HomeMy WebLinkAboutPD-81-98DN: PD-81-98
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting:
Date:
General Purpose and Administration Committee
Monday, June 22, 1998
Report #: PD-81-98
FILE #: 10M-793
File # DI'Z- I ~ • BC~og ~
Res. # C~ 1'J ~' 3~~'9~
By-law #.
Subject: REQUEST FOR RELEASE OF SECURITY DEPOSIT
REGISTERED PLAN OF SUBDIVISION tOM-793
APPLICANT: ROSSERT TAUNUS CONSTRUCTION LTD.
PART LOT 15, CONC. 3, FORMER TOWNSHIP OF DARLINGTON
FILE NO.: 10M-793
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report PD-81-98 be received for information; and
2. THAT all interested parties listed in this report and any delegations be advised of
Council's decision.
1. BACKGROUND
1.1 Mr. Michael Schuster, appeared as a delegation before Council at their March 30'",
1998 meeting with respect to Plan of Subdivision 10M-793 located between Old
Scugog Road and Regional Road 57, north of Gauds Gate. Mr. Schuster requested
the return of his occupancy security deposit. He indicated that in August 1987,
Rossert Taunus entered into a subdivision.agreement with the then Corporation of
the Town of Newcastle. Mr. Schuster indicated that only one of the original eleven
(11) properties has not been built on to date. The last remaining (vacant) property
(Lot#1) was sold in 1993.
1.2 Mr. Schuster submitted a schedule (Attachment #1) which formed part of the offer of
purchase and sale for Lot 1 signed by the vendors stating that they agreed to submit
a security deposit of $1,500.00 which would serve as the occupancy deposit for this
699G33
REPORT NO.: PD-81-98
PAGE 2
lot. Mr. Schuster proposed to sign the security deposit over to the Municipality, or
alternatively agreed to collect the deposit from the vendors when they are ready to
build and have the $1,500.00 excluded from the return of the $10,000.00
occupancy deposit that the Municipality presently holds. He also asked for the
return of all interest accrued on the $10,000.00 since April of 1992. Furthermore,
he requested the return of the interest on his "cashed" works cost estimate
performance guarantee of approximately $11,000.00.
1.3 In consideration of Mr. Schuster's delegation, Council endorsed the following
resolution:
"THAT the delegation of Michael Schuster be received and referred to staff for
review and preparation of a report; and,
THAT Michael Schuster be advised of Council's decision."
2. STAFF COMMENTS
2.1 Occupancy Deposit Guarantee
2.1.1 As Mr. Schuster confirmed, a Subdivision Agreement between the Corporation of
the Town of Newcastle and Rossert Taunus Construction Ltd. was entered into on
August 18'", 1987. This Agreement permitted the development of eleven (11) lots
covered by draft Plan of Subdivision 18T-86047.
2.1.2 Prior to the issuance of any building permits within the plan, the Developer was
responsible for submitting to the Municipality an Occupancy Deposit in the amount
of ten thousand ($10,000.00) dollars. The occupancy deposit is returned to the
Developer when the following items have been completed for all the dwellings
within the limits of the draft plan:
i) all roads have been constructed to the satisfaction of the Municipality;
ii) all storm drainage system, as required, have been connected to the building;
iii) all the utilities have been connected to the building;
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REPORT NO.: PD-81-98 PAGE 3
iv) water supply and sewage system have been connected to the building
v) the building has received all building and plumbing inspections; and
vi) the Owners Engineer have provided the Director of Public Works written
confirmation that the lot conforms to the grading and drainage plan for the
subdivision.
2.1.3 Until all dwelling units within the draft plan have been built and satisfied the six (6)
items listed above, the occupancy deposit is held by the Municipality.
2.1.4 Mr. Schuster and his solicitor have been advised on two occasions that the original
occupancy deposit could be replaced with another should the Owner (Rossert
Taunus) wish to substitute his with that of a builder or subsequent Owner. At no
time prior to Mr. Schuster's presentation to Council was staff approached with the
option of reducing the existing occupancy deposit down to fifteen hundred
($1,500.00) dollars.
Nevertheless, in discussing the matter with the Public Works Department, staff
would have no objections to reducing the currently held occupancy deposit down
to one thousand five hundred ($1,500.00) dollars for lot number one.
2.1.5 It is noted for the Committee's information that as the Municipality was not a party
to the offer of purchase and sale of Lot 1, Mr. Schuster's offer to "sign over" the
Schedule "A" occupancy guarantee is neither enforceable nor acceptable. The
Municipality's level of comfort is the terms and provisions of the Subdivision
Agreement and the occupancy deposit it requires.
2.2 Work Cost Estimate performance Guarantee
2.2.1 Prior to the issuance of an Authorization to Commence Works in 1987, Rossert
Taunus Construction Ltd. provided security deposits ($67,000.00) in the form of
Term Deposits for the Works Cost Estimate as contained in Schedule "J" and "G" of
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REPORT NO.: PD-81-98
PAGE4
the Subdivision Agreement. It is the Municipality's normal practice throughout the
development of any Plan of Subdivision to permit a reduction in the Works Cost
Estimate securities if the "Works" have been completed to the satisfaction of the
Director of Public Works.
2.2.2 In November of 1993, the remainder of the Term Deposit ($8,243.84) was drawn
down by the Municipality to pay several outstanding invoices for snow clearing,
legal fees as well as an outstanding Bell Canada claim for damages. The remainder
of the Term Deposit that was not used ($2,265.50) was returned to Rossert Taunus
in October 1995 when all actions were finalized. The Municipality no longer holds
any security deposits for the completion of any of the Works within the limits of this
draft plan.
2.2.3 The Treasury Department has confirmed that pursuant to Municipal practices, any
interest that has accumulated during the time the Municipality held the Occupancy
and Works Cost Estimate term deposit securities will be verified and returned to the
Owner.
Respectfully submitted,
C~ h~Q ~~~
Franklin Wu, M.C.I.P., R.P.P.
Dire r Planning & Development
arie Marano, H.BSc., A.M.C.T.,
Treasue
LT*FW*df
1l June 1998
Attachment No.1: Schedule "A" for Lot No. 1
Reviewed by,
W.H. Stockwell,
Chief Administrative Officer.
Interested parties to be notified of Council and Committee's decision:
Rossert Taunus Construction
5 Taunus Court
BOWMANVILLE,Ontario L1C4H5
699036
~.
ATTACHMENT 1
1
SCHEDULE'R'
ATTACHED TO and forming a part of this Agreement.
VENDOR: ROSSERTTAUNUSCONSTRUCTION LTD.
PURCHASER: STEVEN GRAFFI AND FLORENCE GRAFFI
DATE: ~ ~17~4 3
VENDORS AND PURCHASERS ACIQVOWLEDGE AND AGREE:
f . The m(nimum building requirement for th(s lot is 2,000 square feet.
2. P~,:rrlt~~, :~~ sss to Fiao~vitib to tfie Vendors Sofldbr on cl~~rg a
Sb~„riy Je~osrt of ONE THOUSAND FNE HUNDRED(51,600.00)DOLLARS
to be returned to the Purdtaser upon flrral approval by the Vendor
and the Town of New~castie of the Purchaser's flrral buiding eiewtlon,
landscaping and grading.
3. The dwelling shah not have wood siding aril there shall be no mix
of brick and vinyl skiing.
4. No two buRd(ngs within 5()0 metres shall loolk alike.
~~ ~~ a z/! 7/4 s'
Punch er ~~ -
Purohaser ~ Dad
Roasert Taunus
Date
699Q37