HomeMy WebLinkAboutADMIN-14-95 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTUN SHED BUSINESS
REPORT
Meeting: COUNCItL oq(, .�U .
90
Data: APRIL 24 1995
Roport* ADM.14-95 rtts BY-L&W
OLDER ADULT CENTRE AND HIGHWAY NO. 2 URBANIZATION WORK
Recommendations:
It is respectfully recommended that Council approve the following:
(1) THAT Report No. ADMIN-14-95 be received; and
(2) THAT Council approve amendments to the Aspen Springs Subdivision Agreement
to delete the requirement that the Owner construct the "CPR Underpass Work" and
the requirement that the Owner deposit Letters of Credit with the Municipality as
security for the construction of the Work, on the conditions as outlined in this report;
and
(3) THAT Council accept a financial contribution from Martin Road Holdings Limited
and West Bowmanville Developments Ltd, in the amount of $1.5 million on the
terms and conditions set out in this report; and
(4) THAT Council approve the construction of the Older Adult Centre, at a cost of$1..3
million, in conjunction with the proposed Durham Region Non-Profit Housing
Authority,project to be built on Temperance Street in Bowmanville; and
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(5) THAT Council commit $200,000 of said contribution of $1.5 million to the cost of
t> a urbani<,ation work on Highway No. 2; and
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(h) '11iAT Council approve the provision of interim funding of$1,3 .niilion fcr the ( :der
A.dult Centre and $200,000 for urbanization work on -iighway No. 2 referred to in
recommendations (4) and (5) from the Hydro Reserve Fund Ac,;ount; and
(7) THAT when instalments are paid to the Municipality in respect of the financial
contribution of$1.5 million referred to in recommendation (2) they be deposited in
the: Hydra Reserve Fund Account; and
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DEPORT NO. ADMIN.14-95 PAGE 2
(8) THAT Council approve the commitment of the amount of $100,000 which is to be
paid by Markborough Properties Inc. and West Bowmanville Developments Ltd. in
respect of the extension of water service to the Garnet B. Rickard Recreation
Complex when it is paid pursuant to this report, to the cost of urbanization of
Highway No, 2; and
(9) THAT Council approve the agreements and amending agreements recommended in
this report and pass the necessary by-laws to authorize the same being executed by
the Mayor and Clerk on behalf of the Municipality; and
(10) THAT the Treasurer be authorized to accept the deposit of the Letters of Credit and
return the Letters of Credit referred to in the report on the conditions set out in this
report; and
(11) THAT a copy of this report be sent to:
Markborough Properties Inc,
Martin Road Holdings Limited and West
Bowmanville Developments Ltd.
829462 Ontario Inc, and 838038
Ontario Inc.
Willsonia Industries Limited-and
Clarington Place Limited
Durham Region Non-Profit Housing Authority
Older Adult Centre Committee
1, INTRODUCTION
1.1 During the past year the Office of the Chief Administrative Officer has been involved
in a number of protracted negotiations involving property acquisitions, commercial
developments, recreational facilities,etc., throughout the Municipality. Two of these
negotiations that have taken a considerable amount of Staff time are the proposed
Older Adult Centre that is being considered in conjunction with the Durham Region
Housing Authority on Temperance Street in ,Bowmanville, and the Urbanization of
Highway No. 2 in the area between Regional Road No. 57 and Green Road in
Bowmanville. The Highway No. 2 project must be addressed before development
can proceed on both the north and south side of Highway No. 2, which was the
subject of a recent Ontario Municipal ,Board hearing. In both cases, Council has
directed the Chief Administrative Officer to continue to meet with all the parties
involved, in an attempt to identify the necessary funding that would allow these
projects to go forward. We now submit the following report that addresses the issue
of funding for both projects.
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REPORT NO. ADMIN-14.95 PAGE 3
2. OLDER ADULT CEN'T'RE
2.1 The proposed Older Adult Centre has been the subject of numerous reports to
Council, covering the rezoning of the site in question, as well as theconstruction of
the 10,000 square foot facility that would form a part of the Durham Region Housing
Authority's sixty unit "singles" building proposed for the old piano fpwtoryll site,
across from the public library on Temperance Street in Bowmanville.
