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HomeMy WebLinkAboutPDS-012-22Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Planning and Development Committee Date of Meeting: March 7, 2022 Report Number: PDS-012-22 Submitted By: Reviewed By: File Number: Report Subject: Ryan Windle, Director of Planning and Development Services Mary-Anne Dempster, CAO By-law Number: Resolution#: Building Activity Update January 1 to December 31, 2021 Recommendation: 1.That Report PDS-012-12 be received for information. Municipality of Clarington Page 2 Report PDS-012-22 Report Overview In 2021 we experienced an increase in construction value across all sectors with the exception of the residential sector. In the residential sector, Clarington experienced a reduction in the number of residential building permits, new units created and construction value. However, it is anticipated that the residential sector will make a significant rebound in 2022 as there are several large residential projects which were applied for in 2021 and early 2022 that once approved would combine to produce approximately 700 new residential units. 1. Introduction 1.1 The Building Permit Activity Report presents market activity statistics that are intended to provide a clear picture of development activity within Clarington during the period analyzed. The period of analysis for this current report is January 1 to December 31, 2021 and will be analyzed against the same period in 2020. A comparison of the current statistics against a five-year average is also being provided to give an indication of the status of the current building market. 2. Concepts & Definitions 2.1 “Complete Building Permit Application” – is a building permit application that meets the requirements of the Ontario Building Code which include, plans, specifications, documentation and fees, which are in compliance with all applicable law. 2.2 “Permit” – is formal permission to begin the construction, demolition, addition, or renovation. As part of the building permit process, Municipality of Clarington staff must review the plans and documents submitted to ensure they comply with the Ontario Building Code, local Zoning By-laws, and all other Applicable Law. 2.3 “Residential” – refers to construction and permit activity resulting from the creation of all new residential dwelling units as well as accessory structures (detached garages, sheds, etc.), and additions (decks, new additions to a home, etc.). 2.4 “Non-residential” – refers to construction and permit activity that is related to non - residential development such as site servicing, industrial, commercial, institutional, and agricultural. 2.5 “Total Construction Value” – refers to the total dollar value of construction activity within a defined period because it is a measure of economic activity as a whole. 2.6 “Total Construction Value Residential” – provides a specific measure of the dollar value of construction within the residential sector. The number of new residential units provide an indication of population growth and need for additional commercial services. Municipality of Clarington Page 3 Report PDS-012-22 2.7 “Total Construction Value Non-residential” – provides a specific measure of the dollar value of construction within the non-residential sector and is an indicator of business development within Clarington. 3. Total Construction Value & Activity Building Category Number of Permits 2021 Value of Construction 2021 Number of Permits 2020 Value of Construction 2020 % Change of Value 2021-2020 Residential 912 $208,293,803 1,171 $305,738,563 -31.9% Industrial 13 $4,888,178 23 $33,847,815 85.6% Government 21 $69,420,680 9 $43,699,000 58.9% Commercial 81 $13,932,692 65 $11,781,534 4 18.3% Institutional 19 $7,559,140 11 $2,741,213 175.8% Agricultural 27 $4,866,935 14 $1,630,900 198.4% Demolition 30 $0 59 $0 N/A Total 1,103 $308,961,428 1,352 $399,439,025 -22.7% 3.2 The following graph illustrates the January 1 to December 31 building permit comparison for the last five years. $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 1 2 3 4 5 Year 2017 2018 2019 2020 2021 Total Value $379,537,195 $422,636,361 $130,323,054 $398,366,432 $308,961,428 Five Year Total Construction Value Comparison 2017 -2021 Municipality of Clarington Page 4 Report PDS-012-22 4. Total Construction Value & Activity Residential 4.1 The following pie chart showing the types of dwelling units issued between January 1 and December 31, 2021 as well as the types of dwelling units issued in the year to date 2020. Single Detached 252 43% Semi- Detached 20 3% Townhouse 259 44% Apartment 60 10% Dwelling Unit Type 2021 Single Detached 252 Semi-Detached 20 Townhouse 259 Apartment 60 Single Detached 385 38% Semi- Detached 10 1% Townhouse 417 41% Apartment 210 20% Dwelling Unit Type 2020 Single Detached 385 Semi-Detached 10 Townhouse 417 Apartment 210 Municipality of Clarington Page 5 Report PDS-012-22 4.2 The following is a table showing the number of new residential units issued in each area of Clarington for January 1 to December 31, 2021. We have compared those totals to the year-end totals for each of the past eight years. Year: Area 2021 2020 2019 2018 2017 2016 2015 2014 2013 Bowmanville 410 792 183 723 589 520 461 419 216 Courtice 88 32 12 14 112 292 290 153 97 Newcastle 54 168 67 42 227 149 154 51 92 W ilmot Creek 0 0 0 0 0 0 0 4 2 Orono 4 0 1 1 0 0 0 0 1 Darlington 14 10 10 11 12 6 8 9 12 Clarke 7 6 6 6 11 14 11 12 6 Burketon 0 0 0 0 0 0 0 1 1 Enfield 0 0 0 0 0 0 0 0 0 Enniskillen 0 1 4 4 15 3 0 1 2 Hampton 3 0 1 0 2 1 2 2 0 Haydon 0 0 0 0 0 0 0 1 0 Kendal 0 1 1 0 0 0 1 0 0 Kirby 0 0 0 0 0 0 1 0 1 Leskard 0 0 0 0 0 0 0 0 0 Maple Grove 0 0 0 0 0 0 0 0 0 Mitchell Corners 0 0 0 0 2 0 0 0 1 Newtonville 10 3 3 5 0 3 3 3 7 Solina 1 1 0 2 2 3 0 0 1 Tyrone 0 0 0 1 0 0 0 0 0 Total 591 1023 288 809 972 991 931 656 439 Municipality of Clarington Page 6 Report PDS-012-22 5. Total Construction Value & Activity 5.1 A measure of economic activity within Clarington may be found in part by looking