Status of Allocation and Total Housing Stock (In Units)

Since June 2006, Staff have been proceeding with draft plan approval and site plan approval of developments with assigned allocation. The majority of these developments have moved through the system to execution of subdivision or site plan agreements and building permits. However, a number of applications have yet to be approved. Table1 indicates the remaining units that are available (as of January 1, 2008) in the system that can move to building permit stage in the coming months, representing our available housing supply to the end of 2010:

TABLE 1 – TOTAL HOUSING STOCK
	Registered Un-built	Draft Plan or Site Plan Approved	Remaining Assignment to be Approved	Total Housing Stock Available to 2011
Singles	1,763	968	69	2,800
Semis	257	542	42	841
Townhouses	402	921	340	1,663
Apartments	0	2,138	1,970	4,108
Total	2,422	4,569	2,421	9,412

It should be noted that our historical yearly residential building activity (based on a five year average) is roughly 3,500 units per year. At this rate the 9,412 units will provide building permit activity for approximately 2.6 years (or to mid 2010).

Table 2 provides an update, by development area, of the status of developments as of January 1, 2008 (including distribution of June 2006 servicing allocation).

TABLE 2 – UPDATE OF SPRING 2006 ASSIGNMENT (as of January 1, 2008)
Development Area	Total Assignment to Development Area		Draft Approved or Site Plan Approved & Registered (Allocated to a Development)		Remaining Assignment to be Draft Approved or Site Plan Approved
	A=B+C		B		C
	Units	People	Units	People	Units	People
Angus Glen	315.0	1,069.6	315.0	1,069.6	-	-
Berczy	821.5	2,611.9	821.5	2,611.9	-	-
Box Grove	2,380.0	8,381.7	2,199.0	7,844.0	181.0	537.7
Cathedral	1,808.0	5,962.2	1,649.0	5,522.4	159.0	439.8
404 North	-	-	-	-	-	-
Cornell	3,136.1	10,179.6	3,103.5	10,091.5	32.6	88.2
Greensborough	1,042.0	3,677.7	1,042.0	3,677.7	-	-
Leitchcroft	431.0	1009.2	413.0	968.3	18.0	40.9
Markham Centre	3,778.0	8,757.0	2,673.0	6,248.7	1,105.0	2,508.4
Markham Road South	379.4	980.1	267.0	702.8	112.4	277.2
Milliken Main Street	900	2,110.1	543.0	1,269.5	357.0	840.6
OPA 15	522.0	1,279.3	522.0	1,279.3	-	-
South Unionville	411.0	1,334.6	382.0	1,243.2	29.0	91.5
Swan Lake	446.0	1,270.0	446.0	1,270.0	-	-
Villages of Fairtree	614.0	1,997.1	614.0	1,997.1	-	-
Wismer Common	1,710.0	5,703.2	1,537.0	5,287.1	173.0	416.1
Infill Developments	1,004.0	2,803.0	1,004.0	2,803.0	-	-
Reserve		632.7				632.7
TOTAL	19,698.0	59,759.0	17,531.0	53,886.1	2,167.0	5,240.3

It is anticipated that the majority of the remaining 2006 assignment to be approved (2,421.1 units) will receive draft approval/site plan approval in 2008.

Reserve Update and Redistribution

As noted in Table 2 above, 632.7 population remains in the Town reserve. However, since the 2006 distribution (where the reserve was left with a population of 832) Council has approved infill developments using the reserve and Staff have included this allocation distribution in the above table. The reserve represents “real” servicing allocation capacity that can advance to the building permit stage. Council previously adopted a “use it or lose it” policy for developments that have not proceeded in a timely basis. In accordance with the policy, staff have reviewed all applications that have either been approved and not registered or assigned allocation by Council and not proceeded to draft plan/site plan approval. Staff have identified three applications for re-consideration under this policy.

Two of the applications have received approval but have not moved forward to the agreement stage. Shouldice Hospital was draft approved by Council in 1992 for a total of 606 apartment units. Council previously revoked 406 units (in November 2005), leaving 200 units. Staff are now proposing to defer the remaining 200 units of current allocation to 2011 conditional allocation, which will return 200 apartment units back into the reserve. Dr. Shouldice has verbally indicated that he accepts this recommendation.