2.2 As Council knows, the Housing Authority has had approval in principle from the
Ministry to construct this project on the proviso that the Municipality of Clarington
participates in the project by financing the Older Adult Centre. The Centre would
have a gross floor area of 11,600 sq. feet, and a net floor area of 10,000 sq. feet, and
will include leasehold improvements, carpet, and air conditioning. The furniture and
appliances will be provided by the Clarington Older Adult Centre Committee who
will be responsible for the operation of the Centre. There would be 22 surface
parking spaces. By financing the recreation Centre, the Municipality would then hold
ownership of approximately 19% of the overall complex. This would compare to the
square footage of approx, 16 additional living units.
2.3 At a meeting held on November 28, 1994, Council passed a resolution directing the
Chief Administrative Office to go on record with the Durham Region Housing
Authority that the Municipality of Clarington approves, in principle, of the
preliminary architectural drawings showing the proposed 10,000 square foot"seniors'
centre", and as well "That the Municipality of Clarington agrees to cover the cost of
the 10,000 square foot "seniors' centre" on the proviso that an acceptable financial
contribution by the Municipality, either by way of capital investment or long term
lease, is agreed upon between the Housing Authority and the Municipality".
2.4 Following those directions, Staff have had numerous meetings with the
representatives of the Housing Authority and have identified the Municipality's
portion of the capital cost to be $3,300,000. Should Council agree to proceed with
this project, the Durham Regional Housing Authority would need a commitment
from the Municipality of Clarington that the amount of$1,300,000 would be available
for construction purposes. This then would allow the Authority to make a final
submission to the Ministry for approval of the project. As previously stated by the
Dousing Authority, should Clarington decide not to participate in this project, the
Ministry will not approve the housing portion of the facility and the project will not
proceed. Upon Council's approval of the funding proposal identified later in this
report, the Durham Region Housing Authority will immediately proceed with the
necessary approvals and would expect to see the project commence construction
within the next few months.
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REPORT NO. ADMIN-1495 PAGE 4
2.5 On reviewing the financing proposals that are addressed in this report, it should be
kept in mind that there is still a possibility of obtaining some type of Provincial grant
for the recreation portion of the project, even though we have not been successful
to date in receiving a positive answer in this regard from . our Regional
Representative of the Ministry of Tourism, Culture and Recreation. It should also
be kept in mind that should the project proceed, the Housing Authority would be
paying approximately $150,000 to the Municipality under the Development Charges
By-law. This amount, could not be addressed as a portion of the Municipality's
funding, as it must be directed to the Development Charges Reserve Fund.
However, it should be considered a "plus" in the overall financial assessment of the
project.
3. URBA.IVIZATION OF HIGHWAY No.2,BOWMANVILLE AMAIN CENTRAL ARRA
3,1 The transition of Highway No. 2 from a high speed rural cross-section to a low speed
urban roadway between Green Road and Martin Road Is considered essential to the
long term development of the Bowmanville West Main Central Area (B.W.M.C.A).
3.2 In order to ensure that the Municipality of Clarington's interests in this regard are
properly addressed, the +Clarington Public Works Department prepared a functional
design for the urbanization of the aforementioned section of roadway.
3.3 The functional design provided a framework for the review of proposed
developments adjacent to Highway No, 2 and the opportunity to generate a phased
approach for the implementation of the required work.
3.4 Two developments, Markborough and Willsonia have been reviewed in this context
and works on Highway No. 2 have been identified.
3.5 A section of Highway No. 2 adjacent to the proposed Markborough and Willsonia
developments is super-elevated and has no longitudinal fall. These two conditions
make urbanization of the roadway at its current grade impossible.
3.6 The lack of longitudinal grade would result in ponding along proposed curb lines and
the super-elevation 4.5% is not suitable geometry for intersecting urban streets. In
order to address these issues, a number of alternative solutions were reviewed. The
only solution which satisfactorily addressed the long term interests of the
Municipality and permits the development of the Markborough and Willsonia lands
requires the construction of approximately 565 metres of Highway No. 2 (See
Attachment No. 1). The proposed reconstruction involves the lowering; of Highway
No. 2 in the vicinity of Street W. A low point would be established at the proposed
intersection f .Highway No. 2 with Street 'B' resulting in a minimum longitudinal
grade of 0.5% and removal of the super-elevation.
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REPORT NO. ADMIN-14.95 PAGE S
4. PROPOSED FINANCING OF HIGHWAY NO, 2 IMPROVEMENTS
4.1 The cost of the required road work was estimated at $1,090,000.00 in 1994 dollars.
This value does not include the cost of providing street lighting and sidewalk as
these services were included in the Municipality's Development Charges By-law.sidewalk,
amount of the estimated costs thereof of the latter services which would be the
Municipality's responsibility is $290,000. In addition, traffic signals and storm sewer
oversizing would be the responsibility of the developers. The estimated cost of traffic
signals to be located at Kings Highway and Street "E" is $100,000.
