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HomeMy WebLinkAboutLEG 05-15 Calf 00 Report to ____O___ Executive Committee 1•YrJ_� ICKERING Report Number: LEG 05-15 Date: May 11, 2015 • From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Duffin Heights Neighbourhood - Second Amendment to the Duffin Heights Developers Group Cost Sharing Agreement - File: D-1000 Recommendation: 1. • That Report LEG 05-15 of the Director, Corporate Services & City Solicitor be received; 2. That the second amendment to the Duffin Heights Developers Group Cost Sharing Agreement respecting the provision of infrastructure in the Duffin Heights Neighbourhood be approved; 3. That the Mayor and City Clerk be authorized to execute the second amendment to the Duffin Heights Developers Group Cost Sharing Agreement as set out in • Attachment 1 to this Report, subject to minor revisions agreeable to the Director, Corporate Services & City Solicitor; 4. That the Director, Corporate Services &City Solicitor and the Division Head, Finance &Treasurer be authorized to make any changes to the agreement, as amended, or subsequent agreements, to protect the financial interests of the City • and to sign any subsequent agreements and amendments; 5. That the appropriate City officials be authorized to undertake the actions required to implement the above recommendations; and 6. That a copy of this Report be forwarded to the Trustee of the Duffin Heights Developers Group for information. Executive Summary: In 2008, Council endorsed and entered into a'cost sharing agreement ("CSA") with the Duffin Heights Developers Group respecting the provision of infrastructure in the Duffin Heights Neighbourhood and front-funding the costs of specific infrastructure that benefitted the City and landowners. The City's obligation related to front-funding the costs of a stormwater management pond (SWMP #4) located north of the Third Concession Road east of Brock Road, and related infrastructure. Three years later, an amendment to the CSA was required to recognize the new owners of former Infrastructure Ontario lands and the required Brock/Dersan 156 LEG 05-15 May 11, 2015 Subject: Second Amendment to the CSA Page 2 sanitary sewer and watermain works to service the residential and mixed use lands, east of Brock Road. More recently, a second amendment to the CSA has become necessary to reflect new community servicing costs pertaining to the sanitary sewer and watermain (SSW extensions north and south of Dersan Street and the construction of primary hydro distribution systems on both sides of Brock Road. Other revisions include adding new Participating Owners to the Developers Group and deleting the two school sites from the Community Land Schedule. Based on staffs review, it is recommended that Council approve the second amendment to the CSA and authorize the Mayor and Clerk to execute the second amendment. Financial Implications: The existing limitations on the City's cost sharing obligations will remain intact. Pursuant to section 3.26 of the CSA, the proportionate share of servicing costs attributable to most of the City's lands is payable at the time that such lands are sold or developed. The City will be required to front fund servicing costs only in relation to the smaller (5.2 acre) portion of its lands purchased from Infrastructure Ontario in 2011. Discussion: In July 2010, Council agreed to execute the cost sharing agreement with the Duffin Heights Developers Group respecting the provision of infrastructure in Duffin Heights and to front-fund the costs of infrastructure relating to SWMP #4 and the Brock Road storm.sewer over-sizing. The CSA was drafted specifically to ensure that the City's obligation related to front funding the costs related to the construction of the SWMP #4 and related infrastructure only. In 2011, Infrastructure Ontario (10) sold a number of its holdings in Duffin Heights. The City purchased three 10 parcels that were strategic to its current holdings along Brock Road: Also, Council was informed of the need for a sanitary sewer and watermain crossing at the intersection of Brock Road and Dersan Street to service the lands east of Brock Road. The crossing provided the City with an opportunity to have stub connections installed in order to provide future water and sewer connections to its mixed use lands located on the west side of Brock Road, south of Dersan Street. An amendment was required to recognize the land purchases and the sanitary sewer and watermain crossings. That amendment recognized the City's preferred (limited) cost sharing status with respect to its historic landholding while requiring the City to participate fully in costs in relation to the additional lands it purchased in 2011. CORP0227-07/01 revised 157 LEG 05-15 May 11, 2015 Subject: Second Amendment to the CSA Page 