RECOMMENDATION:
That a Public Meeting be
held to consider the Zoning By-law Amendment application (ZA.04-009009), and
any other required applications, by Old Kennedy Co-operative Development
Corporation to permit 160 townhouse and stacked townhouse units and 8 commercial units at 90 and 108 Old Kennedy
Road.
And that staff
schedule a Public Meeting when the issues outlined in the May
18, 2004 preliminary report
have been sufficiently addressed by the applicant.
PURPOSE:
The purpose of this report is to provide preliminary information
regarding zoning and site plan applications by Old Kennedy Co-operative Development
Corporation to permit 160 townhouse and stacked townhouse units and 8 commercial units at 90 and 108 Old Kennedy
Road, and to recommend that a Public Meeting be held to
consider the zoning application and any other required application, once the
issues outlined in this report are addressed to the satisfaction of staff.
BACKGROUND:
Subject lands and area context
The subject lands comprise approximately 1.57 hectares (3.88 acres) at 90
and 108 Old Kennedy Road as
shown on Figure 1. The lands currently
contain single-detached dwellings. The
dwelling at 90 Old Kennedy Road
is presently occupied, while the dwelling at 108 Old
Kennedy Road is being used for office
purposes. The rear portions of both 90
and 108 Old Kennedy Road
are being used for outdoor storage. Surrounding
land uses include a newly constructed light industrial building to the south,
the GO rail line to the west and vacant lands to the north (see Figures 2 and
3). To the east, across Old
Kennedy Road, are lands currently used for
employment uses. An application for
townhouse development is being processed for lands generally east of the
subject site, across Old Kennedy Road.
Subject lands are within the Milliken Main Street study area
The subject lands are within the Milliken
Main Street study area. The study is being undertaken with
the purpose of developing a “main street” focus for the Milliken
community. A draft Secondary Plan has
been prepared for the Milliken Main Street study area
based on the urban design principles of the Urban Design Concept Plan, which
was endorsed by Council in July, 2003.
An implementing draft zoning by-law amendment has also been prepared and
will be brought forward with the draft Secondary Plan for Council approval in
the near future.
The draft Secondary Plan designates the
majority of the subject lands as Community Amenity Area – Mixed Use, which
permits a mix of medium and high density residential and office uses. The lands fronting Old Kennedy Road are proposed to be designated Community Amenity – Main Street,
which permits a mix of residential and commercial uses, with commercial uses
required at grade to provide a
“main street” character along Old Kennedy Road. The
draft Secondary Plan also proposes a north-south road along the GO rail line,
linking Thelma
Avenue
to the south with Victory Avenue to the north.
Proposal is for 160 townhouse and stacked townhouse units on a private road, with 8 retail units fronting Old
Kennedy Road
The proposal, as shown on the site plan
and elevations shown in Figures 4 and 5, consists of 160 3-storey townhouse and
stacked townhouse units on a private road, with 8
retail and residential units fronting Old Kennedy Road. The unit mix consists of
23 one-bedroom units, 94 two-bedroom units, 25 three-bedroom units and 18
four-bedroom units.
A private road borders the proposed
development on the south, west and north.
A 17 metre road allowance, to accommodate the proposed future Thelma Avenue/Victory Avenue link, is being protected for at the western limit of the property.
Parking is proposed to be provided
entirely underground (205 spaces) with access to the underground parking garage
from the interior of the site.
Proposal would comply with Official Plan, Zoning amendment
is required
The
development would comply with both the proposed Community Amenity – Mixed Use
designation in the draft Secondary Plan and the existing Community Amenity Area
designation in the Official Plan. The
Community Amenity Area designation permits a range of retail, service,
community, institutional and recreational uses, and medium and high density
housing at appropriate locations.
