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HomeMy WebLinkAbout96-149 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 96-149 being a by-law to authorize the entering into of an agreement to amend the Subdivision Agreement between West Bowmanville Developments Limited, Martin Road Holdings Ltd. , certain mortgagees, and the Corporation of the former Town of Newcastle for the development of Plan of Subdivision 18T-88046, as authorized by By-law 91-100 WHEREAS at its meeting of April 24, 1995, the Council of the Municipality of Clarington approved the recommendations contained in Report ADMIN-14-96 which recommended a recommendation to enter into an agreement to amend the subdivision agreement between the Municipality, West Bowmanville Developments Limited and Martin Road Holdings Ltd. , the owners of Plan of Subdivision 18T-88046, and passed By-law 95-61 accordingly; AND WHEREAS at its meeting of July 29, 1996, the Council of the Municipality of Clarington approved the recommendations contained in Addendum to Report ADMIN-14-96 including the making of further amendments to the aforesaid Subdivision Agreement . NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1 . THAT the Mayor and Clerk are hereby authorized to execute on behalf of the Corporation of the Municipality of Clarington, and seal with the Corporate Seal, an agreement to amend the Subdivision Agreement between the former Town of Newcastle, Martin Road Holdings Ltd. , and West Bowmanville Developments Ltd. (as owner) , and Robert Louis Stevens and the Royal Bank of Canada (as mortgagee) made as of September 5, 1991, to implement the recommendations contained in Report ADMIN-14-95 as amended by the recommendations contained in Addendum to Report ADMIN-14 . 95 . 2 . THAT the agreement attached hereto as Schedule "A" forms part of this by-law. By-law read a first and second time this 12th day of August 1996 By-law read a third time and finally passed this 12th day of August 1996 MAYOR D E P L E R K DYE 6 DURHAM CO.INC.-Form N0.985 Amended NOV.1992 � y Document General' Ontario Form 4-Land Registration Reform Act D r (1) Registry ❑ Land Titles n (2) Page 1 of as pages CD C"D (3)Property Block Property N LLJ LO Identifler(s) AditionaC Ll7 Schedule ❑ (4)Nature of Document tom- CL_ NOTICE OF AGREEMENT AMENDING SUBDIVISION AGREEMENT (Section 71 of the Act) } t'- °D (5)Consideration i.- `_ J r ° � Not Applicable Dollars$ 141 ---I P` o W (6)Description W C> LL As described in Schedule "AA' attached. ° Land Titles Division of Durham (No. 40) New Property Identifiers Additional: See ❑ Schedule xecutions (7)This (a) Redescription (b)Schedule for: Additional: Document New Easement 1 Additional See hedule ❑ Contains: Plan/Sketch ❑ 1 Description F1 Parties Other ❑ (8)This Document provides as follows: The Corporation of the Municipality of Clarington has an unregistered right, interest or equity in the lan registered in the name of MARTIN ROAD HOLDINGS LIMITED and WEST BOWMANVI DEVELOPMENTS LTD. as Parcel 15-6, Section Con. 1 (Darlington), Parcel 15-7, Section Con. (Darlingto , Parcels 12-1, 45-1 and 109-1, Sectioln 4OM-1686, Parcels 12-1, 13-1, 14-1 and 28-1± ction Plan 40M-1796, Parcel 32-1, 33-1, 34-1, 35-1, 36-1, 37-1, 39-1, 40-1, 42-1, 43-1, 45-1, 46-1, 47-1, 48-1 49-1, 50-1, 51-1, 52-1, 53-1, 54-1, 55-1, 56-1, 57-1, 58-1, 59-1, 60-1, 61-1, 62-1, 63-1, 64-1, 65-1, 66-1, 67-1 68-1, 69-1, 70-1, 71-1, 72-1, 73-1, 74-1, 75-1, 76-1, 77-1, 79-1, 80-1, 81-1, 82-1, 83-1, 84-1, 85-1, 86-1, 87-1 O, 91-1, 92-1, 93-1 and 101-1 Section Plan 40M-1816 and hereby apply under Section 7j of the Lan Titles Act for the entry of a Notice of Agreement Amending Subdivision Agreement for the said Parcels Continued on Schedule ❑ (9)This Document relates to Instrument number(s) LT566837 (10) Party(les) (Set out Status or Interest) Name(s) Signature(s) Date of Signature Y M D THE CORPORATION OF THE 7 _ 1996 0912 . . . . :1VIUNICIPAL�'t'$•b�` CLAkYNGTd1V' . . . . . . . $y: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .;. . . 1 . . . . . hy.its solicitor. . . . . . . . . . . . . . . . . . . . . . . . . . Nicholas 3, N.ino�. . . . . . . . . . . . . . . . . . . . . 1 . . 1 •1• 1 1 . • . • • • • • • . • • . • • • • . . . . . . . . • • • • • • • • • • . • 1 • •;• 1 I for Sice 40 Temperance Street, Bowmanville, Ontario, L1C 3A6 (12)Party(les) (Set out Status or Interest) Name(s) Signature(s) Dlate of Signature . . . . . . . . • . • . . . . . . . . . . • . . . . . . . . . . . . . . . . • . • . . . . . . . . . . . . . . . . . . . • M . . • . 1 . . •1. . . l I 1 • � • 1 i 1 1 . . . . • . . . . . . • . . . . . . . • . . . . . . . • . . . . . . • . . . . . . . . . . • . • . . • . . . • . . . • . • . . . . . . . . . . . . . . . • • . • 1 . • •1• . . 1 Ili 1 1 (13)Address for Service (14) Municipal Address of Property (15) Document Prepared by: } Fees and Tax J 0 Registration Fee Nicholas T. Macos 130 Adelaide Street West D Not Assigned Suite 2600, Toronto, Ontario a M511 3P5 LL 0 c 0 Total I s THIS SECOND SUBDIVISION AMENDING AGREEMENT made as of this 12th day of August, 1996. BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (hereinafter called the "Municipality") OF THE FIRST PART - and - MARTIN ROAD HOLDINGS LIMITED and WEST BOWMANVII.LE DEVELOPMENTS LTD. (hereinafter called the "Owner") OF THE SECOND PART - and - ROYAL BANK OF CANADA (hereinafter called the "Mortgagee") OF THE THIRD PART WHEREAS: A. The Owner owns in fee simple certain lands and premises in the Municipality of Clarington which are more particularly described in Schedule "AA" hereto (the "Lands"). B. The Owner, the Municipality and the Mortgagee made an agreement (the "Subdivision Agreement") as of September 5, 1991 applicable to the lands and premises described therein (the "Original Lands") as a condition of approval of draft Plan of Subdivision 18T-86046-Aspen Heights under Section 51 of the Planning Act, R.S.O. 1990, c.P.13. Notice of the Subdivision Agreement was registered in the Land Registry Office for the Land Titles Division of Durham (No. 40) (the "Land Registry Office") as Instrument No. LT566837. C. Paragraph 5.29(1)of the Subdivision Agreement requires the Owner to commence construction of the "CPR Underpass Work") (as therein defined) no later than the day on which an application is made for a building permit for a building which is or includes the 661st dwelling unit proposed to be constructed on the