HomeMy WebLinkAboutCS 09-03
Ciú/ o~
REPORT TO FINANCE &
OPERATIONS COMMITTEE
Report Number: CS 09-03
Date: February 10, 2003
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Recommendation:
1.
That Report CS 09-03 of the Director, Corporate Services be received for
information and that:
2.
Council approve providing relief from the provisions of the 1987 Development
Agreement respecting cash-in-lieu of parkland payment for the last phase of the
development, being 1200 The Esplanade North, based on the same formulae as
was applied to the Millennium Apartment at 1 000 The Esplanade North, at an
estimated cost of approximately $160,000 on the condition that City owned
microwave equipment be accommodated on the roof of the new building;
3.
Council support the application of Provincial Home Ownership Program Funding
to this project subject to any future related municipal obligations being approved
by Council;
4.
should Council wish to consider a further provision of financial assistance to this
project the payment of cash-in-lieu of parkland and the City's development
charges be deferred until the above ground building permit for this property is
issued or six months from the issuance of the below ground building permit,
whichever occurs first;
5.
the attached By-Law be read three times and passed by Council; and,
6.
the appropriate officials of the City of Pickering be given authority to give effect
thereto.
Executive Summary: At its meeting of December 2, 2002 Council considered the
recommendations of Report CS 31-02 and referred the matter back to staff for further
discussion with representatives of Options from Homes. I had several discussions with
Michael Labbé, President, Options for Homes and Elio Zoffranieri, Senior Manager
Report CS 09-03
Date: February 10, 2003
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 2
Planning Services, Deltera Inc. The Director, Planning and Development and myself
met with them and discussed the information contained in the original letter and they
submitted further information. It is now the appropriate time to report back to the
Committee.
Under its correspondence of August 23, 2002 Options for Homes has requested
deferral of up to $1.4 million of fees and levies payable to the City to assist in the
financing of this project. The deferral of the first $700,000 is to result in a savings for
Options for Homes that will be directed toward the provision of affordable units with
extra accessibility features for 8 to 12 units. The deferral funds would be used to assist
purchasers with their down payments. In their latest correspondence, December 23,
2002 they offer to pay interest on the deferred funds until they are repaid when the units
are resold. As a result the affordability offered would be for the first buyer only
however, the accessibility changes would be permanent.
The second $700,000 is proposed to be deferred until after the condominium closes.
This would defer fees, levies and charges due to the city at the time of issuance of the
building permit until the condominium closes. They propose to pay interest to the City
on this deferral and have both deferrals guaranteed by the mortgage holder. Options
for Homes have also requested a reduction in the parkland cash-in-lieu obligations
established under a 1987 development agreement and Council's support in designating
this site as a "Revitalization Zone" in order to secure funding assistance under a
Provincial Home Ownership Program. All of the foregoing is discussed more
extensively below and in Report CS 31-02.
All in all the concessions are designed to reduce the cost of the development, thereby
increasing affordability. The deferral also allows Options for Homes to more closely
match the paying out of fees and levies to the City with the receipt of funds from
financiers or mortgage holders. In effect the City becomes the financier for the
development phase of the project.
Financial Implications: Generally speaking, any financial concessions provided to
a developer or building involving funds that the City will eventually use to finance
present or future projects will result in a shortfall that must ultimately be made up from
the tax levy, there being no other source of readily available funds available. This
would include revenues from development charges for present and future projects
identified in the 1999 Development Charges Study approved by Council. It would also
include the development of, and the provision of amenities for, parks in the City.
That being said, there may be other reasons that the Council wishes to consider in this
specific case. This could include granting concessions to the original 1987 agreement
regarding the parkland cash-in-lieu payment using the same concession granted by
Report CS 09-03
Date: February 10, 2003
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 3
Council in 1998 for the Millennium Building. Some relief from development charges
was also provided at that time through capping provisions of the 1987 development
agreement. However, it is now many years later, and a new revised and improved by-
law for the calculation and collection of development charges has been approved by
Council. As previously mentioned in Report CS 31-02 Options for Homes are enjoying
significant savings on development charges through the terms of the 1987 agreement
which capped City development charge payment at $3,000 per unit. Current City
development charges are $4,029 for apartments two bedrooms and larger, and $3,021
for apartments one bedroom and smaller.
Furthermore, it is felt that the granting of concessions in regards to Development
Charges in particular runs the risk of setting an expensive precedence and it would
therefore not appear appropriate to pursue that aspect further.
I should also mention that, to the best of my knowledge, these concessions are being
sought from the City of Pickering only and not from the development charges levied by
the Region of Durham or the school boards.
Background: As the original report (Attachment 1) on this matter sets out the
details of the items to be considered, they will not be repeated here. The latest
correspondence from Options for Homes (Attachment 2) provides further information
regarding the granting of financial concessions in regards to development charges and
the quantum and timing of payments. Options for Homes advise that any adjustment in
expenses to the development will go to one of two places:
a) improvements to the building; or
b) the pool of money used to develop other similar housing developments in Pickering
It appears to be a rather complex set of proposed arrangements of which the financial
benefit to Options for Homes, and hence the cost to the City, beyond that indicted in the
original report, cannot be quantified at this time.
It does appear however that there is not a need for such financial concessions to make
the project viable, especially considering they are wiling to pay interest to the City on
any deferrals. It appears that the requested deferrals are a request for the City to act
as the "banker/financer" for certain costs of accessibility, improvements on future
housing while they are willing to pay interest on some funds. The balance would be
dependent upon "...the rate of real estate appreciation in Pickering" with a minimum
repayment schedule. While one can debate the degree of potential risk to the City, this
rather complex proposal would be precedent. The fact that this matter is being
considered in the next calendar year (2003) after this matter was first considered by
Report CS 09-03
Date: February 10, 2003
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 4
Council at its meeting of December 2, 2002 has increased the parkland benefit by
$28,000 to $160,212. Based on the 1987 agreement, development of the lands in
2003 would bring a parkland cash-in-lieu payment to the City of $724,269. Applying the
same relief formulae used for the Millennium Building in 1998, this payment is reduced
to $564,057, representing additional savings of $160,212 to the developer.
Desiqnation as Revitalization Area for the Purpose of Homeowner Grant Eliqibilitv
Options for Homes originally requested that Council designate the lands proposed for
the last apartment tower as a "revitalization area" for the purposes of "making the
building eligible for homeowner grants that will soon be available to purchasers in
Ontario". In report CS31-02 staff expressed concern over the application of such a
formal designation over these specific lands. The Ministry of Municipal Affairs &
Housing recently provided some details of the home ownership component of the
Affordable Housing Program. The booklet provides that to be eligible for program
funding, new homes must be in a 'neighbourhood improvement area' and the homes
must be within locally defined affordability limits. Further details will be provided at a
later date, when application forms are developed. Ministry staff have indicated that the
definition of 'neighbourhood improvement area' is expected to be open to municipal
interpretation and is not expected to place obligations or costs on the municipality. As
an alternative to placing a formal 'designation' over these lands, Options for Homes
have requested that Council provide formal support to the application of Provincial
Home Ownership Program Funding to this project. This will provide a general signal to
the Province that the City supports the application of home ownership program funding
to the Options for Homes project, without formal designation or the acceptance of
unknown municipal obligations. Staff generally support this request and have included
an appropriate recommendation.
