Peterborough city council has decided not to move forward with a proposed by-law that would have transferred a key financial authority from the Downtown Business Improvement Area to the City.
The draft by-law, connected to a 2017 settlement agreement, would have allowed the City to assume the DBIA’s authority to receive an annual payment of $150,000. Under the agreement, the City provides the DBIA with 20 yearly payments for a total of $3 million, tied to the resolution of an appeal involving Official Plan Amendment 173 and Zoning By-law 16-053 before the former Ontario Municipal Board.
Because the DBIA is a local board of the City, the Municipal Act allows council to amend its structure or take over certain powers. The draft by-law stated that the City would receive the annual funds directly and manage the proceeds, while remaining responsible for the DBIA’s obligations under the settlement. It also indicated that any DBIA by-laws related to that authority would be repealed or adjusted to reflect the change.
Council ultimately chose not to approve the measure.
Background to the proposal
The proposal raised concern from the DBIA ahead of the meeting. The organization warned that changing how the funds are received and administered could create uncertainty for downtown businesses and affect ongoing planning and revitalization initiatives.
The DBIA also noted that the current funding arrangement remains in place until 2037 and questioned the need to revisit the structure at this time.
What remains in place
With council rejecting the by-law, the existing arrangement continues. The DBIA will receive the $150,000 annual payment directly under the terms of the settlement agreement, and no powers or responsibilities have been transferred to the City.
The DBIA has asked the City to engage in further review and consultation with downtown stakeholders before considering any future changes to its governance or financial structure.
