DEVELOPMENT SERVICES                        COMMITTEE                                                      

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Alan Brown, Director of Engineering

Valerie Shuttleworth, Director of Planning and Urban Design

 

 

 

 

PREPARED BY:

same as above

 

 

 

 

DATE OF MEETING:

November 22, 2005

 

 

 

 

SUBJECT:

Servicing Allocation

 

 

 


 

RECOMMENDATION:

 

That the November 22, 2005 report entitled “Servicing Allocation,” be received;

 

And that Markham Council allocate servicing capacity as noted in Appendix ‘A’;

 

And that the attached “Use it or Lose it” policy (Appendix “B”), be adopted;

 

And that the written submissions regarding servicing allocation, included in Appendix ‘D’ (distributed under separate cover), be received;

 

And that existing communities currently on private services, wishing to up-grade to municipal service will, not be prohibited from doing so due to servicing allocation;

 

And that staff be directed to continue to work with Regional staff to achieve additional servicing allocation capacity for Markham through all appropriate means, including but not limited to the following:

·        revised persons per unit assumptions that better reflect forecast population by dwelling unit type;

·        monitoring of actual usage rates;

·        additional flow control options;

·        re-rating of the treatment plant;

·        distribution of the regional reserve; and

·        incentives for development projects demonstrating more efficient use of servicing capacity and other resources, and in particular LEED certified projects.

 

And that staff report back regularly to Development Services Committee, regarding the status of servicing allocation and the ongoing discussions with the Region and affected stakeholders.

 

PURPOSE:

This report recommends Council’s endorsement of prioritizing and allocating available servicing capacity.  It also includes a discussion and update on the status of various policies related to the approval and timing of servicing allocation for low/medium density and high density residential development, and recommends adoption of a “Use it or Lose it” policy, as discussed in previous reports. 

 

EXECUTIVE SUMMARY:

Council approved the last round of servicing allocation in February, 2005, subject to Region of York confirmation of allocation to Markham.  That recommended allocation was confirmed by the Region in June, 2005.  Since June, staff have begun to process development approvals related to the 4,732 unit allocation approved by Council in February.  Also, in June the Region allocated an additional 1,268 units to Markham.

 

This report recommends distribution of all remaining allocation (6,000 unit allocation from the Region, plus 406 units proposed to be re-allocated from Shouldice Hospital) to Secondary Plan Areas and to specific projects, ready to proceed.  The recommended allocation (Appendix “A”) is based on previously approved criteria and other considerations (i.e. completing communities), as outlined in the February allocation report. 

 

Staff are proposing to amend current policies relating to residential draft plan and site plan approvals, where a servicing allocation is not immediately available.  Appropriate conditions are required, in addition to the Town’s servicing by-law now being in place, to ensure that approvals will not result in unauthorized sales or construction.  However, revised policies and conditions related to both low/medium density development and high rise development cannot be finally recommended until the appropriate “triggers”, related to timing of construction of infrastructure that delivers additional capacity, are determined.  Staff will report back to Committee, as discussion with the Region about the appropriate “triggers” proceeds.

 

Staff will also continue to work with the Region to gain additional servicing capacity for Markham through:

·        revised persons per unit assumptions that better reflect forecast population by dwelling unit type;

·        monitoring of actual usage rates;

·        additional flow control options;

·        re-rating of the treatment plant;

·        distribution of the regional reserve; and

·        incentives for development projects demonstrating more efficient use of servicing capacity and other resources, and in particular LEED certified projects. 

 

We will report regularly (either in writing or through Part A presentations) on these matters and the status of applications which have been granted allocation.

 

 

BACKGROUND:

On May 11, 2004 Markham Council, due to uncertainty of the status of sewage capacity, instituted a moratorium on further residential draft plan/site plan approvals until staff reported back on issues related to allocation. The number of “in process” residential dwelling units shown on active plans of subdivisions and site plans not yet approved nor allocated full servicing capacity is greatly in excess of current servicing capacity available to Markham from the Region of York.

 

Since May, 2004 Town of Markham staff have been working with Regional staff and consultants on modelling exercises regarding servicing capacity, infrastructure requirements and other possible options for meeting our servicing needs.