4.2 Financial negotiations have been ongoing regarding this project. Initially the
adjacent developers were advised that the total cost of theportion of the project
necessitated by their developments was to be their responsibility and would be in
addition to the costs of works referred to in the servicing agreements they had made
with the Municipality.
4.3 The Municipality had entered into the following servicing agreements with the
adjacent developers (x) respecting the Markborough Shopping Centre on May 24,
1994 with 829426 Ontario Inc. and 838038 Ontario Inc. and Royal Bank of Canada
(the "Markborough Servicing Agreement"), and (2) respecting the Wilison'a
development also on May 24, 1994 with Willsonia Industries Limited and Clarington
Place Limited (the "Willsonia Servicing Agreement"), We understand that the
shareholders of the numbered companies who are parties to the Markborough
Servicing Agreement are Markborough Properties Inc. and West Bowmanville
.Developments Ltd.
4.4 Both developers have indicated that they are prepared to move ahead with the
necessary approval process. However, considering the protracted hearings regarding
the Bowmanville West Main Central Area, at the Ontario Municipal Board, the
additional cost of the urbanization resulted in both developments reaching a point
of questionable financial viability. Both developers clearly stated that should the
entire cost of urbanization be left to them, they could not proceed with their
proposed development.
4.5 Staff then made contact with the senior staff of the Durham Region Works
Department in an attempt to see if there was some way the Region could participate
financially in the urbanization project, given the fact the Highway No. 2 was turned
over to Durham Region by M.T.O, on January 1, 1995. After lengthy negotiations,
the Regional Staff agreed to recommend to Regional Council that they participate
in this project to the amount of $240,000.
4.6 Once the Regional Staff commitment was obtained, further discussions took place
with the two developers and commitments were obtained for contributions to the
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IMPORT NO. ADMIN-14-95 PAGE 6
project of $400,00 from Markborough Properties Inc. and West Bowmanville
Developments Ltd., on the one hand and $250,000 from Willsonia, on the other
hand, for a total amount of $$90,000 towards the total cost of $1,190,000, leaving a
shortfall of $300,000.
4.7 Staff recommend that Covncil approve amendments to the Markborough and the
Willsonia, Servicing Agreements, respectively, to give effect to these commitments
unless alternative legal arrangements satisfactory to the Region of Durham are made
directly with the Region to secure these commitments.
4.8 With respect to the cost of storm sewer oversizing on Highway No. 2, in the storm
sewer accommodating flow from the north side of Highway No.2 from the Willsonia
and other lands under Highway No.2(the"highway No.2 Storm Sewer Overswng")
to connect with the storm sewer to be constructed under the Markborough Servicing
Agreement,it is recommended that Council approve an amendment to the Willsonia
Servicing Agreement to provide that Willsonia Industries Ltd. and Clarington Place
Limited will fund the cost of the Highway No. 2 Storm Sewer Oversizing.
S. FINANCING OF SHORTFALL IN FUNDING OF HIGHWAY NO. 2
IMPROVEMENTS
5.1 Considering the fact that the Municipality owns land on the north side of the portion
of Highway No. 2 in question, namely the municipal fire hall and the Garnet B,
Rickard Recreation Complex, both developers felt that the Municipality should
finance the additional $300,000 in order to have the project proceed immediately,
thereby allowing both Markborough and Willsonia to commence construction in
1995,
5.2 In an attempt to identify additional municipal funding for the road project, Staff
revisited the past financial commitments made by all of the developers in the general
area. On reviewing same we identified two past agreements that may be a source
of funding for the Municipality to participate In the Highway No. 2 urbanization,
should Council wish to see the project and the developments proceed this year,
These are agreements respecting a water service contribution provided for in
conjunction with the rezoning to permit the Canadian Tire Store, and the Aspen
Springs Subdivision Agreement.
6. WATER SERVICE CONTRIBUTION OF WEST BOWMANVILLE
DEVELOPMENTS LTD. AND MARKBOROUGH PROPERTIES INC.
