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HomeMy WebLinkAboutFND-022-04 UNFINISHED BUSINESS C:lfll-!lJgton REPORT FINANCE DEPARTMENT Meeting: COUNCIL Date: MONDAY, SEPTEMBER 27,2003 Resolution #: C- Ij02'[,,( Report #: FND-022-04 File#: By-law #: Subject: COMPLAINT BY DOM'S AUTO PARTS COMPANY L TO. UNDER SECTION 20 OF THE DEVELOPMENT CHARGES ACT Recommendations: It is respectfully recommended to Council the following: 1. THAT Report FND-022-04 be received; 2. THAT staff be directed to process an amendment to the development charges by-law to exempt non-residential development in the case of demolition or fire consistent with the existing section 22(1) of By-Law 2000-108 pertaining to residential development; and 3. THAT Council direct that development charges collected in the amount of $3,589.65 from Dom's Auto Parts Company Ltd. be refunded pursuant to the decision to amend the development charges by-law. / ,/ ;.'/ Reviewed by\. ~~(-(,~ C~1t Franklin Wu, Chief Administrative Officer. NT/hjl REPORT NO.: FND-022-04 PAGE 2 BACKGROUND: At the Council meeting of September 13, 2004, Council held a hearing for a development charges complaint from Dom's Auto Parts Company Limited. The matter was referred to staff for a subsequent report. As Council is aware, Dam's Auto Parts Company Limited experienced a fire on their site. In the course of redevelopment of the site, a building permit was applied for to reconstruct a demolished building at 1604 Baseline Road West, Courtice. In conjunction with the building permit, development charges were applied to the applicant in the amount of $3,589.65 pursuant to the Municipality's development charges by-law. The applicant is exempt from Regional and Educational development charges pursuant to their respective by-laws. The applicant has appealed the imposition of the development charge by the Municipality. The circumstances of the case have been reviewed and the application of the charge has been determined to be correct as the current Municipal development charges by- law does not contain an exemption for a previously demolished building except in the case of a residential property. However, this results in the imposition of a development charge in the circumstance where the redevelopment is intended to replace a structure that previously existed. CONCLUSION: It is recommended that the development charges By-Law 2000-108 be amended in a fashion consistent with the existing section 22 pertaining to residential development, to allow an exemption for the redevelopment of land on which there was formerly a non- residential building that has been demolished. It is recommended that staff be directed to process an amendment as statutory requirements exist for amendments to development charges by-laws. In order to address this particular circumstance, it is also recommended that Council direct that the development charges be refunded to Dam's Auto Parts Company Limited. Attachment "A": Complaint from Dom's Auto Parts Company Ltd. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 n7J. ,-/.~. --.. ,',' .'J. '-" -"", '.' ~/ o'm. ..;. "_--.:-(.t(-(-- a')-'U.- v, C"L I l!:om"?ZaJldl ~t/J}u.tea / G' Attachment "A" 1604 BASELINE ROAD WEST COURTlCE. ONTARIO LIE 2S5 Toronto 416-222.7430 . Oshawa 905-434-4566 . Fax 905.434-7997 . }.800.481-7272 Email - sales@domsauto.com . Website ~ www.domsauto.com The Corporation of the Municipality ofClarington 40 Temperance Street Bowmanville, ON LlC 3A6 '0l1JUL23 F':"j 2:22:q~ Attention: Ms .P. Barrie, Town Clerk Dear Ms. Barrie: Re: Development Charges Complaint J 604 BaselineRd. W. (Hereinafter the "Property") The MunicipalityofClarington (Hereinafter the "Town") Dom's Auto Parts Company Limited respectfully submits that staff at the Town has incorrectly applied the calculation of development charges with respect to the redevelopment of the Property. In particular. staff has imposed development charges with respect to the reconstruction of a building that was previously demolishedwithout applying any credit towards the charges payable for the gross floor area ofthe structure that was replaced. We have 'received confinnation from the school boards and the Regional Municipality of Durham that development charges are not payable with respect to this first phase of redevelopment of the Property as the structure, which is being constructed, is intended to replace a structure that previously existed. As a result of this development, no additional need for services will arise. The TO\vn's development charges by-law provides that the definition of "development" includes redevelopment. It is our respectful submission that the current situation should be regarded as a "redevelopment"'in that the ne,z'structure. which is, be constructec;l is intended to replace a fonner structure that was destroyed in a fire. The 'redevelopment of the Property does not result in any increased need fof' serVices and as such there are no additional costs to the Town arising from the constru~tion or servicing towards the replacement gross floor area being constructed. Section 23 ofthe Town's development charges by-law further provides that: The development of an industrial building. the development of the industrial portion(.v) of all/fred-use building, or the del'elopment of an existing industrial building hy the enlargement of/he gr"fs floor area thereof are exempt from development charges imposed hy the By-law. We resp~ctfully submit that the given the definition of development and the exemption provided in section 23. that no development charges should have been payable with respect to this phase of development of the Property. Itis our view that the reconstruction/replacement of the building with a new building is no different than an enlargement or redevelopment of an industrial building in that noadditionafneedfor services has been createc;l. . . . On May 31st we paid a total of$3500.69 on account of development charges to the Town and respectfully submit tnat this amount was improperly calculated in that the developm"nt should have been exempt from the payment of development charges. We request an opportunity to make representations to Council with regards to our complaint and look forward to receipt from your office as to the date and time when Council will be dealing with our complaint. Sin~ ~ ~ ::> Dominic Vetere Secretary Treasurer Dom's Auto Parts Company Limited