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HomeMy WebLinkAboutADM 210 Bonus Zoning PolicyCity ,/ DICKERING Policy Procedure Title: Bonus Zoning Policy Number ADM 210 Reference Ontario Planning Act Resolution #93/19 Date Originated (m/dly) May 2019 Date Revised (m/dly) Pages 12 Approval: Chief Adpinistrate Officer Policy Objective Point of Contact Chief Planner, City Development The objective of this policy is to implement the Bonus Zoning policies of Section 16.17 of the Pickering Official Plan, in accordance with Section 37 of the Planning Act, as amended. Purpose The purpose of this policy is to provide an implementation structure outlining the: • procedures for processing a Zoning By-law Amendment Application requesting additional density or height through the Bonus Zoning policies of Section 16.17 of the Pickering Official Plan • process to identify Community Benefits • methodology to calculate valuations for Bonus Zoning contributions • process for negotiating Bonus Zoning Agreements • preparation of implementing Bonus Zoning By-laws • handling of cash contributions • reporting to Council Index 01 Definitions 02 Legislative Authority 03 Scope and Application 04 Procedures 04.01 Receipt and Processing of the Zoning By-law Amendment Application 04.02 Determining Community Benefits 04.03 Location of Community Benefits 04.04 Valuation of Community Benefits 04.05 Implementing Zoning By-law and Bonus Zoning Agreements 04.06 Cash Contributions 04.07 Reporting to Council 01 Definitions 01.01 Bonus Zoning - is a planning tool, authorized by Section 37 of the Planning Act, which enables municipalities to secure Community Benefits through Bonus Zoning Agreements in conjunction with a Zoning By-law Amendment Application that permits increased density and/or height over and above existing planning permissions. 01.02 Cash Contributions - means money provided to the City that are used toward specific facilities or amenities in -lieu of the owner constructing or providing specific facilities or amenities. 01.03 Community Benefit - means facilities or cash secured by the City and provided by an owner/applicant for specific public facilities, services or matters. 01.04 Owner - means the registered owner of the property or a representative (applicant or developer) of the registered owner of the property. 01.05 Bonus Zoning Agreement - is a legally enforceable agreement negotiated between the City and an owner that outlines the terms of the exchange of density and/or height for Community Benefits. 02 Legislative Authority 02.01 The Planning Act, as amended, and the City of Pickering Official Plan, as amended, is the legislative authority for this policy. 02.02 The Bonus Zoning policies of the Pickering Official Plan permit Council to pass by-laws that grant an increase in density of development not exceeding 25 percent of the density permitted by the Official Plan or an increase in the building height providing: a) the density or height bonus is given only in return for the provision of specific services, facilities or matters specified in the by-law, such as but not limited to, additional open space or community facilities, assisted or special needs housing, the preservation of heritage buildings or structures, or the preservation of natural heritage features and functions; b) when considering an increase in density or height, and allowing the provision of benefits off-site, the positive impacts of the exchange should benefit the Policy Title: Bonus Zoning Policy Number: ADM 210 Page 2 of 12 b) when considering an increase in density or height, and allowing the provision of benefits off-site, the positive impacts of the exchange should benefit the social/cultural, environmental and economic health of the surrounding areas experiencing the increased density and/or height; c) the effects of the density or height bonus have been reviewed and determined by Council to be in conformity with the general intent of the Official Plan, by considering such matters as: i) the suitability of the site for the proposed increase in density and/or height in terms of parking, landscaping, and other site specific requirements; ii) the compatibility of any increase in density and/or height with the character of the surrounding neighbourhood; and d) as a condition of granting a density or height bonus, the City requires the benefitting landowner(s) to enter into one or more agreements, registered against the title of the lands, dealing with the provision and timing of the specific facilities, services or matters to be provided in return for the bonus. 03 Scope and Application 03.01 This policy is applicable to all Zoning By-law Amendment Applications requesting an increase in density or height in accordance with the Bonus Zoning policies of Section 16.17 of the Official Plan. 03.02 This policy does not apply to any agreements executed or approved in principle by Council prior to Council's approval of this Policy. 