HomeMy WebLinkAboutPLN 19-25Report to Council
Report Number: PLN 19-25
Date: September 29, 2025
From: Kyle Bentley
Director, City Development & CBO
Subject: PTC Ownership Inc. (CentreCourt) – Request for Development Charges Deferral
and Phased Site Plan Approval
File: D-5000-002
Recommendation:
1. That Report PLN 19-25 regarding PTC Ownership Inc. (CentreCourt) – Request for
Development Charges Deferral and Phased Site Plan Approval be received;
2. That, pursuant to By-law 8190/25, as amended, Council authorize the Mayor and City
Clerk to execute a DC Deferral Agreement, subject to any necessary, agreed to, minor
refinements as determined by the Director, Finance & Treasurer, the Director, Corporate
Services & City Solicitor, and the Chief Administrative Officer;
3. That Council elects to accommodate PTC Ownership Inc.’s request for Phased Site Plan
approval, and directs the Director, City Development & CBO, as follows:
a. to issue Site Plan Approval for Site Plan Application (S 10/23), with Phase 1
(Towers 1 & 2) to be issued upon execution of a Site Plan Agreement, and Phase 2
(Towers 3 & 4) to be issued at a later date, subject to execution of a Site Plan
Agreement; and
b. if Phase 2 is not advanced in a timely manner, Council authorize the Director, City
Development & CBO, to issue conditional Site Plan Approval for the Phase 2 lands.
OR
4. That Council does not elect to accommodate PTC Ownership Inc.’s request for Phased
Site Plan approval, and directs the Director, City Development & CBO, to issue Site Plan
Approval for only Phase 1 (Towers 1 & 2) and require PTC Ownership Inc. to submit a
separate Site Plan Application for Phase 2 (Towers 3 & 4) at a later date.
5. That the appropriate officials of the City of Pickering be authorized to take the actions
necessary to implement the recommendations of this report.
Executive Summary: The purpose of this report is twofold:
• to obtain Council’s approval for the City to enter into a Development Charges Deferral
Agreement with PTC Ownership Inc. (“CentreCourt”), pursuant to By-law 8190/25, as
amended, and
PLN 19-25 September 29, 2025
Page 2
• to obtain Council direction respecting CentreCourt’s request for the City to issue Phased
Site Plan approval of their proposed development on the PTC Lands known as Blocks 1
and 3, 40M 2772.
City staff recommend approval of the Development Charges (DC) deferral, in accordance with
the Council approved DC Deferral program. The program delays the collection of DCs from
building permit issuance to first occupancy, for Towers 1 and 2 only. The rate at which the DCs
would be calculated would be in accordance with the DC Act, that being the date the site plan
application was deemed complete, which was 2023. This financial incentive will expedite the
construction process of this development. Construction and occupancy of this building will also
increase the City’s property tax revenues.
CentreCourt’s unique request for Phased Site Plan approval would freeze the DC rates at the
2023 rate, enabling them to secure lower charges for Phase 2 (Towers 3 & 4) without a
defined construction start date. While this approach would provide certainty for the applicant, it
represents a departure from established operational procedures. Staff estimate a potential loss
of approximately $9.5 million in DC revenue to the City under current assumptions. However, if
Phase 2 is delayed beyond the anticipated timelines, the resulting escalation in rates and
extended financing costs could substantially increase these losses and have an even greater
negative financial impact. Deferred or lost DC Revenue will have a significant impact on the
ability of the City to plan for and commence critical capital infrastructure projects that are
intended to accommodate growth like this.
Should Council support CentreCourt’s request, staff recommend that Council direct the
Director, City Development & CBO, to issue Site Plan Approval for Site Plan Application
(S 10/23) in two phases; and further, that if Phase 2 is not advanced in a timely manner,
Council authorizes the Director, City Development & CBO to issue conditional Site Plan
Approval for Phase 2 lands.
Relationship to the Pickering Strategic Plan: The recommendations in this report respond
to the Pickering Strategic Plan Priorities of Champion Economic Leadership & Innovation and
Advance Innovation & Responsible Planning to Support a Connected, Well-Serviced
Community.
Financial Implications: Deferring DC payments places additional pressure on municipal
cash flow, as the City must finance growth-related infrastructure in advance of DC collection.
With the deferral agreement, DCs are collected at first occupancy. Large tower projects usually
take three to four years to complete, and the City has to wait for these DC payments, which
could cause DC cash flow issues, especially for projects that are funded through DC debt.
While this increases short-term fiscal risk, municipalities have historically entered into deferral
agreements where there is a broader public benefit or where provincial policy priorities, such
as accelerating housing supply, are being advanced.
PLN 19-25 September 29, 2025
Page 3
For CentreCourt’s Phase 1 (Towers 1 & 2), approximately $10.3 million in City DCs would be
deferred to occupancy, projected for October 2029. This delay results in an estimated revenue
loss of $1.9 million, i.e. if the City were to receive the DCs at building permit issuance, the City
would have earned $1.9 million in interest revenue that could have been applied to fund growth
related capital programs.
Category Units/GFA DC Rate Amount
1 Bedroom Apartment 648 $9,109.00 $5,902,632
2 Bedroom Apartment 326 $14,841.00 $4,838,166
Commercial 8,105 $5.66 $45,874
$10,786,672
Less: Demolition Credit
Commercial 271,595 $5.66 ($1,537,228)
Subtotal ( Deferred Development Charges)$9,249,445
Interest earned on frozen rates ( Site Plan approval to Building permit issuance) $1,094,692
Total deferred (DC's + interest)$10,344,136
Financing Opportunity cost ( BP issuance in Oct 2025 to Occupancy in Oct 2029)$1,873,818
Towers 1 & 2
Table 1
CentreCourt’s Phase 2 (Towers 3 & 4) is not included in this agreement unless Council
consents to grant Phased Site Plan approval. Should Council extend approval, the additional
deferral exposure would be approximately $9.5 million, the difference between the 2023 frozen
rates and current rates, assuming the building permit is issued within 18 months of October
2025.