Original Lands and to complete the same in accordance with the Subdivision Agreement. + s Y Second Subdivision Amending Agreement Page A D. Paragraph 5.29(6) of the Subdivision Agreement requires the Owner to deposit cash or an irrevocable and unconditional letter of credit issued by a bank listed in Schedule I or II of the Bank Act, R.S.C. 1985, c.B.l as a "Security Deposit" (as defined therein) for performance by the Owner of its covenant to construct and maintain the CPR Underpass Work in accordance with the Subdivision Agreement. Escalations in the amount of the Security Deposit also were provided for. E. The total amount of the irrevocable and unconditional Letters of Credit issued by Royal Bank of Canada for its customer Martin Road Holdings Limited under No. P12611TO6206, P27470T06206, P67946T06206 currently on deposit with the Municipality as a Security Deposit for the CPR Underpass Work is $1,350,000.00 (the "Underpass Letter of Credit"). F. At its meeting on April 24, 1995, the Municipality's Council approved the recommendations contained in Report #Admin 14-95 a copy of which is contained in Schedule "BB" hereto. G. Paragraph 8.5 of Report #Admin 14-95 recommended that subject to the satisfaction of certain conditions Council approve an amendment to the Subdivision Agreement to delete the requirement that the Owner construct the CPR Underpass Works. H. By its adoption of Addendum Report#Admin 14-95 at its Special Meeting on July 29, 1996, a copy of which Addendum is also contained in Schedule "BB" hereto, Council clarified the purpose in respect of which the monies referred to in Recital I may be disbursed or appropriated by the Municipality. I. In satisfaction of one of the conditions referred to in Report #Admin 14-95 as amended by the Addendum to Report #Admin 14-95, the Owner has agreed to make a contribution to the Municipality in the amount of one million, five hundred thousand ($1,500,000.00)dollars plus interest on three hundred thousand($300,000.00)dollars from April 249 1996 to the date of payment. The monies paid to the Municipality are to be used for the purpose recommended in Report#Admin 14-95 as amended by the Addendum to Report#Admin 14-95 and are to be paid in instalments as set out below in this Agreement. The Owner also is to deposit security with the Municipality for the performance of the Owner's covenant in this regard. The Municipality has agreed that as soon as is reasonably practicable after the deposit of such security the Municipality's Treasurer will return to the Owner the Underpass Letter of Credit not drawn upon by the Municipality. y Y_ Second Subdivision Amending Agreement Page J. This Second Subdivision Amending Agreement is made pursuant to subsection 51(26) of the Planning Act, R.S.O. 1990, c.P.13, as amended. It is authorized by By-law No. 96-149 passed on August 12, 1996. NOW THEREFORE WITNESSETH THAT in consideration of the premises and the covenants hereinafter expressed, and the sum of two dollars ($2.00)of lawful money of Canada, now paid by each party to the others (the receipt whereof by each party is hereby acknowledged), the Parties hereto covenant and agree to and with each other as follows: 1.1 Deletion and Renumbering of Certain Special Conditions The Subdivision Agreement is amended by deleting paragraph 4.12(12)and 4.12(14)and renumbering paragraphs 4.12(13) to 4.12(12. 2.1 Deletion of CPR Underpass Work The Subdivision Agreement is amended by deleting paragraph 5.29 thereof and replacing it with a new paragraph 5.29 as follows: "5.29 Alternative Payment to Municipality (1) The Owner hereby covenants to pay to the Municipality the sum of one million, five hundred thousand ($1,500,000.00) dollars (the "Alternative Payment")in five(5)instalments of three hundred thousand ($300,000.00) dollars each. The Owner shall pay the first and second instalments to the Municipality on April 24, 1997 together with interest on the first instalment of three hundred thousand ($300,000.00) dollars calculated at the rate of 6% per annum from and including April 24, 1996 to the date of payment. Additional instalment payments of three hundred thousand ($300,000.00) dollars each shall be made on each of the three (3) successive anniversaries of April 24, 1997. Each instalment and the aforesaid interest payment shall be deposited by the Municipality when received in its Hydro Reserve Fund Account. The Owner acknowledges that the Municipality may disburse part of the first instalment to reimburse the Municipality for its contribution to the cost of the "Highway No. 2 Urbanization Works" (as hereinafter defined). The monies deposited in the Municipality Hydro Reserve Fund Account may be expended by the Municipality for any purpose permitted by law including but not limited 1 � y x Second Subdivision Amending Agreement Page e to the purpose referred to in Report #Admin 14-95 as amended by the Addendum to Report #Admin 14-95. (2) Alternative Security Deposit On the execution of this Second Subdivision Amending Agreement, the Owner shall deposit with the Municipality cash or an irrevocable and unconditional Letter of Credit issued by a bank listed in Schedule I or H of the Bank Act, R.S.C. 1985 c.B.l, as amended, acceptable to the Municipality's Treasurer and containing terms satisfactory to the Municipality's Treasurer in the amount of one million, five hundred and eighteen thousand and fifty ($1,518,050.00) dollars (the "Alternative Security Deposit") as security for performance by the Owner of its covenant to make the payments required by paragraph 5.29(1). In the event that the whole or any portion of the Alternative Security Deposit is appropriated or is presented for payment by the Municipality to the issuing bank, all payments required to be made under paragraph 5.29(1) shall be deemed to be accelerated due and payable to the Municipality on the day immediately preceding the date of appropriation or presentation as aforesaid. The Municipality's Treasurer may draw upon the Alternative Security Deposit to remedy the Owner's default or to discharge the Owner's obligation, and shall pay the proceeds thereof into the Municipality's Hydro Reserve Fund Account for use by the Municipality as set out in paragraph 5.29(1). (3) Reduction of Security Deposit As soon as is reasonably practicable after the Owner makes an instalment payment in accordance with paragraph 5.29(2) and a written request