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HomeMy WebLinkAboutPSD-020-12 Clarington REPORT PLANNING SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: April 2, 2012 Resolution#: ' - / By-law#: Report#: PSD-020-12 File#: PLN 2.9 Subject: MUNICIPAL POSITION ON PROVINCIAL AMENDMENT NO.1 TO THE CENTRAL PICKERING DEVELOPMENT PLAN (PROVINCIAL PLAN FOR SEATON) RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That Report PSD-020-12 be received; 2. That the Minister of Municipal Affairs be advised that the Municipality of Clarington does not support proposed Amendment 1 to the Central Pickering Development Plan; 3. That the Minister of Municipal Affairs be advised that the Municipality of Clarington has similar concerns to those outlined in the Region of Durham Report 2012-J-10; 4. That the Minister of Municipal Affairs and Housing, the Minister of Transportation, the Regional Municipality of Durham and the Durham area municipalities be advised of Council's decision and forwarded a copy of Report PSD-020-12. Submitted by: Reviewed by: David J. Crome, MCIP, RPP Franklin Wu, Director of Planning Services Chief Administrative Officer COS/df 26 March 2012 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: PSD-020-12 Page 2 1. PURPOSE 1.1 The purpose of this report is to highlight the implications of Proposed Amendment No. 1 to the Central Pickering Development Plan with respect to the implementation of the implementation of the Provincial Growth Plan and the impacts on the Municipality of Clarington. 2. BACKGROUND 2.1 The Province of Ontario expropriated land in Pickering in the 1970's in concert with the Federal Government expropriation of lands for a new international airport. The provincial lands were acquired for the purpose of building a "New Town". Some of the history of these lands is outlined in the attached Regional Report 2012-J-10 (Attachment 1). 2.2 On November 16, 2001, the Province of Ontario introduced the Oak Ridges Moraine Conservation Plan to preserve the ecological integrity of the Oak Ridges Moraine. As the Plan was being completed, there were development applications in process that were deemed to be critically detrimental to the future of the Oak Ridges Moraine. As a consequence, the government of the day entered into a land exchange agreement in late 2001. The agreement provided for an exchange of these privately owned lands in Richmond Hill and Uxbridge for publicly owned lands in Seaton. 2.3 The Central Pickering Development Plan (CPDP) was prepared under the Ontario Planning and Development Act,1994 (Attachment 3). The CPDC, approved on May 3, 2006, is better known as the Provincial Plan for Seaton. 2.4 The land exchange agreement between the Province and the Oak Ridges Moraine developers was subsequently completed in August 2007. Over the past few years, there has been a lot of activity with respect to the Seaton lands which is detailed in the Regional Report. The land exchange developers and the Province appealed multiple applications to the Ontario Municipal Board, including applications for amendments to the Pickering Official Plan the Pickering Zoning By-law and various draft plans of subdivision. In early 2011, the Province, the land exchange developers, the City of Pickering and the Conservation Authority entered into Minutes of Settlement with respect to the Pickering Official Plan and a timetable to complete various studies. The Region, which is responsible for major infrastructure to service the lands, was not a party to the settlement. 2.5 On January 31, 2012, notice of the proposed Amendment No. 1 to the CPDP was given. The proposed amendment would: a. Change the timing requirements associated with the implementation of financial measures required by the Central Pickering Development Plan; b. Clarify that infrastructure and other community facilities related to Central Pickering will be required in a logical and sequential manner as the community builds out; REPORT NO.: PSD-020-12 Page 3 C. Clarify the population and employment forecasts in the Central Pickering Development Plan and the intent that these forecasts are to be used for the purposes of planning to 2031; d. Clarify the relationship between the Central Pickering Development Plan and the Growth Plan for the Greater Golden Horseshoe, 2006; e. Clarify the implementation process for Seaton; and f. Undertake minor housekeeping changes. 2.6 The Region's Report 2012-J-10 on Proposed Amendment No. 1 was considered and endorsed by the Joint Committees of Planning and Economic Development, Finance and Administration, Health and Social Services and Works on March 22, 2012. Regional Council is scheduled to consider the report on April 4, 2012. 3. COMMENTS 3.1 The proposed amendment to the Central Pickering Development Plan undermines the Region's role in implementing the Provincial growth targets within Durham Region Land use planning has always been under Provincial oversight and Durham is particularly constrained with the various provincial land use plans, including the Oak Ridge Moraine Conservation Plan, the Greenbelt Plan and the Growth Plan for the Greater Golden Horseshoe (the Growth Plan). The Growth Plan clearly sets as a regional responsibility the allocation or distribution of the population and employment projections to the municipalities within the Region. Furthermore, the Region has been working on the implementation of the Provincial Growth Plan through the "Growing Durham" exercise for the last few years in coordination with the local municipalities. Regional Official Plan Amendment 128 (ROPA 128) has been adopted by Regional Council. After going through this exercise, the Province now establishes growth targets for Seaton that are contrary to the ROPA 128. Moreover, the Proposed Amendment to the CPDP upsets the process of upper tier and lower tier plans presumably as a result of the Minutes of Settlement referenced above. It removes the requirement for an amendment to the Regional Official Plan prior to an amendment to the Pickering Official Plan. The proposed Provincial amendment to the CPDP clearly undermines not only the Region's process to date, but also roles for the different levels of government set out in the Growth Plan. 3.2 Seaton employment targets will negatively impact economic development in other Durham municipalities including Clarington The Province, through the Growth Plan, allocated a ratio of 3:1 (residents: jobs) to Durham, the lowest in the GTA; the other regions were allocated a ratio of 2:1. Through this amendment the Province allocates a ratio of 2:1 to Seaton (61,000:30,500). This is much higher than the ratio allocated for the whole Region. REPORT NO.: PSD-020-12 Page 4 The 30,500 jobs target for 2031 has major implications. The Growth Plan target is 160,000 net new jobs for Durham. This is approximately 5,300 new jobs per year. The Seaton target represents almost 20% of the jobs created between 2001 and 2031. Given that we are 10 years in on this period and nothing has started in Seaton, and given the servicing challenges, it is unlikely for Seaton to be serviced for development for at least another 5 years. As a result, for the period from 2018 to 2031, almost 50% of all new jobs in Durham would be expected to be located in Seaton. Targets are just that — "targets". Business will not be compelled to one area or another. Targets may never be realized without private investment. However, the significance of the target is that public infrastructure funding will be oriented to help achieve those targets. Furthermore, the Province will have an interest in seeing these targets met on their own lands and have the ability to offer incentives to achieve this. In addition to the above, the Province is also suggesting that 95% of the Seaton jobs would be office-related, further reducing the ability of the other lakeshore municipalities to attract and generate employment in other sectors other than manufacturing. This was never factored-in when developing the recommendations of ROPA 128. This has three impacts on Clarington: • It reduces the our ability to develop Town Centres and business parks by concentrating office-related space in Seaton; • It will undermine the potential market absorption of already designated employment lands in the other lakeshore municipalities; and • It reduces the need for more employment lands throughout the Region even if more easily serviced and strategically located such as the land east of Courtice Road which was refused by the Minister of Municipal Affairs (Refusal #3 see Attachment 4). The Region is also right to point out that the amendment is contrary to the recent Minister's decision on ROPA 128 where the province allocated 70,000 people and 35,000 jobs to Seaton. There is no explanation for the change. It is also important to mention that the Province has not released any technical documents (e.g. revised population and employment projections for the GTA and Durham) to justify the targets. 