HomeMy WebLinkAboutFIN 29-13 •
(llq 00 A Report to
Council
PICKERING Report Number: FIN 29-13
Date: December 9, 2013
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From: Paul Bigioni
Director, Corporate Services & City Solicitor
Subject: 2013 Development Charges Background Study
Recommendation:
1. That Report FIN 29-13 of the Director, Corporate Services & City Solicitor be
received;
2. That the Development Charges Background Study (Background Study) dated
October 25, 2013, as amended, prepared by Watson &Associates Economists
Ltd. as required under Section 10(1) of the Development Charges Act, 1997 (DC
Act) be approved;
3. That the Residential Development Charges for the unit types as included in
Table 1 below be approved to be imposed on a uniform basis effective January 1,
2014:
Table 1
City of Pickering Development Charges
Per Residential Dwelling Unit by Type
Effective January 1, 2014
Apt. Apt.
Dwellings Dwellings
Single or with 2 or with Less
Semi- More than 2 Other
Service Detached Bedrooms Bedrooms Dwellings
Development— related Studies 182 96 71 144
Fire 599 317 233 475
Parks Development & Trails 1,645 870 638 1,305
Indoor Recreation Facilities 3,427 1,812 1,328 2,718
Library 825 436 320 654
Operations Facilities & 552 292 215 437
Vehicles
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Report FIN 29-13 December 9, 2013
Subject: 2013 Development Charges Background Study Page 2
Transportation -
- Seaton - - - -
- Rest of Pickering 5,072 2,682 1,968 4,023
Stormwater Management 387 204 150 307
Total
- Seaton 7,617 4,027 2,955 6,040
- Rest of Pickering 12,689 6,709 4,923 10,063
4. That the Non-Residential (Commercial, Industrial and Institutional)
Development Charge be approved to be imposed on a uniform basis, as set out
in Table 2 effective January 1, 2014;
Table
City of Pickering Development Charges
Non-Residential Charges
Effective January 1, 2014
Non-residential per Prestige Employment
Sq. Ft. of Total Floor Land in Seaton per Net
Service Area * Hectare
Development— related Studies 0.08 2,508
Fire 0.26 8,119
Parks Development & Trails 0.14 4,235
Indoor Recreation Facilities 0.28 8,826
Library 0.07 2,123
Operations Facilities &Vehicles 0.24 7,437
Transportation —
- Seaton - -
- Rest of Pickering 2.50 -
Stormwater Management 0.17 5,453
Total
- Seaton 1.24 38,701
- Rest of Pickering 3.74 N/A
* Does not apply to prestige employment land in Seaton
Report FIN 29-13 December 9, 2013
Subject: 2013 Development Charges Background Study Page 3
5. That the Background Study, inclusive of the proposed capital programs contained
within it, be approved as an indication of Council's intention to ensure that
increases in the need for services attributable to anticipated development are met,
in accordance with paragraph 3 of subsection 5(1) of the DC Act.
Indexing
6. That the Division Head Finance & Treasurer be directed that residential and non-
residential Development Charges shall be indexed annually on July 1 each year,
commencing in 2015, by applying the annual change in the Statistics Canada
Quarterly "Construction Price Statistics" to March 31 of each year;
Exemptions
7. That all exemptions be as required under the DC Act and as defined in the
proposed By-law;
Transition Provision
8. That the development charge applicable to any complete permit applications
received prior to January 1, 2014 and issued by April 1, 2014 will be based on the
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rate that applied immediately prior to January 1, 2014;
Administration
9. That the City continue the Reserve established for the City's share (ie. the non-
development charge portion) of the costs of services included in the Development
Charges Study and that contributions be included in the Annual Current Budget for
consideration by Council;
10. That the Development Charges By-law originally proposed in the October 25, 2013
Background Study has been modified since the public meeting on November 11,
2013, but that Council confirms that no further public meeting under section 12 of
the Development Charges Act, 1997 is necessary as a result;
11. That the City Clerk be instructed to undertake the By-law passage notification
requirements in accordance with the DC Act and O.Reg 82/98;
12. That the Development Charges By-law attached to this report be approved;
13. That professional fees incurred in 2013 in relation to the Seaton Development area
in the amount of$300,000 be funded as follows:
a) The sum of $283,725 from the Development Charges (DC)-Studies Reserve
Fund;
b) The sum of$16,275 from property taxes; and .
14. That the appropriate staff of the City of Pickering be authorized to give effect
thereto.
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Report FIN 29-13 December 9, 2013
Subject: 2013 Development Charges Background Study Page 4
Executive Summary: As required under the DC Act, a complete review of
development forecasts, servicing needs, financial implications and financing
requirements has been undertaken by the consultant Watson &Associates Economists
Ltd., and City staff. This review has concluded that significant capital expenditures will
be required for future development, including Seaton.
As permitted by the DC Act, financing for required capital projects will come from a
combination of the following:
(i) from development charges (DC's), to the extent that projects are needed
because of development-related growth; and
• (ii) from the tax levy, or from any other available source of revenue, to the extent
that projects are needed to service existing development.
The DC rates set out in the Background Study are calculated on a cost recovery basis
and represent what is allowed under the DC Act. The increase over current levels is
primarily the result of revised growth forecasts and updated capital programs.
The proposed increase in the residential DC is $2,494 for a residential detached unit.
This amount is slightly higher by $61 than the October 25th DC residential rate because
it includes the "Whites Road Multi-use path" project. This project is being added
because it links between two other paths and supports the Region's cycling network.
The Background Study identifies a proposed increase in DC's of 24% on a single
detached home and a reduction of 8% for non-residential space. This increase is
mainly due to the following: more detailed replacement cost analysis; updated benefit
to existing development deductions and inclusion of capital financing costs for Seaton
Fire Station One and Operations Centre. Even after adding Pickering's proposed
increase to Durham Region's recently approved DC, the new DC rate on a detached
residential unit would continue to result in Pickering having one of the lowest DC
rates among the GTA municipalities.
The proposed DC Background Study incorporates the principles of the Seaton Financial
Impact Agreement (FIA) approved by Council on October 28, 2013. The FIA requires
the Seaton landowners to pay the City-wide DC for all services except roads. The
Seaton landowners will be funding and building their own local roads and, therefore, are
not subject to the transportation charge applicable to the rest of Pickering.
The 2013 DC rates, as reflected in Recommendation 3 and 4 of this Report, will become
effective for all building permits issued after January 1, 2014 subject to the transitional
policy. Included in the DC By-law is a transitional policy which will ease the impact of
the new DC rates on developers. The transitional provisions specify that any complete
building permit applications received prior to January 1, 2014 and issued by April 1,
2014 will be subject to the old DC rate. This three month grace period is comparable to
what is provided in some other municipalities.
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Report FIN 29-13 December 9, 2013
Subject: 2013 Development Charges Background Study Page 5
The Chief Administrative Officer, the Directors and staff of all Departments providing
services for DC-funded development have been involved in the Background Study.
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Please note that the DC By-law maintains the form of the previous DC By-law, subject
to a number of"housekeeping" and clarifying amendments.
Financial Implications: The proposed DC background study includes a gross
capital program of$353.1 million of which $220.4 million is to be recovered from DC's.
The residual amount of$132.7 million consists of items such as the 10% statutory
deduction for soft services and the "benefit to existing" deduction mandated by the DC
Act.
The Background Study in its simplest terms is a growth-related capital budget. The DC
Act establishes the rules regarding the proportion of the cost of each asset class which
can be DC funded. The capital costs which are not permitted to be DC funded must be
funded from property taxes or other available services. Council should seriously
consider adopting a special levy starting in 2015, to fund the City Share costs of the DC
capital plan. Without a special levy, the City will have to debt finance a substantial
percentage of the cost of the capital projects. Even with a special levy, careful planning
and management of the City's finances will be required. Long range financial
planning and management must be a priority of Council and staff. Previous
Reports to Council, including Development Charges Study Reports, and annual budget
reports have addressed this issue.
The 2013 General Government consulting budget included costs associated with review
work related to Seaton in preparation for the 2013 Development Charges Background
Study. During the 2013 budget deliberations, Council expressed its support to recover
this cost, if possible, through the Background Study. Adoption of Recommendation 13
achieves this result.
Discussion: The 2013 Development Charges Background Study dated October 25,
2013 and amended December 9, 2013 contains complete details of all the calculations
of the proposed Development Charges.
Development Charges - Comparison of Pickering Proposed Rates with other
Durham Municipalities
Appendix E of the Background Study contains a comparison of Development Charges
in other municipalities as of June 1, 2013 Addendum. It is evident from Appendix E that
Pickering's DC rates are on the lower quartile in comparison to other GTA
municipalities. After taking into consideration the new DC rates, Pickering will still have
one of the lowest DC rates in the GTA area.
