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HomeMy WebLinkAboutPD-89-95r; V DN: KINGSCOURT.GTIdE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT P U B L I C M E E T I N G Meeting: General Purpose and Administration Committee File #L Date: Tuesday, September 5, 1995 Res. # Report #PD -89 -95 File #:CDM 001 -94/C By -law # Subject: CONDOMINIUM CONVERSION APPLICATION KINGSCOURT RESIDENTIAL LIMITED 1 -37 KINGSCOURT ROAD, BOWMANVILLE FILE: CDM 001 -94/C Recommendations: is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD -89 -95 be received; 2. THAT the application submitted by Kingscourt Residential Limited to convert the tenure of 18 rental townhouse units to condominium units be DENIED; 3. THAT a copy of PD -89 -95 be forwarded to the Region of Durham Planning Department; and, 4. THAT all interested parties listed in this report and any delegation be advised of Council's decision. 1. APPLICATION DETAILS 1.1 Applicant: Kingscourt Residential Limited 1.2 Agent: Dan Strike 1.3 Proposal: To convert the tenure of 18 three bedroom townhouse units from rental to condominium units 1.4 Site Area: 0.213 hectares (0.53 acres) 2. LOCATION 2.1 Kingscourt Residential Limited owns 18 three bedroom townhouse rental units on a 0.665 ha (1.64 ac) parcel at 1 -37 Kingscourt Road. The property in legal terms is known as Part Lot 10, Concession 1, in the former Town of Bowmanville. 3. BACKGROUND 3.1 On August 11, 1994, the Planning Department received an ....2 5 011 REPORT NO. PD -89 -95 PAGE 2 application from Mr. Dan Strike submitted on behalf of Kingscourt Residential Limited to convert the tenure of 18 three bedroom townhouse dwellings from rental to condominium units. The application is submitted under the Rental Housing Protection Act and the Condominium Act and requires approval by Council. This application represents the first of its kind in this Municipality. 3.2 A Public Meeting was held on October 17, 1994 to solicit input from the existing tenants as well as the public. No written submissions were received either in opposition to or in support of the application. One resident expressed concern at the public meeting over the absence of fire walls between the dwelling units and sought clarification whether this issue would be addressed through the approval process. No one spoke in support of the application. The agent appeared on behalf of the applicant to answer questions. 4. EXISTING AND SURROUNDING USES 4.1 Existing Uses: Residential 4.2 Surrounding Uses: East: Vacant land North: Vacant land West: Vincent Massey Public School South: Residential and commercial 5. OFFICIAL PLAN POLICIES 5.1 Within the existing 1991 Durham Region Official Plan and the Official Plan of the former Town of Newcastle, the subject lands are designated for residential uses. The existing development conforms with the relevant land use policies. 5.2 Section 4.3.5 of the 1991 Durham Regional Official Plan provides policies with regards to the conversion of rental properties for ....3 592 REPORT NO. PD -89 -95 PAGE 3 condominium purposes. Conversions may be permitted provided that the following criteria are satisfied: • the rental vacancy rate for the whole of the Region is 3.0% or higher for two successive surveys, as determined in the bi- annual rental vacancy survey undertaken by the Canada Mortgage and Housing Corporation (CMHC), or by a survey prepared by the Region's Planning Department in the absence of CMHC figures; • the rental vacancy rate, as determined by the CMHC bi- annual rental vacancy survey for two successive surveys, or by the Region's Planning Department in the absence of CMHC figures, is 3.0% or higher within the Municipality of Clarington; and, • the approval of such conversions to condominium tenure does not result in the reduction of the vacancy rate below 3.0 %, in accordance with the above - mentioned criteria. 5.3 Since the application for conversion was filed with the Municipality, the applicant has been unable to provide the Durham Region Planning Department with two consecutive CMHC bi- annual rental vacancy surveys where the vacancy rate has been in excess of 3.0% as required by the Regional Plan. The initial rental survey in April 1994 indicated a 0% vacancy rate for three bedroom dwelling units and a 5.1% overall vacancy rate for all dwelling unit types. The subsequent survey in October 1994 indicated a 0% vacancy rate for three bedroom dwelling units and a 1.6% overall vacancy rate for all dwelling unit types. As the application does not conform with the Regional Plan policies, the Regional Planning Department in its letter dated March 22, 1995 advised that the condominium conversion application cannot be supported. 6. ZONING BY -LAW COMPLIANCE 6.1 The subject lands are currently zoned "Urban Residential Type Three (R3)" which permits this townhouse development. ....4 5 3 REPORT NO. PD -89 -95 PAGE 4 7.1 Pursuant to the requirements of the Rental Housing Protection Act and the Condominium Act, an appropriate Notice of Public Meeting advertisement acknowledging the conversion application was placed in the Canadian Statesman and the Clarington Independent. The required notice was also mailed to all existing tenants of the rental property, the applicant and the agent. 7.2 As of the writing of this report, no written submissions or inquiries have been received. B. AGENCY COMMENTS 8.1 The application was circulated jointly by the Clerks and Planning and Development Departments to solicit comments from other relevant agencies. The Municipality of Clarington Fire Department and the Municipality of Clarington Building Division have no objections to the application. 