Xinyi Canada Glass Limited Project

On or about two and a half years ago the company approached the City, and numerous other municipalities, about being short-listed as a potential site for their facility. The City at that time was also looking at expanding its industrial land base as a result of the lack of lands zoned and useable for industrial development. The City identified a need for large sized industrial lands. In co-operation with investStratford, the City, County and Township of Perth South entered into discussions regarding the possible annexation of land in order to expand the City’s industrial land base and support additional jobs in the area. The consideration for the annexation of additional lands from the Township was the result of numerous identified deficiencies, including (i) creating a new industrial land base to facilitate future development for industrial employment; (ii) extending the City’s Wright Industrial Park; and (iii) responding to current demands, for industrial development.

The City, in considering whether to proceed with the annexation, conducted a review of its industrial land base through the completion of a planning review of its industrial land.

The City sought and was granted its annexation request for the lands from the Minister of Municipal Affairs. This process resulted in agreements being entered into with the County and Township of Perth South similar to those entered into when the RBC lands were annexed. This annexation process was subject to a public consultation and review period (minutes of the Public Meeting regarding the joint Annexation are attached). During this period the City continued its discussions with the Company who had started to narrow the site selection process which continued to include those lands recently annexed by the City.

Following the annexation, further discussions occurred with the City and Company with respect to the possibility of locating in the area. To facilitate the development of the newly annexed lands for the purpose that the lands were annexed, the City with the support of the County and the Township requested that the Minister of Municipal Affairs and Housing exercise the authority under the Planning Act and issue a Minister’s Zoning Order for the entire parcel of the lands subject to the annexation. The City consistently requested that the Minister apply a general industrial classification for all of the land annexed and not the zoning specific for a float glass manufacturer.

The Minister refused the City, Township and County’s request for the Minister’s Zoning Order. We understand that following the City’s annexation of the additional lands for industrial development the Company then proceeded to have numerous discussions with the Minister with respect to the application of a Minister’s Zoning Order only on those lands needed for the float glass manufacturing facility. The City, County and Township in corresponding with the Minister indicated its support for the use of the Minister’s Zoning Order but reiterated their request that the Minister’s Zoning Order apply to all of the annexed lands and not be industry specific (ie float glass manufacturer). The Minister in exercising his discretion under the provisions of the Planning Act only applied the Minister’s Zoning Order to those lands proposed to be used for the float glass manufacturing facility and not the surrounding lands. The City is in the process of initiating zoning by-law and official plan amendments for the remaining lands subject to the annexation order which will be subject to the public review and comment process. 

On July 20, 2020 the Minister’s Zoning Order was posted on the City’s website to ensure the public had access to the contents of the Minister’s Zoning Order.

On August 4, 2020, the Boundary Adjustment notice was posted to the City’s website. On August 4, 2020, a news release regarding both the MZO and Boundary Adjustment was issued to the media, and posted on the City’s website.

The August 4, 2020,the media announcement posted on the City’s website specifically referred to the MZO:

 “The Minister of Municipal Affairs and Housing (MMAH) has implemented a boundary adjustment to open the door for the creation of much-needed industrial land for development in the City of Stratford.

The annexation of property along Highway 7 and Line 29 was approved by the Ministry and was published in the Ontario Gazette on August 1, 2020. A Minister’s Zoning Order for one of the parcels will expedite the development of that land for industrial purposes and to prompt economic development in the area.”

The City requested the Minister’s Zoning Order on the entire parcel, which was denied. When confirming its support for the Minister’s Zoning Order requested by the Company to prompt development in the area, the City reiterated its request that the zoning order apply on all of the lands subject to the annexation and they not be industry specific. The Minister proceeded to issue the Zoning Order only on those lands to be used by the float glass manufacturing facility.

Council is now considering whether or not it will enter into a cost-sharing agreement as it relates to the provision of services to the float glass manufacturing facility and the surrounding lands. In the event the City decides not to enter into the cost-sharing agreement, it is likely that the float glass manufacturing facility will not locate in the area and the City will need to reassess the lands recently annexed for industrial development and determine how best to service those lands.

Xinyi Glass is in the midst of updating its Traffic Impact Study required by the Ontario Ministry of Transportation for Highway 7 and the City for Perth Line 29. The draft Traffic Impact Study predicts an additional 480 trips during the peak hour being generated as a result of the Xinyi Glass facility. As a result of the development of the industrial lands surrounding the Xinyi Glass facility and the Wright Industrial Park and background traffic growth, the peak hour trips are estimated to be 923 by the year 2034. Xinyi Glass shall be responsible for any and all additional road improvements above and beyond normal wear and tear for Highway 7 and Line 29 (formerly Gibb Road). 

