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HomeMy WebLinkAboutMay 6, 2019C!, ef DICKERING Executive Committee Agenda Monday, May 6, 2019 Council Chambers 2:00 pm Chair: Councillor Butt Anything highlighted denotes an attachment or link. By clicking the links on the agenda page, you can jump directly to that section of the agenda. To manoeuver back to the agenda page use the Ctrl + Home keys simultaneously, or use the "bookmark" icon to the left of your screen to navigate from one report to the next. For information related to accessibility requirements please contact: Linda Roberts 905.420.4660 extension 2928 Iroberts@pickering.ca PICKERING C4 Executive Committee Meeting Agenda Monday, May 6, 2019 Council Chambers - 2:00 pm Chair: Councillor Butt 1. Disclosure of Interest 2. Delegations 3. Matters for Consideration Pages 3.1 Director, City Development & CBO, Report PLN 12-19 1 Bonus Zoning Policy, City of Pickering Recommendation That the Bonus Zoning Policy, dated May 6, 2019, be approved as set out in Appendix I to Report PLN 12-19. 3.2 Director, Finance & Treasurer, Report FIN 07-19 Development Charges Reserve Fund — Statement of the Treasurer for the Year Ended December 31, 2018 Recommendation 19 That Report FIN 07-19 of the Director, Finance & Treasurer respecting the Development Charges Reserve Fund be received for information. 4. Other Business 5. Adjournment For information related to accessibility requirements please contact: Linda Roberts 905.420.4660 extension 2928 Iroberts@pickerinq.ca DICKERING Report to Executive Committee Report Number: PLN 12-19 Date: May 6, 2019 From: Kyle Bentley Director, City Development & CBO Subject: Bonus Zoning Policy City of Pickering File: L-1100-020 Recommendation: 1. That the Bonus Zoning Policy, dated May 6, 2019, be approved as set out in Appendix I to Report PLN 12-19. Executive Summary: The Planning Act allows municipalities with appropriate Official Plan provisions to grant increases in the density or height of a development in exchange for community benefits. The City's Bonus Zoning policies in the Official Plan permit Council to pass by=laws that grant an increase in density of development not exceeding 25 percent of the density permitted by the Official Plan, or an increase in the height of a building. To date, the City has approved two requests to utilize the Official Plan Bonus Zoning policies and has received two other requests that are currently under consideration by the City. It is anticipated that more requests will be received as the City intensifies. Staff have prepared, for Council's approval, a Bonus Zoning Policy, to ensure a consistent and transparent approach when identifying eligible developments and community benefits, calculating the value of the applicant's contribution towards a community benefit, and negotiating the required Section 37 agreements. Financial Implications: No immediate direct costs to the City are anticipated as a result of the recommendations of this Report. In 2017, City Council enacted By-law 7590/17 establishing a Public Benefits Reserve Fund. By-law 7590/17 implemented changes to the Planning Act resulting from the passage of the Smart Growth for our. Communities Act (Bill 73). Municipalities must now maintain a special account (reserve fund) for funds collected under Section 37 of the Planning Act, and may only spend the funds on facilities, services and other matters specified in. the By-law. The Treasurer must issue an annual disclosure statement of funds received and how funds were spent. PLN 12-19 May 6, 2019 Subject: Bonus Zoning Policy Page 2 1. Discussion 1.1 The Official Plan permits Council to grant increases in density and height Section 37 of the Planning Act allows municipalities with appropriate Official Plan policies to grant through the approval of a Zoning By-law Amendment Application, increases in a development's density or height in exchange for community benefits. The Bonus Zoning policies in Pickering's Official Plan permit City Council to pass by-laws that grant an increase in the density of development not exceeding 25 percent of the density permitted by the Official Plan, or an increase in the height of a building, only in return for the provision of specific services, facilities or matters (community benefits). The community benefits are to be specified in the implementing zoning by-laws. The Official Plan policies also require that the surrounding areas experiencing the increased density or height benefit from the positive impacts of the exchange; that the effects of the increased density or height are in conformity with the general intent of the Official Plan, and that the owner enter into an agreement with the City registered on title and addresses the provision and timing of the community benefit to be provided. 2. The City has received rezoning applications asking for density and height bonuses In 2016, Madison Liverpool Limited was the first applicant to request a density bonus. City Council enacted a site specific zoning by-law (By-law 7528/16) permitting a maximum of 67 units to facilitate the development of a common element condominium of detached dwellings and townhouse units. The By-law permitted an additional 10 units which equaled a 17.2 percent increase over the maximum density permitted by the Official Plan. The community benefit received in return was a cash contribution in the amount of $270,000.00 for the enhancement of the Frenchman's Bay Ratepayers Memorial Park, which is adjacent to the development site along the north side of Commerce Street. The residential development is under construction and the park enhancement is complete. Three other applications for bonus zoning have been received. All are within the Duffin Heights Neighbourhood. The table below provides a brief summary of the three requests to use the Bonus Zoning Provisions: Applicant Proposal Requested Increase in Density or Height Proposed Community Benefit Status 9004827 To permit a total An additional Cash Awaiting Local Canada Inc. of 726 stacked 22 units beyond contribution in Planning Appeal (Stonepay) townhouse, back to -back townhouse, and the maximum permitted density, resulting in a the amount of $260,300.00 towards an Tribunal (LPAT) approval (Council street townhouse density increase of enhanced endorsement on units approximately 3.0 percent village green located within the draft plan of subdivision June 25, 2018, see PLN 