3.3 Infrastructure Costs for Seaton pose a significant financial cost and risk for the Region of Durham and the commitments to the Seaton development will be at the expense of Clarington and other Durham Region municipalities. The Region's report 2012-J-10 indicates that in excess of $900 million of infrastructure costs is required for Regional water, sewer, roads and transit infrastructure to service Seaton. Neither the Region nor Province has a plan to finance this infrastructure at the moment. The Region's report focuses on proposed amendments to the CPDP that seem to take away the responsibility of the land owners including the province to pay for the external infrastructure improvements that are obviously significant. REPORT NO.: PSD-020-12 Page 5 The Regional Report indicates that the Provincial Amendment to the CPDP would force the Region to plan and finance the infrastructure in Seaton as their first priority in the Region's capital budget. So the question would be whether funding would be available for other infrastructure needs, in particular to service Clarington's employment lands? Moreover, even if the Region took a disciplined approach to fairly distribute development charge dollars, there will be tremendous pressure from the Province and the influential developers in Seaton. Since this was a land-exchange arrangement to facilitate the Oak Ridges Moraine Conservation Plan, the Province will be under some obligation to ensure a smooth development process. With the Province anxious to see Seaton proceed, it could provide for partial funding towards the cost-sharing of the infrastructure costs that would make it hard for the Region to resist. Given the development charges legislation is insufficient to provide for full cost recovery of development costs, there would be an impact on tax payers across the Region of Durham in the form of: • An additional regional tax levy • Increased user charges for water, sewer and transit In addition, the financing of infrastructure would be done in part through front-ending arrangements with the developers. The concern with such a massive front-ending scheme is that the flow of Development Charge receipts back to the developers would occur for years to come. This would cause cash-flow problems for Regional projects in other municipalities and limit the Region's flexibility to address infrastructure needs. Staff fully agree with the Region's statement that "This commitment to the Seaton development will be at the expense of developing other areas of the Region." Key impacts for Clarington: • Development charge collections, user charges for sewer and water and tax levy dollars would be heavily used in Seaton; • Key infrastructure investments in Clarington would be delayed, including both plant expansions and trunk sewer/watermain extensions or replacements; and • Growth targets will not be met and progress to a more complete community with jobs in Clarington will not be achieved. At the very least, there should be an area-specific Development Charges By-law for Seaton to minimize the fiscal impacts respecting the future infrastructure needs of the other municipalities. 3.4 The Region will need to revisit the assumptions of its Growth Plan conformity exercise at some expense and delay to the Regional and area municipal plan updates The Province is, in effect, directing the Region amend ROPA 128 around the assumptions for Seaton Plan. To be fair to the Region and to all of us, the Province REPORT NO.: PSD-020-12 Page 6 should have said so four years ago. This will further delay the OMB process/decision on ROPA 128 and as a result Clarington's Official Plan Review. We are a party to the appeals on ROPA 128. The land budget analysis will have to be revisited, particularly for employment areas. Clarington did not agree with the designation of new lands in the north Pickering area given that there were readily serviceable lands in Clarington. If Seaton (Central Pickering) results in changes to the allocation of population and employment targets and the corresponding land uses, this should not be at the expense of growth areas in other area municipalities. 4. CONCURRENCE - Not applicable 5. CONCLUSION 5.1 The Provincial Amendment No.1 to the Central Pickering Development Plan undermines the autonomy of the Region of Durham in implementing the Provincial Growth Plan. The Amendment would inevitably lead to make Seaton the number one priority for infrastructure funding therefore reducing the Region's ability to properly fund projects in other areas of the Region. The proposed targets for Seaton would require the region to redraft ROPA 128 to recalculate the employment and population targets for all Regional municipalities further delaying our own Official Plan Review, 5.2 Staff concur with the analysis of Regional Staff report 2012-J-10 and recommends that Council support the Regional recommendations as outlined in that report and that together with this report be considered the official comments of the Municipality of Clarington on the proposed Amendment No.1 to the Central Pickering Development Plan. CONFORMITY WITH STRATEGIC PLAN The recommendations contained in this report conform to the general intent of the following priorities of the Strategic Plan: X Promoting economic development Maintaining financial stability Connecting Clarington Promoting green initiatives X Investing in infrastructure Showcasing our community Not in conformity with Strategic Plan REPORT NO.: PSD-020-12 Page 7 Staff Contact: David Crome and Carlos Salazar Attachments: Attachment 1 — Copy of Report from Region of Durham (2012-J-10) Attachment 2 — Context Map (Excerpt from 2012-J-10) Attachment 3 — CPDP Land Use Schedule (Excerpt from 2012-J-10) Attachment 4 — Regional Official Plan Map A5 — Consolidation for ROPA 128 List of interested parties to be advised of Council's decision: A.L. Georgieff, Region of Durham Rick Bartolucci, Minister of Municipal Affairs and Housing Bob Chiarelli, Minister of Transportation Durham Area Municipalities Attachment 1 To Report PSD-020-12 The Regional Municipality of Durham To: The Planning & Economic Development, Finance & Administration, Health & Social Services and Works Committee • From: A.L. Georgieff, Commissioner of Planning and Economic Development R.J. Clapp, Commissioner of Finance H. Drouin, Commissioner of Social Services R.J. Kyle, Commissioner and Medical Officer of Health C. Curtis, Commissioner of Works Report No.: 2012-J-10 Date: March 22, 2012 SUBJECT: Regional Response to Proposed Amendment No. 1 to the Central Pickering Development Plan (CPDP) — Initiated by the Minister of Municipal Affairs and Housing pursuant to the Ontario Planning and Development Act, 1994. Standing Committee Correspondence #2012-25 from Larry Clay, Regional Director, Municipal Services Office-Central Region, Ministry of Municipal Affairs and Housing, dated January 25, 2012, File: D03-06-37 RECOMMENDATIONS: THAT the Planning & Economic Development, Finance & Administration, Health & Social Services and Works Committee recommends to Regional Council: a) THAT the Minister of Municipal Affairs and Housing be advised that the Region of Durham does not support proposed Amendment No. 1 to the Central Pickering Development Plan (CPDP) for the following reasons: • It is contrary to the Province's stated purpose for the amendment of "clarity" and "minor housekeeping", because it will have significant impacts on the local autonomy for the development of Seaton, including planning, the implementation of infrastructure and related financing requirements for the Region and the City of Pickering; Report No.: 2012-J-10 Page No. 2 • The 2031 population and employment allocations (e.g. 61,000 persons and 30,500 jobs) are not consistent with the Region's growth management "Growing Durham" study, and are in conflict with Regional Council's position (e.g. 70,000 persons and 16,500 jobs); • It deletes any consideration from the CPDP that market influences should be taken into account in the planning of Seaton within the 2031 timeframe, which is inconsistent with the Region's Growing Durham study and methodology; • It is inconsistent with the vision and policy direction of the Growth Plan for the Greater Golden Horseshoe (Growth Plan), as it hampers the Region's ability to plan for complete communities; • It contravenes the Growth Plan policy 5.4.2.2 requirement for upper-tier municipalities to allocate population and employment forecasts to lower- tier municipalities; • It removes the requirement of a Durham Regional Official Plan Amendment (ROPA) prior to the approval of an amendment to the Pickering Official Plan to implement the CPDP, which essentially usurps the Region's legislative authority, and is contrary to the current Ontario land use planning framework, and specifically subsections 17(13) and 27 of the Planning Act, • It potentially delays the construction of the Highway 407 interchanges in Seaton, which detrimentally impacts CPDP Policy 4.6.3 and Regional and City of Pickering direction for servicing Seaton's employment lands, prior to or concurrent with the first phase of residential development; • It is inconsistent with the Region's practice of having financial arrangements in place prior to development approvals, because the amendment proposes that financial arrangements be in place at a later stage of the development process namely, prior to the issuance of building permits; • It is inconsistent with Regional Official Plan (ROP) Policy 8.3.3 and Section 6, because the amendment removes the requirement that the Region's financial interests and security be protected prior to development approvals; Report No.: 2012-J-10 Page No. 3 • It is contrary to the Provincially endorsed North Pickering Land Exchange and Development Principles to respect local planning responsibilities, and to remain an active