The existing CN Rail line abutting the Xinyi Glass facility will be utilized for the purposes of transporting materials to and from the Xinyi Glass facility. The raw products transported via the CN Rail line include sand, soda ash and limestone - all naturally occurring products. Xinyi Glass has indicated that there will be a maximum of 14 rail cars required per day Monday to Friday with the deliveries predominately occurring during the daytime hours. 

To date, Xinyi Glass has not submitted an application for living quarters on the Xinyi facility property.  The Xinyi property is subject to Ontario Regulation 356/20 and permits the manufacturing, processing, fabrication, assembly, distribution and storage of raw materials relating to the manufacturing of float glass and those uses and structures that are accessory and set out in section 1 of the regulation. The accessory uses permitted includes, among other uses, a dwelling unit for onsite caretaker and fire protection staff. The Emergency Preparedness Centre is to allow for the immediate deployment to the Xinyi Glass facility in the event of an emergency. 

What do we know about the potential air and water pollutants?

A D6 Land Use Compatibility Report – Draft prepared by RWDI was submitted to the City. The applicable regulatory provisions to assess the potential for adverse air quality and noise impacts from industry on sensitive land uses including the Ministry of Environment, Conservation and Parks Land Use Compatibility D-Series guidelines; and, the Ontario Environmental Protection Act including but not limited to O. Reg. 419/05 Local Air Quality, O. Reg. 1/17 Registration under Part II.2 of the Act- Activities Requiring Assessment of Air Emissions, MECP environmental Noise Guideline Publication NPC-300 – Stationary and Transportation Sources – Approvals and Planning. All permits, approvals are required to be obtained from the MECP in accordance with the applicable guidelines and policies.

The raw material transfers occur in enclosed buildings under negative pressure, the manufacturing glass process occurs in an enclosed building and finished products are stored within the warehouse. The process is not open to the atmosphere but is self-contained in a plant or building envelope result in minimal fugitive dust and odour emissions. The primary air quality source will be the main furnace stack and required by the MECP to include the appropriate control equipment.

The air emissions from the Xinyi facility are predicted to be better than the 2023 Air Quality targets and standards established by Ontario Regulation 419/05. The air emissions from the furnace stack associated with the Xinyi facility are predominantly steam from water cooling the glass and the exhaust from natural gas. The emissions are projected to be significantly lower than Ministry of Environment, Conservation and Parks maximum permitted limits. The Xinyi facility has indicated that it has established the following targets and will be required to obtain all approvals and authorizations from the Ministry of Environment, Conservation and Parks.  The Xinyi facility is subject to the Ambient Air Quality Criterion (AAQC) applied by the MECP. An AAQC is a desirable concentration of a contaminant in air and is used to assess generally air quality resulting from all sources of contaminant in air. AAQCs are set with the intention of protecting against any impacts to health, odour, vegetation, soiling visibility, corrosion or other effects.

The Xinyi facility’s emissions will meet the MECP regulatory requirements and are predicted as set out below:

Nitrogen Oxide:

24-hour:  <20% of MECP limit

1-hour:      <30% of MECP limit

Sulphur Dioxide:

1-hour:    <55% of MECP limit

annual:    <20% of MECP limit

Particulate Matter (averaging period):

24-hour:   <5% of MECP limit

In terms of wastewater, the Xinyi facility will be required to meet the parameter’s set out in the City’s Sewer Use By-law. The City’s By-law does not apply to salt and fumaric acid which is part of the discharge of the Xinyi facility and a common food additive. The concentrations identified for salt and fumaric acid are less than 5 ppm. The City has followed up with Ontario Clean Water Agency, which is responsible for the operation of the City’s pollution control plan, and OCWA confirmed that they did not have any concerns with respect to the salt and fumaric acid discharges. 

Will the City’s water treatment plant be able to handle the wastewater from the glass plant?

On average, the flows at the water Pollution Control Plant are at 65% of the daily capacity. The addition of the Xinyi flows will increase this to 67.7%. Anticipated revenues for water and sanitary is approximately $1.43 million with additional operating and capital cost of $330,00 on a yearly basis. This will result in a net revenue of $1.1 million.

The cooling water for processed control is re-circulated for re-use by the Xinyi Glass facility in an enclosed system to reduce wastewater discharges. Any wastewater discharged to the City’s system will be required to meet the City standards established by the City’s sewer discharge by-law. 

All properties in the Province of Ontario are assessed by the Municipal Property Assessment Corporation (https://www.mpac.ca/en/PropertyTypes/IndustrialPropertyAssessments).

The value of the assessment of the proposed Xinyi Glass Canada Limited has not yet been determined.

The proposed development is estimated at $400 million – this includes construction, equipment, buildings, infrastructure and other development costs.  Not all of these are included in the assessed value.