20-18) PLN 12-19 Subject: Bonus Zoning Policy May 6, 2019 Page 3 Applicant Proposal Requested Increase in Density or Height Proposed Community Benefit • Status Averton (Brock) Limited • To permit a total of 787 units within 4 separate phases consisting of back-to-back townhouses, stacked back -to- back townhouses, stacked and apartment units. (Bonus Zoning request is for Phases 3 and 4 only.what Phase 1 is constructed and Phase 2 is under construction) An additional 45 units beyond the maximum permitted density, resulting in a density increase of approximately 6.0 percent. Increase the maximum height for apartment buildings beyond is permitted by the current Zoning By-law, from 26.0 metres (8 storeys) to 67.0 metres (21 storeys) Undetermined at this time Under Review (see Information Report 11-17) Brock-Dersan Developments Inc. ,To permit a total of 411 units cohsisting of apartment units, stacked back -to- back townhouses and townhouse units An additional 55 units beyond the maximum density, resulting in a density increase of approximately 15 percent Enhanced landscaping along Brock Road Under Review (see Information Report 06-18) To assist in evaluating existing and future bonus zoning requests, a City Bonus Zoning Policy is recommended (see Appendix I). The Policy will ensure a consistent and fair approach when identifying eligible developments and community benefits, calculating the value of the applicant's contribution towards community benefits, and negotiating the required Section 37 agreements. 3. A Bonus Zoning Policy is proposed In Report PLN 19-16 that addressed the first Bonus Zoning request from Madison Liverpool Limited, staff indicated their intention to develop, for Council's consideration, an internal policy and associated procedures to implement the Bonus Zoning policies of the Pickering Official Plan. The approach developed by staff was based on a review of best practices of 13 municipalities. The principle of capturing the increased value of the land resulting from the increased density or height was used to determine the community benefit contribution made by the applicant. 3 PLN 12-19 May 6, 2019 Subject: Bonus Zoning Policy Page 4 The purpose of the recommended Bonus Zoning Policy is to provide policy and procedures for the identification of community benefits,the role of staff and Council, the calculation of the developer's contributions towards community benefits, the negotiation of the implementing agreements, the preparation of the implementing zoning by-laws, the handling of cash contributions, and the reporting of staff to Council. The following is a summary of the proposed Bonus Zoning Policy: Procedure • City Development staff is to be the initial point of contact for negotiations regarding community benefits • the Mayor and Council are notified of an application requesting Bonus Zoning through the circulation of a Notice of Complete Application • the public will be invited to comment on Bonus Zoning requests at community open houses and Statutory Public Information Meetings • following the Statutory Public Meeting, City staff, in consultation with elected officials, will work on the details of the appropriateness of the proposed community benefit and the valuation of the contribution by the applicant • the contribution of community benefits in exchange for an increase in density or height will only be considered for proposals that are compatible with the surrounding neighbourhood and represent good planning • developments requesting Bonus Zoning consideration will not be exempted from development charges or parkland contributions under the Planning Act • to ensure appropriate public engagement concerning the nature of the Community Benefit, an application for an increase in density or height will only be considered through a Zoning By-law Amendment Application Community Benefits • community benefits are the provision of specific services and/or facilities, such as but not limited to, additional open space or community facilities, assisted or special needs housing, the preservation of heritage buildings or structures, or the preservation of natural heritage features and functions beyond identified development limits • the community benefits that are negotiated are to directly benefit the community within the vicinity of, and the residents/occupants of, the proposed development • the valuation of community benefits is based on, 1) capturing the increase in land value resulting from the increase in density or height, and 2) a reasonable percentage (20 to 40 percent) of the increase in land value resulting from the approved increase in density or height • the percentage of the increase in land value will be determined by the value of the community benefit identified by the City Implementation • the implementing zoning by-law will address the contribution to be provided by the owner/applicant, details of the community benefit, the timing of the payment of the contribution or the provision of the community benefit, and the requirement for a Section 37 Agreement and its registration on title of the subject lands 4 PLN 12-19 May 6, 2019 Subject: Bonus Zoning Policy Page 5 • cash contributions will be placed in a dedicated Section 37 Reserve Fund managed by the Finance Department and spent only for facilities, services and other matters specified in the implementing zoning by-law • the Director, Finance & Treasurer, will provide Council with an annual detailed financial statement related to Bonus Zoning special accounts 4. Staff Recommend that the Bonus Zoning Policy be approved by Council Staff have consulted with the Finance and Corporate Services Departments in the preparation of the Draft Bonus Zoning Policy. Additionally, the City's internal `Policy' Committee has reviewed the draft policy. Staff recommend that Council approve the attached Draft Bonus Zoning. Policy as set out in Appendix 1. Appendix Appendix 1 Draft Bonus Zoning Policy Prepared By: Approved/Endorsed By: Deborah Wy le, MCIP, RPP Catherine Rose, MCIP, RPP Principal Planner, Development Review Chief Planner Nilesh Surti, MC.IP, RPP Manager, Development Review & Urban Design DW:Id Kyle Bentley, P.Eng. Director, City Development & CBO Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer +IA za7 5 Draft Bonus Zoning Policy 6 Appendix I to Report PLN 12-19 C4,,,L._.. DICKERING Policy Procedure Title: Bonus Zoning Policy Number X Reference Ontario Planning