Report to: General
Committee Report
Date:
SUBJECT: Development Charge Credit – Box Grove Hill Developments Inc. – Phase 2B2
PREPARED BY: Kevin Ross, Manager, Development Finance, Ext. 2126
Alain Cachola, Manager, Capital Administration, Ext. 2711
RECOMMENDATION:
1) That the report entitled “Development Charge Credit
– Box Grove Hill Developments Inc. Phase
2B2” be received;
2) That Council authorize Town Wide Hard Development
Charge credits to Box Grove Hill Developments Inc. and Box Grove North Inc.,
not exceeding $570,307.00, in accordance
with the Town’s Development Charge Credit Policy for the construction of public
works relating to sidewalks, oversizing watermains and a road creek crossing in
the Box Grove subdivision;
3)
That the Mayor and Clerk be authorized to execute a development charge
credit agreement, in the event that the credits are not included in a
subdivision agreement with Box Grove Hill Developments Inc. and/or Box Grove
North Inc., or their successors in title;
4)
That this report
be taken to the
5) And that staff be directed to do all things
necessary to give effect to this report.
EXECUTIVE SUMMARY:
Not applicable.
PURPOSE:
The purpose of this
report is to obtain Council’s authorization, in accordance with the Town’s Development
Charge Credit Policy, to grant Town Wide Hard Development Charge Credits, not
exceeding $570,307.00, for the construction of a road creek crossing, sidewalks
and the oversizing of watermains by Box Grove Hill Developments Inc. and Box
Grove North Inc. The works for which Town
Wide Hard Development Charge credits are being requested relate to:
a)
The construction cost of a road creek crossing (i.e. the concrete span) over
a tributary on
b)
The construction cost of the sidewalk on both sides of the 9th
Line By-pass from
c) The construction cost for the oversizing
of watermains from 300mm to 400mm on Rizal Avenue, Rouge Bank Drive and Ninth
Line.
BACKGROUND:
Box Grove Hill Developments
Inc. approached the Town during the update of the Town Wide Hard and Area
Specific by-laws in 2008 requesting authorization to up-front finance the construction of the aforementioned public works; the developer indicated
that the desire was to recoup the cost of the works through development charge (DC)
credits upon execution of their remaining subdivision agreements. These credits are due to the Box Grove Hill
Landowners Group, however Box Grove Hill Developments Inc. is one of the
last phases to register within the Group and both parties have agreed to reconcile the apportionment of the credits
internally through their cost sharing agreement.
The Town agreed that DC
credits could be provided and has reviewed the claim in accordance with the
Council approved Development Charge Credit Agreement Policy. Box
Grove Hill Developments Inc. has since commenced the projects in order to facilitate
the completion of their development schedule.
The works fall within an earlier subdivision agreement and would have
eventually been done by the Town. The
Town has entered into similar agreements with developers in the past.
Section 38(1) of the Development Charges Act, 1997 provides
as follows:
“If a municipality agrees to allow a person to
perform work that relates to a service to which a development charge by-law
relates, the municipality shall give the person a credit towards the
development charge in accordance with the agreement.”
These works, as highlighted in Appendix A, and
as described above, have been included in the Town’s 2008 Town Wide Hard
Development Charge By-law. The development
charge credits will be limited to the lesser of $570,307.00 (the amount included
in the Background Study) and the actual cost of the infrastructure. Box
Grove Hill Developments Inc. has
estimated the cost of these works to be $424,168.00 and has requested a credit
on Phase 2B2 of their Draft Plan No. 19TM-030012 for this amount. As per the Development Charge Credit Policy,
staff will retain a letter of credit for construction and development charges
to be returned once staff is satisfied that the credit given does not exceed
the final construction cost.
As per Council
resolution on
Development charge credits have
been used in a number of development applications to facilitate the
construction of infrastructure in advance of the Town’s capital program. The
developer will comply with all the Town’s standards for design and
construction.
Town staff support this request for
Town Wide Hard development charge credits, subject to the terms set out in the
Development Charge Credit Policy, including:
·
Definition
of the scope of the work and the responsibilities of the Owner.
·
Deposit of
financial securities to guarantee completion of the work and payment of any
additional development charges owing.
·
Definition
of credit amounts to be applied to the development.
·
Identification
of time schedules for various activities.
FINANCIAL CONSIDERATIONS
The Town Wide Hard development charge due on Box Grove Hill Developments subdivision agreement for Phase 2B2 amounts to $2,052,964, which is sufficient to accommodate the total credits of $649,873.73 ($225,705.73 + $424,168.00).
BUSINESS UNITS CONSULTED AND AFFECTED:
Finance, Engineering and Legal
Services Departments.
RECOMMENDED BY:
___________________________ ___________________________
Treasurer Director Engineering
___________________________
Catherine M. Conrad
Town Solicitor
ATTACHMENTS:
Appendix A – Box Grove Eligible Infrastructure Summary