HomeMy WebLinkAboutPLN 32-22Report to Council
Report Number: PLN 32-22
Date: June 20, 2022
From: Kyle Bentley
Director, City Development & CBO
Subject: Proposed Community Benefits Charge Strategy and By-law
Proposed Changes to the Parkland Conveyance By-law
- Files: F-4920-016 and L-2000-011
Recommendation:
1. That Report PLN 32-22 of the Director, City Development & CBO, respecting the
proposed City of Pickering Community Benefits Charges Strategy and Community
Benefits Charges By-law, and proposed changes to the City of Pickering Parkland
Conveyance By-law, be received for information.
Executive Summary: This Report has been prepared to provide information with respect
to a meeting being held on June 20, 2022. The purpose of the Report, and the public meeting,
is to provide information to stakeholders and other interested parties about two proposed
by-laws arising from recent changes to the Planning Act. The first one is to implement a new
revenue tool called a Community Benefits Charge (“CBC”). The second is to update the City’s
Parkland conveyance requirements, reflecting the reduced maximum alternative rate for
collecting cash-in-lieu of land for park or public recreational purposes. Both by-laws require
community consultation.
A development industry stakeholder meeting was held on June 1, 2022. Following consideration
of comments received at the stakeholders meeting, and at, or following this public meeting, the
by-laws will be finalized and forwarded to Council. A Special Meeting of Council is scheduled
for July 11, 2022.
As a pre-requisite to passing a CBC by-law, a CBC Strategy was prepared, which included a
preliminary draft by-law (see Community Benefits Charges Strategy, prepared by Watson &
Associates Economists Ltd., dated May 20, 2022, Attachment #1, and Proposed Revised Draft
CBC By-law, Attachment #2). A copy of the draft Parkland Dedication By-law is provided as
Attachment #3.
Financial Implications: Watson & Associates estimates the maximum funding available
from CBCs for Pickering, for the study period of mid-2022 to mid-2039, is $12.9 million. This
value is derived from the maximum prescribed land value of 4% of the land proposed for
development, redevelopment or subdivision. The funding required from CBCs to meet the
City’s identified needs is equal to only 2% of the land value. Accordingly, actual collection is
forecasted to be $6.3 million.
PLN 32-22 June 20, 2022
Subject: Proposed Community Benefits Charge Strategy and By-law Page 2
Proposed Changes to the Parkland Conveyance By-law
Discussion:
1. Proposed new by-laws have been prepared for Community Benefits Charges and
Parkland
The COVID-19 Economic Recovery Act received Royal Assent on July 21, 2020.
Schedule 17 of that Act amended the Planning Act with respect to the provisions of
community benefits and parkland dedication. These amendments were proclaimed and
came into effect on September 18, 2020. Municipalities with agreements for community
benefits, under the original height and density bonusing provisions of Section 37 of the
Planning Act, have two years after the date of proclamation (that is, until September 18,
2022) to transition to the new rules under Section 37 of the Act. The new provisions of
Section 37 permit low and single tier municipalities to impose a Community Benefits
Charge under this authority.
2. A Community Benefits Charge is new revenue tool for the City
A Community Benefits Charge (“CBC”) is a financial contribution that is required to be
paid when land is developed to contribute to the “capital costs of facilities, services and
matters” incurred from development or redevelopment, and population growth. Single
and lower tier municipalities may adopt a by-law to impose a CBC to recover the capital
costs that may include:
• land for parks or other public recreational purposes in excess of lands conveyed or
funded by cash-in-lieu of parkland payments under Sections 42 and 51 of the
Planning Act;
• capital costs for services under subsection 2 (4) of the Development Charges Act
that are not intended to be funded under a Development Charges (“DC’) by-law;
and
• capital costs for municipal services ineligible for inclusion in a DC by-law.
There are restrictions on the application of the charges. A CBC may be imposed only
with respect to development or redevelopment that requires:
• the passing of a zoning by-law or of an amendment to a zoning by-law;
• the approval of a minor variance;
• a conveyance of land to which a part lot control by-law applies;
• the approval of a plan of subdivision;
• a consent (land division);
• the approval of a description of a condominium; or
• the issuing of a permit under the Building Code Act, 1992 in relation to a building or
structure.
The regulations cap the amount of the CBC to 4% of the appraised value of the land at
the time of building permit issuance. It would therefore be logical to impose the charge
at the time of building permit issuance for the development.
PLN 32-22 June 20, 2022
Subject: Proposed Community Benefits Charge Strategy and By-law Page 3
Proposed Changes to the Parkland Conveyance By-law
The Planning Act limits the imposition of the CBC to certain types of development. It is
aimed at high density development (as it is replacing the community benefits obtained
though height and density bonusing). Further, certain uses are exempted. Therefore, a
charge cannot be imposed with respect to:
• development or redevelopment of fewer than 10 residential units, and in respect of
buildings or structures with fewer than 5 storeys;
• a building or structure intended for use:
• as a long-term care home;
• as a retirement home;
• by a university, college, or an Indigenous Institute;
• as a memorial home, clubhouse or athletic grounds by an Ontario branch of the
Royal Canadian Legion;
• as a hospice to provide end-of-life care; or
• not-for-profit housing.
Before enacting a CBC By-law, municipalities must prepare a “Community Benefits
Charge Strategy”, that identifies how they will use the collected funds. The CBC
Strategy will detail the anticipated type of development for which CBCs will be charged,
as well as the increased need for the additional services they will fund. The CBC
Strategy must outline the costs and benefits of the additional services, and also identify
any capital grants, subsidies, or contributions available with respect to their capital
costs.
The CBC By-law is appealable to the Ontario Land Tribunal (“OLT”). On appeal, the
OLT may either dismiss the appeal, repeal or amend the by-law, or order that the
council of the municipality repeal or amend the by-law. The CBC By-law continues to
apply while the appeals are resolved at the OLT.
Each year, municipalities will be required to prepare a report detailing the status of the
CBC account, including the funds collected, how they were used or allocated throughout
the year, and what assets were acquired. This requirement is similar to the City’s
current process as it relates to the reporting of DC funds.
3. The City has prepared a Community Benefits Charge Strategy
The City retained Watson & Associates Economists Ltd. to prepare the required
CBC Strategy, and a draft CBC By-law. A copy of the CBC Strategy, dated May 20,
2022, and an updated draft CBC By-law are provided as Attachments #1 and #2 to this
Report.
Following the prescribed methodology, and working closely with senior staff, the following
capital costs were included in the CBC:
• Arts, Culture and Museum Services;
• Animal Adoption Services; and
• Administration Services.
PLN 32-22 June 20, 2022
Subject: Proposed Community Benefits Charge Strategy and By-law Page 4
Proposed Changes to the Parkland Conveyance By-law
The study also considered including costs relating to parkland acquisition beyond what
can be conveyed under the Planning Act. However, it was concluded that additional
examination of those needs is required prior to considering their inclusion in a future
CBC Strategy and By-law.
The study concluded that applying the CBC charge on a per unit basis, consistent with
the structure for DCs, is most appropriate. The DCs establish separate charges based on
the size of apartment units: those with two bedrooms and greater; and those with one
bedroom or less (a bachelor). The per unit charge would also assist with the ease of
administration and implementation of the charges.
The proposed CBC charge would be $910.00 per unit for apartments of two bedrooms
and greater, and $559.00 for one bedroom and bachelor apartment units. Since the
release of the draft by-law on May 20, 2022, a revised By-law has been prepared (see
Attachment #2). A new section 2.12 has been added to incorporate transition
provisions, to provide a grace period to August 31, 2022 inclusive (when the CBC is not
payable) for situations where the City has received a complete building permit
application prior to July 1, 2022, and where building permit issuance is imminent.
4. The City is required to pass a new Parkland Conveyance By-law
According to Section 42 of the recently amended Planning Act, all existing Parkland
By-laws will expire on September 18, 2022. Therefore, the City must pass a new
Parkland By-law prior to that date to continue receiving parkland or cash-in-lieu of
parkland, in accordance with Sections 42 and 51.1 of the Planning Act. A copy of the
proposed Parkland By-law is contained in Attachment #3 to this report. The current draft
contains minor revisions to the By-law since it was originally posted on the website.
The only change proposed to the Parkland By-law is to bring it into conformity with the
parkland rates provided in the Planning Act.
The current Parkland By-law provides for the dedication of land, for park or other public
recreational purposes, at the following rates:
• two percent of the land proposed for industrial or commercial development,
redevelopment, or subdivision of land;
• five percent of the land proposed for development, redevelopment, or subdivision of
land, for purposes other than commercial or industrial purposes; or
• alternatively, one hectare of land for each 300 dwelling units proposed for
development, provided the municipality has an official plan that contains specific
policies dealing with the provision of lands for park or other public recreational
purposes at such a rate;
• or the Council may require, as an alternative to the dedication of land for park or
other public recreational uses, the payment of money equal to the value of the lands
that would otherwise have been conveyed to the City.
PLN 32-22 June 20, 2022
Subject: Proposed Community Benefits Charge Strategy and By-law Page 5
Proposed Changes to the Parkland Conveyance By-law
The Planning Act was amended in 2015 by the addition of a new provision stipulating
that if a municipality authorized the alternative rate of one hectare for each 300 dwelling
units, the Council may require a payment in lieu, calculated by using a rate of one hectare
for each 500 dwelling units proposed or such lesser rate as may be specified in the
by-law.
Reducing the payment rate from one hectare per 300 dwelling units (equating to
33 square metres per dwelling unit) to one hectare per 500 dwelling unit (equating to
20 square metres per unit) was primarily intended to reduce the financial impact of
parkland provision for major high density residential developments.
The Parkland By-law was not updated to reflect this change to the cash-in-lieu alternative
provision, but it is important to point out that the City never levied any payment in lieu
calculated at a rate of one hectare for each 300 dwelling units proposed. To date,
payments in lieu of the conveyance of land for the development, redevelopment or
subdivision of land in the High Density Residential Areas and Mixed Use Areas of the
City have been levied by using the value of five percent of the land.
Notice of the passing of a new Parkland Conveyance By-law must be given and may be
appealed to the OLT.
5. Comments are invited on the proposed CBC Strategy and the draft by-laws
Stakeholder consultation is required in the preparation of the CBC Strategy and By-law.
The proposed CBC Strategy, and draft CBC By-law were made available to the public,
on the City’s website together with the Development Charges Background Study and
draft Development Charges By-law, on May 20, 2022. On June 1, 2022, the City held a
meeting with “industry stakeholders” for the Parkland By-law, and the DC and CBC
studies.
Similarly, the Planning Act requires that the City must consult with such persons and
public bodies as they consider appropriate when passing a new Parkland By-law.
Accordingly, in late May, staff posted a notice regarding the new Parkland By-law on the
City’s website under “Plans, Projects, and Studies” as well as under “Notices”, and
notified persons on the interested party list associated with the new CBC By-law and the
Development Charges By-law Update.
Attachments:
1. Community Benefits Charges Strategy, prepared by Watson & Associates Economists Ltd.,
dated May 20, 2022
2. Proposed Revised Draft Community Benefits Charge By-law
3. Draft Parkland Conveyance By-law
PLN 32-22 June 20, 2022
Subject: Proposed Community Benefits Charge Strategy and By-law Page 6
Proposed Changes to the Parkland Conveyance By-law
Prepared By: Approved/Endorsed By:
Original Signed By Original Signed By
Déan Jacobs, MCIP, RPP Kyle Bentley, P. Eng.
Manager, Policy & Geomatics Director, City Development & CBO
Original Signed By Original Signed By
Catherine Rose, MCIP,RPP Stan Karwowski
Chief Planner Director, Finance & Treasurer
DJ:CR:ld
Recommended for the consideration
of Pickering City Council
Original Signed By
Marisa Carpino, M.A.
Chief Administrative Officer
Watson & Associates Economists Ltd.
905-272-3600
May 20, 2022 info@watsonecon.ca
Community Benefits Strategy
City of Pickering
________________________
For Public Circulation and Comment
Attachment #1 to Report #PLN 32-22
Watson & Associates Economists Ltd.
H:\Pickering\2022 DC and CBC\Report\Pickering 2022 CBC Strategy v2.docx
Table of Contents
Page
Executive Summary ....................................................................................................... i
1. Introduction ...................................................................................................... 1-1
1.1 Purpose of this Document ....................................................................... 1-1
1.2 Legislative Context ................................................................................. 1-2
1.2.1 Bill 197 - COVID-19 Economic Recovery Act, 2020 ................... 1-2
1.3 Current Policies ...................................................................................... 1-4
1.4 Summary of the Process ......................................................................... 1-5
2. Anticipated Development................................................................................ 2-1
2.1 Requirement of the Act ........................................................................... 2-1
2.2 Basis of Population, Household and Employment Forecast ................... 2-1
2.3 Summary of Growth Forecast ................................................................. 2-2
2.4 Land Valuation ...................................................................................... 2-11
3. The Approach to the Calculation of the Charge ........................................... 3-1
3.1 Introduction ............................................................................................. 3-1
3.2 Anticipated Development and Redevelopment ....................................... 3-2
3.3 Services Potentially Involved .................................................................. 3-2
3.4 Increase in the Need for Service ............................................................. 3-2
3.5 Capital Forecast ...................................................................................... 3-3
3.6 Deductions .............................................................................................. 3-3
3.6.1 Reduction for Excess Capacity .................................................. 3-4
3.6.2 Reduction for Benefit to Existing Development .......................... 3-4
3.6.3 Reduction for Anticipated Grants, Subsidies and Other
Contributions .............................................................................. 3-5
3.7 Municipal-wide vs. Area Rating ............................................................... 3-5
3.8 Land Valuation Analysis .......................................................................... 3-6
3.9 Calculation of the Community Benefit Charge ........................................ 3-6
4. C.B.C.-Eligible Cost Analysis ......................................................................... 4-1
Table of Contents (Cont’d)
Page
Watson & Associates Economists Ltd.
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4.1 Introduction ............................................................................................. 4-1
4.2 Allocation of Costs to C.B.C.-eligible Development ................................ 4-1
4.3 C.B.C.-eligible Cost Analysis .................................................................. 4-2
5. C.B.C. Calculation ........................................................................................... 5-1
5.1 Anticipated Funding Recovery ................................................................ 5-1
6. C.B.C. Policy Recommendations and C.B.C. By-law Rules ......................... 6-1
6.1 C.B.C. Policies ........................................................................................ 6-1
6.2 C.B.C. By-law Rules ............................................................................... 6-1
6.2.1 Payment in any Particular Case ................................................. 6-1
6.2.2 Maximum Amount of the Community Benefit Charge ................ 6-2
6.2.3 Exemptions (full or partial) ......................................................... 6-2
6.2.4 Timing of Collection ................................................................... 6-3
6.2.5 In-kind Contributions .................................................................. 6-3
6.2.6 The Applicable Areas ................................................................. 6-4
6.2.7 Special Account ......................................................................... 6-4
6.2.8 Credits ....................................................................................... 6-5
6.2.9 By-law In-Force Date ................................................................. 6-5
6.3 Recommendations .................................................................................. 6-5
7. By-law Implementation ................................................................................... 7-1
7.1 Introduction ............................................................................................. 7-1
7.2 Public Consultation Process ................................................................... 7-1
7.2.1 Required Consultation ............................................................... 7-1
7.2.2 Interested Parties to Consult ...................................................... 7-1
7.3 Anticipated Impact of the Charge on Development ................................. 7-2
7.4 Implementation Requirements ................................................................ 7-2
7.4.1 Introduction ................................................................................ 7-2
7.4.2 Notice of Passage ...................................................................... 7-3
7.4.3 Appeals ...................................................................................... 7-3
7.4.4 In-Kind Contributions ................................................................. 7-4
7.5 Ongoing Application and Collection of C.B.C. funds ............................... 7-6
7.5.1 Introduction ................................................................................ 7-6
7.5.2 Overview of Process and Appraisals ......................................... 7-6
7.5.3 Special Reserve Fund Account .................................................. 7-7
7.6 Transitional Matters .............................................................................. 7-10
7.6.1 Existing Reserves and Reserve Funds .................................... 7-10
7.6.2 Credits under Section 38 of the Development Charges Act ..... 7-10
7.6.3 Continued Application of Previous Section 37 Rules ............... 7-10
Appendix A Background Information on Residential and Non-Residential
Growth Forecast ............................................................................................. A-1
Table of Contents (Cont’d)
Page
Watson & Associates Economists Ltd.
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Appendix B Proposed C.B.C. By-law ...................................................................... B-1
Watson & Associates Economists Ltd.
