Loading...
HomeMy WebLinkAboutPD-79-95DN: VALIANT.GpIHE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: General Purpose and Administration Committee File # ' " Date: Monday, July 10, 1995 Res. # PD -79 -95 18T -82037 Report #: File #: By -law # Subject: SUBDIVISION AGREEMENT NEWCASTLE MEADOWS - 18T -82037 REQUEST FOR TERMINATION OF SUBDIVISION AGREEMENT OWNER: VALIANT PROPERTY MANAGEMENT LIBERTY STREET AND LONGWORTH AVENUE, BOWMANVILLE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD -79 -95 be received; 2. THAT the request submitted by Valiant Property Management for the termination of the Subdivision Agreement between Newcastle Meadows Inc. and the former Town of Newcastle, now the Municipality of Clarington, registered on title November 22, 1991, Instrument Number LT 572714 be DENIED; and 3. THAT all interested parties listed in this report and any delegation be advised of Council's decision. 1. BACKGROUND 1.1 Council, at their March 6, 1995 meeting, endorsed the following resolution: "THAT the correspondence dated February 16, 1995 from Robert P. Hann, President, Valiant Property Management regarding the subdivision agreement between the Corporation of the Town of Newcastle and Newcastle Meadows Inc., be received; THAT the correspondence be referred to the Director of Planning and Development for review and preparation of a report to the General Purpose and Administration Committee; and THAT Robert P. Hann be advised of Council's decision." 1.2 Mr. Hann noted within his submission that for numerous reasons his company would like to see the termination of the existing subdivision agreement between the former Town of Newcastle and ....2 573 REPORT NO. PD -79 -95 PAGE 2 Newcastle Meadows Inc. and the preparation of the new agreement commence. A copy of his submission is attached to this report for Committee's information. 1.3 By letter dated May 13, 1994, Staff were advised by Deborah Clarke of Valiant Property Management that as of April 22, 1994, the following two (2) properties had been purchased: i) plan of subdivision 18T- 87087, the former Fram lands consisting of 79.49 acres located on the east side of Middle Road was purchased by Halloway Holdings; and ii) plan of subdivision 18T- 82037, the former Newcastle Meadows, phases 2 and 3 consisting of 38.8 acres was purchased by Towchester Developments Limited. Processing of these developments would be carried out under Valiant Property Management Limited. 1.4 Prior to Valiant Property Managements' purchase, Staff met with representatives of the Royal Bank, Valiant Property Management, their respective legal counsels and consulting engineers to discuss the obligations of the Newcastle Meadows subdivision agreement. 1.5 Resulting from the meeting, it was Staff's understanding that of particular concern to Valiant Property Management was the requirement that the Owner not only paid for the development of the park and the construction of the collector road within the limits of the plan of subdivision but also was required to pay the remaining seventy -five percent of the outstanding lot levy charges at the current rate. 1.6 Staff advised the parties in attendance that the terms and provisions contained within the agreement reflected the requirements of the Municipality prior to the enactment of the Development Charges By -law. The preparation of the ....3 574 REPORT NO. PD -79 -95 PAGE 3 subdivision agreement, as negotiated, prior to the November 23, 1991 cut -off date provided the Developer the opportunity to proceed through to registration and allows for the subsequent payment of the first twenty five percent (25 %) instalment of the lot levies at $2974.00 by unit. The agreement did recognize that at such time the Municipality's Development Charge By -law was approved, any outstanding lot development charges would be paid at the then current rate. 1.7 In addition to the meeting which took place on March 2, 1994, Staff responded on several occasions to requests for clarification on the requirements of the agreement as well as advising the Royal Bank that the Municipality had no objections to Mr. Hann's company purchasing the Newcastle Meadows lands. It was acknowledged that under the Bank's agreement of purchase and sale of the property, Mr. Hann's company agreed to assume all obligations of Newcastle Meadows Inc. under the Phase II and III subdivision agreement. 2. STATUS OF DRAFT PLAN OF SUBDIVISION 18T -82037 2.1 The development of draft plan of subdivision 18T- 82037, comprising of a total of 169 single family lots, 22 semi- detached lots, two (2) high density blocks, one (1) commercial block, park and school block has taken place through the registration of two (2) separate subdivision agreements. Both agreements were entered into between the previous owner, Newcastle Meadows Inc. and the Municipality. 2.2 Phase one, consisting of 80 units has proceeded through to registration and construction of all but one of the 80 dwelling units within the limits of registered plan 1OM -835. Although the financial obligation of the phase one agreement have been addressed to the satisfaction of the Municipality, it contains a provision requiring Newcastle Meadows to develop ....4 575 REPORT NO. PD -79 -95 PAGE 4 the park and construct the collector road within the next phase of development. Had this provision not been included in the Phase One agreement, Staff would not have allowed Phase One to proceed toward registration. 2.3 The balance of the subdivision consisting of residential units, commercial, school and park blocks is covered by a second subdivision agreement registered on title. To date, the only obligations of this agreement that have been satisfied are the first 25% instalment of the lot development charge and the contributions for external works, both as required upon the execution of the agreement on September 16, 1991. No registration or construction within this phase has taken place. It is this agreement that Valiant Property Management wishes to terminate. 3. STAFF COMMENTS 3.1 For the information of Committee and Council, the previous owner Newcastle Meadows Inc., made a request in February of 1993 for the termination of the Phase II and III agreement as well as the refunding of all monies paid (first lot levy payment and external costs for the Mann Street Storm Sewers) . Committee and Council, in responding to the requests of Newcastle Meadows Inc. and in consideration of Staff Report PD- 26 -93, endorsed staff recommendation that the subdivision agreement not be terminated and the refunding of any monies not be approved. 