The URL can be used to link to this page

Home My WebLink AboutPSD-034-01 ~ - Cl. II L~~ REPORT PLANNING SERVICES DEPARTMENT Meeting: Date: /toe; PLN 20.8.10 By-law #: Report #: PSD-034-01 File: Subject: PAYMENT OF DEVELOPMENT CHARGES ON STORAGE UNITS BY STORAGE DEPOT INC. Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PSD-034-01 be received; 2. THAT the request by Mr. Ronald Worboy for an exemption on behalf of Storage Depot Inc. from the Clarington Development Charges By-law 2000-108, as amended, be DENIED; 3, THAT Mr, Worboy be forwarded a copy of Council's decision and Report PSD- 034-01. Submitted by: David J rome, M.C.I.P.,R.P.P, Director, Planning Services Reviewed bY~' c~cf2.~'~ Franklin Wu Chief Administrative Officer DJC*SN October 15, 2001 69945 REPORT NO.: PSD-034-01 PAGE 2 1.0 BACKGROUND 1.1 On September 17, 2001 Mr. Ronald Worboy, on behalf of his client Storage Deport Inc., made a submission to the General Purpose and Administration Committee with respect to two buildings containing self-storage units on lands on Baseline Road in Courtice. A letter from Mr. Worboy, dated September 10, 2001 was received at the Council meeting of September 24, 2001 and referred to the Director of Planning Services. 1.2 Storage Depot Inc. was required to pay development charges under the Municipality's Development Charges By-law 2000-108, as amended, at the time that the building permits were issued. Mr. Worboy suggested that his client's project was an industrial use and requested that the development charges should not apply. 1.3 Development charges were collected on the subject property in the following amounts: Municipality of Clarington Regional Municipality of Durham Kawartha Pine Ridge District School Board P.v.N.C. Roman Catholic Separate School Board TOTAL $4,902.06 $8,278.84 $1,131.46 $357.42 $14,669,78 2.0 DISCUSSION 2.1 The matter was referred to the Municipality's solicitor for a legal opinion. This opinion is confidential and has been forwarded to members of Council for their review. The opinion is related only to the Municipality's Development Charge By- law, 2,2 Mr. Worboy indicated to the Municipality's solicitor that about 60% of the units are used for household storage and 40% are used for the storage of inventory, equipment, tools, cars and motorcycles, etc. 69946 REPORT NO.: PSD-034-01 PAGE 3 2.3 Section 23 of By-law 2000-108, as amended, exempts an "industrial" building from the non-residential development charge. Section 1 (1) of the By-law defines "industrial" as follows: "Industrial" means manufacturing, assembling, processing, fabricating, refining, research and development, storaqe of materials and products, truck terminals, warehousinq, and buildinqs and structures or portions thereof which are desiqned, used or intended to be used for a purpose, but the term does not include (1) retail service, sales or rental areas, storage or warehousing areas or uses used, designed or intended to be used in connection with retail sales, service or rental areas, and (2) office areas or uses whether or not they are accessory to any of the foregoing areas or uses, or to any other non-residential areas of ruses;" (Emphasis Added) The solicitor has concluded that the storage units operated by Storage Depot Inc. are not "warehousing" as used in the definition of "industrial" in Section 1 (1) of the By-law. It is the Solicitor's opinion that warehousing has a narrow definition related to industrial processes, It does not include the temporary storage of household goods. Accordingly, Storage Depot Inc, is, in the solicitor's opinion, subject to development charges under By-law 2000-108. 2.4 The Director of Finance/Treasurer contacted the Region with respect to their development charges by-law. She was informed that the Region consistently collects development charges on self storage units across Durham Region. 3.0 CONCLUSION 3.1 It is recommended that Mr. Worboy's request, on behalf of Storage Depot Inc., to be exempted from the payment of development charges be denied. The Director of Finance and the Solicitor have reviewed this report and concur with this recommendation, 69947 REPORT NO.: PSD-034-01 PAGE 4 Attachments: Attachment 1: R. Worboy's Sept. 10th, 2001 Correspondence to Mayor and Members of Council Interested parties to be advised of Council's decision: Mr, Ronald Worboy Barrister, Solicitor 153 Simcoe Street North OSHAWA, ON L 1 G 4S6 69948 RONALD F. WORBOY.B.A"LL.B. !l>trri9'ter. ~"liriLn- <ii. J T'rr(t.rnIT,\WTUT1\\ F" J.U ~, l-td I ./#~ ',..