The subject
lands are zoned (H)CA – (Hold) Community Amenity in By-law 47-85. The (H)CA zone on 108 Old Kennedy provides
for a range of retail, office and recreational uses consistent with the
Community Amenity designation in the Official Plan. The Hold provision is subject to the
submission of a traffic impact study and implementation of any required
transportation improvements. The (H)CA
zone on 90 Old Kennedy Road provides for a range of retail and office
uses, and also for a 61-unit apartment building. The Hold provision is subject to the
submission of a traffic impact study and implementation of any required
transportation improvements, as well as the availability of adequate municipal
services, and the resolution of safety and noise issues related to the
proximity to the rail line.
A zoning amendment on both properties is
required to permit the proposed development.
An implementing zoning by-law for the Milliken Main Street Secondary
Plan is currently being finalized. The
proposed development is consistent with the general provisions of the proposed
implementing by-law, however further changes to specific provisions, e.g.,
setbacks, etc, may still be required.
Development
proposed to be an affordable home ownership demonstration project
The
proposed development is intended to be a demonstration project for a new
affordable home ownership concept in Markham, based on the Options for Homes model. The development is being sponsored by Markham
Community Homes Inc, which is a community based non-profit organization
established to promote and develop non-profit housing for low and modest income
households in Markham (see Appendix ‘A’). Markham Community Homes, with seed funding
from CMHC (Canada Mortgage and Housing Corporation), has sponsored the
development of the Old Kennedy Co-operative Development Corporation (the
applicant). This co-operative will be
comprised of prospective purchasers of the units within the proposed
development. Once the development is built out, the co-operative will become a
condominium corporation.
Options for Homes Model
Old
Kennedy Co-operative Development Corp has retained Options for Homes Non-Profit
Corporation (Options for Homes) as their development consultants. Options for Homes is a private non-profit
company which specializes in the development of ownership housing which is
affordable to low and moderate income households.
The Options for
Homes model consists of the following elements:
·
A cost
effective, low capital cost approach to housing development;
·
Access to
deferred payment/interest loans for non-profit co-operatives; and
·
Assistance
in applying for financial incentives from all levels of government.
These elements are
summarized below. More details on the Options
for Homes model is provided in Appendix ‘B’.
Cost effective,
low capital cost approach to housing development
Development costs
are minimized by purchasing low cost development sites, reducing marketing and
soft costs, excluding certain upgrades and indoor recreational facilities;
eliminating the profit margin requirements of private developers and
coordinating cost-effective planning, architectural, and contractor
services. Options for Homes maintains
that this low capital cost approach can account for as much as a 20% reduction
in the cost of building a unit. The
model discourages investor speculation by:
·
Selling only one
unit per household;
·
Charging a fee to
become a prospective purchaser;
·
Requiring 10% of
any rental income to be payable to the condominium corporation if the unit is
rented out;
·
Requiring the
second mortgage (see below) to be repaid if the unit is rented for more than
two years.
Access to
deferred payment/interest loans for non-profit co-operatives
Options for Homes also has access
to loans from the Home Ownership Alternatives Non-Profit Corporation (HOA),
which is a trust foundation established to provide deferred payment/interest
loans to qualifying non-profit co-operatives.
Options for Homes will assist the applicant in accessing an HOA loan,
which will be offered as a second mortgage to purchasers. This second mortgage is designed to increase
the affordability of housing for first time purchasers while discouraging
speculation flipping and renting of suites.
The HOA mortgage represents
the difference between the market value of the suite and the cost to create it,
or the equivalent of approximately 15% of the purchase price as a contribution
to the purchaser’s downpayment. No payments
are required on the mortgage for either principal or interest until the unit
owner sells or rents out the unit, at which point the entire amount of the loan
is due plus any interest. Interest is
based on the appreciation in the value of the suite.
The proceeds of the
shared-appreciation mortgage are required to be used to fund further non-profit
housing developments in the municipality, based on the Options for Homes
model. The intent is that the repaid
mortgage funds be used to expand the availability of affordable housing in
Markham or York Region.
Illustration 1 and 2 of Appendix ‘B’
provides a comparison of this affordable co-operative condominium concept to
typical private luxury condominiums. The
key component of the concept is the HOA deferred loan in the form of a second
mortgage.
