HomeMy WebLinkAboutWD-3-85 4
CORPORATION OF THE TOWN OF NEWCASTLE
PUBLIC WORKS DEPARTMENT R. DUPUIS, P. ENG., DIRECTOR
HAMPTON,ONTARIO TEL.(416)263.2231
LOB 1J0 987-5039
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MEETING OF JANUARY 21 , 1985.
REPORT NO. : WD-3-85
SUBJECT: ADMINISTRATION OF DEVELOPMENT AGREEMENTS
RECOMMENDATION:
It is respectfully recommended:
1. That this report be received; and,
2. That Council reaffirm its concurrence with the Town' s
Standard Subdivision Agreement as the instrument
setting out the agreed upon conditions between the
Town and Developers of land within the Town; and,
3. That staff be directed to take whatever actions are
necessary to ensure that the conditions set out in
said subdivision agreements are complied with so as to
protect the interests of the Town; and,
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REPORT NO. WD-3-85
4. That staff meet with major land developers in the Town
and their consultants and/or agents to discuss
problems currently being experienced with the
administration of Development Agreements; and,
5. That the Town' s Standard Subdivision Agreement be
modified to authorize the Treasurer to cash any letter
of credit which has not been renewed at least ten (10)
working days prior to the expiry date thereof; and,
6. That the Treasurer be authorized to cash any currently
held letters of credit which have not been renewed at
least ten (10) working days prior to the date of
expiry thereof and, that the involved parties be so
advised.
REPORT:
With the acceleration of development in the Town, problems
relating to administration of the Standard Subdivision
Agreement are manifesting themselves, and becoming a greater
concern. In short, it would appear that some developers are
either signing the subdivision agreement without full
knowledge of their obligations under the agreement, or for
the sake of time, are ignoring their agreed upon
obligations. In any event, this approach leads to untold
problems for staff with no financial and, in some cases,
legal protection for the Town.
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REPORT NO. WD-3-85
The major problem seems to be occuring where a developer is
required to secure certain approvals and pay certain
securities prior to proceeding with a particular phase of
development. For example, Section 5.10 of the agreement,
sets out certain conditions for authorization to commence
works. In most cases, the developer is so anxious to
proceed that the requirements are, for the most part,
ignored. This leads to the developer constructing works
with no blessing by the Town and, ultimately, some question
as to the quantity and quality of construction. Since the
Town, upon completion of the development, is expected to
assume the constructed works, the above procedure is very
unsatisfactory. To date it has been difficult to enforce
the agreement too rigidly as the developers feel that they
are providing a major benefit to the Town and should not be
constrained by red tape. Any actions taken by staff are
considered anti-development and reflect poorly on the Town.
However, if the Town is to maintain protection under the
terms of a legally binding agreement, there is an obligation
to take all necessary actions to ensure compliance. As
these latter points potentially involve Council , staff are
seeking Council concurrence with respect to the format of
the existing agreement. Additionally, as some of the
developers and their agents may not fully appreciate the
collective implications of all development in the Town, it
would be desirable to arrange a meeting to discuss how we
would like to proceed, armed with Council support and
direction.
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REPORT NO. WD-3-85
Further to the above, there are other problems relating to
lead time required for processing of matters by staff;
inspections, engineering details, etc. , which should all be
discussed. Thus the previously mentioned meeting is even
more important.
The latter two recommendations relate to renewal and/or
cashing of letters of credit to maintain the Town's
security. Firstly, the letters of credit are secured as a
guarantee that the developer is sincere in his intention to
develop in an orderly fashion. They also provide for
completion of the works in the event that the developer
encounters financial difficulties. Under the present
agreement, a letter of credit is issued by the Developer' s
lending institution usually for one year' s term. However,
the works may not be completed in a year and the financial
guarantee provided by the letter of credit must be renewed.
Unfortunately, the administrative procedures associated with
renewal often result in a situation where the old letter of
credit would expire prior to issuance of a new one. To
cover this situation and maintain a secure position for the
Town, it is recommended that the agreement be modified so
that all parties understand that the Treasurer will have the
right to cash letters of credit which have not been renewed
at least ten (10) working days prior to the expiry date of
the original letter .
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REPORT NO. WD-3-85
As indicated previously, problems with the administration of
subdivision agreements are becoming evident, with increasing
development activity in -the Town. However, it is felt that
proper co-ordination and co-operation can improve the
present situation. The recommendations of this report
should go a long way towards achieving this.
Respectfully submitted,
R.G. Dupuis , P. Eng.,
Director of Public Works.
T.T. Edwards, M.C. I .P.,
Director of Planning.
RGD/TTE/ico
January 15, 1985.
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