Report to: General Committee                                                          Report Date: April 4, 2008

 

 

SUBJECT:                          Woodbine Cachet Sanitary Sewer Oversizing Reimbursement Agreement

PREPARED BY:               Barb Cribbett Ext. 4735

 

 

 

RECOMMENDATION:

That the report titled “Woodbine Cachet Sanitary Sewer Oversizing Reimbursement Agreement” be received:

 

And that the Mayor and Clerk be authorized to enter into a reimbursement agreement with Woodbine Cachet West Inc., in a form satisfactory to the Town Solicitor

 

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

 

EXECUTIVE SUMMARY:

Not applicable

 

PURPOSE:

The purpose of this report is to authorize the Mayor and Clerk to enter into a reimbursement agreement with Woodbine Cachet West Inc. to facilitate their recovery of costs incurred to build an oversized sanitary sewer that provides capacity to the Cathedral Land Owners.

 

 

BACKGROUND:

The Town of Markham Area Specific Development Charge for Area 46 Cathedral (ASDC 46) that was approved by Council on September 1, 2004 includes a specific cost recovery for Woodbine Cachet West Inc. for an existing sanitary oversizing & deepening south of Major Mackenzie Drive.  The total amount to be recovered for Woodbine Cachet West Inc. and included in the “per hectare” charge is $399,500.

 

The oversized sanitary sewer was completed between 1999 and 2002 in the Woodbine North area (south of the Cathedral area), and was designed to provide capacity for development of the Cathedral area.

 

 

OPTIONS/ DISCUSSION:

The reimbursement agreement is similar to a development charge credit agreement, in that a developer constructs, or pays the Town to construct infrastructure.  The difference is that the developer in this case, did not receive credit for these works at the time the development charges were paid, but rather was seeking to be reimbursed by future development in an area benefiting from the infrastructure.

 

 

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

The reimbursement agreement will authorize the return of funds to Woodbine Cachet West Inc. from the proceeds received in ASDC 46, on a proportionate basis.  In other words, the total amount to be collected for ASDC 46 is $5,220,055, of which the Woodbine Cachet West Inc. sewer oversizing is $399,500, or 7.653%. For every $1 of development charge paid into the reserve, Woodbine Cachet would be reimbursed $0.07653.

 

The amount of development charges collected in ASDC 46 as of December 31, 2007 is $2,448,935.16, therefore the payment to Woodbine Cachet West Inc., upon execution of the agreement, would be $187,417 (7.653%) plus a portion of any additional development charge payments made at the point of agreement execution. The reserve balance in ASDC 46 as of December 31, 2007 is $2,018,066.87, and therefore is sufficient to make the repayment. Staff will also consider including in the reimbursement agreement the payment of appropriate interest/indexing on the $399,500 principal.

 

 

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

 

ACCESSIBILITY CONSIDERATIONS:

Not applicable

 

ENGAGE 21ST CONSIDERATIONS:

Not applicable

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable

 

 

RECOMMENDED

                            BY:

 

 

________________________                                 ________________________

   Barb Cribbett                                                         Andy Taylor

   Treasurer                                                                Commissioner, Corporate Services

 

 

 

 

ATTACHMENTS:

Copy of Area Specific Development Charge 46 (Cathedral) details