Report to: Development Services Committee Report Date: May 19, 2009

SUBJECT: Box Grove Collector Road

Highway 407 to Box Grove By-pass

PREPARED BY: Alan Brown, Director of Engineering, ext. 7507

RECOMMENDATION:

1) That the staff report entitled “Box Grove Collector Road – Highway 407 to Box Grove By-pass”, dated May 19, 2009, be received;

2) Ant that the construction of a municipal four lane urban collector road from Hwy 407 to the Box Grove By-pass be endorsed:

3) And that the Region of York be advised that the Town of Markham will accept the ownership of the Box Grove Collector Road from Hwy 407 to the Box Grove By-pass;

4) And that the Region of York be requested to transfer the 36m right of way for the Box Grove Collector Road from 14^th Avenue to the Box Grove By-pass to the Town of Markham for nominal consideration for the 20m right-of-way component;

5) And that the Town of Markham reimburse the Region of York for the additional 16m right-of-way property (36m vs. 20m) as part of the property negotiations with the Vettese draft plan owner, to an upset limit of $1,473,480 from the Engineering Department Capital Account # 083-5350-7071-005 (Development Charges funded);

6) And that upon future Regional Council request for the transfer of the Box Grove Collector Road from Highway 407 to the Box Grove By-pass, such right of way be re-conveyed to the Region of York for nominal consideration;

7) And that the Mayor and Clerk be authorized to execute any agreements or financial arrangements with the Region of York and Box Grove Developers required to give effect to this resolution to the satisfaction of the Chief Administrative Officer, Town Solicitor and Town Treasurer;

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

9) And that the Region of York be advised accordingly.

EXECUTIVE SUMMARY:

The resolution and approval of the Individual Environmental Assessment for the Donald Cousens Parkway from Highway 407 to south of Steeles Avenue is expected to be in place in 2010. In the interim, the Box Grove Collector Road from Hwy 407 to the Box Grove By-pass has been approved through two plans of subdivision where the road is located in.

In order for this local road to proceed in 2009/2010 to meet the immediate local transportation needs of the Box Grove Community, construction of a local road can proceed as a municipal initiative under the Planning Act and Municipal Engineers Association Class EA process, with the Town of Markham as the jurisdiction having authority of the Box Grove Collector Road from Highway 407 to the Box Grove By-pass being implemented through the planning approvals for two plans of subdivision.

This project will be constructed and financed by the Box Grove developers under subdivision and construction agreements. This delivery model is deemed to satisfy the Municipal Class EA requirements under the Integration with the Planning Act provisions and has been used for other four lane collector roads such as Bur Oak Avenue and Enterprise Blvd.

In order to proceed with construction in 2009, various property and financial arrangements with the Developers and the Region pertaining to road construction/Regional development charges credits and property acquisition are required.

There is minimal risk to the Town with the developers proceeding with construction of the local road and the only additional cost relates to the Town maintaining the road until 2011 when the Region will assume such.

The following agreements are required:

§ Amendment to the April 4, 2008 Memorandum of Understanding between the Box Grove Developers, Region and Town to reflect the revised obligation of the parties outlined in this report;

§ Execution of a subdivision agreement with Box Grove Hill Development Inc. for the construction of the Box Grove Collector Road from Highway 407 to 14^th Avenue;

§ Execution of the construction agreement with the Box Grove Developers Group, for the construction of the Box Grove Collector Road, from 14^th Avenue to the Box Grove By-pass including the 14^th Avenue realignment at the intersection;

§ Execution of a Development Charges credit agreement between the Box Grove Developers Group and the Town of Markham for property (beyond 20m right-of-way), sidewalk, illumination and multi use pathway (Approved by General Committee on April 6, 2009);

FINANCIAL CONSIDERATIONS:

The construction of the Box Grove Collector Road will be undertaken and funded by the Box Grove Developers Group. The Town of Markham’s financial obligations relate to providing Development Charges credits for the right-of-way (beyond 20m), illumination and multi use pathway which was approved by General Committee on April 6, 2009. No additional financial obligations to the Town are required other than the operating costs associated with maintaining the road until the Region assumes such in 2011.