03.03 This policy and any recommendations for Zoning By-law Amendment Applications requesting an increase in density or height, or Bonus Zoning Agreements will be managed by the City Development Department in consultation with the Chief Administrative Officer, Corporate Services Department, Finance Department, Engineering Services Department, and other Departments or external agencies as required. 03.04 The City may develop further City wide, area specific or site-specific Bonus Zoning Official Plan policies, which may specify an amount of authorized increases of additional density or height in return for Community Benefits in place of the 25 percent increase in density permitted by the Official Plan. 03.05 Bonus Zoning is not a means to address the shortcomings of a development proposal. Prior to considering the contribution of Community Benefits in exchange for an increase in density or height, the Director, City Development & CBO, or Chief Planner must be satisfied the development represents good planning and recommends support of the proposal. Good planning includes addressing the following: Policy Title: Bonus Zoning Page 3 of 12 Policy Number: ADM 210 • the Planning Act, applicable provincial and regional plans and policies, and the City Official Plan and urban design guidelines; • the density, height, scale and massing are appropriate for the site and neighbourhood, and are compatible with adjacent uses; • the surrounding community is not negatively impacted by shadows or over flow parking; • the proposed development exhibits high quality urban design and architecture; • there is adequate existing or proposed infrastructure; • requirements of the City and public agencies are addressed; and there is a clear connection between the area of the community impacted by the proposed increase in density or height of the development and the negotiated Community Benefits. 03.06 Community Benefits are generally not expected to mitigate adverse planning impact of developments. Anything that is necessary to mitigate adverse impact is considered necessary for good planning and should not be deemed an eligible Community Benefit. 03.07 If a Zoning By-law Amendment Application requesting an increase in density or height is appealed to the Local Planning Appeal Tribunal (LPAT), the City, at the direction of Council, may request the LPAT impose as a condition of approval, appropriate provisions in the implementing zoning by-law and the requirement for an owner/applicant to enter a Bonus Zoning Agreement. 03.08 There will be no reductions, waivers, credits or exemptions for developments subject to Bonus Zoning Agreements from development charges under the Development Charges Act and parkland or cash -in -lieu contributions requirements under Section 42 of the Planning Act, as amended. 03.09 A request for an increase in density or height through the Bonus Zoning policies of Section 16.17 of the Pickering Official Plan will only be considered through a Zoning By-law Amendment Application to ensure appropriate public engagement for consideration about the nature of the Community Benefit. Policy Title: Bonus Zoning Policy Number: ADM 210 Page 4 of 12 04 Procedures 04.01 Receipt and Processing of the Zoning By-law Amendment Application Prior to the submission of a Zoning By-law Amendment Application, the initial point of contact by an owner/applicant shall be with City Development staff for any discussions or negotiations regarding Community Benefits. City Development staff will provide the Mayor and Ward Councillors with advice as to whether Community Benefits are appropriate and desirable, and information on the appropriate types of benefits. Further consultation between City Development staff and the Mayor and Ward Councillors may occur as necessary or agreed upon between them. The Planning Rationale for any Zoning By-law Amendment Application submitted to the City Development Department requesting additional density or height is to include a Bonus Zoning Justification Brief which must address the following: • Section 16.17 of the Pickering Official Plan; • applicable provincial and regional plans and policies; • applicable Official Plan policies, Neighbourhood Policies, Development Guidelines and any approved Urban Design Guidelines, and • principles of good planning and appropriate development. City Development staff will prepare and circulate the Notice of Complete Application to the Mayor and Ward Councillors and the public as required by the Planning Act, as amended, advising that Bonus Zoning is being requested. The Notice of Complete Application will include a description of the development proposal