Report to: Development Services Committee Report Date:
SUBJECT: 404 North Secondary Plan
Construction Agreement
PREPARED BY: Alan
Brown, Director,
Allen Wu, Senior Development Engineer, Ext. 2230
RECOMMENDATION:
That the
And that the Mayor and the Clerk
be authorized to execute a construction agreement with the 404 North Developers
Group for the installation of the internal and external sanitary sewers and
watermains in the Woodbine Bypass area to service the Honda site plan, in a
form satisfactory to the Chief Administrative Officer and the Town Solicitor;
And that the 2008 Engineering
Department Capital Budget be amended to include a new account for the
construction of sidewalk and illumination related to the construction of the
Woodbine Bypass (Phase 2B & 3) and development of the Honda site plan in
the amount of $359,621.00 (sidewalk - $178,517.00, illumination - $181,104.00),
to be funded by development charges;
And that the Mayor and Clerk be
authorized to execute a credit agreement with the 404 North Developers Group
for front-ending of the costs incurred by the Town to provide downstream
sanitary sewer capacity for the area in a form satisfactory to the Chief
Administrative Officer;
And that staff be authorized and
directed to do all things necessary to give effect to this resolution.
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;
·
obtain Council’s approval to execute a
construction agreement with the 404 North Developers Group for the installation
of sanitary sewers and watermains in the Woodbine Bypass and vicinity to
service the area;
·
amend the 2008 Engineering Department Capital
Budget to include a new account for the works related to sidewalk and
illumination in the Woodbine Bypass, in the 404 North Area;
·
obtain Council’s approval to execute a credit
agreement with the 404 North Developers Group for front-ending of the costs
incurred by the Town to provide downstream sanitary sewer capacity for the area
in a form satisfactory to the Chief Administrative.
BACKGROUND:
In order to service the new Honda
site, the Woodbine Bypass (Bypass) north of
Tri-Party Agreement
The construction of the Bypass road
works from
The Town will construct the Bypass
road works on behalf of the Region. The 404 North Developers Group (Group) is
responsible for the funding of Phases 2b and 3 of the Bypass road works as per
Attachment “A”. A Tri-party Agreement between the Region of York, the Group,
and the Town is to be executed before the Town tenders this project in
February/March of 2008. Council previously authorized the Mayor and the Clerk
to execute the Tri-party Agreement at its meeting on
While the Rice Group has deposited
to date $544,731.00 toward the Bypass and they have committed to fund the
balance of Phases 2b and 3a within the next month to assure the Bypass is open
to Honda Boulevard by November 2008, negotiations for the funding of Phase 3b
is currently underway between the Group, the Region, and the Town.
A separate construction agreement
is to be executed with the Rice Commercial Group and Honda Canada Inc. for the
construction of Honda Boulevard (Honda Boulevard Construction Agreement) from
the Bypass to the Honda site including local services and a temporary
stormwater management facility. Council had previously authorized the Mayor and
the Clerk to execute the Honda Boulevard Construction Agreement at its meeting
on
OPTIONS/ DISCUSSION:
Construction Agreement for Municipal Sanitary and
Watermain Infrastructure in Woodbine Bypass
The Group will be required to
construct municipal infrastructure in the Bypass and the existing
A construction agreement is
required between the Town and the Group to ensure compliance with the Group’s
obligations to construct and guarantee the works to the Town’s satisfaction.
The Group will be responsible for any additional cost or delay claims arising
from the Town’s road contract if the Group’s sewer and water works within the
Bypass are not completed by
Amendment to the 2008
Engineering Department Capital Budget
In order to facilitate the
development of the Honda site plan and open up the 404 North Business Park, the
Rice Group has to upfront finance over $10 million in infrastructure and
property cost. The cost of installing the sidewalks and illumination, in the
Bypass is recommended to be financed by the Town through development charges to
help facilitate the development of the area. This is a similar approach to
financing the sidewalks and the illumination within the section of the Bypass
to the south, in the Cathedral Secondary Plan. The cost of these works in the
404 North Lands has been estimated at $359,621.00 (sidewalk - $178,517.00,
illumination - $181,104.00) and staff are requesting Council’s approval to
amend the 2008 Engineering Capital Budget to include a new account for these
works to be funded from development charges.
External Sanitary Sewer
Prior to the Honda site plan and
development of the 404 North Secondary Plan, the Town agreed to finance the
cost to oversize the sanitary sewer in the Cathedral area as authorized by
Council at its meeting on April 11, 2006. The Town is also up-fronting the cost
of installing the relief sewer in the Woodbine Cachet West subdivision located
southwest of Major MacKenzie Dr. and Woodbine Ave. to provide additional
sanitary sewer capacity for the 404 North area. The Group’s share for the costs
of the sanitary sewer in the Cathedral and the Woodbine Cachet West are
approximately $2,282,567.00 and $230,375.00 respectively for a total of
approximately $2,512,942.00. In order to ensure the recovery of the Town’s
upfront cost, albeit over the longer term until full buildout, staff will be
including approximately $2.5 million in a future ASDC bylaw for this Secondary Plan
area. However, as the full recovery may take +/- 15 years to achieve, staff are
requesting Council’s authorization for the Chief Administrative Officer to
negotiate and execute a credit agreement with the Group, for the Group to
front-end the cost of that infrastructure in exchange for DC credits as and
when they develop.
FINANCIAL
CONSIDERATIONS:
The installation of the sanitary sewers and the watermain in
the Bypass and the existing
The construction of the sidewalks and illumination, will be financed by the Town from development charges subject to amendment to the 2008 Engineering Department Capital Budget to include a new account for the estimated amount of $359,621.00.
As Honda will be executing their site plan agreement prior
to passing of the ASDC by-law for the 404 North Secondary Plan staff will be
assessing them a local services contribution for their proportional share of
the downstream sanitary sewer works the Town is financing ($2.5 million). Credits for the widening of Honda Blvd (
The Town will
negotiate and execute a credit agreement with the Group, for front-ending of
approximately $2.5 million incurred by the Town to provide downstream sanitary
sewer capacity for the area.
BUSINESS UNITS CONSULTED
AND AFFECTED:
The Finance and Legal Departments
have reviewed this report and their comments have been incorporated.
RECOMMENDED BY:
____________________________ ________________________________
Alan Brown,
C.E.T. Jim
Baird, M.C.I.P., R.P.P.
Director of Engineering Commissioner of
Development Services
ATTACHMENTS:
Attachment “A” –
Attachment “B” – Sanitary and
Watermain Servicing Plan
Q:\Development\Engineering\REPORTS\2008\February\404
North Woodbine Bypass Sanitary Sewer\404 North Woodbine Bypass Sanitary
Sewer.doc