Report to: Development Services Committee Date of Meeting: October 17, 2006

SUBJECT: West Cathedral Community

Highway 404 Ramp Extension at Major Mackenzie Drive

PREPARED BY: Alan Brown, Director of Engineering

Nehal Azmy, Senior Capital Engineer, ext. 2197

Bob Boxma, Assistant Town Solicitor, ext. 4745

RECOMMENDATION:

THAT the staff report entitled “West Cathedral Community, Highway 404 Ramp Extension at Major Mackenzie Drive”, dated October 17, 2006, be received;

AND THAT Nichols Boulevard extension north of Major Mackenzie Drive to Street B not be protected through the Fieldgate Developments plan as a municipal road;

AND THAT the Highway 404 ramp extension north of Major Mackenzie Drive be protected through the Loblaws Properties site plan and Majorwood Developments plan of subdivision to be confirmed through the Class EA process;

AND THAT the cost of the Highway 404 northbound ramp extension at Major Mackenzie Drive be included in the Development Charges update;

AND THAT the Ontario Ministry of Transportation be requested to support the Class Environmental Assessment for the extension of the Highway 404 ramp at Major Mackenzie Drive;

AND THAT staff report back with the Class Environmental Assessment for Council’s approval to file such study with the Ministry of Environment;

AND THAT B. McCuaig, Assistant Deputy Minister for the Ontario Ministry of Transportation and Bruce McGregor, Commissioner, Transportation and Works for the Regional Municipality of York, be advised accordingly.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of this report is to obtain Council approval for the following.

Ø The Highway 404 ramp extension north of Major Mackenzie Drive to be protected in Loblaws Properties Limited/Majorwood Developments plans.

Ø The extension of Nichols Boulevard north of Major Mackenzie not be protected as a municipal road.

Ø The proposed Highway 404 ramp extension be included in Development Charges update.

BACKGROUND:

The Markham Transportation Planning Study recommended the Town protect for and construct when required, ramp extensions for Highway 404 into Business Parks at Highway 7, Major Mackenzie Drive and Elgin Mills Road. This would improve the level of service on the East/West arterial roads and at its intersection with the business parks. In the Cathedral Secondary Plan, provision for the ramp extension has been included in draft plans north of Major Mackenzie Drive and Elgin Mills Road as per Attachment ‘A’. The Hwy 404 ramp extension north of Major Mackenzie Drive, would impact Majorwood Developments and Loblaws Properties depending on the final alignment to be approved under the Class EA study.

In November 2005 York Region adopted Official Plan Amendment # 123 (Cathedral Community Secondary Plan). This amendment included specific policies relating to the proposed Hwy 404 off-ramp extension north of Major Mackenzie Drive.

Schedule ‘BB’ – Transportation Plan of the Cathedral Community Planning District (PD 39-1), as amended, indicates conceptual alignments for both the Highway 404 Off-ramp extension and the Nichols Boulevard extension north of Major Mackenzie Drive as Minor Collector Roads.

Schedule BB also indicates that the proposed Highway 404 off-ramp extension into the Secondary Plan area north of Major Mackenzie Drive is subject to a special policy that states that the off ramp extension shall be subject to a feasibility study to be carried out by the Town of Markham in consultation with York Region, Richmond Hill and MTO and/or a Class EA study.

Furthermore, this policy states that the Nichols Boulevard extension shall only be constructed if the Town of Markham determines that the Highway 404 ramp extension north of Major Mackenzie Drive is not feasible. The precise alignment and location of this road, if required, will be determined at the site plan or subdivision approval stage.

In June 2006, Council approved Phase 1 of the Majorwood Developments draft plan of subdivision shown in attachment ‘B’. The phase 1 draft plan included a provision to accommodate the Highway 404 Off Ramp Extension through the Loblaws property and Majorwood Developments connecting Major Mackenzie Drive to Markland Street. If the off ramp extension proved unfeasible, lots along the eastern half of Street B were left out of the Phase 1 draft plan approval to allow for a northward extension of Nichols Boulevard through the Loblaws/Fieldgate plan Street B to provide an alternative collector road connection to the community as noted in Attachment ‘B’.