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Report FIN 29-13 December 9, 2013
Subject:. 2013 Development Charges Background Study Page 6
Non-Residential Development Charges
The non-residential charge has declined despite the fact that all capital asset
components are now included in the DC charge. This decline is due to the large
reduction in the City-wide storm water and roads charges. The reduction in these
charges results from the Seaton Financial Impact Agreement and does not reduce the
size of the City's capital works program.
The DC study is recommending employing a land area-specific charge for the prestige
employment land in Seaton. The Seaton prestige employment land DC rate is $38,701
per net Ha (1 Ha = 2.471 acres). This land area specific DC must be paid for the entire
parcel of land when the initial development occurs. The major advantage of using the
land area-specific charge is that it encourages build-out and discourages land banking.
From the City's perspective, this strategy should result in providing greater certainty
regarding development and corresponding DC recovery. In addition, it is anticipated
that this collection/payment strategy should advance construction timetables resulting in
additional property tax revenues. This also removes the entitlement to the 50%
industrial expansion exemption as no additional DC payment is involved in the case of
expansion.
The adoption of the land area-specific DC for the Seaton prestige employment land will
be consistent with the Region's water and sewer charge which is calculated on the
same basis. The upfront payment will be based on the entire parcel of land in each
case and should provide upfront cash flow for the both the City and Region to proceed
with the capital infrastructure; minimizing the amount of user rate funding for Regional
works or debt financing on the City's part. Other municipalities have been using the
land area charge for many years. Some of the most significant examples of this
practice are:
• Town of Markham City-wide hard service net hectare DC, as well as area-specific
hectare charges for 20 different development areas. In some cases more than
$1,000,000/net hectare. Markham has had these charges for many years.
• Town of Richmond Hill per net hectare charges for 11 significant development
areas. Markham has had these charges for many years.
• City of Mississauga charges $80,879 per net hectare City-wide for both residential
and non-residential development and has done so for many years.
• Town of Newmarket charges $12,850 per net ha for water and sewer in a 59.45 ha
development area and the City of Vaughan has a number of per hectare charge
areas covering water and sewer.
Meeting with Development Industry
A stakeholder meeting was held on October 16, 2013 with the building community to
discuss any concerns or issues that developers might have. Following this stakeholder
meeting, written submissions were received from the Durham Region Home Builders
Association, and the Building Industry Land Development Association (BILD). In
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Report FIN 29-13 December 9, 2013
Subject: 2013 Development Charges Background Study Page 7
addition, a telephone enquiry from BMA Planning Development was received.
Responses to questions and concerns raised are included in this report in Attachment 3.
Statutory Public Meeting - November 11, 2013 •
The DC Act requires at least one public meeting, and the City Clerk is required to give
at least twenty days notice of the meeting date. The public meeting was advertised in
the Pickering News Advertiser for four consecutive Wednesdays starting from October
16, 2013. In addition, notice of the Statutory Public Meeting was advertised on'the
City's website. The Statutory Public Meeting took place on November 11, 2013 during
the Executive Council meeting and no one in attendance commented on the City's
proposed DC Background Study. In addition, the City advertised that it would receive
written submissions regarding the DC Background study until November 22"d, and none
were received.
Financial Impacts
All projects included in the Background Study are prompted by the need to service new
development. This is generally greater in the newer, less serviced areas and less in the
older areas of the City. The more a project benefits new development, the more of its
costs can be recovered via DC's. It is the projects in the older, more developed parts of
the City that produce the most significant impacts on the tax levy, since a smaller
proportion of them is recoverable through DC's.
A typical project is funded through a combination of DC's (to the extent it is growth-
related) and the tax levy. To actually build a project requires the City to expend some
funds from the tax base. For this reason, the City contributes $580,000 per year to the
City Share DC reserve. Beginning in 2015, the annual contribution should be increased
using a cumulative step approach. Employing this strategy will reduce future years'
debt costs. The City should be contributing at least $3.0 million per year into this
reserve. More may very well be required in order to actually construct the projects set
out in the Background Study.
General
Recommendation 9 provides for the continuation of the Reserve established under the
1999 Background Study for the non-development charge portion of project costs, to
which contributions continue to be made, mainly from the tax levy. The objective is that
funds will be accumulated, to be available to pay the non-development charge share of
project costs (City Share) at the time a project is approved by Council. This should help
avoid undue upward pressure on the tax levy that can occur with uneven expenditure
requirements.
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Report FIN 29-13 December 9, 2013
Subject: 2013 Development Charges Background Study Page 8
Next DC Study
It is anticipated that Seaton construction (commercial and residential) will begin
sometime in 2015. The Seaton community will result in significant, ongoing changes to
the City's financial position. In order to reduce future risk and uncertainty as it relates to
Seaton, staff will be recommending that the next DC Background Study be revised and
completed in four (rather than five) years. Reviewing the City's capital program and DC
rates sooner than the five year period allowed by the DC Act will allow staff to continue
to "fine tune" the Seaton and downtown intensification growth-related capital plans.
Attachments:
1. December 9, 2013 Addendum to the October 25, 2013 City of Pickering
Development Charges Background Study
2. By-law Regarding Development Charges 2013
3. Response to Questions Raised by the Stakeholders
Prepared By: Approved / Endorsed By:
Stan Karwowski Paul Bigioni
Division Head, Finance & Treasurer Director, Corpora : - ices & City Solicitor
Recommended for the consideration
of Pickering C' Council
o Dee- 4, zo13
Tony Prevedel, P.Eng.
.9
Chief Administrative Officer
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ATTACHMENT#_L_TO REPORT#Fir? -f3
ta Watson
&Associates
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ECONOMISTS LTD.
DECEMBER 9, 2013 ADDENDUM
TO THE OCTOBER 25, 2013
CITY OF PICKERING
DEVELOPMENT CHARGES
BACKGROUND STUDY
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Plaza Three
101-2000 Argentia Rd.
Mississauga,Ontario
Canada L5N 1V9
Phone:(905)272-3600
Fax:(905)272-3602
e-mail:info @watson-econ.ca
www.watson-econ.ca
NOVEMBER 21, 2013
Planning for growth
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5
1
1 . SUMMARY
The changes that have been made to the October 25, 2013 City of Pickering Development
Charges Background Study are summarized below in section 2.12 which has been added to the
Executive Summary. Background Study pages that have been revised as a result thereof are
included in Appendix A to this Addendum and are noted as"Revised" in each case. The full by-
law, itself, inclusive of the amendments, is included as Appendix B. •
2.12 The following are the modifications that have been made to the "October
25, 2013 City of Pickering Development Charges Background Study"
following the November 11, 2013 Public Meeting:
a) .s.s.6(4) and definition 4(j) of the by-law were added to clarify that.
Live Work units are subject to the residential rates.
b) A project was added to the Transportation program on p. B-37
(Whites Road Multi-use Path, Finch Avenue to Seaton Boundary
(Bridge) 2014-2019 $990,000 gross cost, 10% Benefit to Existing
Development deduction). This project is part of the City's multi-
use path system and supports the Region's cycling network. Its
inclusion increased the Transportation DC for the Rest of
Pickering by $61/single detached unit (and proportional increases
for other housing types) and the non-residential DC by 50/sq.ft. of
GFA in Schedule "C" of the by-law. This also resulted in changes
to the tables in the Executive Summary and Table C-la.
c) Minor wording edits to DC by-law s.s.16(2)(ii) and s.s. 16(3)(ii), as
well as the last line on p. F-9.
d) The location of Indoor Soccer Facility on the table on p. B-15 has
been altered to show correct timing.
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APPENDIX A
OCTOBER 25, 2013 CITY OF PICKERING
DEVELOPMENT CHARGES BACKGROUND STUDY
- REVISED PAGES
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REVISED (ii)
TABLE ES-1
CITY OF PICKERING
COMPARISON OF DEVELOPMENT CHARGES
Residential Non-residential Charge
Per Single Detached Unit Per Sg.ft. of GFA4
Current Calculated Herein Change Current Calculated Herein Change
July 1, 2013 July 1, 2013 3
Development-related Studies $ 92 $ 182 1.4% $ 90 $ - $ 0.08 2.1% $ 0.08
Fire $ 273 $ 599 4.7% $ 326 $ - $ 0.26 7.0% $ 0.26
Parks $ 448 $ 1,645 13.0% $ 1,197 $ - $ 0.14 3.7% $ 0.14
Recreation $ 2,363 $ 3,427 27.0% $ 1,064 $ - $ 0.28 7.5% $ 0.28
Library $ 542 $ 825 6.5% $ 283 $ - $ 0.07 1.9% $ 0.07
Storrnwater Management $ 1,435 $ 387 3.0% $ (1,048) $ 0.95 $ 0.17 1 4.5% $ (0.78)
Operations $ 292 $ 552 4.4% $ 260 $ - $ 0.24 6.4% $ 0.24
Transportation -Rest of Pickering $ 4,750 $ 5,072 40.0% $ 322 $ 3.12 $ 2.50 66.8% $ (0.62)
-Seaton Separate Coverage n/a n/a
TOTAL(Rest of Pickering) $ 10,195 $ 12,689 100.0% $ 2,494 $ 4.07 -$ 3.74 100.0% $ (0.33)
I TOTAL Seaton _ $ 7,617 2 $ 1.24
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1 $5,453/net Ha($2,207/acre)for Seaton Prestige Employment Lands.