Act Date Originated (m/d/y) May 2019 Date Revised (m/d/y) "Click and type date" Pages X Approval: Chief Administrative Officer Point of Contact Chief Planner, City Development Policy Objective The objective of this policy is to implement the Bonus Zoning policies of Section 16.17 of the Pickering Official Plan, in accordance with Section 37 of the Planning -Act, as amended. Purpose The purpose of this policy is to provide an implementation structure outlining t • procedures for processing a Zoning By-law Amendment Application requesting additional density or height through the Bonus Zoning policies of Section 16:17 of the Pickering Official Plan • process to identify Community Benefits • methodology to calculate valuations for Bonus Zoning contribute • process for negotiating Bonus Zoning Agreements. • preparation of implementing Bonus Zoning By-laws Index 01 Definitions 02 Legislative Authority 03 Scope and Application 04 Procedures 04.01 Receipt and Processing of the Zoning By-law Amendment Application 7 04.02 Determining Community Benefits 04.03 Location of Community Benefits 04.04 Valuation of Community Benefits 04.05 Implementing Zoning By-law and Bonus Zoning Agreements 04.06 Cash Contributions 04.07 Reporting to Council 01 Definitions 01.01 Bonus Zoning — is a planning tool, authorized by Section 37 of the Planning Act, which enables municipalities to secure Community Benefits through Bonus Zoning Agreements in conjunction with a Zoning By-law Amendment Application that permits increased density and/or height over and above existing planning permissions. 01.02 Cash Contributions — means money provided to the City that are used toward specific facilities or amenities in -lieu of the owner constructing or providing specific facilities or amenities. • 01.03Community Benefit means facilities or cash secured by the City and provided by an owner/applicant for specific public facilities, services or matters. 01.04 Owner - means the registered owner of the property or a representative (applicant or developer) of the registered owner of the property. 01.05 Bonus Zoning Agreement — is a legally enforceable agreement negotiated between the City and an owner that outlines the terms of the exchange of density and/or height for Community Benefits. 02 Legislative Authority 02.01 The Planning Act, as amended, and the City of Pickering Official Plan, as amended, is the legislative authority for this policy. 02.02 The Bonus Zoning policies of the Pickering Official Plan permit Council to pass by-laws that grant an increase in density of development not exceeding 25 percent of the density permitted by the Official Plan or an increase in the building height providing: a) the density or height bonus is given only in return for the provision of specific services, facilities or matters specified in the by-law, such as but not limited to, additional open space or community facilities, assisted or special needs housing, the preservation of heritage buildings or structures, or the preservation of natural heritage features and functions; Policy Title: Bonus Zoning Page 2 of 12 8 Policy Number: "Click to type Policy Number." b) when considering an increase in density or height, and allowing the provision of benefits off-site, the positive impacts of the exchange should benefit the social/cultural, environmental and economic health of the surrounding areas experiencing the increased density and/or height; c) the effects of the density or height bonus have been reviewed and determined by Council to be in conformity with the general intent of the Official Plan, by considering such matters as: i) the suitability of the site for the proposed increase in density and/or height in terms of parking, landscaping, and other site specific requirements; ii) the compatibility of any increase in density.and/or height with the character of the surrounding neighbourhood; and d) as a condition of granting a density or height bonus; the City requires the benefitting landowner(s) to enter into one or more agreements, registered against the title of the lands, dealing with the provision and timing of the specific facilities, services or matters to be provided in return for the bonus: 03 Scope and Application 03.01 This policy is applicable toall Zoning By-law Amendment Applications requesting an increase in density or height in accordance with the Bonus Zoning policies of Section 16:17 -of the Official -Plan. 03.02 This policy does not apply to any agreements executed or approved in principle by Council prior to Council's approval of this Policy. 03.03 This policy and any recommendations for Zoning By-law Amendment Applications requesting an increase in density or height, or Bonus Zoning Agreements will be managed by the City Development Department in consultation with the Chief Administrative Officer, Corporate Services Department, Finance Department, Engineering Services Department, and other Departments or external agencies as required. 03.04 The City may develop further City wide, area specific.or site-specific Bonus Zoning Official"Plan policies, which may specify an amount of authorized increases of additional density or height in return for Community Benefits in place of the 25 percent increase in'density permitted by the Official Plan. 03.05 Bonus Zoning is not a means to address the shortcomings of a development proposal. Prior to considering the contribution of Community Benefits in exchange for an increase in density or height, the Director, City Development & CBO, or Chief Planner must be satisfied the development represents good planning and recommends support of the proposal. Good planning includes addressing the following: Policy Title: Bonus Zoning Policy Number: "Click to type Policy Number." Page 3 of 12 9 • the Planning Act, applicable provincial and regional plans and policies, and the City Official Plan and urban design guidelines • the density, height, scale and massing are appropriate for the site and neighbourhood, and are compatible with adjacent uses • the surrounding community is not negatively impacted by shadows or over flow parking • the proposed development exhibits high quality urban design and architecture • there is adequate existing or proposed infrastructure • requirements of the City and public agencies are addresser • there is a clear connection between the area of the community impacted by the proposed increase in density or height of the development and the negotiated Community Benefits 03.06 Community Benefits are generally not expected to mitigate adverse planning impact of developments. Anything that is necessary to mitigate adverse impact is considered necessary for good planning and should not be deemed an eligible Community Benefit. 