Report to: Development Services Committee                                   Report Date: June19, 2007

 

 

SUBJECT:                          Markham Centre/PD 1-7 Area

                                            Servicing Requirements

                                               

PREPARED BY:               Alan Brown, Director, Engineering      ext. 7507

 

 

 

RECOMMENDATION:

 

That the staff report entitled “Markham Centre/PD 1-7, Area Servicing Requirements”, dated June 19, 2007, be received;

 

And that the principles of an agreement with the PD 1-7 developers for the financing of the Hwy 7 sanitary sewer, the Lonsmount/Sheridan stormwater management facility, storm sewers and the Class Environmental Assessment for Village Parkway, as set out in this report, be endorsed;

 

And that Mayor and Clerk be authorized to enter into Memorandums of Understanding with developers in the PD 1-7 area related to the construction  and financing of the Hwy 7 sanitary sewer, the Lonsmount/Sheridan stormwater management facility, storm sewers and Village Parkway reconstruction, in a form satisfactory to the CAO, Town Solicitor and Town Treasurer;

 

And that staff report back to Council on all agreements necessary to construct and finance the Highway 7 sanitary sewer, the Lonsmount/Sheridan stormwater management facility and Village Parkway reconstruction for Council approval;

 

And that the principles of an agreement with Lonsmount Construction for the conveyance of easements and property for the construction of the ultimate Lonsmount/Sheridan stormwater management facility and storm sewers as set out in this report, be endorsed;

 

And that the Mayor and Clerk be authorized to execute an agreement with Lonsmount Construction Ltd. and other related documents relating to the acquisition of the property and easements over the lands owned by Lonsmount Construction Ltd, as necessary for the purpose of  the construction of a stormwater management pond and storm sewers based on the principles set out in this report in a form satisfactory to the Chief Administrative Officer and Town Solicitor.

 

And that if by July 15, 2007 Lonsmount Construction Ltd. does not provide the necessary permanent and construction easements for the storm sewers and the stormwater management facility then staff be authorized to exercise the storm sewer option on the Sheridan lands;

 

And that the Mayor and Clerk be authorized to enter into Crossing Agreements with GO Transit to implement the construction of the Highway 7 Sanitary Sewer project, in a form satisfactory to the CAO and the Town Solicitor;

 

And that staff be authorized to file an amendment to the Class Environmental Assessment Study with the Ministry of the Environment for the Highway 7 sanitary sewer, to provide for the construction of a sanitary sewer on Main Street South Unionville;

 

And that the Mayor and Clerk to be authorized to enter into agreements with Ontario Realty Corporation and private property owners as may be required to obtain the lands and/or easements  necessary to implement the construction of the Highway 7 sanitary sewer project in a form satisfactory to the CAO and the Town Solicitor;

 

And that if staff are unable to come to an agreement with affected private property owners related to the property requirements by August 31, 2007, that the Town Solicitor, be authorized to apply for approval to expropriate the necessary private properties;

 

And that the Town Solicitor be authorized to retain a property appraisal firm, a qualified legal surveying firm, and an outside legal firm to assist staff with the negotiation or expropriation procedures pursuant to section 7(1)(h) of the Purchasing By-law (preferred supplier), to be funded from Engineering Capital Budget account 083-6200-6750-005 (Markham Centre Property Acquisition and Design:  Ponds 1-7 and SWM 2) to an upset limit of $100,000;

 

And that staff be authorized to do all things necessary including execution of documents and notices as required by the Expropriations Act:

 

And that the consultant services to undertake a Class EA study for the reconstruction of Village Parkway be awarded to SNC Lavalin Ltd. in the amount of $96,643.80 exclusive of GST, to be funded from the 2006 Capital Budget account 083-5350-7254-005 (Village Parkway Re-alignment) subject to receipt of funds from developers;           

 

And that the Engineering Department Capital Budget Account 083-5350-7254-005 for the Village Parkway Class Environmental Assessment Study be amended to $96,643.80 to be funded by developers;

 

And that staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

The development of the area north and south of Highway 7 from Warden Avenue to Sciberras Road is dependent upon the construction of a sanitary sewer on Hwy 7, a stormwater management facility on the Lonsmount/Sheridan lands and a storm sewer outlet from Hwy 7 to the stormwater management facility as per Attachment ‘A’ and ‘B’.