H:\Pickering\2022 DC and CBC\Report\Pickering 2022 CBC Strategy v2.docx
List of Acronyms and Abbreviations
Acronym Full Description of Acronym
B.U.A. Built-Up Area
C.B.C. Community Benefits Charge
C-I-L Cash-in-lieu
D.C. Development charge
D.C.A. Development Charges Act, 1997, as amended
N.F.P.O.W. No fixed place of work
OLT Ontairo Land Tribunal
O. Reg. Ontario Regulation
P.P.U. Persons per unit
sq.ft. square foot
sq.m square metre
Executive Summary
Watson & Associates Economists Ltd. PAGE i
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Executive Summary
1. The report provided herein represents the Community Benefits Charge (C.B.C.)
Strategy for the City of Pickering required by the Planning Act, as amended. This
report has been prepared in accordance with the methodology required under the
Planning Act. The contents include the following:
• Chapter 1 –Introduction and overview of the legislative requirements of the
Act;
• Chapter 2 – Summary of the residential and non-residential growth forecasts
for the City;
• Chapter 3 – Approach to calculating the C.B.C.;
• Chapter 4 – Review of eligible capital costs;
• Chapter 5 – Calculation of the C.B.C.;
• Chapter 6 – C.B.C. policy recommendations and rules; and
• Chapter 7 – By-law implementation.
2. The Planning Act is the statutory basis to recover these charges. C.B.C.s can be
imposed to recover the costs for:
• land for parks or other public recreational purposes in excess of lands
conveyed or funded by cash-in-lieu of parkland payments under sections 42
and 51 of the Planning Act;
• capital costs for services under subsection 2 (4) of the Development Charges
Act (D.C.A.) that are not intended to be funded under a development charges
(D.C.) by-law; and
• capital costs for municipal services ineligible for inclusion in a D.C. by-law.
In accordance with the Planning Act, capital costs included under a development
charges by-law or parkland funded through a cash-in-lieu (C.I.L.) of parkland by-
law cannot be recovered from C.B.C.s. Furthermore, the act places restrictions on
the application of the charges, i.e., a C.B.C. may not be imposed with respect to:
• development or redevelopment of fewer than 10 residential units, and in
respect of buildings or structures with fewer than five storeys;
• a building or structure intended for use as a long-term care home;
• a building or structure intended for use as a retirement home;
Watson & Associates Economists Ltd. PAGE ii
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• a building or structure intended for use by a university, college, or an
Indigenous Institute;
• a building or structure intended for use as a memorial home, clubhouse or
athletic grounds by an Ontario branch of the Royal Canadian Legion;
• a building or structure intended for use as a hospice to provide end-of-life
care; or
• not-for-profit housing.
3. O. Reg. 509/20 specifies that a maximum charge of 4% of the value of land at the
time of building permit issuance may be imposed. A municipality must undertake a
C.B.C. strategy and follow the required public procedure to enact and C.B.C. by-
law. The C.B.C. by-law is appealable to the Ontario Land Tribunal (OLT).
4. The methodology is detailed in Chapter 4; a simplified summary is provided below.
1) Identify amount, type and location of eligible growth.
2) Identify servicing needs to accommodate growth.
3) Identify capital costs to provide services to meet the needs.
4) Deduct:
• Excess capaicty;
• Grants, subsidies and other contributions; and
• Benefit to existing development.
5) Net costs are then allocated between eligible and ineligible development
types.
6) Net costs compared to 4% of land value to inform the amount of the charge
i.e. rationalize if the maximum C.B.C. rate can be imposed.
5. The City is undertaking a C.B.C. public process and anticipates passing a new by-
law on July 11, 2022. A stakeholder consultation meeting has been set for June 1,
2022 to consult with the development industry stakeholders and receive input on
the matter.
6. The growth forecast (Chapter 2) on which the City-wide C.B.C. is based, projects
80% of the population in high density developments will live in C.B.C.-eligible units.
Average land values of $3.9 million per hectare were determined based on
historical appraisals received for C.I.L. of parkland purposes. Based on the
Watson & Associates Economists Ltd. PAGE iii
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anticipated number of C.B.C. eligible dwelling units and assumed density, a total
forecast land value of $321.9 million was esitmated.
Residential High
Density
Gross Residential
Population Growth
% of Gross
Population in High-
Density Units
Eligible High Density 14,419 80%
Ineligible High Density 3,595 20%
Total Residential
High-Density
Forecast
18,014 100%
7. The study considered needs relating to Arts, Culture, and Museum Services,
Animal Adoption Services, and Adminstration Services. The study also considered
costs relating to parkland acquistion beyond what can be conveyed under the
Planning Act, however, the CIty will be further examing those needs before
considering their inclusion in a future C.B.C. strategy and by-law.
In total, the gross capital costs of the needs being included in the C.B.C.
calculation is $79.3 million.
8. Table ES-1 summarizes the calculation of the C.B.C. The C.B.C. calculation
shows a maximum amount of 2.0% of land value would be necessary to fund the
increase in need for services. It is recommended that the charge be implemented
on a per unit basis, consistent with the City’s D.C. structure for apartments of 2
bedrooms and greater and 1 bedroom and bachelor. The per unit charge structure
will also assist with the ease of administration and implementation of the charges.
The proposed C.B.C. would be $910 per unit for apartments of two bedrooms and
greater and $559 for less than one bedroom and bachelor apartment units.
Watson & Associates Economists Ltd. PAGE iv
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Table ES-1
Summary of Growth-Related Capital Costs
9. Considerations by Council – This Strategy represents the service needs arising
from growth over the forecast period and the costs that can be recovered from
C.B.C.s.
Council will consider the findings and recommendations provided in the report and,
in conjunction with public input, approve such policies and rate it deems
appropriate. These directions will refine the draft C.B.C. by-law which is appended
in Appendix B. These decisions may include:
• adopting the charges and policies recommended herein; and
• considering additional exemptions to the by-law.
Less:
Benefit to
Existing
Development
Non-C.B.C.
Eligible Share
C.B.C. Eligible
Share
Arts, Culture, and Museum Services 73,684,932 40,934,223 27,071,380 5,679,329
Animal Adoption Services 2,831,400 459,590 2,025,454 346,356
Administration Services 2,811,000 1,483,822 1,013,814 313,364
A Total 79,327,332 42,877,634 30,110,649 6,339,048
B Anticipated C.B.C. Residential Dwelling Units (2022-2039)8,144
C Density Assumption (units per hectare)100
D (B/C)Land Area for Residential Dwelling Unit Forecast (hectares)81
E Estimated Average Land Value ($/hectare)3,952,000
F (D*E)Total Estimated Land Value 321,850,880
G (F*4%)Maximum Prescribed Value (4% of Land)12,874,035
H (A/F)Total C.B.C. Required to Fund Needs (% of Land Value)2.0%
Total Proposed C.B.C.
I Gross Population in New C.B.C. Eligible Development 14,423
J (A/I)Cost Per Capita 440
By Residential Unit Type P.P.U.
Apartments - 2 Bedrooms +2.071 910
Apartments - Bachelor and 1 Bedroom 1.271 559
Growth-Related Capital CostGross Capital
Cost Estimate
(2022$)
Description
Report
Watson & Associates Economists Ltd.
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Chapter 1
Introduction
Watson & Associates Economists Ltd. PAGE 1-1
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1. Introduction
1.1 Purpose of this Document
This strategy report has been prepared pursuant to the requirements of the Planning
Act, 1990, (section 37) and, accordingly, recommends the imposition of a Community
Benefits Charge (C.B.C.) and associated policies for the City of Pickering (City).
The City retained Watson & Associates Economists Ltd. (Watson), to undertake the
C.B.C. strategy process. Watson worked with City staff preparing the C.B.C. analysis
and policy recommendations contained within this strategy.
The C.B.C. strategy report, containing the proposed C.B.C. by-law, will be distributed to
members of the public to provide interested parties the background information on the
legislation, the recommendations contained herein, and an outline of the basis for these
recommendations.
This report has been prepared, in the first instance, to meet the statutory requirements
applicable to the City’s C.B.C. strategy, as summarized in Chapter 3. It also addresses
the requirement for “rules” (contained in Chapter 6) and the proposed by-law to be
made available as part of the approval process (included as Appendix C).
In addition, the report is designed to set out sufficient background on the legislation
(Chapter 3) and the policies underlying the proposed by-law, to make the exercise
understandable to those who are involved.
Finally, the report addresses post-adoption implementation requirements (Chapter 7)
which are critical to the successful application of the new policy.
The chapters in the strategy report are supported by Appendices containing the data
required to explain and substantiate the calculation of the charge. A full discussion of
the statutory requirements for the preparation of a strategy and calculation to support
the C.B.C. rate is provided herein.
Watson & Associates Economists Ltd. PAGE 1-2
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1.2 Legislative Context
1.2.1 Bill 197 - COVID-19 Economic Recovery Act, 2020
The COVID-19 Economic Recovery Act received Royal Assent on July 21, 2020.
Schedule 17 of the Act amends the Planning Act with respect to the provisions of
community benefits and parkland dedication. These amendments were proclaimed and
came into effect on September 18, 2020. Municipalities with agreements for community
benefits have two years after the date of proclamation (i.e., September 18, 2022) to
transition to the new rules under s.37 of the Planning Act. Eligible municipalities also
have the ability to impose a C.B.C. under this authority.
Single-tier and lower-tier municipalities may adopt a by-law to impose a C.B.C. against
land to pay for the capital costs of facilities, services and matters required because of
development or redevelopment in the area to which the by-law applies. The capital
costs to be recovered through a C.B.C. may include:
• land for parks or other public recreational purposes in excess of lands conveyed
or funded by cash-in-lieu of parkland payments under sections 42 and 51 of the
Planning Act;
• capital costs for services under subsection 2 (4) of the D.C.A. that are not
intended to be funded under a D.C. by-law; and
• capital costs for municipal services ineligible for inclusion in a D.C. by-law.
There are restrictions on the application of the charges. A C.B.C. may be imposed only
with respect to development or redevelopment that requires:
• the passing of a zoning by-law or of an amendment to a zoning by-law under
section 34;
• the approval of a minor variance under section 45;
• a conveyance of land to which a by-law passed under subsection 50 (7) applies;
• the approval of a plan of subdivision under section 51;
• a consent under section 53;
• the approval of a description under section 9 of the Condominium Act, 1998; or
• the issuing of a permit under the Building Code Act, 1992 in relation to a building
or structure.
Watson & Associates Economists Ltd. PAGE 1-3
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As discussed later, the regulations limit the charge relative to the value of land at the
time of building permit issuance thus, imposing the charge at the time of development
requiring the issuance of a building permit would be prudent.
The Planning Act limits the imposition of the C.B.C. to certain types of development.
Under subsection 37 (3), a C.B.C. may not be imposed with respect to:
• development or redevelopment of fewer than 10 residential units, and in respect
of buildings or structures with fewer than five storeys;
• a building or structure intended for use as a long-term care home;
• a building or structure intended for use as a retirement home;
• a building or structure intended for use by a university, college, or an Indigenous
Institute;
• a building or structure intended for use as a memorial home, clubhouse or
athletic grounds by an Ontario branch of the Royal Canadian Legion;
• a building or structure intended for use as a hospice to provide end-of-life care;
or
• not-for-profit housing.
Before adopting a C.B.C. by-law a municipality must prepare a C.B.C. Strategy that
identifies the facilities, services and matters that will be funded with the charges. The
municipality must consult with such persons and public bodies as the municipality
considers appropriate while preparing the Strategy. Further, Ontario Regulation 509/20
specifies the methodology that must be followed in the Strategy. This includes:
1. An estimate of the anticipated amount, type and location of development and
redevelopment with respect to which community benefits charges will be
imposed;
2. Estimates of the increase in the need for facilities, services and matters
attributable to the anticipated development and redevelopment to which the
C.B.C. by-law would relate;
3. For the facilities, services, and matters included above, an identification of
excess capacity and estimates of the benefit to existing development;
4. Estimates of the capital costs necessary to provide the facilities, services and
matters; and
Watson & Associates Economists Ltd. PAGE 1-4
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5. Identification of any capital grants, subsidies and other contributions made to the
municipality or that the council of the municipality anticipates will be made in
respect of the capital costs.
Once the by-law is passed, the municipality must give notice of passage in accordance
with the regulations and the by-law may be appealed to the Ontario Land Tribunal (OLT)
within 40 days of by-law passage.
The amount of the charge can not exceed an amount equal to the prescribed
percentage of the value of the land on the date of building permit issuance. At present,
the prescribed value is set by regulation at 4% of land value. Moreover, if the
landowner is of the view that the amount of the C.B.C. exceeds the prescribed value,
the landowner may pay the charge under protest. In this circumstance there is an
obligation of the landowner to provide an appraisal. If the municipality disputes the
value of the land identified in the landowner’s appraisal, the municipality must also
provide the owner with an appraisal within the prescribed time period. Moreover, there
is a requirement that the municipality maintains a registry of at least three land
appraisers.
A municipality may allow the landowner to provide in-kind contributions towards the
facilities, services or matters in lieu of paying a C.B.C.
Revenue collected under a C.B.C. by-law must be maintained in a special account and
used for the purposes that the charge was imposed. A municipality must report on the
activity of the special account annually.
1.3 Current Policies
Historically, the City has imposed charges related to community benefits under the prior
Planning Act section 37 provisions. The charges were typically levied to provide for
park improvements and other community services in response to increased
intensification and density allowances. At the time of writing, all financial commitments
relating to prior section 37 agreements have been fulfilled.
Watson & Associates Economists Ltd. PAGE 1-5
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1.4 Summary of the Process
Prior to passing a C.B.C. by-law, subsection 37 (10) of the Planning Act requires the
City to consult with the public and such persons and public bodies as the City considers
appropriate. As such, a meeting has been set for June 1, 2022 with representatives
from the development industry to present the strategy and allow for feedback on the
strategy. The meeting is also being held to present the strategy’s purpose, approach,
and proposed C.B.C. by-law.
Figure 1-1 provides an outline of the schedule to be followed with respect to the C.B.C.
strategy and by-law adoption and implementation process.
Figure 1-1
City of Pickering
Schedule of Key Dates in the C.B.C. Strategy Process
Item Date
1. Data collection, land valuation analysis,
growth forecast development, capital
needs assessment
December 2021 to April 2022
2. Presentation of draft and final CBC
calculations and policies to City Staff,
study process, and preliminary growth
projections to Development Industry
Stakeholders
April 2022 to May 2022
3. Release of C.B.C. Strategy Report and
proposed by-law May 20, 2022
4. Presentation of CBC Strategy and by-law
to Development Industry Stakeholders June 1, 2022
5. Council considers adoption of C.B.C.
strategy and passage of by-law July 11, 2022
6. Notice given of by-law passage No later than 20 days after passage
7. Last day for by-law appeal 40 days after passage
Watson & Associates Economists Ltd.
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Chapter 2
Anticipated Development in
the City of Pickering
Watson & Associates Economists Ltd. PAGE 2-1
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2. Anticipated Development
2.1 Requirement of the Act
Chapter 3 provides the methodology for calculating a C.B.C. as per the Planning Act.
Figure 3-1 presents this methodology schematically. It is noted in the first box of the
schematic that in order to determine the C.B.C. that may be imposed, it is a requirement
of subsection 37 (9) of the Planning Act and O. Reg. 509/20 that “the anticipated
amount, type and location of development and redevelopment, for which a C.B.C. can
be imposed, must be estimated.”
The growth forecast contained in this chapter (with supplemental tables in Appendix A)
provides for the anticipated development for which the City will be required to provide
services over a 17-year (mid-2022 to mid-2039) time horizon.
2.2 Basis of Population, Household and Employment
Forecast
The C.B.C. growth forecast has been derived by Watson. The growth forecast provided
herein builds on growth assumptions established in the Durham Region Growth
Management Strategy (ongoing) and the Region of Durham Regional Transit
Development Charge Background Study (2022). In addition to the Regional
Development Charge Background Study, the following information sources were
consulted:
• City of Pickering Official Plan (Edition 8);
• Durham Region Growth Management Strategy Technical Reports (2021);
• 2006, 2011 and 2016 population, household and employment Census data;
• 2021 population and household Census data;
• Historical residential and non-residential building permit data over the 2012 to
2021 period;
• Residential supply opportunities as provided by the City of Pickering; and
• Discussions with City staff regarding anticipated residential and non-residential
development in the City of Pickering, and specifically the Seaton Community.
Watson & Associates Economists Ltd. PAGE 2-2
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2.3 Summary of Growth Forecast
A detailed analysis of the residential and non-residential growth forecasts is provided in
Appendix A and the methodology employed is illustrated in Figure 2-1. The discussion
provided herein summarizes the anticipated growth for the City and describes the basis
for the forecast. The results of the residential growth forecast analysis are summarized
in Table 2-1 below, and Schedule 1 in Appendix A.
