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HomeMy WebLinkAboutCAO 02-11 Report To Executive Committee PICKERING Report Number: CAO 02-11 Date: January 10, 2011 05 From: Tony Prevedel Chief Administrative Officer Subject: Request of Russ Phillips for Financial Compensation from the City for alleged reduction in property value due to the installation of a Cell Tower at 2585 Sixth Concession Road, City of Pickering Recommendation: 1. That Report CAO 02-11 of the Chief Administrative Officer be received; 2. That the request of Russ Phillips for financial compensation from the City for an alleged reduction in property value due to the installation of a Cell Tower at 2585 Sixth Concession Road be denied; and 3. Further, that the City Clerk advise Russ Phillips of Council's decision. Executive Summary: Russ Phillips, owner of 2595 Sixth Concession Road, has requested that the City compensate him for the alleged reduction in property value he has experienced due to the erection of a cell tower in 2001 by Microcell Connexions on lands immediately south of his property at 2585 Sixth Concession Road. He is seeking a one-time payment equal to six percent of the market value of his property. Russ Phillips is seeking this compensation due to what he considers to be inappropriate action taken by the City in 2001 to not object to this tower installation. This report stems from Russ Phillips' delegation to Council on July 12, 2010, and his subsequent meeting with senior City staff on July 26, 2010. While there are emails outlining various elements of the Phillips' concerns and opinion that they are due compensation, there is no formal request in writing for a one-time payment equal to six percent of property market value. This was a verbal request made by Russ Phillips at the July 26, 2010 meeting. MPAC has responded to Russ Phillips' concern respecting property value through a reduction in assessment and the resultant property taxes. Staff do not recommend that any additional compensation be paid by the City respecting this matter as there is no basis for one. This position is supported by a legal opinion obtained by the City. The City followed the process that was in place at the time respecting the review of cell tower installation proposals. Further, the approval responsibility for cell tower installations rests fully with Industry Canada. Report CAO 02-11 January 10, 2011 Subject: Request of Russ Phillips for Financial Compensation Page 2 U Financial Implications: There are no financial implications associated with the recommendations of this report. Sustainability Implications: The recommendations of this report do not contain any sustainability implications. 1.0 Background: Mr. and Mrs. Russ Phillips are the owners/residents of a 1.9 acre property supporting a detached dwelling and various out-buildings located at 2595 Sixth Concession Road, Pickering (see Location Map - Attachment #1). Russ Phillips appeared as a delegation to Council at its July 12, 2010 meeting and outlined his concerns respecting an existing cell tower installation located at 2585 Sixth Concession Road, south of his property, that was erected in 2001 by Microcell Connexions (now Rogers) (see site plan, tower elevation, and aerial photo - Attachment #2, #3 & #4). Russ Phillips contends that the installation of the cell tower at its present location has devalued his property and that the City did not properly evaluate the installation proposal at the time it was consulted by Microcell Connexions or notify neighbouring residents of the proposal. He advised Council that he was successful through MPAC in achieving a six percent reduction of his property's assessment retroactive to the tower installation date, due to the location of his property adjacent to lands now considered by MPAC to support a commercial use (cell tower). Specifically, the reduction in assessment provides for a six percent reduction in property taxes each year which is approximately $385.00 per year, increasing over time. By 2012, it is estimated that the reduction in assessment will be $33,000 or $452.00 in annual taxes. Russ Phillips is requesting further compensation from the City due to the existence of the tower and what he considers to be inappropriate action by the City in 2001 to not object to this installation. He was clear in conveying his likely intent to pursue legal action against the City, should compensation not be forthcoming. . , At the July 12, 2010 meeting, Council recommended that Russ Phillips meet with the CAO to further discuss and evaluate the matter. A meeting took place on July 26, 2010, with Mr. and Mrs. Phillips, the Director, Planning & Development, and the CAO. Russ Phillips outlined his position on the matter and orally set out his request that the City compensate him for what he believes to be a loss in property value due to the erection of the tower. He specifically noted the fact that his home was designated as a heritage building in 1986 by the City and that interest in his property for filming opportunities had dropped severely since erection of the tower. Further, he claims that construction of the tower (footings) has caused interference with the well on his property. Report CAO 02-11 January 10, 2011 Subject: Request of Russ Phillips for Financial Compensation Page 3 07 Russ Phillips requested that compensation be paid by the City through a one-time payment equal to six percent of the current appraised market value of his property, or approximately $30,000. The assessed value of the Phillips property on January 1, 2008 was $480,000, which was reduced to $447,000 to reflect the MPAC reduction. Six percent of the $480,000 assessed value is $28,800 which will increase to $33,000 when the phase-in of the 2008 assessment increase is completed in 2012. The final current market value of the Phillips property would have to be determined by a professional appraisal and is likely higher. 