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Home My WebLink AboutPLN 33-23Report to Council Report Number: PLN 33-23 Date: October 23, 2023 From: Kyle Bentley Director, City Development & CBO Subject: Award of Request for Proposal (RFP 2023-7) for a Retail Market Study - File: D-1100-107 Recommendation: 1. That Proposal number RFP 2023-7 for a Retail Market Study, for the City of Pickering, submitted by Parcel Economics Inc., in the amount of $72,750.00 (excluding HST), be accepted; 2. That the net project cost of $74,031.00 (net of HST rebate), be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the net project cost of $74,031.00 as follows: a. The sum of $33,314.00 to be funded by a transfer from the Development Charge Reserve Fund – Growth Related Studies; b. The sum of $40,717.00 to be funded from Property Taxes; and 4. That the appropriate officials of the City of Pickering be authorized to take such actions as are necessary to give effect to this Report. Executive Summary: A Retail Market Study will provide an analysis of the present and future state of the retail market in Pickering. This background will assist staff in their review of high priority development applications, as well as long-term land use planning as a component of the City’s forthcoming Official Plan Review exercise. Request for Proposal number RFP 2023-7 was issued on the City’s Bids and Tenders portal on July 7, 2023, with a submission deadline of July 28, 2023. Five proposals were submitted. The Evaluation Committee, consisting of staff from the City Development Department, reviewed and evaluated the proposals received, using criteria outlined in the bid document. It is the recommendation of the Evaluation Committee that Parcel Economics Inc., as the highest scoring Proponent, be retained to undertake the Retail Market Study, at a cost of $72,750.00 (excluding HST). The total net project cost is estimated to be $74,031.00. In accordance with Section 10.04 of the Purchasing Policy, where the project cost of a consulting assignment is more than $50,000.00, the award is subject to the approval of Council. PLN 33-23 Subject: Award of Request for Proposal (RFP 2023-7) for a Retail Market Study October 23, 2023 Page 2 Financial Implications: 1.Proposal Amount Proposal Number RFP 2023-7 $72,750.00 HST (13%) 9,457.50 Total Gross Project Amount $82,207.50 2.Estimated Project Costing Summary Proposal Number RFP 2023-7 $72,750.00 HST (13%) 9,458.00 Total Gross Project Amount $82,208.00 HST Rebate (11.24%) (8,177.00) Total Net Project Costs $74,031.00 3.Approved Source of Funds – 2023 Current Budget Expenditure Account Source of Funds Budget Required 502230.10105.4639 Property Tax $16,250.00 $40,717.00 502230.10105.4639 DC – Growth Studies 33,750.00 33,314.00 Total Funds $50,000.00 $74,031.00 Net project costs under (over) approved funds ($24,731.00) The 2023 approved City Development Department budget identified $50,000.00 for background studies for the Official Plan Review, such as retail market studies. As that study was identified as a Growth Related Study, it was identified as being eligible for funding in the amount of 67.5% in the 2023 Current Budget. However, this percentage was incorrect, as the 2020 Development Charge Study had reduced the amount to 45%. The 2022 Development Charge Update Study continued to reflect the reduced amount of 45% funding for Official Plan Review Growth Related Background Studies and the required funds in Table 3 reflects this allocation. Further, all responses to the RFP came in over the $50,000.00 originally budgeted. However, the City Development Department has unspent funds in its consulting and professional account, general line item, for professional/technical assistance and $24,731.00 can be used from this line item, in combination with the $50,000.00 identified in the line item for the Official Plan Review Background Studies, to make up the required expenditure amount for the successful proponent, with the same ratio (45%) of development charges completing the required funding. PLN 33-23 Subject: Award of Request for Proposal (RFP 2023-7) for a Retail Market Study October 23, 2023 Page 3 The amount required for Development Charge funding for the $75,000.00 expenditure, at 45% ($33,314.00) is modestly less ($33,750.00) than the 67.5% of $50,000.00 identified in the Budget. Thus, the draw on the Development Charge account is not adversely affected. Discussion: Planning for Retail Areas within the City Despite planning for retail and services in greenfield areas (Seaton), the City has experienced slow or no take-up of these lands for retail purposes. Most of the lands in Seaton outside of the Natural Heritage System, and the Employment Areas, were designated for mixed uses, permitting a range of residential uses, as well as various commercial, recreational, cultural and community uses. It was anticipated that large blocks of land would be developed for such commercial, recreational, cultural and community uses in the near term (25-30 years), with redevelopment for residential uses occurring later through redevelopment. However, the City is now receiving requests to permit a substantial portion of the blocks of land originally anticipated to be developed for commercial uses in the near term, to be developed for residential uses, thus precluding their use for commercial, community, cultural or recreations uses in the future. To better evaluate these proposals, and to consider appropriate land use designations and zoning in new greenfield communities, the City needs to better understand the experience of new retail and service development in other suburban greenfield settings throughout Durham Region and the Greater Toronto and Hamilton Area (GTHA). Based on the emerging plans for development in new growth areas throughout the City, the Retail Market Study will determine how much retail/service space is appropriate to accommodate future residents. Existing commercial plazas along Kingston Road, within the Brock Specialty Retailing Node, and the City Centre, are being proposed for redevelopment into high-density, mixed-use sites. The redevelopment will result in less commercial floor space than currently exists. At the same time, the proposed mixed-use buildings will include hundreds of new residents. The City needs to understand how much future retail space will be required for these growing areas. Study Purpose and Scope of Work The Retail Market Study will determine the total amount, type, role, and function of retail uses throughout Pickering. The study will recommend the amount and distribution of future retail space throughout the City that will respond to expected population growth. Future retail needs will be described within a retail hierarchy that is reflective of its context – from retail in low-rise neighbourhoods to retail in mixed-use buildings within high density areas. The Retail Market Study will place the Pickering data in the context of industry trends, and the experience of other comparable municipalities. Request for Proposal number RFP 2023-7 was issued on the City’s Bids and Tenders portal on July 7, 2023, with a submission deadline of July 28, 2023. Four proposals were submitted. The Evaluation Committee, consisting of staff from the City Development Department, reviewed and evaluated the proposals received using criteria outlined in the bid document. PLN 33-23 Subject: Award of Request for Proposal (RFP 2023-7) for a Retail Market Study October 23, 2023 Page 4 Proposals were evaluated and scored based on the consultant’s experience on similar projects, their understanding of the project, proposed work plan and deliverables, project team overview, and their pricing. Parcel Economics Inc. was the top-ranked Proponent, and is recommended for award. All pre-conditions of award, as identified in the bid document, have been received, reviewed, and approved. Parcel Economics Inc. is currently part of the consulting team for the Northeast Pickering Secondary Plan where they are responsible for preparing the Employment Lands Strategy. Upon careful examination of all proposals and relevant documents received, the Evaluation Committee recommends acceptance of Proposal number RFP 2023-7 submitted by Parcel Economics Inc. in the amount of $72,750.00 (excluding HST), and approval of the total net project cost of $74,031.00 (net of HST rebate). Prepared By: Original Signed By Paul Wirch, RPP Principal Planner, Policy Original Signed By Kyle Bentley, P.Eng. Director, City Development & CBO Approved/Endorsed By: Original Signed By Cathy Bazinet, CPPB, NIGP-CPP Manager, Procurement Original Signed By Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer PW:ld Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer