Report to: General Committee – Finance and Administration           Report Date: May 14, 2007

 

 

SUBJECT:                          Development Charge Update       

PREPARED BY:               Jennifer Nelson, extension 2640

 

 

 

RECOMMENDATION:

That the report titled “Development Charge Update” be received;

 

And that a sub-committee of Council be established to participate in the review of  policy options and proposed charges for the Town of Markham Hard Service and Area Specific Development Charge By-laws;

 

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

 

 

FINANCIAL CONSIDERATIONS:

Not applicable

 

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

 

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

 

PURPOSE:

Staff is currently completing the work required for the development charge background study for hard services.   A number of substantial policy options are being contemplated through this process.  To ensure that Council has sufficient time to understand and debate these changes, Staff is recommending that a sub-committee of Council be established.  

 

 

BACKGROUND:

In 2006 Council authorized staff to update the hard services and area specific development charge (DC) by-laws.   Prior to the DC by-laws being adopted by Council, there are three mandatory steps that must be completed to ensure compliance with the Development Charges Act.  The first step is to complete a background study, followed by a public meeting, and finally adoption by Council.

 

Staff has completed all the necessary tasks required to prepare a background study.  Through the completion of these tasks a number of policy issues became apparent.    These issues are emerging as a result of the complexities the Town is encountering with development, both the Town’s construction of infrastructure and the Developer’s construction of residential and non-residential buildings.  In general terms, policy options are being considered on:

·        The inclusion/exclusion of local services in the development charge

·        The impact of deferring projects to future growth outside of current urban boundaries

·        The impact of intensification on infrastructure requirements

·        Implications of assessing development charges on a per unit versus land area basis

·        The impact of reducing/consolidating the 28 area specific by-laws

 

In addition, the preliminary results indicate a significant increase in the Town Wide Hard Development Charge (over 60%).  This increase is the result of both increased cost for projects included in the existing capital program, and new projects that were not previously included in the capital program.

 

In order to ensure that Council members have ample opportunity to be informed and involved in the discussion and debate of the various policy options, as well as the review of the hard services capital program and any decision to remove or defer projects from the capital program, it is recommended that a sub-committee of Council be established.  A sub-committee format would allow for more detailed review and discussion by Council members.

 

 

 

ENVIRONMENTAL CONSIDERATIONS:

Not Applicable

 

 

ACCESSIBILITY CONSIDERATIONS:

Not Applicable

 

 

 

ENGAGE 21ST CONSIDERATIONS:

Not Applicable

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Not Applicable

 

 

RECOMMENDED

                            BY:    ________________________          ________________________

                                      Barb Cribbett, Treasurer                     Andy Taylor, Commissioner

                                                                                                Corporate Services