Given the likelihood of delays in advancing Phase 2, potential City DC revenue losses are
materially higher:
• $12.4 million if the 2023 frozen DC rates were applied in 2027 (two-year lag), or
• $17.5 million if the 2023 frozen DC rates were applied in 2030 (five-year lag)
DC Rates DC's applicable Frozen Rates*
Estimated DC
Revenue loss
At 2025 rates (Current rates)** compared to 2023 frozen rates $24,341,758 $14,801,516 $9,540,242
At 2027 rates*** compared to 2023 frozen rates $27,262,742 $14,801,516 $12,461,226
At 2030 rates*** compared to 2023 frozen rates $32,314,387 $14,801,516 $17,512,871
*Rates in effect at completed Site Plan application date ( July 2023 in this instance)
** BP issuance in 18 months from Site Plan Approval in Oct 2025
*** Rates after 2025 indexed at 5.83% (10 Year Average)
Towers 3 & 4
Table 2
PLN 19-25 September 29, 2025
Page 4
Should Council approve the site plan application in two phases, the applicable DC rates will be
fixed at the 2023 levels for both phases. This will result in an estimated revenue loss of $9.5
million (or more if delayed). The shortfall will be addressed in the next DC Background Study
through higher charges (DC rates) on future developments. While this mechanism allows the
City to proceed, it effectively shifts the cost of today’s discretionary reduction onto future
growth.
In summary, while the proposed deferral aligns with Council’s recently adopted DC Deferral
Program and broader housing objectives, the potential revenue at risk, particularly if phased
site plan approval is granted, could materially constrain the City’s ability to fund growth-related
infrastructure.
Discussion: The purpose of this report is to obtain Council’s approval to enter into a (DC
Deferral Agreement with PTC Ownership Inc., pursuant to By-law 8190/25, as amended (the
“DC By-law”), and to obtain Council direction respecting PTC Ownership Inc.’s request for the
City to issue Phased Site Plan approval of their proposed development on the PTC Lands.
Background
PTC Ownership Inc. (CentreCourt) applied for Site Plan Approval (S 10/23) for Blocks 1 and 3,
Plan 40M-2772, to construct four residential towers (Towers 1, 2, 3, and 4), containing 2,191
residential units and 894 square metres of commercial space (see Attachment 1, Submitted
Site Plan). The City deemed this application complete on June 7, 2023. This date is important
because under Section 26.2 of the Development Charges Act, the DCs for the development as
shown on the submitted site plan are fixed at the rates in effect on the date the Site Plan
Application was deemed completed.
PLN 19-25 September 29, 2025
Page 5
At the June 23, 2025, Council Meeting, Council approved the 2025 Development Charge
Background Study and enacted the corresponding DC By-law, which took effect on July 1, 2025
(Report FIN 08-25; Resolution #760/25).
The DC By-law typically requires DCs to be paid prior to the issuance of a building permit.
However, to support long-term growth and intensification, Council also approved (at this
meeting) the introduction of a DC Deferral Program targeted to high-rise residential, industrial
and commercial developments. Phase 1 of this program retroactively commenced on April 1,
2025 and will continue until December 31, 2025.
On July 2, 2025, CentreCourt applied to this DC Deferral Program to defer payment of the
City’s DCs for Block 1 until the date of first occupancy (as determined by the City). Over the
summer, City staff have been working diligently to review their application for compliance with
eligibility criteria and completeness of the required documentation. Staff have determined that
CentreCourt qualifies for a DC Deferral for Block 1 (Towers 1 & 2) and recommend that the
City enter into a DC Deferral Agreement (see Attachment 2, Draft DC Deferral Agreement).
CentreCourt Has Requested the City to Grant Phased Site Plan Approval
To support CentreCourt’s development plan, including relocation of the existing City and Region
owned municipal services (sanitary, storm and water) that currently runs through Block 3 and
the future City Centre park, CentreCourt has requested that Site Plan Approval be issued in
two phases:
• Phase 1 – Towers 1 & 2 on Block 1
• Phase 2 – Towers 3 & 4 on Block 3
The City does not currently have a formal process for Phased Site Plan Approval. Typically,
approval is issued for the entire development following the execution of one Site Plan
Agreement, at which time the applicant must pay the required review fees and securities. Upon
applying for and obtaining the necessary Building Permits, construction may then proceed in
phases at the applicant’s discretion. Under this standard approach, issuance of full Site Plan
Approval also locks in the applicable DC rates under the Development Charges Act. This
means that the landowner has 18 months to obtain the necessary building permits and to
commence construction of all the buildings identified on the one Site Plan.
Based on discussions with CentreCourt, staff understand that construction of Towers 1 & 2
could take approximately four years to complete (best case scenario without unforeseen
delays). Additionally, construction of Towers 3 & 4 would not commence before the first two
towers are complete, and is dependent on sales. In this scenario, CentreCourt would lose the
locked-in (frozen) June 2023 DC rate for Towers 3 & 4. Approving the Site Plan in phases, as
requested, would allow CentreCourt to secure the June 2023 DC rates without a commitment to
a defined construction start date for Phase 2 (Towers 3 & 4 on Block 3). As indicated in the
Financial Implications section above, freezing the 2023 DC rate would have a negative
financial impact on the City of at least $9.5 million in lost DC revenue.
Over the past several months, City staff have met with CentreCourt to discuss its concerns
surrounding their proposed development. CentreCourt has advised that, in light of current
PLN 19-25 September 29, 2025
Page 6
market conditions, rising construction costs (amid trade war uncertainties), and the financial
cost related to the relocation of the existing City and Region owned municipal services on the
property, CentreCourt has advised that they would not move forward with Phase 1 unless
Council grants Phased Site Plan Approval, thereby securing frozen DC rates for all four
towers.