Emery Investments received site plan approval for 77 units (one building) of a two building apartment complex in Berczy Village. However, the underground parking garage is combined for both buildings, and Phase 1 has not advanced. Staff discussed with Emery the assignment of the remaining 113 units for the second building through the 2011 conditional assignment, provided they proceed with the first 77 units. Emery Investments has indicated that they would prefer to construct both buildings concurrently and have agreed to defer the current 77 unit assignment to the 2011 conditional assignment, provided they also receive the 113 units needed to construct both buildings concurrently. Therefore, the 77 apartment units can now be returned to the reserve.

The third assignment relates to 150 townhouse units set aside in the 2006 distribution as an incentive for a land owner in Box Grove to dedicate to the Region lands required for the completion of the Donald Cousens Parkway and realignment of 14^th Avenue. As of the date of this report, the current land owner (Vettesse) has not dedicated the land required for the road. However, the owner is actively working on a draft plan of subdivision which includes 70 townhouse units and a future development block (of approximately 100 units) which is reserved for construction activity of Regional infrastructure. A Memorandum of Understanding is being prepared for signature by the property owner, the Region and the Town outlining obligations of all three parties, including the provision of the necessary rights of way by spring 2008. Therefore, staff are recommending that 70 townhouses units remain as an incentive to complete the MOU and dedicate the lands and 80 townhouse units be returned to the reserve.

Table 3 summarizes the revised status of the reserve, based on these recommended actions:

TABLE 3 – STATUS OF RESERVE
Development	Units	Population
Existing Reserve		632.7
Shouldice	200 apts.	454.0
Emery Investments	77 apts.	174.8
Box Grove	80 t.h.’s	225.6
Total Revised Reserve		1,487.1

With additional population returned to the reserve, there is an opportunity to assign current “real” servicing capacity to applications that are ready to proceed. Staff have reviewed all applications (totaling almost 26,000 units) requiring allocation, using the criteria set by Council previously:

· completion of key transportation infrastructure;

· implementation of Markham Centre;

· infill development along key transit corridors;

· affordable housing;

· development with public benefit;

· development with smart growth principles;

· completion of development blocks;

· use of allocation in a reasonable time frame,

Staff have also given consideration to Town and Regional policies in support of sustainable development through LEED.

Staff recommend the developments outlined in Table 4 receive allocation from the revised reserve subject to the noted conditions:

TABLE 4 – RECOMMENDED DISTRIBUTION OF REVISED RESERVE
Development	Units	Population	Conditions
Revised Reserve		1,487.1
Gunovski (Hagerman Corners)	8 singles	29.6	Infill site
History Hill (Wismer Commons)	60 apts.	136.2	LEED certification
Mackwood/Springhill (Cornell High Density)	205 apts.	465.4	LEED certification
Cornell Trustee	132 singles	488.4	Funding for 9^th Line storm sewer (as per February 5, 2008 report)
Milliken Trustee	10 towns	28.2	Conditions required in June 2006 report
Affordable Housing (MICAH Project, Infill)	100 apts.	227.0	Affordable Housing
Post Office (Infill in Thornhill)	9 towns & 37 apts.	109.4	Infill - subject to OMB settlement
Total Remaining in the Reserve		2.9

This recommended distribution differs slightly from the proposed distribution previously presented to DSC and the Developers Round Table in that the assignment reserved for the Markham Inter-Church Committee for Affordable Housing (MICAH) affordable housing project (as approved by Council on September 26, 2006) was not previously noted.

The Gunovski development is an infill site in Hagerman Corners that has been waiting for allocation for some time and the owner is ready to proceed with the development. History Hill and Mackwood/Springhill are high density developments in Wismer and Cornell, respectively, that meet the “infill along key transit corridor” criteria.