participant in the development of Seaton; • It is contrary to the Region's Principles for the development of Seaton, established by Regional Council 10 years ago, that local planning autonomy be maintained and that the Region's financial security be protected; and • It allows the Province and Seaton landowners to withdraw from any responsibility to address internal and external infrastructure requirements necessary to ensure that Seaton will function as a model community from the outset, which will subject Regional taxpayers and ratepayers to an inappropriate financial risk related to funding the water, sewer, roads and transit infrastructure costs associated with the development of Seaton. b) THAT the Minister of Municipal Affairs and Housing be requested not to proceed with Amendment No. 1 to the CPDP; C) THAT in order to ensure there is no financial impact on the Region's taxpayers and ratepayers in the development of Seaton, the Minister of Municipal Affairs and Housing, be requested to: • amend the Development Charges Act, 1997 to enable municipalities to fully recover the costs of new development (e.g. eliminate the ten year historical level of service restriction on soft services like transit), so that "growth pays for growth"; • provide upfront funding for the infrastructure costs to service the Provincially-owned lands (as the Province is a significant landowner within Seaton, owning approximately 47% of the developable land area), to ensure that the employment lands will be serviced prior to or concurrently with the first phase of residential development; and • provide financial assistance to the Region, in accordance with Section 20 of the Ontario Planning and Development Act, 1994 in the event that increased costs are encountered in the implementation of the CPDP; and Report No.: 2012-J-10. Page No. 4 d) THAT a copy of Report No. 2012-J-10 be forwarded to the Minister of Municipal Affairs and Housing, the Region's area municipalities, Regional Municipality of York, City of Toronto, Town of Markham, Toronto Region Conservation Authority (TRCA), Minister of Infrastructure, Minister of Transportation, Ontario Infrastructure and Lands Corporation, Association of Municipalities of Ontario (AMO), Sernas Associates, 407 ETR, Transport Canada, Metrolinx, and the Greater Toronto Airports Authority (GTAA). REPORT: 1. PURPOSE 1.1 The purpose of this Report is to recommend a Regional response to proposed Amendment No. 1 to the CPDP. The CPDP was prepared by the Ministry of Municipal Affairs and Housing under the authority of the Ontario Planning and Development Act, 1994, and came into effect on May 3, 2006. This Provincial Plan applies to land located in the central part of the City of Pickering, namely the Seaton Urban Area (Seaton) and the Duffins Rouge Agricultural Preserve (Agricultural Preserve). 1.2 This Report also provides historical context, background information, and an update on recent activities related to the development of Seaton, including: • Principles for the development of Seaton; • A description of the CPDP; • A summary of studies required to implement the CPDP; • Seaton land ownership; • Provincial Development Facilitator involvement, Minutes of Settlement and Mediation; and • Related Ontario Municipal Board activity. 1.3 For reference, a copy of the CPDP, illustrating proposed Amendment No.1 is provided on CD in Attachment 1. The proposed amendment, including a numerical reference to each change ("item"), are shown in red font. Report No.: 2012-J-10 Page No. 5 1.4 Comments on the proposed amendment are provided in italics. 2. HISTORICAL CONTEXT AND BACKGROUND Location 2.1 The land located within the central part of the City of Pickering, known as Seaton, and the agricultural land to the west of West Duffin Creek, known as the Agricultural Preserve, were originally acquired by the Province in the early 1970's for the purpose of building a "New Town". The New Town was to achieve a population in the order of 150,000 —200,000. The lands are immediately south of the land acquired by the Federal government for a proposed airport (refer to Attachment 2 — Context Map). 2.2 Seaton has been designated as an Urban Area in the ROP since the first Plan was approved by the Province in 1978. The planned population for Seaton at that time was 90,000. The Agricultural Preserve, formerly a "Special Study Area", was designated for agricultural uses in the early 1990's, and retains an agricultural designation today in the ROP. In 1995, the Province announced its intention to divest Agricultural Preserve lands into private ownership. Since then, most of the land in the Preserve has been sold to private interests. Land Exchange Agreement and Principles for the Development of Seaton 2.3 In late 2001, as part of the Province's strategy to protect the Oak Ridges Moraine, the Province announced its intention to exchange some publicly owned lands in Seaton for privately owned lands on the Moraine in Richmond Hill and Uxbridge (land exchange agreement). 2.4 In 2002, the Province appointed a "North Pickering Land Exchange Review Panel", chaired by David Crombie, to recommend a set of principles to guide the valuation, exchange and future development of"North Pickering" (now known as "Central Pickering"). Among the six principles recommended by the Panel, and subsequently endorsed by the Region and the Province, are: Report No.: 2012-J-10 Page No. 6 • that "the Province, as a local landowner, potential development partner, regulator and guardian of the public interest, must remain an active participant in the subsequent protection and development of North Pickering"; and • that "development of land in North Pickering must demonstrate innovation and sustainability while respecting the planning responsibilities of the City of Pickering, the Region of Durham, and the Province of Ontario". [emphasis added] 2.5 The Region supported these principles because they were seen to support the Region's interests to ensure Seaton was developed in a manner that maintained the Region's autonomy in the planning of Seaton, and did not cause any financial burden on the Region. 2.6 At the same time the Region was considering the Panel's recommendations, Regional Council endorsed a set of Principles for the development of Seaton that were consistent with ROP policy and the Panel's recommendations, including: • Seaton be developed as a model community, embracing the concepts of compact urban form, transit supportive, mixture of uses, good urban design, pedestrian and cyclist friendly, and in harmony with nature (ROP Policies 8.1.4, 8.1.5, 8.1.6, 8.2.1, 8.3.2); • The provisions of the ROP for the development of Seaton will be implemented through appropriate policies in the Pickering Official Plan (ROP Policy 8.3.11); • Provincial involvement should continue in the development of Seaton to provide for continuity in development, and to simplify financial arrangements for infrastructure (ROP Policy 8.3.3); • A study of the staging and timing of the development of Seaton, in terms of financial impact on the Region (including water, sewer and roads), will be undertaken prior to consideration of development (ROP Policy 8.3.3); Joint Report 2002-J-30, December 4, 2002. Report No.: 2012-J-10 Page No. 7 • "Growth must pay for growth" and each phase of development must be financially sustainable (ROP Policy 6.2.1); • Infrastructure costs incurred for non-sequential development must be borne by the developers (ROP Policy 5.3.11); • Infrastructure oversizing costs for development expected to occur in the long-term, shall be borne in the interim through front-end financing by the Province/developers/landowners (ROP Policy 6.2.1); • Taxpayers and ratepayers shall not be adversely impacted due to the development of Seaton (ROP Policies 6.2.1, 6.3.1, 6.3.2); and • Pickering and Durham have primary responsibility for planning Seaton (ROP Policy 8.3.11). [emphasis added] 2.7 These Principles have guided the Region throughout the process of advancing the development of Seaton, and reflect the key interests of the Region to ensure its local autonomy and financial security. Central Pickering Development Plan (CPDP) 2.8 In April 2003, the Minister of Municipal Affairs and Housing issued an Order under the Ontario Planning and Development Act, 1994 establishing a "Planning Development Area" comprising Seaton and the Agricultural Preserve. Subsequently the Province proceeded to prepare a Development Plan for this area. This resulted in the approval of the CPDP, which came into effect on May 3, 2006. 2.9 The CPDP provides policies for the development of Seaton and the Agricultural Preserve (refer to Attachment 3 — CPDP Land Use Schedule). 2.10 The CPDP establishes policies for Seaton, which include: • a large and diverse land area containing an extensive Natural Heritage System (53% of the land base) that is to remain in public ownership and be properly managed; Report No.: 2012-J-10 Page No. 8 • a community with "an eventual population of up to 70,000 residents" and 35,000 jobs; • providing sufficient opportunity for employment to be balanced with population (i.e. one job for every two persons); • a transit supportive community from the earliest stages of development; and • servicing employment lands along Highway 407, prior to or concurrent with the first phase of residential development. 