Development of the area will also require the reconstruction of Village Parkway from Highway 7 north to Landmark Court having regard to the Unionville Traffic Management Plan.

 

The Town has executed an agreement with Sheridan Nurseries for the acquisition of lands and easements for a stormwater management facility and has an option to build a storm outfall from Hwy 7 to the stormwater management facility through the Sheridan lands.

 

Separate negotiations with the PD 1-7 developers and Lonsmount Construction Ltd are ongoing to finalize principles of agreements for the financing and property acquisition for the infrastructure required to accommodate development in this area.

 

The preliminary design for the Hwy 7 sanitary sewer indicates easements will be required from abutting owners including Ontario Realty Corporation.  Staff are therefore requesting authority to acquire such easements either by negotiations or expropriation.

 

In order to determine the alignment of the sanitary sewer along Village Parkway, it is necessary to establish the final alignment and width of the roadway through the completion of a Class Environmental Assessment. 

 

Staff are requesting Council’s endorsement of principles of agreement and authorization to enter into the necessary agreements for the construction, financing, and acquisition of property/easement requirements to construct the necessary infrastructure to develop this area.

 

FINANCIAL CONSIDERATIONS:

The 2006 Capital Budget includes $79,500 in account 083-5350-7254-005 for the preparation of an Environmental Assessment for Village Parkway between Highway 7 and Landmark Court which is to be funded entirely by area developers.  Proposals have been received from consultants to prepare the Class EA and staff are recommending that SNC-Lavalin be retained to complete the assignment. The total value of the award is $96,643.80 which exceeds the2006 capital budget amount by $17,143.80.  Staff recommends amending the budget in 083-5350-7254-005 to $96,643.80 to be funded from Developer.

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

 

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

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

 

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

 

 

BACKGROUND:

 

Development of the Village Parkway/Hwy 7 area is dependent on new services.

As per Attachment ‘A’ and Attachment ‘B’ development of approximately 61 ha of land north and south of Hwy 7 from Warden Ave to Sciberras Road is dependant on a new sanitary sewer to be constructed on Highway 7 from Main Street to Village Parkway, the construction of  a stormwater management facility to be constructed on the Sheridan Nursery/Lonsmount lands and a storm sewer outlet from Hwy 7 to the stormwater management facility.

 

These lands are within Planning District 1-7 (PD 1-7) north of Highway 7 and Markham Centre south of Highway 7.  Lee Development and Sobey’s (formerly Treasureland) as noted in Attachment ‘B’ were approved by the OMB in 1994 but have not developed due to lack of sanitary sewage, storm sewer, SWM facility and reconstruction of Village Parkway.  These developments have been assigned a total 468 residential units of servicing allocation which, if they do not finance the necessary infrastructure, the Town will have to reconsider.

 

Amendment to Highway 7 Sanitary Sewer EA

Class Environmental Assessment studies were undertaken in 2003 for the Hwy 7 sanitary sewer and for the two Stormwater Management Facilities required to service the drainage area.   The Environmental Assessments were completed and filed enabling the design and construction of the projects to proceed subject to availability of property and developer funding. 

 

During the preliminary design of the sanitary sewer it became evident that the connection to the YDSS sewer at Hwy. 7 east of Main Street Unionville as proposed in the EA, which required a crossing of the Rouge River, would create an unacceptable amount of disruption to the river. An alternative alignment involving the construction of the sewer south on Main Street Unionville from Highway 7 to Richard Maynard Crescent and easterly to connect to the YDSS without crossing the Rouge River has been identified as a preferred routing as per Attachment ‘A’.  Because this alignment was not included in the original EA study, an amendment to the Class EA must be prepared and filed for public review.  A letter will be submitted to the abutting residents on Main Street and Ruland Maynard Crescent regarding the proposed construction and requesting any comments.