2 Plus the cost of transportation servicing and capital contributions.
3 DCs for services other than Roads and SWM were not enacted.
4 A separate and equivalent land area charge is shown in Schedule C of the proposed by-law for Seaton Prestige Employment development.
, rr'rr:ngi'? !':_.._1.rdyGPrc .
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REVISED (iii)
c) The large amount of new development anticipated in the City serves to_reduce
the relative size of the decline in occupancy of existing units, which increases the
DC recoverable.
2.4 The non-residential charge has declined, despite the proposal to expand coverage from
only transportation and SWM, to include all services. This decline is primarily the result
of the large reduction in the City-wide SWM charge. It declined more than in the case of
residential, because of the high non-residential floor area per employee in Seaton. (The
comparatively low number of employees reduces the cost calculation numerator, while
the comparatively high non-residential floor area reduces the DC.)
The non-residential transportation charge for Rest of Pickering declined, while the
residential transportation charge increased somewhat. This is the result of an increase
in forecast non-residential floor space per employee.
2.5 Even with the proposed increase and Durham Region's July 1, 2013 DC increase,
residential development charges in Pickering are among the lowest in the GTA. They
would be between the charges currently imposed in Ajax and Whitby in size. Further
comparative information is provided in Appendix E.
2.6 Seaton development is proposed to be subject to the City-wide set of development
charges, except in the case of transportation. In that case, Seaton is expected to fund
and install its own local roads, as well as all City road oversizes and arterials. The
Seaton development charge equivalent for doing so is approximately $2,000/SDU.
Instead of paying this DC, the Seaton landowners have undertaken to fund and install
the necessary road program (including funding contributions for particular Seaton-related
external roads).
2.7 The charge in the Rest of Pickering for transportation is $5,072/SDU; however, if the City
adopted a City-wide transportation charge, it would decline to approximately $3,000/
SDU as a result of adding Seaton's lower per unit costs. The saving to Seaton
development, which is approximately $1,000/SDU provides the basis for .a set of
voluntary contributions to be made to the City's Operating Fund over time, in order to
cover the tax share of various Seaton-related capital expenditures (as per the City's April
10, 2013 FIS). This road funding arrangement also provides further rationale for
Seaton's participation in funding a share of the City-wide SWM charge, in addition to its
own SWM costs and this has served to reduce the City-wide SWM charge by
approximately $650/SDU.
2.8 A land area-specific charge is applicable to prestige employment land in Seaton rather
than the floor area charge applicable to all other non-residential development in
Pickering. This is calculated as the City's non-residential building area charge (plus the
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REVISED (iv)
Seaton area-specific roads arrangement) assessed on a land area, rather than a
building area, basis.'
This Seaton land area DC approach helps to ensure that the DC recovery will be
complete, irrespective of the average building density involved. Otherwise, if the
anticipated average building density is not achieved, DC revenues may not cover the
capital costs involved. It also serves to encourage intensification (as subsequent phases
of development on the site would not involve additional development charge payments).
This encourages expedient buildout, discourages land banking and is attractive in terms
of the City's cash flow timing. Finally, it essentially removes the entitlement for the 50%
industrial expansion exemption, as no additional DC payment is involved in the case of
expansion (as the entirety of the DC must be paid for each parcel, when the initial
development occurs).
2.9 Table ES-2 summarizes the City's Development Related Capital Program (10-18 years
in length, depending on the service involved) and the deductions made thereto, in
accordance with the DCA. in summary, the gross development-related capital cost of
the entire program is $353.1 million. Of this amount, $220.4 million has been
determined to be DC-recoverable ($192.8 million from residential development and
$27.0 million from industrial/commercial/institutional development (non-residential)). The
difference between the gross. and DC recoverable amounts comprises the following
deductions, pursuant to the Development Charges Act:
- $ 30.8 million Beyond 10 year Service Level Cap and Post Period Period
- $ 88.9 million Benefit to Existing Development } Capacity
- $ 13.0 million Subsidies, Other Contributions, and 10% Stat. Deduction
$132.7 million
Neither the additional servicing requirements nor the associated growth forecast for
Northeast Pickering, which has been deferred, have been included in the DC calculation.
2.10 Table ES-3 sets out the existing and calculated charges by type of dwelling unit.
' The share of DC.recoverable costs attributable to prestige employment land in Seaton is based on its
percentage share of the increment in total employment in Pickering for the planning period. That number
is then multiplied by the non-residential DC recoverable cost and divided by the net prestige employment
land area to be developed over the same period.
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REVISED (v)
TABLE ES-2
INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION
MUNICIPALITY: Cltvof Pickering .
Less: Potential DC Recoverable Cost
Service Gross Ineligible re: Eligible Benefit to Other(e.g. Net Costs
Capital Level of Increase Existing 10%Stat.& Benefiting Residential Non-Residential
Cost Service' in Need Development' Grants,Landowner New Share Share
Est. Contributions) Development
$
Development-related Studies 4,830,000 - 4,830,000 1,014,000 78,888 3737,113 2,914,948 822,165
Fire 16,099,999 3,289,039 12,810,960 357,774 - 12,453,186 9,713,485 2739701
Parkland Development 46,122,000 5,474,880 40,647,120 7,955,110 3,269,201 29,422,809 27,951,669. 1,471,140
Recreation 72,016,646 - 72,016,646 3,888,372 6,812,827 61,315,447 58,249,674 3,065,772
Libraries 20,490,000 3,514,160 16,975,840 579,739 1,639,610 14,756,491 14,018,667 737,825
Operations Facilities&Vehicles 30,200,000 18,548,880 11,651,120 - 1,165,112 10,486,008 8,179,086 2,306,922
Transportation2 90,031,985 . -
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90,031,985 28,055,714 - 61,976,271 51,440,305 10,535,966
Streetlighting&Sidewalks 14,089,570 - 14,089,570 4,531,873 - 9,557,698 7,852,699 1,704,999
Traffic Signals 1,810,755 - 1,810,755 181,076 - 1,629,680 1,352,634 277,046
Stormwater 57,441.829 57,441,829 42.340.400 15,101,429 11,172,654 . 3,337.286
353,132,784 30,826,959 322,305,825. 88,904,056 12,965,638 220,436,1.31 192,845,821 26,998,821
'Inclusive of post planning period capacity,where applicable.
2 Excludes Seaton Roads Program. •• • - ^• .. s..:.• •,
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REVISED (vi)
TABLE ES-3
• CITY OF PICKERING
2013 CITY-WIDE DEVELOPMENT CHARGE CALCULATION
Rest of Pickering
Calculated Seaton
Development Type Existing Charge Charge Calculated Charge'
Residential(Per Dwelling Unit)
Single Detached $ 10,195 $ 12,689 $ 7,617
Apartments 2 Bedroom and Larger 5,514 6,709 4,027
Apartments Bachelor and 1 Bedroom 4,047 4,923 2,955
Other Dwellings 7,317 10,063 6,040
Non-Residential Development per sq.ft
(gross floor area) $4.07 $ 3.74 $ 1.24
Seaton Prestige Employment Lands(per net Ha) N/A N/A $ 38,701
' Plus the cost of transportation servicing and capital contributions.
N.Picker-ng 2 D DC Study't'.Pic' nng DC Mode.2C1 r's,xlsx] S-3
2.11 The following are the major modifications that have been made to the Draft October 2,
2013 version of the "City of Pickering Development Charges Background Study" in
completing this October 25, 2013 document:
a) Streetlighting and sidewalks capital program gross cost reduced by a total of
$6,331,250, including:
• RU-8 description changed and gross cost reduced by $1,406,250;
• RU-9 cost reduced by $4,250,000, in order to reflect Regional funding
responsibility for sidewalks;
• Projects A-3 and A-4 deleted, as they are covered in the Seaton roads
program.
b) s.s.16(1) of the proposed by-law in Appendix F was modified in order to clarify
that the first annual indexing of the by-law is to occur as of July 1, 2015.
c) s.s.16(3) was added to the proposed by-law, in order to introduce a transitional -
policy for the application of the new charge.
d) The changes in the streetlighting and sidewalks capital program noted under a)
were made to Schedule "C" of the by-law, as well as Schedule C-1 a, Table C-3,
p. B-35 and Tables ES-1, ES-2 and ES-3.
