HomeMy WebLinkAboutFND-014-07
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REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
JUNE 18,2007 Resolution #:GPA-,%/~07
Date:
Report #: FND-014-07
File #:
By-law #:
Subject:
DEVELOPMENT CHARGES BY-LAW AMENDMENT:
MAJOR OFFICE BUILDINGS IN ENERGY AND SCIENCE PARKS
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-014-07 be received;
2. THAT based on a review of S 10(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 is proposed to
be effective on September 10, 2007;
4. THAT a public meeting be held on September 4, 2007 in accordance with
Section 19 of the Development Charges Act;
Reviewed b0~.:...... ~
Franklin Wu,
Chief Administrative Officer
NT /na
REPORT NO.: FND-014-07
PAGE 2
BACKGROUND:
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.
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.
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.
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 proposed for Sept 4, 2007 and will be
advertised commencing August 13, 2007. The applicable documents will be
available at the Clerk's Department commencing August 7, 2007.
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 by-law currently provides for a 50% refund for industrial buildings that are
LEED certified. Given the intent of the Energy Business Park Plan and the
Science and Technology Park to attract an array of prestige employment, there
are instances where some uses will not fall within the definition of "industrial" as
REPORT NO.: FND-014-07
PAGE 3
currently provided for in the Development Charges By-law. The proposed
amendment to provide a 50% refund for major office buildings that are LEED
certified within the Clarington Energy Park as identified in Schedule 6(a) and the
Clarington Science and Technology Park as identified in Schedule 6(b) to By-law
2005-108 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 O(2)(a) - estimate the amount, type and location of development
to which the development charge [amendment] is to apply;
s.1 O(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 O(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.
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.1 O(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 a 50% refund for major office buildings in lands identified
as the Clarington Energy Park and the Clarington Science and Technology Park,
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 23, Rules Respecting Refunds. The intent of including a
minimum floor area is to encourage larger building that can provide for the scale
of development desired for this area. It is not dissimilar to the exemption provided
for larger hotels.
REPORT NO.: FND-014-07
PAGE 4
4.1 It is proposed that Major Office Building be defined as "a building containing
business, administrative, and/or professional offices and associated ancillary
services containing a minimum of 5,000 square metres of gross floor area."
4.2 Section 23(4) reads as follows: An amount equal to fifty percent of the applicable
development charge paid at the time the building permit was issued for industrial
development in the Municipality which is certified and registered with the Green
Building Council of Canada as meeting the LEED Canada-NC 1.0 Rating System
(or its successor). It is proposed that section 23(4) be amended as follows: after
the "was issued for," insert "major office buildings on lands identified in Schedule
6A and Schedule 6B and".
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 appropriate By-Law be recommended to Council for
enactment after comments received at the September 4, 2007 public meeting.
CORPORATION OF THE MUNICIPALITY OF ClARINGTON
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