2.11 Early in the process, it was recognized that significant infrastructure improvements are required to develop Seaton in a manner consistent with the vision of the CPDP, including: • major Regional water and wastewater infrastructure to service the new community, including oversizing to accommodate future development of the Federal lands as the Region's preferred approach (estimated at $572 million); • new Regional arterial roads, with several significant bridge structures, such as Whites Road and Whitevale By-pass crossing West Duffin Creek (estimated at $278 million); • transit infrastructure, including a new depot (estimated at $100 million); • a solid waste transfer station (estimated at $4 million); • community facilities (e.g. Police, EMS, Health and Social Services), estimated to exceed $20 million; • two new Highway 407 interchanges (estimated at $55 million); • improvements and widening of Highway 7 through Seaton, which is currently under Provincial jurisdiction (estimated at $73 million); and • significant improvements to roads outside the Region (e.g. Steeles Ave in Toronto, Markham By-pass and14th Avenue in York) to support the new urban development (estimated at $117 million). Report No.: 2012-J-10 Page No. 9 2.12 The Seaton area and its development as envisioned by the CPDP is unique in the Province of Ontario. No other area in the Province shares its history of in- depth planning as a single development proposal for such a broad geographic area, with higher than normal standards for natural heritage protection and expectations for its development as a transit supportive, model community from the outset. This is evidenced by the fact that the Province deemed it necessary to enact the CPDP under the Ontario Planning and Development Act, 1994 to develop a new urban community, an approach not used anywhere else in the Province. Supporting Studies to Implement the CPDP 2.13 Since the CPDP came into effect, numerous studies have been completed, or are underway, to support the implementation of the CPDP (refer to Attachment 4 - Summary and Status of Required Studies to Implement the Central Pickering Development Plan), 2.14 Regional staff have participated and provided input throughout the preparation of all of these studies, and continue to do so for the studies that are underway. Regional involvement is guided by the Principles for the development of Seaton established by Regional Council, to ensure that Regional interests are protected. 2.15 Regional interests have also been identified and conveyed to the Province on numerous occasions through Joint Reports to Regional Counci12 and correspondence from the Regional Chair. 2.16 The preparation of these studies and the efforts expended in their completion, confirm the Region's expectation that Seaton will be developed as a model community, addressing Regional Council's Principles for the development of Seaton (refer to Section 2.6). 2 Reports 2002-J-30, 2003-P-56, 2005-P-73, 2006-J-14, 2006-P-18, 2007-J-08, 2007-J-22, 2008-J-01, 2009-J-03, and 2009-J-22. Report No.: 2012-J-10 Page No. 10 Seaton Land Ownership and Appeals to the Ontario Municipal Board 2.17 In August 2007, the land exchange agreement between the Province and the Oak Ridges Moraine developers was completed. As a result, a significant portion of the residential/mixed use lands within Seaton was transferred to private developers (the land exchange developers). The Province continues to retain ownership of approximately 75% of the Seaton lands, including all of the employment lands (400 hectares) along the Highway 407 corridor, the entire Natural Heritage System, the Hamlet Heritage Open Spaces adjacent to Whitevale and Green River, and portions of the residential/mixed use lands generally along Brock Road (refer to Attachment 5 — Seaton Land Ownership Map). In terms of developable land area, the land exchange developers own approximately 615 hectares (1,520 acres) or 53%, and the Province owns approximately 550 hectares (1,360 acres) or 47%3. 2.18 During the 2008/2009 period, the land exchange developers submitted draft plans of subdivision, Pickering Official Plan amendment and zoning-by-law amendment applications to the City of Pickering for their respective properties in Seaton. 2.19 In September 2010, the land exchange developers filed appeals to the Ontario Municipal Board (OMB) for the City's failure to make a decision on the planning applications. 2.20 In April 2011, the Province submitted planning applications for its developable land holdings, and subsequently in October 2011 also filed appeals to the OMB, in order to consolidate Seaton planning matters before the OMB. 3 Proposed Staged Servicing and Implementation Strategy (SSIS), December 2011, Sernas Associates. Report No.: 2012-J-10 Page No. 11 3. RECENT ACTIVITIES Provincial Development Facilitator 3.1 In June 2010, the Provincial Development Facilitator (Facilitator) was assigned to advance the implementation of the CPDP. The Facilitator held a number of confidential and without-prejudice sessions involving the Province, land exchange developers, TRCA, the City of Pickering and the Region. Minutes of Settlement 3.2 Following several months of meetings with the Facilitator, in January/February 2011, the Province, land exchange developers, TRCA and the City of Pickering entered into Minutes of Settlement expressing joint support for a proposed Pickering OPA, and a time table to complete the other required studies pertaining to the development of Seaton, to the satisfaction of the City, including: • Neighbourhood Plans; • Sustainability Guidelines; • a Staged Servicing and Implementation Strategy (SSIS); • a Master Environmental Servicing Plan amendment; • Neighbourhood Functional Servicing and Stormwater Reports (NFSSR); and • a Fiscal Impact Study for the City of Pickering. 3.3 The Region is not a party to this agreement, because major Regional issues related to infrastructure, phasing, and planned growth to 2031 are not addressed in the proposed Pickering OPA to the Region's satisfaction. In particular, the proposed Pickering OPA includes a population of 61,000 and 30,500 jobs by 2031 for Seaton, whereas the Region's Growth Plan conformity amendment (ROPA 128) includes a 2031 forecast of 70,000 people and 16,500 jobs. Further, the population and employment figures contained in the proposed Pickering OPA conflict with the Province's decision to modify ROPA 128 by allocating 70,000 people and 35,000 jobs to Seaton. Report No.: 2012-J-10 Page No. 12 Ontario Municipal Board Pre-hearings and Mediation 3.4 Between March and December 2011, four OMB pre-hearing conferences occurred related to the Seaton appeals. Also, during this period, Regional staff participated in 20 days of OMB mediated discussions with Provincial staff, with the objective of resolving differences. Unfortunately, these efforts were unsuccessful. 3.5 On July 4, 2011 the Region filed a Notice of Motion with the OMB to request consolidation of the Seaton OMB appeals with the ROPA 128 appeals, or as an alternative, an adjournment of the Seaton OMB hearing (the Motion). The Motion was necessary to address the Region's concerns with the conflicts between the ROPA 128 forecasts for population and employment, other population and employment numbers in the Minister's modification to ROPA 128, and the proposed Pickering OPA for Seaton. 3.6 On July 7, 2011 the Regional Chair wrote to the Ministers of Municipal Affairs and Housing, and Infrastructure, expressing concern that the issues the Region has repeatedly brought forward regarding the development of Seaton were not being addressed, including the potential financial burden on the Region and taxpayers (refer to Attachment 6 — Letter from Chair Anderson to Ministers). 3.7 During the week of November 28, 2011, the Region's Motion was heard by the OMB. In its Motion, the Region argued that the Seaton hearing should either be consolidated with the ROPA 128 hearing, and therefore be considered comprehensively, or, in the alternative, be adjourned until the hearing on ROPA 128 had progressed beyond the land budget exercise. A key issue for the Region in seeking consolidation or adjournment included the potential prejudice to the balance of the Region if Seaton was considered in isolation. 3.8 In its decision on the Region's Motion, the OMB refused to order consolidation. Instead, the OMB ordered that evidence on growth management for the whole of the Region could be heard on issues with respect to population and employment numbers for Seaton in the Seaton Report No.: 2012-J-10 Page No. 13 hearing, and that those numbers could properly be considered as a predetermined "input" into growth management for the balance of the Region in the ROPA 128 hearing. The commencement of the Seaton hearing was adjourned, but only until February 27, 2012. Section 43 Review 3.9 In response to the OMB's decision on the Motion, the Region filed a request to the OMB to review its decision in accordance with Section 43 of the Ontario Municipal Board Act (Section 43 Review), on the basis that the decision was incorrect. 3.10 The OMB scheduled a hearing on January 25, 2012 to re-argue the Motion and to hear submissions on the Section 43 Review. Declaration of Provincial Interest 3.11 Immediately prior to the commencement of the hearing on the Motion, the Minister of Municipal Affairs and Housing issued a declaration of provincial interest under the Planning Act regarding the appeals to Pickering's OPA and zoning by-law amendments affecting Seaton (refer to Attachment 7). The declaration was accompanied by a proposed amendment to the CPDP (proposed amendment). 