Loading...
HomeMy WebLinkAboutCS 21-04PICKERING REPORT TO COUNCIL Report Number: CS 21-04 Date: July 21,2004 From: Gillis A. Paterson Director of Corporate Services & Treasurer Subject: 2004 Development Charges Study for the City of Pickering Recommendation: It is recommended that Report CS 21-04 of the Director, Corporate Services & Treasurer be received for information and that: 1. Report CS 21-04 be approved by Council; the Development Charges Background Study dated June 4, 2004 as amended by this report, as prepared by C.N. Watson and Associates Ltd. as required under Section 10(1 ) of the Development Charges Act, 1997 be approved; the proposed capital programs contained in the Background Study be indicative of Council's intention to ensure that the capital expenditures required to meet the increase in need for services related to the forecasted development will be met, as required under Paragraph 3 of subsection 5(1) of the Development Charges Act, 1997; nursing homes and hospitals be exempted from City development charges as provided for in the By-law 6349/04, Clause 1(2)(f), in addition to those uses included in the proposed By-law clauses 1 (2)(a) to (e) and 11(2)(a); Report CS 21-04 Date: July 21,2004 Subject: 2004 Development Charges Study for the City of Pickering Page 2 5a) the Residential Development Charges for the unit types as included in Table 1 (A) below be approved to be imposed on a uniform basis effective September 1, 2004: TABLE 1 (A) CITY OF PICKERING RESIDENTIAL DEVELOPMENT CHARGES Per Residential Dwelling Unit Effective September 1,2004 APARTMENTS SINGLE & ALL OTHER TWO ONE SEMI- DWELLING BEDROOM BEDROOM SERVICE DETACHED UNITS & LARGER & SMALLER General Government Studies 103 84 58 40 Fire Protection 322 262 181 126 Transportation - Roads & Related 3,332 2,717 1,873 1,294 Storm Water Mgmt. 223 182 126 86 Transit 421 343 234 164 Parks & Recreation - Parkland Dev. & Trails 1,181 963 684 459 Recreation Facilities 1,763 1,438 991 685 Library 468 383 264 182 TOTAL 7,813 6,372 4,391 3,036 Report CS 21-04 Date: July 21,2004 Subject: 2004 Development Charges Study for the City of Pickering Page 3 5b) the Residential Development Charges for the unit types as included in Table 1 (B) below be approved to be imposed on a uniform basis effective January 1, 2005: TABLE 1 (B) CITY OF PICKERING RESIDENTIAL DEVELOPMENT CHARGES per Residential Dwelling Unit Effective January 1,2005 APARTMENTS SINGLE & ALL OTHER TWO ONE SEMI- DWELLING BEDROOM BEDROOM SERVICE DETACHED UNITS & LARGER & SMALLER General Government Studies 107 87 61 40 Fire Protection 336 273 191 126 Transportation - Roads & Related 3,475 2,822 1,974 1,294 Storm Water Mgmt. 233 189 132 86 Transit 439 357 249 164 Parks & Recreation - Parkland Dev.& Trails 1,232 1,001 700 459 Recreation Facilities 1,839 1,494 1,045 685 Library 489 396 278 182 TOTAL 8,150 6,619 4,630 3,036 o the Non-Residential (Commercial, Industrial and Institutional) Development Charge be imposed on a uniform basis effective September 1, 2004 at the rate of $18.41 per square metre ($1.71 per square foot) and effective January 1, 2005 at the rate of $23.79 and $2.21 respectively. This represents the charge for roads and related only. INDEXING the Director, Corporate Services & Treasurer be directed that residential and non- residential development charges be indexed annually on July 1 each year by applying the annual change in the Statistics Canada Quarterly "Construction Price Statistics" to March 31 of each year, unless otherwise approved by Council; EXEMPTIONS all exemptions and exceptions be as required under the Development Charges Act, 1997 and as defined in By-law 6349/04; Report CS 21-04 Date: July 21,2004 Subject: 2004 Development Charges Study for the City of Pickering Page 4 10. 11. 12. 13. 14. 15. 16. TRANSITION PROVISION any bona fide and complete permit applications received prior to September 1, 2004 will be subject to the development charge rates that prevail prior to this effective date. The same transitional rule applies to applications received prior to January 1,2005. · GENERAL the Director of Corporate Services and Treasurer and other appropriate staff be authorized to develop a Master Servicing and Financing Plan for the City of Pickering; Reserve Funds for which the Development Charges attached By-law be established for each service as existing reserve funds be consolidated where necessary; are collected under the defined above and any the City continue the Reserve Fund established for the City's share (ie. the non- development charge portion) of the costs of services included in the Development Charges Study and that contributions be included in the Annual Current Budget for consideration by Council; Council confirm that the Treasurer under Section 63(3)2 of the Development Charges Act, 1997 has the discretion to transfer such funds, thus the total of $740,000 for City facilities and $1,863,000 for parkland acquisitions have been transferred to fire facilities and major recreation facilities reserve funds respectively; the originally proposed By-law has been modified since the public