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HomeMy WebLinkAboutLGS-039-25Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Council Date of Meeting: October 27, 2025 Report Number: LGS-039-25 Authored By: Colin Lyon, Associate Solicitor Submitted By: Rob Maciver, Deputy CAO/Solicitor Reviewed By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: Report Subject: 1697 and 1701 Highway 2 – Affordable Residential Rental Unit DC Exemption Agreement Recommendations: 1.That Report LGS-039-25 be received; 2.That the Deputy CAO/Treasurer and the Deputy CAO, Planning and Infrastructure be authorised to execute an agreement with the owner of the property municipally known as 1697 and 1701 Highway 2, Courtice to grant an exemption from development charges and parkland dedication for residential units that are intended to be affordable residential units for a period of 25 years, as detailed in Report LGS- 039-25; 3.That all interested parties listed in Report LGS-039-25, be advised of Council’s decision. Municipality of Clarington Page 2 Report LGS-039-25 Report Overview Approximately 55 affordable residential units are anticipated as part of the development of 1697 and 1701 Highway 2, Courtice, and an agreement requiring that they remain affordable for 25 years is required pursuant to section 4.1 of the Development Charges Act and Section 42 (3.0.3) of the Planning Act as part of the exemption of development charges and parkland dedication requirements for the affordable units. 1. Background Development Proposal 1.1 The owner of 1697 and 1701 Highway 2, Courtice (the “Owner”) has proposed a development which includes an intention that approximately 55 residential units across all phases of development be affordable rental units for a period of 25 years. 1.2 The plan consists of three buildings between 4-6 storeys, containing a total 138 residential units and 485 square metres of commercial space. The site would be accessed off Avondale Drive and the future extension of Richard Gay Boulevard. The site includes surface parking, a pedestrian path along the east of the site, indoor and outdoor amenity space, and landscaping. 1.3 The applicant has indicated that the proposal would be for an affordable seniors’ living complex, offering various activities, wellness seminars, etc. The commercial use is contemplated for only one of the buildings and tenants for the commercial units would be suited to meet the immediate needs of the residents on site. 1.4 The subject site is located within the Courtice Main Street Secondary Plan Area which was implemented to facilitate a more urban, dense, mixed use and transit supportive environment. It was a long-term vision for the Courtice Area to provide guidance for a main street or main central area for Courtice while also recognizing the natural environment and existing built forms by allowing for the gradual change over time. The Secondary Plan was Adopted in 2014, and an implementing Zoning By-law was also approved for the area in 2018. Offering affordable rental units is in keeping with the vision and objectives of the Secondary Plan. Legislative Requirement 1.5 Section 4.1 was added to the Development Charges Act (the “Act”) effective June 1, 2024, and provided that residential units that are intended to be affordable residential units for a period of 25 years are exempt from development charges and subsection Municipality of Clarington Page 3 Report LGS-039-25 42(3.03) was added to the Planning Act to provide a similar exemption for parkland dedication requirements. 1.6 Section 4.1 also requires that an agreement be entered into with the Municipality requiring that the units remain affordable for 25 years as part of obtaining the exemption. 1.7 The Act does not allow the Municipality to refuse to enter into an agreement regarding the exemption, but it does provide an opportunity for the Municipality to set the terms of the agreement. 2. Discussion Municipal Interest in Encouraging Affordable Housing 2.1 Municipal staff have engaged with the Owner and The Regional Municipality of Durham (the “Region”) to ensure that a potential agreement can protect municipal and regional interests while also encouraging the development of affordable housing in Clarington. 2.2 Municipal staff anticipate bringing a report to Council following the execution of this agreement with a proposal to standardise a process for future agreements, incorporating the lessons learned through this process to make future applications more efficient and streamlined. Protections for the Municipality 2.3 Municipal staff propose to include certain protections in the agreement in the event that the units fail to remain affordable for 25 years, including securing a mortgage against the property for the exempt development charges and parkland payments, requiring annual reporting from the Owner on compliance with the applicable regulations and registration of the agreement on title to the property. 2.4 Municipal staff feel that the proposed protections will create a significant incentive for continued compliance with the intentions of the legislation and the protection of the affordable status of the units. 2.5 The Development Charges Act provides in subsection 4.1(13) that the agreement “may be registered against the land to which it applies and the municipality is entitled to enforce the provisions of the agreement against the owner and… subsequent owners of the land”. The proposed approach to the agreement outlined above would make use of this power to further protect the affordable status of the units in the long-term. Municipality of Clarington Page 4 Report LGS-039-25 Coordination with Durham Region 2.6 Municipal staff have consulted with the Region to ensure that the Region’s interests will be protected and that the Region will also be a party to the agreement with the Owner. 3. Financial Considerations 3.1 If the Owner constructs the anticipated 55 affordable residential units, the total amount of Clarington’s development charges that would be exempt could range from $396,533.50 to $569,992.50, depending on the number of bedrooms in the affordable units. For the parkland dedication requirement an exemption, of $12,949.33, would be applied. If the Owner increases the proportion of affordable units in the development, the exempted amounts could be higher. 4. Strategic Plan Encouraging affordable residential unit construction in Clarington aligns with Priority C.2.2 of the Strategic Plan: Support and invest in the creation of housing to meet the needs of the community. 5. Climate Change Not Applicable. 6. Concurrence This report has been reviewed by the Deputy CAO/Treasurer and the Deputy CAO, Planning and Infrastructure who concur with the recommendations. 7. Conclusion It is respectfully recommended that the Deputy CAO/Treasurer and the Deputy CAO, Planning and Infrastructure be authorised to execute an agreement as discussed in this report with the owner of 1697 and 1701 Highway 2, Courtice relating to the exemption of development charges and parkland dedication payments for residential units that are intended to be affordable residential units for a period of 25 years, as required by section 4.1 of the Development Charges Act. Staff Contact: Colin Lyon, Associate Solicitor, 905-623-3379 ext. 2027 or clyon@clarington.net. Attachments: Municipality of Clarington Page 5 Report LGS-039-25 Not Applicable Interested Parties: The following interested parties will be notified of Council's decision: 1000792702 ONTARIO INC.