HomeMy WebLinkAboutTM-85-79 TM-85-79
To: His Wouhip the Mayon and ffi-mbe,,Ls o6 Councit
FROM: A. C. GuiZeA, Town ManageA
DATE: Juty 20th., 1979
SUBJECT: Report to Councit on the H"tmy o� the CouAtice
Heights Development
The dot towing nepont ,is the vaba,2 ,epot,t given to a Speciot
Meeting o4 Councit on Juty 20th, 1979.
Recommendation: Receive /ok Zn�oAmat on.
1. O.H.A.P. Agreements were negotiated with the Minister of Housing and
signed on March 11th, 1977.
First Agreements provided a grant to the Municipality which was
determined on the basis of family incomes. The first half of which
was conditional on draft plan approval of the two subdivisions which
amount to $249,000. The second 50o was to be payable to the Town on
issuance of building permits provided those permits were issued on or
before March 31st, 1978.
The Municipality tried to secure the second 50o from the Ministry of
Housing, but no extensions were granted to the March 31st, 1978 deadline,
and the municipality would be allowed to retain the $249,000 already
received providing that a Subdivision Agreement was signed 30 days after
the O.M.B. had approved the two plans for draft approval and the appropriate
Zoning By-laws. The Subdivision Agreements were prepared in this time
frame and signed on July 6th, 1978.
The $249,000 was set aside in a separate Reserve Account.
Second Agreement - provided the Town with an interest free loan to assist
in payment of the project described in Schedule "B" of the Agreement.
These interest free loans were to be received by the Municipality on the
following basis:
North Subdivision
Construction. . . . . . . . . . . . . . . . . .$62,340
Land, Survey & Legal. . . . . . . . . . 14,490
Total estimated project cost. . . . . . . . . . . .$ 76,830
South Subdivision
Construction. . . . . . . . . . . . . . . . .$182,520
Land, Survey & Legal. . . . . . . . . 79,850
Total estimated project cost. . . . . . . . . . . .$262,370
Total estimated gross project cost. . . . . .$339,200
from which they deducted $56,500 as C.M.H.C. grant estimate.
Total estimated loan from the Minister $339,200 less C.M.H.C. grant of
$56,500 = $282,700
(1)
f
Question No. 1 - To O.H.A.P. Representative
Is the C.M.H.C. Grants still available for the Program?
Under the agreement Section 2(1) on Page 3 the Town has agreed as follows: -
112. (1) The Town shall cause the project described in
Schedule B to be designed and constructed with
sufficient capacity to service the Land in
accordance with good engineering practice.
(2) The Town shall cause construction of the project
described in Schedule B to be completed, as far
as may be practicable, in sufficient time to permit
the Developer to fulfill its obligations under the
Developer's agreement and to continue in appropriate
stages until completion.
(3) The Town shall provide the Minister with evidence
of Ontario Municipal Board approval of the project
described in Schedule B and of approval to borrow
and repay the loan amount set out in Schedule B.
(4) The Town shall in consultation and concert with
such other authorities as may be deemed necessary
and appropriate, endeavour to expedite the granting
of all planning approvals and the passing of any by-laws,
and generally do everything within its jurisdictions
to enable the Developer to fulfill its obligations
under the Developer's agreement and to proceed with
the development of the land. "
This agreement also provides for a repayment schedule requiring all monies
loaned to the municipality are to be repaid in full within five years of
the money being advanced by the Minister.
The agreement also provides that the municipality must receive Ontario
Municipal Board approval in accordance with Section 1(1) .
111 . (1) The Minister shall advance only such parts of
the moneys on the loan from time to time as
have been approved by order of the Ontario
Municipal Board for the said projects pursuant
to the Ontario Municipal Board Act."
(2)
� I
111. (3) The Minister may consider a request from the Town
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for an adjustment in the amount of the loan to
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reflect more_closely_the_cost_of_constructiona"
Section 1. (3) of the agreement provides for a possible adjustment in
the amount of the loan to reflect more closely the cost of construction
and this Section raised the following questions to the O.H.A.P. representative.
Question No. 2
How does your Ministry interpret the words "may consider"
given a significant increase in the estimated project
cost?
SUBDIVISION AGREEMENTS
The Subdivision Agreements follow the standard form that members of Council
are familiar with and a copy of both Subdivision Agreements are provided
for you to follow the conversation.
For the purpose of the meeting we would like to review two schedules in
each agreement. Those are Schedule "D" Levies and Schedule "B" External
Works. To make our discussion easier to follow we have set out the financing
in the Schedule which is being passed out to you now.
As you will note on the summary page
- Total levies to be derived are. . . . . . .$1,576,500
- Other Revenues. . . . . . . . . . . . . . . . . . . . . . .$ 249,000
- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,825,500
Based on conservation cost estimates for construction and land costs for
the provision of external services, roads and storm drainage works up to
1979 the total estimated cost to the Town will be $1,357,263., leaving us
with an estimated amount of $468,237 for other Municipal Capital costs which
would be associated with the development e.g. development of a� rks.
The phases of the payment of development levies was designed initially to
provide for the repayment of the O.H.A.P. loans over the five year repayment
schedule as specified in the O.H.A.P. agreement and to provide the Municipality
with the funds to carry out the necessary construction of external roads.
This was to coincide with the development of the Subdivisions.
(3)
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STORM WATER MANAGEMENT PROGRAM
A Storm Water Management Study was requested by C.L.O.C.A. in 1977.
In 1977-78 the Sernas concept was approved by the Municipal Board as per
the following statement made by Blain in his decision.