3.12 Under the Planning Act, when the Minister has declared a provincial interest, the decision of the OMB is not final until approved by the Lieutenant Governor-in-Council, who may also vary or rescind the decision of the OMB. 3.13 The hearing of the Motion and the February 27, 2012 OMB hearing for the Seaton appeals were subsequently adjourned. A pre-hearing conference for the Seaton appeals is scheduled for June 11, 2012. Comments: 3.14 The intervention of the Minister at this stage in the OMB hearing process is alarming and without precedent. It is evident that the Province is quite Report No.: 2012-J-10 Page No. 14 concerned that the potential outcome of the proceedings may affect its self interest as a major land owner in Seaton. The material that was produced by the Province as a result of an OMB Order through the course of the Seaton pre-hearings, clearly indicates that the Province is promoting development in Seaton without competition from potential development elsewhere in the Region. 4. PROPOSED AMENDMENT NO. 1 TO THE CPDP 4.1 On January 31, 2012, notice of the proposed amendment was received by the Region from the Ministry of Municipal Affairs and Housing, consisting of 23 changes or items (refer to Attachment 8 -Standing Committee Correspondence #2012-25). 4.2 The stated purpose for the proposed amendment is to: • change the timing requirements associated with the implementation of financial measures; • clarify that the need for infrastructure and other community facilities will be required as Seaton builds out in a logical and sequential manner; • clarify the population and employment forecasts, and the intent that these forecasts are to be used for the purposes of planning to 2031; • clarify the relationship between the CPDP and the Growth Plan; • clarify the implementation process for Seaton; and • undertake minor housekeeping changes. [emphasis added] Comments: 4.3 Contrary to the Province's assertion that the proposed changes to the CPDP are minor in nature and intended to provide "clarity"or "minor housekeeping"changes, the amendments will have significant impacts on local autonomy and the financial security of the Region and the City of Pickering. In some cases, the changes proposed by the Province introduce additional policy conflicts (e.g. absorption rates in relation to phasing) rather than the desired clarity. Report No.: 2012-J-10 Page No. 15 4.4 As previously noted, local autonomy and the financial security of the Region have been the key principles directing the Region's involvement in the Seaton development process for over ten (10) years. Interference in Local Autonomy 4.5 The proposed changes to the CPDP reduce the Region's autonomy for planning its future growth and development, including: • the addition of policies to recognize a population of 61,000 residents and 30,500 jobs at 2031, and requirements for the Region to use these numbers when undertaking its conformity exercise with the Growth Plan (refer to items 1, 2, 3, 4, 5, 6, 10, 11, 12, 13, 14, 15, 16, 19, 20, 21 of the proposed amendment); • the deletion of Section 4.8.6 to remove consideration of future market demands in forecasting growth in Seaton (refer to item 17 of the proposed amendment); and • the revision to Section 5.3 to remove the necessity for a ROP amendment prior to approval of the City's OPA, plans of subdivision and zoning amendments to implement the CPDP (refer to item 23 of the proposed amendment). Comments: 4.6 The CPDP currently includes policies that recognize that Seaton will accommodate an eventual population of"up to" 70,000 residents and 35,000 jobs, with no reference to a specific timeline within which that would occur. The requirement to take into account "future market demands"in the planning for Seaton (as was done in the Region's Growing Durham study methodology) is proposed to be deleted. The Province is proposing population and employment numbers (61,000 people and 30,500 jobs) for Seaton that have been calculated on the basis of an unrealistic and unprecedented development capacity for the lands within the 2031 timeframe, with no consideration for the reality of market influences. The proposed employment numbers rely upon an unrealistic and Report No.: 2012-J-10 Page No. 16 improbable assumption that over 95% of jobs in Seaton's designated employment area will be office related. 4.7 The proposed population and employment numbers are most troubling in the context of the employment (ie.jobs) allocation for the broader Region for the period to 2031. The implication of the Province's amendment proposal will require the reallocation of almost 15,000 jobs. Two options would be available, as described below. 4.8 One option is to maintain the Growing Durham employment allocations by area municipality, and to re-allocate the jobs within Pickering. The Province's proposal includes a disproportionate number of population-related and office type jobs directed toward Seaton. As a result, less than 400 population- related and office jobs would remain for allocation in the remainder of the existing Pickering Urban Area, including the Urban Growth Centre to 2031. This outcome would not provide the opportunity for the remainder of Pickering to grow as a complete community. This is not in conformity with the vision and policy directions of the Growth Plan. 4.9 The other option is for the entire Region to share in the loss of the employment allocation because of the Province's proposal to direct most of the Region's new jobs to Seaton. The result would be significantly less Employment Area expansions in Whitby(-30 hectares), Oshawa (-55 hectares) and elsewhere in Pickering (414 hectares) than the Growing Durham (350,000 jobs) allocations, representing over 500 fewerjobs in Whitby, about 1,500 fewerjobs in Oshawa, and almost 4,000 fewerjobs elsewhere in Pickering. In addition, almost 9,000 population-related and other non-employment area related jobs would have to be redirected from the remaining area municipalities to Seaton, resulting in declining employment activity rates (i.e. employment/population) in all area municipalities except Pickering. The disproportionately small share of new employment that would be distributed to the area municipalities other than Pickering, hampers the Region's ability to plan for complete communities through the rest of Durham, as required by the Growth Plan. Report No.: 2012-J-10 Page No. 17 4.10 Collectively, these changes to the CPDP seriously compromise the Region's ability to comprehensively plan for the future growth and development of the entire Region. The changes conflict with the provisions of Growth Plan policy 5.4.2.2, which gives the Region the responsibility for allocating growth forecasts to the Region's lower-tier municipalities. In addition, the changes also interfere with the Region's ability to plan for complete communities throughout the Region -- not just Seaton. In effect, the Province is proposing to nullify the Region's comprehensive review exercise (Growing Durham) and impose numbers that are in conflict with Regional Council's position. 4.11 The proposed amendment also removes the necessity for a ROPA prior to approval of the Pickering OPA, thereby usurping the Region's legislative authority under subsections 17(13) and 27 the Planning Act, which identifies the ROP as a "mandatory" Official Plan and requires lower-tier Official Plans (i.e. the Pickering OP) to be in conformity with upper-tier Official Plans (i.e. the ROP). In addition, the proposed amendment is contrary to the Province's Principle to respect local planning responsibilities, and the Region's Principle that local planning autonomy be maintained. Infrastructure 4.12 The proposed changes to the CPDP have the potential to impact the phasing of infrastructure, and costs related to infrastructure both within and outside the Seaton urban area. These include: • the revision to Section 3.2 to require that the costing and development of infrastructure apply to the "Development Planning Area" only, rather than, taking into account the broader surrounding community, as currently contained in the CPDP (refer to item 7 of the proposed amendment); • the revisions to Sections 4.3.3, 4.5.1, 4.5.3 to require that the development of regional and inter-regional transportation infrastructure outside of the Development Plan Area be on an "as required" basis and that the "progressive" development of such infrastructure will occur "with the build-out" of Seaton (refer to items 8, 9, 13 of the proposed amendment); Report No.: 2012-J-10 Page No. 18 • the revision to Section 4.6 to require that servicing be phased, based on an "absorption rate for residential and employment lands" (refer to item 14 of the proposed amendment); and • the revision to Section 4.6 to delete the provision that permits development "subject to the availability of servicing" (refer to item 14 of the proposed amendment). Comments: 4.13 The proposed change to the geographical area reference from "the City of Pickering" to "the Development Plan Area" will release the Province and Seaton land exchange developers from any responsibility for the phasing and construction of infrastructure external to the Development Plan Area. The provision of