HomeMy WebLinkAboutCS 31-02
198
REPORT TO THE
FINANCE & OPERATIONS COMMITTEE
Report Number: CS 31-02
Date: November 13, 2002
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Recommendation:
1. That Report CS 31-02 of the Director, Corporate Services & Treasurer be received
for information and that:
2. Council advise Staff if it wishes to consider providing relief from the provisions of the
1987 Development Agreement respecting cash-in-lieu of parkland payment for the
last phase of the development, being 1200 The Esplanade North, based on the
same formulae as was applied to the Millennium Apartment at 1000 The Esplanade
North, at an estimated cost of approximately $132,000;
3. Council advise staff if it wishes to consider permitting, in addition to the relief from
Development Charges in the estimated amount of approximately $112,000 as
provided by the 1987 Agreement, any further relief in the form of deferral of all
parkland payments, fees, charges and development charges:
a) totaling $700,000 or less at an estimated cost of approximately $178,000 until
the units are resold or a maximum of 15 years after any agreements are
executed;
b) totaling more than $700,000 at an estimated cost of approximately $31,000
until one year following project negotiation;
4. Should Council determine that it wishes to consider relief outlined in
Recommendations 2 and/or 3 above, that the Chief Administrative Officer, the
Director, Corporate Services & Treasurer and the Director, Planning & Development
be authorized and directed to enter into discussions with the appropriate
representatives of Deltera Inc. and Options for Homes in order to determine and
explore all options, the potential costs to the City and to present the results of these
discussions at the earliest possible opportunity for the consideration of the
Committee and Council; and,
Report CS 31-02 Date: November 13,2002 1 q 9
Subject: Tridel/Options for Homes Development Final Phase Page 2
1200 The Esplanade North (East of Millennium Building)
5. that appropriate officials of the City of Pickering be given authority to give effect
thereto.
Executive Summary: Deltera Inc. (Tridel) and Options for Homes propose to
develop the last phase of the Apartment/Casita complex located in the City's downtown,
between Kingston Road and the Esplanade North (1200 The Esplanade North). The
project consists of an eleven (11) storey apartment building containing 220 units. In
order to accommodate the development, assist in the provision of affordable home
ownership, and provide special accessible units for 8-12 households, Options for
Homes and Deltera are requesting that the City provide financial relief in the form of
parkland cash-in-lieu payment reduction, and the deferral of parkland, development
charge, and other municipal fees and levies. Further, Options for Homes requests that
the City designate the lands as a "revitalization area" for the purpose of homeowner
grant eligibility.
Staff are supportive of initiatives to complete this important area of Pickering's
Downtown, with the continuing involvement of Tridel as builder. Generally speaking,
staff are also supportive of the concept of providing more affordable ownership housing
accommodation in the City. We understand that the external elements of this project
will be of high quality standards as the existing apartments at Discovery Place. Tridel
has recently submitted a Site Plan Application for this project which is currently under
review by staff.
This report outlines details of the requests, as staff understands them, and considers
the related financial implications. Council direction is necessary in order to confirm its
interest in considering further the request for the parkland reduction and the reduction
and deferral of fees and charges.
Financial Implications: The total estimated benefit to the developer, representing
either a direct cost to the City, or lost income is as follows:
Parkland Dedication
Development Charges
Deferral of $700,000
Deferral of over $700,000
Total Benefit
$132,355
112,476
178,000
31 ,132
$453.963
Any financial decisions favouring the developer, especially those involving development
charges, will have to be made up by an increase in property taxes as the majority of
these items affect the Development Charges Study approved by Council in 1999.
2 0 0 Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 3
Background: Deltera Inc. (Tridel) and Options for Homes proposes to complete the
development of lands between Kingston Road and the Esplanade North with an eleven
(11) storey apartment building containing 220 dwelling units (see Attachment 1). In
letters from Options for Homes and Deltera Inc. dated August 23, 2002 (see
Attachment 2), and August 29, 2002 (see Attachment 3) respectively, various requests
of the City are set out pertaining to the reduction and deferral of municipal fees and
development charges.
We have reviewed the Options for Homes letter to the Chief Administrative Officer
dated August 23, 2002; the Report to Council from the Town Solicitor dated May 23,
1998 on the previous Phase (Millennium Building); the agreements between Duffin
Developments Inc., Discovery Place Limited and the Town of Pickering dated January
19,1987, and June 3,1998; other documents as provided to us. The following is based
upon our understanding of the foregoing.
The current proposal calls for 220 units of which 51 per cent (113 units) are one
bedroom and 49 percent (107 units) are two bedroom or larger. Comments in this
report pertain to the financial considerations requested of the City and not the Region
nor the School Boards.