3.2 The Subdivision Agreement covering Phases II and III of Plan 18T -82037 required that the development of the park and the construction of the collector road at the Owner's expense must be within the first stage slated for registration. This requirement originated from the provisions contained within the agreement prepared for the first phase of 18T- 82037. ....5 ., 576 REPORT NO. PD -79 -95 PAGE 5 Staff would note that the preparation of the agreement for phase one only proceeded on the basis of Newcastle Meadows' commitment to develop the park and construct the collector road within the limits of the draft plan. By agreeing to do so, the first phase agreement permitting the development of 80 lots, was allowed to proceed under the old lot levy by -law. Had this not been the case, the development of any of the lands within 18T -82037 would not have proceeded through to registration, but rather would have been deemed premature until the lot development charge exercise to determine the new quantum had been completed. 3.3 The Public Works Department, in reviewing Valiant Property Management's request, noted that when the subdivision agreement for phase two was being completed, the storm drainage scheme from phase two was intended to drain to the west to Bowmanville Creek. After much consideration, a plan to divert the drainage from phase two to the east of Soper Creek was agreed to be a feasible alternative for the short term. The works, however, necessary to divert this drainage, required the construction of a deep pond which normally would not be accepted. As a compromise, the deep pond was accepted, recognizing that the developer was to construct the park and collector road (Longworth Avenue) at his cost. The Public Works Department noted that if the agreement were terminated, from their prespective, the temporary drainage scheme, as proposed for the phase two agreement, would have to be reassessed in consideration of the costs now attributable to the Municipality for the development of these lands. 3.4 In addition to the above concerns, it was noted that there are provisions contained within the 1989 Schickedanz Bros. Agreement, which requires the Municipality to collect from all benefiting owners (including Newcastle Meadows Inc.) monies ....6 577 for storm water works which Schickedanz Bros. installed. The Municipality has collected the funds from Newcastle Meadows Inc. and will be reimbursing Schickedanz Bros. in the near future. Termination of the subdivision agreement would jeopardize the Municipality's obligation under the Schickedanz Agreement. In consideration of the above comments, the Public Works Department, similar to the 1993 request for termination, cannot support the termination of the Phase II Agreement. 3.5 Community Services, similarly, could not support the request, noting that a negotiated agreement was in place requiring the developer to construct the park in conjunction with phase two development of the lands. In that the School Board has expressed an interest in developing their site, the construction of the collector road and the development of the park within the initial registration for the remainder of the lands, would appear to go hand in hand with the joint development of both facilities. It was noted that should the Municipality deem it appropriate to terminate the agreement p thereby requiring the completion of a new agreement, the timing of the development of the residential component within the plan could not proceed to registration until such time the Municipality was in a position financially, to proceed with the construction of the park facilities which is not within the 10 year capital works identified in the Development Charges Policy Report. 4. CONCLUSIONS 4.1 Planning, Public Works and Community Services Department Staff cannot recommend the termination of the existing Phase II and III subdivision agreement as requested by Valiant Property Management. In summary: a) The negotiation and preparation of the two agreements covering subdivision 18T -82037 were done as a total ...7 578 PAGE 7 REPORT NO. PD -79 -95 package. The two agreements cannot be separated. Any deviation of the second agreement would impact the Municipality financially. b) The principle of "an agreement is an agreement" should not be deviated as it would have significant ramifications to the Municipality, not the least is setting a precedent for similar requests in the future. Respectfully submitted, G Y- Franklin Wu, M.C.I.P., R.P.P., Director of Planning and Development Step en A. Vokes, P. Eng., Director of Public Works LDT *FW *cc July 4, 1995 Reviewed by, W. H. Stockwell Chief Administrative Officer Jos h P. Caruana, Dir ctor of Community Services Interested parties to be notified of Council and Committee's decision: Valiant Property Management 177 Nonquon Road 20th. Floor Oshawa, Ont. L1G 3S2 T /' a February 16, 1995 The Corporation of the Municipality of Clarington 40 Temperance St., Bowmanville, Ontario L1C 3A6 RE: Subdivision Agreement Between The Corporation of the Town of Newcastle and Newcastle Meadows Inc. Phase II and III, Liberty Street, Longworth Clayton Cres. Argent Dear `!embers of Council: The above referenced subdivision agreement is the only remaining agree -ent pre- dating the Development Charges Act. =or numerous reasons that we would like to explain to Council, Committee and Clarington staff we respectfully request that it be cancelled and a new agreement under a Development Charges Act By -Law be prepared. There is no urgency on my part, but I would like to make Council aware of the following: I understand that staff are presently reviewing the charges under the Development Charges Act as required by that Act and it would be appropriate to also include this last remaining development in that study. The Roman Catholic Separate School Board are desirous of huildinQ an elementary school on this property. ..2.. W -2- 3, The advancement of a park for the neighbours in the area. I am available to discuss all of the effect of this at your convenience. Yours very truly, VALIANT PROPERTY MANAGEMENT 1 Pohr'i t N. {1,1111 P, vqidrnL RPN /ced C.C. L. Townsend Larry Taylor Rog Wr•hster Alnn Berk 581 E::] PHASE 3 a] PHASE 2 E:l PHASE 1 LOT � 11 ... ................... ..................... ..................... .. .. ... ............. .. ...... .... ........ .•HIGH DENSITY*• ,• .............. .............. ......... 11 .......... ........... ..................... .................... . ..... .. ..... ............. . .... .. .. ... ................... .... ...... COMMERCIAL\ SCHOOL PARK LLJ ry . .............. ............. Lij VC) m z CLAYTON CRESCENT CLAYTON' CRESCENT BOWMMMLE KEY MAP 1 8T-82037 u