3 • The second amendment (Attachment 1) includes the following: • adds Oxnard Developments Inc. and Stonepay (7603860 Canada Incorporated) as Participating Owners • adds new subsections relating to the sanitary sewer and watermain (SS/VV) extensions both north and south of Dersan Street • adds new subsections relating to the primary hydro distribution systems for both the west and east sides of Brock Road • deletes the school lands currently owned by the Province and City from the Community Land Schedule so that they are no longer considered as Community Land pursuant to the CSA While the City's mixed use lands will benefit from the sewer and water main extensions and the hydro distribution system, the City will maintain its limited cost sharing status under the CSA for all but 5.2 acres of its lands in regard to these services. This is consistent with the City's existing CSA cost sharing commitments. Servicing costs attributable to the balance of the City's lands (33.6 acres) is payable only at such time those lands are sold or developed. The second amendment provides for an equitable and proportionate distribution of the costs for required infrastructure among the landowners and incorporates new landowners for cost sharing purposes. It is recommended that Council approve the second amendment to the CSA and authorize the Mayor and Clerk to execute it substantially in the form of Attachment 1 to this Report. Attachments: 1. Second Amendment to the Duffin Heights Developers Group Cost Sharing • Agreement Prepared By: Ap -d/Endorsed By: Grant McGregor, MCIP, RPP Paul itigiin Manager, Sustainability & Direcler, •rp► ate Services & City Solicitor Economic Development CORP0227-07/01 revised 158 LEG 05-15 May 11, 2015 Subject: Second Amendment to the CSA Page 4 Approved/Endorsed By: Thomas Melym Director, City Development Richard Ho born Director, Engineering & Public Works GM:PB:ks Recommended for the consideration • . of Pickering City Council / ,,/ A �7� I Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised • 159 • • • DRAFT—For Discussion Only • March 30,2015 • SECOND AMENDMENT TO DUFFIN HEIGHTS DEVELOPERS GROUP COST SHARING AGREEMENT This AGREEMENT dated the day of April,2015. ', • BETWEEN: i TTACHMENT#k/TO REPORT# E' •MATTAMY(BROCK ROAD)LIMITED s7 5 '�� (hereafter referred to as"Mattamy"), HER MAJESTY THE QUEEN IN RIGHT OF ONTARIO AS REPRESENTED BY THE MINISTER OF ECONOMIC DEVELOPMENT, EMPLOYMENT AND INFRASTRUCTURE AS REPRESENTED BY ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (hereafter referred to as the"Province"), LEBOVIC ENTERPRISES LIMITED (hereafter referred to as"Lebovic"), 1320991 ONTARIO LIMITED (hereafter referred to as"Lebovic 2"), • COUGS(TILLINGS)LIMITED (hereafter referred to as"Cougs 1"), . • COUGS(DERSAN)LTD. • (hereafter referred to as"Cougs 2"), COUGS(BROCK ROAD)LTD. • ' (hereafter referred to as"Cougs 3"), DUFFIN'S POINT INC. V V • (hereafter referred to as"Seaton Centre"), 9004807 CANADA INC. • (hereafter referred to as"Stonepay"), THE CORPORATION OF THE CITY OF PICKERING • (hereafter referred to as"Pickering") and • • DUFFIN HEIGHTS LANDOWNERS GROUP INC. (hereafter referred to as the'Trustee") . • • RECITALS: . ' • • A. Mattamy, the Province, Lebovic, Lebovic 2, Cougs 1, Cougs 2, Cougs 3,Seaton Centre, Stonepay and Pickering are the owners of land within an area of the City of Pickering known as"Duffin Heights°,and are collectively referred to as the"Participating Owners"or the"Group",and individually referred to as a"Participating Owner°. • B. Each of the Participating Owners is a party in good standing pursuant to the Duffin Heights Developers Group Cost Sharing Agreement dated July 14,2010,as amended on June-14, 2011 (the"Cost Sharing Agreement"). , • C. The Trustee is named as the trustee of the Group pursuant to the Cost Sharing • Agreement. D. The parties wish to amend the terms of the Cost Sharing Agreement in accordance with • this Second Amendment to the Cost Sharing Agreement(the"Second Amendment"). • The parties agree as follows: • • • 160 • • 1.1 Amendments to include SS/W Extensions North and South of Dersan The Cost Sharing Agreement is hereby amended as follows: • (a) By the addition of a new subsection 1.1(q)()xiv),being a new Community Servicing Cost,which shall read as follows: • • °The total cost incurred for the construction of the SS/W Extensions South • of Dersan and the SS/W Extensions North of Dersan." • (b) By the addition of a new Section 1.1(hhh), being a new Definition entitled "SS/VV Extensions South of Dersan",which shall read as follows: ""SSNV Extensions South of Dersan" means a sanitary sewer and watermain located on the west side of Brock Road,south of Dersan Street, as depicted on Schedule.CS-22 attached to this Second Amendment at Tab"A",including layout of the work,traffic control during