Report to: Development Services Committee Date of Meeting: June 6, 2006

SUBJECT: Credit Agreement with – Wismer Commons Developer’s Group Inc.

PREPARED BY: Frank Ierfino, ext. 7920

RECOMMENDATION:

That the report entitled “Credit Agreement with – Wismer Commons Developer’s Group Inc.” dated May 16, 2006, be received;

And that the Mayor and Clerk be authorized to execute a Development Charge Credit Agreement with Wismer Commons Developers Group Inc. in a form satisfactory to the Chief Administrator Officer and Town Solicitor pursuant to section 38 of the Development Charges Act, 1997 for the construction of public works;

And that the Financial Services Department be authorized to make final adjustments to the financial schedules of the Development Charge Credit Agreement to reflect development charge credits upon execution of the Credit Agreement.

EXECUTIVE SUMMARY:

Not applicable

FINANCIAL CONSIDERATIONS:

There is no net financial impact to the Town. The collected development charges for constructing the external public infrastructure will be reimbursed to the Owner, who will then be responsible for paying the full cost of the infrastructure.

The purpose of this report is to obtain Council’s authorization to execute a Development Charges Credit Agreement with Wismer Commons Developer’s Group for the external storm sewer system infrastructure, intersection works and improvements (Works) that are required in order for the Wismer Commons Developers Group Inc. (Group) to proceed with development in their secondary plan. These Works, as shown in Figure ‘A’, have been identified and included in the Town’s Development Charge By-law (Area Specific By-Law 2004-245). The credit agreement will make provision, if need be, for the update of the financial schedules to reflect updated cost estimates and assessment to be undertaken as part of the D.C. update to be completed in the Fall of 2006.

The Group, as per Attachment ‘B’, has requested authorization to undertake the works subject to the Town providing development charge credits for the construction of the public works, at the subdivision agreement stage. The extent of the said works may be revised during finalization of this Agreement with the Group.

The Town’s Development Charge by-law identified and quantified external works required to service the Wismer Community. The external storm sewer system infrastructure, intersection works and improvements (Works), were included in the Area Specific Development Charges By-law for this area. In order to facilitate an early completion of the Works, and meet the Group’s development schedule, the Group has proposed to up-front funding and construct these works at their own cost and receive development charge credits as may be applicable upon execution of their future subdivision agreements.

Subsection 38(1) of the Development Charge Act provides as follows:

“If a municipality agrees to allow a person to perform work that relates to a service to which development charge by-law relates, the municipality shall give the person a credit towards the development charge in accordance with the agreement.”

The Town has entered into similar agreements with other owners in OPA5 such as Minto/Legacy, Cornell, Angus Glen, Berczy etc.. The draft credit agreement (Attachment ‘C’) has been prepared for review and discussion by the Town and the Group and its financial schedules will be prepared by staff.

Development charges credit agreements have been used in a number of development applications. This allows the land owner to construct the necessary external infrastructure to serve their development ahead of the Town’s capital program. The Group will be required to retain a professional consulting engineer to design and supervise the construction of the above noted works in accordance with the Town’s engineering standards. This ensures the standard of design and construction will meet the Town’s requirements. Town staff support this request, subject to the Group entering into a development charges credit agreement, which will include the following components:

Define the scope of the work and the responsibilities of the Owner
Deposit of financial securities to guarantee completion of the work
Provide liability insurance policy to the Town
Identify the amount of development charges that the Owner has paid
Define credit amount to be returned to the Owner
Identify time schedule for various activities

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST CONSIDERATIONS:

Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

The Financial Services Department will have to track and administer credits and reimbursement payments in accordance with the Credit Agreement. The Legal Services Department will draft the Credit Agreement.

RECOMMENDED BY:

________________________ ______________________________

Alan Brown, C.E.T. Jim Baird, M.C.I.P., R.P.P.

Director, Engineering Commissioner, Development Services