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HomeMy WebLinkAboutPDS-059-23Clarftwn Staff 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: October 23, 2023 Report Number: PDS-059-23 Submitted By: Carlos Salazar, Director of Planning and Infrastructure Services Reviewed By: File Number: Report Subject: Mary -Anne Dempster, CAO PLN 1.1.30 Resolution#: PD-072-23 By-law Number: Transportation for the Future Act, 2023 (Bill 131); Schedule 2 - GO Transit Station Funding Act — Summary and Overview Recommendations: 1. That Report PDS-059-23, and any related delegations or communication items, be received; 2. That the Province be requested to specify that the legislation apply to the designated Major Transit Station Areas in municipal official plans; 3. That the Municipality of Clarington supports the legislation; 4. That the Province be requested to specify in the legislation that a transit station charge by-law passed by a municipality would be effective back to the date on which the GO Transit Station Funding Act comes into force; 5. That should the proposed GO Transit Station Funding Act (Schedule 2 of the Transportation for the Future Act, 2023) legislation be passed, the Municipality hold a meeting as part of the required background study to provide the opportunity for property owners to comment on the use of the new funding tool; 6. That Report PDS-059-23 be adopted as the Municipality's submission to the Province on the proposed Transportation for the Future Act, 2023 — Schedule 2 — GO Transit Station Funding Act (Bill 131) (Proposal Number 23-MO1004); 7. That a copy of Report PDS-059-23 and Council's decision be sent to the Ministry of Infrastructure, Region of Durham, and other Durham Region area municipalities; and 8. That all interested parties listed in Report PDS-059-23, and any delegations be advised of Council's decision. Municipality of Clarington Report PDS-059-23 Report Overview Page 2 On September 25, 2023, the Ontario Government proposed the Transportation for the Future Act, 2023. Part of this Act is the GO Transit Station Funding Act which would allow municipalities to fund the design and construction of new GO stations and recoup the costs through charges on new development in the surrounding area. Innovative funding tools and opportunities to advance the development of the Courtice and Bowmanville GO Train stations and the surrounding transit -oriented communities are appreciated. Staff looks forward to working with the Province, Durham Region, and the development community as more is learned about this new tool. The purpose of this report is to (i) summarize the proposed legislation, and (ii) provide high level comments for Council's consideration, and (iii) commit to a public engagement process to consider the use of the funding tool, should the proposed legislation be passed. 1. Summary of Legislation 1.1 On September 25, 2023, the Ontario Government proposed the GO Transit Station Funding Act as part of the Transportation for the Future Act, 2023 (Bill 131). This Act enables municipalities to take on and recover certain costs related to the construction of a new GO station by charging a Station Contribution Fee on development in a prescribed area around the new station. Council must first undertake a background study and pass a transit station charge by-law before construction of the station has started in order to use this funding tool. 1.2 It is noted the legislation would apply only to prescribed municipalities, which have not yet been identified. However, Clarington has two Major Transit Station Areas (MTSA), Courtice and Bowmanville, that will be the sites of new GO Transit stations to accommodate the extension of GO train service to Bowmanville (Figures 1 and 2, below). Municipality of Clarington Report PDS-059-23 u 0 Maior Trv�s�c scaova nrev creTsni �s aesi9aatea m me Aavvtea ovrn,v, Re9iov�E omavi rna Sxli lxmenI Area B.—d" E.p... n- MTSA as d1iq -d h the adopted D11— Replonzl CFicial Plen Page 3 Figure 1: Courtice MTSA Figure 2: Bowmanville MTSA 1.3 Prior to passing a transit station charge by-law, the proposed legislation lists several steps that must be completed, including: • A background study, which must include notice to and consultation with the public; and • A Council resolution requesting the Minister of Infrastructure's consent to pass a by- law to use this funding tool. The Minister may specify modifications to the by-law at such time. 1.4 A transit station charge by-law shall be guided by the following objectives: • To support the creation of local and regional transit connections; • To encourage the creation and growth of transit -oriented communities near the GO Transit station; and • To recover costs related to the construction of the GO Transit station in a reasonable, transparent, and fair manner. It is noted that GO Transit stations are provincial infrastructure. 1.5 The by-law must include a map of the area where the fee would be imposed, specify conditions for the fee to apply, and the fee amount. The fee would be payable at the time a building permit is issued and can be used to recoup the costs of both the design Municipality of Clarington Report PDS-059-23 Page 4 and construction of a station that the municipality has incurred. Fees can continue to be collected until the total cost of the station is recovered. 1.6 This is an optional funding tool that would allow the cost of a new transit station to be funded over many years by multiple development projects. Currently, GO Transit stations are typically funded by a single development project in collaboration with Metrolinx. This market -driven model would continue to be in place where municipalities opt not to implement a transit station charge. 