Analysis
The City is committed to the systematic preparation, approval, distribution and maintenance of
comprehensive policies, procedures and standard operating procedures, capable of supporting
the daily decision-making process in all areas of operation in a timely and consistent manner.
CentreCourt’s unique and precedent-setting request for Phased Site Plan approval represents
a departure from standard practice. It presents a potential negative financial impact on the City
of at least $9.5 million in lost DC Revenue. Deferred or lost DC Revenue will have a significant
impact on the ability of the City to plan and deliver the critical capital infrastructure required to
accommodate this growth.
The City also recognizes the Province’s objective of building homes faster and the desire to
incentivize landowners to accelerate redevelopment amid an uncertain economy. In support of
this, the City has already established the DC Deferral program this summer, enabling eligible
owners to postpone DC payments to first occupancy. Additionally, in July, Council approved a
temporary amendment within the DC By-law that would enable CentreCourt to successfully
obtain a DC Credit for their property, saving approximately $1.5 million in City DCs.
The advantage of a Phased Site Plan approval approach is that it would allow CentreCourt’s
Phase 1 (Towers 1 and 2) to proceed without delay, while also accommodating the relocation
and removal of existing municipal infrastructure within Block 3 and within the future City Centre
park, a project of significant importance to the City. These works are expected to take about
two years, after which the City will be able to proceed with the construction of the new City
Centre park.
To ensure Phase 2 continues to advance, CentreCourt has agreed in the draft site plan
agreement for Phase 1 that, if the Director, City Development & CBO, determines Phase 2 is
not advancing in a timely manner, conditional approval may be issued for the Phase 2 lands. In
that event, CentreCourt would be required to obtain a building permit for Phase 2 within
18 months of the time of conditional approval. If the permit is not obtained within that period,
the locked-in DC rate would expire, and the prevailing rate within the DC By-law at that time
would apply.
Should Council elect to accommodate CentreCourt’s request for phased Site Plan Approval for
this application, staff recommend that Site Plan Approval be granted in two separate phases.
Each phase would require the owner to enter into a Site Plan Agreement, pay the applicable
review fees, and submit securities. Approval for Phase 1 (Towers 1 and 2) is anticipated in late
October or early November 2025, which will enable CentreCourt to obtain building permits and
begin construction. Construction of Phase 2 (Towers 3 and 4) is generally anticipated to follow
in approximately 5 to 7 years, but it is heavily dependent on market conditions.
PLN 19-25 September 29, 2025
Page 7
Accordingly, should Council support CentreCourt’s request, staff recommend that Council
direct the Director, City Development & CBO, to issue Site Plan Approval for Site Plan
Application (S 10/23) in two phases; and further, that if Phase 2 is not advanced in a timely
manner, Council authorizes the Director, City Development & CBO to issue conditional Site
Plan Approval for Phase 2 lands.
Attachments:
1.Submitted Site Plan
2.Draft DC Deferral Agreement between PTC Ownership Inc. and the City of Pickering
Prepared By:
Original Signed By
Nilesh Surti, MCIP, RPP
Division Head, Development Review
& Urban Design
Original Signed By
Raghu Kumar
Senior Financial Analyst
Development Charges & Capital Management
Approved/Endorsed By:
Original Signed By
Kyle Bentley, P. Eng.
Director, City Development & CBO
Original Signed By
Stan Karwowski
Director, Finance & Treasurer
NS:KB:ld
Recommended for the consideration
of Pickering City Council
Original Signed By R. Holborn
for:
Marisa Carpino, M.A.
Chief Administrative Officer
Attachment 1 to Report PLN 19-25
Submitted Site Plan
City Development
Department
Sept 11, 2025FULL SCALE COPIES OF THIS PLAN ARE AVAILABLE FOR VIEWING AT THE CITY OF PICKERING
CITY DEVELOPMENT DEPARTMENT.
S10/23
PTC Ownership Inc. (Centrecourt) Applicant:
DATE:
File No:
L:\Planning\01-MapFiles\SP\2025
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PHASE 1 (BLK 1)PHASE 2 (BLK 3)
FUTURE
CITY PARK
Attachment 2 to Report PLN 19-25
DEVELOPMENT CHARGES DEFERRAL AGREEMENT
THIS AGREEMENT is made the 1st day of October, 2025
BETWEEN:
PTC OWNERSHIP INC.
(the “Owner”)
-and -
THE CORPORATION OF THE CITY OF PICKERING
(the “City”)
RECITALS:
WHEREAS:
A.the City of Pickering passed by-law number 8190/25, which may be amended or
superseded from time to time (the “City’s DC By-law”), which imposes
development charges against land to pay for increased capital costs required
because of increased needs for services arising from development of the area
pursuant to the City’s authority under the Development Charges Act, 1997, S.O.
1997, c. 27 (“DC Act”);
B.the City’s DC By-law permits the City to enter into agreements in accordance
with section 27 of the DC Act, to provide for all or any part of a development
charge to be paid before or after it would otherwise be payable;
C.pursuant to Report FIN 08-25 adopted by City Council, the City is offering a
development charge deferral program for eligible developments that will allow an
applicant to pay the applicable development charges at first occupancy;
D.the Owner is the registered owner of the property municipally known as 1355
Kingston Road in the City of Pickering as described in Schedule A attached to
this Agreement (the “Property”);
E.the Owner is proposing to redevelop the Property and adjacent lands to construct
four towers, with Tower 1 & Tower 2 to be constructed on the Property (Block 1)
and Tower 3 & Tower 4 to be constructed on the adjacent lands (Block 3), as
shown in Schedule D;
F.while one comprehensive site plan application has been submitted for Block 1
and Block 3, the Owner intends to construct Towers 1, 2, 3 and 4 in phases, with
Tower 1 and Tower 2 on Block 1 proceeding first, with Tower 3 and Tower 4 on
Block 3 to follow after;
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G. the Owner has applied for an approval for which development charges are
payable within the meaning of the City’s DC By-law in respect of Block 1 and
Block 3 in order to permit the construction of 2,191 condominium units;
H. this Agreement applies to Block 1 only, being Tower 1 & Tower 2, as shown in
Schedule D;
I. the Owner has requested to enter the City’s Development Charge Deferral
Program to set the development charge rates and defer the payment of
development charges relating to the Development to first occupancy in
accordance with this Agreement, which would otherwise be due and payable at
or prior to the issuance of the building permit pursuant to the City’s DC By-law;
and
J. the Parties agree that this Agreement shall be registered against title to the
Owner’s Lands by the City in accordance with subsection 51(26) of the Planning
Act.