In June 2006, when Majorwood Subdivision received draft plan approval, the ultimate configuration and feasibility of the proposed Highway 404 off-ramp extension was unknown, pending finalization of the subject Class Environmental Assessment study. In order to allow draft plan approval to proceed in a timely manner, while at the same time avoiding premature designation of an alignment for the off ramp extension, the Town included the following conditions of draft plan approval, which applied to the blocks within the plan of subdivision that were within the study area for the Highway 404 off ramp extension:

• Prior to issuance of draft plan approval, the owner was required to execute an agreement with the Town not to pre sell the blocks subject to the Environmental Assessment study area until the EA study has been approved and any revisions to the draft plan to incorporate the approved alignment of the Highway 404 off ramp extension, as set out in the EA study, have been completed;
• Furthermore, that the blocks subject to the Highway 404 off ramp EA study shall not be released for registration until the EA study has been approved; that red line revisions have been made to the draft plan to incorporate the preferred alignment; and that suitable arrangements have been made regarding the construction of the off-ramp extension.

In addition, the implementing zoning by-law places the blocks subject to the Highway 404 off ramp EA study under Holding Zone Provision. The Holding Provision is not to be removed until the above conditions have been met.

In March 2004, Loblaw Properties Ltd. submitted applications for Official Plan and Zoning By-law Amendments to permit development of a large format retail centre on the north side of Major Mackenzie Drive between Highway 404 and Woodbine Avenue. In April 2005, Council refused the application. The applicant appealed to the Ontario Municipal Board. The Town and the applicant reached a settlement, and Official Plan and Zoning By-law amendments for the proposed development were approved by the Ontario Municipal Board in December 2005, with the support of Council.

As part of the settlement of the appeals by Loblaw Properties Limited, Minutes of Settlement between the Town of Markham, Loblaw Properties Limited and Fieldgate Developments were executed on December 1, 2005. Paragraph 3 required Loblaws to convey a 20 m right-of-way to the Town in order to extend the northbound 404 off-ramp from its current terminus at Major Mackenzie through the Loblaws property to connect with Markland Street. The Town had until June 30, 2006, to advise Loblaws and Fieldgate if the ramp was not required. By agreement, that date was extended to November 30, 2006.

In July 2006, Loblaws Properties and Fieldgate Developments applied for site plan approval to develop the Lands east of Markland Street, north of Major Mackenzie Drive for a large format retail centre on Major Mackenzie Drive, south of the Majorwood plan of subdivision. The submission included the extension of Nichols Boulevard to the commercial lands only as a private commercial drive not connecting to Street B.

OPTIONS/ DISCUSSION:

Class Environmental Assessment

In June 2006, The Town retained a consultant to undertake the Class Environmental Assessment for the proposed Highway 404 northbound ramp extension at Major Mackenzie Drive. The purpose of the Class EA study is to provide opportunity for public and agency involvement, confirm the need for a ramp extension, recommend the preferred design concept including identification of property requirements, provide cost estimates and obtain preliminary approval from the Ontario Ministry of Transportation.

In order to expedite the Class Environmental Assessment so the Majorwood/Loblaws/Fieldgate applications can be finalized, two alternatives for the ramp extension through Loblaws/Majorwood (Attachment C & D) are being considered, The Class Environmental Assessment is scheduled to be completed by January 2007 and staff will report back to Council for authorization to file the study with the Ministry of Environment.

Development Charges Update

The background study for the Development Charges update is being completed and an allowance will be included for the Hwy 404 ramp extension at Major Mackenzie Drive which includes the works in the Highway 404/Major Mackenzie right of ways (structure, ramp relocation, road works, signals, etc). Works within the Loblaws site are the responsibility of Loblaws/Cathedral Development Group.

