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HomeMy WebLinkAboutFND-009-06 .. ~~ 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: ReVieWedbQ ~~ Franklin Wu, Chief Administrative Officer. NT/hjl 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