03.07 If a Zoning By-lawAmendment Application requesting an increase in density or height is appealedtothe Local Planning Appeal Tribunal (LPAT), the City, at the direction of Council, may request the LPAT impose as a condition of approval, appropriate provisions in the implementing zoning by-law and the requirement for an owner/applicant to enter a Bonus Zoning Agreement. 03.0 There will be no reductions, waivers, credits or exemptions for developments subject to Bonus Zoning Agreements from development charges under the Development Charges Act and parkland or cash -in -lieu contributions requirements under Section 42 of the Planning Act, as amended. 03.09 A request for an increase in density or height through the Bonus Zoning policies of Section 16.17 of the Pickering Official Plan will only be considered through a Zoning By-law Amendment Application to ensure appropriate public engagement for consideration about the nature of the Community Benefit. Policy Title: Bonus Zoning Page 4 of 12 1 CPolicy Number: "Click to type Policy Number." 04 Procedures 04.01 Receipt and Processing of the Zoning By-law Amendment Application. Prior to the submission of a Zoning By -taw Amendment Application, the initial point of contact by an owner/applicant shall be with City Development staff for any discussions or negotiations regarding Community Benefits.. City Development staff will provide the Mayor and Ward Councillors with advice as to whether Community Benefits are appropriate and desirable, and information on the appropriate types of benefits. Further consultation between City Development staff and the Mayor and Ward Councillors may occur as necessary or agreed upon between them. The Planning Rationale for any Zoning By-law Amendment Application submitted to the City Development Department requesting additional density or height is to include a Bonus Zoning Justification Brief which must address the following: • Section 16A7 of the Pickering Official Plan; • applicableprovincial and regional plans anc olicies; • applicable Official Plan policies; Neighbourhood Policies, Development Guidelines and any approved Urban -Design Guidelines, and • principles of good -planning and appropriate development. City Development staffwill';prepare and circulate the Notice of Complete Appan lication to the Mayor d Ward Councillors and the public as required by the Planning Act, as amended; advising that Bonus Zoning is being requested. The Notice of Complete Application will include a description of the development proposal and the Community Benefit proposed. The public will be consulted and provided opportunities to comment on the proposed development and the appropriate type or level of Community Benefits at appropriate steps in the development review process such as at community open houses and the statutory public information meeting. In consultation with the Mayor and Ward Councillors, a community open house may be scheduled for the public to provide input into the development proposal and the proposed Community Benefit. The Notice of Statutory Public Information Meeting is prepared and circulated as required by the Planning Act, as amended, and the Information Report is prepared by City Development staff describing details of the proposed development, the requested increase in density or height, and the proposed Community Benefit. Policy Title: Bonus Zoning Policy Number: "Click to type Policy Number." Page 5 of 12 11 The Statutory Public Information Meeting is held where details of the requested increase in density or height and proposed Community Benefit are presented to the Committee and public input is received. Following the Statutory Public Information Meeting, City Development staff, the Finance Department and other City staff as required will work with the owner/applicant on the details of the proposed bonus zoning and Community Benefits. The following matters are to be considered in determining the Community Benefit: • consultation with the Mayor and Ward Councillors, other City departments and the local community, • consistency with the Pickering Official Plan policies, Neighbourhood Policies, Development Guidelines and any approved Urban Design Guidelines, • Council approved studies outlining community needs, and • public input. City Development staff will prepare a Recommendation Report on the Zoning By-law Amendment Application to be considered by the Planning & Development Committee and Council. The Report will contain a recommendation on the proposed development, the request to increase the density or height, and on the appropriateness of the proposed Community Benefit, and if supported, will include necessary conditions to secure the Community Benefit. Following Council's approval, staff will prepare a Bonus Zoning Agreement, and implementing Zoning By-law Amendment. 04;02 Determining Community Benefits It is desirable and encouraged that an analysis and identification of existing and potential needs and services be done in advance of the receipt of a Zoning By-law Amendment Application requesting additional density or height through the Bonus Zoning policies of Section 16.17 of the Pickering Official Plan. Consideration should be given to intensification issues in the area, the nature of the proposal, and the strategic objectives and policies of the Pickering Official Plan. The purpose of such analysis is to assist in determining the appropriate type of Community Benefit. Some examples of Community Benefits are listed in Section 16.17(a) of the Official Plan, however this list is not exhaustive. Community Benefits shall be specific public facilities, services or matters, or cash -in -lieu contributions towards specific public facilities, services or matters, which may include but are not be limited to: Policy Title: Bonus Zoning 1 policy Number: "Click to type Policy Number." Page 6 of 12 • additional open space for the purpose of public parkland, or public trails • community facilities such as playgrounds, sports fields, day cares, community halls, trails/walkways • affordable rental and/or ownership housing secured for a minimum of 20 years • preservation