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REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
JUNE 19,2006 Resolution #:~3'(J b
Date:
Report #: FND-009-06
File #:
By-law #:
Subject:
DEVELOPMENT CHARGES BY-LAW AMENDMENT
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-009-06 be received;
2. THAT based on a review of S10(2) of the Development Charges Act, there is no
need to alter or amend the Development Charges Background Study, May 2005,
prepared by Hemson Consulting Ltd.;
3. THAT the exemption provided for in the amendment to the By-Law be effective
on July 1,2006; and
4. THAT the attached By-Law amending the Development Charges By-Law 2005-
108 be recommended to Council for enactment;
Submitted by:
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Franklin Wu,
Chief Administrative Officer.
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REPORT NO.: FND-009-06
PAGE 2
BACKGROUND AND COMMENT:
1.0 On June 27,2005, Council adopted the existing development charges with the
approval of Report FND-007-05 and the accompanying By-Law 2005-108. This
By-Law, by statute expires after five years or June 30,2010.
1.1 At the General Purpose and Administration Committee meeting held on April 10,
2006, Council adopted the following resolution #GPA-182-06:
WHEREAS the Council for the Municipality of Clarington considers it beneficial
for residents and businesses in Clarington and for future economic growth, to
promote the establishment of hotel facilities in Clarington;
WHEREAS commercial development charges are currently applicable under the
Development Charges By-Law No. 2005-108, for any hotel development on a per
square metre basis;
WHEREAS any amendments to a development charges by-law must follow the
rules outlined in Bill 98, An Act to promote job creation and increased municipal
accountability while providing for the recovery of development costs related to
new growth (The Development Charges Act), under Section 19;
NOW THEREFORE BE IT RESOLVED THAT Staff be directed to initiate the
process to amend By-Law No. 2005-108 to provide for an exemption in the
Development Charges By-Law for the construction of new hotel facilities which
have a minimum of 85 rooms and are three stories or greater in height, including
an update to the required Background Study and Public Meeting requirements
FORTHWITH.
DEVELOPMENT CHARGE BY-LAW AMENDMENT PROCESS:
2.0 The DCA, 1997, allows a municipality to amend an existing development charges
by-law. Section 19 of the Act sets out the requirements related to this procedure:
19, (1) Sections 10 to 18 apply, with necessary modifications, to an amendment
to a development charges by-law other than an amendment by, or pursuant to
an order of, the Ontario Municipal Board. [emphasis added]
19. (2) In an appeal of an amendment to a development charges by-law, the
Ontario Municipal Board may exercise its powers only in relation to the
amendment.
REPORT NO.: FND-009-06
PAGE 3
2.1 To amend a development charges by-law a municipality must go
through the same public process associated with enacting a development
charges by-law. It needs to complete a background study outlining the purpose
of the amendment and the rationale for the amendment. This document serves
as the background study required under s.1 0 of the Act.
2.2 A municipality also has to hold a public meeting on the amendment, having
provided three weeks notice of the meeting, and has to have made the
background study and proposed by-law amendment available two-weeks prior to
the meeting. The public meeting is June 19, 2006 and was advertised
commencing May 29,2006. The applicable documents were available at the
Clerk's Department commencing June 5, 2006.
2.3 Section 19(2) of the DCA is important because it allows for an amendment to an
existing by-law to be passed without exposing the unaltered portions of the by-
law to appeal. When amending a development charge by-law only the section(s)
of the by-law amended or added is subject to appeal and consideration by the
OMB.
BACKGROUND STUDY REQUIREMENTS:
3.0 The proposed amendment to exempt certain hotel facilities will not result in any
individual developer or land owner in the Municipality paying a higher
development charge after the by-law is amended. The exemption will result in
some lost development charges revenues that the Municipality will need to offset
from other revenue sources if any growth related capital costs are required as a
result of the exemption being provided.
3.1 Section 10(1) of the DCA, 1997, sets out the requirement for a municipality to
complete a development charge background study prior to the passage of a
development charge by-law or amendment. Subsection 10(2) identifies what is to
be included in the development charge background study. These legislative
requirements are summarized as follows:
s.1 0(2)(a) - estimate the amount, type and location of development
to which the development charge [amendment] is to apply;
s.1 0(2)(b) - establish the eligible growth-related costs and services (as
determine under paragraphs 2 to 8 of subsection 5(1) of the DCA, 1997) to
which the development charge by-law [amendment] would relate;
s.1 0(2)(c) - examine, for each service to which the development
charge by-law [amendment] relates, the long term capital and operating costs for
the capital infrastructure required.
