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HomeMy WebLinkAboutCS 12-10 ~itq Report To Executive Committee PICKERING Report Number: CS 12-10 Date: May 10, 2010 42 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Request by SR&R Bay Ridges Ltd. to Defer Payment of Development Charges Recommendation: 1. That Report CS 12-10 of the Director, Corporate Services & Treasurer be received; and, 2. That the request by SR&R Bay Ridges Ltd. to defer the payment of Development Charges be denied. Executive Summary: SR&R Bay Ridges Ltd., in its letter of March 17, 2010 to the Chief Administrative Officer, has requested that they be allowed to defer payment of the City portion their Development.Charges to assist them financially with this project. This request, which has its merits for the requesting party, could be requested by all individuals and companies required to pay Development Charges. Any person or company would rather defer an obligation to pay a sum to a later date. . The Recommendation is to deny the request as it is not based on any exceptional circumstances or broad community interest or benefit as would usually be the basis for such a request. Financial Implications: There are no financial implications for the City upon approval of the Recommendation. Sustainability Implications: This report does not contain any sustainability implications. Report CS 12-10 Date: May 10, 2010 Subject: Request by SR&R Bay Ridges Ltd. Page 2 3 to Defer Payment of Development Charges Background: The Council of the City of Pickering adopted the Report CS 26-09 of the Director, Corporate Services & Treasurer on the 2009 Development Charges Study. Included in this Report was By-law No. 6978/09 which included how and when Development Charges are applicable and payable, including the following: "Section 17 Development charges are payable by cash or certified cheque at the rates in effect at the time of payment upon issuance or the building permit(s) or as otherwise may be approved by Council." Many municipal Development Charge By- laws contain such a provision to provide Councils with very limited discretionary powers in this regard. Limited so as to not be taken lightly or abused but a provision nonetheless so that Councils could exercise some discretion when it was in the municipality's interest to do so. Typically a Council will consider a request to defer the payment of Development Charges when it is in the broader community interest to do so. A deferral might be sought on the basis of serving a particular community goal or objective. The only recent request for a deferral was from Options for Homes to assist the development company in providing affordable housing. The Council agreed that it was in the City's interest to provide limited support and agreed. In the specific request before us the Company has requested a deferral to assist them, presumably, in meeting cash flow requirements. They are requesting deferral to the earlier of six months after the commencement of foundation construction or when above grade work commences. The amount requested to be deferred is $1,069,361 being the City's charges only. Total Development Charges payable to the City, Region and School Boards is $3,108,975. From a financial perspective it is not whether or not such a deferral would cost the City, as the loss of interest would not be significant at today's rates, but rather is it a good business practice to grant such requests simply because they are made. The precedent that would be set is not one the City can support financially. This request, which has its merits for the requesting party, could be requested by all individuals and companies required to pay development charges. Any person or company would rather defer an obligation to pay a sum to any later date. No community interest or City objectives would be met by granting the request, therefore, it is recommended to be denied. Report CS 12-10 Date: May 10, 2010 Subject: Request by SR&R Bay Ridges Ltd. Page 3 to Defer Payment of Development Charges 44 Attachments: 1. Letter dated March 17, 2010 from SR&R Bay Ridges Ltd. Prepared By: Approved / Endorsed By: Gillis A. Paterson Gillis A. Paterson Director, Corporate Services & Treasurer Director, Corporate Services & Treasurer Copy: Chief Administrative Officer Recommended for the consideration of Pickering Ci Cou i~ T o as J. Quinn DMR., MM III hief Administrat e Officer S R & R Bay Ridges Lt oR~G~~A~ C OR J COPY ATTACHMENT #J-TO REPORT#.z ' 10 To: CORR = ~ - City of Pickering March 17,20.11-07- Pickering Civic Centre One the Esplanade ~r . v y c~ KCPdr4" e Pickering, Ontario S Canada L1V 6K7 Attention: Mr. Thomas J. Quinn Chief Administrative Officer f Dear Sirs Re: San Francisco by the Bay - Deferral of Development Levies We are proceeding with development of our San Francisco by the Bay 16 storey residential condominium tower, and have recently filed our building permit application with the City. The project involves substantial underground construction. We are requesting that the City defer the payment of its development charges until six months after the commencement of foundation construction, or until we commence work above grade. This will assist us in proceeding with this important project. City staff has advised that the City's development charges by-law requires payment prior to issuing our foundation permit, unless Council approves otherwise and advises staff accordingly. Please accept this letter as my request, pursuant to section 17 of by-law 6978/09, that Council approve the deferral of the City development charges applicable to our 16 storey tower project. We would request that the charges be payable the earlier of six months after the commencement of foundation construction, or when we commence work above grade, instead of prior to underground construction. Thank you for your consideration of this matter. I would be pleased to provide anything further to assist in Council's approval of this request, as necessary. Yours Truly SR & R Bay Ridges Ltd. Per: Steven Warsh 150 Ferrand Drive, Suite 801, Toronto, ON M3C 3E5 Tel: 416-649-4470 Fax: 416-497-3809