meeting on June 21, 2004, and Council confirms that no further public meeting under the Development Charges Act, 1997 (S. 12) is necessary as a result; the Clerk of the City of Pickering be instructed to undertake the By-law passage notification provisions under the Development Charges Act, 1997 and Ontario Regulation 82/98; the By-Jaw attached to this report be read three times and approved at this meeting of Council; and, 17. the appropriate staff of the City of Pickering be authorized to give effect thereto. Executive Summary: As required under the Development Charges Act, 1997 a complete review of development forecasts, servicing needs, financial implications and financing requirements has been undertaken by the consultants: C.N. Watson & Associates Ltd., iTrans Consulting Inc., and Totten Sims Hubicki Associates, and staff of the City of Pickering. This has resulted in the identification of significant capital expenditures required for future development as contained in the Council approved Report CS 21-04 Date: July 21,2004 Subject: 2004 Development Charges Study for the City of Pickering Page 5 Official Plan for the City of Pickering. Financing for these projects will come from development charges for the development related portion and the tax levy, or other sources of revenue as may be available, for the portions attributable to existing development or for increases in the level of service. The revised development charges stipulated in Recommendations 5a) and 6 of this report will become effective for all building permits issued on or after September 1, 2004. However, in accordance with the City's past practices, a transition practice will be applied to permit applications currently being processed, and other applications received prior to September 1, which may not be issued prior to that date. Accordingly, any bona-fide and complete permit application received prior to the effective date of this By-law, which could, given sufficient time and resources, be issued by the City, will be subject to the present development charges. This practice is essential for the orderly review and issuance of building permits during the development charge transition period. Provision for this has been included in the By-law. The same will apply to the development charges implemented on January 1, 2005 under Recommendations 5 b) and 6. It is important to note that the Chief Administrative Officer, the Directors and staff of all Departments providing services for the new development and for which charges will apply, have been involved in this study and concur with this report and its Recommendations. In addition the By-law maintains the form of the previous By-law. Financial Implications: Approval of the Recommendations contained in this Report together with the information contained in the Background Study should provide for the provision of services and the financing thereof as will be required for new development. However, the effect on future years' property taxes will continue to be reviewed as this study only provides for the financing of the new development related portion of the costs which, on average, is 45 percent of the total costs. The remaining 55 percent will have to come from future years' property taxes or other sources of revenue. While the total increase for residential development charges per single detached unit is approximately $673, one must bear in mind that approximately $330 of this amount would have occurred regardless as a result of annual indexing. The balance of the increase of approximately $343 is mainly attributable to a somewhat improved level of service since the last study in 1999 plus more refined cost estimates for the replacement value of the assets included in the study. Report CS 21-04 Date: July 21,2004 Subject: 2004 Development Charges Study for the City of Pickering Page 6 Background: Reference is made to the Development Charges Background Study, June 4, 2004 as amended, for complete details of the study and the calculation of the Development Charges. MEETING WITH DEVELOPMENT INDUSTRY Over the course of the study several meetings and telephone discussions were held with members of the Urban Development Institution, Durham Chapter, the Durham Homebuilder's Association and their consultant, the IBI Group hired by these bodies to review our study. These discussions have been beneficial both to the City and these groups as we each gained a better understanding of concerns and matters of interest. While we did not come to agreement on all matters discussed the groups gained a better understanding of the City's Study, the calculation of the development charges and our concerns. I think it is safe to say they were pleased that any increases would be phased in and that the commercial/industrial charge would remain well below the amount justified in the Study. They also raised some questions regarding our development charge reserve funds, cost and benefit issues related to roads, and population per unit which led us to re-examine some of our assumptions, which resulted in lower development charges being recommended to