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HomeMy WebLinkAboutPD-168-91 THE CORPORATION OF THE TOWN OF NEWCASTLE DN: LEVY.GPA REPORT A. Meeting: General Purpose and Administration Committee File# F21• Date: Monday, July 22, 1991 Res. # By-Law# Report#: PD-168-9l File #: PLN 20 . 1 Subject: DEVELOPMENT CHARGE POLICY REPORT PREPARED BY C.N. WATSON & ASSOCIATES LTD. Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD-168-91 be received; 2 . THAT the Development Charge Policy Report prepared by C.N. Watson and Associates Ltd. be received; 3 . THAT pursuant to the provisions and regulations made under the Development Charges Act, Staff be authorized to give notice of a public meeting of Council to be held on September 9 , 1991 at 9 :30 a.m. ; 4 . THAT a copy of the Development Charge Policy Report and Report PD-168-91 and the decision of Council be forwarded to the Urban Development Institute, the Toronto Home Builders Association and the Durham Home Builders Association; and 5 . THAT a charge of $30 . 00 be applied to any person who wishes to purchase a copy of the Development Charge Policy Report. 1. BACKGROUND: 1 . 1 The Development Charges Act 1989 was passed by the Legislature and received subsequent Royal Assent on November 23, 1989 . This legislation is the first major attempt by the Provincial Government to set out the principles and general framework within which municipalities can assess development charges (lot levies) to finance growth related capital expenditures . 2 "ECY"LLD A Ell, PA-li nPE CPYIC 1E Ill.4s rNmEO 14 R_'_"'M REPORT NO. : PD-168-91 PAGE 2 1.2 The Development Charges Act 1989 is a complex piece of legislation that has very significant implications for municipalities in the area of municipal financing of capital services which are necessary to accommodate development. The Act establishes a sunset day on which the Town's current lot levy policy will terminate on November 23, 1991 unless a development charge by-law is passed sooner. After November 23, 1991 if a development charge by-law has not been passed, the Town will be prohibited from imposing lot levies . A development charge can only be imposed by By-law passed under The Act. 1 . 3 The methodology of establishing municipal standards, determining future municipal capital works, services and facilities, apportioning the appropriate costs to new development, plus all other matters raised in the Development Charge Act 1989, all of which requires comprehensive understanding and thorough review and analysis . In this regard, senior staff and the Town's solicitor have worked closely with the consulting firm of C.N. Watson and Associates throughout the study process . 1.4 The consultant has now completed a draft document that should be made available to the public for their comment. The Act require a Public Meeting before a development charge by-law can be passed. The Consultant's Report will provide information necessary to enable the public to understand generally the development charges proposal. A copy of the Report has been forwarded to Members of Council under separate cover. . . . 3 REPORT NO. : PD-168-91 PAGE 3 2. GENERAL COMMENTS: 2 . 1 The executive summary contained in the Consultant's Report provides many recommendations. It should be pointed out that these recommendations are presented at this time for discussion purposes and to solicit input from the public. Final recommendations from Staff will be forthcoming in a report to be presented to Council on September 30, 1991. 2 .2 The Consultant's Report does not deal with educational levy which is to be addressed by the Boards of Education. 2 . 3 With respect to hydro electric levy, the Newcastle Hydro Electric Commission has retained the consulting firm of C.N. Watson and Associates to determine the amount of levy. A copy of the Consultant's Report has been forwarded to Members of Council under separate cover and will be made available to the public for inspection. 3. PUBLIC CONSULTATION 3 . 1 Subsequent to the General Purpose and Administration Committee consideration of this Report, a copy of the Development Charge Policy Report will be available for inspection by the public at the Clerk's Department. In addition a copy will be deposited at each local library for public inspection. Members of the media will be provided a copy. For any individual or group who wish to purchase a copy, the cost of $30 . 00 will be applied to offset the cost of printing and reproduction. 