Conclusion
All aspects were considered by staff with the conclusion that the requested reduction on
the parkland dedication payment to match that provided to the Millennium Apartment
Building should be supported. This would save the company an estimated $160,212.
Council could also consider the deferring payment of parkland cash-in-lieu and City
development charges to when the "above ground building permit" is issued or six
months from the issuance of the below ground building permit", whichever occurs first.
This is the same relief approach as was provided to the Millennium Building and is
included as Recommendation 4. The amount of the deferral payment is estimated at
$1,224,057 ($564,057 parkland cash-in-lieu plus $660,000 City development charges).
Report CS 09-03
Date: February 10, 2003
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 5
While staff are not comfortable with a designation of the site as a "Revitalization Zone"
we can support their revised request that Council formally support the application of
Provincial Home Ownership Program funding to this project.
Staff also feel that the onus for providing financial concession should not fall
solely on the City. Options for Homes should also approach the Region of Durham
and the School boards for similar considerations regarding the timing of payments.
This report has been reviewed with the Director, Planning & Development who concurs
with the recommendations. The By-Law has been prepared by the Solicitor for the City.
Attachments:
1. By-Law to Authorize the Execution of an Agreement
2. Letter from Options for Homes, dated December 23, 2002
3. Resolution #137-02
4. Report CS 31-02 to the Finance & Operations Committee
Prepared / Approved I Endorsed By:
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Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
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THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO.
Being a by-law to authorize the execution of an Agreement
between the City of Pickering and Discovery Place Limited
regarding the payment of development charges and cash in-
lieu of parkland dedication for the McLevin at Discovery
Place on part of Lot 21, Concession 1, Pickering, designated
as Part 2, Plan 40R-19316.
WHEREAS Section 27 of the Development Charges Act, 1997, S.O. 1997, c.27 and
amendments thereto authorizes the City to enter into agreements for the payment of
development charges on dates later than the issuing of a building permit;
WHEREAS the proposed 220 unit high-rise residential development will be constructed
through the issuance of staged building permits, the first permit being a conditional
building permit for the underground works and the second permit will be issued for the
above-ground superstructure;
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WHEREAS the City's existing practice requires all development charges and cash-in-
lieu of parkland dedication to be paid prior to the issuance of the first building permit
issued for the development;
WHEREAS the City desires to enter into an agreement with Discovery Place Limited
regarding the timing of the payment of the City's development charges and the cash-in-
lieu of parkland dedication on the proposed McLevin at Discovery Place condominium
development to be located on 1200 The Esplanade North.
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF
PICKERING HEREBY ENACTS AS FOLLOWS:
1. The Mayor and Clerk are hereby authorized to execute an Agreement with
Discovery Place Limited, prepared in a form acceptable to the Solicitor for the City,
which provides for the deferred payment of the City's development charges and
cash-in-lieu of parkland for the 220 units (McLevin at Discovery Place) development
until the above ground building permit is issued or six months from the issuance of
the below ground building permit, whichever occurs first.
BY-LAW read a first, second and third time and finally passed this 3rdh day of March,
2003.
Wayne Arthurs, Mayor
Bruce Taylor, Clerk
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12/24/2002 11:00
4158571743
OPTIONS FOR HOMES
PAGE 02
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t.?~ for Homes
ATTACHMENT#~ TO REPORT # (;'2-O1- 4.3
The Key to Home Ownership for Eve.ryone
Decernber 23,2002
Gillis Paterson
Director, Corporate Services & Treasurer
City of Pickering
One The Esplanade
Pickering, ON
LIV 6K7
Dear Mr. Paterson:
Re: Municipal Assistance for the McLevin Condominiums
Allow me to thank you and Neil Can-oU for taking the time to discuss this matter with us. I ar.\1
pleased to offer the following clarification of our information,
First, it is very important to note that any adjustment in expenses to the development will go to
one of two places:
a) improvements to the building; or
b) the pool of money used to develop other similar housing developments in Pickering.
Second, our goal, as it relates to our request on the Park Land Dedication Fees, is that this
building be treated in a way similar to that of the first MilJennium building as an issue of
fairness. The CUlTent agreement, which Emits the size of the development charges, is fair given
the fact that the services for the Town Centre were built over a decade ago and setting a cap
recognizes this sítuation. In any eventuality, the difference between the benefit received by
Millennium I and McLevín on development charges appears to be $4,029 minus $3,754 or $275
per two-bedroom unit.
Third, I would confiml that the $700,000 defeITal in favour of helping purchasers who need
attendant care services would be used exclusively for individuals in wheelchairs. Any funds not
utilized in this manner would be returned to the City when the condominiums Close, It is our
goal to approach all of the attendant care facilities in Pickering to look for potentials buyers. In
this way, any vacancies created could reduce the waiting list for those fad1jties.
468 Queen SLrr:et East, Lower Levell, P.O. Box 28, 1òronto, Ontnrio MSA. IT7
tel: (416) 867-I50Iojax: (416) 867-/743. website: Qptions.Ícomm.C(~ . e-mail: op[ian.~@Jcomm,ca
12!?4!2002 11:00
4158571743
OPTIONS FOR HOMES
PAGE
03
Gillis Paterson
Decelì1.tlcr 23,2002
Page 2
Fourth, with respect to the deferral of charges during the development period, I would confinn
that this amount would be reduced below the $700,000 to match whatever is available to defer
subsequent to the initial $700,000 committed to the attendant care units.
Fifth, it is, indeed, our intention that the defen-aIs be designed so that they become revenue
neutral for the City. We would suggest that the funds deferred during construction pay an
appropriate interest rate and that the deferrals for the attendant care units apprecíate at the rate of
rea] estate appreciation in Pickering, We would also be open to a minimum payrD.ent scheduJe,
such as we proposed, to offer greater protection to the City on this issue- Since this minimum
payment schedule is a back up, a relatively low interest might be appropriate.
Sixth, with respect to the designation of the site as a revitalization zone, as an alternate
possibility we could simply request that Council move a motion which supports the application
of the newly atU1ounced Home Ownership Program from the Ministry of Municipal Affairs and
Housing to this site.
I have discussed this matter with the Ministry of Housing. They have requested that the rationale
for this motion include the low vacancy rate in Pickering, the fact that the site has been partially
excavated for the last several years and the need for the site to proceed to complete the
neighbourhood.