Michel Labbé's letter of August 23, 2002 lays out the detail of his request of the City.
This report addresses the issues in the order they appear in that letter. Also attached
for information is: a letter dated September 3, 2002 from McLevin Co-Operative
Development Corporation (see Attachment 4); an Information Flyer/Letter outlining the
project dated July 10, 2002 (see Attachment 5); an Options for Homes 'Frequently
Asked Questions' sheet (see Attachment 6); a letter dated September 11, 2002 from
the Chief Administrative Officer to Deltera Inc. (see Attachment 7); and, a letter dated
September 16, 2002 from the Chief Administrative Officer to the President, Options for
Homes (see Attachment 8)
Reduction of Cash-in-Lieu for Parkland Dedication Fees
The letter of August 29, 2002 from Elio Zoffranieri, Senior Manager Planning Services
for the Deltera Inc to the Chief Administrative Officer contains the following statement,
in part: "...this letter shall serve as a formal request for both deferral and reduction of
the cash-in-lieu of parkland dedication requirement.. .using the same formula used for
the Millennium Building.. u"
On January 19, 1987 Duffin Developments Inc., Discovery Place Limited and the Town
entered into a Development Agreement respecting the development of lands that
currently comprise the Tridel Apartment and Casita projects. Section 33 of the
agreement provided that a cash-in-lieu payment for the provision of parkland be paid for
Report CS 31-02 Date: November 13, 2002 2' '.'.1
,.u
Subject: Tridel/Options for Homes Development Final Phase Page 4
1200 The Esplanade North (East of Millennium Building)
each residential condominium apartment building prior to the issuance of a building
permit for that building. The agreement set out a formulae for the determination of the
payment amount which included a 10% per annum increase (not compounded) in the
amount payable to provide for inflationary and other escalating factors.
According to the Agreement the payment is to be calculated as follows:
i:! ,392,825 x N
5
(where N is 1.0 if the payment is made in 1987,
and increases at the rate of 0.1 per year thereafter)
At the time the Agreement was entered into the parties anticipated that the entire five
phases of the development would be built out by June of 1990. Unfortunately the
economic climate changed and to date, only four of the five phases have been
completed.
The first three phases of the development, consisting of two apartment towers and the
Casitas, provided parkland cash-in-lieu payments in accordance with the agreement
formulae (totaling $1,086,403). The forth phase, being the 253 unit 'Millennium'
apartment building received some relief in cash-in-lieu payment from Council. Rather
than apply the formulae of the agreement, Council agreed to a payment option which
used the Casita 1994 parkland payment of $473,560 indexed by the rate of inflation
since 1994 established by the Consumer Price Index for Toronto. This resulted in a
payment of $512,335 for the Millennium phase. This represented a benefit of $72,650
to the developer.
Deltera/Options for Homes requests that Council apply the same relief approach to the
cash-in-lieu requirements for the final apartment tower phase. They request that the
payment be based on the Casita payment, indexed by the rate of inflation since 1994.
This will result in a payment of $564,057, which represents a benefit of $132,355 to the
developer (payment of $696,412 would be required under the formulae of the 1987
development agreement if the building permit is issued in 2002).
Desianation as Revitalization Area for the Purpose of Homeowner GranLEliaib~
Options for Homes, in its August 23, 2002 letter, requests that the lands proposed for
the apartment tower development be designated by Council as a "revitalization area" for
the purposes of "making the building eligible for homeowner grants that will soon be
available to purchasers in Ontario". It is stated that this grant will be between $6-8,000
per unit and available to purchasers whose incomes are below the 60th percentile for
Pickering, who are currently renting and buy in a revitalization area. Mr. Labbé of
Options for Homes advised that the grant monies would reduce the first mortgage on
the units, lowering the monthly carrying costs by about $50 per month for each unit.
2 n 2 Report CS 31-02 Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase Page 5
1200 The Esplanade North (East of Millennium Building)
Staff contacted the Ministry of Municipal Affairs and Housing to receive information on
the homeowner grants referenced by Mr. Labbé. The Ministry advised that details on
the affordable urban home ownership program have not yet been finalized or released,
although discussions between the Province and some stakeholders have been held. It
appears that the Federal Government may tie its participation in the grant program to
housing that is made available within designated 'revitalization areas'.
Until such time as details are available respecting this anticipated grant program, it
would be premature for the City to apply any specific 'designations' to this area, such as
a 'revitalization area' designation. Further, these lands are located in the City's
downtown core, within a complex of prestige buildings and in an area considered to
hold high development potential and desirability. The appropriateness and necessity of
designating these lands as a 'revitalization area' would have to be fully considered.