therefor is made by the Owner to the Municipality's Treasurer, the Treasurer shall execute an appropriate document addressed to the bank which has issued the Alternative Security Deposit if it is in the form of a letter of credit to authorize the reduction of the amount of the Letter of Credit by an amount equal to the amount of the payment(s) which have been made to the Municipality by the Owner pursuant to paragraph 5.29(2) hereof. (4) Return of Underpass Letter of Credit As soon as is reasonably practicable after the deposit of the Alternative Security Deposit with the Municipality as is required by paragraph 5.29(2) y r i Second Subdivision Amending Agreement Paged the Municipality's Treasurer will return the Underpass Letter of Credit to the Owner not drawn upon by the Municipality. (5) For the purpose of this Second Subdivision Amending Agreement: (a) the term "Highway No. 2 Urbanization Works" means the improvements, equipment and landscaping which are to be constructed or installed to urbanize the "Highway No. 2 Urbanization Zone" which are set out in the "Highway No. 2 Final Streetscape Report" prepared by Totten Sims Hubicki as finally approved by and on file with the Director; (b) the "Highway No. 2 Urbanization Zone" refers to the lands identified as such on the map contained in Schedule "CC" hereto. 3.1 Deletion and Renumbering of Special Conditions on Schedule "N-Lands Unsuitable for Building" The Subdivision Agreement is amended by deleting the first item of the text of Schedule "N" of the Subdivision Agreement "1) Lots 60 to 79 See paragraph 4.12(13)" and replacing it with "1) Lots 60 to 79 See paragraph 4.12(12)", by deleting the second item thereof "2) Block 342 to 347 See paragraph 4.12(12)", and by renumbering the other items in Schedule "N" accordingly. 4.1 Deletion and Renumbering of Special Conditions on Schedule "P - CPR JLn_&Mass Work" The Subdivision Agreement is amended by deleting the heading and text under the heading of ("CPR Underpass Work") in its entirety and by renumbering the remaining paragraphs accordingly. 4.2 PostpQnement of Mortgage The Mortgagee hereby postpones its rights under the Charges registered in the Land Registry Office for the Land Titles Division of Durham (No. 40) as Instrument No. 34186 and Instrument No. 34187 to the rights of the Municipality under this Second Subdivision Amending Agreement. Second Subdivision Amending Agreement Page 4.3 Time of Essence Time is of the essence of this Agreement. 4.4 Authority.to Make This Agreement The Owner and the Mortgagee acknowledge and agree that the Municipality has authority to enter into this Second Subdivision Amending Agreement, that every provision hereof is authorized by the law and is duly enforceable by the Parties. This Second Amending Subdivision Amending Agreement is made by the Municipality in reliance on the acknowledgement and agreement of the Owner and the Mortgagee as aforesaid. 4.5 Binding Effect This Second Subdivision Amending Agreement and the Subdivision Agreement shall enure to the benefit of and be binding on the Parties hereto and their respective successors and assigns. The Owner and the Mortgagee consent to the registration of a Notice of this Second Subdivision Amending Agreement on the title to the Lands. IN WITNESS WHEREOF the Parties hereto have hereunto affixed their corporate seals attested by their respective proper signing officers in that behalf duly authorized. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Per: Name: Diane Hamre, Mayor Title: Per: ame: L Barrie, Clark Second Subdivision Amending Agreement Page MARTIN ROAD HOLDINGS LIMITED Per: ^" ame: w%-tk%A A6 A 5. DA'"4e Title: Pr-,s A-f awFkws Per: Name: Title: WEST BOWMANVILLE DEVELOPMENTS LTD. Per: ame: W,lt(«AA T- hz W-44- Title: � bMOt. carPa�a�o... Per: Name: Title: ROYAL BANK A Per: a Name: K.GUY WHI IELD Title: 9eni(x Account anger Per: Name: UHIE A W)MELL Wt-Haw. Title: ee"AOWJw m"GER A Z:°'' ba"k.-- o Q 1 SCHEDULE HAW DESCRIPTION OF LANDS LEGAL DESCRIPTION OF THE LANDS Firstly: The remainder Parcel 15-6, Section Con.1 (Darlington) Concession 1, being Part of Lot 15 in the Municipality of Clarington, in the Regional Municipality of Durham. Secondly. The remainder of Parcel 15-7, Section Con.1 (Darlington) being Part of Lot 15 in the Municipality of Clarington, in the Regional Municipality of Durham. Thirdly 215-1, SEC-nor+ 4rl 1 7-Tg6 6Gnc�par 6 0�` �j�ot�k o2 S, =oti The remainder of Parcel J being Par , tit i2 Geographic Township of Darlington in the Municipality of Clarington, in the Regional Municipality �-PLA N of Durham. 4oR 1656 Fourthly: All of Parcels 12-1, 45-1 and 109-1, Section 40M-1686, being Lots 12 and 45 on Plan 40M-1686, and Block 109 on Plan 40M-1686, in the Municipality of Clarington, in the Regional Municipality of Durham. Fifthly: All of Parcels 12-1, 13-1;14-1 , Section 40M-1796, being all of Lots 12, 13 and 14.Md Also Part of Parcel 29-1, Section Plan 40M-1796, being Part of Block 29, designated as Parts 11, 12,241,.25, 13 and 14 on Plan 40R-16695, in the Municipality of Clarington, in the Regional Municipality of Durham. Sixthly: All of Parcels , 32-1, 33-1, 34-1, 35-1, 36-1, 37-1, 39-1, 40-1, 42-1, 43-1, 45-1, 46-1, 47-1, 48-1, 49-1, 50-1, 51-1, 52-1, 53-1, 54-1, 55-1, 56-1, 57-1, 58-1, 59-1, 60-1, 61-1, 62-1, 63-1, 64-1, 65-1, 66-1, 67-1, 68-1, 69-1, 70-1, 71-1, 72-1, 73-1, 74-1, 75-1, 76-1, 77-1, 79-1, 80-1, 81-1, 82-1, 83-1, 84-1, 85-1, 86-1, 87-1, 91-1, 92-1, 93-1 and 101-1 Section Plan 40M-1816, being all of Lot 32, 33, 34, 35, 36, 37, 39, 40, 42, 43, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77; 79, 80 and 81 and Blocks 82, 83, 84, 85, 86, 87, 4110, 91, 92, 93 and 101 on Plan 40M-1816, in the Municipality of Clarington, Regional Municipality of Durham. SCHEDULE "BB" (Insert copy of Report #Admin 1495 and Addendum to Report #Admire 1495) (See Attached) THE CORPORATtOR OF THE MUNICIPALITY OF CLARINGTON ' {�1Q��X7�X7(6ldit7t�X � REPORT Meetino: CMWIL FRO# Dito: APRIL 24 1995 Res.# Rpp4lt ADM.14-95 t:tIa DY-Law Subject: OLDER ADULT CENTRE AND HIGHWAY NO. 2 URBANIZATION WORK Recommendations: It is respectfully recommended that Council approve the following.-,,. (1) THAT Report No. ADIBN-14-95 be received; and (2). THAT Council approve amendments to the Aspen Springs Subdivision Agreement to delete the requiretgent that the Owner construct t m"Cl;R.Underpass Work and the requirement that the Owner d�posit letters of C`t'edit with the ?