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Home My WebLink AboutPD-177-91 VX THE CORPORATION OF THE TOWN OF NEWCASTLE DN:BONUSING.GPA REPORT Meeting: General Purpose and Administration Committee File# 4b8.2oa8.Du Date: Monday, July 22, 1991 Res. # Report#: PD-177-91 File #: Pln 1. 1 By-Law# Subject: TOWN OF NEWCASTLE OFFICIAL PLAN BONUSING PROVISIONS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD-177-91 be received for information. 1. BACKGROUND 1. 1 At its meeting of July 8, 1991, the General Purpose and Administration Committee directed staff to review and clarify the bonusing provision of the Town's Official Plan. 1 .2 Specifically Section 6 .5.2 .2 (x) , Subsection e) of the Town of Newcastle Official Plan which states that: "Notwithstanding Section 6 .5 .2 .2 (x) (c) , and in accordance with Section 6 .5. 2 .2 (iv) , Council may pass by-laws to increase the maximum density up to a floor space index of 1. 25 and a maximum height of seven storeys provided that the owner enters into an agreement with the Town of Newcastle which provides for one or a combination of the following facilities, services and matters : a non-profit or co-operative housing component; dedicated space which is to be completed with interior finishes required for community service use as a day- care centre, a senior citizen's centre or similar uses deemed appropriate by Council for a term of up to 99 years and not less than 25 years; and that the developer enter into an agreement with the Town of Newcastle with respect to the value of new construction of the project, including landscaping, parking and on-site amenities, for the purpose of PAI-EPER R1. R .l$ 1_ R u.1s 1r,v4 R1EY_R'WR REPORT NO. : PD-177-91 PAGE 2 public improvements to the Courtice streetscape or the development of valley land trail systems . " 1.2 Town staff have considered the use of "bonusing" in two planning studies presented to Council in the past year. These are: Courtice West Highway No. 2 Corridor Study Bowmanville Waterfront Study The use of "bonusing" refers to density incentives to secure, a public objective. This is governed by Section 36 of the Planning Act which states as follows: 1136 .-( 1) The council of a local municipality may, in a by- law passed under section 34, authorize increases in the height and density of development otherwise permitted by the by-law that will be permitted in return for the provision of such facilities, services or matters as are set out in the by- law. " 1.3 With the introduction of the new Planning Act in 1983, Section 36 provided planning authorities with the ability to utilize this zoning tool as an incentive mechanism to accomplish some specific objectives . That is, Council could approve a higher density and/or building height to a proposed development and in return, would have the legitimate authority to ask. the developer to provide specific facilities and/or monies for the public good. This bonus would be defined in general terms in the official Plan and subject to negotiation with the developer as to the type and value of service/facility to be provided. With this sort of incentive, the public would recover some of the "windfall" going to the private landowner. 1.4 Some municipalities in Ontario have utilized Section 36 of the Planning Act for a number of years with mixed success . C; q REPORT NO. : PD-177-91 PAGE 3 The City of Toronto, in particular, has utilized the "bonusing" provisions extensively for such matters as : Assisted Housing Heritage Preservation Non-profit Community Facilities Parks and Open Space beyond the Planning Act requirements Significant pedestrian connections (underground) 1. 5 It should be noted that the "bonusing" provision in the Town's Official Plan is merely a planning tool, and it does not imply or give any approval to density increase or decrease in building height. Proponent for development has to apply for it, and each case is subject to public meeting similar to a rezoning application and Council has the power to deny any request made under Section 36 of the Planning Act. 2. COURTICE WEST HIGHWAY NO. 2 CORRIDOR STUDY 2 . 1 In reviewing the problems and opportunities in the Courtice West Highway No. 2 Corridor Area, staff saw the possibility of utilizing the Section 36 provisions to achieve some of the objectives for this area. For the focal node identified for the Varcoe Road/Darlington Blvd. intersection, a mixed- use (residential/commercial) area was identified and designated in the Town of Newcastle Official Plan and the Courtice West Neighbourhood Plan. A base level of uses was identified. The base density was established at a floor space index (f.s . i. ) of 0 . 85 . Floor Space Index refers to the ratio of building floor area to the lot area. A base height limitation of 5 storeys was also established. REPORT NO. : PD-177-91 -PAGE 4 2 .2 The Town's Official Plan permits Council the discretion to "bonus" the lands in this area to a maximum f.s . i. of 1.25 and a maximum height of 7 storeys . The bonusing can be considered for three purposes only: a) the provision of non-profit or co-operative housing component to providers at below market value; b) dedication of space for municipal use such as a day care centre, senior citizens centre or other uses deemed appropriate by Council; c) payment of capital funds to the municipality for streetscape or valleyland improvements . All of these options or any combination would be subject to careful review, both of the value of the public benefit and the anticipated impacts of .such density bonuses . Furthermore, the applicant has to file an application for bonusing under Section 36 of the Planning Act and Council has absolute power in either denying or approving the bonusing application. 2 . 3 It is also noteworthy that while Council has traditionally measured density in terms of "units per hectare" , for mixed- use buildings the use of a floor space index is most appropriate. Staff have also added height limitations in the Official Plan since it is the "height" of a building, not necessarily the "density" which abutting residents find objectionable. Formerly, the Rosebridge-Newcastle proposal was for 125 residential units in a 15 storey tower. The current proposal would see 110 residential units in a 5 storey building. REPORT NO. : PD-177-91 PAGE 5 2 .4 The successfully implementation of the bonusing provisions is dependent upon ensuring there is appropriate lower and upper limits to the density incentive to encourage the landowner to consider this option while at the same time ensuring that the surrounding lands are not detrimentally affected. On the basis of the two proposals under review at the present time, (Rosebridge-Newcastle Inc . and Aloise Construction) , the applicants did not submit any bonusing application with the Town. 3. DRAFT PORT DARLINGTON SECONDARY PLAN 3 . 1 The draft Port Darlington Secondary Plan also includes bonusing provisions under Section 36 of the Planning Act. The draft policy 2 .4 .2 .2 would enable Council to consider density increases for the following purposes: designation of additional land above the land dedication requirements under the Planning Act development, enhancement or improvement to waterfront and valleyland areas provision of major community recreation facilities within or outside of the Secondary Planning Area. 3 .2 The consultant for the Bowmanville Waterfront Study and Town staff are currently reviewing the draft secondary plan with a view to bringing a recommendation forward in the fall. At this time, it is not known whether staff will be recommending the use of Section 36 in the recommended plan. REPORT NO. : PD-177-91 PAGE 6 4. CONCLUSIONS 4 . 1 In general, the Town has three general ways of achieving the provision of facilities, services and other matters deemed appropriate: 1) direct tax expenditure; 2) exactions (levies and requirements of the planning process) ; and/or 3) density bonuses The latter two are dependent on development occurring and offer to secure public benefits without direct public expenditure. The use of density bonuses is new to the Town of Newcastle. 4 .2 It is staff's opinion that the use of Section 36 of the Planning Act could provide a viable option for providing certain public facilities and services to the residents of the Town. It remains to be seen, however, if development interests see this as desirable and viable in the context of the Town of Newcastle. Certainly, it would have limited application, Central Areas and waterfronts being the two primary areas for consideration. Respectfully submitted, Recommended for presentation to the Committee Franklin Wu, M.C. I .P. Lawrence Kotseff Director of Planning Chief A i istrative and Development Officer DC*FW*df *Attach 15 July 1991 k) ,j