Traffic Analysis

An analysis was carried out as part of the Class EA study to assess the future need for Hwy 404 ramp extension north of Major Mackenzie Drive. The potential impact on traffic operations with and without the provision of a road extension extending northerly from the Highway 404 northbound exit ramp terminal to Markland Street was also reviewed. The modeling did not review the option of Nichols extension to Street B due to reasons outlined later in this report. Results from the analysis indicated that the provision of Highway 404 northbound ramp extension at Major Mackenzie Drive will improve the traffic operations at both the ramp terminal and along the arterial corridor as well as improve access to the adjacent proposed development.

The traffic analysis indicated that the Hwy 404 ramp extension to Markland Street would not be required until full build out of the Community (2016 – 2021). The Town will be monitoring the traffic conditions in the area and program the construction of the ramp extension accordingly.

Staff also note that the ramp extension will also contribute to the overall accessibility, exposure and visibility of the employment lands in the Cathedral Community, and connect these employment lands to existing and planned employment districts to the north and south.

Ontario Ministry of Transportation Approval

There are ongoing discussions with the Ontario Ministry of Transportation as part of the Class EA process to obtain approval of the concept for the proposed Highway 404 ramp extension. The Ministry has questioned the need to build the ramp extension and has requested additional detailed information to determine if they will support the proposal.

The Town staff position is that the ramp extension should be protected and approved by the Ontario Ministry of Transportation for installation when required (2016 -2021). Failure to protect the land required for the ramp extension would lose the option to construct it at a later date.

Nichols Boulevard extension

Although the Loblaw/Fieldgate and Majorwood draft plans have included the option of the extension of Nichols Boulevard as a municipal road north of Major Mackenzie Drive to Street B, staff do not support the connection as it will create a situation where a local road is being utilized as a collector which will result in resident opposition.

Furthermore the Nichols option is inferior to the Hwy 404 ramp extension from the point of view of opening up the employment lands adjacent to Hwy 404.

Business Park Development Potential

The business park lands in Cathedral are of growing interest to office and prestige individual space users in the GTA. The marketability of these lands is closely tied to their Hwy 404 frontage (valued for exposure, signage and showcase opportunities) and for easy access to and from Hwy 404 and adjacent employment lands. A direct northbound ramp off of the 404 at Major Mackenzie is a vitally important gateway into these lands. In the absence of this ramp, future business park users will be required to use Markland Drive and Woodbine By-pass. The absence of a northbound ramp would therefore diminish the functional attraction and marketability of these lands to attract top quality office/corporate employees.

CONCLUSION:

Staff recommend we proceed on the basis of the ramp extension and not extending Nichols Blvd to Street ‘B’ as a municipal road. This requires confirmation through the Class EA study for the Hwy 404 ramp extension, and the update to the Development Charges By-law.

Although there are risks in appeals to both the Class EA study and the updated Development Charges by-law, the Hwy 404 ramp extension should be protected and constructed when required. In addition the extension of Nichols Blvd to Street ‘B’ in the Majorwood plan is not supportable from a land use or accessibility perspective.

FINANCIAL TEMPLATE:

The total cost of the ramp extension at Highway 404/Major Mackenzie Drive intersection is currently estimated at $3.5 to $ 5 million depending on the final alignment and MTO requirements. An allowance will be included in the draft Development Charges update for public/Council review in the New Year

If Loblaws/Cathedral wish to advance the construction schedule, then negotiations as to a front ending agreement is required and staff will report back to Council.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Legal, Planning, Economic Development and Finance Departments have reviewed and commented on the report.

RECOMMENDED BY:

________________________ ________________________

Alan Brown, C.E.T. Jim Baird, M.C.I.P., R.P.P.

Director of Engineering Commissioner, Development Services

ATTACHMENTS:

Attachment A – Area Map

Attachment B – Majorwood Development draft plan

Attachment C – Proposed Highway 404 Ramp Extension at Major Mackenzie Drive

Alternative Alignment A

Attachment D – Proposed Highway 404 Ramp Extension at Major Mackenzie Drive

Alternative Alignment B