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HomeMy WebLinkAboutCS 91-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 91-05 Date: November 28, 2005 From: Gillis Paterson Director, Corporate Services & Treasurer Subject: Development Charges Complaint Sheridan Chevrolet Oldsmobile Cadillac 1800 Kingston Road, Pickering Recommendation: 1. That Report CS 91-05 of the Director, Corporate Services & Treasurer be received; That Council confirm the development charge in the amount of $49,671.96 applied to the applicant, Sheridan Chevrolet Oldsmobile Cadillac, for property municipally known as 1800 Kingston Road, Pickering; and That the applicant be so advised. Executive Summary: To respond to the Development Charge Complaint as filed by Malone Given Parsons Ltd on behalf of Sheridan Chevrolet Oldsmobile Cadillac on August 25, 2005 with respect to development charges applied to the business expansion for property municipally known as 1800 Kingston Road, Pickering. A notice of hearing of this matter was issued in accordance with Section 20 of the Development Charges Act. Financial Implications: under By-law 6349/04. Development Charges in the amount of $49,671.96 applied Background: Sheridan Chevrolet Oldsmobile Cadillac, the auto dealership located at 1800 Kingston Road has lodged a development charge complaint in accordance with the Development Charges Act with respect to the development charges applied to an expansion to the existing business. Report CS 91-05 Development Charges Complaint November 28, 2005 Page 2 Under the Development Charges Act, the complaint must contain and allege, as a reason for the complaint, one or more of the following' a) b) c) d) the amount of the development charge imposed was incorrectly determined; whether a credit is available to be used against a development charge; the amount of the credit or the service with respect to which the credit was given was incorrectly determined; and or there was an error in the application of the City's development charge by-law. The applicant advises that the complaint has been filed on the basis that the amount of the development charge was incorrectly determined as it applies to commercial space expansions, which do not generate new employment or demands on the City services. At the time of the application for the building permit, development charges were calculated and payable in accordance with the City's Development Charges By-law 6349/04, in the amount of $49,671.96. The development charge complaint has been reviewed by the Chief Building Official and the following comments are noted. The automobile sales and service facility addition is subject to a non-residential development charge in the amount of $49,671.96 under By-law 6349/04. The complaint appears to concern the fairness of applying a development charge, since, according to the applicant, this construction may not result in any site specific additional employment or City service needs. The Chief Building Official advises that this is not a consideration in the determination of the amount of any City Development Charge, therefore the development charge applied stands. Based on a review of the development charge complaint by the Director, Corporate Services & Treasurer and the Chief Building Official, the development charge applied is correct and applicable in this situation. Attachments: 1. Development Charge appeal as submitted by John P. Genest, Malone Given Parsons Ltd., on behalf of Sheridan Chevrolet Oldsmobile Cadillac 2. Notice of Hearing issued in accordance with the Deve/opment Charges Act. CORP0227-07/01 O0 ~3 Report CS 91-05 Development Charges Complaint November 28, 2005 Page 3 Prepared By: Approved / Endorsed By: Debi A. Bentley ~'~ ..... City Clerk Gillis A. Paterson Director, Corporate Services 7 Treasurer Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City ,,,'~ ,'~/ '/ ~' ,4' " Th,,e(n~ 3. Ouir~, Chi~_.~/AOmini~~.~... CORP0227~07/01 PARSONS LTD 007 Aug,mst 23'd 2005 DiViSION 140 Renfrew Drive, Suite 201, Markham Mayor and Members of Conncil The Corporation of the City at'Picketing One The Esplanade Pickenng, ON L1V 6K7 Attention: Debi Bentley, (7it)' Clerk Dear Mayor Ryan and Members of Council: Ontorio, Canada L3R 6B3 Tel: [905) 513-0170 Fox: (905)513-0177 E-mail: nngpgen(~mgp,ca 05:1476 Re: Development Charges Co~nplaiut and Hearing Request Pursuant to Section 20 (I) Ca) of the Development Charges Act Sheridan Chevrolet Olds~nobile Cadillac Expansion This letter is submitted on behalf of Sheridan Chevrolet Oldsmobile Cadillac (%heridan"), the auto dealership located at 1800 Kingston Road in the City of Pickering. Its purpose is to lodge a complaint about, and