construction,and • restoration of all disturbed space including (but not limited to) driveways, boulevards,culverts,ditches,and roadways,•and,for greater clarity: (i) the.sanitary sewer includes a connection to the existing sanitary sewer stub from Dersan Street,construction of approximately 218 m • of 250 mm diameter sanitary sewer, approximately 290 m of 200 . mm diameter sanitary sewer,and all manholes within that span;and (ii) the watermain includes a connection to the existing watermain stub • from Dersan Street, approximately 635 m of 400 mm diameter • concrete pressure pipe watermain, approximately 14 m of 300 mm diameter watermain for a future road connection, and all hydrants, valves,and appurtenances within that span." • (c) By the addition of a new Section 1.1(iii), being a new Definition entitled "SSNV Extensions North of Dersan",which shall read as follows: ""SSNV Extensions North of Dersan" means a sanitary sewer and watermain located on Brock Road, north of Dersan Street, as depicted on Schedule CS-22 attached to this Second Amendment at Tab"A", including layout of the work, traffic control during construction, and restoration of all • disturbed space including (but not limited to) driveways, boulevards, culverts,ditches,and roadways,and,for greater clarity: (i) the sanitary sewer includes a connection to the existing sanitary • sewer stub from Dersan Street, construction of approximately 281m of 250 mm-diameter sanitary sewer, and-all manholes within that • span;and • • (ii) the watermain includes a connection to the existing watermain stub from Dersan Street, construction of approximately 300m of 400 mm diameter concrete pressure pipe watermain, and all hydrants, valves, and appurtenances within that span.Sanitary and watermain • construction for Brock Road north of Dersan Street." (d) By the addition of a new subsection 3.8(P), being a new subsection to describe the methodology for determining the Participating Owners' Proportionate Servicing Shares for the costs associated with the SSNV Extensions South of Dersan and the SS/W Extensions North of Dersan,which shall read as follows: • "SSAN Extensions South of Dersan and the.•SSNV Extensions North of Dersan: (i) Watermain components Pro rata calculation applied only to Participating Owners with Benefiting Lands based on a Participating Owner's total Developable Acreage determined to be Benefiting Lands as a percentage of all Participating Owners' Developable Acreage determined to be Benefiting Lands. • (ii) Sanitary sewer components—The apportionment of the cost among the Participating Owners shall be made based on an allocation of • that portion of the costs which are associated each length of sewer to each parcel of Benefiting Land that is owned by a Participating • 161 Owner. Such allocation shall be made on the basis of the total Developable Acreage which are tributary to, or benefit from, a particular length of sewer, manhole or other sewer facility, and the extent to which each Participating Owner's total Developable Acreage are tributary to, or benefit.from, a particular length of • sewer,manhole or other sewer facility. The Participating Owners with Benefitting Lands to a particular component of the SS/W Extensions South of Dersan or the SS/W Extensions.North of Dersan will front end the costs of such components that are attributable to Non-Participating Owners with Benefiting Lands,pro rata,on the basis of a Owner's total Developable Acreage determined to be Benefiting Lands as a percentage of all Participating Owners'Developable Acreage determined to • be Benefiting Lands. • The Benefiting Lands for the SS/W Extensions South of Dersan are depicted and labelled on Schedule CS-22 as "Sanitary Benefitting Area • (South)" and "Watermain Benefitting Area (South)°, as applicable. The Benefiting Lands for the SS/W Extensions North of Dersan are depicted and labelled on Schedule CS-22 as"Sanitary Benefitting Area (North)" and "Watermain Benefitting Area(North)",as applicable.' . (e) By the addition of a new subsection 3.24(c), being a new subsection to describe the front-ending arrangements associated with the SS/W Extensions South of Dersan,which shall read as follows: • "Participating Owners with Benefiting Lands will front end all costs • associated with the SS/W Extensions South of Dersan on a Participating Owner Proportionate Servicing Share basis. All front ended payments for any portion of the costs shall be made in the form of a certified payment.to the Trustee within thirty (30) days following receipt of a call for funds from the Trustee,as approved by the Consulting Engineer. . Seaton Centre will enter into contracts for the construction of the SS/W Extensions South of Dersan and will complete the construction of the works. Prior to doing so, Seaton Centre will provide the Consulting Engineer