HomeMy WebLinkAboutTR-62-99
CORPORATION OF THE MUNCIPALlTY OF CLARINGTON
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REPORT #2
REPORT
Meeting:
Council
Date:
October 25. 1999
Report #:
TR-62-99
Subject:
Development Charge Steering Committee - Status Report
Recommendations:
It is respectfully recommended to Council the following:
1. THAT Report TR-62-99 be received;
2. THAT Craig Binning, formerly of Hemson Consulting Ltd, be requested to
continue to act as consultant to the Municipality of Clarington, to complete the
extended review of the Development Charges;
3. THAT Council confirm the existing "person per unit" rates used in the
calculations for the Development Charge Background Study - Final Report - July
1999 will not be amended to reflect a rate specific to the Wilmot Ridge Pine Park
development;
4. THAT Wilmot Creek Ridge Pine Park Inc. and Craig Binning, be advised of
Council's decisions.
Background:
1. Development Charges Report Admin.25.99
1.1 The Development Charges were revised in accordance with Bill 98, and
adopted through resolution #C513-99, which approved Addendum to
Report Admin-25-99.
2.0 Hemson Consulting
2.1 This report recommended that further analysis be conducted, with the
assistance of Hemson Consulting Ltd. The Hemson consultant who
developed the Background Study for the Municipality of Clarington was
Mr. Craig Binning. Mr. Binning has now branched out on his own, and it
is recommended that he continue to be the lead consultant to perform the
extended review. Mr. Binning is familiar with every detail of the
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TR-62-99
Page 2
comprehensive report, and Staff suggest that to change consultants at
this stage, is not in the best interest of the Municipality.
2.2 Mr. Binning has discussed the transfer with Hemson Consulting Ltd., who
has agreed that this is acceptable. Hemson has also committed to Mr.
Binning that their firm will be available to sub-contract as required, and to
appear at the anticipated OMB hearing to address the appeal to the By-
law by Ridge Pine Park Inc., Wilmot Creek.
3.0 Extended Financial Review
3.1 The Development Charge Steering-Committee, which is made up of
Department Heads and Senior Managerial Staff, was mandated through
Admin-25-99, to conduct the extended financial review with the
consultant. This analysis was to include verification and/or analysis of the
following:
. The Tax impact resulting from the capital projects and the operating
implications of the 1 a-year capital plan included in the Background
Study.
. The reasonableness of the forecasted population, household,
commercial, business, and industrial growth.
. The letters dated July 15 (Attachment # 1) and August 6, 1999
(Attachment #2) from, Ridge Pine Park Inc., developer of the Wilmot
Creek Adult Community, requesting consideration of the reduction in
the per person value applied to adult lifestyle community units.
4.0 Status of Extended Review
4.1 The Sub-Committee met with the Consultant and reviewed the appeal by
Ridge Pine Park Inc. in order to make a recommendation to Council prior
to an OMB hearing of the issue.
4.2 The Sub-Committee recommends that the person per unit rate not be
adjusted in light of the following:
. Building permits are the basis for collecting development charges, and
they are issued related to building type, therefore it is inappropriate to
set the charge based on occupancy.
. Wilmot Creek is merely a collection of a type of unit that can be found
throughout the Municipality.
. The demand for this type of unit, on a Municipal wide basis has been
taken into account in the demographic projections used in the
Background Study; therefore the calculations reflect the Wilmot Creek
growth in general. The Municipality can not enforce occupancy, only
building types.
. The effect of this request would be to lessen the development charge
applied to these types of units, and effectively spread the uncollected
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TR-62-99
Paae 3
revenue, over the balance of the residential units that are subject to
the charge.
· Application of a reduced charge to a specific area is contrary to the
general averaging principle which is supported by the Development
Charge legislation.
· The Municipality collects development charges on an area wide basis,
not an area specific basis, and application to this development area,
would contravene this principle.
. The change would set precedence and thereby have to be applied to
any similar type development, which would affect the revenue,
estimated in the study.
· There would be a very difficult problem of defining what constitutes
senior's accommodation, and determining who meets the specific
criteria without attempting to regulate occupancy which is not
permitted legally.
. The question is raised of faimess to other seniors outside the specific
area who are required pay the area wide charge.
4.3 The Ridge Pine Park Inc. letter of July 151999 references other
municipalities that have created a separate and distinct charge for
seniors' developments. Hemson Consulting has worked on the
development charges for those municipalities and advises that the
decision behind the introduction of the charge was heavily political in
nature. It also brought with it the serious problem of how to define a
seniors development and in determining who meets the criteria of a
senior, given that legally regulation of occupancy is prohibited.
4.4 The letter also references By-law 97-223, an amendment to the zoning
by-law for Phase 6 of the Wilmot Creek Development. The by-law
provides for a persons per unit rate for various potential dwelling types
including semi-detached, link townhouse and apartment dwelling units
and for retirement homes and nursing homes. Ridge Pine Park states
that the by-law "allocates a maximum number of persons per unit to
various house types.>> The by-law clearly states that the persons per unit
factors are only ''for the purposes of establishing density... ". Given that
there are a variety of potential scenarios in the mixture of various dwelling
units and nursing home beds, the by-law provided a mechanism for
interpreting the limitations identified in the Official Plan of 960 dwelling
units and 1600 persons. There is no intent on regulating occupancy since
the zoning by-law cannot be used for this purpose.
It should also be noted that this zoning only applies to the Phase 6 portion
of the Wilmot Creek site. The previous phases did not include a variety of
house types.