6.1 The former Town of Newcastle made an agreement dated November 26, 1990,with
Markborough Properties Inc, and West Bowmanville Developments Ltd,under which
the cost to the municipality of extending water service to the Garnet B. Rickard
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REPORT NO. ADMIN-14-95 PAGE 7
Recreation Complex would be defrayed by a contribution from the companies of
$300,OK The two companies benefited from this municipal expenditure by being
able to extend the water service to the Canadian. Tire Store and the proposed
Markborough Shopping Centre fronx the Recreation Complex. One hundred and
fifty thousand dollars was paid to the Municipality on the execution of the agreement
and was deposited in the Arena Deserve Fund Account, Payment of the balance of
$150,000 is to be made when a building permit is issued for the proposed
Markborough Shopping Centre, It is secured by Letters of Credit which is deposited
with the Municipality.
6.2 Since people using the Recreation Complex will benefit from the urbanization of
Highway No.2, Staff are of the opinion that it would be fair to apply $100,000 of the
balance of$150,000 secured by Letters of Credit deposited with the Municipality to
defray part of the cost of the improvements to Highway No. 2. Accordingly, Staff
recommend that subject to the concurrence of the parties to the agreement dated
November 26, 1990 between the former Town of Newcastle,Markborough Properties
Inc. and West Bowm.anville Developments Ltd., be amended: (1) to provide for a
reduction in the security for the payment to defray part of the cost of extending the
water service which is now deposited with the Municipality to the amount of$50,000
which is payable on issuance of a building permit for the proposed Markborough
Shopp4 Centre; (2)to require Markborough Properties Inc,and West Bowmanville
Developments Ltd. to pay $100,0)0 to the Municipality to defray part of the cost of
Highway No. 2 improvements within 30 days following the commencement of the
construction of these improvements; and (3)to require the deposit of new irrevocable
and unconditional Letters of Credit or amendments to Letters of Credit presently
deposited with the Municipality to secure performance of the revised obligations of
the companies. The Letters of Credit are to be issued by a bank listed in Schedule
1 of the Barak Act, in amounts, in a form and with a content satisfactory to the
Treasurer.
7, UNFUNDED COSTS OF HIGHWAY No. 2. IMPROVEMENTS
7.1 Should Council agree with Staffs last recommendation in this regard, the unfunded
balance of the Highway No. 2 project would be $200,000 in addition to the unfunded
cost of $1,300,00 for the Older Adult Recreation Centre, This report will go on to
deal with the immediate and longer term sources of these amounts.
8. ASPEN SPRINGS SUBDIVISION AGREEMENT
8.1 In consultation with Mr. Dennis Hefferon, the Municipality's Solicitor, Staff have
reviewed the conditions of draft plan approval of the Nest Bowmanville
Developments Ltd,subdivision located between Green Road and Regional Road No.
57, south of the CPR tracks (Plan 18T-86046 . Aspen Heights), relative to the
REPORT.NO. ADMIN-14,95
PAGE 8
construction of the grade separation proposed at the intersections of future Street"C"
and the CPR and the Aspen Heights Subdivision, One of the conditions of the draft
plan approval was that "the Owners shall agree to .reserve Blocks 342 and 347 for
railway underpass and to address construction to the satisfaction of the Town of
Newcastle."
8.2 The Aspen Springs Subdivision Agreement between the former Town of Newcastle
and Martin Road Holdings Limited and West Bowmauville Developments Ltd. and
certain mortgagees provides: "With respect to the 'CPR UndBrpass Work', without
derogating from the provisions of paragraph 5.27 of this Agreement, the Owner
sgrees at its cost to commence to construct this work no later than the day on which
an application is made for a building permit for a building which is or includes the
661st dwelling unit proposed' to be constructed on the lands and to complete the
same in accordance with this Agreement."
8.3 It should be noted that a grade separation. may also be constructed by the
Municipality at the intersection of Green Road and the CPIs, at a future time.
8.4 Staff have considered the provisions of the Aspen Springs Subdivision Agreement as
well as the proposal for the future construction of an underpass at the intersection
of Green Road and the CPR tracks, Although the Municipality's Final Report on
the Transportation Analysis for the Bowmanville Main Central Area Study stated
"All the network alternatives show an extension of the north-south collector road
through a railway underpass to link with Aspen Springs Drive on the south side of
the CPR tracks, this could serve as an alternative access route for West MCA traffic
heading to Martin Road, instead of having to use Highway No. 2. However,
consideration should be given to the impact of increased traffic on residential streets
south of the railway tracks.", the Director of Planning and Development has some
concern with the proposal of not proceeding with the construction of the underpass.