• e) The two new "multi-use path" projects on p. B-37 were removed, such that the
totals match the calculation on p. C-12.
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REVISED (vii)
f) s.s.2(3) of the Draft By-law was deleted, as clarification is provided via s.s.16(3).
2.12 The following are the modifications that have been made to the "October 25, 2013 City
of Pickering Development Charges Background Study"following the November 11, 2013
Public Meeting:
a) s.s.6(4) and definition 4(j) of the by-law were added to clarify that Live Work units
are subject to the residential rates.
b) A project was added to the Transportation program on p. B-37 (Whites Road
Multi-use Path, Finch Avenue to Seaton Boundary (Bridge) 2014-2019 $990,000
gross cost, 10% Benefit to Existing Development deduction). This project is part
of the City's multi-use path system and supports the Region's cycling network.
Its inclusion increased the Transportation DC for the Rest of Pickering by
$61/single detached unit(and proportional increases for other housing types) and
the non-residential DC by 50/sq.ft. of GFA in Schedule "C" of the by-law. This
also resulted in changes to the tables in the Executive Summary and Table C-1 a.
c) Minor wording edits to DC by-law s.s.16(2)(ii) and s.s. 16(3)(ii), as well as the last
line on p. F-9.
d) The location of Indoor Soccer Facility on the table on p. B-15 has been altered to
show correct timing.
3. Council Approvals Sought
At this stage in the process, the Background Study and proposed DC by-law are being provided
for information purposes, as part of the consultation process. At such time as that process is
complete and final DC recommendations are made to,Council, approval will be sought for:
• the 2014 DC by-law; •
• the Background Study, including the development forecast, the growth-related capital
program, the DC calculation and associated material, subject to any Addendum which
may be produced prior to by-law adoption.
4. Acknowledgements
The consultant wishes to acknowledge, with appreciation, the guidance, input and considerable
efforts of Stan Karwowski and his staff, as well as the numerous City operating staff who were
involved in the production of this Background Study.
Watson&Associates Economists Ltd. HAPickering12013 DC StudylPickering dc study.docx 60
REVISED B-15
INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION
MUNICIPALITY: City of Pickering •
SERVICE: Recreational Facilities •
Less: Less: Potential DC Recoverable Cosh
Prj. Increased Service Needs Attributable to Timing Gross Ineligible re: Eligible Benefit to Existing Grants,Subsidies& Sub-total Other(e.g.' Net Costs
No. Anticipated Development Capital Level of Increase Development Other Contributions 10%Statutory Benefiting Residential Non-Residential
Cost Service In Need /IJ.E.C:' Attributed to New Deduction) New Share Share
� .. 2014-2023 Estimate $ % Development. Development- 95% 5%
projects Already Completed
Costs to be Incurred During the Term of .
the Proposed By-Law
Indoor Soccer Facility&Land 2014 5,435,646 5,435,646 815,347 15.0% 4,620,299 462,030 4,158,269 3,950,356 207,913
Seniors Centre&Associated Parking Structure 2017 18,780,000 18,780,000 1,878,000 10.0% 16,902,000 1,690,200 15,211,800 14,451,210 760,590
Costs to be Incurred Post Proposed By-law
Term(i.e.beyond 20181
Seaton Recreation Complex 1 Seaton 2019 4,781,000 4,781,000 119,525 2.5% 4,661,475 466,148 4.195,328 3,985,561 209,766
Seaton 2020 21,510,000 21,510,000 537,750 2.5% 20,972,250 2,097,225 18.875,025 17,931,274 943,751
Seaton 2021 21,510,000 21,510,000 537,750 2.5% 20,972,250 2,097,225 18,875,025 17,931,274 943,751
.
Tl Estimated Capital Cost $ 72,016,646 $ - $ 72, $ - $ 68,128,274 $ 6,812,827 $ 61,315,447 $ 58,249,6 74 $ 3,065,772
committed excess capacity and inclusive of post planning period capacity,where applicable.Level of Service
creation Facilities 72,859,040
cess Cap Room From Parkland
creation Facilities 72,859,040 .. _ , , ,,,,
n&Associates Economists Ltd. H:1Pickering12013 DC S
x
I
INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION REVISED B-35
MUNICIPALITY: City of Pickering
SERVICE: Streetlighting and Sidewalks
Less: l OtentI5l DC Recokxable Coat.
Prj. Increased Service Needs Gross Benefit to Grants,Subsidies& Net Costs
•
No, Attributable to Timing Capital Existing Developer Contributions Benefiting Residential Non-Residential
Anticipated Development Cost Development Attrib.to New New Share Share
Estimate ($) (%) Development Development 83% 17%
Project Description .
0.1 Kingston Road-West Unit of Neighbourhood 7 to Dboe Road north side 2014-2019 323,100 161,550 50% 161,550 134,087 27,464
D-2 Kingston Road-West Unit to East Limit of Neighbourhool 7 south side 2014-2019 394,900 197,450 50% 197,450 163,884 33,567
D-9 Finch Avenue-Spruce Hill to East Unit of Neighbourhood 9 north side 2014-2019 161,550 80,775 50% 80,775 67,043 13,732
D-10 Finch Avenue-Spruce Hill to Fairport Road south side 2014-2019 143,600 71,800 50% 71,800 59,594 12.206
TC-9 Kingston Road-Glendale Drive to Walnut Lane north side 2014-2019 215,400 107,700 50% 107,700 89,391 18,309
TC•12 Kingston Road-Dibe Road to Liverpool Road south side • 2014-2019 359,000 179,500 50% 179,500 148,985 30,515
V-11 Finch Avenue-Brock Road to Hydro Corridor south side 2014-2019 53,850 26,925 50% . 26,925 22,348 4,577
V-12 Finch Avenue-Brock Road to Hydro Corridor north side 2014-2019 179,500 • 89,750 50% 89,750 74,493 15,258
W-5 Whites Road-Granite Court to Hwy 401 west side 2014-2019 53,900 26,950 50% 26,950 22,369 4,582
RU-8 Whites Road-North of 3rd Concession to Taunton Road sidewalk,multi-use trail,streetlight 2014-2019 618,750 30,938 5% 587,813 487,884 99,928
Whites Road-Finch Ave to Seaton Boundary multi-use 2014-2019 990,000 99,000 10% 891,000 659,340 231,660
RU-9 Whites Road-Bridge over west Duffins Creek streetlighting 2014-2019 750,000 37,500 5% 712,500 591,375 121.125
51-4 Brock Road-Bayy Street to Montgomery Road East and West Sides 2014-2019 1,725.000 862.500 50% 862,500 715,875 146,625
RU-12 Sideline 24-Hwy 7 south to north limit of subdivision sidewalk/streetlights 2014-2019 361,000 54,150 15% 306,850 254,686 52,165
A-6 Whites Rd.CPR Overpass sidewalklstreetlights 2014-2019 250.000 37,500 15% 212,500 176,375 36,125
Sub-total 6,579,550 2,063,988 - 4,515,563 3,667,727 847,836
81.1 aayly'Street-Church Street to West Unit Neighbourhood 4 north and south sides 2020-2024 1,077,000 538,500 50% 538,500 446,955 91,545
RU-10 HMy 7-Brock Rd to West Towniine Sidewalk/streetlights north side 2020-2024 1,159,000 173,850 15% 985,150 817,675 167,476
B1-17 Church Street-Bayly Street to Kelino Street west side 2020-2024 233,350 116,675 50% 116,675 96,840 19,835
Hi Atone Road-Sheppard Avenue to North Limit of Neighbourhood
10 east and west sides 2020-2024 951,350 475,675 50% 475,675 394,810 80,865
•
L-6 Finch Avenue-West Limit of Neighbourhood 710 Duncannon
Dr. north side 2020-2024 89,750 44,875 50% 44,875 37,246 7,629
L-7 Finch Avenue-Lynn Heights to East 80m north side 2020-2024 28,720 14,360 50% •14,360 11,919 2,441
L-8 Finch Avenue-Valley Farm Road to West 150m north side 2020-2024 53,850 26,925 50% 26,925 22,348 4,577 •
•
L-9 Finch Avenue-Valley Farm Road to West 600m south side 2020-2024 215,400 107,700 50% 107,700 89,391 18,309
L=10 Finch Avenue-Valley Farm Road to East 300m north side 2020-2024 107,700 53,850 50% 53,850 44,696 9,155
L-11 Finch Avenue-Valley Farm Road to East 300m soulhside 2020-2024 107,700 53,850 50% 53,850 44,696 9,155