As identified in Table 2-1 and Appendix A, Schedule 1, permanent population in
Pickering is anticipated to reach approximately 189,200 by mid-2039, resulting in an
increase of approximately 82,100 persons, respectively over the longer-term forecast
period.1 2
1 The population figures used in the calculation of the 2022 D.C. include the net Census
undercount, which is estimated at approximately 3.8%.
2 The 2031 Region of Durham Official Plan population target of 225,670 for Pickering,
less the growth allocation for Northeast Pickering of approximately 36,500 persons,
results in an Official Plan population target for Pickering of 189,200 by Mid-2039.
Watson & Associates Economists Ltd. PAGE 2-3
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Figure 2-1
Household and Population Forecast Model
Watson & Associates Economists Ltd. PAGE 2-4
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Table 2-1
City of Pickering
Residential Growth Forecast Summary
Population Institutional
Population4
Population
Excluding
Institutional
Population
Singles &
Semi-
Detached
Multiple
Dwellings2 Apartments3 Other Total
Households
91,160 87,838 573 87,265 20,255 4,850 3,085 25 28,215 3.113
92,080 88,721 806 87,915 20,744 5,381 3,190 15 29,330 3.025
95,240 91,771 776 90,995 21,130 6,060 3,695 30 30,915 2.968
102,940 99,186 839 98,347 22,425 6,805 4,165 30 33,425 2.967
107,100 103,191 876 102,315 22,774 7,622 4,559 30 34,985 2.950
189,200 182,297 1,314 180,983 31,908 18,001 14,733 30 64,672 2.819
920 883 233 650 489 531 105 -10 1,115
3,160 3,050 -30 3,080 386 679 505 15 1,585
7,700 7,415 63 7,352 1,295 745 470 0 2,510
4,160 4,005 37 3,968 349 817 394 0 1,560
82,100 79,106 438 78,668 9,134 10,379 10,174 0 29,687
¹ Census undercount estimated at approximately 3.8%. Note: Population including the undercount has been rounded.
² Includes townhouses and apartments in duplexes.
³ Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
4 Institutional includes special care facilities such as nursing home or residences for senior citizens.
Mid 2006 - Mid 2011
Mid 2011 - Mid 2016
Mid 2006
Mid 2011
Mid 2016
Mid 2022
Mid 2021 - Mid 2022
Hi
s
t
o
r
i
c
a
l
Mid 2039Fo
r
e
c
a
s
t
In
c
r
e
m
e
n
t
a
l
Mid 2021
Mid 2016 - Mid 2021
Population
(Including
Census
Undercount)¹
Year
Excluding Census Undercount Housing Units Person Per Unit
(P.P.U.): Total
Population/
Total
Households
Source: Derived from Durham Region Growth Management Strategy (ongoing) and the Region of Durham Regional Transit Development Charge Background Study (2022), by Watson & Associates
Economists Ltd., 2022.
Mid 2022 - Mid 2039
Note: The 2031 Official Plan population target of 225,670, less the growth allocation for Northeast Pickering of approximately 36,500 persons, results in an Official Plan population target of 189,200 by
Mid 2039
Watson & Associates Economists Ltd. PAGE 2-5
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Figure 2-2
City of Pickering
Annual Housing Forecast[1]
Source: Building permit data from 2011 to 2013 and 2021 from Statistics Canada. Building permits between 2014 and 2020 from the City of Pickering. Figure by Watson & Associates Economists Ltd., 2022.
1 Growth forecast represents calendar year.
283
425
303
379 346
540
1,262
510
573
1,560
1,925 1,925 1,925 1,925
1,805 1,805 1,805 1,805 1,805
1,660 1,660 1,660 1,660 1,660
1,544 1,544 1,544
0
500
1,000
1,500
2,000
2,500
Ho
u
s
i
n
g
U
n
i
t
s
Years
Historical Low Density Medium Density High Density Historical Average
Watson & Associates Economists Ltd. PAGE 2-6
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Provided below is a summary of the key assumptions and findings regarding the City of
Pickering C.B.C. growth forecast:
1. Housing Unit Mix (Appendix A – Schedules 1 and 5)
• The housing unit mix for the City was derived from the Region of Durham
Regional Transit Development Charge Background Study (2022)
• Based on the above indicator, the longer-term household growth forecast for the
City is comprised of a unit mix of 31% low density units (single-detached and
semi-detached), 35% medium density (multiples except apartments) and 34%
high density (bachelor, 1-bedroom and 2-bedroom apartments).
2. C.B.C.-Eligible Units
• Subsection 37 (4) of the Planning Act establishes the criteria for a development
to be C.B.C. eligible. A C.B.C. may be imposed if:
o Development of a proposed building or structure has five or more storeys
at or above ground and has 10 or more residential units;
o Redevelopment of an existing building or structure that will have five or
more storeys at or above ground after redevelopment and proposes to
add 10 or more residential units to an existing building or structure; or
o Such types of development or redevelopment as prescribed. 2020, c. 18,
Sched. 17, section 1.
• The C.B.C.-eligible unit forecast is derived based on the established criteria
above and a detailed review of historical Census housing trends, historical
development activity (as per Schedule 5), active residential development
applications and discussions with City staff regarding anticipated C.B.C.-eligible
developments.
• Based on the above indicators, the City is forecast to accommodate 8,144
C.B.C.-eligible household units over the 17-year forecast period. This translates
to 80% of all high-density units, including accessory apartments, being C.B.C.
eligible from mid-2022 to mid-2039. Table 2-2 and Schedule 2 summarizes the
anticipated amount, type, and location of development for the City by
development location.
3. Geographic Location of C.B.C.-Eligible Residential Development (Appendix A –
Schedule 2)
Watson & Associates Economists Ltd. PAGE 2-7
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• Schedule 2 summarizes the anticipated amount, type, and location of
C.B.C.-eligible development by area for the City.
• In accordance with forecast demand and available land supply, the
amount and percentage of forecast C.B.C.-eligible housing growth
between mid-2022 and mid-2039 by development location is summarized
in Table 2-2.
Table 2-2
City of Pickering
Residential High-Density Growth by Development Area
Development Location
Total High-
Density
Housing
Growth,
mid-2022 to
mid-2039[1]
C.B.C.-
Eligible
Share
C.B.C.-
Eligible
Housing
Growth,
mid-2022 to
mid-2039
Seaton 4,871 80% 3,897
Rest of Pickering 5,303 80% 4,247
Total City of Pickering 10,174 80% 8,144
[1] High density includes accessory apartments, bachelor, 1-bedroom and 2-bedroom+
apartments.
Source: Watson & Associates Economists Ltd.
4. Planning Period
• A 17-year planning horizon has been used, recognizing the anticipated timing of
when the current Regional Official Plan population target for Pickering for 2031
would be achieved.
5. Population in New Units (Appendix A – Schedules 3 and 4)
• The number of new housing units to be constructed in the City of Pickering
during the 17-year planning period is presented in Figure 2-2. Over the 17-year
forecast period, the City is anticipated to average 1,746 new housing units per
year.
Watson & Associates Economists Ltd. PAGE 2-8
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• Institutional population 1 is anticipated to increase by approximately 440 people
between 2022 and 2039.
• Population in new units is derived from Schedules 3 and 4, which incorporate
historical development activity, anticipated units (see unit mix discussion) and
average persons per unit (P.P.U.) by dwelling type for new units.
• Schedule 6 summarizes the average P.P.U. assumed for the new housing units
by age and type of dwelling based on a 2016 custom Census data for the City of
Pickering. The total calculated P.P.U. for all density types represents a 25-year
forecast average. Average P.P.U.s by dwelling type are as follows:
o Low density: 3.561
o Medium density: 2.743
o High density 2: 1.771
6. Existing Units and Population Change (Appendix A – Schedules 3 and 4)
• Existing households for mid-2022 are based on the 2021 Census households,
plus estimated residential units constructed in 2021, assuming a 6-month lag
between construction and occupancy (see Schedule 3).
• The decline in average occupancy levels for existing housing units is calculated
in Schedules 3 to 4, by aging the existing population over the forecast period.
The forecast population decline in existing households over the 2022 to 2039
forecast period is approximately 350.
7. Employment (Appendix A – Schedule 7)
• The employment projections provided herein are derived from the Region of
Durham Regional Transit Development Charge Background Study (2022) and
based on the activity rate method, which is defined as the number of jobs in a
City divided by the number of residents. Key employment sectors include
primary, industrial, commercial/population-related, institutional, and work at
home, which are considered individually below.
1 Institutional includes special care facilities such as nursing home or residences for
senior citizens. A P.P.U. of 1.100 depicts 1-bedroom and 2- or more bedroom units in
these special care facilities.
2 Includes bachelor, 1-bedroom and 2- or more bedroom apartments.
Watson & Associates Economists Ltd. PAGE 2-9
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• 2016 employment data 1 (place of work) for the City of Pickering is outlined in
Schedule 10a. The 2016 employment base is comprised of the following sectors:
o 140 primary (less than 1%);
o 3,225 work at home employment (10%);
o 11,840 industrial (36%);
o 12,670 commercial/population related (39%); and
o 4,885 institutional (15%).
• The 2016 employment by usual place of work, including work at home, is
approximately 32,760. An additional 4,690 employees have been identified for
the City in 2016 that have no fixed place of work (N.F.P.O.W.).2
• Total employment, including work at home and N.F.P.O.W. for the City is
anticipated to reach approximately 65,670 by mid-2039. This represents an
employment increase of approximately 25,410 over the forecast period.3
• Schedule 7, Appendix A, summarizes the employment forecast, excluding work
at home employment and N.F.P.O.W. employment, which is the basis for the
C.B.C. employment forecast. The impact on municipal services from work at
home employees has already been included in the population forecast. The
need for municipal services related to N.F.P.O.W. employees has largely been
included in the employment forecast by usual place of work (i.e., employment
and gross floor area generated from N.F.P.O.W. construction employment).
• Total employment for the City of Pickering (excluding work at home and
N.F.P.O.W. employment) is anticipated to reach approximately 51,400 by mid-
2039. This represents an employment increase of approximately 19,630 over the
forecast period.
Based upon the above information, the following summaries are provided for use in the
calculations presented in chapter 4, as follows:
1 2016 employment is based on Statistics Canada 2016 Place of Work Employment
dataset by Watson & Associates Economists Ltd.
2 No fixed place of work is defined by Statistics Canada as "persons who do not go from
home to the same work place location at the beginning of each shift". Such persons
include building and landscape contractors, travelling salespersons, independent truck
drivers, etc.
3 The 2031 Official Plan employment target of 71,800 is forecast to be achieved after
2039. An additional 4,900 jobs would be assumed for Northeast Pickering, in
accordance with the Official Plan.
Watson & Associates Economists Ltd. PAGE 2-10
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• The services to be provided are either of a primarily residential benefit and have
been allocated a nominal 5% non-residential cost share or are of a benefit to
both residential and non-residential development and have been allocated a 20%
non-residential cost share (Table 2-3).
• Of the residential portion of the costs, 23% of the population is forecast to reside
in high-density residential units (Table 2-4).
• Of those whose reside in high density residential units, 80% are forecast to
reside in units to which the C.B.C. may be imposed (Table 2-5).
Table 2-3
Residential and Non-Residential Growth Share Based on Incremental Growth in
Population and Employment Over the Mid-2022 to Mid-2039 Forecast Period
Residential Population and Non-Residential
Employment Growth
Population/
Employment
Growth
Residential/
Non-
Residential
Growth %
Residential Net Population Growth 79,106 80%
Employment Growth (net of Work at Home &
N.F.P.O.W.) 19,629 20%
Total Population & Employment Growth 98,735 100%
Table 2-4
Low/Medium-Density Growth and High-Density Growth Share
Over the Mid-2022 to Mid-2039 Forecast Period
Residential Density Gross Residential
Population Growth
% of Gross Population
in New Units
Low/Medium Density 61,001 77%
High Density 18,014 23%
Total Residential Forecast 79,015 100%
Watson & Associates Economists Ltd. PAGE 2-11
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Table 2-5
C.B.C. Eligible and Ineligible High-Density Growth Share
Over the Mid-2022 to Mid-2039 Forecast Period
Residential High Density Gross Residential
Population Growth
% of Gross Population
in High-Density Units
Eligible High Density 14,419 80%
Ineligible High Density 3,595 20%
Total Residential High
Density Forecast 18,014 100%
2.4 Land Valuation
As the C.B.C. rate is applied against the value of land the day before a building permit is
issued, average land values are required to be assessed in various locations throughout
the City where the anticipated development and redevelopment is anticipated. These
land values assist in calculating the eligible C.B.C. rate, which can not exceed the
maximum 4% prescribed rate.
Table 2-2 demonstrates that the majority of the forecast C.B.C.-eligible high-density
development will be located outside of the Seaton Lands. Average land values for this
area were estimated based on the City’s historical cash-in-lieu parkland appraisals of
$3.95 million per hectare. Based on an assumed density of 100 units per hectare this
development would produce an equivalent land valuation of $321.9 million (8,144units /
100 units per hectare = 81.44 hectares x $3.95 million/hectare).
Watson & Associates Economists Ltd.
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Chapter 3
Approach to the Calculation
Watson & Associates Economists Ltd. PAGE 3-1
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3. The Approach to the Calculation of the Charge
3.1 Introduction
This chapter addresses the requirements of subsection 37 (9) of the Planning Act and
sections 2 and 3 of O. Reg. 509/20 with respect to the establishment of the need for
service which underpins the C.B.C. calculation. These requirements are illustrated
schematically in Figure 3-1.
Figure 3-1
The Process of Calculating a Community Benefits Charge under the Planning Act
Anticipated
Development &
Redevelopment 1.
Estimated Increase in Need for Service
C.B.C. Eligible Capital Costs By Service
Less: Excess Capacity
Less: Benefit To Existing Development
Less: Grants, Subsidies and Other Contributions
C.B.C. By-law
Spatial
Applicability
Net Costs Recoverable
from C.B.C. Charge
Amount of the
Charge
Financing and
Investment
Considerations
3.
6.
7.
10.
13.
8.
9.
4.
5.
Analysis of Municipal Services & Needs 2.
Eligible Services/
Needs
Ineligible Services/
Needs
Tax Base, User
Rates, etc.
A.Historical s. 37
Capital Services
B.Non-D.C.-Eligible
Services
C.Parkland Development in Excess of What is Provided Through Parkland Dedication/C.I.L.
C.B.C. Maximum
Allowable Amount Test
(4% of Land Value)11.
Land Valuation
Analysis
D.Possible D.C.-Eligible Services Not Included in the D.C.
C.B.C.-Eligible Growth
12.
Watson & Associates Economists Ltd. PAGE 3-2
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3.2 Anticipated Development and Redevelopment
The anticipated development and redevelopment forecast is provided in chapter 2 (with
supplemental tables in Appendix A). This chapter provides for the anticipated overall
growth within the City over a 17-year (mid-2022 to mid-2039) time horizon and then
estimates the residential units eligible to be considered as per subsection 37 (4) of the
Planning Act.
3.3 Services Potentially Involved
As per subsection 37 (5) of the Planning Act, a C.B.C. may be imposed for services that
do not conflict with services or projects provided under a municipality’s D.C. by-law or
parkland dedication by-law. Hence, the service provided under the C.B.C. would be
defined as follows:
(a) land for parks or other public recreational purposes in excess of lands conveyed
or funded by cash-in-lieu of parkland payments under sections 42 and 51 of the
Planning Act;
(b) capital costs for services under subsection 2 (4) of the D.C.A. that are not
intended to be funded under a D.C. by-law; and
(c) capital costs for municipal services ineligible for inclusion in a D.C. by-law.
Examples of services not provided by a D.C. or Parkland Dedication by-law include (but
are not limited to) capital facilities and equipment for municipal parking, airports,
municipal administration building expansions, museums, arts centres, public art,
heritage preservation, landfill, public realm improvements, community gardens, space
for non-profits, etc.
3.4 Increase in the Need for Service
The C.B.C. calculation commences with an estimate of “the increase in the need for
service attributable to the anticipated development,” for eligible services to be covered
by the by-law. There must be some form of link or attribution between the anticipated
development and the estimated increase in the need for service. While the need could
Watson & Associates Economists Ltd. PAGE 3-3
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potentially be expressed generally in terms of units of capacity, a project-specific
expression of need would appear to be most appropriate.
