Report to: Development Services Committee                                  Report Date: June 19, 2007

 

 

SUBJECT:                          Design, Construction and Financing of Three Parks in Phase 1 of the Cathedral Town Community by Cathedral Town Ltd., and 404 Developments Inc. 

PREPARED BY:               Linda A. Irvine, Manager, Parks and Open Space Development

 

 

RECOMMENDATION:

THAT the report to Development Services Committee, entitled “"Design, Construction and Financing of Three Parks in Phase 1 of the Cathedral Town Community by Cathedral Town Ltd. and 404 Developments Inc.” be received.

 

AND THAT Council approve the request by Cathedral Town Ltd., and 404 Developments Inc. to finance the cost of design, construction and contract administration of three parks known as ‘the Arboretum’, ‘Park Square’ and ‘Panorama Park’ (Blocks 121, 122 and 123, respectively on Plan 65M-3830) in Phase 1 within the Cathedral Town Community, subject to the following conditions:

 

  1. That Cathedral Town Ltd., and 404 Developments Inc. finance the cost of the design, construction and contract administration of the three parks (totalling 2.82 ha or 6.9 acres in area) to a minimum value of $140,000 per acre which totals approximately $966,000.00 inclusive of all applicable taxes;

 

  1. That, subject to compliance with these terms and conditions, the Town of Markham reimburse Cathedral Town Ltd., and 404 Developments Inc. up to $966,000.00 towards this project from development charges for park development under the understanding that Cathedral Town Ltd., and 404 Developments Inc. may contribute additional funds, which will not be reimbursed by the Town, towards the development of these parks;

 

  1. That Cathedral Town Ltd., and 404 Developments Inc. contribute an additional $100,000 towards facility upgrades in Victoria Square Park (existing Town park on Elgin Mills Road) to be built in conjunction with the construction of Blocks 121, 122 and 123, for which they will not be reimbursed by the Town;

 

  1. That the Town reimburse Cathedral Town Ltd., and 404 Developments Inc. for invoices paid on a single lump sum basis for all approved costs associated with the design, construction and contract administration, including all applicable taxes, of these parks up to a maximum of $966,000.00, less the 10% holdback to be released to them upon final assumption of the park by the Town, after sufficient Development Charges for park development have been collected (90% of a maximum of $966,000.00) at the building permit stage for residential lots within the Cathedral Town Community to warrant repayment in full to the maximum allowable. No interest on such invoices shall be payable by the Town;

 

  1. That owners / developers within the Cathedral Town Community, including Cathedral Town Ltd., and 404 Developments Inc., not receive any credit towards park development charges and continue to pay the park development charge at the building permit stage for all present and future development phases of subdivisions within the Cathedral Town Community;

 

  1. That Cathedral Town Ltd., and 404 Developments Inc. hire a landscape architect who is a full member of the OALA having custody and use of the Association seal, and approved by the Town, to provide professional design, contract document, and contract administration services to the satisfaction of the Town;

 

  1. That Cathedral Town Ltd., and 404 Developments Inc. conform with the Town’s standard park and open space approval process which includes development of several design concepts, holding community input meetings, presentation to selected Standing and Advisory Committees, as well as review and approval by the Planning and Urban Design Department in consultation with the Parks Operations Department. This process will also be informed by the Town’s on-going Recreation Master Plan Update Study which will establish park facility requirements and priorities;

 

  1. That Cathedral Town Ltd., and 404 Developments Inc. tender out the construction of the park works to a minimum of three bidders to the satisfaction of the Town and include a 2 year detailed maintenance contract for the parks to the Town’s satisfaction as part of the tendered works, the cost of which is the responsibility of Cathedral Town Ltd., and 404 Developments Inc.;

 

  1. That, notwithstanding the requirements of  Condition (8) above, Cathedral Town Ltd., and 404 Developments Inc. shall also maintain these parks to Town standards, from the time that it is built, until such time as the park would normally have been built in accordance with the Town’s park development strategy for Cathedral Town (which normally coincides with the time when sufficient Development Charges for park development have been collected within the Cathedral Town Community to warrant starting park construction). The Town will not reimburse Cathedral Town Ltd., and 404 Developments Inc. for costs associated with this additional maintenance obligation for these parks;