Municipal Fees and levies
Options for Homes further requests that the City defer the first $700,000 of municipal
fees and levies to when the suites are resold. This deferral is requested in order that
their client, the McLevin Corporation, can help 8-12 households with physical disabilities
and requiring care to purchase in the building (special accessibility units). Further, the
deferred funds would be used to help people with their down payments to make units in
the building affordable at various income levels (see Attachment 2). If this amount
determines affordability of the units, then based upon the information provided in Mr.
Labbé's letter, affordability ceases for the original target owner audience upon resale.
Fees and levies normally payable to the City are:
Building Permit Fees (estimated)
Site Plan Approval
Draft Plan of Condo and Release
Parkland Dedication
Development Charges
Total Payable
$145,000
6,250
1,800
696,412
660,000
$1.509.462
Development Char~es
In considering Deltera's request for a reduction in parkland cash-in-lieu payment, one
must also take into consideration the reduction in City development charges provided
by the terms of the 1987 agreement. While the parkland payment requirements under
the 1987 agreement are significant, so is the relief provided by the Agreement in
development charge payments. The agreement requires that the City development
charge (unit levy) be the lesser of the amount of the Town's two-bedroom apartment
Report CS 31-02 Date: November 13, 2002 203
Subject: Tridel/Options for Homes Development Final Phase Page 6
1200 The Esplanade North (East of Millennium Building)
residential unit levy in effect on the day of payment by the owner or $3,000 per unit if
paid after January 31, 1990. When Council granted the parkland payment relief for the
Millennium apartment building in 1998 and processed the building permit, the Town's
two-bedroom apartment development charge was $3,754 (excluding hydro payment of
$663). Consequently, the provisions of the 1987 development agreement did provide
significant savings to the developer of approximately $92,778. The City's current two-
bedroom apartment unit development charge is $4,029, resulting in a significant
savings to the developer of $1029 per two bedroom unit as shown below.
Consideration must be given to the development charge savings provided to the
developer through the 1987 agreement when considering any financial relief that
Council may wish to grant respecting parkland cash-in-lieu payment.
The 1987 Agreement "caps" development charges at $3,000 per unit, which is
confirmed in the 1998 agreement which, when multiplied by the 220 units, equals
$660,000. Inherent in this condition is an unrecognized savings to the developer under
the City's current Development Charge By-Law as follows:
Size
Development
Charge/Unit
$3,021
$4,029
No. of
Units
133
107
Total
$341,373
431 ,1 03
. 660,000
$112.476
One bedroom & smaller
Two bedroom & larger
Less "capped" amount
Unrecognized loss to the City
The proposal calls for the deferral of the $700,000 until the units are sold OR a
minimum of $100,000 per year commencing 5 years after registration of the
condominium and thereafter for 8 Y2 years. The letter states that this would
".. .guaranteeing a 21 % rate of return". There were no details of this calculation but
assuming $100,000 per year for 8 Y2 years equals $850,000. The difference or
additional funds over the deferred $700,000 would be $150,000 which would appear to
produce the 21 % rate of return. HOWEVER, the calculation ignores the time value of
money or the lost interest income on the money deferred. In other words a dollar today
is worth approximately 4 per cent more than a dollar one year from now. Conversely, a
dollar on year from now is worth 96 cents today. As perhaps a "worst case" scenario,
assuming registration takes place one year later plus the deferral of 5 years thereafter
plus the repayment timeframe of 8 Y:z years (assuming no resale) equals a total deferral
of 14 Y:z years. Under these assumptions the $850,000 is worth approximately
$522,000 today. This results in a savings to the developer, or a loss to the City of
$328,000, or 47 per cent. Deducting the $522,000 from the original deferred $700,000
results in a direct cost to the City of $178,000 or 25 per cent.
2 ". r Report CS 31-02
¡Ill
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 7
Under a "best case" scenario, registration takes place immediately upon completion,
which occurs quickly and resales occur at the rate of 10 per cent per year. While no
details are provided on the amount payable to the City upon resale, dividing the
deferred $700,000 by 220 units yields $3,182 per unit or a total of $70,000 per year.
This would occur for the first 5 years totaling $350,000 with $100,000 payable in years
5 through 8 %. The estimate present value of this stream of funds is $536,000
representing a cost to the City, or saving to the developer, of $164,000 or 23 per cent.
Options for Homes also request a deferral of any amounts owing the City in excess of
$700,000 until".. .after the closing of the condominium". We assume this refers to the
registration of the condominium. If correct, then $809,462 ($1,509,462-700,000) would
be deferred for one year resulting in a present value of $778,330 and a savings to the
developer, or cost to the City of $31 ,132.
Mr. Labbé's letter states that the deferrals would be guaranteed by Home Ownership
Alternatives Non Profit Corporation. Until more is known about this company, we
cannot offer comments on this aspect.