3.5 Capital Forecast
Subsection 37 (2) of the Planning Act provides that, “The council of a local municipality
may by by-law impose C.B.C.s against land to pay for the capital costs of facilities,
services and matters.” The Act does not define what capital costs may be included
within the charge. The Act provides that the C.B.C. charge could include capital costs
for eligible D.C. services that are not intended to be funded under a municipal D.C. by-
law. This provision suggests that capital costs may be defined in an equivalent manner
as the Development Charges Act (D.C.A.). Hence, based on this relationship with the
D.C.A., capital costs may include:
(a) costs to acquire land or an interest therein (including a leasehold interest);
(b) costs to improve land;
(c) costs to acquire, lease, construct or improve buildings and structures;
(d) costs to acquire, lease or improve facilities, including rolling stock (with a useful
life of 7 or more years), furniture and equipment (other than computer
equipment), materials acquired for library circulation, reference, or information
purposes;
(e) interest on money borrowed to pay for the above-referenced costs;
(f) costs to undertake studies in connection with the above-referenced matters; and
(g) costs of the C.B.C. Strategy study.
3.6 Deductions
The section 2 of O. Reg. 509/20 potentially requires that three deductions be made to
the capital costs estimates. These relate to:
• excess capacity;
• benefit to existing development; and
Watson & Associates Economists Ltd. PAGE 3-4
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• anticipated grants, subsidies, and other contributions.
The requirements behind each of these reductions are addressed below.
3.6.1 Reduction for Excess Capacity
Subsection 2 (c) of O. Reg. 509/20 requires the identification of the excess capacity that
exists in relation to the facilities, services and matters referred to in clause 2 (b)
suggesting the need for a potential deduction to the capital. “Excess capacity” is
undefined, but in this case, the excess capacity must be able to meet some or all of the
increase in need for service, in order to potentially represent a deduction. The
deduction of excess capacity from the future increase in the need for the service would
normally occur as part of the conceptual planning and feasibility work associated with
justifying and sizing new facilities, e.g., if a new landfill site to accommodate increased
solid waste generated by the new growth is not required because sufficient excess
capacity is already available, then a landfill site expansion would not be included as an
increase in need, in the first instance.
3.6.2 Reduction for Benefit to Existing Development
Subsection 2 (c) of O. Reg. 509/20 of the D.C.A. provides that the capital estimates
identify extent to which an increase in a facility, service or matter referred to in clause 2
(b) of the regulation would benefit existing development. The general guidelines used
to consider benefit to existing development included:
• the repair or unexpanded replacement of existing assets;
• the elimination of a chronic servicing problem not created by growth; and
• providing services where none previously existed (for example, extending
garbage pickup to the rural area which previously did not receive the municipal
services).
Where existing development has an adequate service level which will not be tangibly
increased by an increase in service, no benefit would appear to be involved. For
example, where expanding existing garbage collection vehicles for future development
simply replicates what existing residents are receiving, the existing developments
receive very limited (or no) benefit as a result.
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In the case of services such as cultural facilities, the service is typically provided on a
municipal-wide system basis. For example, facilities of the same type may provide
different services (i.e., visual art vs. performance art), different programs (i.e., art
classes vs. acting classes), and different time availability for the same service (i.e., art
classes available on Wednesdays in one facility and Thursdays in another). As a result,
residents will travel to different facilities to access the services they want at the times
they wish to use them, and facility location generally does not correlate directly with
residence location. Even where it does, displacing users from an existing facility to a
new facility frees up capacity for use by others and generally results in only a very
limited benefit to existing development. Further, where an increase in demand is not
met for a number of years, a negative service impact to existing development is
involved for a portion of the planning period.
3.6.3 Reduction for Anticipated Grants, Subsidies and Other
Contributions
This step involves reducing the capital costs by capital grants, subsidies, and other
contributions made or anticipated by Council and in accordance with various rules such
as the attribution between the share related to new vs. existing development. That is,
some grants and contributions may not specifically be applicable to growth or where
Council targets fundraising as a measure to offset impacts on taxes.
Although specific grants, subsidies and/or other contributions may not be currently
identified and reduced in the calculations, due diligence will be undertaken by municipal
staff during the annual budget process to net off any future identified funding from these
other sources.
3.7 Municipal-wide vs. Area Rating
This step involves determining whether all the subject costs are to be recovered on a
uniform municipal-wide basis or whether some or all are to be recovered on an area-
specific basis. There is no mandatory requirement to consider area rating of services
(i.e., providing charges for specific areas and services); however, the legislation does
not prohibit area rating. There may be instances where Council may consider varying
rates to align with other policies or possible incentives in the development area.
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Through the C.B.C. strategy process, discussions with municipal staff took place related
to structuring the charge on a municipal-wide vs. area specific basis. As the services
being provided in the strategy are not restricted to one specific area and are anticipated
to be used by all residents within the municipality, the charges have been provided on a
municipal-wide basis. Although the charges are to be calculated and imposed on a
municipal-wide basis, consideration of location of the projects will take place through the
annual budget process.
3.8 Land Valuation Analysis
To facilitate the rate calculation provided in section 3.9, an estimate of the market value
of the land related to the anticipated applicable development/redevelopment presented
in section 3.2, needs to be undertaken. It is noted that the land values may vary based
on a number of factors including location, zoning density, parcel size, etc., however,
these values should estimate the land value the day before building permit issuance.
This data may be available from municipal resources, or the municipality may consider
engaging the assistance of a professional land appraiser.
3.9 Calculation of the Community Benefit Charge
Subsection 37 (32) of the Planning Act provides that the amount of the Planning Act
provides that the maximum charge which can be imposed is prescribed by the
regulations. O. Reg. 509/20, section 3, provides that the maximum charge is to be 4%.
To calculate the rate, the net capital cost (as provided by netting the deductions set out
in section 3.6 from the capital presented in section 3.5) are divided by the land values
related to the anticipated applicable development/redevelopment. This calculation
produces a percentage of the capital cost relative to the land value of development.
This rate can not exceed the maximum prescribed rate of 4% of land value.
Alternatively, a municipality may choose to impose a rate on another basis. For
example, the charge could be calculated on a per dwelling unit basis similar to a
development charge (D.C.). This calculation would be facilitated by dividing the net
capital cost by the forecast incremental gross population growth to arrive at a C.B.C. per
capita. This rate would then be applied to the person per unit occupancy assumptions
for high-density residential dwelling units to determine the charge. Moreover, the
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charge could be denominated based on land area, where the net capital costs would be
divided by the amount of land anticipated to be occupied by the forecast residential
dwelling units constructed over the forecast period.
Watson & Associates Economists Ltd.
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Chapter 4
C.B.C.-Eligible Cost Analysis
Watson & Associates Economists Ltd. PAGE 4-1
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4. C.B.C.-Eligible Cost Analysis
4.1 Introduction
This chapter outlines the basis for calculating eligible costs to be recovered through a
C.B.C. by-law, which are to be applied on a uniform municipal-wide basis. In each
case, the required calculation process set out in O. Reg. 509/20 subsections 2 (a)
through 2 (f) to the Planning Act and described in Chapter 3 was followed in determining
C.B.C.-eligible costs.
In undertaking the C.B.C. Strategy, following services was considered:
• Anticipated capital costs of parkland acquisition beyond those available under the
provisions of the Planning Act;
• Administrative Services, including growth-related studies not eligible under the
D.C.A. and corporate services technology;
• Animal Adoptions Services; and
• Arts, Culture, and Museum Services
While the City does anticipate capital costs of parkland acquisition beyond those
available under the provisions of the Planning Act, the City will be undertaking a parks
needs assessment in the near future to better understand those requirements before
including those costs for recovery in a C.B.C. Strategy.
4.2 Allocation of Costs to C.B.C.-eligible Development
To determine the C.B.C.-eligible capital costs for the City, the gross capital costs were
estimated based on the City’s capital budget and forecast and discussions with City
staff. Having estimated the capital costs for each project, deductions related to excess
capacity, benefit to existing development, and grants, subsidies, or other contributions
were assessed. The resultant net growth-related costs were then allocated to the
C.B.C.-eligible share of the anticipated development based on the following:
• Net capital costs for Animal Adoptions Services and Administrative Services
were apportioned between residential (80%) and non-residential development
(20%) based on the incremental population and employment growth over the
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forecast period (Table 2-3). The net capital costs for Arts, Culture, and Museum
Services were allocated 95% residential development and 5% non-residential
development, reflective of the increase in need for service from these types of
development. This allocation approach between residential and non-residential
development is consistent with the City’s practice within its D.C. background
study.
• The net capital costs associated with residential development were subsequently
allocated between low-density and medium-density development types (77%)
and high-density development (23%) over the forecast period, based on the
respective population growth forecast for these dwelling unit types (Table 2-4).
• Finally, the net capital costs assigned to high-density development were
apportioned to the C.B.C.-eligible development, i.e., buildings with a minimum of
five storeys and at least 10 residential dwelling units. As summarized in Table 2-
5, this type of development accounts for 80% of all high-density residential
dwelling units over the forecast period.
Based on the foregoing, for services allocated between the total population and
employment growth over the forecast period, the net capital cost share attributable to
C.B.C.-eligible development is 14.6%. For Arts, Culture, and Museum Services, the
cost share attributable to C.B.C.-eligible development is approximately 17.3%. The
costs related to undertaking the C.B.C. Strategy Study are 100% attributable to the
C.B.C.-eligible development.
4.3 C.B.C.-eligible Cost Analysis
This section provides for the evaluation of development-related capital requirements
over a 2022 to 2039 planning horizon. The capital cost related to the increase in need
for service are summarized in Table 4-1 and as follows:
• Arts, Culture, and Museum Services – The City’s capital budget identifies a
new Performing Arts Centre as part of the City Centre development and
Museum space within the Pickering Heritage and Community Centre. The
gross capital costs of these projects totals $76.7 million. $40.9 million has been
deducted for the benefit to existing development resulting in $32.8 million net
growth-related costs. After accounting for the benefit of these needs to non-
residential development (i.e. $1.6 million), low/medium density residential
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development (i.e. $24.0 million), and ineligible high density residential
development (i.e. $1.4 million), the potential C.B.C. recoverable costs total $5.7
million.
• Administration Services – The City’s Capital Budget and Forecast identify
growth related study costs that are not eligible for inclusion within the D.C.
background study, costs of undertaking the C.B.C. strategy and future updates,
as well as corporate services technology costs related to the City’s financial
system. The total costs of the needs are $2.8 million. After deducting the share
of the costs that are a benefit to existing development and non-CBC eligible
development, $313,300 has been considered within the calculation of the
charge.
• Animal Adoption Services – The City is constructing a new Animal shelter that
will primarily be utilized in relation to municipal by-law enforcement but will also
contain space related to Animal Adoptions Services. The share of the capital
costs related to Animal Adoptions Services is $2.8 million. Of those costs,
$459,600 has been deducted as benefit to existing development based on the
replacement of the existing animal adoptions facility space. Of the growth-
related costs of $2.4 million, $346,400 is related to the CBC eligible
development after accounting for the non-residential share and non-CBC eligible
residential share of the growth-related costs.
Based on the calculations and allocations to C.B.C.-eligible high-density growth, the
City has identified $6.3 million in eligible net growth-related costs to be included within
the C.B.C. calculations.
Watson & Associates Economists Ltd. PAGE 4-4
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Table 4-1
Capital Costs to be Recovered through Community Benefit Charges
Total Low / Medium
Density Residential
Total High Density
Residential
Ineligible High
Density Residential
Eligible High
Density Residential
2022-2039 % $ % $77%23%20%80%
Arts, Culture, and Museum Services
1 Performing Arts Centre 66,422,932 36,899,961 29,522,971 5% 1,476,149 95% 28,046,823 21,651,090 6,395,733 1,276,129 5,119,604
2
Museum
(Part of Pickering Heritage and Community Centre)7,262,000 4,034,262 3,227,738 5% 161,387 95% 3,066,351 2,367,107 699,244 139,519 559,725
Total - Arts, Culture, and Museum Services 73,684,932 40,934,223 32,750,709 1,637,535 31,113,174 24,018,197 7,094,977 1,415,648 5,679,329
Animal Adoption Services
3 Animal Shelter - Adoption Space 2,831,400 459,590 2,371,810 20% 474,362 80% 1,897,448 1,464,759 432,690 86,334 346,356
Total - Animal Adoption Services 2,831,400 459,590 2,371,810 474,362 1,897,448 1,464,759 432,690 86,334 346,356
Administration Services
4 Community Benefits Strategy (2022)35,000 - 35,000 0%- 100% 35,000 - 35,000 35,000
5 Community Benefit Strategy (2027)35,000 - 35,000 0%- 100% 35,000 - 35,000 35,000
6 Community Benefit Strategy (2032)35,000 - 35,000 0%- 100% 35,000 - 35,000 35,000
7 Community Benefit Strategy (2037)35,000 - 35,000 0%- 100% 35,000 - 35,000 35,000
8 South Pickering Heritage Inventory 62,600 34,776 27,824 20%5,565 80% 22,259 17,183 5,076 1,013 4,063
9
Community Improvement Plans for Durham Live Lands and for
City Centre Lands 174,000 96,662 77,338 20% 15,468 80% 61,870 47,761 14,109 2,815 11,294
10 Seaton Corporate Energy Plan Update 58,000 32,221 25,779 20%5,156 80% 20,623 15,920 4,703 938 3,765
11 Pickering Climate Adaption Plan 174,000 96,662 77,338 20% 15,468 80% 61,870 47,761 14,109 2,815 11,294
12 Natural Capital Asset Evaluation 87,000 48,331 38,669 20%7,734 80% 30,935 23,881 7,054 1,408 5,647
13 Fair Minded Pricing Policy 70,400 39,109 31,291 20%6,258 80% 25,033 19,324 5,708 1,139 4,569
14
Geographic Information Systems (GIS) Corporate Strategic
Plan: 89,000 49,442 39,558 20%7,912 80% 31,646 24,430 7,217 1,440 5,777
15
New Financial System -SAP HR System-Recruiting &
Onboard Module-Phs 2 480,000 266,655 213,345 20% 42,669 80% 170,676 131,756 38,921 7,766 31,155
16
New Financial System - SAP HR System-Learning Mgmt
Module-Phs 3 290,000 161,104 128,896 20% 25,779 80% 103,117 79,602 23,515 4,692 18,823
17 New Financial System-SAP Fleet Module 475,000 263,877 211,123 20% 42,225 80% 168,898 130,383 38,515 7,685 30,830
18 New Financial System-SAP Budget & Salary Module 600,000 333,318 266,682 20% 53,336 80% 213,345 164,695 48,651 9,707 38,944
19 Integrated Community Sustainability Plan 35,000 19,444 15,556 20%3,111 80% 12,445 9,607 2,838 566 2,272
20 Measuring Sustainability Report 41,000 22,777 18,223 20%3,645 80% 14,579 11,254 3,324 663 2,661
21 5-year Capital and Operating Cost Financial Impact Analysis 35,000 19,444 15,556 20%3,111 80% 12,445 9,607 2,838 566 2,272
Total - Administration Services 2,811,000 1,483,822 1,327,178 237,436 1,089,743 733,165 356,577 43,213 313,364
Total 79,327,332 42,877,634 36,449,698 2,349,333 34,100,364 26,216,121 7,884,244 1,545,195 6,339,048
Prj.
No
Potential C.B.C. Recoverable Cost
Residential ShareNon-Residential
Share
Net Growth-Related Cost Net Residential Cost ShareIncreased Service Needs Attributable to Anticipated
Development
Gross Capital
Cost Estimate
(2022$)
Less:
Benefit to
Existing
Development
Watson & Associates Economists Ltd.
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Chapter 5
C.B.C. Calculation
Watson & Associates Economists Ltd. PAGE 5-1
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5. C.B.C. Calculation
5.1 Anticipated Funding Recovery
To summarize the calculation of the charge, the following has been undertaken:
1) Anticipated Development: As presented in Chapter 2, the 17-year growth
forecast provides for 8,144 eligible high-density units (i.e., in buildings containing
a minimum of five storeys and a minimum of 10 residential units).
2) Land Valuation: Estimated land values were based on land appraisals for
payment in lieu of parkland.
3) Identification of a Services: A number of services were considered including
Arts, Culture, and Museum, Animal Adoptions, and Administration Services.
4) C.B.C.-eligible Costs: Capital needs related to the identified services were
provided by City staff and through the City’s capital budget. Gross costs of the
capital projects were assessed for the portion of the projects that would benefit
the existing community versus the future growth. The growth-related costs were
then allocated amongst all types of growth to calculate the amount that is
associated with the C.B.C.-eligible high-density units.
5) Total Land Value: Based on the growth forecast (section 2.4), density
assumptions, and land valuation assessment, the total land value for C.B.C.-
eligible high-density units was calculated to equal approximately $321.9 million.
6) Maximum C.B.C.: As per the Planning Act, the maximum a municipality can
impose for a C.B.C. is equal to 4% of the land value of a property, the day before
building permit issuance. Based on the total land value, the estimated maximum
potential C.B.C. recovery for the City equates to $12.9 million for the 17-year
forecast period.
The City has identified capital costs attributable to eligible high-density growth of $6.3
million which are within the calculated maximum allowable amount of $12.9 million.