PURPOSE:

§ To outline options related to the delivery of the Box Grove Collector Road from Hwy 407 to the Box Grove By-Pass.

§ To seek Council’s approval to proceed with the construction of a municipal four lane urban collector road, to meet local transportation needs.

§ To obtain Council’s approval for property and financial transactions required to construct the Box Grove Collector Road as a local collector road for municipal purposes from Hwy 407 to Box Grove By-pass.

§ To inform Council on the timing of the construction of the local Box Grove Collector Road

§ Seek authority to execute the necessary agreements as indicated in this report.

BACKGROUND:

Regional Environmental Assessment

The Road alignment of the Box Grove Collector Road corresponds to the Region’s preferred alignment for the Donald Cousens Parkway, but the Individual Environmental Assessment (IEA) has not been approved by the Ministry of the Environment due to alignment issues south of this section of road. The Region advises that they expect an Individual Environmental Assessment approval in 2010 at which time they will be in a position to construct the Donald Cousens Parkway in 2011/2012. The Box Grove Secondary Plan provides for construction of a road at this location to service the Box Grove community, even if it is determined not to be the ultimate location of the Parkway/Markham By-pass.

Delivery Options

A collector road is required in 2009/2010 to serve a local transportation function to the Box Grove community.

Based on the current status of the Region’s IEA the following options are available to Markham for the completion of this road;

(i) Defer road construction to 2011/12 when the Region’s IEA is approved and the Region can construct it as part of their capital program

(ii) Box Grove Developers construct the road in 2009/2010 as a municipal 2 lane rural road under their subdivision agreement(s)

(iii) Box Grove Developers construct the road in 2009/2010 as a municipal 4 lane urban collector road under their subdivision agreement(s)

Municipal 4 Lane Urban Collector Road Recommended

Development in the Box Grove community requires completion of the road from Hwy 407 to the Box Grove By-pass in 2009/2010 for local transportation network purposes and therefore option (i) is not recommended. Constructing a 2 lane rural road in 2009/2010 to be widened to 4 lanes in 2012 by the Region is not recommended due to the throw away costs associated with such, traffic disruption during the widening of the road from 2 to 4 lanes and negative public opinion regarding why a 3 year old road is being reconstructed.

In the April 4, 2008 amendment No. 1 to the Memorandum of Understanding between the Box Grove Developers, Region of York and Town of Markham, the Box Grove Developers were required to construct a four lane urban road versus a 2 lane rural road identified in the original Memorandum Of Understanding with appropriate Regional development charges credits for the four-lane road. Town development charges credits relate to installation of sidewalk, illumination and 16m right-of-way acquisition only.

As the Box Grove Collector Road from Highway 407 to the Box Grove By-pass has been approved through the Box Grove Secondary Plan and Box Grove Hill/Vettese Plans of Subdivision, the developers can proceed as the proponent of the municipal road.

An opinion from URS Consultant Ltd. has been obtained confirming that the construction of the Box Grove Collector Road from Highway 407 to the Box Grove By-pass as a local road by the developers complies with Section A.2.9 of the Municipal Class EA as the approval for the roads was integrated with the planning approvals for the plans of subdivision.

Staff therefore recommends that option (iii) the construction of a municipal 4 lane urban road be approved.

Box Grove Hill Plan of Subdivision

The Box Grove Collector Road from Highway 407 to 14^th Avenue will be constructed under a subdivision agreement with Box Grove Hill for their Phase 2B lands. The subdivision agreement is expected to be executed in May 2009 and will include the developer’s obligation to dedicate the right of way, secure its construction and build this section of road by the end of 2009/Spring 2010.