Conclusion
The total estimated benefit to the developer, representing either a direct cost to the
City, or lost income is as follows:
Parkland Dedication
Development Charges
Deferral of $700,000
Deferral of over $700,000
Total Benefit
$132,355
112,476
178,000
31 ,132
$453.963
Any financial decisions favouring the developer, especially those involving development
charges, will have to be made up by an increase in property taxes as the majority of
these items affect the Development Charges Study approved by Council in 1999.
General
Pickering Hydro Development Charges applicable prior to August 1999 and no longer
payable save the developer approximately $145,000 using the 1998 amount.
Mr. Labbé's letter states that ".. .Our building will generate approximately $400,000 in
property tax revenue annually". If correct, the City's portion of this amount would be
approximately $154,000 using 2002 Tax Rates, the balance being shared between the
Region of Durham and the School Boards.
Report CS 31-02
Date: November 13, 2002 2 n 5
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 8
I would like to point out that while the letter contains several references to the need for
the City to agree to the requests in order to make the project affordable, and to provide
accessible units, oral communication from Mr. Labbé to the City's CAO's office
indicated that Options for Homes' marketing campaign does not take into consideration
the financial effects of any of the above mentioned reductions or deferrals. This would
seem to indicate that favourable consideration by the City would not have any financial
effect on their proposal. This needs to be clarified.
Finally, the foregoing is subject to review and revision as discussions continue, more
details become known and I become more familiar with this matter. I must caution that
our current financial climate within the City's operations make granting financial
concessions a matter that requires serious consideration.
Attachments:
1.
2.
3.
4.
Location Map
Letter from Options for Homes dated August 23, 2002
Letter from Deltera Inc. dated August 29,2002
Letter from McLevin Co-Operative Development Corporation dated September 3,
2002
Information Flyer/Letter dated July 10, 2002
Options for Homes 'Frequently Asked Questions'
Letter to Deltera Inc. dated September 11,2002
Letter from Options for Homes dated September 16, 2002
5.
6.
7.
8.
2CI6
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 9
Prepared By:
Endorsed By:
-~? ~ =-
Gillis A. Paterson
Director, Corporate Services & Treasurer
Neil Carro
Director, Planning & Development
Approved By:
Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering. Co iI
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August 23, 2002
. Thomas J. Quinn
Chief Administrative Officer
Planning & Developm<mt Department
One The Esplanade '
Pickering, ON
LIV 6K7
Dear MI. Quinn:
Re: Municipal Assistance with the Development of the Condominium at 1200 The
Esplanade North o~ bebalf of our client, the MeLeviD Co:rporatioD
Further to OUX" severa1 conversations. I would confirm that we are requesting, on behalf of our
client, the McLevin Corporation, municipal assistance in several ways to make our development
more effective md accessible to potential purchasers with :moderate incomes.
First and foremost, we would ask that the site be designated a revitalization area for the purposes .
of making the building eligible for homeowner grants that will soon be available to purchasers in
Ontario. This grant will be between $6-8,000 and aVailable to purchasers, whose incomes are
below the 60th percentile for Pickerin& who are cummtly rentizig and buy in a revitalization area. .
I have not seen a definition for 'revitalization area 'but I am sure it would apply to a. piece of .
pFOperty that is an undeveloped hole in the middle of a fully developed neighbourhood;
Second, we would request that the City ofPickerlng agree to defer $700,000 of its mÙn:icipal fees
and levies in order to anow the Corporation to help 8-12 households, with physical disabilities
and requiring care, to purcháse in the building. This, as you know, is a group of individuals with
limited income who can beneñt sigr.IÌficantly ftom the ability to design units to meet their needs
prior to the stan of cønstruction. .
The defeITed :funds would be used to help people wit}) their down payments to make the units in
the building affordable at v~ous income levels.
The deferred funds would be repaid when the suites are resold so that the affordabi1ity would last
for one occupant but the accessibility changes to the suites would be permanent.
468 Queen Street EtJSl.LOWer LeVell, P.O, BOX 28, To.rc11l0. O1It4t:fo MSA.IT7
rei: (416) 867-/501 of 01: (41ó}861-174J. website:opdons.icoinm.œ 0 e-mail: oplionsOicomm.a
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OPTIONS FOR HOMES
PAGE 83
Thomu Quinn
Auguft 23. 2002
Page 2 .
2(t9
The repayment of the defemls would be guarant~ by Home Ownership Alternatives Non-
profit Corporation (BOA), a company that will hold $4, 700~OOO in mortgages with respect to this
site. They will also agree to a repayment schedule that will pay a minimum of $100,000 per year.
starting five years after registration. of the condominium and running for eight and one-half
years, tbU$ guaranteeing a 21 % rate of return. I h~ve included a copy of the current repayment
rate on other developments completed to date as confirmation that the funds will be available as
. required.