3 .2 The public and interested groups are encouraged to make submissions to the Town. All written submissions must be submitted to the Town Clerk by September 9, 1991. Verbal submission will be heard at the public meeting to be held on September, 9, 1991. . . .4 REPORT NO. : PD-168-91 PAGE 4 3 . 3 Key dates leading up to the passage of the new Development Charge By-law are as follows: a) July 22 , 1991 Authorization to seek public input and submission b) July 29-Aug. 2/91 Notice of Public Meeting advertised c) Sept. 9, 1991 Public Meeting and Deadline for all written submissions d) Sept. 11, 1991 Advertise GPA and Council at which by-law to be considered e) Sept. 23, 1991 Report and by-law to be considered by Committee f) Sept. 30, 1991 Report of Committee and by-law to be considered by Council 4. SUMMARY OF KEY ELEMENTS OF THE DEVELOPMENT CHARGES ACT 4 . 1 Part I (Development Charges) Municipalities may pass by-laws to impose a development charge on all forms of development including the passing of a Zoning By-law, approval of a minor variance, subdivision/condominium, consent approval, and the issuance of a building permit. The Act contains credit provisions that in effect preclude double-charging of a development charge. Mandatory and optional exemptions are detailed. Optional exemptions include institutions and affordable housing. The requirements of subdivision agreements executed before the passing of a development charge by-law continue in effect, notwithstanding the passing of a development charge by-law and the occurrence of November 23, 1991. . . .5 REPORT NO. : PD-168-91 PAGE 5 Local services which are installed by the person developing the land cannot be included in a development charge. Mandatory procedures must be followed before passing a development charge by-law. A development charge by-law may be appealed to the Ontario Municipal Board. A development charge by-law expires after 5 years . New by- laws can be passed before this occurs . A development charge by-law may also be amended by following the same procedures. Property owners may complain to municipal Councils regarding errors in application of the development charge by-law and may appeal Council decisions to the Ontario Municipal Board. Municipalities may permit owners to provide services in lieu of paying a development charge. Municipal and Educational Development charges will be collected by the Town. The Act establishes detailed payment and accounting requirements . Unpaid development charges are to be added to the municipal tax roll and collected as taxes . The Town will be required to place development charge revenues in a separate reserve fund. 4 .2 Part II (Front-end Paymentl Municipalities may enter into agreements with an owner(s) who wish to accelerate development of his (their) lands . The owner(s) shall pay for the provision of services up- . . .6 C; nC1 REPORT NO. : PD-168-91 PAGE 6 front and be subsequently reimbursed by the municipality when it collects development charges from future benefitting owners . Owners within the benefitting area are to be given notice of front-end agreements and to be permitted to appeal them to the Ontario Municipal Board. The owners of land benefitting from services installed under the agreements are required to pay the cost of the front- ended service allocated to them in addition to the normal development charge imposed by the development charge by- law. 4 .3 Part IV (General) Existing by-laws and resolutions providing for development charges are to terminate no later than November 23, 1991 unless replaced by a Development Charge By-law before that date. No new lot levies may be imposed under the Planning Act, 1983 thereafter. Agreements under the subdivision and consent provisions of the Planning Act, 1983, are not affected by this legislation, except as those agreements apply to charges related to development. 5 . CONCLUSION: The key elements of the Development Charge Act are highlighted above. These elements and other provisions of the Act were taken into account by the Consultant in the preparation of the Development Charge Policy Report. As stated previously, this Development Charge Policy Report and . . .7 REPORT NO. : PD-168-91 PAGE 7 the recommendations contained therein are for the purpose of public consultation. Final recommendations and the Development Charge By-law will be presented to the General Purpose and Administration Committee for consideration at its meeting of September 23, 1991 and to Council at its meeting of September 30, 1991 . Respectfully submitted, Recommended for presentation to the Committee Franklin Wu, M.C. I .P. Lawrence/ E,I Kotseff Director of Planning Chief Acymi' istrative and Development Officer FW*jip 15 July 1991 r J i