and the Community Benefit proposed. The public will be consulted and provided opportunities to comment on the proposed development and the appropriate type or level of Community Benefits at appropriate steps in the development review process such as at community open houses and the statutory public information meeting. In consultation with the Mayor and Ward Councillors, a community open house may be scheduled for the public to provide input into the development proposal and the proposed Community Benefit. The Notice of Statutory Public Information Meeting is prepared and circulated as required by the Planning Act, as amended, and the Information Report is prepared by City Development staff describing details of the proposed development, the requested increase in density or height, and the proposed Community Benefit. Policy Title: Bonus Zoning Policy Number: ADM 210 Page 5 of 12 The Statutory Public Information Meeting is held where details of the requested increase in density or height and proposed Community Benefit are presented to the Committee and public input is received. Following the Statutory Public Information Meeting, City Development staff, the Finance Department and other City staff as required will work with the owner/applicant on the details of the proposed bonus zoning and Community Benefits. The following matters are to be considered in determining the Community Benefit: consultation with the Mayor and Ward Councillors, other City departments and the local community; • consistency with the Pickering Official Plan policies, Neighbourhood Policies, Development Guidelines and any approved Urban Design Guidelines; • Council approved studies outlining community needs, and • public input. City Development staff will prepare a Recommendation Report on the Zoning By-law Amendment Application to be considered by the Planning & Development Committee and Council. The Report will contain a recommendation on the proposed development, the request to increase the density or height, and on the appropriateness of the proposed Community Benefit, and if supported, will include necessary conditions to secure the Community Benefit, Following Council's approval, staff will prepare a Bonus Zoning Agreement, and implementing Zoning By-law Amendment. 04.02 Determining Community Benefits It is desirable and encouraged that an analysis and identification of existing and potential needs and services be done in advance of the receipt of a Zoning By-law Amendment Application requesting additional density or height through the Bonus Zoning policies of Section 16.17 of the Pickering Official Plan. Consideration should be given to intensification issues in the area, the nature of the proposal, and the strategic objectives and policies of the Pickering Official Plan. The purpose of such analysis is to assist in determining the appropriate type of Community Benefit. Some examples of Community Benefits are listed in Section 16.17(a) of the Official Plan, however this list is not exhaustive. Policy Title: Bonus Zoning Policy Number: ADM 210 Page 6 of 12 Community Benefits shall be specific public facilities, services or matters, or cash -in -lieu contributions towards specific public facilities, services or matters, which may include but are not be limited to: • additional open space for the purpose of public parkland, or public trails; • community facilities such as playgrounds, sports fields, day cares, community halls, trails/walkways; • affordable rental and/or ownership housing secured for a minimum of 20 years; • preservation of heritage buildings or structures; and • preservation of natural heritage features and functions such as woodlots. Operating, programming, and non -capital maintenance funds are not appropriate Community Benefits. The securing of improvements to public facilities, including cash contributions toward such facilities that are leased by the City is an eligible Community Benefit. There should be an existing lease, or a lease that is renewable at the City's option securing the facilities for at least 15 years from the time the Community Benefit is provided to the City. Community Benefit contributions towards public facilities, services or matters will be over and above the facility costs that would be funded through or dedicated to the City through the Development Charges By-law, as amended, or parks contributions under the Planning Act, as amended. Community Benefits may be further identified in Council approved Neighbourhood Policies, Development Guidelines and any approved Urban Design Guidelines. 