Third, and critical to the success of our devèlopment. is a request that the City defer the
coI1~tion ofilie balance of all fees and levies over and above $700.000 until after the Closing of
. the condominium. Once again, BOA would provide its cozporate guarantee as to the payment of
. these funds. The importance to the development is that, because the Corporation is a non-profit,
it needs ~elp coming up with the equity required by its l~dcrs to provide its construction
financing: Municipal deferrals. such as those requested here and pro~ided on our last
deye1<:~pment.by the City of Toronto, are an important part ofacmcving the financial
requirements set by our lenders, .
It is important to note that our building will generate approximately $400,000 in property tax
revenue annually. The sooner this begjns, the better it is for all involved
We believe very strongly that the requests contained in this letter are reasonable, given the
housing crisis that we are all trying to address as effectively as possible. It will also allow for the
creation of a building that will address longstanding neighbourhood issues. Spocifically this
building and this neighbourhood is the best place in Pickering to provide: units designed. to
accommodate individuals with accessibility issues. If the municipality Stipports our request,
instead of producing two or three accessible units. we will be able to produce a sufficient number
to provide the numbers needed to support full-time attendants. Attendant care is critical to
maximizing the effectiveness of accessible units.
We would request ~ meeting with the appropriate individuals so. that we can discuss these
requests further and proyjde the information you need. to bring them to a successful conclusion.
Yours truly,
~~/
Michel Labbé
President
ML:sn
encl.
co: Elio Zoffi:anieri
09/11/2002 09:45
4168671743
OPTIONS FOR HOMES
PAGE 84
210
~ for Homes
The Key to Home Ownership for Everyone
Repayment Experience on Other Developments
Sf. L~wfence (70 MD1 Street [95 ~])
Closing (September. J 998)
Voluntary 7
'Rental 2
9
1999
Sale
Voluntary
Rental
S
1
-2.
11
2000
Sale
Voluntary
3
'2
5
2001
Sale
Voluntary
Rental
5
,2
1
8
1002 (April)
Sale
Voluntary
Tota.l
Sale
Volunta.tt
Rental
4
3
-
7
17
15
8
40 (42%)
Parliament Square (39 Parliament Street (lSI UIJÎtsJ)
Closing CA.pri1 2000)
V~unúny 4S
Rental --á..
, 49 (27%) ,
468 Queen Street EQsl; Lower Level 2. P.O. Box 28, Toronto, onlOtio MSA 117
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211
A!tamatives Mwrpp Røpayment
July 23. 2002 .
Pap:z
Re1natnder of 2000
Voluntary ~
Sale 1 3
-
2001
Voluntary 3
Sale ..£ 11
2002 (May)
Voluntary
Sale ..i 4
Total
Sale 13
Voluntary 50
Rental J 67 (37%)
Mill Street (80 Mill Street [144 Qnits]).
Closing (May 2002)
Sale 1
Voluntary 43
Rental 2 46
Remainder of 2002
Sale 1 1
Total
Sale 2
Voluntary 43
Rental 2 47 (32%)
ATTACHMENT #-3- TO REPORT # CS3J.. Qõ).
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Telephone: (416) 661-9290
Fax: (416) 661-0978
Internet www.trideJ.com
Mr. Tom Quinn City Manager
City of Pickering
Pickering Civic Complex
One the Esplanade
Pickering, Ontario
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Dear Sir:
Re: Request for Deferral and Reduction of Cash-in-Lieu for Parkland dedication Fees
Final Phase - McLevin Corporation '
Further to a meeting of May 3' 2002, with yourself, His Worship Mayor Wayne Arthur,
Mr. Mike Labbe,ofOptions for Homes, Mr. Tony Moro of our office, Mr. Neil Carrol of
your office and myself, this letter shall serve as a formal request for both deferral and
reduction of the cash-in-lieu of parkland dedication requirement to be paid by the
developer using the same formula us6,dfor the Millinium building, being 1000 The
Esplanade'.' ,
The deferral will be more particularily set out in a separate letter being forwarded
directly to you through Mr. Labbe wherein he VliJ/ be requesting a deferral for other
fees and charges such as Development Charges, Building Permit Fees sic;
Trusting the aforementioned is ~ufficient for you to commence the necessary process
and should you r~quire additional information or wish to discuss this matter further,
. please contact the writer.