8.2 The Ministry of Housing through their Rental Housing Protection Program provided comments on the application. The Land Use Planning for Housing Policy Statement - 1992 Bulletin (LUPHPS) defines an affordable rent in the Housing Region which includes the Municipality of Clarington as $1,000 or less. The existing rents within these units of $755 /month are viewed as affordable by the Ministry. The 1992 Information Bulletin to LUPHPS identified an affordable purchase price within the Municipality as $168,000 or less. The applicant has indicated that the suggested condominium unit sale price of approximately $75,000. These estimated selling prices would qualify within the Ministry's affordability guidelines. 8.3 Section 8.(1) of the Regulation under the Rental Housing Protection Act (O.R. 524/94) states:,, ....5 5�4 REPORT NO. PD -89 -95 PAGE 5 8.(1) The Council of a municipality shall not approve an application under the Act unless the Council is satisfied that at least one of the criteria is met: 1. Council finds that, a) a rental property for which an application is made for demolition is structurally unsound, or b) a rental property for which an application is made for renovation or repair is structurally unsound at the time of the application and will continue to be structurally unsound if renovation or repair proposed by the applicant is not carried out and, in the case where tenants are in occupation of the unit, that vacant possession is required to effect the renovation or repair; or, 2. The applicant agrees, a) to provide the same number of new rental units in a similar rental range and in the same area as those as those for which approval is given; and, b) to provide rental accommodation in the same area of similar quality and rent, either in the new rental units or in other existing rental property, to any tenant who is required to give up possession of a rental unit as a result of the approval; or, 3. In the opinion of Council, the proposal does not adversely affect the supply of affordable rental housing in the municipality. The first approval criterion is irrelevant to this application. The second approval criterion does not appear to be applicable as the applicant has requested consideration under the third criterion. Should Council decide to approve the application, Council has ....6 505 REPORT NO. PD -89 -95 PAGE 6 the authority to impose reasonable conditions of approval under Section 11(7) of the Rental Housing Protection Act. Section 12 of the Act provides that conditions can be contained in an agreement between the Municipality and the applicant which can be registered on title and would be enforceable upon current owners or subsequent condominium purchasers. 9. STAFF COMMENTS 9.1 The applicant is required under the legislation to reveal the current rents paid by each tenant as well as the proposed selling prices of the units should the tenure conversion application be approved. Based on the information provided in the application, the average unit size is approximately 1,182 sq.ft. The amount of rent currently paid by each tenant on a monthly basis is $755.00. Further, the applicant proposes to sell each of the two storey, three bedroom townhouse dwelling units at approximately $75,000. The applicant does not propose any renovations, repairs or changes in conjunction with this application. However, they intend to provide some aesthetic upgrades to the property to improve its marketability. 9.2 There were comments which originated from a resident during the first Public Meeting regarding fire separation walls. It is the Department's opinion that a retrofitting of fire separation walls to these existing units would be very difficult. It is presumed that the construction met the Building Code of the day. It would be unreasonable to require the owner to upgrade the building to meet today's Code requirements given the fact that there is no change in the use of the building. 9.3 The applicant's agent advised Staff in July 1995 that the Region provided verbal comments to him that the application can be interpreted to conform to the Durham Region Official Plan as it complied with the CMHC vacancy rate at the time when the application was made in August 1994. However, the agent was ....7 506 REPORT NO. PD -89 -95 PAGE 7 unable to obtain written confirmation from the Region to refute its letter of March 22, 1995. As the application does not comply with the provisions of the Durham Regional Official, Staff can only rely on the written comments from the Region recommending that the Municipality DENY the application. 9.4 Should Council wish to approve the application under Section 4(1)(b) of the Rental Housing Protection Act and Section 50 of the Condominium Act, Staff suggest that such approval be subject to the conditions of approval as outlined in Attachment #1. Respectfully submitted, Reviewed by, Franklin Wu, M.C.I.P., R.P.P., W. H. Stockwell Director of Planning Chief Administrative and Development Officer RH *FW *cc Attachment # 1 - Condition of Final Approval for Condominium Conversion Attachment # 2 - Key Map Attachment # 3 - Site Plan August 23, 1995 Interested parties to be notified of Council and Committee's decision: Kingscourt Residential Limited 1200 Eglinton Avenue East Suite 707 Don Mills, Ontario M3C 1H9 Attn: Mr. Simon Johnson Christina Shaw Unit #1 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Linda Weston Unit #5 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 597 Strike Salmers & Furlong 38 King Street