 

 Agreement with Sheridan executed.

The Town in April 2007 entered into a purchase and sale agreement with Sheridan Nurseries for the acquisition of lands that will enable approximately fifty percent of the stormwater management facility to be built.  In addition the Town has protected an option to acquire permanent and temporary easements and construct a storm sewer through their site from Hwy 7 to service a portion of the drainage area.

 

In order to minimize disturbances to Sheridan’s retail operations during peak periods, the agreement requires that the construction of the storm sewer within the Sheridan lands can only be undertaken from August 1 to March 31, excluding December, of any year .

 

Region widening of Hwy 7 east of Verclaire Drive is dependent on Municipal Works

At the request of the Town, the Region of York deferred the widening of Hwy 7 from approximately Verclaire Gate to Sciberras Road until such time as the Town constructs the Hwy 7 sanitary sewer and a storm sewer outlet is available to service the Region’s right-of-way.  Subject to the construction of the storm and sanitary sewers by the Town in late 2008 the Region could complete the reconstruction of Hwy 7 to Sciberras Road by late 2009/summer 2010.

 

Status of Sobeys

Staff have held preliminary discussions with representatives of Sobeys who have acquired the Treasureland site at the northeast corner of Highway 7 and Village Parkway. Sobeys have indicated an interest in developing the site with a grocery store component as a part of a mixed use development including a residential apartment building. The grocery store is not recognized in the Official Plan and zoning approvals previously granted by the OMB, and todate no formal applications have been submitted by Sobeys.  Sobey’s were encouraged to meet with Lee Development Limited to finalize funding arrangements for servicing.

 

Storm Sewer Options

As noted in Attachment “B” staff are considering three storm outfall options which have to be finalized by July 15, 2007 so that the design, agency approvals and construction can commence by August 2008.  The three options are:

 

Option 1 - Lonsmount option

  • Construction of storm sewer on future alignment of Birchmount Road and Riverside Blvd
  • Construction of ultimate Stormwater Management Facility on Lonsmount/Sheridan lands

 

Option 2 - Lonsmount/Sheridan option

  • Construction of storm sewer on future right-of-way at mutual boundary from Hwy 7 to Stormwater Management Facility
  • Construction of ultimate Stormwater Management Facility on Lonsmount/Sheridan lands

 

Option 3 - Sheridan option

  • Construction of storm sewer in easement on Sheridan lands from Hwy 7 to Stormwater Management Facility
  • Construction of interim Stormwater Management Facility on Sheridan lands

 

The Sheridan option (#3) while slightly less in capital cost compared to option 1 and 2 will be ultimately more expensive for the upfront financing developers as  there are throw away costs associated with building an interim Stormwater Management Facility which will not be eligible for development charge credits or compensation by the Town.

 

Option 1 and 2 will however require the PD 1-7 developers to size and construct the storm sewers to accommodate the development of certain portions of Lonsmount lands which they will not get reimbursed for until Lonsmount develops.

 

PD 1-7 Memorandum of Understanding/Credit Agreement

Staff have invited the property owners in the PD 1-7 drainage area to meetings regarding the financing of the sanitary and storm related infrastructure to accommodate development in this area.  Only 2 owners at this time - Lee Development Ltd. (west of Village Parkway) and A. Shaw (White Rose site) - are willing to finance the infrastructure delivery.

 

These works are currently included in the ASDC by-laws for PD 1-7 and Markham Centre lands that will discharge to these works.  

 

Subject to Council and senior management approval, the final agreed to principles would form the basis of a Memorandum of Understanding and a credit agreement between the Town and the funding developers.  Staff will report back to Council for approval of the final credit agreement.