RP:B Finch Avenue-Alton Road to Rosebank Road south side 2020-2024 287,200 143,600 50% 143,600 119,188 24.412
RP-5 Finch Avenue-Rosebank Road to 50thn West north side 2020-2024 285,600 142,800 50% 142,800 118.524 24,276
RP-8 Altona Road-Finch Avenue toHydro Corridor(N) west side 2020-2024 107,700 53,850 50% 53.850 44.696 9,155
RP-9 Alton Road-Finch Avenue to Hydro Corridor(N east side 2020-2024 107,700 53,850 50% 53.850 44,696 9,155
RP-10 Afton Road-Finch Avenue to North Limit of Neighbourhood 14 west side 2020-2024 89,750 44,875 50% 44,875 37,246 7,629
RP-11 Aeon Road-Finch Avenue to North Unit of Neighbourhood 14 east side 2020-2024 89,750 44,875 50% 44,875 37,246 7,629
RU-11 North Road-Hwy 7 south to north limit of subdivision sidewalk/streetfights 2020-2024 456,000 68,400 15% 387,600 321,708 65,892
RU-14 Whitevale Road-Altona Road to York/Durham Townline sidewalk/streetlights/multi-use trail 2020-2024 450,000 67.500 15% 382,500 317,475 65,025
Sub-total 5,897,520 2,226,010 3,671,510 3,047,353 624,157
RU-17 TauntO l Rd.-Sideline 16 to Church St, sidewalk/streetlights/multi-use trail 2025-2029 375,000 56,250 15% 318,750 264,563 54,188
Rt}is Taunton Rd.-Whites Rd.To WestTownline sidewaik/streetights/muiti-use trail 2025-2029 1,237.500 185,625 15% 1,051,875 873,056 178,819
Sub total 1,612,500 241.875 - 1.370.625 1.137.619 233,906
Total Estimated Capital Costs $ 14,089,570 $ 4,531,873 $ - $ 9,557,698 $ 7,852,699 $ 1,704,999
H ,
NWatson&Associates Economists Ltd. H:IPickering12013 DC StudylPickering dc study.docx
REVISED C-3
TABLE C-1a '
CITY OF PICKERING
DEVELOPMENT CHARGE CALCULATION
Area Specific Rest of Pickering Transportation Services
2014-2031
DC Recoverable Share 2013$DC Eligible Cost
SERVICE. Residential Non-Residential SDU per s.f. .
$ $ $ $
' Transportation
1.0 Roads&Bridges $ 51,440,305 $ 10,535,966
Less: Reserve Fund $ 6.561.124 $ 1.343.845
Sub-total $ 44,879,181 $ 9,192,121 $ 4,209 $ 2.06
2.0 Streetlightng&Sidewalks 5 7,852,699 $ 1,704,999 $ 736 $ 0.38
•
3.0 Traffic Signals $ 1,352,634 $ 277,046 $ 127 $ 0.06
TOTAL $ 54,084,514 $ 11,174,165 $ 5.072 $ 2.50
DC ELIGIBLE CAPITAL COST $ 54,084,514 $ 11,174,165
Goss Population/GFA Growth(sail.) 37,105 4,472,400
Cost Per Capita/Non-Residential GFA(sq.fL) $ 1,457.61 $ 2.50
By Residential Unit Tvoe o.o.0
Single and Seni-Detached 3.48 $ 5,072
Apartments 2 Bedroom+ 1.84 $ 2,682
Apartments Bach.&1 Bdrm 1.35 $ 1,968
Other Multiples 2.76 $ 4,023
TABLE C-lb
CITY OF PICKERING
DEVELOPMENT CHARGE CALCULATION
Municipal-wide Services
2014-2023
DC Recoverable Share 2013$DC Eligible Cost
SERVICE Residential Non-Residential SDU per s.f.
$ $ $ $
. 4.0 Studies $ 2,914,948 $ 822,165
Less: Reserve Fund $ (173.080) $ (48.817)
Sub-total $ 3,088,027 $ 870,982 $ 182
5,0 Fire $ 9,713,485 $ 2,739,701 $ 571
6.0 Parkland Development $ 27,951,669 $ 1,471,140 $ 1,645
7.0 Indoor Recreation Facilities $ 58,249,674 $ 3,065,772 $ 3,427
$ 86,201,343 $ 4,536,913 $ 5,072
8.0 Library $ 14,018,667 $ 737,825 $ 825
9.0 Operations Facilities&Vehicles $ 8,179,086 $ 2,306,922 $ 481
Financing Cost
TOTAL $ 121,200,608 $ 11,192,342 $ 7,131 see C-1c •
DC ELIGIBLE CAPITAL COST $ 121,200,608
10 Year Gross Population/GFA Growth(sq.ft.) 59,151
Cost Per Capita/Non-Residential GFA(soil.) $ 2.049.00 see C-10 _
financing Charges' Total including
By Residential Unit Type p ,_u - Sub-total Ere Operations Financing
Single and Semi-Detached 3.48 $ 7,131 $ 26 $ 71 $ 7.230
Apartments 2 Bedroom+ 1.84 $ 3,770 $ 15 $ 38 $ 3,823
Apartments Bach.&1 Bdrm 1.35 $ 2,766 $ 11 $ 28 $ 2,805
Other Multiples 2.76 $ 5,655 $ 22 $ 56 $ 5,733
See Tables C-2a and C-2e.
Watson&Associates Economists Ltd. H:1Pickering12013 DC StudylPickering dc study.docx
63
ATTACHMENT# TO REPORT# i� -)3
The Corporation of the City of Pickering
By-law No.
Being a By-law Regarding Development
Charges
Whereas, pursuant to subsection 2(1) of the Development Charges Act, 1997(the Act),
the council of a municipality may by by-law impose development charges against land
to pay for increased capital costs required due to increased needs for servicing arising
from development of the area to which the By-law applies; and
Whereas, the Council of The Corporation of the City of Pickering approved the City of
Pickering Development Charge Background Study, dated October 25, 2013, as
amended, prepared by Watson &Associates Economists Ltd.;
And Whereas the Council has made the Background Study and proposed Development
Charges By=law available to the public at least two weeks prior to the public meeting
and has given notice in accordance with Section 12 of the Act of its development
charges proposal and a public meeting was held on November 11, 2013;
And Whereas the Council has heard all persons who applied to be heard in objection
to, or in support of, the proposed Development Charge By-law at such public meeting,
and provided a subsequent period for written communications to be made;
And Whereas the Council in adopting the Development Charge Background Study
directed that development charges be imposed on land under development or,
redevelopment within the geographical limits of the municipality as hereinafter provided.
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
Part l
Application
1. (1) Subject to subsection (2), this By-law applies to all lands whether or not
the land or use is exempt from taxation under Section 3 of the
Assessment Act.
(2) This By-law shall not apply to land that is owned by and used for the
purposes of,
(a) a board of education as defined under subsection 1(1) of the
Education Act;
(b) any municipality or local board thereof;
64
By-law No: Page 2
(c) the development of a non-residential farm building used for bona
fide agricultural purposes;
(d) a building or structure that is used in connection with a place of
worship and is exempt from taxation under the Assessment Act as
a result;
(e) development where:
(i) no additional dwelling units are being created; or
(ii) no additional non-residential gross floor area is being added; or
(f) nursing homes and hospitals.
(3) An owner who has obtained a demolition permit and demolished an
existing dwelling unit or a non-residential building in accordance with the
provisions of the Building Code Act shall not be subject to the
development charge under subsection (1) with respect to the development
being replaced, provided that the building permit for the replacement
residential units or non-residential area is issued not more than 10 years
after the date of demolition and provided that any dwelling units or
additional non residential floor area created in excess of what was
demolished shall be subject to the development charge calculated under
Section 6 and 11, respectively.
2. (1) Subject to subsection (2), development charges shall apply, and shall be
calculated, paid and collected in accordance with the provisions of this By-
law, in respect of land to be developed for residential use, non-residential
use, or both, where the development requires,
(a) the passing of a zoning by-law or of an amendment to a zoning by-
law under Section 34 of the Planning Act;
(b) the approval of a minor variance under Section 45 of the Planning
Act;
(c) a conveyance of land to which a by-law passed under subsection
50(7) of the Planning Act, applies;
(d) the approval of a plan of subdivision under Section 51 of the
Planning Act;
(e) a consent under Section 53 of the Planning Act;
65
By-law No. Page 3
(f) the approval of a description under Section 50 of the Condominium
Act; or
(g) the issuing of a permit under the Building Code Act, in relation to a
building or structure.