It should be noted that the History Hill proposal intends to proceed under the Region’s “Sustainable Development Through LEED” policy. The project has a current assignment of 150 units. However, the first phase of this project is 260 units (two buildings joined by an underground garage). Staff are recommending an allocation of 60 apartment units and the owner will be seeking a 29%, or 50 unit bonus under the Regions “Sustainable Development Through LEED” policy. A separate report, specific to this proposal will be brought forward at a later date.

A storm sewer has to be constructed on 9^th Line and part of Lindvest Development lands within Cornell from approximately Highway 7 to a storm water management pond located within the Lindvest lands. The sewer will be sized to service existing residential lands North of Hwy 7 and west of 9^th Line, portions of Markham Stouffville Hospital’s lands the Regional 9^th Line right-of-way and Cornell Lands. The Town’s share (approximately $900,000) of the project would normally be funded directly by the Town (tax funded, not development charges). However, Lindvest Development/Cornell Landowners Group have agreed to incur the Town’s and Markham Stouffville Hospital’s share in return for servicing allocation as outlined in a report titled “Ninth Line Sewer in the Cornell Community” being brought forward to the February 5^th 2008, Development Services Committee. Staff are proposing a direct current assignment to the Cornell Trustee of 132 single units from the reserve and a future 68 single units assignment in 2011 subject to Council endorsement of the “Ninth Line Sewer in the Cornell Community” report. In the previous presentations to DSC and the Developers Round Table, Staff proposed assignment of these units directly to an individual development (Lindvest Developments). The Trustee for the Cornell Developers Group has since indicated that a direct assignment to an individual developer is problematic in the context of the Cornell Landowners Group Agreement. Therefore, Staff are recommending that subject to resolution of this issue between the Group and Lindvest Development the cost of the 9^th Line sewer, and the proposed offsetting assignment of 200 single units (132 from reserve and 68 from 2011 allocation) be directed to the Cornell Landowners Group.

The Trustee for the emerging Milliken Mills Secondary Plan area group has indicated that 10 additional townhouse units are required to ensure the construction of key roads as part of the Aldorovandi subdivision. Finally, a tentative settlement of the OMB hearing related to the redevelopment of the Post Office site on Yonge Street in Thornhill requires 46 units to be set aside.

Status of Key Regional Infrastructure

Regional Council, on November 15, 2007 adopted recommendations of a Regional staff report entitled “Servicing Allocation and Future Regional Conditions For Draft Plan of Subdivision Approval”. The report outlined that, for Markham, there are two key Regional infrastructure projects that need to be operational. They include the construction of the southeast sanitary collector and the expansion of the Duffin Creek WPCP. The Duffin Creek WPCP is currently on schedule for completion and to be operational by January 1^st 2011. However, the Southeast Collector Trunk Sewer has been delayed to the beginning of 2013 due to complications with the individual environmental assessment. To ensure growth can continue over this two year delay period, the Region is proposing storage measures within the YDSS system, on a temporary basis.

2011 (Conditional) Allocation from Region

As the YDSS storage option will not be sufficient to accommodate full development growth, the Region is providing for restricted growth for one year on a municipality by municipality basis. In our case, this one year allocation release is based on the Region’s 2011 growth forecast for Markham of 2,978 units at 3.42 persons per unit for a population of 10,185 people. Out of this total, the Region is setting aside a minimum 30% for high density developments and infill projects within Regional Centres and Corridors and Local Centres and Corridors, with the remaining 70% meant for low density development to complete secondary plan areas. Table 5 summarizes the 2011 Conditional Allocation.

TABLE 5 – 2011 (CONDITIONAL) ALLOCATION
	Units	Population
Less Intensification Reserve	968	3,310
Remaining to Complete Communities	2,010	6,875
Total	2,978	10,185

Draft plan approvals issued under this allocation are to be prioritized to achieve strategic municipal planning objectives including:

Completion of existing neighbourhoods
Intensification and/or infill
Transit oriented development
Strategic community benefits, etc.

Triggers for 2011 Allocation

To ensure construction and operation of the required Regional infrastructure (Duffin Creek WPCP and storage option) coincides with occupancy of developments receiving this 2011 assignment, the Region has established triggers related to timing of the released lands for development relative to the infrastructure construction and delivery.