<if SEP i 0 2001 ~!~UWGjP...;UT'1 OF CL;~Hlr~GTON MAYOR'S OffiCE September 10'\ 2001 Mayor John Mutton 40 Temperance Street Bowmanville, Ontario LlC 3A6 Mr. Jim Schell, Regional Councillor Wards 1 and 2 40 Temperance Street Bowmanville, Ontario LlC 3A6 Mr. Charlie Trim, Regional Councillor Wards 3 and 4 40 Temperance Street Bowmanville, Ontario LlC 3A6 Ms. Jane Rowe, Councillor Ward 1 40 temperance Street Bowmanville, Ontario Ll C 3A6 Mr. Don MacArthur, Councillor Ward 2 40 Temperance Street Bowmanville, Ontario LlC 3A6 Ms. Pat Pingle, Councillor Ward 3 40 Temperance Street Bowmanville, Ontario LIC 3A6 Mr. Gord Robinson, Councillor 40 Temperance Street Bowmanville, Ontario LlC 3A6 69949 ... -.,.,,'- ATTACHMEINT 1 7)-/.0 'OISEPll PM <1:14:55 TELEPHONE (9051 723-2288 FAX (90S} 576'1355 153 SIMCOE STREET NORTH OSHAWA.ONTARIO LlG 456 r~'..r""'''_r'~_'', . ,""- .-. ~~'v .'.. . . - 'lJ):ll;. u -r; () IV ' ~~/~ r ;"'-'1 . ~$-tU~j); i :_Pt'".~,~, 'L~ .~:;lj~';'7+-; , '---:'_C;:''i / .. _ --~--:---r---! 1 ~?!,j.'l-j :-'-~-............--.-~.._.v.., i . i - - '-.7----'~---r . . ......,-....,.- '-.....-'. '_.n.... .:..._..~__! . I --.._-~~,-~..'- I l ._......"'........_... ~__...._. '___~! "<-~... ...~---t --~~ '"".---'.-.... r <:'1 '. oc::- -2- Dear Mayor Mutton, Mr. Schell, Mr. Trim, Ms. Rowe, Mr. MacArthur, Ms. Pingle, and Mr. Robinson: Re: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON - BY-LAW NUMBER 2000-108 (Development Charge By-Law) Re: Application of Development Charge By-Law to Storage Depot Inc., 1632 Baseline Road, Courtice, Ontario - Warehousing Units Storage Depot Inc, desires to complete the build out development on its land at premises municipally known as 1632 Baseline Road, Courtice, Ontario. It desires to construct five buildings, The Municipality of Clarington and the Regional Municipality of Durham requires payment of$45,000,OO in development charges to permit Storage Depot Inc., William Watson to obtain the building permits to pursue his construction project of five buildings. Mr. Watson submits that development charges 01'$45,000.00 pursuant to By-Law 2000-108 and the Regional Municipality of Durham should not be charged to his corporation to obtain such building permits. The Region of Durham will only assess development charges if the local municipality collects same. Mr. Watson, the principal shareholder, director and officer of Storage Depot Inc. feels that the construction of warehousing units is exempt as "Industrial" pursuant to Section 1(1) of the said By-Law, 2000-108, The definition of "Industrial" as a term of the By-Law 200Q:-108 does not include: "(I) retail service sales or rental areas, storage or warehousing areas or uses used, designed or intended to be used in connection with retail sales, service or rental areas." In other words, it is Mr. Watson's submission that there is no warehousing or rental area that he is constructing that is used in connection with a "retail service, sales or rental area," The governing word is "retail sales" and it is the connection of warehousing storage or rental areas with retail sales that deems the latter not to be "Industrial" within the definition scction of the said By-Law. Needless to say, an Industrial building is exempt from development charges because of its industrial warehousing use, 69950 -3- At present Mr. Watson through his corporation Storage Depot Inc. has proposed construction of industrial warehousing units in Whitby. The Town of Whitby indicates there will be no levy charges. He has built an existing complex of storage industrial warehousing buildings in Clarington at the above referenced address and to date he has not paid development charges whatsoever to obtain a building permit. My client requests that council review this situation and confirm that Storage Depot Inc. could obtain building permits without payment of the $45,000.00 in development charges to the Municipality of Clarington and the Regional Municipality of Durham. Mr. William Watson through his corporation Storage Depot Inc. desires to proceed immediately with his construction and sincerely would appreciate a decision pertaining to this matter. Yours very truly, ((.; ~~ Idj RONALD F. WORBOY 69951