Council. The June 4, 2004 Background Study proposed a rate of $8,838 for single detached unit and $38.43 per square metre ($3.57 per square foot) for non-residential rate. The total calculated reduction based on staff's responses to IBl's questions received is $505 for residential single detached unit and $0.16 per square foot of the non-residential rate. Further reduction was considered to deal with roads for IBI questions regarding this service. As the latter part of IBl's questions were forwarded to the City on July 14, 2004, compounded with staff summer vacation schedules, there was insufficient turnaround time to respond to all of IBl's second set of questions. As a result, a further 5% ($183) reduction was considered for the roads service, bringing the combined total reduction of $688 for the single detached residential unit and non-residential reduction of $0.28 per square foot. Please refer to Attachment 4 for the detailed calculation of how the reduction was derived. Based on the above-mentioned reductions, the revised rates for a single detached residential unit and non-residential are $8,150 and $35.41 per square metre ($3.29 per sq. foot) respectively. Revisions were also made to the rates for all other residential dwellings. However, the recommended non-residential rate will be $23.79 per square metre ($2.21 per square foot). Please refer to "Non-Residential Development Charges" section for further explanation. Report CS 21-04 Date: Subject: 2004 Development Charges Study for the City of Pickering July 21,2004 Page 7 DEVELOPMENT CHARGES - COMPARISON OF PICKERING PROPOSED RATES WITH OTHER DURHAM MUNICIPALITIES Attachment 2 provides a table for comparison between Pickering's Study results and neighbouring municipalities. The reductions in Pickering's charge have brought it very closely in line with the charges in Ajax and Whitby. Reference is made to Appendix F "Comparison with Development Charges Elsewehere" of the Study document and to Attachment 2 of this report. In Appendix F of the Study, it can be seen that as of January 1, 2004 Pickering's residential charges were more or less in the middle of the survey group while our industrial/commercial charges were at the Iow end. As many municipalities are also updating their studies at this time, an update is not possible. However, Attachment 2 to this report compares the latest data available for our immediate neighbours, indicating a marginally higher residential charge for Pickering (except in the case of Oshawa). Our commercial/industrial charge, should Recommendation 6 providing for a reduced charge be adopted, will be comparable or slightly less than in those municipalities. EXEMPTIONS Under the previous Report, Study and By-law, Council could exempt group homes, nursing homes, retirement homes, non-profit housing and registered charitable organizations from paying the City's development charges. Under Recommendation 4 and By-law 6349/04 Clause 1(2)(f), exemption is now automatically provided for nursing homes and hospitals. This further removes the need for nursing homes and hospitals to be aware beforehand that an exemption could be granted upon application to Council. Under the new policy, the exemption will be applied by the Chief Building Official at the time of application for the building permit in accordance with this new proposed By-law. On the other hand, it is felt that exempting a broader category to include non-profit institutions, charitable organizations, group homes, and retirement homes will result in a significant loss in revenues from development charges. Thus, those organizations mentioned above will be subject to the usual development charges. This aligns the City of Pickering with many of the municipalities in Ontario in its treatment of the above category. NON-RESIDENTIAL DEVELOPMENT CHARGES In adopting the Recommendations of the 1999 Development Charges Report, Council provided for the introduction of a non-residential (commercial, industrial) development charge. It was established at a rate of $11.00 per square metre ($1.02 per square foot) which was less than half of the amount determined to be justified under the Study. It did however equal the amount of "levy room" provided by withdrawal of Pickering Hydro from the calculation under new legislation governing hydro utilities and their successor companies. Therefore, the introduction of this new non-residential charge did not increase the total collected by the City on each building permit. Report CS 21-04 Date: July 21,2004 Subject: 2004 Development Charges Study for the City of Pickering Page 8 The 2004 Study as amended identified a potential non-residential development charge of $35.41 per square metre ($3.29 per square foot). This rate is a 172 percent increase from the existing $13.04 per square metre ($1.21 per square foot) rate. It was considered that a charge of this magnitude had the potential to adversely affect non- residential development in the City, especially when taken together with the recently increased Regional charge. In order to stay competitive, encouraging non-residential growth, while