 

PD 1-7 Developers

  • Provide upfront financing for the construction of the Hwy 7 sanitary sewer (± $4,800,000.00) prior to tendering of the construction contract;
  • Provide upfront financing for the Village Parkway Environmental Assessment in the amount of ±$97,000 prior to the award of the Class EA study.
  • Upfront Lonsmount’s local storm sewer cost
  • Provide additional letters of credit if required by the Town based on the tender process;
  • Enter into a credit agreement with the Town for the construction and financing of the  sanitary and storm infrastructure prior to award of construction tender(s);
  • Submit updated master servicing designs for the PD 1-7 area by June 15, 2007
  • Provide upfront financing for the construction of either the ultimate or interim stormwater management facility and storm sewers ($±2,100,000.00) prior to tendering of the construction contract;
  • Provide upfront financing for the design and construction of Village Parkway prior to the award of tenders.

 

Town

  • Enter into a credit agreement prior to the tendering of the infrastructure which will outline the repayment schedule;
  • Subject to the necessary approvals, properties and agreements, tender the Hwy 7 sanitary sewer and stormwater management facility by summer 2008;
  • If by July 15, 2007 the Lonsmount storm sewer easement and stormwater management property are not available, exercise its option to construct the storm outfall through the Sheridan lands;

 

                           

“Lonsmount Construction Memorandum of Understanding/Agreements”

 Staff in August 2006 began negotiations with Lonsmount Construction as to opportunities to advance construction of the ultimate storm sewer and stormwater management pond prior to development of their property.  Recent negotiations have resulted in the following principles:

 

Lonsmount

-          Provide a construction easement and permanent easement for the storm sewer outfall along either the future Birchmount Road and Riverside Drive alignment or the East alignment  by July 15, 2007

-          Dedicate the SWM pond land to the Town of Markham by July 15, 2007 based on the interim design

-          Dedicate any additional lands required based on the final stormwater management pond design requirements (anticipated by late, 2007).

-          Pay the local share of the Birchmount/Riverside storm sewers and stormwater management facility costs to the PD 1-7 upfront developers at the first phase of their development utilizing the sewer and stormwater management pond.  The local share will be the estimated cost of the storm sewer and stormwater management pond required to convey flows from the Lonsmount lands based on standard engineering flow generation rates determined at the design stage.

-          Submit their servicing concept drawing for the Lonsmount land to the Town by June 15, 2007.

-          Enter into a credit agreement for the SWM lands prior to draft plan approval.

 

Town

-          Design and construct the storm outfall along the future Birchmount Road and Riverside Drive alignment or the East alignment. 

-          Size the storm sewers and space manholes appropriately to accommodate the future development of the Lonsmount lands. 

-          Require a draft plan condition on future Lonsmount development benefiting from the storm sewer to make arrangements with the Markham Centre PD 1-7 developers who are upfronting the construction costs to pay the local share of the storm sewer and stormwater management pond prior to execution of any subdivision agreement. 

-          Assist in the negotiation of a contribution of the storm sewer oversizing and SWM pond oversizing with the York Region to accommodate the Hwy. 7 flows.

-          Include the storm sewer over-sizing cost in the ASDC #9 for Area PD 1-7.

-          Include the stormwater management pond land and construction cost in the ASDC for Areas 9, 42B-6 and 42B-8.

-          Finalize the centerline alignment of Birchmount Road and Riverside Drive along the storm sewer route to avoid future relocation of the sewer.

-          Provide Lonsmount the opportunity to review the sewer and pond designs during preliminary design development, prior to first submission of the design and following receipt of any agency comments.

-          Provide ASDC credits to Lonsmount for the SWM pond land at the first site plan or subdivision agreement stage utilizing the Stormwater Management Facility in accordance with a credit agreement.