All of the points here are open to discussion. Our goal is to help Pickering residents - both able
bodied and those with mobility issues - become homeowners. We wish to do this in a consensual
manner and are open to any changes that can bring us and staff together to achieve this goal.
Yours tmly,
i~ ?Jt-r /
Michel Labbé
President
ML:sn
end
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REPCìRT#.t S 4)~"Ì - 0;;
INTER-DEPARTMENTAL MEMORANDUM
CLERK'S DIVISION
DATE: January 24, 2003
TO:
Gil Paterson
Director, Corporate Services & Treasurer
FROM:
Bruce Taylor
City Clerk
Please be advised that the Council of the City of Pickering passed Resolution #137/02,
Item #15 at the Council Meeting of December 2, 2002, as follows:
1. That Report CS 31-02 of the Director, Corporate Services & Treasurer,
concerning Tridel/Options for Homes Development Final Phase, be
received; and
2. That Council advise staff if it wishes to provide relief from the
provisions of the 1987 Development Agreement respecting cash-in-lieu
of parkland payment for the last phase of the development, being 1200
The Esplanade North, based on the same formula as was applied to the
Millennium Apartment at 1 000 The Esplanade North at an estimated cost
of approximately $132,000; and
3. That Council advise staff that it wishes to explore possible options for
permitting, in addition to the relief from Development Charges in the
estimated amount of approximately $112,000 as provided by the 1987
Agreement, any further relief in the form of deferral of all parkland
payments, fees, charges and development charges:
a) totalling $700,000 or less at an estimated cost of approximately $178,000
until the units are resold or a maximum of 15 years after any
agreements are executed; and
b) totalling more than $700,000 at an estimated cost of approximately
$31,000 until one year following project negotiation; and
4, That should Council determine that it wishes to explore possible
options for relief outlined in Recommendations 2 and/or 3 above, that
the Chief Administrative Officer, the Director, Corporate Services &
Treasurer and the Director, Planning & Development be authorized and
directed to enter into discussions with the appropriate representatives
of Deltera Inc. and Options for Homes in order to determine and explore
all options, the potential costs to the City and to present the results of
these discussions at the earliest possible opportunity for the
consideration of the Committee and Council; and
5, That appropriate officials of the City of Pickering be given authority to
give effect thereto.
This resolution is sent to you for your information.
Bruce Taylor, City Clerk
Al"TACHi"îEN"r #~TO REPORT#. CSØ'?l-~3
Cih¡ D~
REPORT TO THE
FINANCE & OPERATIONS COMMITTEE
Report Number: CS 31-02
Date: November 13, 2002
From:
Gillis A. Paterson
Director, Corporate SeNices & Treasurer
Subject:
Tridel/Options for Homes Development Final Phase
. 1200 The Esplanade North (East of Millennium Building)
Recommendation:
1. That Report CS 31-02 of the Director, Corporate SeNices & Treasurer be received
, for information and that:
2. Council advise Staff if it wishes to consider providing relief from the provisions of the
1987 Development Agreement respecting cash-in-lieu of parkland payment for the
last phase of the development, being 1200 The Esplanade North, based on the
same formulae as was applied to the Millennium Apartment at 1 000 The Esplanade
North, at an estimated cost of approximately $132,000;
3. Council advise staff if it wishes to consider permitting, in addition to the relief from
Development Charges in the estimated amount of approximately $112,000 as
provided by the 1987 Agreement, any further relief in the form of deferral of all
parkland payments, fees, charges and development charges:
a) totaling $700,000 or less at an estimated cost of approximately $178,000 until
the units are resold or a maximum of 15 years after any agreements are
executed;
b) totaling more than $700,000 at an estimated cost of approximately $31,000
until one year following project negotiation;
4. Should Council determine that it wishes to consider relief outlined in
Recommendations 2 and/or 3 above, that the Chief Administrative Officer, the
Director, Corporate SeNices & Treasurer and the Director, Planning & Development
be authorized and directed to enter into discussions with the appropriate
representatives of Deltera Inc. and Options for Homes in order to determine and
explore all options, the potential costs to the City and to present the results of these
discussions at the earliest possible opportunity for the consideration of the
Committee and Council; and,
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 2
5. that appropriate officials of the City of Pickering be given authority to give effect
thereto.
Executive Summary: Deltera Inc. (Tridel) and Options for Homes propose to
develop the last phase of the Apartment/Casita complex located in the City's downtown,
between Kingston Road and the Esplanade North (1200 The Esplanade North). The
project consists of an eleven (11) storey apartment building containing 220 units. In
order to accommodate thè development, assist in the provision of affordable home
ownership, and provide special accessible units for 8-12 households, Options for
Homes and Deltera are requesting that the City provide financial relief in the form of
parkland cash-in-lieu payment reduction, and the deferral of parkland, development
charge, and other municipal fees and levies. Further, Options for Homes requests that
the City designate the lands as a "revitalization area" for the purpose of homeowner
grant eligibility.
Staff are supportive of initiatives to complete this important area of Pickering's
Downtown, with the continuing involvement of Tridel as builder. Generally speaking,
staff are also supportive of the concept of providing more affordable ownership housing
accommodation in the City. We understand that the external elements of this project
will be of high quality standards as the existing apartments at Discovery Place. Tridel
has recently submitted a Site Plan Application for this project which is currently under
review by staff.
This report outlines details of the requests, as staff understands them, and considers
the related financial implications. Council direction is necessary in order to confirm its
interest in considering further the request for the parkland reduction and the reduction
and deferral of fees and chargès.
Financial Implications: The total estimated benefit to the developer, representing
either a direct cost to the City, or lost income is as follows:
Parkland Dedication
Development Charges
Deferral of $700,000
Deferral of over $700,000
Total Benefit
$132,355
112,476
178,000
31 ,132
$453.963
Any financial decisions favouring the developer, especially those involving development
charges, will have to be made up by an increase in property taxes as the majority of
these items affect the Development Charges Study approved by Council in 1999.
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 3
Background: Deltera Inc. (Tridel) and Options for Homes proposes to complete the
development of lands betWeen Kingston Road and the Esplanade North with an eleven
(11) storey apartment building containing 220 dwelling units (see Attachment 1). In
letters from Options for Homes and Deltera Inc. dated August 23, 2002 (see
Attachment 2), and August 29,2002 (see Attachment 3) respectively, various requests
of the City are set out pertaining to the reduction and deferral of municipal fees and
development charges.
We have reviewed the Options for Homes letter to the Chief Administrative Officer
dated August 23, 2002; the Report to Council from the Town Solicitor dated May 23,
1998 on the previous Phase (Millennium Building); the agreements between Duffin
Developments Inc., Discovery Place Limited and the Town of Pickering dated January
19, 1987, and June 3, 1998; other documents as provided to us. The following is based
upon our understanding of the foregoing.
