Report to: General Committee Finance and Administration Report Date:
SUBJECT: Development Charge Deferral – Box Grove Hill Developments Inc
PREPARED BY: Jennifer Nelson, extension 2640
RECOMMENDATION:
That the report titled “Development Charge Deferral – Box Grove Hill Developments Inc” be received;
And that the Mayor and Clerk be authorized to execute an agreement with Box Grove Hill Developments Inc for the deferral of the Town Wide Hard and Area Specific development charges on 2.884 hectares of land pending the approval of the land severance application B16/07 on Block 185, Plan 65M-3907, in a form satisfactory to the Town Solicitor;
And that the
agreement provide that the Town Wide Hard and Area Specific Development Charge
be deferred pending the approval of the land severance application B16/07 to be
considered by the Committee of Adjustment on
And that the agreement provide that in the event the land severance application is not approved, that the Town Wide Hard and Area Specific Development Charges be immediately payable on the 2.884 hectares;
And that the agreement provide that in the event the land severance application is not approved, and Box Grove Hill Developments Inc does not provide payment, that the Town Wide Hard and Area Specific Development Charges on the 2.884 hectares be added to the tax roll in accordance with section 32 of the Development Charges Act, 1997.
And that Staff be authorized and directed to do all things necessary to give effect to this resolution.
EXECUTIVE SUMMARY:
Not applicable
FINANCIAL CONSIDERATIONS:
The deferral of development charges is a cashflow issue. The deferral simply postpones the Town receiving the development charge funds.
In the event that the severance application is approved without appeal, the development charges on the 2.884 hectares will be payable upon issuance of a building permit, at the prevailing rates, in accordance with the DC by-laws.
In the event that the severance application is denied, the development charges on the 2.884 hectares will be payable immediately. The Town does have the authority under section 32 of the Development Charges Act to add these charges to the tax roll should payment not be received in a timely manner.
1. Purpose 2. Background 3. Discussion 4. Financial
5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6.
Attachment(s)
PURPOSE:
The purpose of this report is to seek Council approval to enter into an agreement with Box Grove Hill Developments Inc that would allow for the deferral of the Town of Markham Town Wide Hard and Area Specific Development Charges on 2.884 hectares of land pending the approval of the land severance application B16/07 on Block 185, Plan 65M-3907.
BACKGROUND:
Box Grove Hill Developments Inc submitted a building permit application to construct a 4 storey medical building of approximately 60,000 square feet on part of Block 185, Plan 65M-3907 on April 13, 2007. The total land area of this site is 3.75 hectares. The 4 storey medical building only requires a site of 0.866 hectares. Box Grove Hill Developments Inc has no immediate plans to develop the remaining 2.884 hectares (3.75ha – 0.866ha).
On May 10, 2007
Box Grove Hill Developments Inc submitted an application to sever the 0.866
hectares from the larger parcel (3.75 ha).
The severance application is scheduled for consideration by the
Committee of Adjustment on
The Town’s Development Charge By-laws require the payment of Town Wide Hard and Area Specific development charges on the entire parcel of land for which the building application is being made, prior to the issuance of the building permit. This would require Box Grove Hill Developments Inc to pay development charges on the entire 3.75 hectare site or $458,031.77.
In accordance with section 27(1) of the Development Charges Act, 1997, “a municipality may enter into an agreement with a person who is required to pay a development charge providing for all or any part of a development charge to be paid before or after it would otherwise be payable.”
Box Grove Hill Developments has requested that consideration be given to the severance application in process. Had the severance application been approved prior to the building permit being available for issuance, the development charges payable on this site would only be assessed on the 0.866 hectares. This would reduce the development charges payable from $458,031.77 to $120,981.57.
BUSINESS UNITS CONSULTED AND AFFECTED:
Legal Department has reviewed this report.
RECOMMENDED
BY: ________________________ ________________________
Barb Cribbett, Treasurer Andy Taylor, Commissioner
Corporate Services
ATTACHMENTS:
Letter from Box
Grove Hill Developments Inc dated