West P.O. Box 7 Bowmanville, Ontario L1C 3K8 Attn: Mr. Dan Strike Tammy Hawrychuk Unit #3 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Dan and Valerie Bowler Unit #7 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 REPORT NO. PD -89 -95 PAGE 8 Joe and Cathy Morrisey Unit #9 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Carl and Liana Smith Unit #15 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Paul and Valerie Bromell Unit #19 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Donald and Brigitte Unit #23 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Janet Ryan Unit #11 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 James and Kathleen Raine Unit #17 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Bruce and Jennifer Aaron Unit #21 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Potter Robert and Shirley Leal Unit #25 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 William and Ann Sutton Unit #27 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Penny Vermeulen Unit #31 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Leonard Glonet Unit #35 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 5�8 Brenda -Lee Ferguson Unit #29 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Cheryl Younge Unit #33 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 Chris Rossiter Unit #37 37 Kingscourt Road Bowmanville, Ontario L1C 2K7 CONDITIONS OF FINAL APPROVAL FOR CONDOMINIUM CONVERSION APPLICATION CDM 001 -94/C 1. The owner shall submit an application for a plan of condominium to the Region and an application for site plan approval to the Municipality. The owner agrees to enter into a site plan agreement with the Municipality to provide the following: a) improvements to the property including landscaping, fencing, garbage enclosure facilities, etc; b) the owner shall retain an architect or professional engineer to provide a cost estimate of required works and improvements for review and approval by the Planning and Development Department; c) appropriate securities for the said improvements shall be posted by the owner; and, d) the owner must pay all outstanding municipal taxes, if any, including all local improvement charges at the time of execution of the required agreements with the Municipality. 2. The owner shall have a report prepared by an architect or a professional engineer to the satisfaction of the Planning and Development Department which certifies that all units on the property comply with the property standards by -law based on an inspection of the interior and exterior of the property including plumbing, heating, electrical, fire safety and structural conditions. The report shall include a cost estimate of required works and improvements to the building for review and approval by the Municipality. A copy of this report shall be available to all potential purchasers. 3. The applicant shall enter into a condominium conversion agreement under Section 12 of the Rental Housing Protection Act with the Corporation of the Municipality of Clarington. Prior to entering into any agreements of purchase and sale for any of the proposed condominium units and prior to the registration of the condominium declaration and description, the owner shall: a) carry out the works as required under Condition 2. b) provide all existing tenants residing at 1 -37 Kingscourt Road with guaranteed tenancy agreements at present rental rates with similar conditions as currently enjoyed, subject to increases from time to time governed by the Residential Rent Regulation Act, for the following periods of time: 5 .99 tenants aged 65 years or more on the day the offer is made are permitted a further 5 year rental period from the date of condominium registration; and, all other tenants are permitted a further 2 year rental period from the date of condominium registration; c) provide all existing tenants residing at 1 -37 Kingscourt Road at least 10 days to review the offer of guaranteed tenancy and not to exert any pressure on existing tenants to vacate their units; d) only terminate the tenancy under the provisions of the Landlord and Tenant Act; e) provide guaranteed tenancy referred to in Section 3(a) to all new tenants for the balance of the guaranteed tenancy period; f) notify any new tenants that the building is subject to an application for condominium conversion; and, g) provide existing tenants with the first right of refusal on the purchase of units for a period of two years from the date of condominium registration, which first right terminates with the termination of the tenancy agreement. Where an offer to purchase is presented to a tenant, the tenant shall have a minimum period of 4 days to accept or reject the offer and a further 10 days to retract acceptance of an offer without penalty. The right of first refusal shall continue on units where the owner does not complete an offer of purchase and sale to a third party. 3. Prior to execution of the required site plan and condominium conversion agreements, the owner shall provide an affidavit to the Planning and Development Department certifying that all applicable conditions stated herein have been fulfilled. 4. All agreements shall be registered on title at the owner's expense. 5i 0 Attachment *2, i I H R u 110ERTY Rl CARLISLE WE. �A /y2 W (n RI-35 h� ffR3 EP . R1 H Ag I HUR T C> CJ 7 R4 MCRI-3 R1 CJ. s■■�= KING ���� :STREET IL �� ct cl N a R N EN ST. � R -5 - R1 -5 a Rl I BOWMANVILLE ;Z O IVI ;LLI V z O V R3 -T CDM 00 1 1�94/C �911 1: 3m] :: �� • � ,. I d N t N. 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