2.0 Discussion: Staff has reviewed the file on this cell tower installation. The file is ten years old and no longer contains complete information. However, it is clear from information in the file that Microcell's proposal was processed by staff in a manner consistent with City processes in place at the time for cell tower review. At the time of processing Microcell's proposal, Industry Canada was the Federal body responsible for the approval of cell towers. Although the City did not hold any approval authority, Industry Canada requested cell tower proponents to consult with area municipalities. Microcell's proposal was reviewed at the City as a site plan submission and went through the site plan review process in place at the time. Mayor & Council were advised of the application by staff in August 2000 and comments sought. The Ward 3 Councillors were notified in writing of the application in October 2000 inviting comments, and the matter was also presented to the Site Plan Advisory Committee in October 2000. The file does not contain any record of concerns from the Mayor or Councillors, other than a question to staff from Councillor Pickles in an email dated July 14, 2001 (when the tower was under construction) respecting adjacent resident notification protocol. There was no public notification requirement or procedure at that time through either Industry Canada or the City. It appears through file records that City staff attempted to have Microcell consider a different location more distant from Greenwood, but the current location was required for technical functionality of the Microcell grid. It appears that, considering the functional needs of Microcell, the support of the property owner (Bitondo's Market Limited) to accommodate the tower, the significant separation of the site from the built up area of the Hamlet of Greenwood, the siting of the tower behind (south of) the existing barn and silo on the Bitondo property, the need for improved cell communication in the area, and the absence of concern from Mayor & Council, staff did not object to the installation. Industry Canada provided the actual approval. We note that in January 2008, new antenna siting and approval procedures took effect at Industry Canada which provide a clearer process for public notification and required consultation with the local land use authority. Report CAO 02-11 January 10, 2011 Subject: Request of Russ Phillips for Financial Compensation Page 4 U City staff is'currently preparing a protocol for the review and approval of Radio Communication and Broadcasting Antenna Systems, which will be brought forward for Council's consideration. We have considered the argument forwarded by Russ Phillips and do not recommend any additional financial compensation as there is no basis for any payment from the City. This position is supported by a legal opinion obtained by the City. City staff appears to have followed the process that was in place at the time for reviewing cell tower proposals. Further, it is important to note that the City does not hold any approval authority for cell tower installations. This authority rests fully with Industry Canada. Even if the City had indicated concern or objection over the tower location, Industry Canada remained the sole approval authority. Compensation for perceived negative visual impacts and property value depreciation due to cell tower installations approved by another body is unwarranted and could well establish a dangerous precedent for future claims. The appropriate recourse for this matter is through MPAC (which has been pursued by Russ Phillips) and the owner of the cell tower, not the City of Pickering. Furthermore, MPAC, through a reduced assessment, has already recognized the potential decrease in value which is being reflected through reduced property taxes and which will continue as long as the tower remains in its current location. Attachments: 1. Location Map 2. Site Plan 3. Tower Elevation 4. Aerial Photo Report CAO 02-11 January 10, 2011 Subject: Request of Russ Phillips for Financial Compensation Page 5 09 Prepared By: Approved/Endorsed By: Neil arrP&I CIP.., RPP Tony Prevedel, P.Eng. Director, ing & Development Chief Administrative Officer i is aterson, C.M.A. Director, Corporate Services & Treasurer NC:jf Recommended for the consideration of PickerinVCiounni t . -2-1,2-0 /a Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT #_L-TO REPORT #-cAb od I /i F0 CNURC ~ J. & R. PHILLIPS 2595 SIXTH CONC SION RD LOT AREA = SIXTH C N RDA SIXTH CONC SION 3 ROAD REEK 00 PUB, e ~J ,/BRA Y ueut SVIEW , APPROXI TE LOCATION OF CELL GWE R (48.0m GREENWOOD / PARK d• OREENRIDOE COMMUNITY CENTRE I GREENWO D, / / BITONDO MARKET LTD. 8 2585 SIXTH CONCESSION RD / W LOT AREA = 222 acres / U A / 3 OHO/ / / / I / 1 / / City of Pickering Planning & Development Department PROPERTY DESCRIPTION Concession 5, Part of Lots 9 & 10 OWNER N/A DATE July 27, 2010 DRAWN BY JB FILE No. N/A SCALE 1:5000 CHECKED BY NC N °Ter -AC P';," Ina. and ite suppliere. All righla Reaervad. Not o plan of e"rvey. 4005 5 .1-AC ono :ts supDl~ere. All r'.ghts Reserved. Nol o peon of S.-ay. 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