at the same time having this sector contribute financially to the main hard service they require, so as to not shift all of the burden to property taxes, it is recommended that a charge of $23.79 per square metre ($2.21 per square foot), be approved for roads and related services only. Furthermore, it is recommended that the increase be implemented through a phase-in of 50 percent on building permit applications submitted after September 1, 2004 from $13.02 to $18.41 per square metre ($1.21 to $1.71 per square foot) and the final 50 percent on building permit applications submitted after January 1, 2005 from $18.41 to $23.79 per square metre ($1.71 to $2.21 per square foot). TAX IMPACT All projects included in the Study are prompted by the need to service new development. This need may be more in the newer developing, less serviced areas or less in the older areas of the City. The more a project benefits new development the more of the costs that can be recovered via development charges. It is the projects in the older, more developed parts of the City that produce the most significant impacts on the tax levy as, in many instances, much of the financing must come from the tax levy. On the other hand, the size and number of projects in the newer areas produces a significant tax impact in total. The total capital program projected in the study totals some $146 million over the study period. Of this amount, the background study has indicated that up to $70 million will come from development charges. However, based on our proposed reduction in the non-residential charges and the new exemptions, $66 million or 45 percent will come from development charges. The balance of $80 million will have to come from tax revenues or other available sources of funds. Careful planning and management of the City's finances over the next 20 years will be required. Long range financial planning and management must be a priority of Council and staff. Previous reports to Council including annual budget reports and the 1999 Development Charges Study report discussed this topic. SEATON The 2004 Study excludes the Seaton area as the Growth Management Study process is not complete. Basically this means that "Seaton specific" services are excluded, as are any population and employment growth forecasts and their resultant demands on "non Seaton specific" services. Report CS 21-04 Date: Subject: 2004 Development Charges Study for the City of Pickering July 21,2004 Page 9 It is anticipated that, at the appropriate time, as may be deemed beneficial by the Chief Administrative Officer and the Director, Corporate Services & Treasurer, studies will be undertaken on the servicing of these lands, the effects of the resultant population growth on existing services and the costs and financing, including development charges, of the same. At the appropriate time means, for example, when the disposition of what is known as the "Seaton lands" is certain. CAPITAL LEVY A Capital Levy will have to be considered by Council as early as the 2005 Budget. This levy will be required to pay for the increasing debt charges on debt issued for the City's share of the Development Charge Program as funding from current revenues will not be sufficient. A Capital Levy of 1 percent, or $300,000 for example, cumulative each year will fund an annual debt increase of approximately only $2.2 million. More may very well be required. The planning, especially the timing, of all capital expenditures will be imperative. GENERAL Recommendation 12 provides for the continuance of the Reserve Fund established under the 1999 Background StUdy for the non-development charge portion, on which contributions continue to be made, mainly from the tax levy. The objective is that funds will be accumulated, desirably on an annual basis, to be available to pay the non- development charge sham of the costs (City's share) at the time the project is approved by Council. This should help avoid undue upward pressure on the tax levy that can occur with uneven expenditure requirements. Recommendations 11 through 17 are more or less housekeeping approvals. It is the intention to undertake an overview of the Study, the development charges and all sources of financing each year in conjunction with the preparation of the annual budgets. A complete, intensive development charge study will be undertaken no later than five years hence. Attachments: 1. By-law No. 6349/04 2. Comparison of Proposed/Approved 2003-2004 Development Charges for Municipalities in Durham Region 3. Comparison of Current vs. Proposed Development Charges for City of Plckering 4. Summary of Modifications Made to the June 4, 2004 Background Study DC Calculation Report CS 21-04 Date: July 21,2004 Subject: 2004 Development Charges Study for the City of Pickering Page 10 Prepared By: Caryn Kong Senior Financial Analyst Prepared / Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer GAP/vw Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering ~,,.y Co~ ~as J. ~/n,. Chie~Ominis~ ATTACHHENT # J-L_..TO R,F. POR,T #~/- THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 