with all detailed plans, tender documents, descriptions and cost . estimates for the works. Prior to construction, the Consulting Engineer must confirm that all of the proposed works comply with the ESP and satisfy the servicing needs of Duffin Heights, in accordance with the duties ' of the Consulting Engineer described in Article 6. The Benefiting Lands for the SS/W Extensions South of Dersan are depicted and labelled on Schedule CS-22 as "Sanitary Benefitting Area (South)"and"Watermain Benefitting Area(South)",as applicable." (f) By the addition of a new subsection 3.24(d), being a new-subsection to describe the front-ending arrangements associated with the SS/W Extensions North of • Dersan,which shall read as follows: • "Participating Owners with Benefiting Lands will front-end all costs associated with the SS/W Extensions North of Dersan on a Participating Owner Proportionate Servicing Share basis. All front ended payments for any portion of the costs shall be made in the form of a certified payment to the Trustee within thirty (30) days following receipt of a call for funds from the Trustee,as approved by the Consulting Engineer. Lebovic will enter into contracts for the construction of the SS/W Extensions North of Dersan and will complete the construction of the works. Prior to doing so, Lebovic will provide the Consulting Engineer with all detailed plans, tender documents, descriptions and-cost estimates for the works. Prior to construction, the Consulting Engineer must confirm that all of the proposed works comply with the ESP and satisfy the servicing needs of Duffin Heights,.in accordance with the duties of the Consulting Engineer described in Article 6. The Benefiting Lands for the SS/W Extensions North of Dersan are depicted and labelled on Schedule CS-22 as "Sanitary Benefitting Area (North)"and"Watermain Benefitting Area(North)",as applicable.' • • • 162 • • • • 1.2 Amendments to include Primary Hydro Distribution System • • The Cost Sharing Agreement is hereby amended as follows: • (a) By the addition of a new subsection 1.1(q)(xxv), being a new Community Servicing Cost which shall read as follows: "The total cost incurred for the construction of the primary hydro distribution system, as depicted on Schedule B-2, Figure CS-23, attached to this • Second Amendment at Tab"B°(the"Primary Hydro Distribution System").°' • (b) By the addition of a new subsection 3.8(Q),being a new subsection to describe the • methodology for the Participating Owners to share the costs associated with the Primary Hydro Distribution System,which shall read as follows: Primary Hydro Distribution System: • (i) West of Brock Road — Pro rata calculation of the anticipated • residential demand (based upon 5 kVA per unit) and commercial demand (based on kVA) for each parcel of Developable Acreage located west of Brock Road applied to the total anticipated residential demand (based upon 5 kVA per unit) and commercial demand(based on kVA)of all Developable Acreage located west of Brock Road. .The Benefiting Lands for the Primary Hydro Distribution System west-of Brock Road are depicted and labelled on Schedule CS-23 as"West Benefiting Area". • (ii) East of Brock Road - Pro rata calculation. of the anticipated residential demand (based upon 5 kVA per unit) and commercial demand (based on kVA).for each parcel of Developable Acreage • located east of Brock Road applied to the total anticipated residential demand (based upon 5 kVA per unit) and commercial demand.(based on kVA) of all Developable Acreage located east of Brock Road. • The Benefiting Lands for the Primary Hydro Distribution System east of Brock Road are depicted and labelled on Schedule CS-23 as "East Benefiting Area"." 1.3 Amendment to clarify Development of SWM 1 • The Cost Sharing Agreement is hereby amended by the addition of a new paragraph to the end of Section 3.26 which shall read as follows: "The Participating Owners acknowledge and agree that with respect to the specific Developable Acreage that comprises the portion of the stormwater management facility that is depicted on Schedule "B-1" as SWM 1 and that was owned by Pickering as of the date of the Original Cost Sharing Agreement (i.e. exclusive of the portion of SWM 1 that was acquired from a Non-Participating Owner subsequent•to the date of the Original Cost Sharing Agreement as described in Sections 1.1(q)(xxii) and 3.8(N).of the Cost Sharing Agreement) (the"City SWM 1 • Land"), the Acreage Land Value associated with the City SWM 1 Land shall be fixed at the sum of$300,000.00 per acre, and this amount shall not be subject to any adjustment following the date of this Second Amendment (regardless of-any future adjustment to the Acreage Land Value pursuant to Section 4.11,if any), and . the City SWM 1 Land shall be treated as a distinct phase of Development pursuant