NOW THEREFORE in consideration of the mutual covenants hereinafter contained, the
sum of ten dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows:
ARTICLE 1
INTERPRETATION
1.1 Definitions
In this Agreement and in the recitals above,
(a) “Agreement” means this Development Charges Deferral Agreement;
(b) “Building Permit” means a permit to construct a building within the Lands
pursuant to section 8 of the Building Code Act, 1992 and, unless
otherwise specified, includes a conditional permit, a foundation permit,
and/or an above grade Building Permit, but does not include any permit for
excavation, shoring, repairs, maintenance and usual and minor works or
construction of a temporary sales office on the Property;
(c) “Community Benefits Charge” means a fee from the City for
development or redevelopment of higher density residential properties,
payable to the City by the Owner pursuant to the following:
(i) the City of Pickering By-law No. 8192/25, as amended or replaced
from time to time
(d) “Development” means the development of Tower 1 and Tower 2 on Block
1, as shown on Schedule D, as may be amended.
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(e) “Development Charge Amount” means any development charges related
to the Development or the processing of any application relating to the
Development by the City (excluding Community Benefits Charge), and
without derogating from the generality of the foregoing development,
payable to the City by the Owner pursuant to the following:
(i) the City of Pickering Development Charges By-law, being By-law
No. 8190/25, as amended or replaced from time to time, subject to
the terms of this Agreement.
(f) “Due Date” means the date that is two (2) business days following first
occupancy of the Development as defined herein;
(g) “Owner” means the Owner identified on page 1 hereof and such Owner’s
heirs, administrators, successors and permitted assigns;
(h) “City” means The Corporation of the City of Pickering acting as a body
corporate and all its successor corporations and entities, their past,
present and future elected and appointed officials, officers,
representatives, employees, servants, agents and their respective
successors, assigns, heirs and administrators.
(i) “Security” has the meaning in section 3.1.1 of this Agreement.
(a) “Sears Credit” means the credit, for the demolition and redevelopment of
the Sears building and mall wing, equivalent to the gross floor area (GFA)
of the building demolished multiplied by the same non-residential D.C. rate
as payable.
(j) “Prime” means the annual rate of interest announced by the Royal Bank
of Canada from time to time as being a reference rate then in effect for
determining interest rates on commercial loans made in Canadian
currency in Canada;
(k) “First Occupancy”: means the date an Authority to Occupy certificate is
issued for the building by the City of Pickering, or the first occupancy of
the building, whichever is sooner
1.2 Schedules
The following Schedules are attached to and form part of this Agreement:
Schedule A Legal Description of the Property
Schedule B Residential Development Charges Information Form
Schedule C SECURITY Template
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Schedule D Project Phasing Plan
ARTICLE 2
DEVELOPMENT CHARGE DEFERRAL
2.1 Development Charge Amount
Block 1
2.1.1 The Parties agree that the site plan application date for the Development was
deemed complete by the City on June 7, 2023 and therefore the applicable DC rate for
a 1 Bedroom Condominium Unit is $9,109; for a 2 Bedroom Condominium Unit is
$14,841, subject to interest. More specifically, the total Development Charge Amount
owing for Tower 1 and Tower 2 on Block 1 shall be the Development Charge Amount as
shown in the tables below.
Tower 1 (Northwest tower) Development Charge:
DC Rate Schedule Unit Count
Applicable DC
Rate Total Amount
One-Bedroom & Smaller
Apartment
312 $9,109.00
(6/7/2023 Rates)
$2,842,008.00
Two-Bedroom Apartment 149 $14,841.00
(6/7/2023 Rates)
$2,211,309.00
Retail 5,285 SF $5.66/SF
(July 2022 rate)
$29,913.10
Interest Calculation (Oct 1, 2025) n/a 4.25% $515,874.55
TOTAL DC: $5,599,104.65
Tower 2 (Southwest tower) Development Charge:
DC Rate Schedule Unit Count
Applicable DC
Rate Total Amount
One-Bedroom & Smaller
Apartment
336 $9,109.00
(6/7/2023 Rates)
$3,060,624.00
Two-Bedroom Apartment 177 $14,841.00
(6/7/2023 Rates)
$2,626,857.00
Retail 2,820 SF $5.66/SF
(July 2022 rate)
$15,961.20
Interest Calculation (Oct 1, 2025) n/a 4.25% $578,817.13
- 5 -
DC Rate Schedule Unit Count
Applicable DC
Rate Total Amount
TOTAL DC: $6,282,259.33
2.1.2 The Parties agree that the total number of units in the Development that are
subject to the residential development charges rates under the City DC By-laws are:
• 312 units at the 1 Bedroom & Smaller Condominium rate, 149 units at the
2 Bedroom Condominium rate and 5,285 SF of retail for Tower 1
(northwest corner); and
• 336 units at the 1 Bedroom & Smaller Condominium rate, 177 units at the
2 Bedroom Condominium rate and 2,820 SF of retail for Tower 2
(southwest corner).
This results in a total of 974 units and 8,105 SF of retail, as identified above and in
Schedule B, Residential Development Charges Information Form(s).
2.1.3 The Owner acknowledges and agrees that the deferral of development charges
under this Agreement applies to the units of the Development that are subject to the
residential and non-residential development charges rates under the City’s DC By-law.