For low density developments, it takes approximately one year from the time of pre-sales to occupancy of a building with actual construction taking around 6 months. Based on this time frame, the Region will not release a low density development for pre-sales until one year in advance of the operation date of the treatment plant. As the targeted date of operation of the plant is January 1, 2011, pre-sales for low density developments can be released by January 1, 2010 at the earliest, provided the construction of the treatment plant remains on schedule. In addition, building permits cannot be released until the subdivision is registered. As it takes approximately 6 months to construct a ground related housing unit, release for registration of plans of subdivision will not take place until July 1, 2010 (at the earliest) assuming the construction of the plant remaining on schedule.

A Regional report on Servicing Protocol, adopted by Regional Council on June 21, 2007 outlined proposed triggers for the site plan approval process and recommended that regional staff report back on the process, following consultation with local municipalities and the industry. However, the servicing allocation report approved by Regional Council in November 2007 did not recommend a trigger system for the site plan approval process and construction of high density projects. We will continue to work with the Region on the need for a process to deal with triggers for site plan approval.

For high density developments, the construction period is generally in the order of 18 months; assuming a 6 month period for selling the units and construction period of 18 months, the release for pre-sales would be January 1, 2009 and release of the site plan agreement and issuance of building permits would be July 1, 2009. Both dates are considered the earliest time frame and are subject to the construction of the treatment plant remaining on schedule. Also, Council may wish to exercise additional caution with respect to these time frames, depending on the status of the treatment plant expansion, as individual high density projects proceed.

The following chart shows a graphical description of triggers for draft plan of subdivision (a similar table for the approval of high density projects is not included):

Distribution of 2011 Conditional Allocation

Using the 2,978 unit equivalent population of 10,185, staff have reviewed the applications on file, various developer submissions (Appendix “D”) and the Council approved criteria and ranking. Table 6, below, is a summary of Staff recommended distribution of the 2011 conditional allocation, based on this review and consideration. A more detailed Table, showing information relating to each development area is attached to the report (see Appendix “A”). It should be noted that, prior to the recommended distribution of this 2011 conditional allocation, 31% of allocation assignment to date went to high density projects. When the recommended distribution is added in, our distribution still meets the intent of the Regions minimum 30% target for high density development, with 42% of our total allocation going to high density projects.

TABLE 6 - RECOMMENDED DISTRIBUTION OF 2011 CONDITIONAL ALLOCATION
	Rk	Total Assignment before Winter 2008		Reserve Distribution		2011 Conditional Assignment (Winter 2008)		Total Assigned Proposed
	Rk	Units	Pop	Units	Pop	Units	Pop	Units	Pop
Angus Glen/Deacon	4	315.0	1,069.6	-	-	286.0	886.6	601.0	1,956.2
Berczy Village	4	821.5	2,611.9	(77.0)	(174.8)	467.0	1,212.4	1,211.5	3,649.6
Box Grove	3	2,380.0	8,381.7	(80.0)	(225.6)	-	-	2,300.0	8,156.1
Cathedral	3	1,808.0	5,962.2	-	-	300.0	1,110.0	2,108.0	7,072.2
404 North		-	-	-	-	126.0	413.4	126.0	413.4
Cornell	2	3,136.1	10,179.6	337.0	953.8	418.0	1,332.1	3,891.1	12,465.5
Greensborough	4	1,042.0	3,677.7	-	-	273.0	889.5	1,315.0	4,567.3
Leitchcroft	3	431.0	1,009.2	-	-	132.0	299.6	563.0	1,308.8
Markham Centre	1	3,778.0	8,757.0	-	-	600.0	1,362.0	4,378.0	10,119.0
Markham Road South	3	379.4	980.1	-	-	131.5	298.5	510.9	1,278.6
Milliken Main Street	3	900.0	2,110.1	10.0	28.2	156.0	439.9	1,066.0	2,578.2
OPA 15	2	522.0	1,279.3	-	-	-	-	522.0	1,279.3
South Unionville	4	411.0	1,334.6	-	-	18.0	57.8	429.0	1,392.4
Swan Lake	4	446.0	1,270.0	-	-	48.0	109.0	494.0	1,379.0
Villages of Fairtree	4	614.0	1,997.1	-	-	-	-	614.0	1,997.1
Wismer Commons	4	1,710.0	5,703.2	60.0	136.2	300.0	1,110.0	2,070.0	6,949.4
Infill		1,004.0	2,803.0	(46.0)	(88.0)	200.0	454.0	1,158.0	3,169.0
Total		19,698.0	59,126.3	204.0	629.7	3,455.5	9,974.9	23,357.5	69,731.0
Permitted			59,759.0		632.7		10,185.0
Remaining (reserve)			632.7		2.9		210.1