(2) Subsection (1) shall not apply in respect of:
(a) local services, related to a plan of subdivision or within the area to
which the plan relates, to be installed or paid for by the owner as a
condition of approval under Section 51 of the Planning Act,
(b) local services to be installed or paid for by the owner as a condition
of approval under Section 53 of the Planning Act.
3. (1) Where two or more of the actions described in subsection 2(1) are
required before land to which a development charge applies can be
developed, only one development charge shall be calculated, paid and
collected in accordance with the provisions of this By-law.
(2) Notwithstanding subsection (1), more than one development charge by-
law may apply to the same area and if two or more of the actions
described in subsection 2(1) occur at different times, and if the
subsequent action has the effect of increasing the need for services as
designated in Sections 5 and 10, an additional development charge shall
be calculated, paid and collected in accordance with the provisions of this
By-law.
Part II
Residential Development Charges
4. In this Part,
(a) "apartment building" means a residential building, or the residential portion
of a mixed-use building consisting of more than 3 dwelling units, which
dwelling units have a common entrance to grade, but does not include a
triplex, semi-detached duplex, semi-detached triplex, townhouse or
stacked townhouse;
(b) "apartment" means a dwelling unit in an apartment building;
(c) "bedroom" means any room used, or designed or intended for use, as
sleeping quarters;
(d) "development charge" means residential development charge;
66
By-law No. Page 4
(e) "dwelling unit" means a room or suite of rooms used, or designed or
intended for use by one person or persons living together, in which
culinary and sanitary facilities are provided for the exclusive use of such
person or persons;
(f) "garden suite" means a one-unit detached, temporary residential structure
containing bathroom and kitchen facilities that is ancillary to an existing
residential structure and that is designed to be portable;
(g) "grade" means the average level of finished ground adjoining a dwelling at
all exterior walls;
(h) "gross floor area" means the total floor area, measured between the
outside of exterior walls or between the outside of exterior walls and the
centre line of party walls dividing the building from another building, of all
floors above the average level of finished ground adjoining the building at
its exterior walls;
(i) "hospital" means land, buildings or structures used, or designed or
intended for use as defined in the Public Hospitals Act, R.S.O. 1990, c.
P.40 as amended;
(j) "Live Work unit" is as defined in the City's zoning by-laws;
(k) "nursing home" means a building owned and operated on a non-profit
basis but excluding any building or part of a building which is comprised of
dwelling units;
(I) "residential use" means lands, buildings or structures used, or designed or
intended for use as a home or residence of one or more individuals, and
shall include, but is not limited to, a single detached dwelling, a semi-
detached dwelling, a townhouse, a plex, a stacked townhouse, an
apartment building, a mobile home, a retirement residence and a
residential dwelling unit accessory to a non-residential use;
(m) "retirement residence" means a residential building or the residential
portion of a mixed-use building which provides accommodation for
persons of retirement age, where common facilities for the preparation
and consumption of food are provided for the residents of the building, and
where each unit or living accommodation has separate sanitary facilities,
less than full culinary facilities and a separate entrance from a common
hall;
(n) "retirement residence unit" means a unit within a retirement residence;
•
67
By-law No. Page 5
(o) "semi-detached dwelling" means one of a pair of dwelling units attached
together horizontally above or below grade or both above and below
grade;
(p) "single-attached dwelling" means one of a group of not less than three
adjacent dwelling units attached together horizontally by above grade
common walls;
(q) "single-detached dwelling" means a single dwelling unit which is free-
standing, separate and detached from any other building or structure.
5. Development charges against land to be developed for residential use shall be
based upon the services designated in Schedule "A", which are provided by the
City.
6. (1) Subject to the provisions of this Part, development charges against land to
be developed for residential use shall be calculated, paid and collected at
the rates per residential unit set out in Schedule "C";
(2) Residential development located within Seaton lands, as shown in
Schedule B, is subject to the Seaton Transportation funding arrangement
and not to the Transportation charge applicable to development in the rest
of Pickering;
(3) The development charges imposed on a retirement residence unit under
subsection (1) shall be payable at the rate applicable to an apartment of
one bedroom and smaller;
(4) Development charges against land to be developed for a Liye Work unit
shall be subject to the residential rates.
7. (1) Subject to subsections (2) and (3), Section 6 shall not apply in respect of a
renovation, addition or installation which involves the creation of:
(a) one or two additional dwelling units in an existing single-detached
dwelling;
(b) an additional dwelling unit in any other existing residential building;
or
(c) garden suites.
68
•
•
By-law No. Page 6
(2) Notwithstanding clause (1)(a) of this Section, development charges shall
be calculated, paid and collected in accordance with Section 6 where the
total gross floor area of the additional unit or units is greater than the total
gross floor area of the existing dwelling unit.
(3) Notwithstanding clause (1)(b) of this Section, development charges shall
be calculated, paid and collected in accordance with Section 6 where the
additional unit has a gross floor area greater than,
(a) in the case of a semi-detached dwelling or single attached dwelling,
the gross floor area of the dwelling unit already in the building; or
(b) in the case of any other residential building, the gross floor area of
the smallest dwelling unit contained in the residential building.
8. Where non-residential floor area is to be converted to residential space, a charge
shall be paid for any new residential units created, less the amount of the charge
which would be payable if the existing non-residential space being converted
were being constructed, but in no case shall the net charge be less than zero.
Part Ill
Non-Residential Development Charges
9. In this Part,
(a) "agricultural use" means lands, buildings or structures, excluding any
portion thereof used as a dwelling unit or for a commercial use, used or
designed or intended for use for the purpose of a bona fide farming
operation including, but not limited to, animal husbandry, dairying,
livestock, fallow, field crops, removal of sod, forestry, fruit farming,
greenhouses, horticulture, market gardening, pasturage, poultry keeping,
and equestrian facilities;
(b) "development charge" means non-residential development charge;
(c) "grade" means the average level of finished ground adjoining a building at
all exterior walls;
(d) "existing industrial building" means a building used for or in connection
with:
(i) manufacturing, producing, processing, storing or distributing
something;
69
By-law No. Page 7
(ii) research or development in connection with manufacturing,
producing or processing something;
(iii) retail sales by a manufacturer, producer or processor of something
they manufactured, produced or processed, if the retail sales are at
the site where the manufacturing, production or processing takes
place; or
(iv) office or administrative purposes, if they are:
(1) carried out with respect to manufacturing, producing,
processing, storage or distributing or something, and
(2) in or attached to the building or structure used for that
manufacturing, producing, processing, storage or
distribution;
(e) "gross floor area" means the total floor area, measured between the
outside of exterior walls or between the outside of exterior walls and the
centre line of party walls dividing the building from another building, of all
floors above the average level of finished ground adjoining the building at
its exterior walls;
•
(f) "net hectare" means the area in hectares of a parcel of land exclusive of
the following:
(i) lands conveyed or to be conveyed to the City of Pickering or a local
board thereof or the Region or a local board thereof;
(ii) lands conveyed or to be conveyed to the Ministry of Transportation
for the construction of provincial highways;
(iii) hazard lands conveyed or to be conveyed to a conservation
authority as a condition of development;
(iv) lands identified as "Natural Heritage System" pursuant to the
Central Pickering Development Plan; and
(v) storm water management facility areas;
(g) "non-residential" means designed, adapted or used for any purpose other
than a dwelling unit or dwelling units, or accessory uses or spaces to a,
dwelling or dwellings;
70
By-law No. Page 8
(h) "total floor area" means the sum total of the areas of the floor whether
above or below grade, measured between the exterior faces of the
exterior walls of the building or structure or from the centre line of a
common wall separating two uses; and
(i) includes the area of mezzanine as defined in the Ontario Building
Code; and
(ii) excludes those areas used exclusively as mechanical areas or for
parking garages or structures.
10. Development charges against land to be developed for non-residential use shall
be based upon the services designated in Schedule "A", which are provided by
the City.
11. (1) Subject to the provisions of this Part, development charges against land to
be developed for non-residential.use shall be calculated, paid and.
collected at the rates set out in Schedule "C".
(2) Non-residential development located within Seaton lands in Schedule B is
subject to the Seaton Transportation funding arrangement and not to the
Transportation charge applicable to development in the rest of Pickering.
Further, non-residential development located within the Seaton Prestige
Employment Lands is subject to the charge per net hectare set out in
Schedule "C";
(3) The development charges in subsection 11(2) shall be calculated based
on the number of net hectares of the entire parcel of land on which
development will occur.