2.1.4 The Parties agree that a Development Charge reduction of $1,537,227.70 (the
“Sears Credit”) shall be deducted from the overall Development Charge Amount. The
calculation showing the Development Charge reduction is shown in the table below.
DC Rate Schedule
Sears square
footage
Applicable DC
rate ($ per square
foot) Total
Commercial Use 271,595 5.66 $1,537,227.70
2.1.5 The Sears Credit will result in an adjusted Development Charge Amount of
$10,344,136.28 for the Development.
2.1.6 Notwithstanding sections 2.1.1 to 2.1.5, inclusive, the Owner acknowledges and
agrees that if, prior to the date the first occupancy permit for the Development, the
number or type of units or areas change, the Development Charge Amount will be re-
assessed and calculated based on the revised unit mix based on the Development
Charge rates set out in this Agreement.
2.2 Development Charge Payment Timing
2.2.1 The Parties agree that the Development Charge Amount shall be paid at first
occupancy of for the Development. The Owner agrees to notify the City Treasurer that
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the Development is occupied within five (5) business days of each tower being
occupied.
2.2.2 The Owner agrees that if the payment is not received, in whole or in part, by the
payment’s applicable Due Date, without limiting or prejudicing and in addition to any
other right or remedy the City has in law, the City may draw upon the Security to satisfy
the unpaid Development Charge Amount and accrued interest and any outstanding
amounts not satisfied by the Security may be added to the tax roll for the Property and
collected as realty taxes by the City.
2.2.3 In addition to drawing on the security, the City will impose a late fee on the first
day of default and the percentage charge, shall not exceed 1.50 per cent on the total
amount due to the City.
2.2.4 The Owner acknowledges and agrees that it has not and will not file a complaint
pursuant to the Development Charges Act, 1997 with the City or in any other forum, with
respect to the determination and application of the Development Charge Amount,
provided the City does not breach the terms of this Agreement
2.2.5 Notwithstanding any other term in this Agreement, the Owner may, in its sole
discretion, elect to pay, and the City shall accept, Development Charges for the
Development prior to first occupancy of the Development, in which case, the applicable
Development Charge Amount shall be the Development Charge in the City’s DC By-
law, the DC Act and/or any other applicable legislation, without reference to this
Agreement, at the time the Owner elects and pays the Development Charge to the City
for the Development.
2.2.6 In the event the Owner elects to pay Development Charges prior to first
occupancy pursuant to Section 2.2.5 of this Agreement, the Owner shall have the option
to apply the Sears Credit to reduce such accelerated payment.
ARTICLE 3
OTHER MATTERS
3.1 Security
3.1.1 The Owner shall file with the City a letter of credit or surety bond, which shall be in
the Owner’s discretion (the “Security”), in the amount of $10,344,136.28 for the
Development (100 % of the Development Charge Amount for the Development) prior to
obtaining a first Building Permit for the Development in order to guarantee the due
performance of all of the Owner’s obligations under this Agreement. The Surety Bond
shall be in a form satisfactory to the City’s Treasurer, as per Schedule C, the Surety
Bond Template, and, if the Owner elects to provide the City with a letter of credit, the
letter of credit shall be in accordance with Schedule C.
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3.2 Termination
3.2.1 Notwithstanding any provision in this Agreement, the Owner agrees that this
Agreement terminates, and the unpaid amount of the Development Charge Amount plus
applicable interest becomes due and payable immediately in full in the event of any
default or breach of this Agreement without any further notice. For purposes of this
Agreement, a default or breach of this Agreement shall be deemed to include, but not
limited to the following:
(a) the Property is sold or otherwise transferred by the Owner;
(b) a mortgage, charge, lien, execution or other encumbrance affecting the
Property becomes enforceable against the Property;
(c) the Owner becomes bankrupt, whether voluntary or involuntary, or
becomes insolvent or a receiver/manager is appointed with respect to the
Property; or
(d) payment payable under this Agreement remains unpaid for more than
ninety (90) days after it is due and two (2) notices have been provided to
the Owner.
3.2.2 Notwithstanding subsection 3.2.1(a) above, the Agreement shall not terminate if
the subsequent owner or transferee, prior to the date of the sale or transfer of the
Property, enters into an agreement with the City in a form and substance satisfactory to
the City, in the City’s sole discretion, where the subsequent owner or transferee agrees
to observe and perform all of the Owner’s covenants, agreements and obligations under
this Agreement as if the subsequent owner or transferee was an original party hereto.
The Owner shall not assign or transfer this Agreement without the written consent of the
City. The Owner agrees that it shall be reasonable for the City to withhold its consent at
the City’s sole discretion.
3.2.3 The Parties agree that this Agreement shall terminate if the Owner fails to obtain
the first Building Permit for the Development, by December 31, 2025, in which event the
Parties shall have no further obligations under this Agreement, subject to sections 3.3.1,
3.3.2 and 3.3.3 of this Agreement.
3.3 Indemnity
3.3.1 The Owner agrees to defend, indemnify and hold harmless the City from any and
all manners of action, causes of action, claims, suits, losses, debts, dues, accounts,
bonds, covenants, contracts, damages, costs, interest, demands, liabilities, applications,
directives, third party claims or actions, and prosecutions, directives and/or orders by a
governmental authority, directly or indirectly incurred, sustained or suffered by or
asserted against the City arising out of, relating to or resulting from the breach of this
Agreement and any other obligation of the Owner under this Agreement.
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3.3.2 Without limiting any of its covenants and obligations set out elsewhere in this
Agreement, the Owner agrees to pay all costs and expenses in connection with:
(a) the registration and discharge of this Agreement against title to the
Property;
(b) the preparation of consents to this Agreement;
(c) the preparation of assumption agreements for this Agreement;
(d) without limiting the generality of the foregoing, all legal costs and expenses
incurred by the City in the event that it takes any legal action in response
to any Event of Default, or as it may otherwise take to enforce the City’s
rights under this Agreement.