of heritage buildings or structures • preservation of natural heritage features and functions such as woodlots Operating, programming, and non -capital maintenance funds are not appropriate Community Benefits. The securing of improvements to public facilities, including cash contributions toward such facilities that are leased by the City is an eligible Community Benefit. There should be an existing lease, or a lease that is renewable at the City's option securing the facilities for at least 15 years from the time the Community Benefit is provided to the .City. Community Benefit contributions towards public facilities, services or matters will be over and above the facility costs that would be funded through or dedicated to the City through the Development Charges By-law, as amended, or parks contributions under the Planning Act, as amended. Community Benefits may be further identified -in Council approved Neighbourhood Policies, Development Guidelines and any approved Urban Design Guidelines. 04.03 Location of Community Benefits A reasonable planning relationship between the secured Community Benefit and the increase in density or height as determined by City Development staff is .................. required. The principle: of a reasonable planning relationship refers to the following: the proximity of the Community Benefit to the proposed development and the neighbourhood where the proposed development is located, and • a comparison of the monetary value of the additional development rights being proposed with the monetary value of the Community Benefit. The Community Benefit or the cash contribution may be accepted to address City wide needs, which cannot be adequately addressed in the vicinity of the proposed development. A change to an existing agreement to reallocate funds or change the Community Benefit may be possible. The change process must be open, public, Policy Title: Bonus Zoning Policy Number: "Click to type Policy Number." Page 7 of 12 13 and subject to the appropriate legal processes, and authorized by Council. All parties to the original agreement, their successors in title, must approve the change and sign an amending agreement. 04.04 Valuation of Community Benefits An `increase in land value' approach will be used to set the minimum and maximum limits for Bonus Zoning contributions. The contribution for a Community Benefit represents a reasonable portion j(20 to 40 percent) of the increase in land value resulting from an increase in density or height over the Base Density. The base density is the maximum density permitted by the Pickering Official Plan. The percentage of the increase in land value applied in each Bonus Zoning proposal will be determined by the value of the community benefit identified by the City To determine the Land Value, the owner/applicant will submit for the City's review a land appraisal report, prepared by an Accredited Appraiser. Alternatively the Land Value will be determined by other reasonable methods as determined by the City using Municipal Property Assessment Corporation, recent sale values for the property, or a purchase and sale agreement that is less than one year old. Should the owner/applicant and the City not agree with the submitted land appraisal, the City will commission a` land appraisal report the cost of which will be covered by the owner/applicant. The staff report recommending approval of the Bonus Zoning proposal will contain an outline of the increased density or height proposed, the Community Benefit to be secured, and the value and timing of the Community Benefit and contribution to be made by the owner/applicant. calculations to determine the financial value of the Bonus Zoning Contributions are outlined in the following tables. Policy Title: Bonus Zoning 14 olicy Number: "Click to type Policy Number." Page 8of12 Table 1 — Land Designated Urban Residential Areas and Mixed Use Areas Excluding City Centre 1. Maximum Number of Units Permitted Land Area (A) X Base Density (B) (maximum density permitted by the Official Plan) = Maximum Number of Units Permitted (C) Example: 1.0 ha X 140 dwellings per net ha f 140 units 2. Land Value of Each Permitted Unit Appraised/ X Maximum Residential = Land Value of Each Land Value (D) X Units Permitted (C) _ Permitted Unit (E) Example: $1,000,000.00 / 140 units= $7,142.86 3. Land Value Resulting from Proposed Density Land Value of Each Permitted Unit (E) X Proposed Residential Den Sky (maximurr of 25 percen increas=6-6 verpermitted density) Land'Value Resulting from Proposed Density (G) Example: $7,142.86 175 units per net ha $1,250,000.00 Land Value Resulting from Proposed Density (G) Appraised Land Value (D) Increase in Land Value (H) Example: _$1,250,000.00 $1,000,000.00 $250,000.00 linimum and Maximum Limits for Bonus Zoning Contribution Increase in Land Value (H) X 20 percent to 40 percent (I) = Minimum & Maximum Limits for Bonus Zoning Contribution (J) Example: $250,000.00 X 20 percent t 40 percent = $50,000.00 (min) $100,000.00 (max) Policy Title: Bonus Zoning Policy Number: "Click to type Policy Number." Page 9 of 12 15 Table 2 — Land Designated City Centre (Increased Height Requested) 1. Land. Value of Each Permitted Unit Appraised 1 Number of Residential Land Value of Each Land Value (A) X Units Proposed within the Permitted = Unit at Permitted Maximum Height (C) Maximum Height (B) Example: $1,000,000.00 1 350 = $2,857.00 2. Land Value Resulting from the Proposed Number of Units Land Value of Each Unit at Permitted Maximum Height (C) X Total Proposed Number of Units(D) Land Value Resulting from Proposed Number of Units (E) Example: $2,857.00 X 420 $1 199,940.00 3. Increase in Land Value, Land Value Resulting from Proposed Number of Units (E) Appraised Land Value (A) Increase in Land Value (F) Example: $1,199,940.00 $1,000,000.00 $199,940.00 4. Minimum and Max mum Limits for Bonus Zoning Contribution Increase in Land Value (F) X 20 percent to 40 percent (G) _ Minimum & Maximum Limits for Bonus Zoning Contribution (H) Example: $199,940.00 X 20 percent 40 percent = $39,988.00 minimum $79,976.00 maximum Policy Title: Bonus Zoning 1 rolicy Number: "Click to type Policy Number." Page 10 of 12 04.05 Implementing Zoning By-law and Bonus Zoning Agreements The implementing Zoning By-law will address the Bonus Zoning provisions including the amount of the cash contribution to be provided by the owner/applicant, details of the Community