We would like to take this opportunity to thank you in advance for your favourable
consideration of this matter. '
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Pêr:
Elio Zoffranieri
Sr. Manager Planning Services
hJ1..mh..r n'¡: +h... 'T'CI1P'U:lO ,..--,.-
09/11/2802 89:45
4168671743
OPTIONS FOR HOMES
PAGE 06
MCLEVIN CO-OPERATIVE DEVELOPMENT CORPORATION
4ó8 Queen Street Eost, Lower Level 2, P.O. Sox 28 Toronto, Ontorio M5A 117
Tel: (416) 867-1501 Fox: (.416) 867-1743
213
September 3, 2002
;",TTACHMENT#~ TO REPORT#~-o.::>
Thomas J. Quinn
Chief Administrative Officer
Planning & Development Department
One The Esplanade .
Pick~rin& ON
LIV 6K7
Dear Mr. Quinn:
Re: Updåte on 1200.Tbe Esplanade North
I am pleased to provide the following update on our progr~s with I'C$peci to the condominium
development at 1200 The Esplanade North.
We have now had fOUf sets of presentations to the neighboW'S and Durham residents. Our first
pair of pres(:ßtations was on July 27 and was advertised exclusively to the resídents at Discovery
Place:. Nearly 120 people attended and hatfwere there to get additional information about the
development. .
The other three sets of presentations, held on August 10, 17, and 24, were advertised first to
Pickering residents, then to all of South Durham. In all, we received 81 $lOO.deposits. We
CU1Tently anticipate generating 2S sales ftom these deposits. .
. Based on our previous experience, w~ would a.nticip~te a significant local demand fCJt our suites.
To date our ~ence wîth thîs development hM been very satisfying.
We will keep you aware of our progress throughout the fall Should you wish specific details,
please call me at (416) 867-1501, extension 226.
Yours tridy,
11IW .. -M/Íc /
Michel Labbé
Development Consultant
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~. . n . "ITAC~MENT#-.£..TOREPORT#..G.3~~~ -
... t/~forHOmeS ~ '
~.... 'The Key to Home Own~p for Everyone t . ø;
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468 Queen Street East, P.O. Box 28, Toronto, ON, M5A 1 T7 ¡... ¿
Phone; (416) 867-1501, Fax; (416) 867-1743
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July 10, 2002
1 5 2002
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21.4
Dear Millennium Place Resident:
Options For Homes was estab"tished 10 years ago with one goal in mind. We wanted to offer
. quality housing at attractive prices. We have develòped five condóminiums to date ìn the
Greater Toronto Area, which have achieved this gòa1. ' Our next building wilI be co~structed on
the vacant land at,I200 The Esplanade North. This site represents an unprecedented opportunity
to fiilish the development of your complex with a high quality condominium.
..
Municipal officials have asked that we offer this option to own in this final phase to the
immediate neighbourhood, their friends and relatives. This is your opportunity to be the first in
IIDe for tbese homes at an e~tremely attractive cost price~
Our marketing approach is respectful and low-key. At our ftee presentations, our sales
consultants will provide all relevant information to enable you to make an informed decision. By
using a low cost, ftenzy-free approach, we save on expenses and pass these savings on to" you.
To date all of our condominiums have had owner occupancy levels above 95% and have been
positive additions to their respective neighbourhoods. There is no better way' of continuing this
achievement than targeting those ~ho live next door - or their friends ànd relatives. .
Our condoÍniniums start at:
$ 87,596 . Studio . 472 $ 801.46
98,640 one-bedroom 540 905.30
126,900 one-bedroom. 700 1; 166.42
. 139,500 two-bedroom 750 1,275.80
160,200 two-becl:foom 900 .1,477.88
'"'Based on 5% down, includes P&I (five.year term), taxes, utilities, amenities and maintenance.
*Price does :pot in~lude Alternative Mortgage. Parking starts at $5,500
You must register to attend one of our fIrst free presentations scheduled for: Saturday, July 27,
. and August 10, 2002. . Please pass this infol111ation on to friends and relatives. To register,
please call (416) 867-1501, or visit our website at www.options.komm.ca. We look forward to
seeing you there.
Yours truly,
~
~~
. Michel Labbé
President'
ATTACHMENí #-iL,," TC Rf.P()Rr#...£~31-tJ~
2.1.5
o~ for Homes
The Key to Home Ownership for Everyone
FREQUENTLY ASKED QUESTIONS.
What is Options For Homes Non-Profit Corpora~ion (Options)?
Options For Homes is a privat~, not for profit, corporation led by deveÌopment professionals who
obtain access to residential land and pre-sells ownership homes to low- and moderate-income
households. It co-ordinates the design and development of buildings on these lands with the goal
of keeping all costs to a minimum on behalf of these households.
For whom does Options work?
The initial purchasers of the condominium homes fonn a Co-operative Housing Corporation for
whom Options co-ordinates the development. This Corporation acts as the developer of the
buildings and retains Options as their Development Consultant.