3.3.3 The Parties agree that the obligations contained in sections 3.3.1 and 3.3.2 shall
survive expiration and/or termination of this Agreement.
3.4 Registration
3.4.1 This Agreement shall be registered against title to the Property and shall be
enforceable against the Owner and all subsequent owners of the Property.
3.4.2 The Owner shall reimburse the City for the cost of registering this Agreement and
all related documents against title to the Property, including, but not limited to:
(a) the registration and discharge of this Agreement against title to the Property;
(b) the preparation of consents to this Agreement;
(c) the preparation of assumption agreements for this Agreement;
3.4.3 The Owner shall give to every purchaser of any part of the Property actual notice
of the existence and the terms of this Agreement and include such notice in any offer to
purchase or other similar document dealing with the Property, (provided that the
obligations in this paragraph 3.4.3 shall not apply to agreements of purchase and sale
for individual condominium units forming part of the Development).
3.4.4 At the request of the Owner, the City shall execute a consent to the discharge of
this Agreement from title to the Property provided that the Owner has paid to the City the
full Development Charge Amount, all other amounts outstanding under this Agreement,
and registration expenses for such release, and is in good standing of this Agreement.
3.5 Recitals
3.5.1 The recitals contained in this Agreement are true and correct and are legally
binding and form a true part of this Agreement.
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3.6 Extended Meanings
3.6.1 This Agreement shall be read with all changes in gender or number as the
context may require.
3.7 Further Assurances
3.7.1 The Parties covenant and agree that at all times and from time to time hereafter
upon every reasonable written request to do so, they shall make, execute, deliver or
cause to be made, done, executed and delivered, all such further acts so as to
effectively implement and carry out the true intent and meaning of this Agreement.
3.8 Notices
3.8.1 Any notice required in writing in this Agreement shall be delivered to the following
address:
(a) To the Owner at:
Attention: Daniel Oliveira (PTC Ownership Inc)
Phone No.: 416-788-2557
E-mail: doliveira@centrecourt.com
With a copy to:
Email: gcheung@centrecourt.com
(b) And to the City at:
One The Esplanade
Pickering Civic Complex
Pickering ON L1V 6K7
Attn: City Clerk
3.8.2 Notice shall be sufficiently given if:
(a) delivered in person;
(b) sent by registered mail; or
(c) sent by electronic transmission during normal business hours on a business
day.
3.8.3 Each notice sent shall be deemed to have been received,
(a) on the day it was delivered;
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(b) on the fifth business day after it was mailed (excluding each business day
during which there existed any general interruption of postal services due to
strike, lockout or other cause); or
(c) on the same day that it was sent by electronic transmission or on the first
business day thereafter if the day on which it was sent by electronic
transmission was not a business day.
3.8.4 The Owner may change its address for notice by giving notice to the City Clerk in
the manner provided in this section.
3.9 Time of the Essence
3.9.1 Time is of the essence of this Agreement and every part of this Agreement and
no extension or variation of this Agreement shall operate as a waiver of this provision.
3.9.2 When calculating the period of time within which or following which any act is to
be done or step taken pursuant to this Agreement, the date which is the reference day in
calculating such period shall be excluded.
3.10 Rights and Remedies
3.10.1 All rights and remedies given to the City by this Agreement are distinct, separate
and cumulative and may be jointly or separately exercised by the City and shall not be
deemed to be in exclusion of any other rights or remedies available to the City under
this Agreement or in law. No delay or omission by the City in exercising any such right
or remedy shall operate as a waiver of them or any other right or remedy, and no single
or partial exercise of a right or remedy shall preclude any other or further exercise of
them or the exercise of any other right or remedy.
3.10.2 This Agreement is made entirely for the convenience and benefit of the Owner
and is in no way to be construed as a waiver or surrender of any rights or remedies that
the City may have to recover the Development Charge Amount by any lawful means
from present and future owners of the Property or as taxes upon the Property.
3.11 Successors and Assigns
3.11.1 The Owner shall not assign this Agreement without first obtaining the City’s
consent, which may be refused at the sole discretion of the City.
3.11.2 This Agreement shall enure to the benefit of and shall be binding upon the
Parties hereto and their respective heirs, executors, administrators, successors and
permitted assigns.
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3.12 Entire Agreement
3.12.1 This Agreement constitutes the entire agreement between the Parties with
respect to the matters set out herein and may not be modified except by subsequent
agreement in writing and executed by the Parties.
3.13 Severability of Terms
3.13.1 All of the terms of this Agreement are severable from each other and will survive
the invalidity of any other term of this Agreement.
3.14 Acknowledgment
3.14.1 The parties acknowledge having had an opportunity to review this Agreement
with their legal advisers and acknowledge that they fully understand all of the terms
contained in it and that the only consideration for this Agreement is as referred to
above.
3.15 Applicable Law
3.15.1 This Agreement shall be construed in accordance with and governed by the laws
of the Province of Ontario.
3.16 Electronic and Counterpart Signatures
3.16.1 This Agreement and any Ancillary Agreements may be executed in one or more
counterparts, each of which shall be deemed to be an original and all of which, when
taken together, shall be deemed to be one and the same agreement or document. A
signed copy of this Agreement or any Ancillary Agreement transmitted by facsimile,
email or other means of electronic transmission shall be deemed to have the same legal
effect as delivery of an original executed copy of this Agreement or such Ancillary
Agreement for all purposes.
3.16.2 This Agreement shall be effective from and after the date of signing by the City, or
by its duly authorized designates.
IN WITNESS WHEREOF the parties have executed this Agreement and if required may
do so with counterpart signatures.
PTC OWNERSHIP INC.
Per:
Name: Gavin Cheung
Title: Authorized Signing Officer
Per:
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Name:
Title:
I/We have authority to bind the Corporation.