Education tax rates are collected by the Municipality however remitted directly to the Province of Ontario.

The lands for the proposed development were formally in the Township of Perth South and are included within the Boundary Adjustment Agreement approved by the Minister of Municipal Affairs and Housing on August 1, 2020.  In accordance with that agreement, 24% of the Municipal taxes are payable to the Township of Perth South from the tax years of 2020-2027.  And 28% of the Municipal taxes are payable to the Township of Perth South in 2028 and beyond. This is consistent with other Boundary Adjustment Agreements with surrounding Municipalities.

The estimated annual property tax revenue is $3,337,000/year.  (Using an approximate assessed value of $150 million, net of education taxes and revenue sharing boundary adjustment agreements).

On July 8, 2020, the Minister of Municipal Affairs and Housing enacted O.Reg. 356/20 being the Minister’s Zoning Order (“MZO”) providing for a float glass manufacturer on a portion of the lands annexed by the City of Stratford.

A Minister’s Zoning Order is issued under the provisions of section 47 of the Planning Act. The power to enact a ministerial zoning order is considered and treated as a judicial or quasi-judicial function requiring that all the requirements of natural justice be observed. While under the provisions of section 47(5) no notice or hearing is required prior to making an MZO.  The Ministry is required to give notice of any such order within 30 days of the making of the MZO in such a manner as the Minister considers proper. 

The MMAH posted the MZO on the Environmental Registry of Ontario (“ERO”) on July 31, 2020 (ERO Number 019-2107). The posting provided notification to the public who could then submit comments to the Minister for review, consideration and determination as to whether to refuse to accept or further consider a request to either amend or revoke the order.

The MZO permits the property to be used for (a) the manufacturing, processing, fabrication, distribution and storage of raw materials relating to the manufacturing of float glass; and (b) the uses, buildings and structures that are set on in section 2 of O.Reg. 356/20 which include, among others, a pump house, business office, cafeteria, generating plan, emergency preparedness centre, a dwelling unit for an onsite caretaker. 

An annexation / boundary adjustment occurs under the provisions of the Municipal Act, 2001 section 171 to 173 and O. Reg. 216/96. Under the provision of the Municipal Act, 2001 there is no appeal right of a decision of Council, or the decision of the Minister, relating to a municipal boundary adjustment.

The Minister of Municipal Affairs and Housing has the discretion to approve or refuse a local restructuring proposal. The Municipal Act, 2001 requires that prior to council for the municipality(ies) voting on whether to support or oppose the restructuring proposal, council shall:

• Consult with the public by giving notice of, and by holding, at least one public meeting;
• Consult with such persons or bodies as the Minster may prescribe.

On December 19th, 2019, the City provided notice to the public with respect to a Joint Public Meeting for a proposed boundary adjustment scheduled for January 16, 2020 in the City of Stratford.

The Joint Public Meeting for Proposed Boundary Adjustment was held on January 16, 2020 with the Councils of the City of Stratford, the Township of Perth South and the County of Perth.

A Special Meeting of Council of the City of Stratford for the Proposed Boundary Adjustment was held on February 4, 2020 and delegations appeared to speak to the matter.

On February 6, 2020 both the Council of the County of Perth and the Township of Perth South held a Special Meeting of Council relating to the Proposed Boundary Adjustment.

On August 1, 2020, Minister Clark (Minster of Municipal Affairs and Housing) approved the Boundary Adjustment Proposal made by the City of Stratford, Township of Perth South and County of Perth.

The Minister implemented the restructuring by issuance of an Order. The Order was published in the Ontario Gazette on August 1, 2020 and made available by the City for public inspection in accordance with section 173(12) of the Municipal Act, 2001.

The City is preparing a development agreement, also referred to at times as a site plan agreement, which is a legally binding contract between Xinyi and the City including terms and conditions of the development and prepared in consultation with Planning, Legal, Engineering and other affected departments of the City and secures the obligations and responsibilities of the developer.

City Council held a special meeting on Tuesday, November 17, 2020 to consider a cost sharing/development agreement. At that meeting, Council adopted the following resolution:

* That a decision on the cost sharing agreement with Xinyi Canada Glass Limited be deferred pending receipt of additional information in response to questions raised;

* And that an information update be provided at the November 23, 2020 Regular Council meeting on this project.

A Site Plan Agreement, which is governed under the provisions of section 41 of the Planning Act will also be required as a condition to the approval of the plans and drawings for the proposed development. The City may, through this agreement, require that the owner of the land provide such facilities, easements and other matters to facilitate the development.

The agreement is registered on title and securities are held to ensure the development proceeds in accordance with the submitted plans and studies and requirements of the site plan agreement.