Report to: Development Services Committee Report Date: June 15, 2010
SUBJECT: Status Update for the completion of South Unionville Avenue
PREPARED BY: Alan Brown, Director of Engineering, Ext. 7507
Alain Cachola, Manager, Capital Administration Ext 2711
RECOMMENDATION:
1) That the report entitled “Status
Update for the completion of South Unionville Avenue” be received;
2) And that staff be authorized to continue
to negotiate with the South Unionville Landowners Group / Developers with
respect to the funding and construction of the 3rd section of South
Unionville Avenue Extension;
3) And that if the negotiations are not
finalized by June 15, 2010 to enable the road to be completed by the end of
2010, the Town provide interim funding for the road construction as follows:
i.
Council
authorize the Mayor and Clerk to execute a development servicing agreement and
reimbursement agreement with Jade-Kennedy Developments, in a form satisfactory
to the Chief Administrative Officer and Town Solicitor for the construction of
the 3rd Section of South Unionville Avenue including miscellaneous
fees.
ii.
And
that the local component of the 3rd section of South Unionville
Avenue extension in the estimated amount of $470,000 be temporarily funded from
the Pre-DCA Reserve Account (087-2800-160);
iii.
And
that the funding of the local component of the road ($470,000) be recovered
from the future development fronting the 3rd section of the South Unionville
Avenue Extension;
iv.
And
that the oversizing component (i.e. 3rd and 4th lane) of
the 3rd section of South Unionville Avenue in the estimated amount
of $130,000 be funded from the Town Wide Hard Development Charges Reserve
Account;
v.
And
that the Engineering Department’s 2010 Capital Budget be amended to include $600,000
for the design, contract administration and construction the 3rd section
of the South Unionville Avenue extension to be funded from the Town Wide Hard Development
Charges Reserve in the amount of $130,000, and Pre-DCA Reserve Account (087-2800-160)
in the amount of $470,000;
4)
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 section of the report is to:
a) Seek Council’s authorization to continue to
negotiate with the South Unionville Landowners Group / Developers with respect
to the funding and construction of the 3rd section of the South
Unionville extension;
b) In the event that the negotiations are not finalized by June 22,
2010 in order to ensure South Unionville Avenue is completed in its entirety
(Kennedy Road to McCowan Road) by year end, seek Council’s approval for the
Town to upfront the cost of the local road component with subsequent recovery
from the abutting developers. A 0.3m reserve would be placed on the abutting
lands to restrict access on the future development onto this portion of road
until the funds are repaid. In addition, draft plan conditions are to be
applied to the abutting lands requiring them to reimburse the Town.
c) Council authorization for the Mayor
and Clerk to execute a development servicing agreement and reimbursement
agreement with Jade-Kennedy Developments, in a form satisfactory to the Chief
Administrative Officer and Town Solicitor for the construction of the 3rd
Section of South Unionville Avenue is recommended;
BACKGROUND:
1st Section
of the South Unionville Avenue Extension (refer to Attachment ‘A’)
Jade Kennedy
Development Corporation is currently in the process of having their site plan
approved for the construction of a mixed used development at 8333 Kennedy Road.
As a part of the
proposed development, Jade Kennedy has been requested by the Town to construct
the 1st section of South Unionville from Kennedy Road to east of
Unity Gardens. The works are included in the Construction Agreement for South
Unionville Avenue.
The Developer
requested Development Charge Credits from the Town for the oversizing component
(i.e. 3rd and 4th lane) of South Unionville Avenue. Authorization
to enter into a Development Charge Credit Agreement for the oversizing portion
of this section of South Unionville Avenue has been approved by Council.
The local component
of the road (i.e. 1st and 2nd lane) is being financed by
Jade-Kennedy Developments who will be receiving credits from the Group Cost
Sharing Agreement of the South Unionville Landowners Group.
2nd
Section of the South Unionville Avenue Extension (refer to Attachment ‘A’)
The Town has recently
acquired the lands at 144 and 150 Helen Avenue that is required of the South
Unionville Avenue Extension. The Town has negotiated with Jade Kennedy
Development Corporation to construct this section of the road as a part of
their proposed development. The works are included in the Construction
Agreement for South Unionville Avenue.
The Developer
requested Development Charge Credits from the Town for the oversizing component
(i.e. 3rd and 4th lane) of South Unionville Avenue. Authorization
to enter into a Development Charge Credit Agreement for the oversizing portion
of this section of South Unionville Avenue has been approved by Council.
The local component
of the road (i.e. 1st and 2nd lane) is being financed by
Jade-Kennedy Developments who will be receiving credits from the Group Cost
Sharing Agreement of the South Unionville Landowners Group.
3rd
Section of the South Unionville Avenue Extension (refer to Attachment ‘A’)
Town staff is continuing to negotiate with the
South Unionville Land Developers Group and abutting developers to finalize the
funding of the local component of the road. If the negotiations of the funding
do not get resolved by June 15, 2010, staff recommends the Town to upfront the cost of the local
component of the road ($470,000) from the Engineering Pre-DCA reserve to ensure
that the South Unionville Avenue Extension from Kennedy Road to McCowan Road is
completed in 2010.
The Town has been in discussions with Jade-Kennedy
Developments to include the 3rd portion of the South Unionville
Avenue as a part of their proposed construction Contract for the 1st
and 2nd road section. Jade-Kennedy Development has agreed in principle
that they will construct the road as long as the funding is provided by the
Town or the South Unionville Land Developers Group / abutting Developers for
the local component (1st and 2nd Lane) of the road. The
funding for the oversizing component of the road (i.e. 3rd and 4th
Lane), estimated at $130,000, is included in the Town’s 2008 Development Charge
Background Study and can be funded from such. In addition to the construction
costs, miscellaneous costs such as consultant fees, administration fees, etc.
are to be paid. Jade-Kennedy has advised
that Sections 1 and 2 of South Unionville will be under construction in June
2010 and they would need authorization to proceed with Section 3 by June 22,
2010 to ensure that their contractor can undertake this work in July 2010
before leaving the site.
FINANCIAL CONSIDERATIONS
The estimated cost of constructing the 3rd section of South Unionville Avenue totals $600,000. The funding recommended is $130,000 from the Town Wide Hard DC Reserve and $470,000 from either the South Unionville Land Developers Group or the Town’s Pre-DCA Reserve.
There is no net financial impact to the Town if the South Unionville Land Developers Group upfronts the cost of the local component of the road which is estimated at $470,000. There is however a reduction in cash flow and a loss of interest estimated at $5,000 to $10,000 per year if the Town upfronts the local component of the road, until this amount is recovered from the future developers fronting on the road. It is anticipated that servicing allocation and draft plan approval for the abutting lands (Kuznel / Filice) should be available by 2014.
ALIGNMENT WITH STRATEGIC PRIORITIES:
The completion of South Unionville Avenue provides a necessary east-west collector road between Kennedy Road and McCowan Road south of Highway 7. The collector road provides the transportation capacity for the development of South Unionville which aligns with the Markham’s strategic focus to Growth Management and Transportation / Transit by providing an alternative route and to alleviate traffic congestion on highway 7.
BUSINESS UNITS CONSULTED AND AFFECTED:
The Planning, Finance
and Legal Departments 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 of Development Services
ATTACHMENTS:
Attachment ‘A’: Sections of South Unionville Avenue