1 Canadian Brownfields An Emerging Market Presentation By: Mitchell Fasken President MATRIX PROPERTIES LTD. Tammy Lomas-Jylha General Manager, and the CANADIAN BROWNFIELDS NETWORK

2 Canadian Market How big is the Canadian brownfields market? –Difficult to characterize and estimate –MacLean’s August 11, 2003 “Industrial development has left municipalities across Canada holding the bill for cleaning up sometimes orphaned, often toxic lands. Known as brownfields, they are typically littered with abandoned buildings, all sorts of rubbish, leaking tanks, and rusting drums…About 30,000 brownfields mar the Canadian Landscape” –NRTEE, 2003 “There may be as many as 30,000 such sites in Canada” –General thought is that Canada’s market is 1/10 th the size of the U.S. market estimated at 125,000 – 600,000 sites

3 Types of Markets Public Sector –Drivers Public Good Federal, provincial and municipal support, approval and funding (Less concern or emphasis placed on economic performance or revenue return) Private Sector –Drivers Economic performance Public perception Financial Tools Sustainable development or smart growth approach or community focus (All levels of government support a sustainable cities agenda) Issue – barriers and impediments

4 Public Sector Sydney Tar Ponds, and Coke Ovens in Sydney, Nova Scotia Sites are owned by the Province Former steel plant and coke ovens located on a tidal harbour in the middle of the city Funding from federal government ($400 million) with either a 60:40 or 70:30 split with the province (6- 10 year projects) Removal and treatment technologies will be used to remediate and decommission the site Future site use options –Tar Ponds- urban park with walking trails, naturalized open space, engineered wetland, or sports field –Coke Ovens – 18 hole golf course, or light industrial park Barrier – Federal review process

5 Public Sector Sydney Tar Ponds, Sydney, Nova Scotia

6 Public Sector Coke Ovens, Sydney, Nova Scotia

7 Private Sector Two types of markets –Primary and secondary ($, innovative approaches, adhere to provincial regulations and municipal strategies including policies and incentives) –Each has different drivers and incentives to motivate the market Primary markets – Vancouver, Toronto, Montreal –Driver – economic performance Secondary markets – Ontario (Hamilton, Kitchener) –Drivers – brownfields strategies and financial incentives

8 Vancouver Residential lands –False Creek North –Historical Harbour / Industrial –SSRA cleanup or residential, commercial and office uses (residential dominates market) Government indemnities –Unit values of $500 to $1,000 per sq. foot –City has achieved millions in redevelopment value

9 Employment lands –False Creek South next area for redevelopment –Area under study –SSRA cleanup –Incorporate mixed use development

10 Toronto Strong vibrant market Primary transactions in the private sector Most significant brownfield areas –Waterfront –Downsview AFB –subject to complex government ownership Success for private sector –commercial / retail / office –residential –residential values of $350 top $700 per foot Toronto now using TIF’s for industrial redevelopment

11 No incentives No tax breaks 90 % of cleanups are full depth, non SSRA –Reasons Limited closure on cleanup responsibility No closure on liability MOE never accepts plan or signs off as regulator Limited lenders for non-full depth cleanups

12 Montreal Quebec’s Revi-Sols Program –Established to “spur the revitalization of Montreal and Quebec City through the rehabilitation of contaminated sites with strong potential for economic development” –In effect from with $63 million in grants –NRTEE (2003) – created an estimated 1075 person-years of employment over the five years in the areas of assessment and cleanup.

13 Hamilton Secondary market Historical heavy industry, Steel, Rail Significant areas of contaminated sites City implemented ERASE plan –TIF, Development Charge Credits, Grants, Loans Brownfield redevelopment activity up 500% Development of industrial, commercial and retail

14 Kitchener Historic footwear and tire manufacturing City initiated Downtown Redevelopment Plan to attract interest in secondary market –Identified priority sites –Implemented preplanning Waived Development charges, building permit fees, parkland dedication fees City is proactive on file management and issue resolution Land values have increased, sites more viable

15 Summary Rules vary province to province Sub-market values highly variable Local municipal commitment to Brownfields is essential Liability management and responsibility varies by province Limited financial lenders for SSRA or unconventional cleanups.

16 Good News Emerging market Regulators willing to address change –NTREE recommendation Added pressure from anti-urban sprawl Lenders and Public becoming educated More municipalities are seeing rewards Significant growth pressures in key markets Canada is opening for business

17 Tammy Lomas-Jylha General Manager, and the CANADIAN BROWNFIELDS NETWORK 2070 Hadwen Rd., Unit 201A, Mississauga, ON, L5W 2C9 (905) ext. 234 Contact Information Mitchell Fasken President MATRIX PROPERTIES LTD Prince Albert Court Mississauga, ON, Ontario, Canada, L5H 2S1 (416)