriateness for the intended use.

General Terms and Conditions for Less than Market Rent Leases

Less-than-market-rent leases to qualified non-profit organizations will be at an annual rent of $1.00.

The General Manager shall determine the length of lease available for any property.

Long-term leases will require the non-profit organization to be responsible for all costs associated with the use of the property including, but not limited to, operating costs, capital replacement costs, subdivision, servicing, and redistricting.


Attachment 3

Short-term leases which include multi-tenant properties, will have the City responsible for capital replacement costs. All operating costs associated with the use of the property will be borne by the non-profit organization. Further, the City and the non-profit organization will have the right to terminate the lease should the capital replacement cost of a major building component exceed the expected economic life of the building. Short-term tenants will have the option of undertaking a capital replacement at their own expense or vacating the building.

Any lease wherein the non-profit organization has constructed the building, undertaken major capital improvements, or was previously under long-term lease; all costs including operating and capital costs associated with the use of the property, will continue to be the responsibility of the tenant regardless of the number of years of the lease term.

All non-profit organizations will be responsible for payment of all operating costs attributable to their leased property, either directly or as additional rent.

Leases with operating costs billed by the City as additional rent may have those costs reviewed annually. Operating costs may be adjusted as required to account for inflation or other increased costs.

In all leases, the non-profit organization will be fully responsible for all tenant improvements and the associated costs.

Unless exempted, all non-profit organizations shall be subject to property assessment and taxation for the leased property.

The non-profit organization must be in good standing and not be in default of any provision of their current lease with the City, in order to qualify for a less-than-market-rent lease.

Leases will not allow for a change in use, assignment, or sub-letting, without the consent of the General Manager, and such consent may be unreasonably and arbitrarily withheld.

Capital replacement projects which are the responsibility of the City, will be undertaken as budget funds are available.

All leases shall be acceptable as to content by the General Manager and be acceptable as to form by the Law Branch of Corporate Services Department.

These Guidelines are subject to:1. all City approved policies, procedures, and bylaws, except for City Policies C187 and

C423;2. all applicable federal and provincial statutes and regulations; and3. all current agreements between the City and other parties such as school boards or

governmental authorities.

The City Manager is delegated the authority to approve and to sign all documents relating to leases of City-owned property to non-profit organizations, for a term not to exceed 10 years


Attachment 3

in accordance with the Non-profit Leasing Guidelines. The City Manager will provide a listing of the approved non-profit leases on an annual basis.

Treatment of Existing Leases

The Non-Profit Leasing Guidelines will be effective January 1, 1999.

Existing leases to non-profit organizations will be treated as follows:1. Non-profit organizations paying rent in excess of the Guidelines may apply to have their

leases amended, effective January 1, 1999.2. Non-profit organizations paying rent less than the Guidelines will comply with the

Guidelines on renewal of the lease or upon entering into a new lease.

Criteria for Qualifying Non-Profit Organizations

The criteria previously approved by City Council as a measurement of benefit to the community for use in determining property tax exemption will be used to qualify non-profit organizations wishing to lease City property at less than market rents (as outlined on Page 7 of Attachment 1).

In addition, non-profit organizations must meet criteria established by Administration, which are as follows:1. The intended use of the property by the non-profit organizations must be considered

suitable, appropriate, and meet the needs and requirements of the community as determined by the General Manager of the Community Services Department and the General Manager of the Asset Management and Public Works Department.

2. The organization has demonstrated that it has the experience, financial capability, and resources to carry out its proposed major renovations to, or construction on, City-owned property as determined by the General Manager of the Asset Management and Public Works Department the General Manager of the Community Services Department.

If a non-profit organization was previously granted a property tax exemption, the non-profit organization will be deemed to qualify for a less than market lease, provided the additional criteria established by Administration are met.

Non-profit organizations currently leasing City property that have not previously been granted a property tax exemption will be required to apply and qualify for a property tax exemption from the Assessment and Taxation Branch of the Corporate Services Department, before becoming eligible for a less than market lease.