at the non-residential space, such as industrial, commercial, and institutional as well as large multi-unit residential developments such as apartment buildings or condominiums. In this regard we find it helpful to provide information about permits that fit this criterion and exceed a construction value of $1,000,000. The details about such activity in 2021 are provided as follows: Owner Location Description Value ($) Type Regional Municipality of Durham 2188 Bloor Street, Darlington DRPS Regional Support Centre $36,800,000 Governmental Regional Municipality of Durham 2192 Bloor Street, Darlington Centre of Investigative Excellence (DRPS) $17,600,000 Governmental Regional Municipality of Durham 2188 Bloor Street, Darlington Site Servicing $13,400,000 Governmental 1728589 Ontario Inc. 1635 Highway 2, Courtice Multi-Use Building (Retail/Office) $3,231,760 Commercial Kawartha Pine Ridge District School Board 49 Liberty Street North, Bowmanville Replacement of Ductwork and Ceiling $1,700,000 Institutional Kawartha Pine Ridge District School Board 1642 Nash Road, Courtice Interior and Exterior Renovations $1,678,000 Institutional Sunspace 260 Toronto Street, Newcastle Warehouse Addition $1,449,228 Industrial Municipality of Clarington Page 7 Report PDS-012-22 Owner Location Description Value ($) Type Kawartha Pine Ridge District School Board 3425 Highway 35/115, Clarke Replacement of Ductwork, Ceiling, and 2 Air Handler Units $1,250,000 Institutional 2824538 Ontario Inc. 6 Spicer Square, Bowmanville Commercial Building (Shell) $1,242,000 Commercial Rekker Gardens Inc. 3104 Concession Road 4, Darlington Greenhouse $1,229,250 Agricultural Kawartha Pine Ridge District School Board 3421 Highway 35/115, Clarke Interior Alterations $1,200,000 Institutional Clearwater Structures Inc. 505 Lake Road, Bowmanville Site Servicing $1,140,000 Industrial The Canada Life Insurance Company 2320 Highway 2, Bowmanville Sound Screening (Walmart) $1,100,000 Commercial Municipality of Clarington 156 Church Street, Bowmanville Interior Renovations & Barrier Free Access $1,000,000 Governmental Gibson Farms Inc. 3671 Pollard Road, Clarke Migrant Worker Housing $1,000,000 Residential 6. Durham Region Comparisons 6.1 The Durham Region comparisons are not available at this time. The Growth Trends Review typically issued in June will provide a comparison across the lower tiers. Municipality of Clarington Page 8 Report PDS-012-22 7. Inspection Activity 7.1 The following is a table showing how many inspections were attended from January 1 to December 31, 2021 as well the same time period in 2020. Type of Inspection Completed 2021 2020 Building Inspections 9,576 8,455 Plumbing and Heating Inspections 8,814 8,301 Pool Enclosure Inspections 203 137 Total 18,593 16,893 8. Mandated Response Timeframes 8.1 The Ontario Building Code mandates that complete building permit applications shall be issued or the applicant shall be notified that the permit is being refused and provided with the reasons why it is refused within a prescribed time period based on the type of building. From January 1 to December 31, 1,114 applications were received and 898, or 81%, of them were complete applications. This is an increase of 14% over 2020, For the complete application, the following table reports on the median number of days it took for the Building Division to either issue the permit or notify the applicant why the application was being refused. Permit Type Mandated Timeframe Median Number of Days 2021 Median Number of Days 2020 Median Number of Days 2019 Residential 10 14 9 10 Small Buildings 15 10.5 11.5 12 Large Buildings 20 16 13 19 Complex Buildings 30 0 8 0 9. Insights and Outlook 9.1 The newly released Stats Canada report outlining municipal growth over five years indicates that Clarington is the fastest growing municipality in Durham Region. The population has grown by 10.2 per cent from 92,013 in 2016 to 101,427 in 2021 and the population is continuing to grow. 9.2 It is anticipated the residential sector numbers will increase in 2022 and continue to show the growth Clarington has been experiencing. We have several large residential projects which have been applied for and are under review which are expected to result Municipality of Clarington Page 9 Report PDS-012-22 in approximately 700 new residential units. This does not include future applications that are expected over the balance of 2022. 9.3 The Large Municipality Chief Building Officials (LMCBO) construction values are used by the Building Division to determine the value of each building permit. However, these values have not been updated since 2017. The LMCBO cost schedule is not intended to reflect the actual construction cost of any individual building. They are representative construction values for typical buildings, provided for more consistent construction values reported by Building Departments across Ontario. In 2021, the LMCBO undertook to update the construction values based on the Atlas Canadian Cost Guide which provides construction cost ranges for public and private sector buildings across Canada. The values have not been updated in the last five years and the new list provides a much more detailed list of building types. As a result, there will be an increase in the reported value of construction in 2022 within Clarington and across Ontario. 9.4 In some circumstances Staff use the declared value the applicant has provided when the building is very specialized, for example OPG projects . 10. Concurrence Not Applicable. 11. Conclusion Clarington has had a strong year in 2021 for building activity. The year ahead appears that it will also be very strong with high demand for building permits, considering the permit applications and planning applications that have been submitted and/or are expected to be submitted in the coming months. Staff Contact: Brent Rice, Chief Building Official, 905-623-3379 extension 2303 or brice@clarington.net. Interested Parties: There are no interested parties to be notified of Council's decision.