(4) If a development includes the enlargement of the gross floor area of an
existing industrial building, the amount of the development charge that is
payable in respect of the enlargement will be determined as follows:
(a) if the gross floor area is enlarged by 50 percent or less, the amount
of the development charge in respect of the enlargement is zero;
and
(b) if the gross floor area is enlarged by more than 50 percent, the
amount of the development charge in respect of the enlargement is
the amount of the development charge that would otherwise be
payable multiplied by the fraction determined as follows:
71
By-law No. Page 9
(i) determine the amount by which the enlargement in gross
floor area exceeds 50 percent of the gross floor area lawfully
constructed at the time of building permit application; and
(ii) divide the amount determined under paragraph.(i) by the
amount of the enlargement.
(c) for the purposes of calculating the floor area of the existing
industrial building, floor area created by a previous enlargement
shall not be included.
12. Where residential floor area is to be converted to non-residential floor area, a
charge shall be paid for any new non-residential space created, less the amount
of the charge which would be payable if the existing residential units being
converted were being constructed, but in no case shall the net charge be less
than zero.
Part IV •
Administration
13. Development charges against land to be developed for residential uses, non-
residential uses, or both, shall be calculated, paid and collected as follows:
(a) development charges against that portion of the land to be developed for
residential use shall be calculated, paid and collected on a per dwelling
unit of residential use basis.in accordance with Part II and Schedule "C" of
this By-law and in the case of a mixed-use building or structure, upon the
residential uses in the mixed use buildings or structures, according to the
type of residential use;
(b) development charges against that portion of the land to be developed for
non-residential use shall be calculated, paid and collected in accordance
with Part Ill and Schedule "C" of this By-law and in the case of a mixed-
use building or structure, upon the non-residential uses in the mixed-use
building or structure.
14. (1) Development charges shall be payable in full on the date that the building
permit is issued in relation to a building or structure on land. to which a
development charge applies.
(2) No building permits shall be issued by the City for the construction of any
building or structure on land to which a development charge applies until
the applicable development charge has been paid in full to the City.
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By-law No. Page 10
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(3) Where an owner has paid to the City, prior to the enactment of this By-law,
in relation to a building or structure on land to which a development
charge applies,
(a) a charge against development pursuant to an obligation to do so in
a subdivision agreement, condominium agreement, development
agreement or other agreement with the City,
(b) a fee as a condition of obtaining a consent to create a lot, other
than the application fee; or
(c) a lot levy pursuant to By-law 3322/89,
and the building permit for that building or structure has not been issued
prior to the enactment of this By-law, the owner shall be credited with the
amount so paid, up to the amount of the development charge payable, as
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part of the development charge payable hereunder when the.building
permit is issued.
15. (1) Monies received from payment of development charges shall be
maintained in a separate reserve fund for each service designated in
Schedule "A", plus interest earned thereon.
(2) Monies received for the payment of development charges shall be used
only in accordance with the provisions of s.35 of the Act.
(3) The amounts contained in the reserve funds established under this
Section shall be invested, with any income received credited to the
development charge reserve funds in relation to which the investment
income applies.
16. (1) The development charges referred to in Sections 6 and 11 apply to all
permit applications received on or after January 1, 2014 and to those
received prior to January 1, 2014 that do not meet the transitional
provisions under s.s.16(3). These rates shall be adjusted annually,
without amendment to this By-law, as of July 1 each year, commencing in
2015, in accordance with the change in the index for the most recently
available annual period ending March 31 for the Statistics Canada
Quarterly, Construction Price Statistics, Catalogue Number 62-007.
(2) The indexed development charges rates effective July 1 each year shall
not apply to permit applications received prior to the July 1 effective date,
provided: .
73
By-law No. Page 11
(i) the permit application is complete in terms of the applicant's
submission requirements set out in the building code and the City's
Building By-law;
(ii) applicable law approvals prescribed in the building code have been
obtained or applied for; and
(iii) the building permit or a conditional building permit is issued for all
or part of the building on or before July 15 of that year.
Transitional Policy
(3) For permit applications received prior to January 1, 2014, the development
charge will be based on the rate that applied immediately prior to January
1, 2014, provided:
(i) the permit application is complete in terms of the applicant's
submission requirements set out in the building code and the City's
Building By-law;
(ii) applicable law approvals prescribed in the building code have been
obtained or applied for; and
(iii) the building permit or a conditional building permit is,issued for all
or part of the building on or before April 1, 2014.
17. Development charges are payable by cash or certified cheque at the applicable •
rates or as otherwise may be approved by Council.
18. Council may consider allowing a person to perform work that relates to a service
to which this By-law relates and if it agrees shall give the person a credit towards
a development charge otherwise payable in exchange for the related work.
19. This By-law shall be administered by the Corporate Services Department and
applied by the Chief Building Official.
20. The following schedules to this by-law form an integral part of this by-law:
Schedule "A" — Designated Municipal Services Under this By-law.
Schedule "B" —City of Pickering and Seaton Lands.
Schedule "C" — Schedule of Development Charges Effective January 1, 2014.
21. This By-law shall come into force and effect at 12:01 am on January 1, 2014 for a
term not to exceed five years from the date it comes into force, unless it is
repealed at an earlier date.
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By-law No. Page 12
22. By-law No. 6978/09 shall be repealed as of the date this By-law comes into force.
Y p Y
By-law passed this 9th day of December, 2013.
David Ryan, Mayor
Debbie Shields, City Clerk
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Schedule "A"
Designated Municipal Services Under this By-law
(a) development-related capital studies;
(b) fire stations and equipment and services related thereto;
(c) storm drainage and management works and equipment and services ,
related thereto;
(d) transportation, including roads, structures, sidewalks, streetlights, traffic
signals and services related thereto;
(e) operations, including facilities, vehicles and equipment;
(f) parkland development and trail development and equipment and services
related thereto;
(g) major indoor recreational facilities and equipment and services related
thereto;
(h) libraries and furnishings and (non-computer) equipment and services
related thereto, including circulating and non-circulating materials
generally provided to library users by public libraries.
76
Schedule "B"
TOWNSHIP OF UXBRIDGE
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r,��, i iL BY-LAW XXXX/13
IIIR • C l CITY OF PICKERING AND SEATON LANDS
1 jir ,
. Riii.�� " l7M1raff=� Development Charges
By-law roDa/13 applies to
E ` all lands wit hin the bounda of the
.4.4 n arri 11110 . % RL� City of Pickering boundary
i 11
NIA_ le 7�1�1F.. 1I 71P91' i / ;:/. ® SEATON PRESTIGE EMPLOYMENT LANDS
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1 INFORMATION CURRENT' AS OF JULY 31. 2013.
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77
' _ REVISED . F 12
SCHEDULE"C"
,: (To Development Charges 8y=law XX_ 13)x
City of'Pickering:.
Schedule of.Development Charges
Effective January 1; 2014
Non-residential
Residential Development-Per Dwelling Unit
Development
Sin le or . Apartment Apartment Non- Prestige•Service g Dwellings Dwellings residential Employment
Semi- with 2 or with less Other per Sq.ft'of Land in
Detached Dwellings =
more than 2 Total Floor Seaton Per
Dwellings bedrooms bedrooms Areal Net Hectare
De■elopment-related Studies $ 182 .$ 96 $ 71 $ 144 $ 0.08 $ 2,508
Fire $ 599 $ 317 $ 233 $ 475 $ 0.26 $ 8,119
Parks Development $ 1,645 $ 870 $ 638 $ 9,305 $ 0.14 $ 4,235
Major Indoor Recreation Facilities $ • 3,427 $ 1,812 $ 1,328 $ •2,718 $ 0.28 $ 8,826.
Library, • $ 825 $ 436 $ 320. $ 654 $ 0.07 $ 2,123
Operations Facilities&Vehicles $ 552 $ 292 $ 215 $ 437 $ 0.24 $ 7,437
Transportation - -Seaton' $ $ $ $ " $ $•
Rest of Pickering $ 5,072 $ - 2,682 $ 1,968 $ 4,-023 $ 2.50 $ -
Stormwater Management $- 387 $ 204 $ 150 $ 307 $ 0.17 $ 5,453
'•' Total'. Seaton' $ 7,617 $ 4,027 $ 2,955 $ 6,040 $ 1.24 $ 38,701
Rest of Pickering $ 12689 $' 6,709. $ 4,923 $ 10,063 $ 3:74 NIA.
