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Home My WebLink AboutFSD-021-26Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 4, 2026 Report Number: FSD-021-26 Authored By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: Report Subject: Development Charge Demolition Credit - Extension Request - Nash Developments Limited Recommendations: 1.That Report FSD-021-26, and any related delegations or communication items, be received; 2.That Staff be directed to provide a one-year extension to the demolition credit for Nash Developments Limited; and 3.That all interested parties listed in Report FSD-021-26, be advised of Council’s decision. GG-089-26 Municipality of Clarington Page 2 Report FSD-021-26 Report Overview Nash Developments Limited has requested an extension of the expiration date of their demolition credit for development charges from November 2027 to November 2030. This would provide a demolition credit of eight years rather than the approved five years. Notwithstanding the market economics, the credit is provided to incent developers to redevelop properties within a short time frame to ensure that housing supply grows. Staff recommend a one-year extension to November 2028, this provides some relief to the developer while still ensuring that redevelopment occurs in a timely manner. 1. Background 1.1 On March 20, 2026, Staff received a written request from Nash Developments Limited for an extension on the development charge demolition credit corresponding with their building permits issued on November 10, 2022. 1.2 The credits are allowed under the existing DC By-law 2025-070 as well as the former By-law that would have been in effect at the time of the permit issuance. 1.3 Nash Developments Limited purchased property in December 2021. They obtained the necessary permits and demolished the existing homes shortly thereafter. These properties form part of two separate Draft Plans of Subdivision. 2. Extension Request 2.1 The developer is requesting that the expiry date of the credits be extended from November 2027 to November 2030, a three-year extension. This would change the credit period from five years to eight years after the demolition occurred. 2.2 The purpose of the demolition credit timeframe is to ensure that developers who are redeveloping land, do not demolish homes (thus removing inventory from the market) and sit on vacant land indefinitely. The intent is to promote redevelopment by providing an incentive to construct within a short time frame and make the project more financially viable. 2.3 Staff support the five-year timeframe as it provides a reasonable amount of time to complete the work necessary to redevelop land and bring new housing to market. Without a time limit, developers could demolish property and wait an indefinite period to develop. Municipality of Clarington Page 3 Report FSD-021-26 2.4 A three-year extension is, in Staff’s opinion, a large request as it is a 60% extension of time for the credit and housing is needed now in our community. Staff therefore would recommend to Council, if an extension is to be granted, a one-year extension to November 2028. This still provides 30 months for the developer to start development on that property. 3. Financial Considerations 3.1 There is no immediate financial consideration, the proponent has until November 2027 to utilize the demolition credit. 3.2 If the credit lapses, the development would be subject to full development charges. 4. Strategic Plan Not Applicable 5. Climate Change Not Applicable. 6. Concurrence This report has been reviewed by the Deputy CAO, Planning and Infrastructure Services who concurs with the recommendations. 7. Conclusion It is respectfully recommended that Council provide a one-year extension for the demolition credit. Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, 905-623-3379 ext. 2602 or tpinn@clarington.net. Attachments: Attachment 1 – Letter from Nash Developments Limited Interested Parties: List of Interested Parties available from Department. Nash Developments Limited 2300 Yonge St 5th Floor Toronto, ON M4P 1E4 1 March 20, 2026 Attention: Trevor Pinn, CPA, CA Deputy CAO / Treasurer Finance and Technology Department Municipality of Clarington 40 Temperance Street, Bowmanville ON L1C 3A6 RE: Development Charge Demolition Credit - Extension Request Multiple Properties – Nash Road and Hancock Road Municipality of Clarington Dear Trevor, On behalf of Nash Developments Limited, we are requesting an extension on the development charge demolition credit outlined in by-law 2025 -070, corresponding with the following building permits issued on November 10, 2022: Property Address Building Permit Number 1828 Nash Road BLDG-2022-0754 1832 Nash Road BLDG-2022-0755 1834 Nash Road BLDG-2022-0756 1836 Nash Road BLDG-2022-0757 2910 Hancock Road BLDG-2022-0758 2936 Hancock Road BLDG-2022-0759 3056 Hancock Road BLDG-2022-0760 3090 Hancock Road BLDG-2022-0761 3112 Hancock Road BLDG-2022-0762 3124 Hancock Road BLDG-2022-0763 3136 Hancock Road BLDG-2022-0764 3142 Hancock Road BLDG-2022-0765 3150 Hancock Road BLDG-2022-0766 3185 Hancock Road BLDG-2022-0767 In December 2021, Nash Developments Limited purchased the above referenced properties that collectively formed 2 separate Draft Plans of Subdivision (S-C-2018-0003 and S-C-2018-0004). As we continued to work through the municipal approval processes, we obtained the necessary permits and the homes were demolished soon after. Attachment 1 to Report FSD-021-26 Nash Developments Limited 2300 Yonge St 5th Floor Toronto, ON M4P 1E4 2 Over the past 18 months, market conditions have significantly impacted sales absorption and the ability to deliver new residential construction. As a result, the anticipated start date for these projects have been delayed beyond the originally projected schedule. Due to these conditions, we have been unable to secure project financing as advancing the projects at this time would introduce considerable financial risk. Incurring additional costs, through the loss of the existing development charge credit will have material impacts on the viability of these projects. Development and Construction costs across the industry have already increased due to inflationary pressures, financing costs, and escalation. Removing the benefit of the development charge credit would add another layer of expense that would make it significantly more difficult to proceed with the project as planned. Nash Developments Limited is committed to moving forward with the development and delivering much needed housing supply once market conditions improve and adequate sales momentum can be achieved. Granting an extension of the development charge credit would provide the necessary flexibility while the market recovers. For these reasons, we respectfully request that the Municipality of Clarington grant an extension of 3 years (from November 2027 to November 2030) to the development charge credit associated with these projects. This extension would allow the project to move forward once market conditions improve without imposing additional cost burdens that could otherwise delay or jeopardize their delivery. We appreciate the Municipality’s consideration of this request and would welcome the opportunity to discuss the matter further. Thank you, Victor Simone, Development Manager, (vsimone@marlinspring.com)