The current proposal calls for 220 units of which 51 per cent (113 units) are one
bedroom and 49 percent (107 units) are two bedroom or larger. Comments in this
report pertain to the financial considerations requested of the City and not the Region
nor the School Boards.
Michel Labbé's letter of August 23, 2002 lays out the detail of his request of the City.
This report addresses the issues in the order they appear in that letter. Also attached
for information is: a letter dated September 3, 2002 from McLevin Co-Operative
Development Corporation (see Attachment 4); an Information Flyer/Letter outlining the
project dated July 10, 2002 (see Attachment 5); an Options for Homes 'Frequently
Asked Questions' sheet (see Attachment 6); a letter dated September 11, 2002 from
the Chief Administrative Officer to Deltera Inc. (see Attachment 7); and, a letter dated
September 16, 2002 from the Chief Administrative Officer to the President, Options for
Homes (see Attachment 8)
Reduction of Cash-in-Lieu for Parkland Dedication Fees
The letter of August 29, 2002 from EIio Zoffranieri, Senior Manager Planning Services
for the Deltera Inc to the Chief Administrative Officer contains the following statement,
in part: fl. ..this letter shall serve as a formal request for both deferral and reduction of
the cash-in-lieu of parkland dedication requirement.. .using the same formula used for
the Millennium Building...."
On January 19, 1987 Duffin Developments Inc., Discovery Place Limited and the Town
entered into a Development Agreement respecting the development of lands that
currently comprise the Tridel Apartment and Casita projects. Section 33 of the
agreement provided that a cash-in-lieu payment for the provision of parkland be paid for
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 4
each residential condominium apartment building prior to the issuance of a building
permit for that building. The agreement ~e.t out a formulae for the determination of the
payment amount which included a 10% per annum increase (not compounded) in the
amount payable to provide for inflationary and other escalating factors.
According to the Agreement the payment is to be calculated as follows:
U ,392,825 x N
5
(where N is 1.0 if the payment is made in 1987,
and increases at the rate of 0.1 per year thereafter)
At the time the Agreement was entered into the parties anticipated that the entire five
phases of the development would be built out by June of 1990. Unfortunately the
economic climate changed and to date, only four of the five phases have been
completed. .
The first three phases of the development, consisting of two apartment towers and the
Casitas, provided parkland cash-in-lieu payments in accordance with the agreement
formulae (totaling $1,086,403). The forth phase, being the 253 unit 'Millennium'
apartment building received some relief in cash-in-lieu payment from Council. Rather
than apply the formulae of the agreement, Council agreed to a payment option which
used the Casita 1994 parkland payment of $473,560 indexed by the rate of inflation
since 1994 established by the Consumer Price Index for Toronto. This resulted in a
payment of $512,335 for the Millennium phase. This represented a benefit of $72,650
to the developer.
Deltera/Options for Homes requests that Council apply the same relief approach to the
cash-in-lieu requirements for the final apartment tower phase. They request that the
payment be based on the Casita payment, indexed by the rate of inflation since 1994.
This will result in a payment of $564,057, which represents a benefit of $132,355 to the
developer (payment of $696,412 would be required under the formulae of the 1987
development agreement if the building permit is issued in 2002).
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Desianation as Revitalization Area for the Purpose of Homeowner Gran~
Options for Homes, in its August 23, 2002 letter, requests that the lands proposed for
the apartment tower development be designated by Council as a "revitalization area" for
the purposes of "making the building eligible for homeowner grants that will soon be
available to purchasers in Ontario". It is stated that this grant will be between $6-8,000
per unit and available to purchasers whose incomes are below the 60th percentile for
Pickering, who are currently renting and buy in a revitalization area. Mr. Labbé of
Options for Homes advised that the grant monies would reduce the first mortgage on
the units, lowering the monthly carrying costs by about $50 per month for each unit.
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 5
Staff contacted the Ministry of Municipal Affairs and Housing to receive information on
the homeowner grants referenced by Mr. Labbé. The Ministry advised that details on
the affordable urban homs ownership program have not yet been finalized or released,
although discussions between the Province and some stakeholders have been held. It
appears that the Federal Government may tie its participation in the grant program to
housing that is made available within designated 'revitalization areas'.
Until such time as details are available respecting this anticipated grant program, it
would be premature for the City to apply any specific 'designations' to this area, such as
a 'revitalization area' designation. Further, these lands are located in the City's
downtown core, within a complex of prestige buildings and in an area considered to
hold high development potential and desirability. The appropriateness and necessity of
designating these lands as a 'revitalization area' would have to be fully considered.
Municipal Fees and Levies
Options for Homes further requests that the City defer the first $700,000 of municipal
fees and levies to when the suites are resold. This deferral is requested in order that
their client, the McLevin Corporation, can help 8-12 households with physical disabilities
and requiring care to purchase in the building (special accessibility units). Further, the
deferred funds would be used to help people with their down payments to make units in
the building affordable at various income levels (see Attachment 2). If this amount
determines affordability of the units, then based upon the information provided in Mr.
Labbé's letter, affordability ceases for the original target owner audience upon resale.
Fees and levies normally payable to the City are:
Building Permit Fees (estimated)
Site Plan Approval
Draft Plan of Condo and Release
Parkland Dedication
Development Charges
Total Payable
$145,000
6,250
1,800
696,412
660.000
$1.509.462
Development Charaes
In considering Deltera's request for a reduction in parkland cash-in-lieu payment, one
must also take into consideration the reduction in City development charges provided
by the terms of the 1987 agreement. While the parkland payment requirements under
the 1987 agreement are significant, so is the relief provided by the Agreement in
development charge payments. The agreement requires that the City development
charge (unit levy) be the lesser of the amount of the Town's two-bedroom apartment
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 6
residential unit levy in effect on the day of payment by the owner or $3,000 per unit if
paid after January 31, 1990. When Co4n~il granted the parkland payment relief for the
Millennium apartment building in 1998 and processed the building permit, the Town's
two-bedroom apartment development charge was $3,754 (excluding hydro payment of
$663). Consequently, the provisions of the 1987 development agreement did provide
significant savings to the developer of approximately $92,778. The City's current two-
bedroom apartment unit development charge is $4,029, resulting in a significant
savings to the developer of $1029 per two bedroom unit as shown below.
Consideration must be given to the development charge savings provided to the
developer through the 1987 agreement when considering any financial relief that
Council may wish to grant respecting parkland cash-in-lieu payment.