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TR-62-99
Page 4
Conclusion
This report has been reviewed by Mr. D. Hefferon, Solicitor, who concurs with the
recommendations.
Staff will report back to Council early in 2000 with the conclusions related to the balance
of the outstanding items affecting the development charges.
submitted,
Reviewed by.
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Marie Marano H.BSc..AMCT
T reasu rer
Franklin Wu. M.C.I.P..R.P.P.
Chief Administrative Officer
Attachments:
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The Mule lLlkeside CiJmmunity.
ATTACHMENT /11
15 July 1999
Madame Mayor & Members of Council
THE MUNICIPALITY OF CLARINGTON
40 Temperance Street
Bowmanville, Ontario
LlA 3A6
Re: Development Charges
Dear Madame Mayor & Members of Council:
We are the owners and developers of Wilmot Creek, a retirement lifestyle community located in
Clarington on the shores of Lake Ontario. We have been building and selling homes at Wilmot Creek for
15 years and are aware that the Municipality of Clarington is preparing a new Development Charges By-
law,
We take this opportunity to comment on the proposed development charges by-law as it applies to our
style of community. We recommend that a separate category of development charge be created for non-
institutional independent sen iors accommodation.
There needs to be a separate category of development charges that would apply to homes for seniors or
retirees in communities like Wilmot Creek.
The Municipality ofClarington has passed By-law 97-223 which affects some of the lands making up
Wilmot Creek. This By-law amends By-law 96-168 and allocates a maximum number of persons per
unit to various house types, (The persons per unit arrived at in the by-law were arrived at in part by
examining the actual experience at Wilmot Creek,)
The following table compares the persons per unit per house type in the Hemson study to those stated in
By-law 97-223.
Type of Dwelling By-law Hemson
Persons Per Unit Persons Per Unit
Mobile Home/Single Detached 1.7 3.35
Dwelling
( Semi-Detached & Link 1.7 2.9
Townhouses
Apartment: :! Bdrrnl! Bdrrn 1.4 2.0
1 Wheelhouse Drive, Unir #1 Newcastle, Ontario Ll B lB9
Torc'nto Direct (416) 369.0000 Sales (905) 697-5806 Administration (905) 697-5805
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ATTACHMENT III
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Table 9 of the Develooment Charees Backeround Studv of May 1999 produced by Hemson Consulting
LId calculates the unit type development charge on the number of persons in the housing unit. This
zoning by-law clearly states the number of persons per unit for each type of dwelling and is considerably
less than that for a typical subdivision.
The average number of persons per unit at Wilmot Creek is approximately half the number that are in a
typical subdivision. Furthermore, parks, community centres, pools, libraries and other recreation
facilities, as well as other services, are provided privately within Wilmot Creek.
The development charge applicable to homes catering to retirees or seniors in our style of planned
community should be calculated on a pro-rata basis, based on the number of persons per dwelling unit.
For example, as per the table above, the charge would be 51% of the single, detached levy. Such a series
of separate charges are justified for a lifestyle community like Wilmot Creek.
In the future, should Wilmot Creek expand beyond the 860 homes already approved, or if we or others
develop a similar community elsewhere in the Municipality of Clarington, such separate reduced
development charges would be very important.
Other municipalities have created a separate class of development charge for communities like Wilmot
Creek. The Municipality of Clarington has the advantage of experience and knowledge gleaned first
hand by having a community like Wilmot Creek within its boundaries. As a leader and example for
other municipalities, the Municipality of Clarington should address the issue raised here and create this
separate category of development charges.
We request to meet with you or staff with respect to this matter and to be advised of all meetings
pertaining to this Development Charge By-law. We also request that you provide us with written advice
of the passing of this Development Charges By-law.
Yours truly,
RIDGE PINE PARK INC
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David W. Rice
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copy: Patti Barrie, Town Clerk - Municipality ofClarington
Robert G. Doumani, Aird & Berlis
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AUG 1 1 1999
The Adult lA:keside Comnllmity.
ATTACHMENT 112
6 August 1999
MUNiCiPAlITY OF CL,c :;i~;GTor.
FINANCE
Ms. Marie Morano, Treasurer
THE MUNICIPALITY OF CLARINGTON
40 Temperance Street
Bowmanville, Ontario LlA 3A6
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Re: Development Charges - Wilmot Creek
Dear Ms. Morano:
Further to our letter of July 15, 1999 to the Mayor and Council and our telephone convers i
with you on July 28, 1999, we would like to address the process to be followed by the
Municipality now that its development charge by-law has been passed.
Our present agreement with you establishes a charge for the first 860 homes at Wilmot Creek.
Our letter addressed the idea of creating a separate category of charges for Wilmot Creek units
) beyond those initial 860: a charge based on the actual average number of persons per unit type.
We understand from our conversation that the Municipality wished to pass its by-law and then
establish a process to address a number of issues which had arisen in the processing of the by-
law including future development at Wilmot Creek rather than deal with such issues before the
by-law was passed.
As we are presently in the appeal period of the by-law, we would appreciate being advised, as
soon as possible, as to the process and timetable for addressing this and other outstanding issues
related to the by-law.
We look forward to hearing from you and can be reached at 905-796-3630.
Yours truly,
RIDGE PINE PARK INC.
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David W. Rice
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1 Wheelhouse Drive, Unit#l Newcastle, Ontario LIB 1B9
Toronto Direct (416) 369.0000 Sales (905) 697-5806 Admmistration (905) 697-5805