6349/04 Being a By-law regarding Development Charges WHEREAS, pursuant to the provisions of Section 2(1) of the Development Charges Act, 1997 (the Act), the council of a municipality may by By-law impose development charges against land to pay for increased capital costs required due to increased needs for servicing arising from development of the area to which the By-law applies; and WHEREAS the Council of the Corporation of the City of Pickering, approved the City of Picketing Development Charge Background Study, dated June 4, 2004, as amended, prepared by C.N. Watson & Associates Ltd., Economists; AND WHEREAS the Council has made the Background Study and proposed Development Charges By-law available to the public at least two weeks prior to the public meeting and has given Notice in accordance with Section 12 of the Development Charges Act, 1997 of its development charges proposal and a public meeting was held on June 21,2004; AND WHEREAS the Council has heard all persons who applied to be heard in objection to, or in support of, the proposed Development Charge By-law proposal at such public meeting, and provided a subsequent period for written communications to be made; AND WHEREAS the Council in adopting the Development Charge Background Study on July 26, 2004 directed that development charges be imposed on land under development or redevelopment within the geographical limits of the municipality as hereinafter provided. NOW THEREFORE the Council of The Corporation of the City of Pickering hereby ENACTS AS FOLLOWS: PART 1 APPLICATION 1. (1) Subject to subsection (2), this By-law applies to all lands except for Provincially owned lands commonly referred to as "Seaton lands" in the City of Pickering, as shown on the map attached to this By-law as Appendix "A' whether or not the land or use is exempt from taxation under Section 3 of the Assessment Act. (2) This By-law shall not apply to land that is owned by and used for the purposes of, (a) a board of education as defined under subsection 1(1) of the Education Act;, (b) any municipality or local board thereof; (c) the development of a non-residential farm building used for bona fide agricultural purposes; (d) a building or structure that is used in connection with a place of worship and is exempt from taxation under the Assessment Act as a result; (e) development where, by comparison with the land at any time within ten years previous to the imposition of the charge: (i) no additional dwelling units are being created; (ii) no additional non-residential gross floor area is being added. (f) nursing homes and hospitals. (3) An owner who has obtained a demolition permit and demolished existing dwelling units or non-residential area in accordance with the provisions of the Building Code Act shall not be subject to the development charge under subsection (1) with respect to the development being replaced, provided that the building permit for the replacement residential units or non-residential area is issued not more than 10 years after the date of demolition and provided that any dwelling units or additional non residential floor area created in excess of What was demolished shall be subject to the development charge calculated under Section 6 and 11, respectively. (1) Subject to subsection (2), development charges shall apply, and shall be calculated, paid and collected in accordance with the provisions of this By-law, in respect of land to be developed for residential use, non-residential use, or both, where the development requires, (a) the passing of a zoning By-law or of an amendment to a zoning By-law under Section 34 of the Planning Act, (b) the approval of a minor variance under Section 45 of the Planning Act, (c) a conveyance of land to which a By-law passed under subsection 50(7) of the Planning Act, applies; (d) the approval of a plan of subdivision under Section 51 of the Planning Act; (e) a consent under Section 53 of the Planning Act; (f) the approval of a description under Section 50 of the Condominium Ac~ or (g) the issuing of a permit under the Building Code Act, in relation to a building or structure. (2) Subsection (1) shall not apply in respect of: (a) local services, related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as a condition of approval under Section 51 of the Planning Act, (b) local services to be installed or paid for by the owner as a condition of approval under Section 53 of the Planning Act. (3) Subsection (1) shall not apply with respect to only bona fide and complete permit applications received prior to the effective dates of the development charge rates as specified in Sections 6 and 11. (1) (2) In this (a) (b) (c) (d) (e) (f) (g) (h) (i) d) (k) Where two or more of the actions described in subsection 2(1) are required before land to which a development charge applies can be developed, only one development charge shall be calculated, paid and collected in accordance with the provisions of this By-law. Notwithstanding subsection (1) above, more than one development charge By-law may apply to the same area and if two or more of the actions described