�iun�cipality as security for the construction of the Work,or!the conditions as outlined in this report;. and (3) THAT Council accept a financial contribution from Martin Road Holdings Limited and .West Bowmanville Developments Ltd: in the 'amount of $1.5 million on the terms and conditions set out in this report; and (4) THAT Council approve the construction of the Older Adult•Ce' ntre, at a cost of$1.3 million,` in conjunction with the proposed Durham Region Non-Profit Housing Authority project to be built on Temperance Street in BowmanAlle; and (5) THAT Council-comnut $200,000 of said contribution of$13 million to the cost of- the urbanization work on Highway No. 2; and. (6) THAT Council approve the provision of interim funding of$1.3 million for the Older Adult Centro and $200,000 for urbanization work on Highway No. 2 referred to in recommendations (4) and (5) from the Hydro Reserve Fund Account; and (7) THAT when instalments are paid to the Municipality in respect of the financial contribution of S1.5 million referred to in recommendation(2) they be deposited in the Hydro Reserve Fund Account; and REPORT NO. ADMIN-1495 PAGE 2 ,t- (8) THAT Council approve the commitment of the amount of$100,000 which is to be paid by Markborough Properties Inc. and West Bowmanville Developments Ltd. in respect of the extension of water service to the Garnet B. Rickard Recreation Complex when it is paid pursuant to this report, to the cost of urbanization of Highway No. 2; and (9) THAT Council approve the agreements and amending agreements recommended in this report and pass the necessary by-laws to authorize the same being executed by the Mayor and.Clerk on behalf of the Municipality; and (10) THAT the Treasurer be authorized to accept the deposit of the Letters of Credit and return the Letters of Credit referred to in the report on the conditions set out in this report; and (11) THAT a copy of this report be sent to: Markborough Properties Inc. Martin Road Holdings Limited and West Bowmanville Developments Ltd. 829462 Ontario Inc. and 838038 Ontario Inc. Willsonia industries Limited and Clarington Place Limited Durham Region Non-Profit Housing Authority Older Adult Centre Committee 1. INTRODUCTION 1.1 During the past year the Office of the Chief Administrative Officer has beeninvolved in a number of protracted negotiations involving property acquisitions, commercial developments,recreational facilities,etc., throughout the Municipality. Two of these negotiations that have taken a considerable amount of Staff time are the proposed Older Adult Centre that is being considered in conjunction with the Durham Region Housing Authority on Temperance Street in Bowmanville, and the Urbanization of Highway No. 2 in the area between Regional Road No. 57 and Green Road in Bowmanville. The Highway No. 2 project must be addressed before development can proceed on both the north and south side of Highway No. 2, which was the subject of a recent Ontario Municipal Board hearing. In both cases, Council has directed the Chief Administrative Officer to continue to meet with all the parties involved, in an attempt to identify the necessary funding that would allow these projects to go forward We now submit the following report that addresses the issue of funding for both projects. ' REOORT NO. ADUM-14-95 PAGE 3 ,4� A 2. OLDER ADULT CENTRE 2.1 The proposed Older Adult Centre has been the subject of numerous reports to Council, covering the rezoning of the site in question, as well as the construction of the 10,000 square foot facility that would form a part of the Durham Region Housing Authority's sixty unit "singles" building proposed for the old "piano factory" site, across from the public library on Temperance Street in Bowmanville. 2.2 As Council knows, the Housing Authority has had approval in principle from the Ministry to construct this project on the proviso that the Municipality of Clarington participates in the project by financing the Older Adult Centre. The Centre would have a gross floor area of 11,600 sq. feet, and a net floor area of 10,000 sq. feet, and will include leasehold improvements, carpet,and air conditioning. The furniture and appliances will be provided by the Clarington Older Adult Centre Committee, who will be responsible for the operation otthe Centre. There would be 22 surface parking spaces. By financing the recreation Centre,the Municipality would then hold ownership of approximately 19t.of-the overall complex. This would compare to the square footage of approx. 16 additional living units. 23 At a meeting held on November 28, 1994, Council passed-4 resolution directing the Chief Administrative Office to go on record with the Durham Region Housing Authority that the Municipality of Clarington approves, in principle, of the preliminary architectural drawings showing the.proposed 10,000.square.foot"seniors' centre", and,as well "That the Municipality of Clarington agrees to cover the cost of the 10,000 square foot "seniors' centre" on the proviso that an acceptable financial contribution by the Municipality, either by way of capital investment or long term lease, is agreed upon between the Housing Authority and the Municipality". 2.4 Following those directions, Staff have had numerous meetings with the representatives of the Housing Authority and have identified the Municipality's portion of the capital cost to be $1,300,000. Should Council agree to proceed with this project, the Durham Regional Housing Authority would need a commitment from the Municipality of Clarington that the amount of$1,300,000 would be available for constriction purposes. This then would allow the Authority to make a final submission to the Ministry for approval of the project. As previously stated by the Housing Authority, should Clarington decide not to participate in this project, the Ministry will not.approve the housing portion of the facility and the project will not proceed. Upon Council's approval of the funding proposal identified later in this report, the Durham Region Housing Authority will immediately proceed with the necessary approvals and would expect to see the project commence construction within the next few months. 