HomeMy WebLinkAboutPD-328-89 �jl(,�'"°", .,c•-�, TOWN OF NEWCASTLE
REPORT DN: Fi1Wx—T �
Res. #
By-Law #
METING: General Purpose and Administration Committee
DATE: December 4, 1989
REPORT #: PD-328-89 FILE #: PLN 23 . 8
SUBJECT: COMMERCIAL CONCENTRATION TAX
ON MUNICIPAL PARKING FACILITIES
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report PD-328-89 be received;
2 . THAT the following parking rates be approved and be effective
commencing January 1, 1990 or upon the necessary adjustment
be made to all parking meters;
a) All municipal parking meter rates be adjusted to
50 cents an hour or portion thereof.
b) Municipal parking lot monthly pass be adjusted to
$50. per month.
1. BACKGROUND:
The Treasurer of Ontario announced in his Budget of May 17,
1989 that a new Commercial Concentration Tax will be
implemented for all municipalities within the Greater Toronto
Area effective January 1, 1990 .
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REPORT NO. : PD-328-89 PAGE 2
2 . Council, by resolution passed October 16, 1989, resolved to
petition the Treasurer of Ontario for exemption from the
commercial concentration tax on all municipal parking lots.
Staff anticipate Bill 46 will become law shortly.
Under Bill 46, municipal owned and/or operated parking
facilities are subject to an annual tax of One Dollar ($1. 00)
per square foot parking spaces .
2 . FINANCIAL IMPLICATION:
2 . 1 The Town of Newcastle currently operates the Silver Street
(Lease Agreement) and Church and Division Streets parking lots
and have a combined parking space of 49,601 sq. ft. broken down
as follows:
Silver Street 8,487 sq. ft.
Church & Division (south lot) 23,433 sq. ft.
Church & Division (north lot) 17,681 sq. ft.
2 .2 Since the commercial concentration tax is based on a rate of
$1. 00 per sq. ft. , the total tax payable to the Province in
1990 will be $49,601.
2 . 3 Revenue collected from parking metres and permits for these
parking lots in 1988 was $48,852 . We estimate the 1989
revenue will be approximately the same since there has not
been an increase in parking rates for the past two (2) years .
2 .4 The net effect of the commercial concentration tax of $49 ,601.
will consume all of the parking revenue and more. In order
to recover this amount and not subject the Town to any
financial loss, we must examine various means to recover the
tax.
. . . 3
599 4G
REPORT NO. : PD-328 -89 PAGE 3
3 . PROPOSED CHANGES:
3 . 1 Increase in Parking Meter Rates
The current parking meter rate be increased from 25 cents to
50 cents per hour. This would generate an additional revenue
of approximately $45,000 .
3.2 Increase in Parking Permit
The Town currently sells monthly parking permits to private
citizens who use the Town's parking lots. The current rate
is $32 . /month, and Staff is suggesting this rate be increase
to $50 . /month. Based on approximately 250 permits issued in
one year, this increase will generate $4,500 .
3 . 3 The combination of the above user fee increases will generate
additional revenue of $49,500. which should compensate for the
commercial concentration tax.
4 . COIWMENTS:
4 . 1 Staff examined the approaches used in other municipalities in
reaction to the commercial concentration tax and it appears
most municipalities are raising their user fee for municipal
parking lots and parking meters to offset the cost.
4 . 2 Staff also examined the idea contemplated by Whitby Council
to offer free parking in its municipal parking lots and
recover the loss of revenue through increases in all on-street
parking meters to $1.00 per hour. The rationale is that if
the municipality does not charge a fee for usage in parking
lots, it would not be subject to commercial concentration tax.
Staff do not feel this approach is feasible for the Town.
Firstly, we feel that it would be only a matter of time that
599 41
REPORT NO. : PD-328-89 PAGE 4
the Province will find a way to counter whatever creative
methods invented by the municipality. Secondly, raising
substantial street parking meter rates would not be conducive
to promote shopping in the downtown area.
4 . 3 The proposed increase of the Town parking meter from 25 cents
to 50 cents an hour plus increase in monthly parking passes
are considered sufficient to cover the extra tax, and it's a
fair way to pass on the financial burden to the users .
4 .4 It should be noted that the effect of the commercial
concentration tax will hamper any attempt by any municipal
government to provide more downtown parking lots or construct
parking garages . Council has earlier directed Staff to review
the parking situation in the downtown Bowmanville area. It
is Staff's submission that the current parking facilities,
both on and off street are adequate at the present time.
However, it would not be prudent for the Town to get involved
in building any parking facilities as long as this commercial
concentration tax is in place. To ensure there will be
sufficient parking in the future, Staff will ensure that all
development or redevelopment proposals in the Bowmanville
downtown area will have adequate on-site parking to meet the
needs of their specific proposals .
4 .5 Staff met with representatives from the Bowmanville B. I.A. to
review the proposed fee increase and they are in agreement
with the recommendations contained herein. The B.I .A.
representatives also suggested the Town takes out an
advertisement in the local newspaper to advise the residents
of the reason for increase. Staff will implement this
suggestion as soon as the parking meters are adjusted.
. . .5
REPORT NO. : PD-328 -89 PAGE 5
Respectfully submitted, Recommended for presentation
to the Committee
Franklin Wu, M.C. I .P. Lawrence. Kotseff, M.C. I.P.
Director of Planning Chief Am4nistrative Officer
and Development
FW*jip
November 22, 1989
CC: Mr. George Webster
Bowmanville B. I .A.
P.O. Box 365
BOWMANVILLE, Ontario
L1C 3L1
43