in subsection 2(1) occur at different times, and if the subsequent action has the effect of increasing the need for services as designated in Sections 5 and 10, an additional development charge shall be calculated, paid and collected in accordance with the provisions of this By-law. PART II RESIDENTIAL DEVELOPMENT CHARGES part, "apartment building" means a residential building, or the residential portion of a mixed-use building, other than a triplex, semi-detached duplex, semi-detached triplex, townhouse or stacked townhouse, consisting ot more than 3 dwelling units, which dwelling units have a common entrance to grade; "apartment" means a dwelling unit in an apartment building; "bedroom" means any room used, or designed or intended for use, as sleeping quarters; "development charge" means residential development charge; "dwelling unit" means a room or suite of rooms used, or designed or intended for use by one person or persons living together, in which culinary and sanitary facilities are provided for the exclusive use of such person or persons; "garden suite" means a one-unit detached, temporary residential structure containing bathroom and kitchen facilities that is ancillary to an existing residential structure and that is designed to be portable; "grade" means the average level of finished ground adjoining a dwelling at all exterior walls; "gross floor area" means the total floor area, measured between the outside of exterior walls or between the outside of exterior walls and the centre line of party walls dividing the building from another building, of all floors above the average level of finished ground adjoining the building at its exterior walls. "semi-detached dwelling" means one of a pair of dwelling units attached together horizontally above or below grade or both above and below grade; "single-attached dwelling" means one of a group of not less than three adjacent dwelling units attached together horizontally by above grade common walls; "single-detached dwelling" means a single dwelling unit which is free-standing, separate and detached from any other building or structure. "nursing home" means a building owned and operated on a non- profit basis but excluding any building or part of a building which is comprised of dwelling units. (m) "hospital" means land, buildings or structures used, or designed or intended for use as defined in the Public Hospitals Act, R.S.O. 1990, c. P. 40 as amended;. Development charges against land to be developed for residential use shall be based upon the following designated services provided by the City: (a) development-related capital studies; (b) fire stations and equipment and services related thereto; (c) storm drainage and management works and equipment and services related thereto; (d) transportation, operations and equipment, including roads, sidewalks, streetlights, traffic signals and services related thereto; (e) transit and equipment and services related thereto; (f) (g) parkland development and trail development and equipment and services related thereto; major indoOr recreatiOnal facilities and equipment and services related thereto; and (h) libraries and furnishings and (non-computer) equipment and services related thereto, including circulating and non-circulating materials generally provided to library users by public libraries. Subject to the provisions of this Part and this By-law, development charges against land to be developed for residential use shall be calculated, paid and collected at the following rates, with phasing in portions of this schedule of residential per unit charge as follows: TABLE I(A) EFFECTIVE SEPTEMBER 1, 2004 TYPE OF DWELLING UNIT Single-detached dwelling, or semi-detached dwelling Apartment dwelling, two or more bedrooms Apartment dwelling, less than two bedrooms (inclusive of senior citizen apartment units) All other dwelling units CITY WIDE CHARGE PER UNIT $7,813 $4,391 $3,036 $6,372 TABLE I(B) EFFECTIVE JANUARY 1, 2005 TYPE OF DWELLING UNIT CITY WIDE CHARGE PER UNIT Single-detached dwelling, or semi-detached $8,150 dwelling Apartment dwelling, two or more bedrooms $4,630 Apartment dwelling, less than two bedrooms $3,036 (inclusive of senior citizen apartment units) All other dwelling units $6,619 (1) Subject to subsections (2) and (3), Section 6 shall not apply in respect of a renovation, addition or installation which involves the creation of: (a) one or two additional dwelling units in an existing single- detached dwelling; or (b) an additional dwelling unit in any other existing residential building; (c) garden suites. (2) Notwithstanding clause (1)(a) of this Section, development charges shall be calculated, paid and collected in accordance with Section 6 where the total gross floor area of the additional unit or units is greater than the total gross floor area of the existing dwelling unit. (3) Notwithstanding clause (l)(b) of this Section, development charges shall be calculated, paid and collected in accordance with Section 6 where the additional unit has a gross floor area greater than, (a) in the case of a semi-detached dwelling or single attached