Benefit, the timing of the payment of the cash contribution, the timing of the provision of the Community Benefit, and the requirement for a Bonus Zoning Agreement and its registration on title of the subject lands. The Bonus Zoning Agreement will identify the Community Benefit, how any cash contribution will be used, and will be registered on title of the subject lands. The implementing Zoning By-law and Bonus Zoning Agreement may, at the City's discretion, identify how any excess funds remaining after.a completion and closing of a Community Benefit project may be_used. The payment or provision of Community Benefits generally does not occur upon execution of the Agreement. The timing of. payment or provisions of benefits will be outlined in the implementing Zoning`By law and the Bonus_Zoning Agreement. The payment for the cash contribution will be due at the time' of execution and negotiation of a site plan agreement, subdivision agreement or development agreement unless otherwise agreed to by Council In a phased development,._ the payment of the cash contribution may, at the City's discretion, be phased and the tithing will be outlined in the Bonus Zoning Agreement. Mattersrequired to support a development either necessary for good planning or routinely required in the' -absence of using Bonus Zoning may also be secured a Bonus Zoning Agreement instead of a separate development agreement. 04.06 Cash Contributions_ Cash contributions may be secured in -lieu of an owner/applicant being required to -construct or provide specific facilities and can be accepted towards infrastructure services and facilities that address service needs or deficiencies in the_existing community or services for future growth, either of which cannot be fundedEof are only partly funded by Development Charges or other Planning Act contributions. In a large phased development, cash payments may be phased, subject to the consideration of staff recommendation and Council approval. An "H" — Holding Zone may be used to ensure receipt of negotiated Community Benefits in the form of cash. Cash benefits received from a Bonus Zoning Agreement will be collected by the City Development Department and held in a Public Benefits Reserve Fund set up for that purpose. This fund will be managed by the Finance Department. Policy Title: Bonus Zoning Policy Number: "Click to type Policy Number." Page 11 of 12 17 Cash contributions secured in Bonus Zoning Agreements may be indexed to the Statistics Canada Construction Price Index for Durham Region that would pertain to the type of Community Benefit secured (new housing or non-residential). Cash contributions will be placed in a dedicated Public Benefits Reserve Fund managed by the Director, Finance & Treasurer, and spent only for facilities, services, and other matters specified in the implementing Zoning By-law. A record of proceeds and disbursements will be maintained in conjunction with the Public Benefits Reserve Fund and capital projects' balances. The money in the Public Benefits Reserve Fund may be invested in accordance with the Municipal Act, as amended. Any earnings derived from the investment of the money shall be paid into the special account. The annual auditor's report shall report on the activities and status of the account. 04.07. Reporting,to Council In accordance with the Planning Act, as amended and the Municipal Act, as amended, the Director, Finance & Treasurer, will provide Council with an annual detailed financial statement related to the Public Benefits Reserve Fund. The financial statement is to includestatements and identification of • opening and closing balances; • transactions; • any facilities, services or other matters specified in the by-law for which funds from the s eciat account have been s ent durin the ear; details of the amounts spent; and • the manner in which any capital cost not funded from the special account was or will be funded for each facility, service or other matter specified in the by-law. In accordance with the Planning Act, as amended, the annual auditor's report shall report on the activities and status of the special account established for the Community Benefit money. In accordance with the Planning Act, as amended, a copy of the financial statement shall be available to the Minister of Municipal Affairs and Housing upon request, and shall be made available to the public. Policy Title: Bonus Zoning 1 EPolicy Number: "Click to type Policy Number." Page 12 of 12 cdy DICKERING Report to Executive Committee Report Number: FIN 07-19 Date: May 6, 2019 From: Stan Karwowski Director, Finance & Treasurer Subject: Development Charges Reserve Fund — Statement of the Treasurer for the Year Ended December 31, 2018 Recommendation: That Report FIN 07-19 of the Director, Finance & Treasurer respecting the Development Charges Reserve Fund be received for information. Executive Summary: Section 43 of the Development Charges Act, 1997 (the "Act") requires that the Treasurer provides Council with a financial statement relating to the development charges by-law and reserve fund established for each service as established under Section 33 of the Act. On December 3, 2015, the Province passed Bill 73 which amended the Act to add additional reporting requirements. The Treasurer's Statement (Statement) attached to this report has been expanded to comply with the new reporting requirements. Attachment 1 provides details of the activity of the Development Charges Reserve Fund for the year ended December 31, 2018 in the manner prescribed by section 43(2)(a) of the Act. Attachment 2 provides details on information related to assets funded by the development charges by-law as stipulated by section 43(2) (b) of the amended Act. The amended Act introduced a new section: 43(2.1), which now requires Council to ensure that the Statement is made available to the public. The Statement will be posted on the City's website to facilitate compliance with the amendment. Financial Implications: In 2018, a number of medium density multiple residential developments in the urban area of Pickering, and the non-residential development related to Durham Live have resulted to a large increase in development charges collections. The ongoing development in the Duffin Heights neighbourhood, and the new development in the Seaton lands have also contributed to the increase in development charges collected in 2018. The total 2018 development charges collected was $13 million; an increase of 145 per cent compared to the 2017 collections of $5.3 million. 