 

Following extensive consultation with the Region, staff presented a report to Development Services Committee in February of 2005 which confirmed that the Town’s remaining water allocation for an additional 4732 residential units (over and above existing draft plan and site plan approvals) could be matched with sufficient sanitary sewage capacity, subject to Regional Council approval of a flow control option in a local sanitary sewer.  The proposed assignment of that 4732 units of sanitary sewage allocation was based on guidelines adopted by Council in 2002 for prioritizing development as well as considerations for well conversions, existing and future infrastructure commitments, completion of development blocks and the developer’s ability to actually use assigned allocation in a timely manner.

 

Due to the limited amount of capacity available, staff also proposed to update the Town’s allocation policies to guide future approvals and allocations.  New policies for allocation and timing of allocation for low/medium density residential development, and a separate policy for high density residential development, were outlined in the February report and endorsed, in principle, by Committee and Council.  It was noted that these policies can only be adopted by Markham Council when the Region has finalized a 10 year implementation program outlining additional servicing allocation to be assigned to Markham, along with projected infrastructure delivery timelines on which to base future development approvals. 

 

Regional Council approved additional allocation and our proposed flow control option in June of 2005.  This resulted in an additional 1,268 units of allocation to Markham (over and above the 4,732).

 

DISCUSSION:

 

Partial Re-Allocation for Shouldice Hospital is recommended

Various approvals were granted to the Shouldice Hospital site in the late nineties.  These approvals permitted redevelopment of the property with 606 residential units.  To date, no new development has proceeded.  Staff recommend that 406 of 606 units of servicing allocation assigned to this site be re-allocated.  A report to Development Services Committee (also on the November 22, 2005 agenda) details the discussions with the land owner and our recommendations to amend the “hold” provisions appended to the zoning and the conditions of draft approval to reflect this reduction in allocation.  Staff will continue to monitor the progress of the status of the remaining 200  Phase I units.

 

Allocation Prioritization

Staff have again reviewed the guidelines for prioritizing allocation adopted by Council on December 10, 2002 and have utilized them as a basis for determining recommended servicing allocation.  The guidelines were based on the following criteria:

·        Completion of key transportation infrastructure (e.g. Markham By-pass, Box Grove By-pass, Victoria Square By-pass, major collector roads, etc.);

·        Implementation of Markham Centre;

·        Infill development and redevelopment along key transit corridors;

·        Affordable housing projects;

·        Provision of development with public benefits (e.g. community facilities and public infrastructure); and

·        Provision of development that supports the Town’s smart growth and new urbanism initiatives, and that demonstrates exceptional urban design.

 

Similar to recommended allocation in February, due to the limited amount of capacity available, and keeping in mind that additional capacity may not be available until 2011, consideration has also been given to:

·        Existing and future commitments for delivery of infrastructure;

·        Completion of development blocks (filling in the holes) and giving communities a “finished” look;

·        Ability to utilize allocation in a reasonable timeframe; and

·        Infill development ready to proceed.

 

Recommended Servicing Capacity Allocation

Based on the guidelines for prioritization of allocation, as discussed above, staff developed a proposed distribution of the additional 1,674 units (1268 additional units from the Region and 406 units from Shouldice).  This proposed distribution (Appendix “A”) has also deleted the reserve for well conversion, as the current servicing constraint is sanitary sewer, not water, capacity. The proposed distribution was presented to Development Services Committee on October 18th and to the development industry at a Developers Round Table meeting held on October 20th, in a draft form for discussion and comment.

 

Staff received many comments (both oral and written) on the proposed allocations and attended a number of meetings with developers to discuss the proposed distribution.  Written submissions received are available under separate cover (Appendix ‘D’), and will be provided to each Member of Council.  It would be an understatement to say that the current constraint on servicing capacity is a highly contentious issue in the development industry.  A number of developers have expressed serious concern that they are receiving very little or no new allocation at this time.  Concerns are particularly acute in this round, as there is no firm Regional commitment to additional allocation until 2011. 

 

Staff remain of the opinion that the recommended policy for prioritizing allocations and the proposed allocations set out in Appendix “A” are appropriate, given the limited supply available.  We also remain committed to working with the Region and all stakeholders to pursue all appropriate means to achieve additional capacity.

 

Based on the Council endorsed allocation criteria, feedback from Committee members and the development industry, and further consideration by staff, the table of allocations (attached as Appendix “A’) has been finalized.  The table also includes a summary of the February distribution of 4,732 units and revised totals, reflecting the June allocation from the Region.