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Table 5-1 provides the calculated charges on a per unit basis. The calculation is
generated on a per capita basis and is based upon two forms of housing types
(apartments 2+ bedrooms and apartments bachelor and 1-bedroom). The per unit
charge structure aligns with the City’s D.C. structure for apartment dwelling units and
will assist with the ease of administration and implementation of the charges. The
proposed C.B.C. would be $910 per unit for apartments of two bedrooms and greater
and $559 for less than one bedroom and bachelor apartment units.
Table 5-1
Summary of C.B.C. Calculation
Less:
Benefit to
Existing
Development
Non-C.B.C.
Eligible Share
C.B.C. Eligible
Share
Arts, Culture, and Museum Services 73,684,932 40,934,223 27,071,380 5,679,329
Animal Adoption Services 2,831,400 459,590 2,025,454 346,356
Administration Services 2,811,000 1,483,822 1,013,814 313,364
A Total 79,327,332 42,877,634 30,110,649 6,339,048
B Anticipated C.B.C. Residential Dwelling Units (2022-2039)8,144
C Density Assumption (units per hectare)100
D (B/C)Land Area for Residential Dwelling Unit Forecast (hectares)81
E Estimated Average Land Value ($/hectare)3,952,000
F (D*E)Total Estimated Land Value 321,850,880
G (F*4%)Maximum Prescribed Value (4% of Land)12,874,035
H (A/F)Total C.B.C. Required to Fund Needs (% of Land Value)2.0%
Total Proposed C.B.C.
I Gross Population in New C.B.C. Eligible Development 14,423
J (A/I)Cost Per Capita 440
By Residential Unit Type P.P.U.
Apartments - 2 Bedrooms +2.071 910
Apartments - Bachelor and 1 Bedroom 1.271 559
Growth-Related Capital CostGross Capital
Cost Estimate
(2022$)
Description
Watson & Associates Economists Ltd.
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Chapter 6
C.B.C. Policy
Recommendations and C.B.C.
By-law Rules
Watson & Associates Economists Ltd. PAGE 6-1
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6. C.B.C. Policy Recommendations and C.B.C. By-
law Rules
6.1 C.B.C. Policies
Planning Act, section 37 and O. Reg. 509/20 outline the required policies that must be
considered when adopting a C.B.C. by-law. The following subsections set out the
recommended policies governing the calculation, payment and collection of C.B.C.s in
accordance with the legislation.
6.2 C.B.C. By-law Rules
6.2.1 Payment in any Particular Case
In accordance with the Planning Act, subsection 37 (3), a C.B.C. may be imposed only
with respect to development or redevelopment that requires one of the following:
(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;
(f) the approval of a description under section 9 of the Condominium
Act, 1998; or
(g) the issuing of a permit under the Building Code Act, 1992 in relation
to a building or structure.”
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6.2.2 Maximum Amount of the Community Benefit Charge
Subsection 37 (32) of the Planning Act states that the amount of a C.B.C. payable in
any particular case shall not exceed an amount equal to the prescribed percentage of
the value of the land as of the valuation date.
Based on section 3 of O. Reg. 509/20, the prescribed percentage is 4%.
6.2.3 Exemptions (full or partial)
The following exemptions are provided under subsection 37 (4) of the Planning Act and
section 1 of O. Reg. 509/20:
• Development of a proposed building or structure with fewer than five storeys at or
above ground;
• Development of a proposed building or structure with fewer than 10 residential
units;
• Redevelopment of an existing building or structure that will have fewer than five
storeys at or above ground after the redevelopment;
• Redevelopment that proposes to add fewer than 10 residential units to an
existing building or structure;
• Such types of development or redevelopment as are prescribed:
o Development or redevelopment of a building or structure intended for use
as a long-term care home within the meaning of subsection 2 (1) of the
Long-Term Care Homes Act, 2007.
o Development or redevelopment of a building or structure intended for use
as a retirement home within the meaning of subsection 2 (1) of the
Retirement Homes Act, 2010.
o Development or redevelopment of a building or structure intended for use
by any of the following post-secondary institutions for the objects of the
institution:
i. a university in Ontario that receives direct, regular and ongoing
operating funding from the Government of Ontario,
ii. a college or university federated or affiliated with a university
described in subparagraph i,
iii. an Indigenous Institute prescribed for the purposes of section 6 of
the Indigenous Institutes Act, 2017.
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o Development or redevelopment of a building or structure intended for use
as a memorial home, clubhouse or athletic grounds by an Ontario branch
of the Royal Canadian Legion.
o Development or redevelopment of a building or structure intended for use
as a hospice to provide end-of-life care.
o Development or redevelopment of a building or structure intended for use
as residential premises by any of the following entities:
i. a corporation to which the Not-for-Profit Corporations Act, 2010
applies that is in good standing under that Act and whose primary
object is to provide housing,
ii. a corporation without share capital to which the Canada Not-for-
profit Corporations Act applies, that is in good standing under that
Act and whose primary object is to provide housing,
iii. a non-profit housing co-operative that is in good standing under the
Co-operative Corporations Act.
In addition to the exemptions noted above, the C.B.C. will not apply to buildings or
structures owned by and used for the purposes of any municipality, local board, or
Board of Education.
6.2.4 Timing of Collection
The C.B.C.s imposed are calculated, payable, and collected upon issuance of a building
permit for eligible development or redevelopment.
6.2.5 In-kind Contributions
A municipality that has passed a C.B.C. by-law may allow the landowner to provide to
the municipality: facilities, services, or matters required because of development or
redevelopment in the area to which the by-law applies.
Prior to providing these contributions, the municipality shall advise the landowner of the
value that of the in-kind contributions that will be attributed to them. This value shall be
deducted from the amount the landowner would otherwise be required to pay under the
C.B.C. by-law.
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6.2.6 The Applicable Areas
The C.B.C. by-law will apply to all lands within the City.
6.2.7 Special Account
All money received by the municipality under a C.B.C. by-law shall be paid into a
special account. The money contained within the special account:
• may be invested in securities in which the municipality is permitted to invest
under the Municipal Act, 2001, and the earnings derived from the investment of
the money shall be paid into a special reserve fund account; and
• must have at least 60 percent of the funds spent or allocated at the beginning of
the year.
In addition to the monies collected under a C.B.C. by-law, transitional rules for
transferring existing reserve funds are provided in subsection 37 (51) of the Planning
Act. These rules apply for any existing reserve funds related to a service that is not
listed in subsection 2 (4) of the D.C.A., as well as reserve funds established under
section 37 of the Planning Act prior to Bill 197.
1. If the municipality passes a C.B.C. by-law under this section before the specified
date, the municipality shall, on the day it passes the by-law, allocate the money in
the special account or reserve fund to the special account referred to in subsection
(45) of the Planning Act.
2. If the municipality has not passed a C.B.C. by-law under this section before the
specified date, the special account or reserve fund is deemed to be a general
capital reserve fund for the same purposes for which the money in the special
account or reserve fund was collected.
3. Despite paragraph 2, subsection 417 (4) of the Municipal Act, 2001 (a provision
which requires the funds raised for a reserve fund must only be used for the
intended purpose) and any equivalent provision of do not apply with respect to the
general capital reserve fund referred to in paragraph 2.
4. If paragraph 2 applies and the municipality passes a C.B.C. by-law under this
section on or after the specified date, the municipality shall, on the day it passes the
by-law, allocate any money remaining in the general capital reserve fund referred to
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in paragraph 2 to the special account referred to in subsection (45) of the Planning
Act.
Based on the above, there are not existing D.C. reserve funds that would be transferred
to the C.B.C. special account.
6.2.8 Credits
Subsection 37 (52) of the Planning Act indicates that any credits that were established
under section 38 of the D.C.A. and that are not related to a service that is listed in
subsection 2 (4) of the D.C.A., may be used by the holder of the credit with respect to a
charge that the holder is required to pay under a C.B.C. by-law.
6.2.9 By-law In-Force Date
A C.B.C. by-law comes into force on the day it is passed, or the day specified in the by-
law, whichever is later.
6.3 Recommendations
It is recommended that Council:
“Adopt the C.B.C. approach to calculate the charges on a uniform City-wide
basis;”
“Approve the capital project listing set out in Chapter 4 of the C.B.C. Strategy
dated May 13, 2022, subject to further annual review during the capital budget
process;”
“Create a special reserve fund account which will contain all C.B.C. monies
collected;”
“Use C.B.C.s collected to fund Parkland Acquisition and C.B.C. Strategy needs
only;”
“Impose the C.B.C. of $910 per 2 bedroom and greater apartment dwelling unit
and $559 per bachelor and one bedroom apartment dwelling unit on the day
before a building permit is issued;”
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“Approve the C.B.C. Strategy dated May 13, 2022;" and
“Approve the C.B.C. By-law as set out in Appendix B”
Watson & Associates Economists Ltd.
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Chapter 7
By-law Implementation
Watson & Associates Economists Ltd. PAGE 7-1
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7. By-law Implementation
7.1 Introduction
This chapter addresses the public consultation process and by-law implementation
requirements for the imposition of a C.B.C. by-law. Figure 7-1 provides an overview of
the process.
7.2 Public Consultation Process
7.2.1 Required Consultation
In establishing the policy for which a C.B.C. strategy and by-law will be based,
subsection 37 (10) of the Planning Act requires that:
“In preparing the community benefits strategy, the municipality shall
consult with such persons and public bodies as the municipality considers
appropriate.”
As there is no specific guidance as to which parties the municipality shall consult with,
municipalities may establish their own policy for public consultation. The policy for
public consultation should be designed to seek the co-operation and participation of
those involved, in order to produce the most suitable policy. Municipalities may
consider a public meeting, similar to that undertaken for D.C. study processes
(however, this is not a mandated requirement). This could also include a presentation
to Council and the public (including development industry stakeholder) on the findings of
the C.B.C. strategy, advanced notice of the meeting, and consideration for delegations
from the interested parties.
7.2.2 Interested Parties to Consult
There are three broad groupings of the public who are generally the most concerned
with municipal C.B.C. policy.
1. The first grouping is the residential development community, consisting of land
developers and builders, who will typically be responsible for generating the majority
of the C.B.C. revenues. Others, such as realtors, are directly impacted by C.B.C.
policy. They are, therefore, potentially interested in all aspects of the charge,
Watson & Associates Economists Ltd. PAGE 7-2
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particularly the percentage applicable to their properties, projects to be funded by
the C.B.C. and the timing thereof, and municipal policy with respect to development
agreements and in-kind contributions.
2. The second public grouping embraces the public at large and includes taxpayer
coalition groups and others interested in public policy.
3. The third grouping is the non-residential mixed-use development sector, consisting
of land developers and major owners or organizations with significant construction
plans for mixed use developments. Also involved are organizations such as
Industry Associations, the Chamber of Commerce, the Board of Trade, and the
Economic Development Agencies, who are all potentially interested in municipal
C.B.C. policy. Their primary concern is frequently with the percentage charge
applicable to their lands, exemptions, and phase-in or capping provisions in order to
moderate the impact.
As noted in section 1.4, through the C.B.C. strategy process, the City’s consultation
process includes meetings with the development community and Council.
7.3 Anticipated Impact of the Charge on Development
The establishment of sound C.B.C. policy often requires the achievement of an
acceptable balance between two competing realities. The first is that increased
residential development fees (such as a C.B.C.) can impact project feasibility in some
cases (e.g., rental apartments). Secondly, C.B.C.s or other municipal capital funding
sources need to be obtained in order to help ensure that the necessary infrastructure
and amenities are installed. The timely installation of such works is a key requirement
in providing adequate service levels and in facilitating strong economic growth,
investment, and wealth generation.
7.4 Implementation Requirements
7.4.1 Introduction
Once the City has calculated the charge, prepared the complete strategy, carried out
the public process, and passed a new by-law, the emphasis shifts to implementation
matters.
Watson & Associates Economists Ltd. PAGE 7-3
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These include notices, potential appeals and complaints, in-kind contributions, and
finally the collection of revenues and funding of projects.
The sections that follow provide an overview of the requirements in each case.
7.4.2 Notice of Passage
In accordance with subsection 37 (13) of the Planning Act, when a C.B.C. by-law is
passed, the clerk of the municipality shall give written notice of the passing and of the
last day for appealing the by-law (the day that is 40 days after the day it was passed).
Such notice must be given no later than 20 days after the day the by-law is passed (i.e.,
as of the day of newspaper publication or the mailing of the notice).
Section 4 of O. Reg. 509/20 further defines the notice requirements which are
summarized as follows:
• notice shall be given by publication in a newspaper which is (in the clerk’s
opinion) of sufficient circulation to give the public reasonable notice, or by
personal service, fax or mail to every owner of land in the area to which the by-
law relates;
• subsection 4 (2) lists the persons/organizations who must be given notice; and
• subsection 4 (5) lists the seven items that the notice must cover.
7.4.3 Appeals
Subsections 37 (13) to 37 (31) of the Planning Act set out the requirements relative to
making and processing a C.B.C. by-law appeal as well as an OLT hearing in response
to an appeal. Any person or organization may appeal a C.B.C. by-law to the OLT by
filing a notice of appeal with the clerk of the municipality, setting out the objection to the
by-law and the reasons supporting the objection. This must be done by the last day for
appealing the by-law, which is 40 days after the by-law is passed.
The municipality is carrying out a public consultation process, in order to address the
issues that come forward as part of that process, thereby avoiding or reducing the need
for an appeal to be made.
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7.4.4 In-Kind Contributions
Subsections 37 (6) to 37 (8) provide the rules for in-kind contributions. An owner of land
may provide the municipality facilities, services, or matters required because of
development or redevelopment in the area to which the by-law applies. Prior to
providing these contributions, the municipality shall advise the owner of the land of the
value that will be attributed to the contributions. The value of the contributions shall be
deducted from the amount the owner of the land would otherwise have to pay under the
C.B.C. by-law.
Watson & Associates Economists Ltd. PAGE 7-5
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Figure 7-1
The Process of Required for Passing a Community Benefits Charge By-law under the Planning Act
Watson & Associates Economists Ltd. PAGE 7-6
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7.5 Ongoing Application and Collection of C.B.C. funds
7.5.1 Introduction
Once the municipality passes a C.B.C. by-law, development or redevelopment that
meets the requirements of the C.B.C. by-law will pay a C.B.C. based on the value of
their land. The following sections describe the overall process and discusses the
approach to appraisals and use of the special account as set out in the Planning Act.
7.5.2 Overview of Process and Appraisals
Figure 7-2 provides an overview of the process for application of the C.B.C. by-law and
collection of C.B.C. funds.
Once the C.B.C. by-law is in place, as development or redevelopment that meets the
eligibility criteria proceeds (i.e., prior to issuance of a building permit), the municipality
collects C.B.C.s based on the per unit charge as set out in the by-law and C.B.C.
strategy.
If the landowner is of the view that the amount of the C.B.C. exceeds the prescribed
value of 4% of their land value on the day before building permit issuance, the
landowner may pay the charge under protest. In this circumstance there is an
obligation of the landowner to provide an appraisal. If the municipality disputes the
value of the land identified in the landowner’s appraisal, the municipality must also
provide the owner with an appraisal within the prescribed time period.
If the City agrees with the landowner’s appraised value, then the owner pays their
C.B.C.s based on 4% of the land value to the City and the funds will then be deposited
into the special account.
If the City does not agree with the appraisal provided by the owner, the City has 45 days
to provide the owner of the land with their own appraisal value. Then:
• If no appraisal is provided to the owner within 45 days, the owner’s appraisal is
deemed accurate and the difference in the amounts shall be refunded to the
owner.
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• If the municipality’s appraisal is within 5% of the landowner’s appraisal, the
landowner’s appraisal is deemed accurate, and the municipality shall refund the
difference in the amounts to the owner.
• If the appraisal is more than 5% higher than the landowner’s appraisal, the
municipality shall request an appraisal be undertaken by an appraiser, selected
by the landowner, from the list of approved appraisers provided by the
municipality. This must be undertaken within 60 days. This final appraisal is
deemed accurate for the purposes of calculating the applicable C.B.C.
• In regard to the last bullet, subsection 37 (42) and 37 (43) require the
municipality to maintain a list of at least three persons who are not employees of
the municipality or members of Council and have an agreement with the
municipality to perform appraisals for the above. This list is to be maintained
until the C.B.C. by-law is repealed or the day on which there is no longer any
refund that could be required (whichever is later).
7.5.3 Special Reserve Fund Account
All funds collected under the C.B.C. by-law are to be deposited into a special account.