How is Options paid?
Options receives a fee for its services which is included in the purchase price of the
homes. . .
Does the Options' concept require government subsidies?
NO. The Options' concept has been designed to reach low- and moderate-income households
without any form of government subsidy. It has also been designed to focus traditional real
estate market mechanisms directly at the issue of affordable housing in such a way as to be more
and more effective over time. . .
What has Options achieved so far?
. .
To date Options has five condominiums completed or under construction.
1.
The Weston Village Co-operative has successfully developed and sold a $6
million, 42-unit, townhouse condominium at Lawrence Avenue and Weston Road in
Toronto. Prices for the three-bedroom townhouses ranged ftom $128,900 to $152,000.
The homes were affordable to households with incomes as low as $32,000 per year.
468 Queen Street East, Lower Level 2, P.O. Box 28, Toronto, Ontario M5A IV
tel: (416) 867-1501.jax: (416) 867-1743. website: options.icomm.ca. e-mail: options@icomm.ca
216
Page 2
Frequently Asked Questions
2.
The S1. Lawrence Co-opèrative has successfully completed and sold a $17 million, 95-
unit, apartnient condominium at Parliament and Front Streets, a 15- minute walk ITom
downtown Toronto. It has one-, two- and three-bedroom suites that sold at $50,000
below the cost of other newlY. constructed condominiums in the same area. The suites
were sold to households with incomes as low as $16,000 per year.
3.
The Parliament Square Co-operative is a 181-unit condominium, one block ITom the S1.
Lawrence building. It is a $32 million building and offers attendant care services to 12
purchasers who require care because of personal mobility restrictions. It has been able to
offer bachelor suites for as little as $65,000. Several owners are in an income bracket
below $15,000 per year. The building was fully sold as of November 1999, four months
before final occupancy
4.
The Mill Street Co-operative is a 144-unit building completed and occupied at the end of
2001. It has a value of $27 million and is located next door to the S1. Lawrence
condominium.
5.
The Shennount Co-operative started the construction of its $70 million, 430-unit
townhouse and apartment condominium at 650 Lawrence Avenue West in March of
2001. The City of Toronto agreed to defer the payment of its development charges,
levies and pennit fees in order to allow the Co-operative to accommodate fifteen (15)
low-income seniors in the building.
Options has three clients cUlTently developing their condominiums.
1.
The Pentland Co-operative is selling a 208-unit apartment building east of the Pickering
Town Center.
2.
The Queen Street Co-operative is developing a 282-unit townhouse and apartment
condominium at the comer of Queens Plate Drive and Rexdale Avenue in north
Etobicoke. -
3.
The McLevin Co-operative is developing a 456-unit townhouse and apartment
condominium in the Malvern Town Centre in northern Scarborough. -
How does Options prevent the flipping of its homes for quick profits?
Because Options cUlTently makes homes available at 10-15% below market value and will offer
even better reductions in the future, all homes carry a second mortgage on title that equals the
difference between the cost price and market value. These mortgages are payable upon resale
and go into an equity pool that must be used to develop other similar projects. This allows
owners to sell at any time and benefit from a market appreciation only on the funds they invested
themselves. There has be'en $1.9 million in cash and $13 million in mortgages generated on the
first five buildings (see the attached Co-operative Deferral example).
Page 3
Frequent1y Asked Questions
2.1.7
For whom can Options provide homes?
Options' concept can provide homes for all income groups and household situations except the
hard-to-house, or individuals who currently d~ not have the skills to care properly for their
housing. More specifically, Options enables individual or households with limited resources to
own homes by increasing the amount of their Alternatives Mortgage, thereby adding to their
downpayments. The third wave of Options projects should be offering 20-30% of the homes to
households below Toronto's poverty line.
Why can Options do what no one else has been able to do?
By focusing exclusively on affordability, Options brings a unique perspective to the housing
market (see the attached cost comparison chart). This allows us to eliminate costly amenities,
vastly reduce marketing costs and eliminate overall development profits. An average reduction
of $40,000 per suite has been achieved to date in the City of Toronto and $20,000 in smaller
municipalities. .
Why is Options talking to government agencies?
Left on its own, the Options' concept will take 40 to 50 years to become a successful nation~l
source for affordable housing. Given proper policy support and infra-structure development
support, low- and moderate-income Canadians can benefit from this concept in a significant way
(10-20,000 units per year) within 5 years.
Is Options willing to share its knowledge?
YES. Options is not interested in becoming a national company with offices in each major urbaJf
area. Instead we would prefer to train and monitor several non-profit òrganizations in the
delivery of the Options' concept in their respective regions. lfthe opportunities were sufficient
in any given region, Options would train several organizations. To date, Options is working with
other organizations in Ottawa, in the Kitchener Waterloo region of Ontario, and in the
Vancouver area of British Columbia.