the essential external infrastructure is left to the agencies that have jurisdiction, when and if it suits them, 4.14 The Region repeatedly has advised the Province about necessary Regional infrastructure improvements needed to serve Seaton, including transit. The Region has reiterated its concerns to the Province about the potential financial burden on the Region, and the impact it may have on infrastructure construction in the rest of the Region, including: • construction of the Regional road network including significant bridge structures to service Seaton (estimated at$278 million in 2011 dollars, with an estimated$226 million in development charge funding and$52 million in property tax funding). The Region is not in a financial position to construct the Regional roads required for Seaton, while addressing the substantial demands related to the Regional road network throughout the rest of the Region; • construction of water and sewer infrastructure estimated at$572 million (2008 dollars) will be incurred with the development of Seaton. A substantial portion (estimated at$222 million) is attributable directly to Seaton. Approximately$226 million is attributable to future growth in Ajax and Pickering, and these costs are included in the current DC By-law or will be included in future development charge studies. An estimated$58 Report No.: 2012-J-10 Page No. 19 million in costs is attributed to a benefit to existing residents, and must be recovered by water and sewer user rates. The remaining $66 million in costs are attributable to the oversizing of the water supply and sanitary sewerage infrastructure for the Federal lands. The development of Seaton is accelerating the need to resolve the issue of servicing the Federally-owned lands. The most practical and logical approach to providing the requisite infrastructure is to oversize through Seaton, so that such construction to install water and sanitary sewerage services does not occur twice. The Region however, is not in a financial position to carry the cost of oversizing to accommodate the long-term timetable for the development of the Federal lands. These oversizing costs cannot be funded by development charges. Without senior level government funding, or funding from the landowners, these costs would have to be financed 100% from water supply and sanitary sewerage user rates, which will ultimately have a financial impact on residents across the Region; and • the provision of an enhanced transit system for Seaton to meet the objectives of the CPDP's for a transit supportive community and to provide transit at the outset of residential development. The estimated capital cost is $100 million (2011 dollars). Undercurrent development charges legislation, it is estimated that$10 million will be recovered by development charges, resulting in a $90 million funding shortfall to be funded by Regional taxpayers, in addition to ongoing operating costs for transit service. 4.15 The Region has also expressed significant concerns with the eventual timing for, and related costs of infrastructure that is not within the Region's jurisdiction or is located outside the Region, including: • road improvements to ensure the adequate connectivity with adjacent municipalities, including the widening of Highway 7 (owned by the Province) and improvements to Steeles Avenue and 14th Avenue/stn Concession in Toronto and York Region. Because these roads are not within the Region's jurisdiction, the Region has no control over when or if improvements will be implemented. In fact, the Province has advised that it has no plans to widen Highway 7. Likewise; the City of Toronto and Report No.: 2012-J-10 Page No. 20 Region of York have advised that they have no plans to improve Steeles Avenue or 14th Avenue/5th Concession. The lack of improvements on these roads will significantly reduce the inter-regional functionality of the road network; and • the early construction of the Highway 407 interchanges within the employment lands in Seaton to ensure that development can proceed concurrent with the initial phases of residential development. If the interchanges are not built in time to coincide with the development of the first phase of residential lands, the employment area will not be marketable, and anticipated development charge revenues will not be realized. 4.16 To address some of these concerns, as required by the CPDP, the Province prepared the Durham/Toronto/York (DTY) Area Transportation Plan Study, to identify and prioritize key transportation infrastructure investments required to address inter-regional transportation and transit network deficiencies in the eastern part of the GTA. The Study was completed in 2009, and provides cost estimates and a recommended timetable for improvements that are required to ensure Seaton develops as envisaged by the CPDP, and to maximize land values through improving services in this part of the GTA. The Study was to form the basis for provincial/municipal investments for this part of the GTA, and form part of a larger Treasury Board submission in support of the Seaton development that was being coordinated by the then Ontario Realty Corporation and Ministry of Energy and Infrastructure.4 Financial support from the Province to address this infrastructure, essential to the functioning of the Seaton community, has never materialized. 4.17 The proposed changes to the CPDP with respect to the required timing and phasing of infrastructure, removes any responsibility for the Province or the Seaton landowners to provide any assistance to the Region, to provide necessary infrastructure in the early stages of development that would ensure that Seaton will function as a sustainable, model community from the outset. 4 Seaton Intergovernmental Group Meeting, Presentation by Ministry of Transportation staff, October 23, 2009; and letter to Garry Cubitt, CAO, Regional Municipality of Durham and Thomas Quinn, CAO, City of Pickering from Peter Rzadki, Assistant Deputy Minister, Ministry of Public Infrastructure Renewal, January 22, 2008. Report No.: 2012-J-10 Page No. 21 The proposed changes could also delay the construction of the Highway 407 interchanges, which would have a detrimental impact on Policy 3 in Section 4.6 of the CPDP and Regional and City of Pickering directions to provide services to Seaton's employment lands, prior to or concurrent with the first phase of residential development. Further, the proposed amendment is inconsistent with the Province's and Region's Principles for the development of Seaton that provides for the Province to remain an active participant and continue to be involved in the development of Seaton for continuity, and to simplify financial arrangements for infrastructure. 4.18 Each of these situations demonstrates a glaring lack of commitment by the Province to actually advancing the physical implementation of the Seaton project in any practical way. 4.19 The amendment proposes to introduce the use of"absorption rates5"to achieve Seaton's proposed 2031 population and employment forecasts, while retaining CPDP policy related to "cost-efficient and logically sequential extension of infrastructure". This combination presents a contradictory servicing policy. On one hand, CPDP policy would continue to promote "cost-efficient and logically sequential extension of infrastructure", which indicates that Seaton's development would occur from south to north. As such,job creation on Seaton's employment lands would not occur in conjunction with residential development, as specified in other CPDP policy, the Pickering OPA and the ROP. On the other hand, the proposed amendment introduces absorption rates, suggesting that the CPDP, Pickering OPA and ROP policies for the early servicing of Seaton's employment lands are being upheld, by requiring residential and employment land development to occur concurrently. Given that the stated purpose for amending the CPDP is, in many instances, "to clarify" the CPDP, this servicing policy should have been more carefully crafted, to clearly direct that phasing must accommodate the servicing of Seaton's employment lands prior to or concurrent with the first phase of residential development. 