Subsections 37 (45) to 37 (48) of the Planning Act outline the rules with respect to the
special reserve fund account. As noted in subsection 6.2.7, these rules are as follows:
• All money received under a C.B.C. by-law shall be paid into a special account;
• The money in the special account may be invested in securities (as permitted
under the Municipal Act) and the interest earnings shall be paid into the special
account;
• In each year, a municipality shall spend or allocate at least 60 percent of the
monies that are in the special account at the beginning of the year; and
• The municipality shall provide reports and information as set out in section 7 of
O. Reg. 509/20
• In regard to the third bullet, it is suggested that the annual capital budget for the
City directly list the works which are being undertaken and/or to which monies
from this fund are being allocated toward.
As per this C.B.C. strategy, the growth-related services (as outlined in Chapter 4), form
the anticipated capital needs required to service growth over the 17-year forecast
period. Other services, however, may be considered by Council in the future and are
subject to approval by resolution and inclusion in the annual budget process.
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Furthermore, any additional services approved and funded from C.B.C. revenue in the
future will be reported on through an annual C.B.C. reserve fund statement, which will
form part of the City’s overall year-end statements.
During the annual budget process, the use of C.B.C. funding will be reviewed, and the
capital costs associated with each eligible service and capital project will be confirmed
and identified for approval of Council.
Watson & Associates Economists Ltd. PAGE 7-9
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Figure 7-2
City of Pickering
Community Benefits Charge Application and Calculation Process
Building Permit Issuance
Collect C.B.C.s
Payment Under Protest.
If the land owner disputes the C.B.C.s
exceed the 4% of land value, the land
owner is to provide the municipality with
an appraisal within 30 days.
No Refund Required
Appraisal Provided?
No
Yes
Yes
Municipal
Consideration of
Appraisal
Agree
Municipality to Undertake Appraisal
Within 45 Days
Disagree
Land Owner and
Municipal Appraisals
Within 5%?
Yes
No
The land owner shall select a person
from a list of appraisers to perform
a final appraisal within 60 days,
third appraisal (binding).
Determination of the Community
Benefits Charge (C.B.C.)
Deposit Funds into Special Account
No
Notify the Land Owner
The municipality shall immediately
refund the difference in C.B.C.s
as a result of appraisal, if any.
Watson & Associates Economists Ltd. PAGE 7-10
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7.6 Transitional Matters
7.6.1 Existing Reserves and Reserve Funds
The Planning Act, subsection 37 (49) to subsection 37 (51) provides transitional
provisions for:
1. A special account established under the previous section 37 rules; and
2. A D.C. reserve fund for which services are no longer eligible.
With respect to item 1, funds collected under previous s.37 agreements have been
spent and there are no further financial obligations. With respect to item 2, the service
areas for which the City’s existing D.C. reserve funds apply continue to be eligible for
inclusion within a D.C. by-law.
7.6.2 Credits under Section 38 of the Development Charges Act
The Planning Act (subsection 37 (52)) provides that, if a municipality passes a C.B.C.
by-law before September 18, 2022, any credits held for services that are no longer D.C.
eligible, may be used against payment of a C.B.C. by the landowner. The City does not
currently hold credits related to the services which are no longer D.C. eligible, therefore,
there are no adjustment against future payments of a C.B.C. to apply.
7.6.3 Continued Application of Previous Section 37 Rules
Subsection 37.1 of the Planning Act provides for transitional matters regarding previous
section 37 rules. Any charges that are currently in place under the previous rules, may
remain in place until the municipality passes a C.B.C. by-law or September 18, 2022,
whichever comes first. Any developments that were subject to an agreement under the
prior Section 37 of the Planning Act prior to the proposed C.B.C. by-law coming into
force and effect shall have the amount paid under the Section 37 agreement credited
against the C.B.C. payable. The amount credited against the charge payable shall be
the amount paid under the prior Section 37 agreement that relates to the proposed
development. In no case shall the credit be greater than the C.B.C. otherwise payable.
Appendices
Watson & Associates Economists Ltd. PAGE A-1
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Appendix A
Background Information on
Residential and Non-
Residential Growth Forecast
Watson & Associates Economists Ltd. PAGE A-2
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Schedule 1
City of Pickering
Residential Growth Forecast Summary
Population Institutional
Population
Population
Excluding
Institutional
Population
Singles &
Semi-
Detached
Multiple
Dwellings2 Apartments3 Other Total
Households
91,160 87,838 573 87,265 20,255 4,850 3,085 25 28,215 3.113
92,080 88,721 806 87,915 20,744 5,381 3,190 15 29,330 3.025
95,240 91,771 776 90,995 21,130 6,060 3,695 30 30,915 2.968
102,940 99,186 839 98,347 22,425 6,805 4,165 30 33,425 2.967
107,100 103,191 876 102,315 22,774 7,622 4,559 30 34,985 2.950
189,200 182,297 1,314 180,983 31,908 18,001 14,733 30 64,672 2.819
920 883 233 650 489 531 105 -10 1,115
3,160 3,050 -30 3,080 386 679 505 15 1,585
7,700 7,415 63 7,352 1,295 745 470 0 2,510
4,160 4,005 37 3,968 349 817 394 0 1,560
82,100 79,106 438 78,668 9,134 10,379 10,174 0 29,687
¹ Census undercount estimated at approximately 3.8%. Note: Population including the undercount has been rounded.
² Includes townhouses and apartments in duplexes.
³ Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Mid 2006 - Mid 2011
Mid 2011 - Mid 2016
Mid 2006
Mid 2011
Mid 2016
Mid 2022
Mid 2021 - Mid 2022
Hi
s
t
o
r
i
c
a
l
Mid 2039Fo
r
e
c
a
s
t
In
c
r
e
m
e
n
t
a
l
Mid 2021
Mid 2016 - Mid 2021
Population
(Including
Census
Undercount)¹
Year
Excluding Census Undercount Housing Units Person Per Unit
(P.P.U.): Total
Population/
Total
Households
Source: Derived from Durham Region Growth Management Strategy (ongoing) and the Region of Durham Regional Transit Development Charge Background Study (2022), by Watson & Associates
Economists Ltd., 2022.
Mid 2022 - Mid 2039
Note: The 2031 Official Plan population target of 225,670, less the growth allocation for Northeast Pickering of approximately 36,500 persons, results in an Official Plan population target of 189,200 by
Mid 2039
Watson & Associates Economists Ltd. PAGE A-3
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Figure A-1
City of Pickering
Annual Housing Forecast[1]
Source: Building permit data from 2011 to 2013 and 2021 from Statistics Canada. Building permits between 2014 and 2020 from the City of Pickering. Figure by Watson & Associates Economists Ltd., 2022.
1 Growth forecast represents calendar year.
283
425
303
379 346
540
1,262
510 573
1,560
1,925 1,925 1,925 1,925
1,805 1,805 1,805 1,805 1,805
1,660 1,660 1,660 1,660 1,660
1,554 1,554 1,554
0
500
1,000
1,500
2,000
2,500
Ho
u
s
i
n
g
U
n
i
t
s
Years
Historical Low Density Medium Density High Density Historical Average
Watson & Associates Economists Ltd. PAGE A-4
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Schedule 2
City of Pickering
Estimate of the Anticipated Amount, Type and Location of
Residential Development for Which Community Benefits Charges Can Be Imposed
Seaton 2022 - 2039 6,229 7,163 974 3,897 4,871 23,134 50,458 -12 50,446 0 50,446
Rest of Pickering 2022 - 2039 2,905 3,216 1,056 4,247 5,303 16,727 28,557 -335 28,222 438 28,660
2022 - 2039 9,134 10,379 2,030 8,144 10,174 29,687 79,015 -347 78,668 438 79,106
1 Includes townhouses and apartments in duplexes.
2 Includes accessory apartments, bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Development Timing Single & Semi-
Detached Multiples1 Total
Location
Residential Units In New Units Population
Change
Gross Population Existing Unit
Net Population
Increase,
Excluding
Institutional
Institutional
Population
Net Population
Including
Institutional
Source: Derived from Durham Region Growth Management Strategy (ongoing) and the Region of Durham Regional Transit Development Charge Background Study (2022), by Watson & Associates Economists Ltd., 2022.
City of Pickering
Apartments2
Units in C.B.C.
Ineligble
Buildings
Units in C.B.C.
Eligble Buildings
Total Apartment
Buildings
Watson & Associates Economists Ltd. PAGE A-5
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Schedule 3
City of Pickering
Current Year Growth Forecast
Mid 2021 to Mid 2022
Mid 2021 Population 99,186
Occupants of Units (2)1,560
New Housing Units,multiplied by P.P.U. (3)2.710
Mid 2021 to Mid 2022 gross population increase 4,227 4,227
Occupants of New Units 33
Equivalent Institutional Units,multiplied by P.P.U. (3)1.100
Mid 2021 to Mid 2022 gross population increase 36 36
Decline in Housing Units (4)33,425
Unit Occupancy,multiplied by P.P.U. decline rate (5)-0.008
Mid 2021 to Mid 2022 total decline in population -258 -258
Population Estimate to Mid 2022 103,191
Net Population Increase, Mid 2021 to Mid 2022 4,005
(1)2016 and 2021 population based on Statistics Canada Census unadjusted for Census undercount.
(2)
(3)Average number of persons per unit (P.P.U.) is assumed to be:
Singles & Semi Detached 3.904 22%0.873
Multiples (6)2.882 52%1.509
Apartments (7)1.294 25%0.327
Total 100%2.710
¹ Based on 2016 Census custom database
² Based on Building permit/completion activity
(4)2016 and 2021 households taken from Statistics Canada Census.
(5)Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.
(6)Includes townhouses and apartments in duplexes.
(7)Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note:Numbers may not add to totals due to rounding.
Estimated residential units constructed, Mid-2021 to the beginning of the growth period assuming a six-month lag between construction
and occupancy.
Population
Structural Type Persons Per Unit¹
(P.P.U.)
% Distribution of
Estimated Units²
Weighted Persons
Per Unit Average
Watson & Associates Economists Ltd. PAGE A-6
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Schedule 4
City of Pickering
Growth Forecast
Mid 2022 to Mid 2039
Mid 2022 Population 103,191
Occupants of Units (2)29,687
New Housing Units,multiplied by P.P.U. (3)2.662
Mid 2022 to Mid 2039 gross population increase 79,014 79,014
Occupants of New Units 399
Equivalent Institutional Units,multiplied by P.P.U. (3)1.100
Mid 2022 to Mid 2039 gross population increase 439 439
Decline in Housing Units (4)34,985
Unit Occupancy,multiplied by P.P.U. decline rate (5)-0.010
Mid 2022 to Mid 2039 total decline in population -347 -347
Population Estimate to Mid 2039 182,297
Net Population Increase, Mid 2022 to Mid 2039 79,106
(1)Mid 2022 Population based on:
(2)Based upon forecast building permits/completions assuming a lag between construction and occupancy.
(3)Average number of persons per unit (P.P.U.) is assumed to be:
Singles & Semi Detached 3.561 31%1.096
Multiples (6)2.743 35%0.959
Apartments (7)1.771 34%0.607
one bedroom or less 1.271
two bedrooms or more 2.071
Total 100%2.662
¹ Persons per unit based on Statistics Canada Custom 2016 Census database.
² Forecast unit mix based upon historical trends and housing units in the development process.
(4)Mid 2022 households based upon 30,915 (2016 Census) + 1,560 (Mid 2016 to Mid 2022 unit estimate) = 34,985
(5)Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.
(6)Includes townhouses and apartments in duplexes.
(7)Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note:Numbers may not add to totals due to rounding.
Weighted Persons
Per Unit AverageStructural Type Persons Per Unit¹
(P.P.U.)
% Distribution of
Estimated Units²
2016 Population (91,771) + Mid 2016 to Mid 2022 estimated housing units to beginning of forecast period (1,560 x = 4,086) + (30,915 x
0.2372 = 7,334) = 103,191
Population
Watson & Associates Economists Ltd. PAGE A-7
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Schedule 5
City of Pickering
Historical Residential Building Permits
Years 2012 to 2021
Residential Building Permits
Total
2012 237 46 0 283
2013 148 274 3 425
2014 180 98 25 303
2015 162 24 193 379
2016 286 54 19 359
Sub-total 1,013 496 240 1,749
Average (2012 - 2016)203 99 48 350
% Breakdown 57.9%28.4%13.7%100.0%
2017 202 114 30 346
2018 138 373 29 540
2019 278 727 257 1,262
2020 167 297 46 510
2021 130 51 392 573
Sub-total 915 1,562 754 3,231
Average (2017 - 2021)183 312 151 646
% Breakdown 28.3%48.3%23.3%100.0%
2012 - 2021
Total 1,928 2,058 994 4,980
Average 193 206 99 498
% Breakdown 38.7%41.3%20.0%100.0%
1 Includes townhouses and apartments in duplexes.
2 Includes bachelor, 1 bedroom and 2 bedroom+ apartments.
Singles &
Semi
Detached
Multiples 1 Apartments 2
Year
Source: Building permit data from 2011 to 2013 and 2021 from Statistics Canada. Building permits between
2014 and 2020 from the City of Pickering. Figure by Watson & Associates Economists Ltd., 2022.
Watson & Associates Economists Ltd. PAGE A-8
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Schedule 6
City of Pickering
Person Per Unit by Age and Type of Dwelling
(2021 Census)
Age of Singles and Semi-Detached
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average Adjusted
1-5 - - - 3.834 5.269 3.904
6-10 - - - 3.453 4.957 3.739 0.143
11-15 - - - 3.431 4.552 3.513 3.561
16-20 - - 1.933 3.337 4.154 3.399 3.561
20-25 - - - 3.272 4.574 3.484 3.561
25-35 - - 2.438 3.073 4.173 3.211
35+-1.500 1.942 2.795 4.066 2.835 3.561
Total -1.556 2.114 3.086 4.303 3.188
Age of Multiples1
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average Adjusted
1-5 - - 1.750 2.968 - 2.882
6-10 - - 1.500 2.952 - 2.667 (0.166)
11-15 - - 1.706 2.654 - 2.566 2.743
16-20 - - 1.944 2.703 - 2.565 2.743
20-25 - - 1.647 3.026 - 2.832 2.743
25-35 -0.929 2.267 3.020 3.914 2.995
35+-1.211 2.000 2.666 3.966 2.605 2.743
Total -1.200 1.869 2.810 3.912 2.719
Age of Apartments2
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average Adjusted
1-5 -1.135 1.519 - - 1.294
6-10 -1.083 1.571 2.933 - 2.116 0.065
11-15 -1.286 1.435 3.667 - 1.893 1.771
16-20 -1.250 1.660 3.000 - 1.901 1.771
20-25 -1.179 1.697 2.310 - 1.714 1.771
25-35 -1.275 1.679 2.627 - 1.908
35+-1.226 1.786 2.602 - 2.179 1.771
Total -1.212 1.655 2.636 3.706 1.899
Age of All Density Types
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total
1-5 -1.211 1.659 3.469 4.967 3.138
6-10 -1.154 1.824 3.175 5.160 3.088
11-15 -1.273 1.702 3.198 4.303 2.983
16-20 -1.316 1.788 3.200 4.188 3.005
20-25 -1.234 1.884 3.175 4.610 3.034
25-35 -1.259 1.932 3.053 4.093 3.072
35+-1.261 1.989 2.744 3.989 2.729
Total 1.400 1.253 1.876 3.005 4.230 2.944
2 Includes bachelor, 1 bedroom and 2 bedroom+ apartments.
3 Adjusted based on 2001-2016 historical trends.
Note: Does not include Statistics Canada data classified as 'Other'
P.P.U. Not calculated for samples less than or equal to 50 dwelling units, and does not include institutional population.