to the Cost Sharing Agreement, and shall be deemed to have Developed on the date of this Second Amendment' 1.4 Amendment to remove cost sharing of school lands (a) The Cost Sharing Agreement is hereby amended by deleting all references to Schools as a shared Community Land item and Community Servicing Cost, • including the following: (i) the deletion of Section 1.1(n)(rv); • • 163 • (ii) the deletion of Section 1.1(o) and the addition of a new Section 1.1(a) which shall read as follows: • ""Community Roads" means 50% of any road that is Developable Acreage and abuts on one side or up to 100% of any road that is . Developable Acreage and abuts on both sides of Natural Heritage System Lands or Community Land including cul. de sacs which terminate at • • Community Land and Natural Heritage System Lands and, notwithstanding • the foregoing, shall also include the Local Share of any portion of William Jackson Drive(including all reserves)that is attributable to lands owned by the Province or a school board." (iii) the deletion of Section 1.1(q)(xxi);and. • • (iv) the deletion of all references to"school board'in Sections 4.6 and 4.7. 1.5 Updated Schedules • The Schedules to the Cost Sharing Agreement are hereby amended to give effect to this . Second Amendment,as follows: (a) By the deletion of Figures CS-1. and CS-16 within "Schedule "B-1" - Plans Depicting Location of Community Services", and the addition of the new Figures CS-1 and CS-16 within "Schedule "B-1° - Plans Depicting Location of Community Services" in the form attached to this Second Amendment at Tab "A" which are labelled as follows: . Figure CS-1 Community Roads Figure CS-16 School Servicing .(b) By the addition of the new Figures CS-22 and CS-23 within"Schedule"B-1°-Plans • Depicting Location of Community Services" in the form attached to this.Second Amendment at Tab"A"which are labelled as follows: • • Figure CS-22 SS/VV Extensions South of Dersan and • SS/W Extensions North of Dersan Figure CS-23 . Primary Hydro Distribution System (c) By the deletion of "Schedule °B-2" - Plan Depicting Location of Community Location°and the addition of the new"Schedule"B-2"-Plan Depicting Location of • Community Lands"'in the form attached to this Second Amendment at Tab"B"and labelled"Schedule"B-2"-Plan Depicting Location of Community.Lands". 1.6 Captions and headings • The captions and headings contained in this Second Amendment are for reference only and in no way affect this Second Amendment or its interpretation. . 1.7 Agreement may be executed in counterpart This Second Amendment may be executed in counterparts (i.e., it shall not be necessary • for all of the parties to have signed the same copy hereof), with the same effect as if all. • parties had signed the same document.All counterparts shall be construed together, and • shall constitute one and the same agreement. IN WITNESS WHEREOF the parties hereto have hereunto executed'this Amending Agreement and the other parties have hereunto set their hands and seals as of the day, month and year first above written. [REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY] • • • 164 • • • MATTAMY(BROCK ROAD)LIMITED Per. • Title: Per. Title: I/we have authority to bind the corporation • • • • • • • • • • 165 • HER MAJESTY THE QUEEN IN RIGHT OF ONTARIO AS REPRESENTED BY THE MINISTER OF ECONOMIC DEVELOPMENT,EMPLOYMENT AND INFRASTRUCTURE AS REPRESENTED BY• • • ONTARIO INFRASTRUCTURE AND LANDS • CORPORATION Per. Title: • • _ I Per. Title: I/we have authority to bind the Province • • • • • • • • • • • • • • • • • • • I 166 . • LEBOVIC ENTERPRISES LIMITED Per. Title: Per Title: l/we have authority to bind the corporation 1320991 ONTARIO LIMITED Per Title: Per Title: • . I/we have authority to bind the corporation • • • t - 167 COUGS(TILLINGS)LIMITED Per. Title: Per. Title: I/we have authority to bind the corporation COUGS(DERSAN)LTD. Per. Title: Per. Title: I/we have authority to bind the corporation COUGS(BROCK ROAD)LTD. Per. Title: Per. 0 Title: l/we have authority to bind the corporation • • • 168 • DUFFIN'S POINT INC. . Per. • Title: • Per. • Title: I/we.have authority to bind the corporation • • • • 1 6.9 • 9004807 CANADA INC. Per. Title: Per. Title: I/we have authority to bind the corporation . • 170 THE CORPORATION OF THE CITY OF PICKERING Per. Title: Per. • • Title: I/we have authority to bind the City • • 171 • • DUFFIN HEIGHTS LANDOWNERS GROUP INC. Per. Title: Per. • Title: • . • I/we have authority to bind the corporation • • • • • • • • • • • • • • • • • • • • • ■ 172 ' TAB"A" UPDATED SCHEDULE"B-1" • • • • 173 A , t17 ii o C 5 Q Z U < t z F N aU¢ yam " ,pZ r E ..1i • _ z z z N x - °G 4' bA —t= > > >LLa Z E 0 2 L O O O 00. 1 � DD .1E11 Z co V J U Zi A� _-,, w ft- ti-, - i•O .` KEN O uxol r--- 11.T.1/47. 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