4 REPORT NO. ADMIN-14-95 PAGE 4 J4 2.5 On reviewing the financing proposals that are addressed in this report, it should be kept in mind that there is still a possibility of obtaining some type of Provini W grant for the recreation portion of the project, even though we have not been successful to date in receiving a positive answer in this regard from . our Regional Representative-of the Ministry of Tourism, Culture and Recreation. 'It should also be kept in mind that should the project proceed, the Housing Authority would be paying approximately $150,000 to the Municipality under the Development Charges By-law. This amount, could not be addressed as a portion of the Municipality's funding, as it must be directed to the Development Charges Reserve Fund. However, it.should be considered a "plus" in the overall financial assessment of the project. 3. URBANIZATION OF HIGHWAY NO.2,BOWMANVILLE MAIN CENTRAL AREA 3.1 The transition of Highway No.2 from a high speed rural cross-section to a low speed urban roadway between Green Road and Martin Road is considered essential to the long term development of the Bowmanville West Main Central Area (B.W,M.C.A.). 3.2 In order to ensure that the Municipality of Clarington's interests in this regard are properly addressed, the Clarington Public.Works Department prepared a functional design for the urbanization of the aforementioned section of roadway. 3.3 The functional design provided a framework for the review of proposed developments adjacent to Highway No. 2 and the opportunity to generate a phased approach for the implementation of the required work. 3A Two developments, Markborough and Willsonia have been'reviewed in this context and works on Highway No. 2 have been identified. 3.5 A section of Highway No. 2 adjacent to the proposed Markborough and Willsonia developments is super-elevated and has no Iongitudinal fall. These two conditions make urbanization of the roadway at its current grade impossible. 3.6 The lack of longitudinal grade would result in ponding along proposed curb lines and the super-elevation 4S% is not suitable geometry for intersecting urban streets. In order to address these issues, a number of alternative solutions were reviewed. The only solution which satisfactorily addressed the long term interests of the Municipality and permits the development of the Markborough and Willsonia lands requires the construction of approximately 565 metres of Highway No. 2 (See Attachment No. 1). The proposed reconstruction involves the lowering of Highway No. 2 in the vicinity of Street'B'. A low point would be established at the proposed intersection of Highway No. 2 with Street 'B' resulting in a minimum longitudinal grade of 0.5% and removal of the super-elevation. REPORT NO. ADMIN-14-95 PAGE 5 4. PROPOSED FINANCING OF HIGHWAY NO. 2 IMPROVEMENTS 4.1 The cost of the required road work was estimated at $1,090,000.00 in 1994 dollars. This value does not include the cost of providing street lighting and sidewalk, as these services were included in the Municipality's Development Charges By-law. The amount of the estimated costs thereof of the latter services which would be the Municipality's responsibility is $290,000. In addition, traffic signals and storm sewer oversizing would be the responsibility of the developers. The estimated cost of traffic signals to be located at Kings Highway and Street "E" is $100,000. 4.2 Financial negotiations have been ongoing regarding this project. Initially, the adjacent developers were advised that the total cost of the portion of the project necessitated by their developments was to be their responsibility and would be in addition to the costs of works referred to in the servicing agreements they had made with the Municipality. 4.3 The Municipality had entered into the following servicing agreements with the adjacent developers (1) respecting the Markborough Shopping Centre on May 24, 1994 with 829426 Ontario Inc. and 838038 Ontario Inc. and Royal Bank of Canada (the "Markborough Servicing Agreement"), and (2) respecting the Willsonia development also on May 24, 1994 with Willsonia Industries Limited and Clarington Place Limited (the "Willsonia Servicing Agreement"). We understand that the shareholders of the numbered companies who are parties to the Markborough Servicing Agreement are Markborough Properties Inc. and West Bowmanville Developments I.td. 4.4 Both developers have indicated that they are prepared to move ahead with the necessary approval process. However,considering the protracted hearings regarding the Bowmanville West Main Central Area at the Ontario Municipal Board, the additional cost of the urbanization resulted in both developments reaching a point of questionable financial viability. Both developers clearly stated that should the entire cost of urbanization be left to them, they could not proceed with their proposed development. 4.5 Staff then made contact with the senior staff of the Durham Region Works Department in an attempt to see if there was some way the Region could participate financially in the urbanization project, given the fact the Highway No. 2 was turned over to Durham Region by M.T.U. on January 1, 1995. After lengthy negotiations, the Regional Staff agreed to recommend to Regional Council that they participate in this project to the amount of $240,000. 4.6 Once the Regional Staff commitment was obtained, further discussions took place with the two developers and commitments were obtained for contributions to the REPORT NO. ADMIN•14-95 PAGE 6 y� project of $400,00 from Markborough Properties Inc. and West Bowmanville Developments Ltd, on.the one hand and $250,000 from Willsonia, on the other hand, for a total amount of $890,000 towards the total cost of$1,190,000, leaving a shortfall of$300,000. 4.7 Staff recommend that Council approve amendments to the Markborough and the Willsonia Servicing Agreements, respectively, to give effect to these commitments unless alternative legal arrangements satisfactory to the Region of Durham are made directly with the Region to secure these commitments. 