Report to: General Committee                                                        Report Date: May 26, 2008

 

 

SUBJECT:                          Development Charge Transition Rules

PREPARED BY:               Kevin Ross, Ext 2126

                                           

 

 

RECOMMENDATION:

THAT the report titled “Development Charge Transition Rules” be received:

 

AND THAT Council approve a transition policy for implementation of the proposed development charge by-law amendments, as follows:

  • that subdivision applicants that have submitted all documentation required to initiate the Subdivision Agreement, as set out in this report, on or before 14 days from the date of enactment of the 2008 Town Wide Hard and Area Specific Development Charge By-laws, be charged development charges based on the current 2004 bylaw rates, as indexed;
  • that site plans that have been endorsed by Council on or before 14 days from the date of enactment of the 2008 Town Wide Hard and Area Specific Development Charge By-laws, be charged development charges based on the current 2004 bylaw rates, as indexed;

 

AND THAT subdivision applicants that qualify for the 2004 development charge rates be given until September 30, 2008 to register their subdivisions, failing which the 2008 by-law rates apply.

 

AND THAT site plan applicants that qualify for the 2004 development charge rates be given until September 30, 2008 to complete the site plan agreement process and obtain a building permit, failing which the 2008 by-law rates apply.

 

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

Not applicable

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 for a transition policy for implementation of the proposed development charge by-law amendments, allowing subdivision and site plan applicants that have advanced to a certain stage of development to qualify to pay 2004 development charge rates, as indexed.

 

BACKGROUND:

Town staff are currently in the final stages of a review of the Town Wide Hard (TWH) and Area Specific Development Charge (ASDC) By-laws with the intention of enacting new Development Charge (DC) By-laws prior to July 1, 2008.  Staff have met with representatives of the development industry over the course of this review where requests have been made for the Town to consider implementation of transition rules as a part of the DC review process. 

 

Industry representatives expressed concerns regarding the immediate impact of the increased charge on development that was already sold as it would be difficult for purchasers to pay for this increase should it be applied to the purchase price.  A transition period is a common practice among municipalities when implementing a new development charge bylaw.

 

 

OPTIONS/ DISCUSSION:

Qualifications for 2004 Development Charge Rates

After considering the options, staff are recommending that subdivision applicants that have satisfied the set of pre-determined requirements (see below and Appendix A) to initiate a subdivision agreement on or before 14 days from the date of enactment of the new TWH and ASDC by-laws, be charged the development charge rates based on the current 2004 By-laws, as indexed.  In addition, staff recommend that site plans that have been endorsed by Council on or before 14 days from the date of enactment of the new TWH and ASDC by-laws, be charged the development charge rates based on the current 2004 By-laws, as indexed. 

 

Time-limit on Qualification for 2004 Development Charge Rates

Normally, once all requirements for a subdivision agreement application have been completed and submitted, the subdivision agreement is provided to the developer within 30 days, and executed within a month or so after that.  The registration of the subdivision follows, and generally occurs within a few months of the date of the subdivision agreement application, although these timelines can vary significantly.  Staff is therefore further recommending that subdivision applicants that qualify for the 2004 development charge rates be given until September 30, 2008 to register their subdivision, or they are subject to the 2008 by-law rates. Staff also recommends that site plan applicants that qualify for the 2004 development charge rates be given until September 30, 2008 to complete the site plan agreement process and obtain a building permit, failing which the 2008 by-law rates apply.

 

Staff is of the view that these timelines are appropriate given that the development industry has long been aware of the current review of the by-laws.  The requirements that need to be fulfilled for developers to benefit from the current 2004 by-law rates are the submission of the following (completeness verified by the respective departments), upon application for a subdivision agreement:

 

Planning Department

  • Completed application form
  • Applicable application fee in accordance with the Town Tariff of Fees by-law
  • Digital copy of Draft M-Plan
  • 15 copies of Draft M-Plan with Final Lot and Block Configuration
  • 1 reduced copy of Draft M-Plan (legal paper size)
  • List of residential units & part lots by unit type and number
  • Surveyor’s Certificate including confirmation of zoning compliance, area of lots and blocks, residential unit types and numbers and net developable area
  • Approved Archaeological Study
  • Approved Street Names

 

Engineering Department

·        2nd Engineering Submission with draft cost estimates satisfactory to the Director of Engineering

·        Approved Traffic Study

·        Approved Noise Study

·        Draft R-Plans for internal and external easements

·        Revised M-Plan to reflect the latest engineering submission

·        Any special Engineering Conditions as identified at draft plan approval (i.e., well monitoring, environmental issues)

Urban Design

  • Preliminary Streetscape and Open Space Landscape Plans
  • Preliminary Cost Estimates
  • Appraisal for cash-in-lieu of parkland

 

 

This transition period will allow developers whose draft plans have already been approved and who have advanced the processing towards registration significantly, the opportunity to finalize their applications for subdivision agreement in order to benefit from the current (2004 by-law) DC rates.  Site plans that have been endorsed will benefit from the current DC rates as well.

 

FINANCIAL CONSIDERATIONS

The development charges currently being reviewed (TWH and ASDC) are collected to recover infrastructure costs required by the Town.  By collecting development charges at the current (2004 by-law) rates for applications that satisfy the requirements set out above, the Town’s cash flow will be impacted in the short term, but this ultimately will not result in a loss of development charge revenue.

 

The Town will collect less revenue from draft plans that are submitted for subdivision agreements and endorsed site plans during this period, however this shortfall will be recouped in the next update of the DC by-laws.

 

ENVIRONMENTAL CONSIDERATIONS:

Not applicable.

 

ACCESSIBILITY CONSIDERATIONS:

Not applicable.

 

ENGAGE 21ST CONSIDERATIONS:

Not applicable.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Legal Services and Planning Department.

 

RECOMMENDED BY:

 

 

 

________________________                                    ________________________

Barb Cribbett                                                               Andy Taylor

Treasurer                                                                      Commissioner, Corporate Services

 

Att:   Appendix A – Subdivision Checklist