THE CORPORATION OF THE CITY OF
PICKERING
Per:
Kevin Ashe
Mayor
Per:
Susan Cassel
City Clerk
SCHEDULE A
LEGAL DESCRIPTION OF THE PROPERTY
Block 1
BLOCK 1, PLAN 40M2772; SUBJECT TO AN EASEMENT IN FAVOUR OF PART LOT
23 CONCESSION 1 PICKERING AS IN ONT1863 & PART 1 40R9167 EXCEPT PART
2 40R8068 & PLAN M16; PART ROAD ALLOWANCE BETWEEN RANGE 3
CONCESSION BROKEN FRONT & CONCESSION 1 PICKERING AS CLOSED BY
BYLAW ONT4676 AS IN PI6510, PART LOT 24 RANGE 3 CONCESSION BROKEN
FRONT PICKERING AS IN ONT9900 & PART LOT 24 CONCESSION 1 PICKERING
EXCEPT HIGHWAY PLAN 45 AS IN DR2362439 SUBJECT TO AN EASEMENT IN
FAVOUR OF PART LOT 21 CONCESSION 1 PICKERING AS IN ONT1501, PART LOT
22 CONCESSION 1 PICKERING AS IN ONT1529, PART 1 40R8588 EXCEPT PART 3
40R8068 AS IN DR2362439 SUBJECT TO AN EASEMENT IN FAVOUR OF PART
LOT 19 CONCESSION 1 PICKERING AS IN ONT1528, ONT1566, PP9911, PP9923,
PART LOT 20 CONCESSION 1 PICKERING AS IN ONT1500, PI9953, PART LOTS 19
& 20 CONCESSION 1 PICKERING AS IN PI24031 (PORTION B) EXCEPT PART 3
40R8332 AS IN DR2362439 CITY OF PICKERING
SCHEDULE B
RESIDENTIAL DEVELOPMENT CHARGES INFORMATION FORM
FOR THE PROPERTY BLOCK 1, TOWERS 1 & 2
(3 PAGES)
CITY DEVELOPMENT CHARGES RATES BASED UPONDEVELOPMENT SITEPLAN APPLICATION
DEEMED COMPLETE DATE OF JUNE 7, 2023.
SCHEDULE B (PAGE 1 OF 3)
SCHEDULE C
SECURITY TEMPLATES
See Attached Letter of Credit and Surety Bond Templates.
Required form for Letter of Credit
[Insert name of]) Agreement
To: The Corporation of the City of Pickering, Civic Complex
One The Esplanade, Pickering, ON L1V 6K7
Re: Description of Lands Affected
(Use exact description from ‘Lands Affected’ clause in Agreement)
City File: (SP#, S# or D#)
We hereby authorize you to draw on [insert name of bank], [insert address of bank], for account of
[insert name of company or companies obtaining security] up to an aggregate amount of [insert
amount of security in figures and in full] available by drafts at sight for 100% on demand as follows:
Pursuant to the request of our customers(s), the said [insert name of company or companies
obtaining security], we [insert name of bank], [insert address of bank], hereby establish and give
to you an irrevocable Letter of Credit in your favour in the total amount of [insert amount of security
in numbers and in words] which may be drawn on by you at any time and from time to time upon
written demand for payment made upon us by you which demand we shall honour without inquiring
whether you have a right as between yourself and our said customer(s) to make such demand, and
without recognizing any claim of our said customer(s) .
Provided, however, that you are to deliver to [insert name of bank], [insert address of bank], at
such time as a written demand for payment is made upon us a certificate signed by you agreeing or
confirming that monies drawn pursuant to this Letter of Credit are payable to you or are to be or have
been expended pursuant to obligations incurred or to be incurred by you with reference to your file
regarding a [insert either Site Plan Control, Subdivision or Development Agreement] dated
[insert date of Agreement], between [insert name of owner referenced on Agreement, other
than City and Encumbrancer(s)] and The Corporation of the City of Pickering; this Letter of Credit
is required pursuant to section ____ of that Agreement.
Partial drawings are permitted.
The amount of this Letter of Credit shall be reduced from time to time as advised by notice in writing
given to us from time to time by you.
This Letter of Credit will continue up to and including [insert date of expiry of Letter of Credit] and
will expire on that date and you may call for payment of the full amount outstanding under this Letter
of Credit at any time up to the close of business on that date. It is a condition of this Letter of Credit
that it shall be deemed to be automatically extended for one year from the present or any future
expiration date hereof, unless thirty days prior to any such date, we shall notify you in writing by
registered mail that we elect not to consider this Letter of Credit renewed for any such additional
period.
We hereby covenant with drawers, endorsers, and bona fide holders of drafts drawn under and in
accordance with the terms of this credit that such drafts will be duly honoured if drawn and negotiated
on or before [insert date of expiry of Letter of Credit] or any automatically extended expiry date.
The drafts drawn under this credit are to be endorsed hereon and shall state on their face that they
are drawn under [insert name of bank], [insert address of bank].
Dated this day of , 20 .
Instructions for completing Letter of Credit:
1. Letter of Credit must be typed on bank letterhead.
2. Information required in square brackets must be provided where indicated, without brackets.
3. Phrases shown in round brackets must be included without brackets where there are two or
more companies comprising the customer.
4. The date in the sixth paragraph must be at least one year from the date of the Letter of Credit.
5. The date in the seventh paragraph must be the same as the date in the sixth paragraph.
6. Bank signatories must show name, printed or typed, and title, in addition to signature.
Acceptable Banking Institutions:
1. Letters of Credit may be accepted from any of the following six largest banks set out in Schedule
I of the Bank Act (R.S.C.1985, C.B-1.01, and any amendments thereto):
• Bank of Montreal
• Bank of Nova Scotia
• Canadian Imperial Bank of Commerce
• National Bank of Canada
• Royal Bank of Canada
• Toronto Dominion Bank
2. Letters of Credit may be accepted from other Schedule I banks and Schedule II banks listed in the
Bank Act (R.S.C. 1985, C.B-1.01 and any amendments thereto), that meet and maintain
minimum credit ratings as described in the City’s Letters of Credit Acceptance policy
3. Letters of Credit from any other institutions, including trust companies, credit unions and
Schedule III banks, will not be accepted.