 

If the property and easements for the storm sewer and stormwater management pond over the Lonsmount lands cannot be secured by July 15, 2007 then the Town will have to abandon negotiations with Lonsmount and proceed with the Sheridan storm sewer alignment and interim stormwater management pond in order to meet the 2008 construction schedule.

 

 

 

 Sanitary Sewer Easements Required

A total of seven permanent easements will be required to accommodate the sanitary sewer construction as per Attachment ‘A’.  Three permanent easements are owned by the Ontario Reality Corporation (ORC) while the other four permanent easements are on private lands. Staff are requesting authorization to initiate negotiations with ORC and private property owners and for the Mayor and Clerk to execute agreements with all affected landowners to acquire the required land/easements subject to satisfactory to the CAO and Town Solicitor.  If the easements on private property cannot be negotiated then expropriation proceedings will have to be commenced or the sewer design modified to delete connections to service abutting lands.

 

GO Transit Crossing Agreement

The sanitary sewer will cross the GO railway track located west of Main Street Unionville as per Attachment ‘A’. Staff is requesting authorization to enter into a crossing agreement with GO Transit in a form satisfactory to the CAO and Town Solicitor.

 

Village Parkway Environmental Assessment

The Unionville Traffic Management Plan was prepared in May 2002 by BA Consulting Group to evaluate alternative configurations of the north-south collector roads intersecting with Highway 7 including Village Parkway.  The report made recommendations regarding traffic calming features and the configuration of the Highway 7/Village Parkway intersection.

 

 A Municipal Class Environmental Assessment has to be carried out in accordance with the requirements of the Environmental Assessment Act to develop and evaluate alternative methods of accommodating anticipated future traffic volumes while achieving the objectives of the Unionville Traffic Management Plan and to identify a preferred alternative design concept for the reconstruction of Village Parkway.

 

Engineering and Purchasing staff have received and evaluated proposals from qualified consulting firms and are prepared to recommend award of the assignment to prepare the EA study subject to the receipt of funds from the developers. It is anticipated that the EA study will take approximately 6 months to complete.

 

The EA study is estimated to cost $96,643.80 whereas the approved 2006 Capital Budget (083-5350-7254-005) had an allowance of $79,500.  Staff recommends amending the budget in 083-5350-7254-005 to $96,643.80 to be funded by Developer.

 

Preliminary Implementation Schedule

The preliminary schedules for the Village Parkway EA, the Highway 7 sanitary sewer and the stormwater management works are as follows (this preliminary schedule is subject to the receipt of funding from the area developers as described in this report, acquisition of necessary easements, agency approvals and execution of appropriate agreements):

 

Village Parkway Class EA 

·        Commence Study…………………..…..   July 2007

·        Complete Study, file ESR………………   January 2008

 

Stormwater Management Facility & Storm Sewers

·        Complete design…………………..........   December 2007

·        Approvals received……………………..   March 2008

·        Property acquisition…………………….   July 2007 to April 2008

·        Tender period…………………………...March 2008 to May 2008

·        Tender award…………………..……….  May 2008

·        Construction start……………………….August 2008 (pond), October 2008 (sewer)

·        Construction complete………………….   December 2008 (pond & sewers)

 

Highway 7 Sanitary Sewer

·        Complete design…………………..........   July 2007

·        Approvals received……………………..   October 2007

·        Property acquisition…………………….   July 2007 to January 2008

·        Tender period…………………………...November 2007 to January 2008

·        Tender award…………………..……….  February 2008

·        Construction start……………………….  March 2008

·        Construction complete………………….   November 2008

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The Planning, Legal and Finance Departments have reviewed and commented on this report.

 

 

 

 

RECOMMENDED BY:  

 

 

 

 

 

 

 

Alan Brown, C.E.T.

Director of Engineering

 

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

Commissioner of Development Services

 

 

 

 

ATTACHMENTS:

Attachment A             Hwy 7 Sanitary Sewage System & Property Requirements

Attachment B             Lonsmount/Sheridan Stormwater Management Drainage Area & Storm Sewers

 

 

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