 

  1. That the Town amend the 2007 Capital Budget for Urban Design, Development Services Commission, and establish a capital project for these park works with a budget of $1,052,940 which includes $966,000 and an internal capital administration cost of $86,940 funded from the Development Charge Reserve (90% / $947,646) and tax-funded Capital Contingency 44-6900-6395-005 (10% / $105,294);

 

AND FURTHER THAT staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

Not applicable

 

FINANCIAL CONSIDERATIONS:

Development Charges are being collected in Cathedral Town to support the park development service levels of $140,000 per acre to a maximum of $966,000. The Town of Markham will reimburse Cathedral Town Ltd. and 404 Developments Inc. upon completion of the parks to the Town’s satisfaction, anticipated to be in 2008.

 

Staff recommends that the Town amend the 2007 Capital Budget for Urban Design, Development Services Commission, and establish a capital project for these park works with a budget of $1,052,940 which includes $966,000 and an internal capital administration cost of $86,940 funded from the Development Charge Reserve (90% / $947,646) and tax-funded Capital Contingency 44-6900-6395-005 (10% / $105,294).

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

PURPOSE:

This report seeks approval for Cathedral Town Ltd., and 404 Developments Inc. to finance the cost of design, construction and contract administration of three parks known as ‘the Arboretum’, ‘Park Square’ and ‘Panorama Park’ (Blocks 121, 122 and 123, respectively) in Phase 1 within the Cathedral Town Community.

 

BACKGROUND:

The three subject parks are part of the overall parks and open space master plan for Cathedral Town , Phase 1.  ‘The Arboretum’ (Block 121) is 2.22 ha (5.48 acres) in area, located at Woodbine Avenue and Reflection Road. ‘Park Square’ (Block 122) is 0.34 ha (0.84 acres) and is surrounded by Magic Avenue, Orr Farm Road, Bonheur Road and Gardon Street. ‘Panorama Park’ (Block 123) is 0.26 ha (0.64 acres) and is located at the corner of Betty Roman Boulevard and Woodbine Avenue.  The Town has agreed to the owner’s request to construct an arboretum on Block 121 provided that the owners contribute $100,000 to provide additional play facilities in Victoria Square Park. The arboretum site has remnant orchard trees on it now and will be developed as a passive park with trees, pathways and seating areas. Because active play facilities are not consistent with an arboretum theme, the owners have agreed to contribute an additional $100,000 towards the construction of a children’s play facility to be located directly north of the arboretum on public lands (existing Victoria Square Park).   

 

OPTIONS/ DISCUSSION:

In a letter dated September 5, 2006, Cathedral Town Ltd. and 404 Developments Inc. requested permission from the Town to allow them to proceed with the design and construction of three parks (Blocks 121, 122 and 123) within Phase 1 of Cathedral Town in advance of the Town’s projected schedule. Cathedral Town Ltd. and 404 Developments Inc. are motivated to build these parks early for marketing reasons and are hoping to start construction as early as possible.

 

In a letter dated April 30, 2007, Cathedral Town Ltd. and 404 Developments Inc. agreed to contribute $100,000 for proposed facility upgrades in Victoria Square Park to be built in conjunction with the construction of Blocks 121, 122 and 123.

 

In consideration of this request, this report seeks Council’s approval for the early delivery of these three parks by Cathedral Town Ltd. and 404 Developments Inc. in accordance with the recommendations noted herein. The intention is to have these parks under construction this year.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The Finance Department has reviewed this report and are in agreement with its recommendations.

 

RECOMMENDED BY:  

 

 

 

________________________                                                ________________________

Valerie Shuttleworth, M.C.I.P., R.P.P.                          Jim Baird, M.C.I.P., R.P.P.

Director of Planning & Urban Design                                        Commissioner of Development Services

                       

ATTACHMENTS:

Appendix A: Letter dated September 5, 2006 from Cathedral Town Ltd. and 404 Developments Inc.

Appendix B: Letter dated April 30, 2007 from Cathedral Town Ltd. and 404 Developments Inc.   

Appendix C: Key Map

 

 

Q:\Development\Design\linda\Parks\DSC Cathedral Town Financing Report.doc