19 FIN 07-19 May 6, 2019 Subject: Development Charges Reserve Fund — Statement of the Page 2 Treasurer for the Year Ended December 31, 2018 The reserve fund remains at a healthy balance of approximately $58.7 million pending future use of funds for qualified projects. The funds are well managed with investment returns consistently exceeding market indicators. Investment income is added to the balance of each fund as such income is earned. Attachment 1 provides a breakdown of the various DC funding components. Two of the components are in a negative position due to planned budget activity: DC funding for a new operations centre and a new financial system. Negative balances will be addressed through DC fees collected from current growth related activity and through the next DC Study. For the next DC study, credit balances are treated as a cost that will be recovered through higher DC rates. Discussion: Funds are not transferred out of the Development Charges Reserve Fund for projects until the funds are actually needed, as required by applicable accounting rules. This ensures that the reserve fund continues to earn interest income on the unspent monies until such time as actual expenses are incurred. The total reserve fund balance of $58.7 million represented in Attachment 1 represents the unspent monies as at December 31, 2018. Please note that there are approximately $25.7 million of committed capital projects and financial obligation that have been approved in prior years, but have not proceeded or are still ongoing as at December 31, 2018. Taking into account these commitments, the net fund balance available for future expenditures is approximately $33 million. The financial obligation refers the development charges debenture financing undertaken for the construction of the new Operations Centre, at $12.8 million, which includes both the principal and interest payments. This amount represents approximately 49 per cent of the commitments of $25.7 million. In order to meet the new requirement under section 43(2.1) of the amended Act, it is recommended that the Statement be placed on the City's website upon approval by Council. Attachments: 1. 2018 Statement of the Treasurer — Development Charges Reserve Fund 2. Amount Transferred to Assets — Capital & Current Funds Transactions 20 FIN 07-19 May 6, 2019 Subject: Development Charges Reserve Fund — Statement of the Page 3 Treasurer for the Year Ended December 31, 2018 Prepared By: Caryn Kong, CPA, CGA Senior Financial Analyst — Capital & Debt Management Approved/Endorsed By: Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P. Eng. Chief Administrative Officer 23, V* 21 City of Pickering 2018 Statement of the Treasurer - Development Charges Reserve Fund DC Act S 43 (2)(a) See Attachment 2 for details 2. Budget commitments include capital projects previously approved, but have not proceeded or still ongoing. 2018 & Prior Commitments 3' Includes $12.8m in outstanding principal & interest payments related to the 20 -year development charges debenture financing for the new Operations Centre. Total owing from 2019- 2037. The Municipality is compliant with s.s.59.1(1) of the Development Charges Act, whereby charges are not directly or indirectly imposed on development nor has a requirement to construct a service related to development been imposed, except as permitted by the Development Charges Act or another Act. #1.1100:1 Oi�# iN3WHOVLLV Services to which the Development Charges Relates 100% Recovery (Non -Discounted) 10% Statutory Deduction (Discounted) Account 7605 7610 7615 7611 7601 7622 7630 Protective Other Services Storm Water Parkland Dev & Library: Transportation Related to Studies Facilities & Total Description Services Highway Mgmt Trail Materials $ $ $ $ $ $ $ $ Opening 'Balance, January 1, 2018 1,170,502 23,402,920 367,945 0 2,823,415 (197,932) 17,617,415 2,916,320 48,100,585 Plus: Development Charges Collections 1,096,773 4,677,241 532,191 349,335 338,838 4,939,082 1,100,389 13,033,850 Return to Source 85,326 -- - - - - 85,326 Interest Income -Internal Investments 2,112 42,236 664 5,095 - 31,795 5,263 87,166 Interest Income -External Investments 19,372 387,329 6,090 46,729 - 291,576 48,266 799,362 Less Admin Fee (1,295) (25,895) (407) (3,124) - (19,493) (3,227) (53,442) Sub -Total 1,202,289 5,080,911 538,538 398,035 338,838 5,242,960 1,150,692 13,952,262 Less: Amount Transferred to Capital Funds' (147,174) (781,217) (152,380) (66,925) (7,321) (1,055,253) (63,160) (2,273,431) Amount Transferred to Current Funds1 - - (671,904) - (318,097) -- (990,001) Sub -Total (147,174) (781,217) (824,284) (66,925) (325,418) (1,055,253) (63,160) (3,263,432) Closing Balance, December 31, 2018 before Budget Commitments 2,225,617 27,702,614 82,198 3,154,525 (184,512) 21,805,122 4,003,852 58,789,415 Less Budget Commitments 2 (1,087,496) (4,896,597) (13,605,495) 3 (514,723) (2,267,616) (2,854,411) (487,892) (25,714,227) Closing Balance, December 31, 2018 after - Budget Commitments -(Deficit) 1,138,121 22806017 (13 523,297) 2,639 802 (2,452,128) 18,950 711 3,515,960 33 075188 See Attachment 2 for details 2. Budget commitments include capital projects previously approved, but have not proceeded or still ongoing. 2018 & Prior Commitments 3' Includes $12.8m in outstanding principal & interest payments related to the 20 -year development charges debenture financing for the new Operations Centre. Total owing from 2019- 2037. The Municipality is compliant with s.s.59.1(1) of the Development Charges Act, whereby charges are not directly or indirectly imposed on development nor has a requirement to construct a service related to development been imposed, except as permitted by the Development Charges Act or another Act. #1.1100:1 Oi�# iN3WHOVLLV City of Pickering Amount Transferred to Assets - Capital & Current Fund Transactions DC Act, S 43 (2)(b) 1 of 2 # 1N3WHDVJ J f # 121©dn 01 DC Recoverable Cost Share Non - DC Recoverable Cost Share Project Description ' Code Gross Capital . Costs DC RF: Funded in prior year DC RF: Funded in 2018 DC RF: Future Funding 1 Other Type of Funds Reserves/R (R=Reserve, eserve RF=Reserve Property Funds Fund) Taxes Other Sources Type Total Funding Development Related Studies Phase 2 South .Pickering Intensificatioi2611.2392 223,399 17,700 68,788 76,593 60;318 223,399 Integrated Transportation Master Plan 2290.2392 376,892 62,856 108,503 170,640 34,892 376,892 Age Friendly Community Plan 2711.2392 50,849 0 15,318 4,513 31,018 50,849 New Financial System 5203.1801. 