1 Includes townhouses and apartments in duplexes.
Watson & Associates Economists Ltd. PAGE A-9
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Schedule 7
City of Pickering
Employment Forecast, Mid-2022 to Mid-2039
Employment
Mid 2006 87,838 0.001 0.034 0.145 0.136 0.048 0.365 0.084 0.450 75 3,015 12,743 11,988 4,245 32,065 7,421 39,486 29,050
Mid 2011 88,721 0.001 0.034 0.134 0.144 0.056 0.368 0.074 0.443 75 2,995 11,903 12,763 4,940 32,675 6,592 39,267 29,680
Mid 2016 91,771 0.002 0.035 0.129 0.138 0.053 0.357 0.051 0.408 140 3,225 11,843 12,668 4,885 32,760 4,694 37,454 29,535
Mid 2022 103,191 0.001 0.035 0.122 0.133 0.051 0.343 0.047 0.390 140 3,604 12,619 13,757 5,254 35,373 4,884 40,257 31,769
Mid 2027 128,475 0.001 0.032 0.117 0.127 0.048 0.324 0.047 0.371 140 4,129 14,984 16,253 6,140 41,645 6,039 47,684 37,516
Mid 2032 152,339 0.001 0.031 0.114 0.123 0.047 0.316 0.047 0.363 140 4,717 17,365 18,733 7,199 48,153 7,184 55,337 43,436
Mid 2039 182,297 0.001 0.030 0.112 0.121 0.048 0.312 0.048 0.360 140 5,556 20,506 22,034 8,719 56,954 8,716 65,670 51,398
Mid 2006 - Mid 2011 883 0.000 -0.001 -0.011 0.007 0.007 0.003 -0.010 -0.007 0 -20 -840 775 695 610 -829 -219 630
Mid 2011 - Mid 2016 3,050 0.0007 0.0014 -0.0051 -0.0058 -0.0024 -0.0113 -0.0232 -0.0345 65 230 -60 -95 -55 85 -1,898 -1,813 -145
Mid 2016 - Mid 2022 11,420 -0.0002 -0.0002 -0.0068 -0.0047 -0.0023 -0.0142 -0.0038 -0.0180 0 379 776 1,089 369 2,613 190 2,803 2,234
Mid 2022 - Mid 2027 25,284 -0.0003 -0.0028 -0.0057 -0.0068 -0.0031 -0.0186 -0.0003 -0.0190 0 525 2,365 2,496 886 6,272 1,155 7,427 5,747
Mid 2022 - Mid 2032 49,148 -0.0004 -0.0040 -0.0083 -0.0103 -0.0037 -0.0267 -0.0002 -0.0269 0 1,113 4,746 4,976 1,945 12,780 2,300 15,080 11,667
Mid 2022 - Mid 2039 79,106 -0.0006 -0.0044 -0.0098 -0.0124 -0.0031 -0.0304 0.0005 -0.0299 0 1,952 7,887 8,277 3,465 21,581 3,832 25,413 19,629
Mid 2006 - Mid 2011 177 0.00000 -0.00011 -0.00218 0.00148 0.00147 0.00065 -0.00204 -0.00139 0 -4 -168 155 139 122 -166 -44 126
Mid 2011 - Mid 2016 610 0.0001 0.0003 -0.0010 -0.0012 -0.0005 -0.0023 -0.0046 -0.0069 13 46 -12 -19 -11 17 -380 -363 -29
Mid 2016 - Mid 2022 1,903 0.0000 0.0000 -0.0011 -0.0008 -0.0004 -0.0024 -0.0006 -0.0030 0 63 129 182 62 436 32 467 372
Mid 2022 - Mid 2027 5,057 -0.00005 -0.00056 -0.00113 -0.00136 -0.00062 -0.00373 -0.00006 -0.00379 0 105 473 499 177 1,254 231 1,485 1,149
Mid 2022 - Mid 2032 4,915 -0.00004 -0.00040 -0.00083 -0.00103 -0.00037 -0.00267 -0.00002 -0.00269 0 111 475 498 195 1,278 230 1,508 1,167
Mid 2022 - Mid 2039 4,653 -0.00003 -0.00026 -0.00058 -0.00073 -0.00018 -0.00179 0.00003 -0.00176 0 115 464 487 204 1,269 225 1,495 1,155
Source: Derived from Durham Region Growth Management Strategy (ongoing) and the Region of Durham Regional Transit Development Charge Background Study (2022), by Watson & Associates Economists Ltd., 2022.
Note: The 2031 Official Plan employment target of 71,800 is forecast to be achieved after 2039. An additional 4,900 jobs would be assumed for Northeast Pickering, in accordance with the Official Plan.
¹ Statistics Canada defines no fixed place of work (N.F.P.O.W.) employees as "persons who do not go from home to the same work place location at the beginning of each shift". Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc.
Total (Excluding
Work at Home and
N.F.P.O.W.)
Incremental Change
Annual Average
Total
Including
NFPOW
N.F.P.O.W.1Work at
Home Industrial
Commercial/
Population
Related
Total Employment
(Including
N.F.P.O.W.)
InstitutionalN.F.P.O.W.1
Activity Rate
Period Population Primary Work at
Home Industrial Commercial/
Population Related Institutional Total
Employment
Primary Total
Watson & Associates Economists Ltd. PAGE B-1
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Appendix B
Proposed C.B.C. By-law
Watson & Associates Economists Ltd. PAGE B-2
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The City of Pickering
By-law Number ____/22
A By-Law to Establish Community Benefits Charges for the City of Pickering
WHEREAS The City of Pickering (the “City”) will experience growth through development
and re-development;
AND WHEREAS Council desires to impose Community Benefits Charges against land to
pay for the capital costs of facilities, services and matters required because of
development or redevelopment in the area to which the by-law applies;
AND WHEREAS the Planning Act, 1990 (the “Act”) provides that the council of a
municipality may by by-law impose Community Benefits Charges against higher density
residential development or redevelopment;
AND WHEREAS a Community Benefits Charge strategy report, dated May 20, 2022, has
been completed which identifies the facilities, services and matters that will be funded with
Community Benefits Charges and complies with the prescribed requirements;
AND WHEREAS the City has consulted with the public and such persons and public
bodies as the City considers appropriate;
AND WHEREAS on July 11, 2022, Council for the City of Pickering approved Report No.
FIN-2022-XXXX, dated June XX, 2022, in which certain recommendations were made
relating to the Community Benefits Strategy and By-law.
The Council of the City enacts as follows:
1. INTERPRETATION
1.1 In this By-law, the following items shall have the corresponding meanings:
“Act” means the Planning Act, R.S.O. 1990, CHAPTER P.13;
“Apartment” means a dwelling unit in an apartment building;
"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. Notwithstanding the forgoing and
Apartment Building includes a Stacked Townhouse;
“Bedroom” means any room used, or designed or intended for use, as sleeping
quarters
Watson & Associates Economists Ltd. PAGE B-3
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
“Building” means any structure or building as defined in the Ontario Building Code
(O Reg 332/12 under the Building Code Act, but does not include a vehicle;
“Building Code Act” means the Building Code Act, 1992, SO 1992, c 23 as
amended;
“Capital Costs” means growth-related costs incurred or proposed to be incurred by
the City or a Local Board thereof directly or by others on behalf of, and as
authorized by, the City or Local Board,
(a) to acquire land or an interest in land, including a leasehold interest,
(b) to improve land,
(c) to acquire, lease, construct or improve buildings and structures,
(d) to acquire, construct or improve facilities including,
(i) furniture and equipment, and;
(ii) rolling stock;
(e) to undertake studies in connection with any of the matters referred to in
clauses (a) to (d) above, including the Community Benefits Charge strategy
study,
required for the provision of Services designated in this By-law within or outside the
City, including interest on borrowing for those expenditures under clauses (a) to (e)
above;
“City” means The City of Pickering or the geographic area of the municipality, as the
context requires;
“Council” means the Council of the City of Pickering;
“Development” means the construction, erection, or placing of one or more
Buildings or structures on land or the making of an addition or alteration to a
building or structure that has the effect of increasing the size or usability thereof or
any development requiring any of the actions described in subsection 2.4 (a), and
includes Redevelopment;
"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;
“Community Benefits Charge” means a charge imposed pursuant to this By-law;
“Land” (or “Lot”) means, for the purposes of this By-law, the lesser of the area
defined as:
Watson & Associates Economists Ltd. PAGE B-4
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
(a) The whole of a parcel of property associated with the Development or
Redevelopment and any abutting properties in which a person holds the fee or
equity of redemption in, power or right to grant, assign or exercise a power of
appointment in respect of, or;
(b) The whole of a lot or a block on a registered plan of subdivision or a unit within
a vacant land condominium that is associated with the Development or
Redevelopment;
But not including any hazard lands, natural heritage features, or ecological buffers
identified in the City’s Official Plan, an approved Secondary Plan, or through an
environmental impact study accepted by the City.
“Owner” means the owner of Land or a person who has made application for an
approval for the Development of land for which a Community Benefits Charge may
be imposed;
“Prescribed” means prescribed in the regulations made under the Act;
“Redevelopment” means the construction, erection or placing of one or more
Buildings on Land where all or part of a Building on such Land has previously been
demolished, or changing the use of a Building from a Non-Residential Use to a
Residential Use, or changing a Building from one form of Residential Use to another
form of Residential Use and including any development or redevelopment requiring
any of the actions described in subsection 2.4 (a);
“Residential 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;
“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;
“Service” means a service designated in subsection 1.3, and “Services” shall have a
corresponding meaning;
“Stacked Townhouse” means a building, other than a duplex, triplex, townhouse, or
apartment building, containing at least 3 dwelling units, each dwelling unit
separated vertically and/or horizontally and each dwelling unit having a separate
entrance to grade;
“Valuation date” means, with respect to land that is the subject of development or
redevelopment,
Watson & Associates Economists Ltd. PAGE B-5
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
(a) the day before the day the building permit is issued in respect of the
development or redevelopment, or
(b) if more than one building permit is required for the development or
redevelopment, the day before the day the first permit is issued.
“Zoning By-Law” means any by-laws enacted by the City under section 34 of the
Planning Act.
1.2 The reference to any applicable statute, regulation, by-law, or to the Official Plan in
this Community Benefits Charge By-law shall be deemed to refer to the statute,
regulation, by-law, and/or Official Plan as they may be amended from time to time
and shall be applied as they read on the date on which Community Benefits
Charges are due to the City.
DESIGNATION OF SERVICES
1.3 A Community Benefits Charge may be imposed in respect of the following:
(a) Land for park or other public recreational purposes in excess of lands
dedicated or cash-in-lieu payments made under section 42 or subsection 51.1
of the Planning Act.
(b) Services not provided under subsection 2 (4) of the Development Charges Act.
(c) As per the May 20, 2022, Community Benefits Charges Strategy, the City
intends to recover Capital Costs relating to the following services through this
by-law::
(i) Arts, Culture, and Museum
(ii) Animal Adoptions; and
(iii) Administration
2. PAYMENT OF COMMUNITY BENEFITS
2.1 Community Benefits Charges shall be payable by the Owner of Land proposed for
Development in the amounts set out in this By-law where:
(a) the Land proposed for Development is located in the area described in
subsection 3.2; and
(b) the proposed Development requires any of the approvals set out in subsection
2.4 (a).
Area to Which By-law Applies
2.2 Subject to subsection 2.3, this By-law applies to all lands in the City.
Watson & Associates Economists Ltd. PAGE B-6
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
2.3 This By-law shall not apply to lands that are owned by and used for the purposes of:
(a) The City or a Local Board thereof;
(b) a Board of Education;
(c) The Region of Durham, or a Local Board thereof.
Approvals for Development
2.4
(a) A Community Benefits Charge shall be imposed only with respect to
Development that requires one or more of the following approvals:
(i) the passing of a Zoning By-Law or of an amendment to a Zoning By-Law
under section 34 of the Planning Act;
(ii) the approval of a minor variance under section 45 of the Planning Act;
(iii) a conveyance of land to which a by-law passed under subsection 50 (7) of
the Planning Act applies;
(iv) the approval of a plan of subdivision under section 51 of the Planning Act;
(v) a consent under section 53 of the Planning Act;
(vi) the approval of a description under section 9 of the Condominium Act,
1998, SO 1998, c 19, as amended, or any successor thereof; or
(vii) the issuing of a permit under the Building Code Act, 1992 in relation to a
building or structure.
(b) Despite subsection 2.4 (a) above, a Community Benefits Charge shall not be
imposed with respect to:
(i) Development of a proposed building or structure with fewer than five
storeys at or above ground;
(ii) Development of a proposed building or structure with fewer than 10
residential units;
(iii) Redevelopment of an existing building or structure that will have fewer
than five storeys at or above ground after the redevelopment;
(iv) Redevelopment that proposes to add fewer than 10 residential units to an
existing building or structure; or
(v) such types of Development or Redevelopment as are prescribed.
Watson & Associates Economists Ltd. PAGE B-7
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
Exemptions
2.5 Notwithstanding the provisions of this By-law, Community Benefits Charges shall
not be imposed with respect to:
(a) Development or Redevelopment of a building or structure intended for use as a
long-term care home within the meaning of subsection 2 (1) of the Long-Term
Care Homes Act, 2007
(b) Development or Redevelopment of a building or structure intended for use as a
retirement home within the meaning of subsection 2 (1) of the Retirement
Homes Act, 2010;
(c) Development or Redevelopment of a building or structure intended for use by
any of the following post-secondary institutions for the objects of the institution:
(i) a university in Ontario that receives direct, regular and ongoing operating
funding from the Government of Ontario;
(ii) a college or university federated or affiliated with a university described in
subparagraph (i);
(iii) an Indigenous Institute prescribed for the purposes of section 6 of the
Indigenous Institutes Act, 2017.
(d) Development or Redevelopment of a building or structure intended for use as a
memorial home, clubhouse or athletic grounds by an Ontario branch of the
Royal Canadian Legion.;
(e) Development or Redevelopment of a building or structure intended for use as a
hospice to provide end-of-life care;
(f) Development or Redevelopment of a building or structure intended for use as
residential premises by any of the following entities:
(i) a corporation to which the Not-for-Profit Corporations Act, 2010 applies,
that is in good standing under that Act and whose primary object is to
provide housing;
(ii) a corporation without share capital to which the Canada Not-for-profit
Corporations Act applies, that is in good standing under that Act and
whose primary object is to provide housing;
(iii) a non-profit housing co-operative that is in good standing under the
Co-operative Corporations Act.
Watson & Associates Economists Ltd. PAGE B-8
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
Amount of Charge
2.6 The amount of a Community Benefits Charge payable in any particular case shall
be determined based on the charges set out in Schedule “A” to this by-law.
In-Kind Contributions
2.7 The City may, at its discretion, allow an Owner of Land to provide to the City
facilities, services or matters required because of Development or Redevelopment
in the area to which the By-law applies in lieu, or partially in lieu of a Community
Benefits Charge that would otherwise be payable.
2.8 For in-kind contributions pursuant to the preceding subsection to be considered, an
application for consideration of in-kind contributions must be submitted to the City
with supporting documentation as to the suggested value thereof no less than 180
days prior to the first building permit being granted for the proposed Development or
Redevelopment.
2.9 In-kind contributions pursuant to subsection 2.7 shall only be accepted as if the
same are approved by resolution of Council. The determination of Council as to
whether in-kind contributions shall be accepted in full or partial satisfaction of
Community Benefits Charges shall be final and binding.
2.10 The value attributed to an in-kind contribution under subsection 2.7 shall be as
determined by Council, based on one or more third-party valuations to the
satisfaction of Council. Council’s determination of the value to be attributed to any
in-kind contribution shall be final and binding.
Time of Payment of Community Benefits Charges
2.11 Community Benefits Charges imposed under this By-law shall be payable prior to
the issuance of any building permit for the proposed Development or
Redevelopment.
Credits
2.12 Any developments that were subject to an agreement under the prior Section 37 of
the Planning Act prior to this by-law coming into force and effect shall have the
amount paid under the Section 37 agreement credited against the Community
Benefit Charge payable.
(a) The amount credited against the charge payable shall be the amount paid
under the prior Section 37 agreement that relates to the proposed
development.
(b) In no case shall the credit be greater than the Community Benefit Charge
otherwise payable.
Watson & Associates Economists Ltd. PAGE B-9
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
Interest on Refunds
2.13 If it is determined that a refund is required, the City shall pay interest on a refund in
accordance with subsections 37 (28) and 37 (29) of the Act at a rate not less than
the prescribed minimum interest rate, from the day the amount was paid to the
municipality to the day it is refunded.
Indexing
2.14 The Community Benefits Charges referred to in Section 2.6 shall be adjusted
annually, without amendment to this By-law, as of July 1 each year.
(a) The rates in Schedule “A” shall be adjusted annually in accordance with the
change in the index for the most recently available annual period ending March
31 for the Statistics Canada Non-Residential Building Construction Price Index
for Toronto.
(b) The indexed Community Benefits Charges effective July 1 each year shall not
apply to building permit applications received prior to the July 1 effective date,
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 by the date set out in the Region of Durham’s annual report
on the indexing of Development Charges.
3. SEVERABILITY
3.1 If, for any reason, any provision of this By-law is held to be invalid, it is hereby
declared to be the intention of Council that all the remainder of this By-law shall
continue in full force and effect until repealed, re-enacted, amended or modified.
Watson & Associates Economists Ltd. PAGE B-10
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
DATE BY-LAW IN FORCE
3.2 This By-law shall come into effect at 12:01 A.M. on July 12, 2022.
Passed this 11th day of July 2022.