request a heanng to seek relief froln the Development Charges ("DC's") being charged for an expansion of the dealership, pursuant to Section 20 (1) Ca) of the Development Charges Act. Background Sheridan has been in business in this location since 1977 and today employs some 60 people. Under the terms of its dealership agreement with General Motors, Sheridan must build new auto display and set'vice space by October 2005, to a standard defined by Cadillac's "Vision 2000" progl-am. If not completed by that deadline and to that standard, the dealership will lose the ability to sell the Cadillac line of vehicles. In the absence of that mandatory improvement, Sheridan would have no intention or need to expand its current facility. The expansion will comprise some 20,77'7 square feet of new display, sales, service and administrative space. We understand creation of this new space is less expensive than retrofitting the existing building, which will be retained to house the used car sales function and the body shop. The new space also preserves 6 jobs that would have been lost under the renovation scenario, which would have replaced the body shop with a service drive-through. Thc expansion will house no new employment and will generate no new demands upon City roads, yet application lbr a Bnilding Permit (dated June 13th 2005) has triggered a charge for $115,074.21 in 1)(?'s, $49,671.96 of which is the City of ['ickering portion. 008 August 2? 2005 Page '' ' ' Complaint The Complaint being lodged on Sheridan's behalf is that the amount of the development charge was incorrectly determined as it applies to commercial space expansions which doe not generate new employment or demands on City services. Reference to the City of Pickering 2004 Development Charge Background Study shows that DC's for non-residential uses are predicated upon employment growth, converted to new non-residential floor space at assumed average conversion factors. The t:actor for commercial space is 400 sq.ft, per new employee [from Appendix page A-6 in the Background Study]. On this basis, Sheridan is assumed to be generating and housing 52 new jobs fi-om its 20,777 sq.ft, expansion, vs. the zero new jobs actually anticipated. The magnitude of this diflbrence makes it clear that the amount of the DC has been incorrectly determined as it applies to such expansions. It is fundamentally inequitable to be applying a $49,000+ charge in these circumstances. Sheridan is not trying to shirk its obligations to the commnnity, but does want fair treatment. You will recognize that this expansion will also result in an increased property valnation, which will increase the company's taxes payable to the Region and City, again without an increase in demand on capital or operating services. We request a Hearing into this Complaint, with notice of same to be given to the undersigned at the address provided on the first page of this letter. Thank you fbr your attention to this matter. Yours very truly, MALONE GIVEN PARSONS LTD. ///. /; /John P. Genest, BES, MBA I/ Partner cc: J. Gazarek, Sheridan Chevrolet Oldsmobile Cadillac A. Allison, City Solicitor PICKERING IN THE MATTER OF Section 20 of the Development Charges Act; AND IN THE MATTER OF a written complaint by Sheridan Chevrolet Oldsmobile Cadillac dated Au§ust 23, 2005, in respect of the development charge imposed by the City of Pickerin9 on property municipally known as 1800 Kingston Road, City of Pickerin9. NOTICE OF HEARING The Executive Committee hereby appoints Monday, the 28th day of November, 2005 at the hour of 7:30 pm in the Council Chambers, Pickering Civic Complex, One The Esplanade, Pickering, Ontario, for the hearing of the above complaint and to allow the complainant the opportunity to make representations regarding the complaint. If you do not attend or are not represented at this hearing, the committee may proceed in your absence and you will not be entitled to any further notice in the proceeding. A copy of the report will be made available to you at the Office of the Clerk at least two business days before the hearing of the complaint or at such earlier time as the City may advise: The proceedings of the committee in relation to the complaint shall be governed by the Development Charges Act and upon the conclusion of the hearing conducted by the Executive Committee, it may indicate the recommendatior~ it will make to Council or it may reserve its decision. DATED at Pickering, this 11tr' day of November, 2005. Debi A. Bentley City Clerk Copy: Chief Administrative Officer Director, Corporate Services & Treasurer Director, Plannin9 & Development City Solicitor Chief Building Official City Clerk File Copy