In the June 13, 2002 Memorandum of Understanding with the Box Grove Developers and the Region of York, Markham is responsible for acquisition of the right of way beyond a 20m local road to be funded from the Town Wide Development Charges. The 20m right of way is to be dedicated to the municipality by Box Grove Hill at no cost as a condition of draft plan approval, subject to Town development charges credits as outlined below.

The Engineering Department Capital Budget Account #7071 has $4,707,500.00 for property requirements beyond 20m right of way (i.e. 16m) which is funded from the Town wide Development Charges By-law. The Town will credit Box Grove Development in its Phase 2 subdivision agreement $2,088,298.08 for the additional 16m (20m to 36m) right of way from Hwy 407 to 14^th Avenue. The Town has also purchased the Highcock property required for the right of way. Both of these rights-of-way are funded from the Engineering Capital Budget Account #083-7071-5350-005. The balance of the Town’s development charges funds are to be used to compensate the Region for acquiring 16m of the right-of-way from the Vettese draft plan owner as outlined below.

Vettese Plan of Subdivision

Town staff have met the new owner of the Vettese Plan of Subdivision (Eldin Building Corporation) and they advised that they will not be in a position to execute their subdivision agreement until Fall 2009. A separate construction agreement with Box Grove Developers Group and the Town of Markham is therefore required to facilitate the construction of the Box Grove Collector Road from 14^th Avenue to the Box Grove By-pass including the 14^th Avenue realignment at the Box Grove Collector Road/CP rail intersection.

The Region negotiated with Vettese, as a package, the acquisition of the 36m right of way for the Box Grove Collector Road from 14^th Avenue to Box Grove By-pass, the 14^th Avenue realignment and permanent/temporary easements for the Southeast Collector Sewer. The Region has agreed to transfer the Box Grove Collector Road right of way from 14^th Avenue to Box Grove By-pass to the Town so that it can be constructed as a local road. The Town of Markham therefore is to reimburse the Region for the cost of the extra 16m right of way (20m vs. 36m) from 14^th Avenue to Box Grove By-pass in the Vettese draft plan which is estimated up to $1.47M. Funding is available in the Engineering Department Capital Budget Account #7071 and the Town and Region will be finalizing the final land area and property value.

Upon the Region’s Individual Environmental Assessment being approved, Regional Council will request Markham transfer the road and right of way (Hwy 407 to Box Grove By-pass) to them for nominal consideration. Upon transfer of the local road, this asset will be owned and maintained by the Region of York for inclusion into the Region arterial road network.

Memorandum of Understanding

The Box Grove Community Memorandum of Understanding was executed June 13, 2002 and amended on April 4, 2008. A further amendment is required which updates the obligations of the three parties in respect to obligations for the construction of the Box Grove Collector Road as outlined in this report.

Regional Development Charge Credits

In consideration of the developers frontend financing the construction of the Box Grove Collector Road and based on the Region assuming such road in 2010/2011 when their IEA is approved the Region and Box Grove developers have been negotiating future Regional Development Charge Credits.

Construction Schedule

Subject to execution of the above (agreements, approvals and property acquisition) construction is expected to start late Spring 2009. There are two key issues that need to be resolved to ensure the project can be completed, including obtaining Canadian Pacific Rail and Toronto and Regional Conservation Authority approvals.

The Box Grove Collector Road/14^th Avenue/Canadian Pacific Rail intersection (Attachment ‘A’) requires approval from the Canadian Pacific Rail and we are awaiting confirmation of their conditions and time frames. Based on Canadian Pacific Rail approval this Fall 2009, completion of this project is estimated by Summer/Fall, 2010.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Legal and Finance Department have reviewed and commented on this report.

RECOMMENDED BY:

________________________ ________________________

Alan Brown, C.E.T. Jim Baird, M.C.I.P., R.P.P.

Director of Engineering Commissioner, Development Services

ATTACHMENTS:

Attachment ‘A’ – Area Map

Q:\Development\Engineering\REPORTS\2009\May\Box Grove Collector Road Highway 407 to 9th Line By-pass Regional Issues amalgamated report New version 043009 going to DSC 051909.doc