However, staff with the exception of the Director of Planning and Development have
concluded that it is not necessary in order to protect the Municipality's interest in the
proper functioning of the existing and future street system both north and south of
the CPR, tracks and both east and west of Green Road that the "CPR Underpass
Work" be constructed as provided for in the Aspen Springs Subdivision Agreement.
8,5 It is recommended that conditional on financial arrangements being agreed to by
Martin Road Holdings Limited, West Bowmanville Developments Ltd., 829426
Ontario Inc. and 818038 Ontario Inc, and all necessary parties executing the
agreements and depositing the securities referred to in this report, Council approve
an amendment to the Aspen Springs Subdivision Agreement to delete the
requirement that the Owner construct the "CPR Underpass Works".
REPORT NO, ADMIN-14-95 PAGE 9
8.6 Should Council agree with this recommendation, the developer of the Aspen Springs
project, through Mr. William Daniel, has agreed to make an outright contribution to
the Municipality of Clarington in the amount of $1.5 million, to be used by the
Municipality for the purpose recommended in this report,
8.7 Accordingly, it is recommended that Council:
(a) approve an agreement to amend the Aspen Springs Subdivision _agreement
between the Municipality, Martin `toad Holdings Limited, West Bowmanville
Developments Ltd, Robert Louis Stevens and Royal Bank of Canada dated
September S, 1991., as amended, to delete the requirement that the Owners
construct the"CPR Underpass Work"and provide security to the Municipality
for the performance of the Owners' covenant to do so;
(b) provide in the amendment to the Aspen Springs Subdivision Agreement or if
considered appropriate by myself in consultation with the Solicitor in a
separate agreement with Martin Road Holdings Limited and West
Bowmanville Developments Ltd, which is to be executed prior to the
amendment to the Aspen Springs Subdivision Agreement referred to in (a),
for the payment to the Municipality $1,500,000 in five (5) equal annual
instalments of$300,000 each, the first instalment to be paid on April 24, 1996;
(c) require each of the instalments referred to in (b) when paid to the
Municipality to be deposited in the Hydro Reserve Funds Account;
(d) require the deposit with the Municipality's Treasurer as alternative security
for the performance of the obligations set out above unconditional and
irrevocable Letters of Credit issued by a bank listed on Schedule 1 of the
Bank Act in amounts, in a form and with a content satisfactory to the
Treasurer.
(e) authorize the Treasurer to return to the Owners the Letters of Credit
deposited with the Municipality in respect of the "CPR Underpass Works"
conditional nn the alternative security set out in (d) being deposited with the
Municipality;
9- INTERIM FUNDING REQUIREMENTS FOR OLDER ADULTS' RECREATION
CENTRE AND $200,040 OF THE COST OF THE HIGHWAY NO. 2
IMPROVEMENTS
9.1 It is recommended the interim funding requirements to proceed with the Adult
Recreation Centre ($1.� million) and $200,000 of the cost of the Highway No. 2
improvements should be obtained by accessing the Hydro Reserve Funds for the
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R>'PORT NO. ADMIN-14-95 PAGE 10
amount of$1.5 million, on the condition that this amount will be replaced over the
next five years upon the payment of the $1.5 million under the revised Aspen Springs
Subdivision Agreement or the agreement between the parties referred to above,
14. TERMS OF AORRLMENT,,g
10.1 It is recommended all agreements to implement the recommendations contained in
the report shall contain provisions considered to be necessgry to protect the
Municipality's interests by myself in consultation, with the relevant Staff and the
Municipality's Snlicitor.
11. CONCLUSION AND RECOMMENUA37IONs
11.1 This report addresses the funding requirements for the Calder Adults' Recreation
Centre and the urbanization of Highway No, 2 to permit the Markborough Shopping
Centre and the Willsonia developments to be commenced this year. It is
recommended that this report approve the making of agreements and other actions
set out in it be approved by Council,
11.2 By adopting the recommendations of Staff Council would accomplish the construction
of the Older Adult Centre, as well as the completion of the Highway No, 2
Urbanization Work without having an adverse affect on the municipal budget,
1.1.3 The completion of the Highway No. 2 work would then allow the developers to
proceed with their commercial projects as an early date, resulting in a positive impact
on the municipal assessment base.
Respectfully submitted,
toc e
Chief Administrative Officer
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