[Insert Name of Agreement]Bond
Bond Number: [insert number] Amount: $[insert amount]
Know all persons by these presents, that [insert company name] as Principal, hereinafter called
the “Principal”, and [insert company name], as Surety, hereinafter called the “Surety”, are held and
firmly bound unto The Corporation of the City of Pickering, as Obligee, hereinafter called
“Obligee”, in the amount of [insert amount in words] ($[insert amount in numbers]), lawful money
of Canada, for the payment of which sum, well and truly to be made, the Principal and the Surety bind
themselves, their heirs, executors, administrators, successors and assigns, jointly and severally,
firmly by these presents.
Whereas the Principal and Obligee have entered into an agreement made the [insert date] day of
[insert month], [insert year] with respect to lands legally described as [insert legal description],
City of Pickering (said agreement is by reference made a part hereof and is hereinafter referred to as
the ‘[insert name of agreement]”.
And Whereas the [insert name of agreement], among other things, requires the Principal to
construct and maintain site improvement works as described in the [insert name of agreement].
Now Therefore, the condition of this obligation is such that if the Principal, in the opinion of the
Obligee’s Director, City Development & CBO, or designate, constructs, installs and maintains the site
improvement works in accordance with the [insert name of agreement] and at all times indemnifies
the Obligee from all loss, expense and damage which the Obligee may sustain by reason of the
failure or default on the part of the Principal to keep, do and perform any of the stipulations,
conditions, covenants and terms of the [insert name of agreement], then this obligation shall be void
and of no effect; otherwise, it shall remain in full force and effect.
Provided, however, the foregoing obligation is subject to the following conditions and provisions:
1. Whenever the Principal shall be declared in writing by the Obligee to be in default under the
[insert name of agreement], and the Obligee intends to make a demand under this bond,
the Obligee shall promptly notify the Principal and the Surety in writing of such default.
2. Any written demand for payment under this bond (hereinafter referred to as the “Demand”)
shall:
a. Specify the amount of monies drawn pursuant to this bond; and
b. Provide a certificate to the effect that the amount of monies drawn pursuant to this bond
have been paid, are payable, or will be payable by the Obligee pursuant to obligations
incurred by the Obligee to remedy the Principal’s default under the [insert name of
agreement].
3. Upon receiving the Demand from the Obligee, the Surety shall make payment to the Obligee
in the amount of the Demand to enable the Obligee to remedy the Principal’s default under
the [insert name of agreement], including any and all administration fees due from the
Principal to the Obligee under the [insert name of agreement].
4. The Obligee may make multiple Demands under this bond.
5. The Obliged shall provide to the Surety a summary of the amounts expended by the Obligee
(including invoices, if applicable), to remedy the Principal’s default under the [insert name of
agreement]. In the event the total amount of all payments made by the Surety under this
bond exceeds the amount required to indemnify the Obligee with respect to remedying the
default of the Principal under the [insert name of agreement], the Obligee shall return all
excess payments to the Surety.
6. Each payment made by the Surety under this bond shall reduce the amount of this bond.
7. In no event shall the Surety be liable for a greater sum than the amount of this bond.
8. No right of action shall accrue upon or by reason hereof to or for the use or benefit of any
person other than the Obligee.
9. When the Principal has completed all works required by the [insert name of agreement] to
the Obligee’s satisfaction, all maintenance and rectification periods contained within the
[insert name of agreement] have expired, and the Obligee has issued a Final Acceptance
Certificate, the Obligee shall return this bond to the Surety for termination or advise the Surety
in writing that this bond is terminated, in accordance with the terms of the [insert name of
agreement].
10. If the Surety at any time delivers at least 60 days prior written notice to the Obligee and to the
Principal of its intention to terminate this obligation, the Principal shall deliver to the Obligee,
not less than 30 days prior to the termination of this bond, financial security in the amount of
this bond in a form acceptable to the Obligee. If the replacement financial security is not
provided by the Principal or is not accepted by the Obligee, this bond shall remain in effect.
11. Nothing in this bond shall limit the Principal’s liability to the Obligee under the [insert name of
agreement].
12. Notices to the Surety, including Demands, are to be delivered to the Surety at [insert full
mailing address].
In Testimony Whereof, the Principal has hereto set its hand and affixed its seal and the Surety has
caused these presents to be sealed with its corporate seal duly attested by the signature of its
authorized signing authority.
Signed and Sealed this [insert date] day of [insert month], [insert year] in the presence of:
[insert company name]
___________________________________________ (Signature of Authorized Signing Officer)
___________________________________________ (Print name and title of Signature of Authorized Signing Officer)
I have the authority to bind the corporation.
[insert company name]
___________________________________________
[insert name, title]
Instructions for completing Surety Bond template:
1. Surety Bond must be on surety provider’s letterhead.
2. Information required in square brackets must be provided where indicated, without
brackets.
3. Principal’s signature must show name and title, printed or typed, in addition to signature.
Acceptable Surety Providers:
1. The City will accept surety bonds from Canadian surety providers that meet and maintain
minimum credit ratings as described in the City’s Surety Bond Acceptance policy.
2. The issuing company shall be incorporated in Canada for no less than ten (10) years and
issue Surety Bonds in Canadian dollars.
3. The issuing surety provider must be an active institution monitored by the Office of the
Superintendent of Financial Institutions (OSFI).
Surety Bond Upset limit:
1. The acceptance of Surety Bonds is limited to an upset amount of $15 million per
agreement. If the amount of financial security is above the upset limit, then the balance
remaining must be secured by a Letter of Credit
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SCHEDULE D PROJECT PHASING PLAN
PROJECT PHASING PLAN
1382-8577-2056