4.8 With respect to the cost of storm sewer oversizing on Highway No. 2, in the storm sewer accommodating flow from the north side of Highway No.2 from the Willson'a and other lands under Highway No.2(the"Highway No.2 Storm Sewer OversizW) to connect with the storm sewer to be constructed under the Markborough Servicing Agreement,it is recommended that Council approve an amendment to the Willsonia Servicing Agreement to provide that Willsonia Industries Ltd. and Chuington Place Limited will fund the cost of the Highway No. 2 Storm Sewer Oversizing. S. FINANCING OF SHORTFALL IN FUNDING OF HIGHWAY NO. 2 IMPROVEAIEN'iS 5.1 Considering the fact that the Municipality owns land on the:north side of the portion of Highway No. 2 in question, namely the municipal fire hall and the Garnet B. Rickard Recreation Complex, both developers felt that the Municipality should finance the additional $300,000 in order to have the project proceed immediately, thereby allowing both Markborough and Willsonia to commence construction in 1995. 5.2 In an.attempt to identify additional municipal funding for the road project, Staff revisited the past financial commitments made by all of the developers In the general area. On reviewing same we identified two past agreements that may be a source of funding for the Municipality to participate In the Highway No. 2 urbanization, should Council wish to see the project and the developments proceed this year. These are agreements respecting a water service contribution provided for in conjunction with the rezoning to permit the Canadian Tire Store, and the Aspen Springs Subdivision Agreement. 6. WATER SERVICE CONTRIBUTION OF WEST BOWMANVILLE DEVELOPMENTS LTD. AND MARKBOROUGH PROPERTIES INC. 6.1 The former Town of Newcastle made an agreement dated November 26, 1990,with Markborough Properties Inc.and West Bowmanville Developments Ltd.under which the cost to the municipality of extending water service to the Garnet B. Rickard 4 REPORT NO. ADMIN-14-95 PAGE 7 Recreation Complex would be defrayed by a contribution from the companies of $300,000. The two companies benefited from this municipal expenditure by being able to extend the water service to the Canadian Tire Store and the proposed Markborough Shopping Centre from the Recreation Complex, One hundred and fifty thousand dollars was paid to the Municipality on the execution of the agreement and was deposited in the Arena Reserve Fund Account. Payment of the balance of $150,000 is to be made when a building permit is issued for the proposed Markborough Shopping Centre. It is secured by Letters of Credit which is deposited with the Municipality. 6.2 Since people using the Recreation Complex will benefit from the urbanization of Highway No.2, Staff are of the opinion that it would be fair to apply$100,000 of the balance of$150,000 secured by Letters of Credit deposited with the Municipality to defray part of the cost of the improvements to Highway No. 2. Accordingly, Staff recommend that subject to the concurrence of the parties to the agreement dated November 26, 1990 between the former Town of Newcastle,Markborough Properties Inc. and West Bowmanville Developments Ltd., be amended; (1) to provide for a reduction in the security for the payment to defray part of the cost of extending the water service which is now deposited with the Municipality to the amount of$50,000 which is payable on issuance of a building permit for the.,proposed Markborough Shopping Centre;(2)to require Markborough Properties Inc.and West Bowmanville Developments Ltd. to pay $100,000 to the Municipality to defray part of the cost of Highway No. 2 improvements within 30 days following the commencement of the construction of these improvements;and(3)to require the deposit of new irrevocable and unconditional Letters, of Credit or amendments to Letters of Credit presently deposited with the Municipality to secure performance of the revised obligations of the companies. The Letters of Credit are to be issued by a bank listed in Schedule 1 of the Bank Act, in amounts, in a form and with a content satisfactory to the Treasurer. 7. UNFUNDED COSTS OF HIGHWAY NO. 2. IMPROVEMENTS 7.1 Should Council agree with Staffs last recommendation in this regard, the unfunded balance of the Highway No.2 project would be $200,000 in addition to the unfunded cost of $1,300,00 for the Older Adult Recreation Centre. This report will go on to deal with the immediate and longer term sources of these amounts. & ASPEN SPRINGS SUBDIVISION AGREEMENT 8.1 In consultation with Mr. Dennis Hefferon, the Municipality's Solicitor, Staff have reviewed the conditions of draft plan approval of the West Bowmanville Developments Ltd.subdivision located between Green Road and Regional Road No. 57, south of the CPR tracks (Plan 18T-86046 - Aspen Heights), relative to the F , 'REPORT,NO. ADMIN-14-95 PAGE 8 construction of the grade separation proposed at the intersections of future Street"C" and the CPR and the Aspen Heights Subdivision. One of the conditions of the draft plan approval was that "the Owners shall agree to reserve Blocks.342 and 347 for railway underpass and to address construction to the satisfaction of 'the Town of Newcastle." 82 The Aspen Springs Subdivision Agreement between the former Town of Newcastle and Martin Road Holdings Limited and West Bowmanville Developments Ltd. and certain mortgagees provides: "With respect to the 'CPR Underpass Work', without derogating from the provisions of paragraph 5.27 of this Agreement, the Owner agrees at its cost to commence to construct this work no later than the day on which an application is made for a building permit for a building which is or includes the 661st dwelling unit proposed to be constructed on the lands and to complete the same in accordance with this Agreement." 83 It should be noted that a grade separation may also be constructed by the Municipality at the intersection of Green Road and the.CPR at a future time. 8.4 Staff have considered the provisions of the Aspen Springs Subdivision Agreement as well as the proposal for the future construction of an underpass at the intersection of Green Road and the CPR tracks. Although the Municipality's Final Report on the Transportation Analysis for the Bowmanville Main Central Area Study stated, "All the network alternatives show an extension of the north-south collector road through a railway underpass to link with Aspen Springs Drive on the south side of the CPR tracks, this could serve as an alternative access route for West MCA traffic heading to Martin Road, instead of having to use Highway No. 2. However, consideration should be given to the impact of increased traffic on residential streets south of the railway tracks.", the Director of Planning and Development has some concern with the proposal of not proceeding with the construction of the underpass. However, staff with the exception of the Director of Planning and Development have concluded that it is not necessary in order to protect the Municipality's interest in the proper functioning of the existing and future street system both north and south of the CPR tracks and both east and west of Green Road that the "CTR Underpass Work"he constructed as provided for in the Aspen Springs Subdivision Agreement. 