 

The only change to the table from that which was considered by the Development Services Committee on October 18th is with respect to the recommended Wismer allocation.  While the total number of units has not changed, the proposed distribution to draft plans has.  These changes are a result of the Wismer Commons Developers Group reviewing our proposed assignment and requesting changes that the group collectively supports.  In proposing these changes, the group has kept our allocation criteria and guidelines in mind.  While staff support inclusion of the requested changes, it should be noted that 28 units proposed at Hammersly Blvd. north of Bur Oak Avenue, may not exactly fit our criteria and guidelines. However, agreement of the entire group on the proposed assignment is a considerable consideration and therefore staff have no objection.

 

The recommended allocation leaves no units in the Town reserve at this time.  It is believed that further capacity will be realized from revised persons per unit assumptions (see discussion below) and other means under discussion with the Region.  As additional capacity becomes available, it is intended to be placed in the Town reserve for allocation by Council on a priority basis.  All outstanding requests received (Appendix ‘D’) will be considered by the Town in determining future allocation assignments.

 

Allocation Policies:

 

New “triggers” to be determined and policy reviewed

As noted in the February, 2005 report, Markham’s approved allocation policy for development where required infrastructure was to be available within two years, but for which no immediate allocation was available, is no longer appropriate as it was based on “triggers” that have since proven to be inappropriate (lands acquired and the EA complete for required infrastructure). For example, the Region’s 16th Avenue sanitary sewer project met these tests, but was significantly delayed pending further environmental approvals, including the issuance of the water taking permit.  Determination of the appropriate triggers has yet to be agreed upon with the Region.  Staff continue to discuss the matter with the Region and will report back with final recommendations regarding this policy when appropriate “triggers” have been determined.

 

As well, this policy was based on a two-year “planning for service” window.  At the time, it was thought that two years was a reasonable time frame that matched the lifecycle of a project from draft approval to occupancy of the new home.  However, we believe that due to limited market supply arising from capacity constaints, this time frame has become shorter.  A more appropriate time frame may be one year (for low/medium density development).

 

Draft Plan/Site Plan Approval Without Allocation

Town staff have been in discussion for some time with the Region of York, other local municipalities and the development industry in regard to allocation policies and practises.  Staff recommend that Council consider granting draft plan/site plan approval to developments for which an immediate allocation is not available, only subject to the following additional conditions of approval:

 

·        a holding “H” symbol is appended to the zoning until servicing capacity and allocation by the Town is confirmed by the Town;

·        execution of an agreement between the developer and the Town whereby the developer agrees to prohibit pre-selling of lots until the holding symbol is lifted, such agreement to be registered on title

·        a phasing agreement is executed; and

·        the developer has acknowledged in writing that it shall save the Town harmless from any claim or action as a result of servicing capacity not being available when anticipated, satisfactory to the Town Solicitor.

 

In addition, the Town has enacted a By-law (2005-104) under section 34 (5) of the Planning Act which allows the Chief Building Official to withhold a building permit until services and servicing allocation are available.  With the above conditions in place and the Section 34 (5) By-law as final “back-up”, staff are comfortable with approvals proceeding.  In this manner the planning and public consultation process can proceed in a comprehensive manner, with release of lands for development to be phased, based on available servicing capacity.

 

A revised policy cannot be recommended for approval until the “triggers”, related to timing of delivery of required infrastructure, are finalized with the Region.

 

It is recognized that the timing of “Hold” removals, permit issuance and construction, in relation to the agreed upon triggers are different for high rise construction.  A discussion of appropriate principles for policies for low/medium and high rise development was included in the February 15, 2005, staff report.

 

Two separate policies will be presented to Development Services Committee for adoption when the “triggers” are finalized.

 

“Use It or Lose It”

In February of 2005 Council endorsed principles of a “Use It or Lose It” policy.  As capacity continues to become constrained, and as additional capacity may not be available until 2011, the policy should now be adopted (see Appendix “B”).  To date, assignments to Secondary Plan areas have been reviewed and in some circumstances revised.  As well, specific allocations to draft plan/site plans have been reviewed on a regular basis, and in several instances units have been withdrawn and reallocated.  Staff will continue to closely monitor projects to ensure progress toward agreements, registration, permits and construction. Staff will report to Development Services Committee regularly on this matter.

 

It is important to note that staff would not recommend withdrawal of specific allocation previously granted at the draft plan or site plan stage, without first notifying the developer/owner involved and advising of the date that the matter will be considered by Council.  It should also be noted that when rescinding allocation from a specific project and amending “hold” provisions and conditions of draft approval, such amendments may be appealed to the Ontario Municipal Board. 