1.7 Subsequent regulations will be proposed that will identify which municipalities will be able to access this tool, further define what information must be collected as part of the background study, the types of development that may be excluded from the charge, and the necessary components of the by-law. It is also understood that Municipalities proposing to use the tool would be expected to provide for a reduction in other development -related costs to help offset this new fee. 1.8 The proposed GO Transit Station Funding Act, 2023 is currently posted on Ontario's Regulatory Registry for a 30-day commenting period, closing October 25th. Staff has undertaken a preliminary review of the proposed legislation. General comments are included in Section 2, below. 2. General Comments 2.1 Planning and Infrastructure Services staff is supportive of new funding tools, and opportunities to work with the Province to advance the development of new GO train stations in Courtice and Bowmanville, the surrounding transit -oriented communities, and local transit connections. 2.2 The proposed legislation is very general in nature. Additional detail is to be prescribed by regulation. The Province is requested to provide clarification and the additional information noted to enable municipalities to understand better the areas of applicability, types of development that can be included, and the municipal responsibilities relating to both the implementation of the tool and the costs and resources associated with transit station development that would be assumed by municipalities choosing to implement the tool. Specific comments are included below. 2.3 The Province is requested to specify that the legislation will apply to lands within Major Transit Station Areas as they are designated in municipal official plans. 2.4 The Province is requested to clarify which costs related to the construction of the GO Transit station would be the responsibility of municipalities to fund and recover. Specifically, staff understands that in using the tool, a municipality would take on some or all of the design and construction of the transit station, which is provincial infrastructure. This would come with financial risk associated with carrying the cost until Municipality of Clarington Report PDS-059-23 Page 5 such time as the surrounding area builds out and the costs are recovered through the development fee. Additional information regarding the particulars of such an arrangement is requested. 2.5 The Province is requested to provide terms of reference for the background study to ensure municipalities have the information required to determine whether to pursue the use of a transit station charge by-law, prior to expending the considerable time and resources required to complete the study. For example, details related to the idea that municipalities would reduce other development -related costs. 2.6 The Province is requested to specify in the legislation that a transit station charge by- law passed by a municipality shall be deemed to be effective back to the day the proposed GO Transit Station Funding Act, 2023 came into force. This is necessary to provide municipalities the time required to complete the background study, while continuing to process development applications within the MTSA areas in support of housing, and to ensure the charges are distributed equally across the whole of the applicable area. 3. Public Consultation 3.1 The proposed GO Transit Funding Act, 2023 is currently posted for public comment on Ontario's Regulatory Registry until October 25, 2023. Any member of the public has the opportunity to provide comments to the Province. 3.2 If the proposed legislation is passed, the Municipality will hold public consultation as part of the background study process to hear comments from affected property owners. 4. Financial Considerations 4.1 In order to pass a by-law to implement a transit charge within Clarington's two MTSAs, a background study would have to be conducted. If proposed Bill 131 is passed, and Council wishes to pursue the implementation of this tool, funding for the required background study would be necessary. 4.2 The implementation of the proposed funding tool would require the municipality to front- end certain costs related to the design and construction of new GO Transit stations, with the understanding that developments within the identified area would contribute to the recovery of those costs over time. As part of the background study and proposal to the Province, municipalities opting to use the tool must demonstrate they have sufficient borrowing capacity. Municipality of Clarington Report PDS-059-23 5. Concurrence Page 6 5.1 This report has been reviewed by the Deputy CAO/Treasurer who concurs with the recommendations. 6. Conclusion 6.1 The purpose of this report is to (i) summarize the proposed legislation, and (ii) provide high level comments for Council's consideration and submission to the Province. 6.2 The proposed legislation represents an opportunity for Clarington to work with our regional and provincial partners to bring GO train service to Courtice and Bowmanville. Staff is supportive of the proposed new funding tool and requests that the comments herein be considered. 6.3 It is respectfully recommended that the Council receive the information, and endorse the comments included in Section 2 of this report. 6.4 If the proposed legislation is passed, it is respectfully recommended that the Municipality hosts a meeting to provide the opportunity for the public to comment on the use of the new funding tool in Clarington. Staff Contact: Sarah Allin, Principal Planner, 905-623-3379 ext. 2419 or sallin@clarington.net. Interested Parties: List of Interested Parties available from Department.