To: Mayor and Members of Council

From: Jim Baird, Commissioner of Development Services

Biju Karumanchery, Senior Development Manager, Planning & Urban Design

Date: June 22, 2010

RE: Hold Removal By-laws for properties with 2011 / 2012 servicing allocation

Council has distributed 2011 / 2012 servicing allocation to various developments in Town.  The zoning for these developments contain a Hold provision required by the Region at the time of the initial zoning and these Hold provisions cannot be released until the conditions are satisfied.  A typical Hold removal section of these by-laws reads as follows:

“Prior to removing the (H) Holding provision, the following conditions must be met to the satisfaction of the Town of Markham:

a)    York Region has advised in writing that the expected completion of the Duffin Creek Water Pollution Control Plant expansion project and the YDSS Flow Control Structures project will be within six (6) months of the date of the removal of the Holding (H) provision; and,

b)    The Council of the Town of Markham has allocated adequate available water supply and sewage servicing capacity to the subject development; or,

c)    The Council of the Town of Markham approves servicing allocation to the lands that are not dependent upon the construction of Regional infrastructure; or

d)    The Regional Commissioner of Environmental Services confirms servicing capacity for this development by a suitable alternative method and the Town of Markham allocates the capacity to this development.”

The key prerequisites for the purposes of Hold removal are conditions a) and b) above. Condition b) has been satisfied through Council’s distribution of 2011/2012 servicing allocation.

The Region originally intended to provide the Town with a clearance letter satisfying condition a) above by July 1st  (ie. six months prior to the anticipated completion of the Duffin Creek Water Pollution Control Plant expansion project and the YDSS Flow Control Structures project).  Six months was anticipated to be the time required to complete construction of a dwelling after the issuance of a building permit. The expectation was that this would allow the Town to lift the Hold provisions and issue building permits and allow developers to complete construction by the time the aforementioned Regional infrastructure became operational.

In recent weeks, several developers have raised a concern that if the Holds are not removed before the summer recess of Council meetings, they would be forced to wait until September for the Hold removal, resulting in an unnecessary delay of construction, particularly in the event the Region is able to provide a clearance letter by July 1^st as originally intended.  To address this issue Regional staff had agreed to see if they could provide a clearance letter in time to allow the Town to bring forward Hold removal by-laws by June 22^nd. However, at this time this does not appear likely although a release letter is still anticipated in the next few weeks.

It was recently brought to our attention by some developers that Vaughan, which is facing a similar situation, has passed Hold removal by-laws for their subdivisions with the by-laws having an effective date that is dependent on the receipt of a release letter from the Region.  Therefore, the Hold would remain in place until the Hold removal by-law comes into effect, which will only happen after receiving a Regional Clearance. 

Staff contacted the Region regarding the acceptability of this approach and, while the Region has not expressed support for this approach, the Region has indicated that they do not intend to object to the Vaughan By-laws.

Staff has consulted the Legal Department regarding this matter and feel that the Town could proceed using Vaughan’s approach with little risk. As noted, these by-laws will not come into effect until the Region provides a written clearance indicating that the developments can proceed to building permit. However, it should be noted that although these hold removal by-laws will take effect upon receiving a clearance from the Region, enabling the issuance of building permits, such building permits still cannot be issued until the Plans of Subdivisions are registered. The registration of the Plans will require a separate clearance letter from the Region indicating that their conditions of draft approval have been satisfied.

Accordingly, staff is bringing forward to this Council meeting a number of Hold removal by-laws where the Hold is related to the 2011/2012 servicing allocation.  The By-laws would be the typical Hold removal By-law with an added clause as noted below: 

“This By-law shall not come into effect until the Town of Markham receives written confirmation from the Region of York indicating that the expected completion of the Duffin Creek Water Pollution Control Plant expansion project and the YDSS Flow Control Structures project will be within six (6) months, or a similar clearance letter to this effect, to the satisfaction of the Town.”