Attachment 3

In the event of disagreement on a qualification issue, between a non-profit organization and Administration, the Peer Review Panel, which was established by City Council authority to make recommendations on property tax exemptions, shall review the qualifications and provide recommendations to Administration.

In exceptional circumstances, should a non-profit organization not qualify for a property tax exemption but be considered a desirable tenant by the General Manager, the Community Services Department or the Asset Management and Public Works Department or both shall prepare a report and bring it forward to the appropriate Committee for consideration and determination.


Attachment 3

In order to qualify for a lease at less than market rent, a non-profit organization would need to meet the following fundamental principles:

FUNDAMENTALPRINCIPLES DESCRIPTION v

a) Organizations are of community benefit if they provide programs or

services in the following areas:*charitable and benevolent activity*neighborhood community association or community league activity*arts/cultural activity*multicultural/ethnocultural activities*youth or senior citizen associations*amateur sports and recreation organizations*museums and interpretative exhibits*non-commercial child care*aid to the disabled & handicapped, or

The programs and services provided by the organization are deemed of public benefit to citizens of Edmonton serving them either as a geographic community or community of interests; or

The organizations ability to provide those services is either more efficient, effective, accessible, or of a higher quality than would be provided by the city or the private sector; or

The benefits of the programs and services improve the quality of life of citizens of Edmonton.

INCORPORATION The organization must be incorporated as a non-profit in accordance with Section 241(f) of the Municipal Government Act.

The organization must be in good standing under the applicable act of legislation.MISSION The mission or goals of the organization are considered to serve the community.VOLUNTEER There is volunteer involvement in the organization’s programs, activities or

services.ACCESSIBLE The organization actively promotes participation of the community in the

programs, activities and facilities. The programs are not considered elite in nature and freely accessible to members

of the community. The programs, activities and fees do not restrict community access or participation.

CHIEF USE Utilized for the most part in a given way or for a given purpose, or more specifically utilized in a given way or for a given purpose at a level representing approximately 60% of the usage of the property or the part of the property.

QUALITY PROGRAMMING The programs are considered of a quality meritorious to warrant public support.COMMERCIAL IN NATURE Normally, an organization would be not be considered for tax exemption if it is

commercial in nature; however, if a non-profit organization is offering a competitive service but only to serve the mission or purpose of the organization, it should be considered. For example, if food is served but as part of an organization's program to encourage socialization programs, it would be deemed tax exempt.


Attachment 4

List of Local Social Agencies Currently Looking for Space

June 19, 2008

1. Abbottsfield Youth*2. Action for Healthy Communities*3. African Canadian Multicultural Club & Uganda Relief Foundation of North America 4. Alberta Association of the Deaf5. Alberta Caregivers Association*6. Alberta Council of Women’s Shelters 7. Ben Calf Robe Society 8. Bernadette N. Swan Social Care Foundation9. Beverly Day Care*10. Canadian Native Friendship Centre11. Candora*12. Centre for Family Literacy13. Changing Together, a Centre for Immigrant Women14. Clubhouse Society of Edmonton& Area15. Dogs with Wings

Assistance Dog Society 16. Domestic Violence Centre 17. DOT FOR HAART

Directly Observed transmission of Highly Active Anti –Retroviral Therapy 18. Edmonton Chapter Canadian Celiac Assoc.19. Edmonton Immigrant Services Associations*20. Edmonton Mennonite Centre for Newcomers*21. Edmonton Seniors Centre*22. Human Rights City Project23. Institution of Advancement for Aboriginal Women 24. Jasper Place Child & Family Resource Centre25. Norwood Child & Family Resource Centre*26. Primrose Place Family Centre*27. Seniors Assisted Transportation Society of Greater Edmonton 28. Sexual Assault Centre of Edmonton 29. Society for Assisted Cooperative Recovery from Eating Disorders SACRED30. Sudanese Canadian Community Association of Edmonton 31. Sudcan Relief and Development Services32. Teen Time33. Terra Association34. The Support Network*35. Unity Centre of North East Edmonton*36. Youcan 37. Zebra Child Protection

* FCSS agencies


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