The 1987 Agreement "caps" development charges at $3,000 per unit, which is
confirmed in the 1998 agreement which, when multiplied by the 220 units, equals
$660,000. Inherent in this condition is an unrecognized savings to the developer under
the City's current Development Charge By-Law as follows:
Size
Development
Charge/Unit
$3,021
$4,029
No. of
Units
133
107
Total
$341,373
431,103
. 660,000
ìj 12.476
One bedroom & smaller
Two bedroom & larger
Less "capped" amount
Unrecognized loss to the City
The proposal calls for the deferral of the $700,000 until the units are sold OR a
minimum of $100,000 per year commencing 5 years after registration of the
condominium and thereafter for 8 % years. The letter states that this would
".. .guaranteeing a 21 % rate of return". There were no details of this calculation but
assuming $100,000 per year for 8 % years equals $850,000. The difference or
additional funds over the deferred $700,000 would be $150,000 which would appear to
produce the 21 % rate of return. HOWEVER, the calculation ignores the time value of
money or the lost interest income on the money deferred. In other words a dollar today
is worth approximately 4 per cent more than a dollar one year from now. Conversely, a
dollar on year from now is worth 96 cents today. As perhaps a "worst case" scenario,
assuming registration takes place one year later plus the deferral of 5 years thereafter
plus the repayment timeframe of 8 % years (assuming no resale) equals a total deferral
of 14 % years. Under these assumptions the $850,000 is worth approximately
$522,000 today. This results in a savings to the developer, or a loss to the City of
$328,000, or 47 per cent. Deducting the $522,000 from the original deferred $700,000
results in a direct cost to the City of $178,000 or 25 per cent.
'Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 7
Under a "best case" scenario, registration takes place immediately upon completion,
which occurs quickly and resales occur at the rate of 10 per cent per year. While no
details are provided on the amount payable to the Cityúpon resale, dividing the
deferred $700,000 by 220 units yields $3,182 per unit or a total of $70,000 per year.
This would occur for the first 5 years totaling $350,000 with $100,000 payable in years
5 through 8 Y2. The estimate present value of this stream of funds is $536,000
representing a cost to the City, or saving to the developer, of $164,000 or 23 per cent.
Options for Homes also request a deferral of any amounts owing the City in excess of
$700,000 until n.. .after the closing of the condominium". We assume this refers to the
registration of the condominium. If correct, then $809,462 ($1,509,462-700,000) would
be deferred for one year resulting in a present value of $778,330 and a savings to the
developer, or cost to the City of $31 ,132.
Mr. Labbé's letter states that the deferrals would be guaranteed by Home Ownership
Alternatives Non Profit Corporation. Until more is known about this company, we
cannot offer comments on this aspect.
Conclusion
The total estimated benefit to the developer, representing either a direct cost to the
City, or lost income is as follows:
Parkland Dedication
Development Charges
Deferral of $700,000
Deferral of over $700,000
Total Benefit
$132,355
112,476
178,000
31,132
$453.963
Any financial decisions favouring the developer, especially those involving development
charges, will have to be made up by an increase in property taxes as the majority of
these items affect the Development Charges Study approved by Council in 1999,
General
Pickering Hydro Development Charges applicable prior to August 1999 and no longer
payable save the developer approximately $145,000 using the 1998 amount.
Mr. Labbé's letter states that ".. .Our building will generate approximately $400,000 in
property tax revenue annually". If correct, the City's portion of this amount would be
approximately $154,000 using 2002 Tax Rates, the balance being shared between the
Region of Durham and the School Boards.
5.
6.
7.
8.
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 8
I would like to point out that while the letter contains several references to the need for
the City to agree to the requests in order to make the project affordable, and to provide
accessible units, oral communication from Mr. Labbé to the City's CAb's office
indicated that Options for Homes' marketing campaign does not take into consideration
the financial effects of any of the above mentioned reductions or deferrals. This would
seem to indicate that favourable consideration by the City would not have any financial
effect on their proposal. This needs to be clarified.
Finally, the foregoing is subject to review and revision as discussions continue, more
details become known and I become more familiar with this matter. I must caution that
our current financial climate within the City's operations make granting financial
concessions a matter that requires serious consideration. .
Attachments:
1.
2.
3.
4.
Location Map .
Letter from Options for Homes dated August 23, 2002
Letter from Deltera Inc. dated August 29,2002
Letter from McLevin Co-Operative Development Corporation dated September 3,
2002
Information Flyer/Letter dated July 10, 2002
Options for Homes 'Frequently Asked Questions'
Letter to Deltera Inc. dated September 11, 2002
Letter from Options for Homes dated September 16, 2002
Report CS 31-02
Date: November 13, 2002
Subject: Tridel/Options for Homes Development Final Phase
1200 The Esplanade North (East of Millennium Building)
Page 9
Prepared By:
Endorsed By:
K
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Neil Carro-
Director, Planning & Development
--~~ ~.. -c"..
Gillis A. Paterson
Director, Corporate Services & Treasurer
Approved By:
Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering ~ Co it
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DATE NOY. 7, 2002
eS/li/2602 89:45
4168671743
OPTIONS FOR HOMES
PAGE 62
ATTACHMENT#';¿ TO REPORT # (:5 ;JI-():J.
~. for Homes
The K", to Home Ownership for .Everyone
August 23, 2002
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, Thomas J. Quinn
Chief Administrative 'Officer
Planning & Development Department
One The Esplanade. .
Pickering, ON
LIV 6K7
Re: Municipal Assistance with the :Development of the Condonlinium at 1200 TIle
Esplanade North o~ behalf of our client, the MeLevin Corporation
Further to our severa! conversations~ I would confinn that we are requesting, on bebaif of our
client. the McLevin Corporation, municipal assistance in several ways to make our development
mor~ effective. and accessible to potential purchasers with ~oderatc incomes.
First and foremoSt. we would ask that the site be designated a revitalization area for the purposes.
of making the building eligible for homeowner grants that will soon be available to p~hasers in
Ontario. This grant wiU be between $6-81000 and available to purchasers, whose incomes are
below the 60th percentile ~or Pickcring~ who are currently rentirig and buy in a. revitalization axea. .
I have not seen a definition for 'revitalization area' ,but I am sure it would apply to a piece of .
pFoperty that is an undeveloped hole in the middle of a fully developed neighboumood;
, .
Secondt we wou)d request that the City ofPickerlng agree to defer $700,000 of its mÙnicipal fees
and levies in order to allow the Corporation to help 8-12 households, with physical disabilities
and requiring.care, to purcháse in the building. This, as you know, is a group of individuals with
limited income who can beneñt significantly from the. ability to design units to meet their needs
prior to the stan of construction. .
The deferred funds would be us~d to help people with their down payments to make th~ units in
. the building afforda.'bl~ at y~OUS income levels. .
The deferred :funds would be repaid when the suites are resold so that the affordability would last
for one occupant but the accessibiiity changes to the suites would be pennanent.