1.Subject.to a separate agreement outside of the Development Charges Act concerning.the provision of Transportation requirements in.
addition to otherfunding,contributions
?'Does not appll to prestige employment.development rn Seatori;as that development rs subject to the'per net:Ha farad.area charge.instead
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INatsora&Associates,Economists Ltd H lPickenng120 j3_DC StudylPickering do study docx
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ATTACHMENT# TO REPORT#FI K1 a-4-I 3
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Watson
&Associates
ECONOMISTS LTD.
ATTACHMENT #3
RESPONSE TO QUESTIONS
RAISED BY THE STAKEHOLDER
COMMUNITY
•
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Plaza Three
101-2000 Argentia Rd.
Mississauga,Ontario
Canada L5N 1V9
Phone:(905)272-3600
Fax:(905)272-3602
e-mail:info @watson-econ.ca
www.watson-econ.ca
NOVEMBER 21, 2013
6 Planning for growth
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1.
1. SUMMARY
1.1 The City held a consultation meeting on October 16, 2003 which was attended by eight
members of the development community and eleven City staff, who were available to answer
questions on capital spending plans and related matters. In order to provide specifics prior to
the meeting, a full draft DC Background Study was released on October 2, 2013. In addition,
the City's DC consultant reviewed the Background Study at the meeting.
1.2 Five questions were raised verbally at the consultation meeting. They are summarized
below, with the City's response, as it is now provided, summarized in bold print:
a) The units in the development process for Duffin Heights appear low.
City Response: The numbers are in accord with the City's records. In addition,
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the Background Study worked with forecasts that are reconciled with ROPA 128
totals for the City as a whole, as per page A-5.
b) Why is development in Duffin Heights required to provide SWM services and also pay
the City-wide SWM DC?
City Response: Duffin Heights is required to provide local SWM services as part
of subdivision agreements. All development in Pickering is required to pay the
City-wide SWM DC to address costs not otherwise recoverable, which provide
improvements of general benefit to the City.
c) What are the City's plans re transitional provisions?
City Response: s.s.16(3) has been added to the proposed by-law in order to
address transition. In addition, s.s.16(1) provides for a deferral of the indexing of
the development charge to July 1, 2015. Finally, the proposed charge per'single
detached unit has been reduced by $383 in comparison with the October 2, 2013
draft.
d) What charge will be applied to Live Work units? Will it include a commercial charge?
City Response: s.s.6(4) has been added to the proposed by-law to indicate that
Live Work units will be subject to the residential charge.
e) What charge will be applied to semi-detached units?
City Response: The charge by dwelling type is based on average occupancy
statistics from the Census, as per p. A-18. These numbers group singles and
semis together and don't provide any basis for objectively differentiating between
the two.
1.3 Two letters from stakeholder associations were subsequently received. They are
included in Appendix A and are summarized as follows:
Watson&Associates Economists Ltd. H:1Pickering12013 DC Studylresponse to questions by Stakeholders
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2.
a) October 17, 2013 letter from Durham Region Home Builders' Association (Emidio
DiPalo, President)which made four points:
• Institution of a phase-in period to July 1 for builders who may already be at the
draft plan approval stage.
City Response: This request is addressed in paragraph 1.2 (c) above. The
City's need for capital funding makes a more expansive transition
arrangement difficult to justify.
• Consideration for. the creation of a distinction between charges for single and
semi-detached units.
City Response: This proposal was discussed in paragraph 1.2 (e) above.
• Support for staff's proposal to withhold annual indexing until 2015.
City Response: This approach has been formalized in the proposed by-
law.
• Investigations should be carried out to see if more cost efficiencies can be
achieved.
Staff Response: This has been done and the result is evidenced by the
proposed $383/SDU reduction in the 'development charge for
Transportation from the amount indicated in the October 2, 2013 draft.
b) November 7, 2013 letter from BILD (Mara Samardzic, Planner, Policy and Government
Relations). Subdivision plans currently registered should be held to the existing
development charge schedule, with a sunset clause of December 31, 2014.
City Response: Staff are of the opinion that the transition policy outlined in
paragraph 1.2 (c) above is appropriate. It is also noted that the City indirectly
indicated that a DC increase could be expected by means of its April 5, 2013
Seaton FIS.
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APPENDIX A
COPIES OF WRITTEN SUBMISSIONS RECEIVED
BY THE CITY RE THE 201.3 DC BACKGROUND STUDY
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i
j\\Ni
7
DURHAM REGION
HOME BUILDERS'ASSOCIATION
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October 17,2013
Stan Karwowski
Development Services Department
City Of Pickering
Dear Mr.Karwowski and Development Services Staff,
Re: Pickering.Development Charges Background Study, 2013
DRHBA would like to thank you for forwarding our association with a
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copy of the 2013 City of Pickering DC Background Study. Our
association represents in excess of 170 member companies employing
approximately 5000 employees in the home building and land
development industry across Durham Region.
Historically, our partnership with the City of Pickering on issues
affecting the residential home building industry has been valuable and
rewarding, although with less than 48 hours to offer a response, we
1 would respectfully request more time to properly analyze the
potentially significant and far-reaching effect your proposed 28%
Durham Region Home Builders'Association 1 1050 Simcoe St.N.Suite 10IC,Oshawa,ON L1G 4W5
Watson&Associates Economists Ltd. HAPickering12013 DC Studylresponse to questions by Stakeholders
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increase to DC Charges will have on our local residential home building
industry.
At first glance, DRHBA would request the addition of a compact phase-
in period or "grandfathering clause"for the proposed DCs until July 1,
2014. This would provide opportunities for builders to complete their
existing sales contracts (where revenues are fixed) without serious
impacts to their costs, especially for builders who may already be at the
draft plan approval stage, and whom have already been marketing their
products based on the existing DC Charge.
An additional request, would be for some possible consideration given
to creating a distinction in charges between single and semi-detached
dwelling units, so to offer consumers a potentially more affordable and
cost-effective housing option.
Further, given that Staff's newly proposed 2013 DC Charge would
increase Pickering DC's by approximately 28%over the existing charge,
DRHBA strongly supports staff's consideration to withholding annual
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indexing of the proposed charge until 2015.
DRHBA is very aware that with Staff's new DC proposals, Pickering will
continue to enjoy some of the lowest DC charges in the greater GTA in
addition to the lowest residential tax rate among Durham lakeshore
municipalities, but despite these paramount points in our favour, we
also have some of the lowest absorption rates of new home sales
versus other GTA municipalities. DRHBA would also recommend that
further investigations be undertaken to see if more efficiencies can be
2 achieved in relation to current realities.
Durham Region Home Builders'Association ) 1050 Simcoe St,N.Suite 1.010,Oshawa,ON L1G 4W5
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DRHBA would like to thank you in advance for taking our comments,
and requests into consideration. We hope to speak with you more
regarding this matter.
Sincerely,
Emidio DiPalo— President DRHBA •
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Durham Region Home Builders'Association 1050 Simcue St.N.Suite 101C,Oshawa.,ON L1G 4W5
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WILDj ooltvrtg slats GM
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November 07,2013
Mr.Stan Karwowski •
Division Head,Finance and Treasurer
Corporate Services Department
City of Pickering
One The Esplanade
Pickering,Ontario
LIV 6K7
RE: Proposed City of Pickering Development Charges Background Study,October M3
• The Building Industry and Land Development Association is in receipt of the above noted City.of Pickering
Development Charges Background Study,and would like to submit the following comments for consideration at
this time as you proceed through the process to approve a new development charges by-law. •
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Our members have expressed that the lack of any transition provision included in the current iteration of
the proposed by-law creates uncertainty since there is no guarantee on the development charge rate at the
time subdivision agreements have been/are signed,and plans registered. This means that projects that have
gone onto sales arc now faced with an increased development charge that can no longer be recovered.
Therefore,BILD would request that any plans currently registered be held to the existing development
charge schedule with a sunset clause of December 31,2014 in order to allow for those projects to move
forward with building permit applications and subsequent construction. We feel this is a fair and reasonable
request given the recognized development charge framework in place at the time most purchaseand sale
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agreements were secured.
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We thank City of Pickering staff for hosting members of the BILD Durham Chapter along with other
stakeholders at its meeting regarding the proposed Development Charges Background Study on
October 166. While our comments at this time remain brief,we would ask this not preclude the Association
from taking further positions on this or future development charge by-law discussions with the City.
We trust that you will take our comments under advisement as the City proceeds through a review of its
development charges by-law.
Sincerely,
•
1, x41 }' 1I (Q •
Mara Samardzic,BURP!
Planner,Policy and Government Relations •
Cc: John Koke,BILD Durham Chapter Chair
• Anita DeVries,Durham Region Home Builders'Association
BILD Durham Chapter
•
20 Upjohn Rd,Sulte 100
North York,ON M3B 2V9
Tel:4163913445
Fax:4163912118
• enew.bildgta.ca
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