"the schemes for storm water management presented
to the Board were conceptual in nature, and the
final design is to be worked out and forwarded to
the applicable agencies for approval, after draft
approval is granted. The Board is satisfied that
additional run-off into Farewell Creek can be
accommodated with appropriate erosion control
measures. The matter of acquiring lands outside
the subdivisions to implement a storm water management
scheme is the responsibility of the Town of Newcastle."
The Conservation Authority had previously approved the Sernas Storm Water
Management concept.
In discussion with R. Patchel of Totten, Sims $ Hubicki the Planning Director
was advised that it is possible to accept the Storm Water Management scheme
prepared by M. Sernas & Associates as a "given" in the preparation of the
overall Storm Water Drainage Plan for Courtice.
It is also understood that if we accept the Sernas proposal that one of two
things could happen. Firstly, the study may show there could be a reduction
in land requirements for the Sernas proposal. Secondly, it could how that
by accepting the Sernas proposal the municipality may incur greater costs in
trying to fit other drainage works into the Sernas Proposal.
Question No. 3
Is the Town satisfied that the Sernas Drainage Concept
will adequately control Storm Water and Surface Run Off
in the Courtice Drainage Area?
If Council is of the opinion that the Sernas Concept is satisfactory then it
is appropriate for Council to pass the resolution prepared by the Town
Solicitor to expropriate the necessary storm water easements.
(4)
In any case the Town should immediately undertake the preparation of
Storm Water Management Plan for the Courtice Drainage Area. It would
be appropriate for Council to request by Resolution the Conservation
Authority to initiate a project .to fund 550 of the Study and the Town
of Newcastle agree to bear the other 45% as the benefiting municipality.
If Council is in agreement with the Sernas proposal then no further
action is required on the Planning Director's report other then the
implementation of the Storm Drainage Study.
(5)
SUMMARY OF SCHEDULES A & B
1979
Total Total Revenue
Revenues Other Estimated Minus
"Levies" Revenues Town Cost Costs
North Subdivision 18T76048 $ 438 , 000 $ 356, 139
123, 196 ($ 41 ,335).
South Subdivision 18T76027 $1,138,500 $ 395,644
407,284 $ 335,572
O.H.A.P. Agreement No . 1 $249, 000 $ 75,000 $ 174, 000
$1 ,576 ,500 $249,000 $1 ,357,263 $ 468 ,237
A-T
"SOUTH SUBDIVISION" 18T-76027
Total levies to be derived as set out in Schedule "D" is $1,138,500.00 which represents
759 units x $1,500.
SCHEDULE "P"
1) External Road Systems 1978 Estimates 1979 Estimates
Trull 's Road South
Total Cost Town Share Developer Share
Construction $411,340 $317,675 $ 93,665 $452,474
Engineering 4
Cont. 61,700 47,650 14,050 67,870
$473,040 $365,325 $107,715 $520,344
Prestonvale Road South
Total Cost Town Share Developer Share
Construction $348,460 $307,850 $40,610 $383,306
Engineering &
Cont. 52,269 46,177 6,092 5711'496
$400,729 $354,027 $46,702 $440,802
TOTAL EXTERNAL
ROAD COSTS $873,769 $719,352 $154,417 $961,146
Town Share. . . . . . . .$791,287
Developer Share. . . 169,859
$961,146
Total Preliminary Cost Estimate
Based on a 10% Increase for one year.
A-2
Town Share External Road Costs
Based on 1979 Preliminary Cost Estimate. . . . . . . .$791,287.
Less: M.T.C. Subsidy 50%. . . . . . . . . . . . . . . . . . . . . . . 395,643
Net Estimated Cost to Town. . . . . . . . . . . . . . . . . . . . . . .$395,644
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A-3
"SOUTH SUBDIVISION" 18T-76027
Esternal Storm Water Control Project
(Subject to O.H.A.P. Agreement)
1977 Cost Estimates 1979 Cost Estimates
Construction . . . . .$182 , 520 Construction . . . . . $219, 024
Land Acquisition . 56, 000 Land Acquisition . 160, 000
Survey & Legal . . . 23 , 850 Survey & Legal . . . 28,260
$262 ,370 $407 ,284
B-1
"NORTH SUBDIVISION" 18T-76048
Total levies to be derived as set out in Schedule "D" is $438,000 which
represents 292 units x $1,500.
SCHEDULE "P"
1978 Estimates 1979 Estimates
Trull 's Road North
Total Cost Town Share Developer Share
Construction $478,850 $382,315 $ 96,535 $526,735
Engineering 71,827 57,347 14,840 79,010
$550,677 $439,662 $111,015 $605,745
Nash Road
Total Cost Town Share Developer Share
Construction $213,000 $180,750 $ 32,250 $234,300
Engineering 31,950 27,112 4,838 35,145
$244,950 $207,862 $ 37,088 $269,445
Total External
Road Costs $795,627 $647,524 $148,103 $875,190
Town Share.. . . . . . . . . .$712,277
Developer Share. . . . . . 162,913
$875,190
Total Preliminary Cost Estimate Based
on a 10% Increase for one year.
i
B-2
Town Share External Road Costs Based
on 1979 Preliminary Cost Estimates . . . . . . . . . . . . . . . . . . . . . . . . . .$712,277
Less: M.T.C. Subsidy 50%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356,138
Net Estimated Cost to Town. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$356,139
B-3
"NORTH SUBDIVISION" 18T-76048
External Storm Water Control Project
(Subject to O.H.A.P. Agreement
1977 Estimated Cost)
1979 Cost Estimates
Construction. . . . . . . . . .$62,340 $ 74,808
Land Acquisition. . . . . . 7,500 40,000
Survey & Legal. . . . . . . . 6,990 8,388
$76,830 $123,196