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Home My WebLink AboutFND-006-05 , ~!~mgron REPORT FINANCE DEPARTMENT Date: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE TUESDAY MAY 24,2005 Resolution #: h;J!lc2f3-e;<) Meeting: Report #: FND-006-05 File#: By-Law #: Subject: COMPLAINT BY SYVAN DEVELOPMENTS LIMITED UNDER SECTION 20 OF THE DEVELOPMENT CHARGES ACT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-006-05 be received; 2. THAT the objection to development charges levied on 275 Toronto St. Newcastle by Syvan Developments Limited be received and the decision of the Chief Building Official be upheld; and 3. THAT Syvan Developments Limited be notified of Council's decision. Submitted by: Nancy Tay r, . . :, CA, Director of Finance. / / Reviewed bY:cJ ~-:::..,&..s1..c. Franklin Wu, Chief Administrative Officer. NT/hjl FND.006-05 Page 2 BACKGROUND: 1.0 Council held a hearing into a municipal development charges complaint on Monday, February 28, 2005. Mr. Edmond Vanhaverbeke, President, Syvan Developments Limited made a presentation to Council regarding a building being constructed at 275 Toronto St., Newcastle. A copy of Mr. Vanhaverbeke's submission is attached. 1.1 Under By-Law 2000-108, as amended, development charges are payable in respect of the development of residential and non-residential buildings or structures at the rates set out in Schedules "1" and "2" of the By-Law, subject to certain exemptions set out in the By-Law. With respect to the building in question, it is 'non-residential' as the term 'non-residential' is defined in subsection 1 (1) of the By-Law. Accordingly, the non-residential development charge per square metre rate would be payable in respect of this development unless they are exempted from the development charge by an exemption provision contained in By-Law 2000-108, as amended. 1.2 Whether or not development charges are payable in respect of any development is determined in the first instance by the Chief Building Official when an application for a building permit is received. His determination is based on the characteristics of the development that is proposed, other evidence provided by the applicant to establish the use to which the development will be put, and the provisions of the Development Charges By-Law. 1.3 The Chief Building Official, in interpreting the By-Law, concluded that the buildings in question were non-residential with no exemption eligibility. As there was no tenant at the time of the building permit application, the applicant could not establish that the building was to be used for industrial purposes. 1.4 The fact that the buildings in question are located in an area where they are a permitted industrial use under the Zoning By-Law does not affect in any way the question of the interpretation of the development charges By-Law. 1.5 The development charges By-Law exempts the development of an industrial building from the payment of development charges and defines 'industrial' as follows: "industrial" means manufacturing, assembling, processing, fabricating, refining, research and development, storage of materials and products, truck terminals, warehousing, .... FND-006-05 Page 3 CONCLUSION: 2.0 As mentioned above. the applicant could not establish that he fell within the definition for the exemption for the use of the building. As a result, development charges were levied under the By-Law. It is recommended that this decision be upheld. If no charge is levied and the tenants end up being commercial. there would be no mechanism to recover the development charges levies. Attachment "A": Complaint from Syvan Development Limited Interested Parties: Syvan Developments Limited CORPORATION OF THE MUNICIPALITY OF ClARINGTON 40 TEMPERANCE STREET, BOWMANVlllE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 Attachment "A" ~D(-\-- WFNb-OC.,,'o5" 20 ROBERT STREET WEST, UNIT A NEWCASTLE, ONTARIO UB 1C6 DEVELOPMENTS LIMITED BUS. 905-987-3211 FAX 905-987-3083 www.syvan.com January 31, 2005 Mayor John Mutton Members of Council .I,cU!!l:PfiUTY uFCLARINGTON _J...:L;:;:.::i;.iG uEPARTMENT Dear Mayor and Members of Council: Re: 275 Toronto St. Newcastle. Buildinl! Permit #040729 Objection to Development Charges on the Above Property Please consider this our Notice of Objection to paying the development charges on building permit #040729 for 275 Toronto St., Newcastle. The property in question is zoned Ml Industrial andwe in are the process of building an industrial building on it without tenant or buyer in place; As you know, there are. no development charges applicable to industrial. buildings (By-Law #2000-108, 23 ,"Rule with Respect to the Exemption of Industrial Development"). However, we were told we must pay the development levy of $14,029.09 (see attached) because the building "might" be used for a use other than industrial. Unfortunately, there is no way for us to recover that development levy should the property be sold or leased in an industrial use (as we expect it will) except by submitting an objection to the levy in writing within 90 days of the permit being issued (pursuant to "Development Charges" ChapterD.9.8.la and 2a). Given that we are going forward with this building "on spec". given that it is an industrial building on industrial-zoned lands and given that it is very likely to attract a new business to the community, we feel that the development levy was inappropriate considering we were offered no mechanism to recover the lot levies should it finally be used for industrial uses. . , These are the grounds of my protest. Please feel free to contact me for additional information. Sincerely, SYV AN DEVELOPMENTS LIMITED ~ Edmond Vanhaverbeke President Cc: David crom{ Rick Pigeon Tv:\cnlands\development charge appeal jan 31 05 , . t- v 0 ~ ,C') I C"') . CO 0>. M N "'! N I'-- ": 1(j)'CO 01 " ~ to .1 . en a. .q- - ~ I'-- '" 1'--'0> ~ ~ C') 0 '" '<I" !Oll'-- N <s M ~ .... N_ O> C') '" ,C') CD 0 - ~ ~ z :..-""Iai .; -" "" => ~ ~ W ~ 0 0 0 , ~ 0 0 10 N :ii i (.) a W <( ~ ~ =l:t: .... W ~ <( ~ I- 0 Q: c.. .... 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