468 quæn Street EtJSt.l.Dwer Levell, p.o. BoX 28, i1n'QlItO, Onttttio M5A. lIT .
rei: (416) 867-1SO¡. fax: (41{j) 867-174.3 . website: oprions.icoÌ11m.ca . e-rnaJJ: oplionsll9icomm.ca
C~!¿~f~~~¿ c=:~~
4158571743
OPTIOí'¡S FOR f-'DM=:5
PAGE 03
Thoma Quinn
Avgust23,2002
I"age 2 .
The :repayment of the deferrals would be guarante~ by Home Ownership Alternatives Non-
prò.iit Corporation (BOA), a company that will hold $4, 700~OOO in mortgages vvith respect to this
site. They will also agree: to a repayment schedule that will pay a minimum of $100;000 per year'
starting five years after registration. of the condominium and running for eight and om~-ha1f
, years, thus guaranteeing a 21 % rate of return. 1 b~ve incJuded a copy of the cunettt repayment
rate on other developments completed to date as confumation that the funds will 'be available as
, required.
. T'hird, and critical to the success of our development. is a request that the City' defer the
. collection of the balance of all fees and levies over and above $700.000 until ërlter the Closing' of
. the'condominium. Once again, BOA wou1d provide its cozpOTate guarantee as to the payment of
'these funds. The importance to the development is tha~ because the Corporation is a non-profit,
it needs ~elp coming up with the equity. required by its lenders to provide its construction
fi~cing~ Municipal deferrals) such as those requ(;:!stcd here and pro~ided on our last
deyelqpment, by th~ City of Toronto, are an important part of aohieving the financial
requirements set by our lenders... ..
It is important to not!:: that our builCiing will generate approximately $400~OOO in property tax
revenue annually. The sooner this begins, the better it is for all involved
We believe veri strongly that the requests contained in this letter are reasonabl=, given the
housing crisis that we are aU trying to address as effectively as possible. It will also allow for the
creation of a bui1ding that will address longstanding neighbourhood issues. Specifically this
bui]ding and this neigbbourhood is the best place in Pickering to provide: units designed to
accommodate individuals with aocessibì1ity issues. lithe municipality supports our request,
instead of producing two or three accessible units. we will be abl~ to produce Ai sufficient nwnber
to provide the numbers needed to support fu.11-time attendants. Attendant care is critical to
maximizing the effectiveness of accessible units.
We would request ~ :m~eting with the appropriate individuals so. that we can discuss. these
requests furth(;:!t' and provide the information )rou need tobrlng them tc? a. successful conclusion.
Yours truly,
~.~/
Michel Labbé
President
ML~sn
enol.
cc: Elio Zoffranieri
B9/11/2002 09:45
4168671743
OPTIONS FOR HOMES
19~ for Homes
PAGE 04
The: Key to Home Ownership for Everyone
Repâyment Experience on Other Developments
St. L,awreoce (70 Mill Street [95 ~Q])
Closing (September: J 998)
,Voluntary 7
'Rental 2
1999
Sale
Voluntary
Rental
2000
Sale
Voluntary
2001
Sale
Voluntary
Rental
2002 (April)
Sale
Voluntary
Total
Sale
Volunta.rjr
Rental
-
5
1
5 .
-
:;
'2
5
'2
1
4
3
-
17
15
-.!
9
11
. 5
8
7
40 (42%)
ParHament Square (3.9 Parliament Street lIS] QuitsD
Closing (April 2000)
Voluntary 45
Rental -L
. 49 (27%) ,
468 Queen Stlæt Ei13t, lower-Level2, p.o. BOX28, Toronto, OIItorio MSA 117
' let. {4161 (lõ7-!5fJl" fa;c (416) 867-1743.. websJte: optfons.k:omm;ca. e-maJJ~aptions@icornm.Ctl
--,--,~ww~ U~,4~
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Alternative¡¡ Mort¡ap R,epaYØ1Ol1.t
JIÙyZ3,2002
Pase.:!
Re1nainder of2000
Volun~ . . .. ~
Sale 1
-
2001
Voluntary .
Sale
2002 (May)
Voluntary
Sale
Total
Sale
Voluntary
Rental
3
-!
...!
13
50
4
-
MID Street (80 MiU Street [144 o:nits]).
Closing (May 2002)
Sale
Voluntary
Rental
Remainder of 2002
Sale.
Total
Sale
Voluntary
Rental
1
43
2
1
2
43
2
OPTIONS FOR HŒ~ES
PAGE, as
3
11
4
67 (37%)
46
1
47 (32%)
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f,IRANSIT ECON, DEV;
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Deltera Inc.
4800 Dufferin Street
Toronto, Ontario M3H 5S9
Telephone: (416) 661-9290
Fax:: (416) 661-0978
Internet: www.tride!.com
August 29, 2002
Mr. Tom Quinn City Manager
City of Pickering
Picketing Civic Complex
One the Esplanade
Pickering, Ontario
L 1V 6K7
,,'-
Dear Sir:
. .
Re: Request for Deferral and ~eduction of Cash-in-Lieu for Parkland dedication Fees
Final Phase - McLevin Corporation .
Further to a meeting of May 3' 2002, with yourself, His Worship Mayor Wayne Arthur,
Mr. Mike Labbe.of-Options for Homes. Mr. Tony More crf our offiee, Mr. Neil Carrol of-
your office and myself, this letter shall serve as a formal request fl?r both deferral and
reduction of the cash-in-lieu of parkland dedication requirement to be paid by the
developer using the same formula us~dfor the Millinium building, being 1000 The
Esplanade'. .
The deferral will be more particularily set out in a separate letter being forwarded
directly to you through Mr. Labbe wherein he wiJ! be requesting a deferral for other
fees and charges such as Development Charges, Building Permit Fees etc~
Trusting the aforementioned is ~ufficient for you to commence the necessary process
ami should you rl:it¡uire additional information or wish to discuss this matter further,
please contact the writer.
We would like to take this opportunity to thank you in advance for your favourable
consideration of this matter. .
r:
Efio Zoffranieri
Sr. Manager Planning Services
M..mh..r "of .,.h... Tþi!>'\CI" r"--,.-
\39/11/2002 89: 45
4168671743
OPïIONS FOR HOMES
PAGE 86
, "
MCLEVIN CO-OPERATIVE DEVELOPMENT CORPORATION
468 Queen Street East, Lower Level 2, fI.C: Sox 28 Toronto, Onterio M5A 117
Tel: f416) 867-1501 Fox: (4.16) 867.1743 '
September 3, 2002
. AnACH¡V¡Et~T#~ TO REPORT#~-o..)
Thoma.9 J. Quinn .
Chief Administrative Officer
Planning & Development Department
One The Esplanade
Pick.ering, ON
LIV 6K7
Dear Mr. Quinn:
Re: Vpdåte on 1200,Tbe Esplanade Nortb
I am pleased to provide the following update on our progress with fC$pect to the condominium
development at 1200 The Esplanade North.