Conditions required for 2011 distribution

Table 7 below outlines conditions attached to the 2011 proposed allocation by development area. A number of these conditions were applied to previous allocation assignments and are noted again. Others are new with this assignment. All will be reviewed and secured through specific development approvals.

TABLE 7: CONDITIONS REQUIRED FOR 2011 DISTRIBUTION
Development Area	Condition (s)
Angus Glen/Deacon	Construction of bridge between East and West Village by Dec 1, 2009
Berczy Village
Box Grove	Dedication of portions of Don Cousens Parkway and 14^th Avenue right-of-way to the Region by May 1, 2008
Cathedral
404 North	Dedication of property and funding for construction of Woodbine Bypass (Phase 2B & 3) by March 1, 2008
Cornell	Funding of 9^th line storm sewer
Greensborough
Leitchcroft	LEED certificated high density buildings
Markham Centre	LEED certificated high density buildings
Markham Road South
Milliken Main Street	Completion of Gorvette Road & Midland Avenue Extension (completion date to be finalized)
South Unionville	Completion of South Unionville Avenue to Kennedy Road by December 1, 2008
Swan Lake
Wismer Commons

At the time of writing this report the conditions and timeframes were still being prepared and will require updating at the planning application stage, therefore, Table 7 will be updated periodically as new conditions are identified and endorsed by Council through the development review process.

Proposed distribution vetted through Development Services Committee and Developers Round Table

The proposed distribution was presented to Development Services Committee on November 27, 2007 and to the development industry at a Developers Round Table meeting held on December 5, 2007, in a draft form for discussion and comment.

Staff have received many comments (both oral and written) on the proposed distribution. Generally, there seems to be recognition that, given the minimal amount of allocation available to the Town from the Region and using the allocation criteria and added considerations, the proposed distribution is fair. Table 8 summarizes written comments received following the December 5 Developers Round Table meeting. Some of these have resulted in changes to the recommended distribution. Those changes are also noted in the table.

TABLE 8: SUMMARY OF DEVELOPER WRITTEN SUBMISSIONSS
Developer	Request	Staff recommendation
Cornell Trustee	Trustee is requesting a total of 1,300 units, including 305 units from the Town reserve	Staff recommends 755 units (337 from reserve & 418 for 2011). This includes 355 units to Cornell Centre (including 205 from the reserve) and 400 units for the rest of Cornell (including 132 from the reserve)
Angus Glen	Requested 160 single units to finish off the low density area plus 120 apartment units to construct the Garden Apartment block	Staff recommend 160 singles plus 120 apartments to complete the majority of the West Village.
Flato Development	Requesting 30 singles and 38 Semis within their Wismer Commons Development (to be allocated directly)	The Town policy is to allocate to the Trustee for distribution according to the group agreement.
History Hill Group	Requested an additional 110 apartment units to complete their Phase 1 development which includes two buildings connected by one underground garage	Staff recommend an additional 60 units - See discussion above.

Some comments/questions related to the ability of a developer or a group of developers (through the Trustee) to vary population and unit assignments. The population assignments are fixed. Should developers wish to vary the unit types within the total population allocated, they may do so, subject to receiving appropriate Town approvals and maintaining the Regional 70/30 split between ground related and high density units. It should be noted again that more units are to be derived from higher density development, based on persons per unit assumptions.