Pickering Civic CO]
, One The Espl!
Pickering, 01
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Direct Access 905.42C
cityofpickerlnE
ATTACHMEN"f #-1- TO REPORT#~.31-0.;L
Septerhber11, 2002 ,
Efio Zoffranieri
Delter~ Inc.
4800 Dufferin Street
Toronto, ON M3H 5S9
Subject:
Tridel/Options for Homes Development of Final Phase'
East of 1000 The Esplanade (Millennium Building)
City of Pickering
,File: PO 1000
Thank you for yo-ur letter of August 29, 2002, respecting the 'request for deferral and
reduction of cash-in-lieu for parkland dedicatfo!1 fees, final phase-McLevin Corporation'.
The City looks forward'to the completion of a quality development on this important
block' within our downtown. Your letter provides a specific proposal for a reduction in
cash-in-lieu of parkland ,payment and makes referenc~ to a forthcoming request from
Mr. Labbe of Options for Homes for deferral of parkland payments and other charges
such as development charges, building pefT!1it fees, etc.
, ,
'WhHe I understand the reasons for- Tridel's' and Options for' Homes' request for relief in
, various pàyment requirements, I would be very concerned if the current marketing being
condUf;:ted by Options for Homes, including unit prices, is in any way dependent on
financial relief being approved by Pickering Council. 'To date the City has not provided
an indication of its acceptance of any red~çtio"n or deferral of payments related to this
apartment development. Our meeting of May 3, 2002 was a general discussion" and it
, was concluded at that meeting that a City, position on any reduction or deferral of
payments could only be determined following a definitive proposal by Tridel/Options for
, Homes, and full consideration by Council. While I can advise of my general support to a
possible reduction in parkland' cash-in-lieu payment based Or:! the $ame formula used
for the Millennium building, this" and other requested reductions/deferrals require the
formal approval of Pickering Council. It would be inappropriate to secure pllblic interest
in this development based on potential financial reductiqns/deferrals that have not þeen .
foni1allyapproved. If any such assumptions have been included in the marketing of this
project, those representing the project will be on their own to deal with any public
concern, should approvals not be secured. '
, i
Elio Zoffranieri
Tridel/Optioris for Homes
Development of Final Phase
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September 11 20.02
.' . 21"9.
Page 2
. Upon receipt' of details from Mr. Labbe respecting proposed deferral~ in fees and
charges, I will instruct àpprcipriate City staff to review the request and report to me
directly. J will then bring the matter forward for Council's consideration. Again, I look.
forward to working with you in the completion of this final phase of dev~lopment.
Yours truly
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T~9:lr
Copy:
Mayor Arthurs
Members of Council. .
DirectÖr, Corporate Services & Treasurer
Director, Operations & Eme~gency Services
Director, Planning & Development'
Solicitor for the. City
Michel Labbe (Options. fòr Homes)
",';IACHI"ItI{¡ #1- TOREPORT#~/~o.;l
Pickering Civic Complex
One The Esplanade
Pickering, Ontario
Canada
LlV6K7
Direct Access 905,420.4660
cityofpickering.com
PI CKE RIN G
OFFICE OF THE CHIEF ADMINISTRATIVE OFFICER
Department 905.420.4648
Facsimile 905.420.6064
cao@city.pickering.on.ca
September 16, 2002
Michel Labbé
President
Options for Homes
468 Queen Street East
Lower Level 2
P.O. Box 28
Toronto, ON M5A 1T7
Subject:
Condominium Development at 1200 The Esplanade North
McLevin Corporation
City of Pickering
- File: PO 1000
Thank you for your letters dated August 23, 2002 and September 3, 2002, both of which were
received at my office by fax on September 11, 2002. I have forwarded copies of these letters to
appropriate City Staff for review and comment back to my office. I expect that a meeting will be
arranged between yourself and City Staff in the near future to allow for further discussion of your
proposal.
I have attached for your information, a copy of my September 11, 2002 letter to Elio Zoffranieri
of Deltera Inc., to which you were copied. The letter outlines the fact that to date, the City has
not approved any reductions/deferrals of payments related to this project and expresses my
concern if marketing of the project has included any dependency on financial relief from the
City. While City staff will give full consideration to your proposal, any financial relief or area
designation will require formal Council approval.
Yours truly
TJQ:lr
Attachment
Copy:
"
Mayor Arthurs
Members of Council
Elio Zoffranieri (Deltera Inc.)
Director, Corporate Services & Treasurer
Director, Operations & Emergency Services
Director, Planning & Development
Solicitor for the City