dwelling, the gross floor area of the dwelling unit already in the building; (b) in the case of any other residential building, the gross floor area of the smallest dwelling unit contained in the residential building. Where non-residential floor area is to be converted to residential space, a charge shall be paid for any new residential units created, less the amount of the charge which would be payable if the existing non-residential space being converted were being constructed. PART III NON-RESIDENTIAL DEVELOPMENT CHARGES In this part, (a) "development charge" means non-residential development charge; (b) "grade" means the average level of finished ground adjoining a building at all exterior walls; (c) "existing industrial building" means a building used for or in connection with: (i) manufacturing, producing, processing, storing or distributing something, (ii) research or development in connection with manufacturing, producing or processing something, retail sales by a manufacturer, producer or processor of something they manufactured, produced or processed, if the retail sales are at the site where the manufacturing, production or processing takes place, 10. (iv) office or administrative purposes, if they are: (1) carried out with respect to manufacturing, producing, processing, storage or distributing or something, and (2) in or attached to the building or structure used for that manufacturing, producing, processing, storage or distribution. (d) "gross floor area" means the total floor area, measured between the outside of exterior ~alls or between the outside of exterior walls and the centre line of party walls dividing the building from another building, of all floors above the average level of finished ground adjoining the building at its exterior walls. (e) "non-residentiaF means designed, adapted or used for any purpose other than a dwelling or dwellings, or accessory uses or spaces to a dwelling or dwellings. (f) "total floor area" means the sum total of the areas of the floor whether above or below grade, measured between the exterior faces of the exterior walls of the building or structure or from the centre line of a common wall separating two uses; and (i) includes the area of mezzanine as defined in the Ontario Building Code; and (ii) excludes those areas used exclusively as mechanical areas or for parking garages or structures. Development charges against land to be developed for non-residential use shall be based upon the following designated services provided by the City: (a) development-related capital studies; (b) (c) fire stations and equipment and services related thereto; storm drainage and management works and equipment and services related thereto; (d) transportation, operations and equipment, including roads, sidewalks, streetlights, traffic signals and services related thereto; (e) transit and equipment and services related thereto; (f) parkland development and trail development and equipment and services related thereto; (g) major indoor recreational facilities and equipment and services related thereto; and (h) libraries and furnishings and (non-computer) equipment and services related thereto, including circulating and non-circulating materials generally provided to library users by public libraries. 11. (1) Subject to the provisions of this Part and this By-law, development charges against land to be developed for non-residential use shall be calculated, paid and collected at the following rate, with phasing in portion of the rate as follows: $18.41 per square metre ($1.71 per sq. ft.) of total floor area, effective Sept. 1, 2004 $23.79 per square metre ($2.21 per sq. ft.) of total floor area, effective January 1,2005; (2) If a development includes the enlargement of the gross floor area of an existing industrial building, the amount of the development charge that is payable in respect of the enlargement will be determined as follows: (a) if the gross floor area is enlarged by 50 pement or less, the amount of the development charge in respect of the enlargement is zero; and (b) if the 9ross floor area is enlarged by more than 50 percent, the amount of the development charge in respect of the enlargement is the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows: (i) determine the amount by which the enlargement in gross floor area exceeds 50 percent of the gross floor area lawfully constructed at the time of building permit application; and (ii) divide the amount determined under paragraph 1 by the amount of the enlargement. (c) for the purposes of calculating the floor area of the existing industrial building, floor area created by a previous enlargement shall not be included. 