HomeMy WebLinkAboutCS 91-05PICKERING
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 91-05
Date: November 28, 2005
From:
Gillis Paterson
Director, Corporate Services & Treasurer
Subject:
Development Charges Complaint
Sheridan Chevrolet Oldsmobile Cadillac
1800 Kingston Road, Pickering
Recommendation:
1. That Report CS 91-05 of the Director, Corporate Services & Treasurer be
received;
That Council confirm the development charge in the amount of $49,671.96
applied to the applicant, Sheridan Chevrolet Oldsmobile Cadillac, for property
municipally known as 1800 Kingston Road, Pickering; and
That the applicant be so advised.
Executive Summary:
To respond to the Development Charge Complaint as filed by Malone Given Parsons
Ltd on behalf of Sheridan Chevrolet Oldsmobile Cadillac on August 25, 2005 with
respect to development charges applied to the business expansion for property
municipally known as 1800 Kingston Road, Pickering. A notice of hearing of this matter
was issued in accordance with Section 20 of the Development Charges Act.
Financial Implications:
under By-law 6349/04.
Development Charges in the amount of $49,671.96 applied
Background:
Sheridan Chevrolet Oldsmobile Cadillac, the auto dealership located at 1800 Kingston
Road has lodged a development charge complaint in accordance with the Development
Charges Act with respect to the development charges applied to an expansion to the
existing business.
Report CS 91-05
Development Charges Complaint
November 28, 2005
Page 2
Under the Development Charges Act, the complaint must contain and allege, as a
reason for the complaint, one or more of the following'
a)
b)
c)
d)
the amount of the development charge imposed was incorrectly determined;
whether a credit is available to be used against a development charge;
the amount of the credit or the service with respect to which the credit was
given was incorrectly determined; and or
there was an error in the application of the City's development charge by-law.
The applicant advises that the complaint has been filed on the basis that the amount of
the development charge was incorrectly determined as it applies to commercial space
expansions, which do not generate new employment or demands on the City services.
At the time of the application for the building permit, development charges were
calculated and payable in accordance with the City's Development Charges By-law
6349/04, in the amount of $49,671.96. The development charge complaint has been
reviewed by the Chief Building Official and the following comments are noted.
The automobile sales and service facility addition is subject to a non-residential
development charge in the amount of $49,671.96 under By-law 6349/04. The complaint
appears to concern the fairness of applying a development charge, since, according to
the applicant, this construction may not result in any site specific additional employment
or City service needs. The Chief Building Official advises that this is not a consideration
in the determination of the amount of any City Development Charge, therefore the
development charge applied stands.
Based on a review of the development charge complaint by the Director, Corporate
Services & Treasurer and the Chief Building Official, the development charge applied is
correct and applicable in this situation.
Attachments:
1. Development Charge appeal as submitted by John P. Genest, Malone Given
Parsons Ltd., on behalf of Sheridan Chevrolet Oldsmobile Cadillac
2. Notice of Hearing issued in accordance with the Deve/opment Charges Act.
CORP0227-07/01
O0 ~3
Report CS 91-05
Development Charges Complaint
November 28, 2005
Page 3
Prepared By:
Approved / Endorsed By:
Debi A. Bentley ~'~ .....
City Clerk
Gillis A. Paterson
Director, Corporate Services 7 Treasurer
Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City
,,,'~ ,'~/ '/ ~' ,4' "
Th,,e(n~ 3. Ouir~, Chi~_.~/AOmini~~.~...
CORP0227~07/01
PARSONS LTD 007
Aug,mst 23'd 2005
DiViSION
140 Renfrew Drive, Suite 201, Markham
Mayor and Members of Conncil
The Corporation of the City at'Picketing
One The Esplanade
Pickenng, ON
L1V 6K7
Attention: Debi Bentley, (7it)' Clerk
Dear Mayor Ryan and Members of Council:
Ontorio, Canada L3R 6B3
Tel: [905) 513-0170
Fox: (905)513-0177
E-mail: nngpgen(~mgp,ca
05:1476
Re:
Development Charges Co~nplaiut and Hearing Request
Pursuant to Section 20 (I) Ca) of the Development Charges Act
Sheridan Chevrolet Olds~nobile Cadillac Expansion
This letter is submitted on behalf of Sheridan Chevrolet Oldsmobile Cadillac
(%heridan"), the auto dealership located at 1800 Kingston Road in the City of Pickering.