8S It is recommended that conditional on financial arrangements being agreed to by Martin Road Holdings Limited, West Bowmanville Developments Ltd., 829426 Ontario Inc. and 818038 Ontario Inc. and all necessary parties executing the agreements and depositing the securities referred to in this report, Council approve an amendment to the Aspen Springs Subdivision Agreement to delete the requirement that the Owner construct the "CPR Underpass Works". s REPORT NO, ADMiN-14-95 PAGE 9 8.6 Should Council agree with this recommendation,the developer of the Aspen Springs project, through Mr. William Daniel, has agreed to make an outright contribution to the Municipality of Clarington in the amount of $1S million, to be used by the Municipality for the purpose recommended in this report. 8.7 Accordingly, it is recommender: that Council: (a) approve an agreement to amend the Aspen Springs Subdivision Agreement between the Municipality, Martin Road Holdings Limited,Weaa Bowmanville Developments Ltd, Robert Louis Stevens and Royal Bank of Canada dated September 8, 1991, as amended, to delete the requirement that the Owners construct the"CPR Underpass Work"and provide security to the Municipality for the performance of the Owners' covenant to do so; (b) provide in the amendment to the Aspen Springs Subdivision Agreement or if considered appropriate by myself in consultation with the Solicitor in a separate agreement with Martin Road Holdings Limited and West Bowmanville Developments Ltd. which is to be executed prior to the amendment to the Aspen Springs Subdivision Agreement referred to in (a), for the payment to the Municipality $1,500,000 in five (5) equal annual instalments of$300,000 each, the first instalment to be paid on April 24, 1996; (c) require each of the instaiments referred to in (b) when paid to the Municipality to be deposited in the Hydro Reserve Funds Account; (d) require the deposit with the Municipality's Treasurer as alternative security for the performance of the obligations set out above unconditional and irrevocable Letters of Credit issued by a bank listed on Schedule 1 of the Bank Act in amounts, in a form and with a content satisfactory to the Treasurer. (e) authorize the Treasurer to return to the Owners the Letters of Credit deposited with the Municipality in respect of the "CPR Underpass Works" conditional on the alternative security set out in (d) being deposited with the Municipality; 9. INTERIM FUNDING REQUIREMENTS FOR OLDER ADULTS' RECREATION CENTRE AND $200,000 OF THE COST OF THE HIGHWAY NO. 2 IMPROVEMENTS 9.1 It is recommended the interim funding requirements to proceed with the Adult Recreation Centre ($1.3 million) and $200,000 of the cost of the Highway No. 2 improvements should be obtained by accessing the Hydro Reserve Funds for the REPORT NCB. ADhUN-14-95 20 10 20 f amount of$1.5 million, on the condition that this amount will be replaced over the next five years upon the.payment of the $1.5 million under the revised Aspen Springs Subdivision Agreement or the agreement between the parties referred to above. 10. TERMS OF AGREEMENTS 10.1 It is recommended all agreements to implement the recommendations contained in the report shall contain provisions considered to be necessary to protect the Municipality's interests by myself in consultation with the relevant Staff and the Municipality's Solicitor. 11. CONCLUSION AND RECOMMENDATIONS 11.1 'Ibis report addresses the funding requirements for the Older Adults' Recreation Centre and the urbanization of Highway No.2 to permit the Markborough Shopping Centre and the Willsonia developments to be commenced this year. It is recommended that this report approve.the making of agreements and other actions set out in it be approved by Council. 11.2 By adopting the recommendations of Staff Council would accomplish the construction of the Older Adult Centre, as well as the completion of the Highway No. 2 Urbanization Work without having an adverse affect on the municipal budget. 11.3 The completion of the Highway No. 2 work would then allow the developers to proceed with their commercial projects as an early date,resulting in a positive impact on the municipal assessment base. Respectfully submitted, Stockwefl Chief Administrative Officer �F ' REPORT #3 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: COUNCIL File # Res. # { Date: July 29 1996 By-law # Report #: ADDENDUM TO ADMIN. 14-95 File #: Subject: OLDER ADULT CENTRE AND HIGHWAY NO. 2 URBANIZATION WORK Recommendations: It is respectfully recommended that Council approve the following: (1) THAT the references in the recommendations contained in Report #Admin. 14- 95 to the Older Adult Centre in the proposed Durham Region Housing Authority project on Temperance Street, Bowmanville, be amended to refer to the proposed Older Adult Centre within the Municipality of.Clarington. ' (2) THAT the text of Section 6 of Report #Admin. 14-95 (attachment #1) be deleted and the payments now due under the Agreement of November 26, t1990 be required to be paid (attachment #2, $150,000 escalated to . approximately $210,000). When this payment is received, $100,000 of it is recommended to be committed by Council to the cost of urbanization of Highway No. 2. (3) THAT Section 8.7(b) and (c) of Report #Admin. 14-95 be deleted and replaced with the following: "(b) provide in the amendment to the Aspen Springs Subdivision Agreement or if considered appropriate by myself in consultation with the Solicitor in a separate agreement with Martin Road Holdings Limited and West Bowmanville Developments Ltd. which is to be executed prior to the amendment to the Aspen Springs Subdivision Agreement referred to in an for the instalments to the Municipality the firs oando eco d instalments) annual Instalme REPORT NO. ADMIN-14-95 PAGE 2 to be paid on April 24, 1997 together with interest calculated on the amount of $300,000 at the rate of 6% per annum prorated from and including April 24, 1996; (c) require each of the instalment and interest payments referred to in (b) when paid to the Municipality to be deposited in the Hydro Reserve Fund Account." 