04.03 Location of Community Benefits A reasonable planning relationship between the secured Community Benefit and the increase in density or height as determined by City Development staff is required. The principle of a reasonable planning relationship refers to the following: • the proximity of the Community Benefit to the proposed development and the neighbourhood where the proposed development is located; and • a comparison of the monetary value of the additional development rights being proposed with the monetary value of the Community Benefit. Policy Title: Bonus Zoning Policy Number: ADM 210 Page 7 of 12 The Community Benefit or the cash contribution may be accepted to address City wide needs, which cannot be adequately addressed in the vicinity of the proposed development. A change to an existing agreement to reallocate funds or change the Community Benefit may be possible. The change process must be open, public, and subject to the appropriate legal processes, and authorized by Council. All parties to the original agreement, their successors in title, must approve the change and sign an amending agreement. 04.04 Valuation of Community Benefits An `increase in land value' approach will be used to set the minimum and maximum limits for Bonus Zoning contributions. The contribution for a Community Benefit represents a reasonable portion (20 to 40 percent) of the increase in land value resulting from an increase in density or height over the Base Density. The base density is the maximum density permitted by the Pickering Official Plan. The percentage of the increase in land value applied in each Bonus Zoning proposal will be determined by the value of the community benefit identified by the City To determine the Land Value, the owner/applicant will submit for the City's review a land appraisal report, prepared by an Accredited Appraiser. Alternatively, the Land Value will be determined by other reasonable methods as determined by the City using Municipal Property Assessment Corporation, recent sale values for the property, or a purchase and sale agreement that is less than one year old. Should the owner/applicant and the City not agree with the submitted land appraisal, the City will commission a land appraisal report the cost of which will be covered by the owner/applicant. The staff report recommending approval of the Bonus Zoning proposal will contain an outline of the increased density or height proposed, the Community Benefit to be secured, and the value and timing of the Community Benefit and contribution to be made by the owner/applicant. Calculations to determine the financial value of the Bonus Zoning Contributions are outlined in the following tables. Policy Title: Bonus Zoning Policy Number: ADM 210 Page 8 of 12 Table 1 — Land Designated Urban Residential Areas and Mixed Use Areas Excluding City Centre 1. Maximum Number of Units Permitted Land Area (A) X Base Density (B) = Maximum Number of Land Value (D) X (maximum density permitted by the = Units Permitted (C) Example: Official Plan) Example: '/ 140 units = $7,142.86 1.0 ha X 140 dwellings per net ha = 140 units 2. Land Value of Each Permitted Unit Appraised / Maximum Residential = Land Value of Each Land Value (D) X Units Permitted (C) = Permitted Unit (E) Example: $1,000,000.00 '/ 140 units = $7,142.86 3. Land Value Resulting from Proposed Density Land Value ofX Each Permitted Unit (E) X Proposed Residential Density (F) (maximum of 25 percent increase over permitted density) _ Land Value Resulting from Proposed Density (G) Example: $7,142.86 X 175 units per net ha = $1,250,000.00 4. Increase in Land Value Land Value X Appraised Land Value = Increase in Land Resulting from X (D) = Value (H) Proposed Density (G) Example: $1,250,000.00 - $1,000,000.00 = $250,000.00 5. Minimum and Maximum Limits for Bonus Zoning Contribution Increase in Land Value (H) X 20 percent to 40 percent (I) _ Minimum & Maximum Limits for Bonus Zoning Contribution (J) Example: $250,000.00 X 20ercent p 40 percent = $50,000.00 (min) $100,000.00 (max) Policy Title: Bonus Zoning Policy Number: ADM 210 Page 9 of 12 Table 2 — Land Designated City Centre (Increased Height Requested) 1. Land Value of Each Permitted Unit Appraised Land Value (A) 1 Number of Residential Units Proposed within the Permitted Maximum Height (B) Land Value of Each Unit at Permitted Maximum Height (C) Example: $1,000,000.00 X 350 = $2,857.00 2. Land Value Resulting from the Proposed Number of Units Land Value of Each Unit at Permitted Maximum Height (C) X Total Proposed Number of Units(D) Land Value Resulting from Proposed Number of Units (E) Example: $2,857.00 X 420 = $1,199,940.00 3. Increase in Land Value Land Value_ X Appraised Land Value = Increase in Land Resulting from X (A) = Value (F) Proposed Number of Units (E) Example: $1,199,940.00 - $1,000,000.00 = $199,940.00 4. Minimum and Maximum Limits for Bonus Zoning Contribution Increase in Land Value (F) X 20 percent to 40 percent (G) _ Minimum & Maximum Limits for Bonus Zoning Contribution (H) Example: $199,940.00 X 20 percent p 40 percent = $39,988.00 minimum $79,976.00 maximum Policy Title: Bonus Zoning Policy Number: ADM 210 Page 10 of 12 04.05 Implementing Zoning By-law and Bonus Zoning Agreements The implementing Zoning By-law will address the Bonus Zoning provisions including the amount of the cash contribution to be provided by the owner/applicant, details of the Community Benefit, the timing of the payment of the cash contribution, the timing of the provision of the Community Benefit, and the requirement for a Bonus Zoning Agreement and its registration on title of the subject lands. The Bonus Zoning Agreement will identify the Community Benefit, how any cash contribution will be used, and will be registered on title of the subject lands. The implementing Zoning By-law and Bonus Zoning Agreement may, at the City's discretion, identify how any excess funds remaining after a completion and closing of a Community Benefit project may be used. The payment or provision of Community Benefits generally does not occur upon execution of the Agreement. The timing of payment or provisions of benefits will be outlined in the implementing Zoning By-law and the Bonus Zoning Agreement. The payment for the cash contribution will be due at the time of execution and negotiation of a site plan agreement, subdivision agreement or development agreement unless otherwise agreed to by Council. In a phased development, the payment of the cash contribution may, at the City's discretion, be phased and the timing will be outlined in the Bonus Zoning Agreement. Matters required to support a development either necessary for good planning or routinely required in the absence of using Bonus Zoning may also be secured in a Bonus Zoning Agreement instead of a separate development agreement. 04.06 Cash Contributions Cash contributions may be secured in -lieu of an owner/applicant being required to construct or provide specific facilities and can be accepted towards infrastructure services and facilities that address service needs or deficiencies in the existing community or services for future growth, either of which cannot be funded or are only partly funded by Development Charges or other Planning Act contributions. In a large phased development, cash payments may be phased, subject to the consideration of staff recommendation and Council approval. An "H" — Holding Zone may be used to ensure receipt of negotiated Community Benefits in the form of cash. Cash benefits received from a Bonus Zoning Agreement will be collected by the City Development Department and held in a Public Benefits Reserve Fund set up for that purpose. This fund will be managed by the Finance Department. Policy Title: Bonus Zoning Policy Number: ADM 210 Page 11 of 12 Cash contributions secured in Bonus Zoning Agreements may be indexed to the Statistics Canada Construction Price Index for Durham Region that would pertain to the type of Community Benefit secured (new housing or non-residential). Cash contributions will be placed in a dedicated Public Benefits Reserve Fund managed by the Director, Finance & Treasurer, and spent only for facilities, services, and other matters specified in the implementing Zoning By-law. A record of proceeds and disbursements will be maintained in conjunction with the Public Benefits Reserve Fund and capital projects' balances. The money in the Public Benefits Reserve Fund may be invested in accordance with the Municipal Act, as amended. Any earnings derived from the investment of the money shall be paid into the special account. The annual auditor's report shall report on the activities and status of the account. 04.07 Reporting to Council In accordance with the Planning Act, as amended and the Municipal Act, as amended, the Director, Finance & Treasurer, will provide Council with an annual detailed financial statement related to the Public Benefits Reserve Fund. The financial statement is to include statements and identification of: • opening and closing balances; • transactions; • any facilities, services or other matters specified in the by-law for which funds from the special account have been spent during the year; • details of the amounts spent; and • the manner in which any capital cost not funded from the special account was or will be funded for each facility, service or other matter specified in the by-law. In accordance with the Planning Act, as amended, the annual auditor's report shall report on the activities and status of the special account established for the Community Benefit money. In accordance with the Planning Act, as amended, a copy of the financial statement shall be available to the Minister of Municipal Affairs and Housing upon request, and shall be made available to the public. Policy Title: Bonus Zoning Page 12 of 12 Policy Number: ADM 210