We have now had four set!\) of presentations to the neighbo1U'S and Durham residents. Our first
pair of pres~tations was on July 27 and WI:1S advertised exclusively to the residents at Discovery
Place. Ncady 120 people attended and half were there to get additional infonnatlon about the
develop:m~t. . .
The other three sets of presentations, held on August 10, 17. and 24, were advertised first to
Pickering residents, then to aU of South Durham. In all, we received 81 $lOO"deposits. We
CUlTentlyanticipate generating 25 sales .from these deposits.
. Based on our previous experience, w~ would anticip~te a s2gnÜiéant loea! demand far OUt suites.
To date our cxþcrience with this development bM been v~ satisfying.
We will keep you aware of our progress throughout the fall. Should you wish specific details,
please call me at (416) 867-1501, extension 226.
y otU'S trúty,
" /
~~"
Michel Labbé
Development Consultant
ML:sn
.,
.,
. ,
.,-- 'AC ¡MENT # ...éL TO RS'ORii # C5 ~ ~ "
~ é7~forHomes ,-.11 . f ~. ...
~ ' The Ko/ tD Hamr: Ownen;hip for Everyone to. .
~ ~ '
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468 Queen Street East. P.O. Box 28, Toronto, ON, MSA 117
Phone: (416) 867-1501, Fax: (416) 867.1743
, -
. .
¡ ,
July 10, 2bo2
1 5 2002
.,'".
Dear Millennium Place Resident:
Options For H~mes was establisned 10 years ago with one goal in mip.d. We wanted to offer
' quality housing at attractive prices. We have devd6ped five condominiums to date in the
Greater Toronto Area, which .have achieved this goal. ' Our next building will be COllstructed on
' the vacant land at, 1200 The Esplanade North. This site represents an unprecedented opportunity
to fii1ish the development of your complex with a high quality condominium.
..
Municipal officials have asked that we offer this option to own in this final phase to the
immediate neighbolirhood, their mends and relatives. TIris is your opportunity to be the first in
1IDe for tbese homes at an eJÇtremely attractive cost price~
,Our marketing' approach is respectful and l°'o/-key. At our ftee presentations, our sales
consultants will pro'vide all relevant information to enable you to make an informèd decision. By
using a low cost, ftenzy-ftee approach, we save on expenses and pass these sa":Ïngs on to' you.
To date all of our condominiums have had owner occupancy levels above 95% and have been
positive additions to their respective neiÏghbourhoods. There is no better way: of continuing this
achievement than targeting those ~ho live next door -, or their mends ànd relatives. .
Our condoÎDiDiums start at:
$ 87,596 Studio ' 472 $ 801.46
98,640 one-bedroom 540 905.30
126,900 one-bedroom' 700 1,166.42
' 139,500 two-bedxoom 750 1,275.80
160,200 two-bedroom 900 '1,477.88
"'Based on 5% down, includes P&I (five.year term), taxes, un1ities, amenities and mamtenance.
*Price does ;pot inc,1ude Alternative Mortgage. Parking starts at $5,500 .
You must register to attend one of our fIrst ftee presentations scheduled for: Saturday, July 27,
and August 10, 2002. . Please pass this informaTIon on to friends and relatives. To register,
please call (416) 867-1501, or visit our website at www.options.komm.ca. We look forward to
seeing you there.
Yours truly,
~
h~~
Michel Labb-é
President'
ATïACHMENT#...k._TO REPORT # C~ 3/-0';¿
&~ . for Homes
The Key to Home Owner~p for Eve1J1one
FREQUENTLY ASKED QUESTIONS
'. . ,
What is Options For Homes Non-Pr6fit Corpora~ion (Options)?
Options For Homes is a pr:ïvat~"not for profit, corporation led by deveiopment professionals who'
obtain. access to residential land and pre-sells ownership homes to low- and moderàte-income
households. It co-ordinates the design and develop1Ìient of buildings on these lands with the goal
of keeping all costs to a mín:imum on behalf of these households.
For whom does Options work?
The initial purchasers of the condominium homes form a Co-operative Housing Corporation for
whom Options co-ordinates the development. This Corporation acts as the developer of thè
buildings and retains Options as their Development Consultant.
How is ~ptions paid?
Options receives a fee for its services which is included in the purchase price of the
homes. . .
Does the Options' concept require government subsidies?,
NO. The Options' conc~t has been ~esigned to reach low- and moderate-income households
without any form of government subsidy. It has also been designed to focus traditional real
estate market mechapisms directly at the issue of affordable housing in such a way as to be more
and more effective over time. '.
What has Options achieved sO far?
. ,
. To date Options has five condominiums completed or under construction.
1.
The Weston Village Co-operative has successfully developed and sold a $6
million, 42-unit, townhouse condominium at Lawrence Avenue and Weston Road in
Toronto. Prices for the three-bedroom townhouses ranged :ITom $128,900 to $152,000.
The homes were affordable to households with incomes as low as $32,000 per year.
, , .
468 Queen Street East, LowerLeve12, P.O. Box28, Toronto, Ontario MSA 1T7
tel: (416) 867-1501. fax: (416) 867-1743 . webSÌte: options.lcomm.ca . e-mail: options@icomm.ca
Page 2
Frequently Asked Questions
2.
The S1. Lawrence Co-operative has successfully completed and sold a $17 million, 95-
unit, apartnient condominium at Parliament and Front Streets, a 15- minute walk .:trom
downtown Toronto. It has one-, two- and three-bedroom suites that sold at $50,000
below the cost of other newlY. çopstructed condominiums in the same area. The suites
were sold to households with incomes as low as $16,000 per year.
3.
The Parliament Square Co-operative is a 181-unit condominium, one block .:trom the S1.
Lawrence building. It is a $32 million building and offers attendant care services to 12
purchasers who require care because of personal mobiIityrestrictions. It has been able to
offer bachelor suites for as little as $65,000. Several owners are in an income bracket
below $15,000 per year. The building was fully sold as of November 1999, four months
before final occupancy
4. .
The Mill Street Co-operative is a 144-unit building completed and occupied at the end of
2001. It has a value of $27 million and is located next door to the S1. Lawrence
condominium.
5.
The Shermount Co-operative started the construction of its $70 million" 430-unit
townhouse and apartment condominium at 650 Lawrence Avenue West in March of
2001. The City of Toronto agreed to defer the payment of its development charges,
levies and permit fees in order to allow the Co-operative to accommodate fifteen (15)
low-income seniors in the building.
Options has three clients cun-ently developing their condominiums.
1.
2.
3.
The Pentland Co-operative is selling a 208-unit apartment building east of the Pickering
Town Center.
The Queen Street Co-operative is developing a 282-unit townhouse and apartment
condominium at the comer of Queens Plate Drive and Rexdale A venue in north
Etobicoke.
The McLevin Co-operative is developing a 456-unit townhouse and apartment
condominium in the Malvem Town Centre in northern Scarborough. .