5 Residential absorption rates would be based on a set number of residential units that would have to be constructed on an annual basis, while employment land absorption rates would be based on an amount of land area (hectares) that is to be developed or"absorbed" on an annual basis. Report No.: 2012-J-10 Page No. 22 4.20 The amendment proposes to delete the provision that permits development to occur"subject to the availability of servicing"from the CPDP's servicing policies. This deletion does not change the Region's jurisdiction to provide Regional services at its discretion. Under current law in Ontario, the Region has absolute discretion as to whether to service Seaton, and the OMB cannot compel the Region to build infrastructure or connect development to its infrastructure. Therefore, the rationale for this change to the CPDP is not clear. Financial Issues/Risks 4.21 The proposed changes to the CPDP introduce further financial uncertainties on the Region, and expose existing Durham taxpayers and ratepayers to substantial and inappropriate financial risk. These include: • the deletion of part of Section 5.1.5 which stipulates that the implementation of appropriate measures and financial agreements, including front-ending agreements, cost-sharing agreements and development charges are required to ensure the development of Seaton will not cause a financial burden on the Region or the City; • the modification to Section 5.1.5 to require appropriate financial arrangements be in place prior to the issuance of building permits, rather than prior to or concurrent with the approval of Neighbourhood Plans; and • the deletion of part of Section 5.1.5 which states that Fiscal Impact Studies be completed prior to or concurrent with the approval of the first Neighbourhood Plan. (Refer to item 22 of the proposed amendment) Comments: 4.22 As indicated in Section 4.14 of this Report, in excess of$900 million (plus inflation) in Regional water, sewer, roads and transit infrastructure will need to be expended with the development of Seaton. The proposed amendment subjects the Region to substantial financial risks with the Report No.: 2012-J-10 Page No. 23 proposed removal of policy that ensures that the Seaton development would not pose a financial burden on the Region. As previously noted, the Region's direction has long been to advance the process towards the development of Seaton in a manner that would not place a financial burden on the Region, or in other words that the development of Seaton would pay for itself. This financial security is currently contained in Section 5.1.5 of the CPDP. However, the proposed amendment, as described above, removes the financial protection of Durham taxpayers and ratepayers. 4.23 The proposal to amend the CPDP to remove the assurance of financial security in the development of Seaton is of major concern. This concern is shared by the City of Pickering, as detailed in Attachment 9. The deletion of the provision related to "financial burden"is not consistent with the Minister's stated "purpose"for the amendment to change the timing for when financial arrangements must be in place. The removal of the reference to "financial burden"is unrelated to "timing". The proposal to amend the CPDP to remove this assurance puts the Region and City at considerable financial risk. It is also inconsistent with the Region's Principles for the development of Seaton and Section 6 of the ROP. 4.24 The second major financial concern with the proposed amendment is the requirement for the Region to use the 30,500 employment forecast for Seaton in its Growth Plan conformity exercise. The Region would then be required to use this employment forecast in the future water supply and sanitary sewerage area specific development charge by-law and the Region-wide Development Charges (DC) By-law, rather than the 16,500 employment forecast established by the Region for Seaton. As identified previously, the 30,500 employment number is unrealistic, as it relies on the assumption that 95% of jobs in Seaton's designated employment area will be office- related.. This will expose the Region to an inappropriate financial risk. The Region will be required to construct the necessary infrastructure to accommodate the 30,500 employment forecast, thereby incurring higher capital costs than would occur under the Growing Durham employment forecast of 16,500. If the employment number proposed by the amendment does not materialize, the Region will not recover the DCs necessary to fund the capital expenditures for water, sewer and roads Report No.: 2012-J-10 Page No. 24 (i.e. the Region will be under-collecting from each non-residential unit if the employment number is not achieved). 4.25 The proposed amendment also changes the timing that the financial measures are to be in place. The substantial capital infrastructure requirements involved with the development of Seaton (in excess of$900 million) will require front-ending and cost-sharing agreements, and DC By- laws will be required, to ensure that the development of Seaton does not have a negative financial impact on Durham Region taxpayers and ratepayers. The current policy in the CPDP (5.1.5) is to have all these financial arrangements, including the results of the Fiscal Impact Study, in place prior to the approval of the Neighbourhood Plans. With the proposed amendment, the land exchange developers and the Province can have their Neighbourhood Plans approved and submit draft plans of subdivision (and subsequently sell lots), prior to having the necessary financial measures in place, and without knowing the financial consequences of the development. This is a dangerous precedent. It would create financial uncertainty to both the Region and the City on the feasibility of ever developing Seaton. 4.26 Current CPDP Policy 5.1.5 prevents the proposed Pickering OPA from moving forward, unless appropriate measures and financial agreements are in place. By changing the timing for financial arrangements to the building permit stage, the OMB could approve the City and Seaton landowner's planning applications (OPAs, subdivisions, zoning), in the absence of understanding the financial consequences of the development, and in the absence of necessary financial arrangements. This is inconsistent with ROP Policy 8.3.3, ROP Section 6, and the Region's Principles for the development of Seaton that are in place to protect the Region's financial security. More specifically, it conflicts with the ROP Policy 8.3.3, which requires Regional Council to be satisfied that appropriate arrangements can be made prior to consideration of any development in Seaton. 4.27 The proposed change in timing requirements for the completion of financial arrangements to the building permit stage is contrary to the Report No.: 2012-J-10 Page No. 25 Region's practice. Based on discussions with City of Pickering staff, similar concerns have been expressed (refer to Attachment 9). In order to protect the interests of the Region, a number of criteria must be met prior to processing development applications (i.e. executing a subdivision agreement). Based on the proposed amendment, it is unclear if the Region can impose conditions on draft plans of subdivisions within Seaton, or if the Region would have to rely on the OMB to include the Region's standard conditions for draft plan of subdivision approval, which cannot be guaranteed, 4.28 As stated previously, front-ending and cost sharing agreements and development charge by-laws will be required to advance the water, sewer, roads and transit infrastructure in order to accommodate the development of Seaton. However, there is an inherent risk to the Region when entering into front-ending agreements. Front-ending agreements commit future development charge receipts to specific capital projects. Therefore, with a front-ending agreement for Seaton, a share of the Region's future development charges will be tied up in DC credits for Seaton and would limit the DC cash receipts available for infrastructure work in other areas of the Region. This commitment to the Seaton development will be at the expense of developing other areas of the Region. 4.29 The development of the Seaton community is unique, since the Province is a substantial landowner, and thus must be directly involved with financial arrangements to ensure that Seaton develops as a sustainable community, and not at the expense of the rest of the Region. However, the proposed amendment does not support the objectives identified in the CPDP for a sustainable community, as it transfers an inappropriate financial risk to the Region to develop Seaton. 4.30 It is because the Region has long recognized the potential financial ,implications and impacts associated with the infrastructure necessary for the development of Seaton as a sustainable, model community, that the Region has repeatedly requested the Province to: Report No.: 2012-J-10 Page No. 26 • amend the Development Charges Act, 1997 to enable municipalities to fully recover the costs of new development (i.e. eliminate the ten year historical level of service restriction on soft services like transit), so that "growth pays for growth';• and • provide financial assistance to the Region in implementing the CPDP in accordance with Section 20 of the Ontario Planning and Development Act,1994 in the event that increased costs are encountered in the implementation of the CPDP. The Province has not acted on these requests. It is noted however, that the Province amended the Development Charges Act, 1997 to better support the extension of the Yonge subway from Toronto into York Region, Additional Comments 4.31 The CPDP includes a policy indicating that a review will be undertaken by the Minister of Municipal Affairs and Housing every five years. The CPDP came into effect in May 2006, and more than five years have elapsed. It is not clear whether proposed Amendment No.1 to the CPDP constitutes the "review"; particularly since the stated purpose is to provide "clarity" and "minor housekeeping"changes. If so, it is not understood why, for example, the following matters were not addressed. • correction to the inconsistent use of the terms "Development Planning Area"and "community"throughout the CPDP to avoid confusion, particularly with population and employment references; • clarification that the Master Environmental Servicing Plan (MESP) is being undertaken by the land exchange developers, as opposed to being "municipally-undertaken", and that it applies to the Seaton Urban Area only, not the "entire Development Planning Area", which includes Seaton and the Agricultural