Its purpose is to lodge a complaint about, and request a heanng to seek relief froln the
Development Charges ("DC's") being charged for an expansion of the dealership,
pursuant to Section 20 (1) Ca) of the Development Charges Act.
Background
Sheridan has been in business in this location since 1977 and today employs some 60
people. Under the terms of its dealership agreement with General Motors, Sheridan must
build new auto display and set'vice space by October 2005, to a standard defined by
Cadillac's "Vision 2000" progl-am. If not completed by that deadline and to that
standard, the dealership will lose the ability to sell the Cadillac line of vehicles. In the
absence of that mandatory improvement, Sheridan would have no intention or need to
expand its current facility.
The expansion will comprise some 20,77'7 square feet of new display, sales, service and
administrative space. We understand creation of this new space is less expensive than
retrofitting the existing building, which will be retained to house the used car sales
function and the body shop. The new space also preserves 6 jobs that would have been
lost under the renovation scenario, which would have replaced the body shop with a
service drive-through.
Thc expansion will house no new employment and will generate no new demands upon
City roads, yet application lbr a Bnilding Permit (dated June 13th 2005) has triggered a
charge for $115,074.21 in 1)(?'s, $49,671.96 of which is the City of ['ickering portion.
008
August 2? 2005
Page '' ' '
Complaint
The Complaint being lodged on Sheridan's behalf is that the amount of the development
charge was incorrectly determined as it applies to commercial space expansions which
doe not generate new employment or demands on City services.
Reference to the City of Pickering 2004 Development Charge Background Study shows
that DC's for non-residential uses are predicated upon employment growth, converted to
new non-residential floor space at assumed average conversion factors. The t:actor for
commercial space is 400 sq.ft, per new employee [from Appendix page A-6 in the
Background Study].
On this basis, Sheridan is assumed to be generating and housing 52 new jobs fi-om its
20,777 sq.ft, expansion, vs. the zero new jobs actually anticipated. The magnitude of this
diflbrence makes it clear that the amount of the DC has been incorrectly determined as it
applies to such expansions. It is fundamentally inequitable to be applying a $49,000+
charge in these circumstances.
Sheridan is not trying to shirk its obligations to the commnnity, but does want fair
treatment. You will recognize that this expansion will also result in an increased property
valnation, which will increase the company's taxes payable to the Region and City, again
without an increase in demand on capital or operating services.
We request a Hearing into this Complaint, with notice of same to be given to the
undersigned at the address provided on the first page of this letter. Thank you fbr your
attention to this matter.
Yours very truly,
MALONE GIVEN PARSONS LTD.
///. /;
/John P. Genest, BES, MBA
I/ Partner
cc: J. Gazarek, Sheridan Chevrolet Oldsmobile Cadillac
A. Allison, City Solicitor
PICKERING
IN THE MATTER OF Section 20 of the Development Charges Act;
AND IN THE MATTER OF a written complaint by Sheridan Chevrolet Oldsmobile
Cadillac dated Au§ust 23, 2005, in respect of the development charge imposed by the
City of Pickerin9 on property municipally known as 1800 Kingston Road, City of
Pickerin9.
NOTICE OF HEARING
The Executive Committee hereby appoints Monday, the 28th day of November, 2005 at
the hour of 7:30 pm in the Council Chambers, Pickering Civic Complex, One The
Esplanade, Pickering, Ontario, for the hearing of the above complaint and to allow the
complainant the opportunity to make representations regarding the complaint.
If you do not attend or are not represented at this hearing, the committee may proceed
in your absence and you will not be entitled to any further notice in the proceeding.
A copy of the report will be made available to you at the Office of the Clerk at least two
business days before the hearing of the complaint or at such earlier time as the City
may advise:
The proceedings of the committee in relation to the complaint shall be governed by the
Development Charges Act and upon the conclusion of the hearing conducted by the
Executive Committee, it may indicate the recommendatior~ it will make to Council or it
may reserve its decision.
DATED at Pickering, this 11tr' day of November, 2005.
Debi A. Bentley
City Clerk
Copy: Chief Administrative Officer
Director, Corporate Services & Treasurer
Director, Plannin9 & Development
City Solicitor
Chief Building Official
City Clerk
File Copy