Draft Approval without Allocation

The Regional report also laid out a process to release their conditions of draft approval to Markham for applications that do not have a current or 2011 allocation. These plans of subdivision must first meet the following criteria:

Official Plan (containing growth management policies, phasing provisions and holding by-law provisions) and Secondary Plan are adopted;
Detailed infrastructure needs have been determined through Master Servicing Plan, Community Design Plan and Phasing Plan;
Section 34(5) By-law (municipal servicing) in place;
No pre-sales agreement and indemnity agreement; and
Hold provisions on zoning

The Markham Official Plan and Secondary Plans, including appropriate growth management and phasing provisions, are in place, infrastructure needs have been detailed in various reports, and a Municipal Servicing By-law was enacted on April 12, 2005. We anticipate that future recommendation reports related to approval of draft plans of subdivision that have no allocation will have a signed no pre-sale agreement appended to the report and accompanying zoning will include the requisite hold provisions.

For developments proceeding under this process (no current or 2011 allocation) pre-sales and registration will not proceed until additional allocation units are released by the Region. Appropriate triggers will be determined at that time.

Sustainable Development through LEED

Markham Council, on October 17, 2006 endorsed a principle that “where, through construction of a LEED building, servicing capacity is saved, any such saving, when realized as additional servicing allocation capacity by the Region, should be allocated to the developer of the LEED building that “created” the additional capacity for use on the site that created the capacity or another site owned by the same developer”. Partly in response to this Markham Council resolution, on June 21, 2007 Regional Council adopted a policy to provide a 20-35% increase in servicing allocation for developments that meet certain criteria. The goal of this policy is to provide an incentive for high density residential development in Regional Centres and Corridors and Local Centres to promote more energy efficient green buildings. As the Region is responsible for providing water and wastewater treatment, transit services and solid waste management, the Region developed criteria related to those matters. Where developments meet the following criteria, a 20-35% increase in servicing allocation may be provided:

Significant water conservation is achieved

Location is served by Viva transit or other major YRT route
Site is within a Regional Centre or Corridor, or Local Centre
Building meets Regional TOD guidelines including supporting an overall, log-term density target of 2.5 Floor Space Index
Three stream waste reduction is incorporated into the building
A minimum LEED Silver certification is achieved

Regional staff are currently finalizing an implementation strategy to move this program forward. Markham Staff are working closely with Regional staff to ensure servicing allocation in the Town can be maximized through use of this policy.

Markham’s Challenges

Our current available housing stock will keep residential building construction activity going for approximately 2½ years (if construction proceeds at the 5 year average rate) which takes us to mid 2010. At that time, we can begin to issue building permits for plans of subdivision approved with a 2011 conditional allocation. One year earlier (mid 2009) we propose to issue building permits for high density developments. The challenge will be to ensure that every approved unit of servicing allocation moves through the approval, agreement and building permit processes in a timely manner so development activity continues in a timely and efficient manner. We must be diligent in the coming years in review of development progress and application of the “use it or lose it” policy.

Administratively, staff find it a challenge and much time and effort is devoted to tracking the status of various projects and related allocation types. With the latest recommendations from the Region becoming operable in Markham, we will be tracking 7 types of allocation (and trigger status). These include:

projects with a current allocation that are not yet approved
projects with a current allocation that have received draft plan/site plan approval that have not yet executed an agreement with the Town (and registered the plan)
projects with a 2011 allocation that are not yet approved
projects with a 2011 allocation that have received draft plan/site plan approval that have not yet executed and agreement with the Town (and registered the plan)
projects with no allocation that are not yet approved
projects with no allocation that have received conditional draft plan/site plan approval
the Region’s 70/30 split on low density vs. high density

Following the allocation distributions recommended in this report, 22,000 units will remain in the system that do not have a current or 2011 servicing allocation. It is anticipated that the Region will again (sometime this year) provide us with a conditional allocation that can relate to 2012 building construction. Although we welcome this, it further complicates the tracking and administration of development approvals in a constrained servicing environment.