12. Where residential floor space is to be converted to non-residential space, no development charge shall be paid. PART IV ADMINISTRATION 13. Development charges against land to be developed for residential uses, non-residential uses, or both, shall be calculated, paid and collected as follows: (a) development charges against that portion of the land to be developed for residential use shall be calculated, paid and collected on a per dwelling unit of residential use basis in accordance with Part II of this By-law and in the case of a mixed-use building or structure, upon the residential uses in the mixed use buildings or structures, according to the type of residential use; (b) development charges against that portion of the land to be developed for non-residential use shall be calculated, paid and collected on a gross floor area of non-residential use basis in accordance with Part III of this By-law and in the case of a mixed- use building or structure, upon the non-residential uses in the mixed-use building or structure. 14. 15. 16. 17. 18. (4) Development charges shall be payable in full on the date that the building permit is issued in relation to a building or structure on land to which a development charge applies. (2) No building permits shall be issued by the City for the construction of any building or structure on land to which a development charge applies until the applicable development charge has been paid in full to the City.' (3) Where an owner has paid to the City, prior to the enactment of this By-law, in relation to a building or structure on land to which a development charge applies, (a) a charge against development pursuant to an obligation to do so in a Subdivision Agreement, Condominium Agreement, Development Agreement or other agreement with the City, (b) a fee as a condition of obtaining a consent to create a lot; or (c) a lot levy pursuant to By-law 3322/89, and the building permit for that building or structure has not been issued prior to the enactment of this By-law, the owner shall be credited with the amount so paid, up to the amount of the development charge payable, as part of the development charge payable hereunder when the building permit is issued. (4) Monies received from payment of development charges shall be maintained in separate reserve funds, and shall be used only to meet the capital costs for which the development charge was levied under this By-law. (2) Council directs the Municipal Treasurer to divide the reserve funds created hereunder into the separate sub-accounts in accordance with the services set out in Sections 5 and 10, to which the development charge payments shall be credited in accordance with the amounts shown, plus interest earned thereon. (3) The amounts contained in the reserve funds established under this Section shall be invested, with any income received credited to the development charge reserve funds in relation to which the investment income applies. The development charges referred to in Sections 6 and 11 may be adjusted annually, without amendment to this By-law, as of July 1 each year, in accordance with the change in the index for the most recently available annual period ending March 31 for the Statistics Canada Quarterly, Construction Price Statistics, Catalogue Number 62-007. Development Charges for the City of Pickering are payable by cash or certified cheque at the rates in effect at the time of payment upon issuance of the building permit(s) or as otherwise may be approved by Council. Council may consider allowing a person to perform work that relates to a service to which the Development Charge By-law relates and if it agrees shall give the person a credit towards a development charge otherwise payable in exchange for the related work. 19. This By-law shall be administered by the Corporate Services Department and applied by the Chief Building Official. 20. This By-law shall come into force and effect at 12:01 am on September 1, 2004 for a term not to exceed five years from the date of its enactment, unless it is repealed at an earlier date. 21. By-law No. 5546/99 (as amended) shall be repealed as of the date this By- law comes into force. BY-LAW read a first, second and third time and finally passed this 26th day of July, 2004. , Mayor , Clerk A )endix "A" ~~r' I, -~/,' - : :. ~ /-: ~ ~ iI ~/~t City of Pickering Planning & Development D~pa~ment 6349/04 ~PPLI~S TO ALL ~N~S WITHIN THE 5O.UN~A~Y OF THE ~.1~ D ~N~S ~ 'PA~E JULY. 2O, 2~4 ATTACHI',,'IENT# ...-2 TO P,,EPORT#_(..'$ ~/-~ ~- W I~0 (3) ~ 0 ~ O~ 0 0 0 ~- ~. C~I 0 ~ 0 Z 0 0 ~ 0 ~ 0 0 ~ 0 ~ ~ 0 ~ ~ 0 ~ ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ 0 ~ 0 ~ 0 ~> > - 0 0 OJ 0 0 o) .r" E 0 ATTACHMENT TO REPORT #.~.~J, 0,~ 0 0 0 .[.- 0 0 0 ATTACHMENT # .~ ,..TO REPORT Summary of Modifications made to the City of Pickering June 4, 2004 Background Study DC Calculation as a Result of the Consultation Process $239,716 reserve fund deduction for Studies S/Single Detached Residential Unit 38 $ per sq.ft, of Non-Residential GFA n/c $643,506 reserve fund deduction for Parkland and Trails 129 0.01 $830,300 reserve fund deduction for Operations 132 0.09 Roads - Increase in benefit to existing deduction for Valley Farm Road to 75% Addition of 50% cost sharing for V-5 - Notion Road Addition of 2/3 cost sharing for B1-13- Notion Road/ Squires Beach Overpass 199 0.06 Reduction in ppu for single detached and multiple units n/c Flat 5% roads charge reduction (3,857-199: 3,658 X .05) 183 .0..12 Total reduction $688 $0.28 C.N. Watson and Associates £td.