 

Gaining Additional Allocation for the Town

 

Staff believe there are a number of options to pursue to achieve additional allocation for the Town.  They include, but may not be limited to,

·        revised persons per unit assumptions that better reflect forecast population by dwelling unit type;

·        monitoring of actual usage rates;

·        additional flow control options;

·        re-rating of the treatment plant;

·        distribution of the regional reserve; and

·        Incentives for development projects demonstrating more efficient use of servicing capacity and other resources, and in particular LEED certified projects. 

 

Persons per Unit Assumptions

The staff presentations to Development Services Committee on October 18th and to the development industry on October 20th  included a discussion of the person per unit (p.p.u.) assumptions.  It was noted that, to date, the Region has been using an average person per unit assumption of 3.2 to 3.4 for purposes of servicing capacity assignments.  Markham staff have questioned the appropriateness of this assumption in light of the types of unit we are assigning capacity to and actual persons per unit occupancy of new units.  The Town’s proposed allocation to development areas/projects (Appendix ‘A’) includes significant allocation to medium and high density projects having lower persons per unit.

 

Appendix “D” is a table that includes population calculated relative to the unit type allocations included in table “A”.  The table demonstrates that should we use p.p.u.’s by unit type from 2001 census and apply them to the unit types recommended for allocation in Appendix “A”, an additional 985 units of allocation would be available for assignment.  Similarly, if p.p.u. assumptions from Markham’s 2004 Development Charges Background Study are used, (based on forecast p.p.u.’s reflecting demographic trends) an additional 1,658 units would be available for assignment.

 

Markham staff recently met with Regional staff to request revisions to the p.p.u. assumptions, based on the Appendix “D” table.  Regional staff have agreed to review the request, in light of potential implications for all nine York Region municipalities, and get back to us shortly.

 

Next Steps

Markham staff will continue to work with Regional staff to realize additional servicing capacity through all appropriate means.

 

As additional servicing capacity becomes available, it is intended to be placed in the Town reserve for allocation by Council on a priority basis.  In considering future allocation, the Town will have  regard for the allocation criteria endorsed by Council, and all submissions received from stakeholders, including the Appendix ‘D’ submissions.

 

Staff will also report back to Committee regarding progress with the Region and finalization of allocation policies for low/medium density and high density development, as discussed in this report.

 

FINANCIAL CONSIDERATIONS:

Potential financial implications of a gradual reduction in the Town’s supply of residential units will be monitored and reported on regularly.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The Legal Department has reviewed this report.

 

APPENDICES:

Appendix ‘A’ –Summary of Assignment

Appendix ‘B’ – Use It or Lose It Policy

Appendix ‘C’ – Persons Per Units Assumptions Table.

Appendix ‘D’ – Written Submissions (distributed under separate cover)

 

 

 

 

 

 

 

 

Alan Brown, C.E.T.

Director of Engineering

 

 

___________________________________

Jim Baird, M.C.I.P., R.P.P.

Commissioner of Development Services

 

Valerie Shuttleworth, M.C.I.P., R.P.P.

Director of Planning and Urban Design

 

 

Q:\development\allocation\reports\servicing allocation final report 112205


 

APPENDIX “B”

 

SERVICING ALLOCATION “USE IT OR LOSE IT” POLICY

 

Where a specific development proposal has received draft plan or site plan approval and servicing capacity has been assigned, staff will monitor progress of the development through to construction.  Where servicing capacity has been allocated to a Secondary Plan area, staff will review progress of assignment to and approval of allocation  specific projects.

 

Where no “reasonable progress” has been made in moving an application forward, the servicing allocation to that development and/or Secondary Plan area may be reduced or withdrawn at Council’s discretion.  In the case of an approved development, a “hold” may be placed on the approval, and conditions of draft plan/site plan approval amended. 

 

“Reasonable progress” related to a specific development is considered to be:

·        subdivision agreement/site plan agreement requested within six months of draft plan/site plan approval being issued; and

·        agreement executed within one year of draft plan/site plan approval.

 

“Reasonable progress” related to a Secondary Plan area is considered to be:

·        first draft plan/ site plan approval within six months of assignment to area and continued and on-going progress of each individual draft plan.

 

This policy does not apply to an allocation of capacity to a Secondary Plan area where the allocation  has been made in return for delivery of specified infrastructure, and where conditions related to that assignment have been met.