5,000,000 0 7,321 1,949,179 1,743,500 R -Rate Stabilization 1,300,000 R -Financial Syst 5,000,000 Infill & Replacement Housing in Estabi 2611.2392 132,970 0 7,677 52,159 73,133 132,970 Development Application Approval Pro 2126.2392 37,858 0 34,072 0 3,786 37,858 Community Engagm on Economic imp 2611.2392 135,080 38,150 14,531 82,399 135,080 Library Strategic/Facilities Plan 2745.2392 67,540 45,590 0 21,950 67,540 Sub -total Studies 6,024,588 80,557 325,419 2,267,616 1,743,500 - 307,497 1,300,000 0 6,024,588 Protective Services 0 New Fire Hall to service Seaton - Site 15340.1601 430,000 76,781 0 342,469 10,750 R -DC City's Share 430,000 New - Pumper Rescue - Seaton Fire RF -3rd Party Station A 5340.1707. 942,201 0 147,174 745,027 50,000 Contribution OPG 942,201 Sub -total Fire Services 1,372,201 76,781 147,174 1,087,496 60,750 - 1,372,201 Transportation R -City's Share & BR -1 Third Concession Road - Brock F 5321.1101. 1,576,525 0 117,844 276,931 374,750 RF-FGT 1,000 806,000 Debt 15 -Yr 1,576,525 BR -11 - Duffins Precinct - Oversizing f 5321.1105. 376,801 0 33,533 305,588 37,680 R -city's Share 376,801 BR -4 Brock Rd. East Side (50/50) Del 5321.1203. 142,000 0 71,000 0 71,000 R -City's Share 142,000 DH -11 Duffin Heights- North Collector 5321.1201. 125,600 29,460 0 83,580 12,560 R -City's Share 125,600 Park Crescent (Sandcastle Court to CI 5321.1303. 1,000,900 390,741 6,017 103,692 500,450 R -city's Share 1,000,900 Finch Ave (Townline to Altona) - Finch 5321.1401. 285,600 48,422 7,350 158,428 71,400 R -City's Share 285,600 BI -15 Squires Beach Road -.Intersectio 5321.1607. 587,942 350,397 90,559 0 146,985 R -City's Share 587,942 RU -13 Salem Road - Road Reconstruc 5321.1608. 1,409,959 9,947 319,639 375,394 0 4,979 700,000 Debt 10 -Yr 1,409,959 B-29 Sandy Beach Road - EA, Design 5321.1609. 675,000 53,892 50,613 232,994 37,500 R-AIP 300,000 Loan 10- Yr 675,000 Kingston Rd. & Brock Rd. Streetlights , 5321.1603. 979,500 162,060 0 312,690 354,750 R -City's Share 150,000 Prov Budget Gra 979,500 Walnut Lane Extension Study & EA an 5321.1703. 461,226 18,867 84,661 242,390 115,308 R -City's Share 461,226 City Dev Projects-DCRF only committE 5321.0000. 2,804,909 0 0 2,804,909 0 2,804,909 Sub -total Transportation 7,621,053 1,063,785 781,217 4,896,597 1,722,384 7,621,053 Stormwater Management B-15 Krosno Creek -Erosion Control -DE 5321.1205. 339,367 55,268 64,965 1,308 217,826 R -City's Share 339,367 B-20 D Krosno Creek SWM Facility Design 5321.1802. 965,400 0 0 463,392 502,008 R -City's Share 965,400 York SEC & Pine Creek Outfall & Channel - Recon: 5410.1501. 1,046,480 44,918 1,960 50,023 392,704 R -City's Share 556,875 Prov IOA Grant 1,046,480 Sub -total Stormwater Management 2,351,247 100,186 66,925 514,723 1,112,538 2,351,247 Other Services Related to a Highway Additional Sidewalk Plow (Seaton) - NE 5311.1807. 152,380 0 152,380 0 152,380 4 Ton Dump Truck with Snow Plow - N 5319.1805 270,000 0 0 270,000 0 270,000 # 1N3WHDVJ J f # 121©dn 01 City of Pickering Amount Transferred to Assets - Capital & Current Fund Transactions DC Act S 43 (2)(b) 2 of 2 I Project ongoing. Future funding for incomplete component. DC RF will be drawn when expenses are incurred. 2 Outstanding principal & interest payments related to the 20 -year development charges debenture financing for the new Operations Centre. Total owing from 2019- 2037. Debt maturing in 2037. 3 The Pickering Heritage & Community Centre is treated as one capital project. In order to show the two DCs-service categories, the components related to the Community Centre and Library are presented separately. DC Recoverable Cost Share Non - DC Recoverable Cost Share Project Description Code Gross Capital Costs DC RF: Funded in prior year DC RF: Funded in 2018 DC RF: Future Funding 1 Other Reserves/R eserve Funds Type of Funds (R=Reserve, RF=Reserve Property Fund) Taxes Other Sources Type Total Funding Additional Street Sweeper (Seaton) - l\ 5319.1809 340,000 - 0 0 340,000 0 340,000 Garbage Packer - New 5780.1813 150,000 135,000 15,000 R -City's Share. 150,000 New Operations Centre -Debt Charges 1920.7600.2 13,532,399 0 671,904 12,860,495 2 0 R -City's Share 13,532,399 Sub -total 14,444,779 0 824,284 13,605,495 15,000 14,444,779 Parks Dev & Indoor Facilities Village Green - Mattamy (Seaton) Dev 5780.1723. 260,000 0 174,821 52,679 32,500.00 RF -Seaton Infrastructure 260,000 D.H. Village Green Park (East) - New - 5780.1708. 190,000 0 0 166,725 23,275.00 190,000 Indoor Soccer Facility and Land - Desi! 5719.1401. 7,296,605 - 3,369,586 0 114,543 78,375 R-DCs City's Sh 101 3,734,000 Debt 15 -Yr 2 7,296,605 Duffin Heights Neighbourhood Park Cc 5780.1808. '600,000 0 18,350 508,150 73,500 R-DCs City's Share 600,000 Rotary Frenchman's Bay West Park PI 5780.1822. 2,091,761 0 839,890 348,360 763,511 R-DCs City's Share 140,000 Other Agency-Sv 2,091,761 Brock Ridge Village Green Constructio 5780.1810. 250,000 0 0 219,375 30,625 R-DCs City's Share 250,000 Seaton (P103) Village Green Construc 5780.1816 210,000 0 0 184,275 25,725 RF -RA 210,000 Seaton (P104) Village Green Construc 5780.1817 285,000 250,087 34,913 RF -FIA 285,000 Seaton (P-102) Neighbourhood Park C 5780.1819 950,000 833,625 116,375 RF -FIA 950,000 Pickering Heritage & Community Ctr (Design) -Community Ctr component 5719.1806. 891,813 0 22,191 176,592 3 693,030 R -Rate Stabilization 0 891,813 Sub -total 13,025,179 3,369,586 1,055,253 2,854,411 1,871,828 140,000 13,025,179 Library Faciliites & Materials Pickering Heritage & Community Ctr (Design) -Archive Facility component 5719.1806. 611,965 0 63,160 487,892 3 60,914 R-DCs City's Share 611,965 Sub -total 611,965 63,160 487,892 60,914 611,965 Grand Total 46,853,466 4,690,895 3,263,432 25,714,227 6,586,914 310,537 4,563,438 46,853,466 I Project ongoing. Future funding for incomplete component. DC RF will be drawn when expenses are incurred. 2 Outstanding principal & interest payments related to the 20 -year development charges debenture financing for the new Operations Centre. Total owing from 2019- 2037. Debt maturing in 2037. 3 The Pickering Heritage & Community Centre is treated as one capital project. In order to show the two DCs-service categories, the components related to the Community Centre and Library are presented separately.