1. INTRODUCTION 1.1 Council approved the recommendations contained in Report #Admin. 14-95 at its meeting on April 24, 1995. (Attachment #1) The recommendations included: • The deletion of the "C.P.R. Underpass Work" from the Aspen Springs Subdivision Agreement._ • The acceptance of a financial contribution of $1.5 million from Martin Road Holdings Limited and West Bowmanville Developments Ltd. on the terms and conditions set out in the report. • The approval of the contribution of the Older Adult Centre at a cost of $1.3 million in conjunction with the then proposed Durham Region Non Profit Housing Authority project on Temperance Street in Bowmanville. • The provision of interim funding of $1.3 million for the Older Adult Centre and $200,000 for urbanization work on a portion of Highway No. 2 in the Bowmanville East Main Central Area from the Hydro Reserve Account. • The commitment of $100,000 to be paid by Markborough Properties Inc. and West Bowmanville Developments Ltd. in respect of the extension of water service to the Garnet B. Rickard Recreation Complex when it is paid to the cost of the urbanization of Highway No. 2. 1.2 The financial contribution of $1.5 million was to be paid in 5 equal annual instalments of $300,000 each, the first of which was to be paid on April 24, 1996. Each instalment when paid was to be deposited in the Hydro Reserve Fund Account. The financial contribution of Martin Road Holdings Limited and West Bowmanville Developments Ltd. was to be secured by an unconditional and irrevocable letter of credit to be deposited with the Municipality. i •, s REPORT NO. ADMIN-14-95 PAGE 3 1 .3 With the change in the Provincial Government, the Durham Region Non-Profit Housing Authority project on Temperance Street in Bowmanville was cancelled. Council selected an alternative site for the Older Adult Centre on property owned by Vanstone Mill Inc. at King and Scugog Streets in Bowmanville by its adoption of Resolution#GPA-684-95 approving Report#Admin.34-95. (Report #Admin. 15-96 updated Council.on the status of this project.) 1.4 The urbanization work on Highway No. 2 will proceed in 1996. Security has been posted with the Municipality by Willsonia Industries Ltd. and Clarington Place Limited for Willsonia's share of the cost of the urbanization work. A draft Subdivision Agreement between the Municipality and 829426 Ontario Inc. and 838038 Ontario Inc. (the shareholders of which are Markborough Properties Inc. and West Bowmanville Developments Ltd.) has been delivered to the parties. When settled and executed it will provide for the posting of security with the Municipality for those companies' share of the cost of the urbanization work. I 1.5 A draft Agreement to implement Report #Admin. 14- 5 by amending the Subdivision Agreement with Martin Road Holdings Limited and West Bowmanville Developments Ltd. has been prepared. It has yet to be executed j by the owners. i� 1.6 Since the amending Agreement between the Municipality and Martin Road Holdings Limited and West Bowmanville Developments Ltd. has not been executed,the first instalment payment of $300,000 of the $1.5 million financial contribution has not been made to the Municipality. Also, the $150,000 plus i the "Escalated Amount" for a total of approximately $210,000 which is to be paid by Markborough Properties Inc. and West Bowmanville Developments Ltd. under the water extension agreement is now due. i 1 .5 With the above changes in circumstance, it is desirable for Council to review and where necessary and appropriate, to approve revisions of the recommendations contained in Report #Admin. 14-95 as outlined herein. 2.0 OLDER ADULT CENTRE 2.1 Following the cancellation of the proposed Temperance Street, location of the Older Adult Centre, the Municipality called for new proposals. Report #Admin. 34-95 dated December 2, 1995 recommended as the preferred proposal that j submitted by Vanstone Mill Inc. Authority was given to negotiate an agreement with Vanstone Mill Inc. for the transfer of a site on Scugog Street, Bowmanville, with an Older Adult Centre to be constructed on a turn-key basis. j I 4 :I s . _ PAGE 4 REPORT NO. ADMIN-14 95 1 will be reporting in the near future, recommendations with regards to the Senior Centre within the Municipality of Clarington. 3.0 WATER SERVICE CONTRIBUTION OF WEST BOWMANVILLE DEVELOPMENTS LTD. AND MARKBOROUGH PROPERTIES INC. 3.1 The contribution of $150,000 plus the "Escalated Amount" became due and payable on March 24, 1996 the "Date of Final Approval of the Zoning Amendment" for the proposed Markborough Shopping Centre pursuant to the terms of the Agreement between the Municipality and the above companies dated November 26, 1990. $150,000 is secured by a Letter of Credit deposited With the Municipality, and the escalated value includes interest, calculated to date. 4.0 ASPEN SPRINGS SUBDIVISION AGREEMENT 4.1 As noted above the first instalment of $300,000 which is part of the financial contribution of West Bowmanville Developments Ltd. of $1.5 million referred to in Section 8 of Report #Admin. 14-95 was due on April 24, 1996. Mr. 1 William Daniell has requested that the Municipality defer the payment of the first instalment to April 24, 1997 on which date both the first and second instalments (that is, a total of $600,000) will be paid together with interest on $300,000 calculated at 6% per annum from and including April 24, 1996 to the date of payment. I recommend that Council approve Mr. Daniell's request in consideration of the delay in construction of the Senior Centre and the subsequent signing of the Agreement. 5. The Treasurer has been consulted on above and concurs with the recommendations. Respectfully submitted, W. H. Stockwell Chief Administrative Officer att. 1 r h SCHEDULE "CC" HIGHWAY NO, 2 URBANIZATION ZONE —=- -_ -- ----------------- --------7-rl I �T I I Up OWN 1.— AVENUE k I -- rCL'— Y I I f f t ......,. I ' m c. �L _ U ==' 17, p L-r—r1 - — A sz HIGHWAY i , e—UR NIZATION L 5 ME ES _ s I - — POSSIBLE ' G'/� GO-TRANSIT' Q -r�i STATION III (z / I' ct �I POSSIBLE HIGH //� DENSITY II I // MMtt(HIl 1 1 /./ MULTIPLE FAMILY I I� I POSSIBLE POSSIBLE BLOCK �I I I -�tott •tw�ttr- HIGH APARTMENTS (d at»N-4.7%W DENSITY I FUTURE COMMERCI WIRTWELL AVE. I I 11 umows FUTURE CO.ERCI I) I CANDLETt OURT C: MAPS BOWMAN WBOWTEMP.DWG DRAWN BY: dM DATC: MAR, 1996