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 .
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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-
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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
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15 July 1991
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