How does Options prevent the flipping of its homes for quick profits?
Because Options cuITently makes homes available at 10-15% below market value and will offer
even better reductions in the future, all homes carry a second mortgage on title that equals the
difference between the cost price and market value. These mortgages are payable upon resale
and go into an equity pool that must be used to develop other similar proj ects. This allows
owners to sell at any time and benefit from a market appreciation only on the funds they invested
themselves. There has be'en $1.9 million in cash and $13 million in mortgages generated on the
first five buildings (see the attached Co-operative Deferral example).
Page 3
Frequently Asked Questions
For whom can Options provide homes?
Options' concept can provide homes for all income groups and household situations except the
hard-to-house, or individuals who currently dq not have the skills to care properly for their
housing. More specifically, Options enables individual or households with limited resources to
own homes by increasing the amount of their Alternatives Mortgage, thereby adding to their
downpayments. The third wave of Options projects should be offering 20-30% of the homes to
households below Toronto's poverty line.
Why can. Options do what no one else has been able to do?
By focusing exclusively on affordability, Options brings a unique perspective to the housing
market (see the attached coSt comparison chart). This allows us to eliminate co$tly amenities,
vastly reduce marketing costs and eliminate overall development profits. An average reduction
of $40,000 per suite has been achieved to date in the City of Toronto and $20,000 in smaller
municipalities.' .
Why is Options talking to government agencies?
Left on its own, the Options' concept will take AO to 50 years to become a successful national
source for affordable housîng. Given proper policy support and infra-structure development
support, low- and moderate-income Canadians can benefit from this concept in a significant way
(10-20,000 units per year) within 5 years.
Is Options willing to share its knowledge?
YES. Options is not interested in becoming a national company with offices.in each major urb~
area. Instead we would prefer to train and monitor several non-profit organizations in the
delivery of the Options' concept in their respective regions. If the opportunities were sufficient
in any given region, Options would train several organizations. To date, OptIons is working with
other organizations in Ottawa, in the Kitchener Waterloo region of Ontario, and in the
Vancouver area of British Columbia.
'OtJ¡ 0#
ATTACH M ENT#-1- TO REPORT#Q.3I-o~
Pickering evil: CO]
, One The Espl¡
Piclœring, OJ
D
Ll1
Direct Attess 9D5.42C
cltyofpickerlnE
PICKERING
OFFICE OF THE CHIEF ADMINrsTRATIVE OFFICER
Deparlment 905.4,20.4648
Fac:shni1e 905.420.6064
c:ao@clty.piclœring.on.ca
September 11, 2002 ,
EIio Zoffranieri
Deltefí~ Inc.
4800 Dufferin Street
Toronto, ON M3H 5S9
Subject:
Tridel/Options for Homes Development of Final Phase'
East of 1000 The Esplanade (Millennium Building)
City of Pickering
,File: PO 1000
Thank you for yoÙr letter of August 29, 2002, respecting the 'request for deferral and
reduction of cash-in-iieu for parkland dedicaUof1 fees, final phase-McLevin Corporation'.
The City looks folìNard'to the completion of a quality development Qn this important
block' within ou~ downtown. Your letter provides a specific proposal for, a reduction in
cash-in-lieu of parkland .payment and makes reference to a forthcoming request from
Mr. Labbe of Options for Homes for deferral of parkland payments and other charges
such as development charges, building perr:nit fees, etc. '
, ,
' ,
,While I understand the reasòns for Tridel's' and Options for' Homes' request for relief in
, variouspäyment requirements, I would be very concerned if the current marketing being
conduç::ted by Options for Homes; including unit prices, is in any way dependent on
financial relief being' approved by Pickering Council. To date the City has not provided
an indication of its acceptance of any redwçtio"n or deferral of payments related to this
apartment development. Our meeting of May 3', 2002 was a general discussion,. and it
was concluded at that meeting that a City, position on any reduction or deferral of
payment,s could only be determined following a definitive proposal by Tridel/Options for
, Homes, and full consideration by Cquncil. \l\(hile ¡ can advise of my g,eneraJ support toa
possible reduction in parkland' cash-in-lieu payment based 00 the same ~ormu¡a used
for the Miflennium building, this" and other requested reductions/deferrals require t~e
formal approval of Pickering Council. It would be inappropriate to secure pfjbIic interest
'in this development based on potential financial reductiqns/deferrals that have not been,
formally approved. If any such assumptions have been included in the marketing ofthis
project, those representing the project will be on their own to deal with any public
concern, should approvals not be secured. '
Eno ZofITanieri
Tr-idellOptioris for Home$
Development of Fina! Phase
, L
September 11,20D2
.' .
Page 2,
,Upon receipt' of details from Mr. Labbe respecting proposed deferral? in fees and
charges, f will instruct appropriate City staff to review thè request and report to me
directly,' wiH then bring the matter.forward for CouncU'sconsideratiori, Again, I look.
forward to working, with 'you in the col11.pletion of this final phase of dev~Iopment
Yours truly
"
.....--
. .
T ~9:lr
Copy: .
Mayor Arthurs
Members of Council, , '
Directo'r', Corporate Services & Treas~rer
Director, Operations & Eme~gency Services
Director, Planning & DèJeloÞ.ment .
Solicitor for the, City
Michel Labbe (Options. fòr Homes)
CiiJ¡.,a#
Þ:rrACHlvlEl"¡T # -L ro REPORT#~ I ~ 0.;1
Pickering Civic Complex
One The Esplanade
Pickering, Ontario
Canada
LlV6K7
Direct Access 905.420.4660
cityofpickering.com
September 16,2002
Michel Labbé
President
Options for Homes
468 Queen Street East
Lower Level 2
P.O. Box 28
Toronto, ON M5A iT?
Subject:
Condominium Development at 1200 The Esplanade North
McLevin Corporation
City of Pickering
- File: PO 1000
Thank you for' your letters dated August 23, 2002 and September 3, 2002, both of which were
received at my office by fax on September 11, 2002. I have forwarded copies of these letters to
appropriate City Staff for review and comment back to my office. I expect that a meeting will be
arranged between yourself and City Staff in the near future to allow for further discussion of your
proposal.
I have attached for your information, a copy of my September 11, 2002 letter to Elio Zoffranieri
of Deltera Inc., to which you were copied. The letter outlines the fact that to date, the City has
not approved any reductions/deferrals of payments related to this project and expresses my
concern if marketing of the project has included any dependency on financial relief from the
City. While City staff will give full consideration to your proposal, any financial relief or area
designation will require formal Council approval.
Yours truly
TJQ:lr
Attachment
Copy:
Mayor Arthurs
Members of Council
Elio Zoffranieri (Deltera Inc.)
Director, Corporate Services & Treasurer
Director, Operations & Emergency Services
Director, Planning & Development
Solicitor for the City
r..