MAYOR
CITY CLERK
Watson & Associates Economists Ltd. PAGE B-11
H:\Pickering\2022 DC and CBC\Report\CBC By-law - Draft v2.docx
Schedule “A”
Schedule of Community Benefits Charges
Apartments - 2
Bedrooms +
Apartments -
Bachelor and
1 Bedroom
C.B.C. by Dwelling Unit Type 910 559
Description
Residential
Page B-1
Revised Appendix B
Proposed Revised Draft
C.B.C. By-law
Attachment #2 to Report #PLN 32-22
Page B-2
The City of Pickering
By-law Number ____/22
A By-Law to Establish Community Benefits Charges for the City of Pickering
Whereas the City of Pickering (the “City”) will experience growth through development and
re-development;
And whereas Council desires to impose Community Benefits Charges against land to pay
for the capital costs of facilities, services and matters required because of development or
redevelopment in the area to which the by-law applies;
And whereas the Planning Act, 1990 (the “Act”) provides that the council of a municipality
may by by-law impose Community Benefits Charges against higher density residential
development or redevelopment;
And whereas a Community Benefits Charge strategy report, dated May 20, 2022, has
been completed which identifies the facilities, services and matters that will be funded with
Community Benefits Charges and complies with the prescribed requirements;
And where as the City has consulted with the public and such persons and public bodies
as the City considers appropriate;
And whereas on July 11, 2022, Council for the City of Pickering approved Report No.
FIN-2022-XXXX, dated June XX, 2022, in which certain recommendations were made
relating to the Community Benefits Strategy and By-law.
The Council of the City enacts as follows:
1. Interpretation
1.1 In this By-law, the following items shall have the corresponding meanings:
“Act” means the Planning Act, R.S.O. 1990, CHAPTER P.13;
“Apartment” means a dwelling unit in an apartment building;
"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. Notwithstanding the forgoing and
Apartment Building includes a Stacked Townhouse;
“Bedroom” means any room used, or designed or intended for use, as sleeping
quarters;
Draft
Page B-3
“Building” means any structure or building as defined in the Ontario Building Code
(O Reg 332/12 under the Building Code Act, but does not include a vehicle;
“Building Code Act” means the Building Code Act, 1992, SO 1992, c 23 as
amended;
“Capital Costs” means growth-related costs incurred or proposed to be incurred by
the City or a Local Board thereof directly or by others on behalf of, and as
authorized by, the City or Local Board,
(a) to acquire land or an interest in land, including a leasehold interest,
(b) to improve land,
(c) to acquire, lease, construct or improve buildings and structures,
(d) to acquire, construct or improve facilities including,
(i) furniture and equipment, and;
(ii) rolling stock;
(e) to undertake studies in connection with any of the matters referred to in
clauses (a) to (d) above, including the Community Benefits Charge strategy
study,
required for the provision of Services designated in this By-law within or outside the
City, including interest on borrowing for those expenditures under clauses (a) to (e)
above;
“City” means The City of Pickering or the geographic area of the municipality, as the
context requires;
“Council” means the Council of the City of Pickering;
“Development” means the construction, erection, or placing of one or more
Buildings or structures on land or the making of an addition or alteration to a
building or structure that has the effect of increasing the size or usability thereof or
any development requiring any of the actions described in subsection 2.4 (a), and
includes Redevelopment;
"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;
“Community Benefits Charge” means a charge imposed pursuant to this By-law;
“Land” (or “Lot”) means, for the purposes of this By-law, the lesser of the area
defined as:
Draft
Page B-4
(a) The whole of a parcel of property associated with the Development or
Redevelopment and any abutting properties in which a person holds the fee or
equity of redemption in, power or right to grant, assign or exercise a power of
appointment in respect of, or;
(b) The whole of a lot or a block on a registered plan of subdivision or a unit within
a vacant land condominium that is associated with the Development or
Redevelopment;
But not including any hazard lands, natural heritage features, or ecological buffers
identified in the City’s Official Plan, an approved Secondary Plan, or through an
environmental impact study accepted by the City.
“Owner” means the owner of Land or a person who has made application for an
approval for the Development of land for which a Community Benefits Charge may
be imposed;
“Prescribed” means prescribed in the regulations made under the Act;
“Redevelopment” means the construction, erection or placing of one or more
Buildings on Land where all or part of a Building on such Land has previously been
demolished, or changing the use of a Building from a Non-Residential Use to a
Residential Use, or changing a Building from one form of Residential Use to
another form of Residential Use and including any development or redevelopment
requiring any of the actions described in subsection 2.4 (a);
“Residential 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;
“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;
“Service” means a service designated in subsection 1.3, and “Services” shall have
a corresponding meaning;
“Stacked Townhouse” means a building, other than a duplex, triplex, townhouse, or
apartment building, containing at least 3 dwelling units, each dwelling unit
separated vertically and/or horizontally and each dwelling unit having a separate
entrance to grade;
“Valuation date” means, with respect to land that is the subject of development or
redevelopment,
(a) the day before the day the building permit is issued in respect of the
development or redevelopment, or
Draft
Page B-5
(b) if more than one building permit is required for the development or
redevelopment, the day before the day the first permit is issued.
“Zoning By-Law” means any by-law enacted by the City under section 34 of the
Planning Act.
1.2 The reference to any applicable statute, regulation, by-law, or to the Official Plan in
this Community Benefits Charge By-law shall be deemed to refer to the statute,
regulation, by-law, and/or Official Plan as they may be amended from time to time
and shall be applied as they read on the date on which Community Benefits
Charges are due to the City.
Designation of Services
1.3 A Community Benefits Charge may be imposed in respect of the following:
(a) Land for park or other public recreational purposes in excess of lands
dedicated or cash-in-lieu payments made under section 42 or subsection 51.1
of the Planning Act.
(b) Services not provided under subsection 2 (4) of the Development Charges Act.
(c) As per the May 20, 2022, Community Benefits Charges Strategy, the City
intends to recover Capital Costs relating to the following services through this
by-law:
(i) Arts, Culture, and Museum
(ii) Animal Adoptions; and
(iii) Administration
2. Payment of Community Benefits
2.1 Community Benefits Charges shall be payable by the Owner of Land proposed for
Development in the amounts set out in this By-law where:
(a) the Land proposed for Development is located in the area described in
subsection 3.2; and
(b) the proposed Development requires any of the approvals set out in subsection
2.4 (a).
Area to Which By-law Applies
2.2 Subject to subsection 2.3, this By-law applies to all lands in the City.
Draft
Page B-6
2.3 This By-law shall not apply to lands that are owned by and used for the purposes
of:
(a) The City or a Local Board thereof;
(b) a Board of Education;
(c) The Region of Durham, or a Local Board thereof.
Approvals for Development
2.4
(a) A Community Benefits Charge shall be imposed only with respect to
Development that requires one or more of the following approvals:
(i) the passing of a Zoning By-Law or of an amendment to a Zoning By-Law
under section 34 of the Planning Act;
(ii) the approval of a minor variance under section 45 of the Planning Act;
(iii) a conveyance of land to which a by-law passed under subsection 50 (7) of
the Planning Act applies;
(iv) the approval of a plan of subdivision under section 51 of the Planning Act;
(v) a consent under section 53 of the Planning Act;
(vi) the approval of a description under section 9 of the Condominium Act,
1998, SO 1998, c 19, as amended, or any successor thereof; or
(vii) the issuing of a permit under the Building Code Act, 1992 in relation to a
building or structure.
(b) Despite subsection 2.4 (a) above, a Community Benefits Charge shall not be
imposed with respect to:
(i) Development of a proposed building or structure with fewer than five
storeys at or above ground;
(ii) Development of a proposed building or structure with fewer than 10
residential units;
(iii) Redevelopment of an existing building or structure that will have fewer
than five storeys at or above ground after the redevelopment;
(iv) Redevelopment that proposes to add fewer than 10 residential units to an
existing building or structure; or
(v) such other types of Development or Redevelopment as are prescribed by
Regulation.
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Exemptions
2.5 Notwithstanding the provisions of this By-law, Community Benefits Charges shall
not be imposed with respect to:
(a) Development or Redevelopment of a building or structure intended for use as a
long-term care home within the meaning of subsection 2 (1) of the Long-Term
Care Homes Act, 2007
(b) Development or Redevelopment of a building or structure intended for use as a
retirement home within the meaning of subsection 2 (1) of the Retirement
Homes Act, 2010;
(c) Development or Redevelopment of a building or structure intended for use by
any of the following post-secondary institutions for the objects of the institution:
(i) a university in Ontario that receives direct, regular and ongoing operating
funding from the Government of Ontario;
(ii) a college or university federated or affiliated with a university described in
subparagraph (i);
(iii) an Indigenous Institute prescribed for the purposes of section 6 of the
Indigenous Institutes Act, 2017.
(d) Development or Redevelopment of a building or structure intended for use as a
memorial home, clubhouse or athletic grounds by an Ontario branch of the
Royal Canadian Legion.;
(e) Development or Redevelopment of a building or structure intended for use as a
hospice to provide end-of-life care;
(f) Development or Redevelopment of a building or structure intended for use as
residential premises by any of the following entities:
(i) a corporation to which the Not-for-Profit Corporations Act, 2010 applies,
that is in good standing under that Act and whose primary object is to
provide housing;
(ii) a corporation without share capital to which the Canada Not-for-profit
Corporations Act applies, that is in good standing under that Act and
whose primary object is to provide housing;
(iii) a non-profit housing co-operative that is in good standing under the
Co-operative Corporations Act.
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Amount of Charge
2.6 The amount of a Community Benefits Charge payable in any particular case shall
be determined based on the charges set out in Schedule “A” to this by-law.
In-Kind Contributions
2.7 The City may, at its discretion, allow an Owner of Land to provide to the City
facilities, services or matters required because of Development or Redevelopment
in the area to which the By-law applies in lieu, or partially in lieu of a Community
Benefits Charge that would otherwise be payable.
2.8 For in-kind contributions pursuant to the preceding subsection to be considered, an
application for consideration of in-kind contributions must be submitted to the City
with supporting documentation as to the suggested value thereof no less than 180
days prior to the first building permit being granted for the proposed Development
or Redevelopment.
2.9 In-kind contributions pursuant to subsection 2.7 shall only be accepted if the same
are approved by resolution of Council. The determination of Council as to whether
in-kind contributions shall be accepted in full or partial satisfaction of Community
Benefits Charges shall be final and binding.
2.10 The value attributed to an in-kind contribution under subsection 2.7 shall be as
determined by Council, based on one or more third-party valuations, to the
satisfaction of Council. Council’s determination of the value to be attributed to any
in-kind contribution shall be final and binding.
Time of Payment of Community Benefits Charges
2.11 Community Benefits Charges imposed under this By-law shall be payable prior to
the issuance of any building permit for the proposed Development or
Redevelopment.
2.12 Notwithstanding subsection 2.11, Community Benefit Charges shall not apply to
building permit applications received prior to July 1, 2022, provided:
(a)the permit application is complete in terms of the applicant's submission
requirements set out in the Ontario Building Code and the City's Building
By-law;
(b)applicable law approvals prescribed in the building code have been obtained or
applied for; and
(c)the building permit or a conditional building permit is issued for all or part of the
building by August 31, 2022.
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Interest on Refunds
2.13 If it is determined that a refund is required, the City shall pay interest on a refund in
accordance with subsections 37 (28) and 37 (29) of the Act at a rate not less than
the prescribed minimum interest rate, from the day the amount was paid to the
municipality to the day it is refunded.
Indexing
2.14 The Community Benefits Charges referred to in Section 2.6 shall be adjusted
annually, without amendment to this By-law, as of July 1 each year as follows.
(a) The rates in Schedule “A” shall be adjusted annually in accordance with the
change in the index for the most recently available annual period ending
March 31 for the Statistics Canada Non-Residential Building Construction
Price Index for Toronto.
(b) The indexed Community Benefits Charges effective July 1 each year shall not
apply to building permit applications received prior to the July 1 effective date,
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 by the date set out in the Region of Durham’s annual report
on the indexing of Development Charges.
3. Severability
3.1 If, for any reason, any provision of this By-law is held to be invalid, it is hereby
declared to be the intention of Council that all the remainder of this By-law shall
continue in full force and effect until repealed, re-enacted, amended or modified.
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Page B-10
Date By-Law In Force
3.2 This By-law shall come into effect at 12:01 A.M. on July 12, 2022.
Passed this 11th day of July 2022.
David Ryan, Mayor
Susan Cassel, City Clerk
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Page B-11
Schedule “A”
Schedule of Community Benefits Charges
Apartments - 2
Bedrooms +
Apartments -
Bachelor and 1
Bedroom
C.B.C. by Dwelling Unit Type 910 559
Description
Residential
Updated June 10, 2022
The Corporation of the City of Pickering
By-law Number XXXX/22
Being a By-law to require the conveyance of land for park or
other public recreational purposes as a condition of
development or redevelopment, or the subdivision of lands.
Whereas Sections 42, 51(25), 51.1, and 53 of the Planning Act, R.S.O. 1990, chapter
P.13, provide that the Council of a local municipality may by by-law require that land be
conveyed to the municipality for park or other public recreational purposes as a
condition of development or redevelopment or the subdivision of lands;
Whereas Sections 42 and 51.1 of the Planning Act, R.S.O. 1990, chapter P.13,
provide for an alternate parkland rate for residential purposes of one hectare for each
300 dwelling units proposed for development provided the municipality has an official
plan that contains specific policies dealing with the provision of lands for park or other
public recreational purposes at such a rate;
Whereas Sections 42 and 51.1 of the Planning Act, R.S.O. 1990, chapter P.13, provide
that municipalities may require payment in lieu of land for park or other public
recreational purposes at an alternate rate of one hectare for each 500 dwelling units
proposed for development provided the municipality has an official plan that contains
specific policies dealing with the alternate rate for the provision of lands for park or other
public recreational purposes.
Whereas the use of an alternate parkland rate for conveyance (1 hectare: 300 dwelling
units) and an alternate rate for payment in lieu (1 hectare: 500 dwelling units) will
provide the City with increased versatility in providing parkland that efficiently serves the
needs of the community;
Whereas the City’s Parkland Conveyance By-law 7341/14 will expire on September 18, 2022,
and a new Parkland Conveyance By-law is required;
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1.For the purposes of interpretation of this by-law, the following definitions shall
apply:
(a)“Development” means the construction, erection or placing or one or more
buildings or structures on land or the making of an addition or alteration to
a building or structure that has the effect of substantially increasing the
size or usability thereof;
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Attachment #3 to Report #PLN 32-22
By-law No. XXXX/22 Page 2
Updated June 10, 2022
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(b) “Redevelopment” has the same meaning as Development;
(c) “Subdivision” means the process referred to in Section 50 of the Planning
Act, R.S.O. 1990, chapter P.13.
2. This By-law shall apply to the whole City of Pickering.
3. As a condition of Development or Redevelopment of lands for any purpose other
than commercial or industrial, Council shall require that land be conveyed to the
City, free and clear of all liens and encumbrances, for park or other public
recreational purposes in the amount of five percent (5%) of the land for such
Development.
4. As a condition of subdivision of lands for any purpose other than commercial or
industrial, Council shall require that land be conveyed to the City, free and clear
of all liens and encumbrances, for park or other public recreational purposes in
the amount of five percent (5%) of the land proposed for such development.
5. As an alternative to Sections 3 and 4 above, as a condition of Development or
Redevelopment or in the case of subdivision of land as a condition of approval of
subdivision of lands for development in High Density Residential Areas and
Mixed Use Areas in accordance with the City of Pickering Official Plan, Council
may require that land be conveyed to the City for park or other public recreational
purposes at a rate of one hectare for each 300 dwelling units proposed.
However, in no case shall the parkland dedication be less than that required in
Sections 3 and 4 above.
6. As an alternative to Section 5 above, Council may require a payment in lieu of a
portion or all of the land otherwise to be conveyed under this by-law, calculated
by using a rate of one hectare for each 500 dwelling units proposed.
7. As a condition of Development or Redevelopment of lands for commercial or
industrial purposes, Council shall require that land be conveyed to the City, free
and clear of all liens and encumbrances, for park or other public recreational
purposes in the amount of two percent (2%) of the land proposed for such
development.
8. As a condition of subdivision of lands for commercial or industrial purposes,
Council shall require that land be conveyed to the City, free and clear of all liens
and encumbrances, for park or other public recreational purposes in the amount
of two percent (2%) of the land proposed for such development.
9. As an alternative to Sections 3, 4, 7 and 8 above, Council may require a payment
in lieu of the land otherwise to be conveyed under this by-law, or such
combination of land and money as Council may require.
By-law No. XXXX/22 Page 3
Updated June 10, 2022
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10. This by-law shall at all times be subject to the provisions of Section 42, 51.1,
51(25), and 53 of the Planning Act, R.S.O. 1990, chapter P.13, as amended from
time-to-time, or any successor thereto.
11. By-law 7341/14 of the Corporation of the City of Pickering being a by-law “To
require that land be conveyed to the City for park or other public recreational
purposes as a condition of development or redevelopment, or the subdivision of
lands” is hereby repealed.
By-law passed this XX day of XXX, 2022.
________________________________
David Ryan, Mayor
________________________________
Susan Cassel, City Clerk
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