REPORT NO.: FND-009-06
PAGE 4
3.2 The amendment proposed is not altering the 'amount, type and location of
development' or growth-related capital costs that form the basis of the charge
determined in the 2005 Background Study so s.10(2)(a),(b) and (c) are not
relevant. The proposed amendment therefore does not require an amendment to
the Development Charges Background Study, May 2005 and this document
serves as the background study required under Section 10 of the Act.
PROPOSED AMENDMENT:
4.0 In order to provide for the exemption for the construction of new hotel facilities,
the Development Charges By-law 2005-108 must be amended in two areas. The
definitions in Section 1 (1) must be expanded and an additional subsection must
be added to Section 20, Rules with Respect to the Exemption of Certain Public
and Other Buildings.
4.1 It is proposed that hotel be defined as a building providing overnight
accommodation with a minimum of 85 overnight accommodation rooms which
include a bedroom and a bathroom combination, which is not a dwelling unit or
dwelling units contained in a single-detached dwelling, a semi-detached dwelling,
a townhouse (row house) dwelling or a multiple dwelling and which have a
common entrance from street level, common halls, stairs, elevators and that is
three stories or greater in height and may contain convention meeting space
facilities.
4.2 Section 20 reads as follows: Buildings within any of the following categories of
areas or uses are hereby exempted from development charges imposed by this
By-Law. It is proposed that a new section 20(11) be added as follows: buildings
constructed after July 1, 2006 for the purpose of a hotel as defined herein.
RECOMMENDATIONS:
5.0 Based on a review of the applicable legislation, it is recommended that an
amendment to the Background Study, May 2005 is not required. It is
recommended that the attached By-Law (Attachment #1 ) be recommended to
Council for enactment.
Attachment #1 - By-Law to amend By-Law 2005-108
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169
ATTACHNENT III
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NO. 2006-
To amend By-Law #2005-108,
a By-Law to impose development charges against land
in the Municipality of Clarington
pursuant to the Development Charges Act, 1997,
to provide for an exemption to development charges fees
for new hotel facilities as defined herein
WHEREAS Section 19 of the Development Charges Act, 1997 sets out the procedure for
amending a development charges By-Law;
AND WHEREAS Council has before it Report FND-009-06 which serves as a
Background Study pursuant to Section 10 of the Act;
AND WHEREAS Council gave notice to the public of a public meeting and held a public
meeting pursuant to Section 12 of the Act on June 19, 2006, prior to which the Study and
a proposed amendment to the development charges by-law were made available to the
public, Council heard comments and representations from all persons who applied to be
heard (the "Public Meeting") and considered Report FND-009-06 (the "Staff Report" and
"Background Study") dated June 19,2006;
AND WHEREAS staff of the Municipality considered the public comments and
representations made at the Public Meeting at the meeting of Council held on June 26,
2006;
AND WHEREAS at its meeting on June 26, 2006, by Resolution No. C- -06 Council
approved the recommendations contained in Report FND-009-06;
NOW THEREFORE THE COUNCIL OF TH E CORPORATION OF THE
MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS:
1. Section 1 (1) of By-Law 2005-108 being a by-law to impose development charges
against land in the Municipality of Clarington pursuant to the Development
Charges Act is amended by adding the following definition to it:
"hotel" , means a building providing overnight accommodation with a minimum
of 85 ovemight accommodation rooms which include a bedroom and a bathroom
combination, which is not a dwelling unit or dwelling units contained in a single-
detached dwelling, a semi-detached dwelling, a townhouse (row house) dwelling
or a multiple dwelling and which have a common entrance from street level,
common halls, stairs, elevators and that is three stories or greater in height and
may contain convention meeting space facilities.
Page Two
2. Section 20 of By-Law 2005-108 is amended by adding to it a new subsection 20
(11) as follows:
"(11) buildings constructed after July 1, 2006 for the purpose of a hotel."
Date By-Law Effective
This By-Law comes into force and is effective on July 1,2006.
THIS BY-LAW READ A FIRST, SECOND, AND THIRD TIME, AND PASSED IN
OPEN COUNCIL THIS 261'1 I DAY OF JUNE, 2006.
John Mutton, Mayor
Anne Greentree, Deputy Clerk