Preserve; • clarification that the Province completed the Natural Heritage System Management Plan and Master Trails Plan Study for Seaton in 2008, and that the Study should now be implemented by Official Plan policy, Report No.: 2012-J-10 Page No. 27 • clarification that the Province completed the Durham/Toronto/York (DTY) Area Transportation Study in 2009, and that the Province will undertake an update of the DTY Study, in order to keep information current for Provincial decision-making; • clarification that the Province completed the Highway 407 (Seaton Lands) Economic Development Study in 2007, and that the Study should now be implemented by Official Plan policy; • clarification that the Duffins Rouge Agricultural Preserve is subject to Ontario Regulation 154103 and the Duffins Rouge Agricultural Preserve Act, 2005; • an update to indicate that the Seaton Urban Area is designated a "Specific Policy Area"in the ROP, and replacing the ROP Schedule contained in the CPDP, to reflect the current in-force ROP as approved by the OMB in January 2008 through ROPA 114; and • correction to Schedule 4— Transportation Network, to designate Fairport Road, south of the east Cherrywood cluster, to a "Type C Arterial", consistent with the ROP and Pickering OP. It appears that the Province's motivation for the proposed amendment is to develop Seaton without regard for the Region's planning authority or financial security. If the amendment was truly for"clarification"and "housekeeping"purposes, presumably input and consultation with major stakeholders, such as the Region, would have been sought prior to the release of the proposed amendment, and the language and policy inconsistencies previously identified would have been included. This did not occur. 5. CONCLUSIONS 5.1 The Province entered into a land exchange agreement with certain Richmond Hill and Uxbridge developers in order to protect the Oak Ridges Moraine. To do so, a portion of Seaton's developable lands was conveyed by the Province to the land exchange developers, and is now under private ownership. As such, the Province has a vested interest in satisfying the land exchange Report No.: 2012-J-10 Page No. 28 developers. Moreover, a significant portion of the lands continue to be owned by the Province. Therefore, the Province also has a vested interest in successfully developing and marketing the land it owns in Seaton. 5.2 The rationale for some of the amendment proposals remains unclear, given that some of the proposals are inconsistent with the Minister's stated "purpose" which are supposedly for "clarification" and "housekeeping" purposes. 5.3 The proposed amendment appears to reflect an attempt by the Province to resolve specific issues that are hindering the approval of Seaton's planning applications currently before the OMB. The resolution of these issues through an amendment to the CPDP under the authority of the Ontario Planning and Development Act, 1994 could serve to avoid a lengthy OMB hearing for Seaton, to the detriment of the Region. 5.4 However, the proposed amendment, in no way, advances the physical development of Seaton. There are no financial agreements in place, which are required to address the infrastructure costs associated with the development of Seaton (estimated to exceed $900 million) as development charges will not sufficiently cover the associated infrastructure costs to develop Seaton as a sustainable, model community. The proposed amendment is a vehicle for the Province and land exchange developers to impose a plan for their lands and withdraw from their responsibility to finance the necessary infrastructure for Seaton, and to download this responsibility to the Region--without any regard to the Region's planning autonomy or financial implications. Proceeding with the development of Seaton based on the proposed amendment will be at the expense of development elsewhere in the Region, and expose Regional taxpayers and ratepayers to a substantial and inappropriate financial risk. 5.5 Based on the long history of planning for Seaton as a model community, including the time, effort, and cost that has been invested by the Region, City, TRCA, Provincial staff, land exchange developers and others, there was an expectation that a model community would emerge. With the proposed Report No.: 2012-J-10 Page No. 29 amendment, the expected form of development is a typical suburban subdivision, contrary to the expectation and promise of a model community. Furthermore, the Province is prepared to circumvent the conventional subdivision process (which ensures financial security for municipalities), by changing the timing for financial arrangements to the building permit stage. 5.6 For the most part, the amendment proposals compromise the Province's own Principles for the land exchange and development of Seaton, and the Region's Principles for the development of Seaton put in place to respect local planning autonomy and financial security. Further, the amendment proposals do not recognize the Region or City's practice for financial arrangements, and are inconsistent with the provisions and directions in the ROP, the Growth Plan, the Growing Durham study, ROPA 128, and Ontario's current land use planning framework (i.e. the Planning Act). 6. RECOMMENDATIONS 6.1 It is recommended that proposed Amendment No. 1 to the CPDP not be supported for the reasons contained in this Report, and that the Minister of Municipal Affairs and Housing be advised accordingly. 6.2 In order to minimize the impact on Durham residents from the development of Seaton, it is recommended that the Province be requested to: • amend the Development Charges Act, 1997 to enable municipalities to fully recover the costs of new development, so that "growth pays for growth"; • provide upfront funding for the infrastructure costs to service the Provincially-owned lands (as the Province is a significant landowner within Seaton, owning approximately 47% of the developable land area), to ensure that the employment lands will be serviced concurrently with the first phase of residential development; and Report No.: 2012-J-10 Page No. 30 • provide financial assistance to the Region in accordance with the Ontario Planning and Development Act, 1994 in the event that increased costs are encountered in the implementation of the CPDP. 6.3 Finally, it is recommended that a copy of this Report be forwarded to the Minister of Municipal Affairs and Housing, the area municipalities, and various other agencies that have interest in the development of Seaton. 7. NEXT STEPS 7.1 The Province is accepting submissions on the proposed Amendment until April 2, 2012. In accordance with the Ontario Planning and Development Act, 1994 (refer to Attachment 8), if submissions on the proposed amendment to the CPDP are received within the specified time period, the Minister may: • appoint a hearing officer to conduct a hearing with respect to the proposed amendment and make a written recommendation on it; • refer the matter to the Ontario Municipal Board to conduct a hearing with respect to the proposed amendment and make a written recommendation on it; • after considering the submissions, approve the proposed amendment in whole or in part or make modifications to it and approve the amendment as modified; or • after considering the submissions, propose to refuse the proposed amendment in whole or in part. 7.2 Staff will monitor the amendment process, and report back as appropriate. 7.3 This report was prepared in consultation with the Regional Solicitor. Report No.: 2012-J-10 Page No. 31 A.L. Georgieff, MCIP, RPP R.J. Clapp, CA Commissioner of Planning and Commissioner of Finance Economic Development Clifford Curtis, P.Eng., MBA, R.J. Kyle MD, MHSc, CCFP, FRCPC Commissioner of Works Commissioner & Medical Officer of Health Dr. Hugh Drouin Commissioner of Social Services RECOMMENDED FOR PRESENTATION TO COMMITTEE Garry H. Cubitt, M.S.W. Chief Administrative Officer Report No.: 2012-J-10 Page No. 32 Attachments: 1. CD copy of the Central Pickering Development Plan, illustrating proposed Amendments 2. Context Map 3. CPDP Land Use Schedule 4. Summary and Status of Required Studies to Implement the Central Pickering Development Plan 5. Seaton Land Ownership Map 6. Letter from Chair Anderson to Ministers dated July 7, 2011 7. Declaration of Provincial Interest dated January 25, 2012 8. Standing Committee Correspondence #2012-25 from Larry Clay, Regional Director, Municipal Services Office-Central Region, Ministry of Municipal Affairs and Housing, dated January 25, 2012 9. Summary of Key Messages Relayed to the Minister of Municipal Affairs and Housing by the City of Pickering, March 2012 All attachments are on file with the Planning Services Department Attachment 2 To Report PSD-020-12 UXBRIDGE YORK 0 Glasgow REGION DURHAM stouffville REGION . o - :...: •• Balsam • o Claremont.Q 1t". o Federal -p,` __ . Airport V- 3 r n = Cornell MAE- Locust Hill 1- Highway? Markham O c Highway 7" O Whitevale Br ugham j �- � High y 407 � OB x Grove i l Seaton Agricultural Taunton Rd. r Preserve Cedar 4js G p,R Steeles Ave. Grove Chi od Rouge Park PICKERING O AJAX Qp1 N�ghv�ay SCARBOROUGH Attachment 3 To Report PSD-020-12 a 0 0 rnrn J e C D D E N E � H y N Y� a`O 0'c' N o o c c 'd E Nc0) J N 0 KQ'Cr U O GJ G l0 N l0 L' �.T d 4 N •� m m o N V rnrn0O a? wE IMM m rrr G , of (MMQ)- �. 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