Assistance in
applying for additional financial incentives from all levels of government
The
Options for Homes model does not require additional government subsidy to be
successful, however federal and provincial assistance, and municipal financial
assistance in the form of deferral or exemption from municipal fees and
charges, are actively pursued to increase the opportunities for the development
of affordable projects, and also to increase the affordability of specific
projects.
In this case, in addition to
CMHC seed and predevelopment funding, Markham Community Homes will be applying
for demonstration project funding under the Affordable Home Ownership Program
of the CMHC/Ontario Affordable Housing Program Agreement. If approved, the Federal/Provincial funding
would allocate approximately $8000 per unit in grants that could be made
available as a third mortgage to lower income earners. A Memorandum of Understanding would be
required to secure the use of Federal/Provincial funding for affordable housing
purposes.
Options for Homes will also
assist in seeking approval from the Town and the Region of York for deferred
payment of development charges and cash in-lieu of parkland dedication to
further expand the third mortgage available to the very low income
earners. An Affordable Housing agreement
under the Region’s Municipal Capital Facilities By-law or an appropriate
alternative legal arrangement would be required to secure the use of
Region/Town funding for affordable housing purposes and the recovery of any
monies that were deferred within a specified time period.
On March 2, 2004, as part of a
presentation to Part A of Development Services Committee, the applicant
requested that the Town consider deferring zoning and site plan application fees. On March 9, 2004 Council approved the
partial payment of processing fees (in the amount of $5,000) and deferral of
the remaining processing fees (in the amount of $47,000) until the
recommendation report is brought before Council. On March 30, 2004, Council approved a Terms of Reference as the basis
of a detailed study of potential financial incentives for affordable housing as
part of a larger Town Affordable Housing initiative. The applicant will be pursuing any applicable
financial incentives arising from this study, but has committed to paying the
full amount of planning processing fees upon Council’s decision on the site
plan and zoning applications, if financial strategies are not in place.
POTENTIAL BENEFITS OF APPROVAL OF THE
PROPOSAL:
Some of the
anticipated benefits include:
·
The
proposed land use (medium/high density residential with mixed-use along Old
Kennedy Road) conforms with the vision for the Milliken Main Street area and
has the potential to provide a catalyst for further development within the
Milliken Main Street area;
·
The
proposed development would provide affordable ownership housing; and
·
The
proposed development is transit-supportive.
CONCERNS/ISSUES TO BE RESOLVED:
The following is a brief summary of
concerns/issues raised to date. These matters, and any others identified
through the circulation and detailed review of the proposal, will be addressed
in a final staff report to be presented to Committee at a later date:
·
Conformity with the draft Milliken Main Street Secondary Plan and the
Milliken Main Street Urban Design Guidelines endorsed by Council in July, 2003;
·
Consideration of the impact of the proposed development on the
development potential of other lands in the vicinity;
·
Appropriateness of the site layout including required setbacks, road
widths, etc;
·
Requirements for open space/play area within the subject lands;
·
Provision and location of
adequate parking;
·
Accommodation of required road
right-of-ways with respect to the proposed Thelma Avenue/Victory Avenue link
and other local road connections;
·
Servicing and stormwater
management;
·
Noise and vibration impact of
the GO rail line;
·
Financial contributions with
respect to an area-specific development charge by-law expected to be prepared
for the Milliken Main Street study area;
·
Water allocation; and
·
Financial implications with respect to the affordable housing nature of
the development and requested financial assistance from the Town.
FINANCIAL CONSIDERATIONS:
Council has
approved the partial payment of planning processing fees (in the amount of
$5,000) and deferral of the remaining processing fees (in the amount of
$47,000) until the recommendation report for these applications are brought
before Council. The applicant will also
be pursuing any financial incentives/strategies which may arise from the Town’s
Affordable Housing Financial Incentives study which is currently underway.
BUSINESS UNITS CONSULTED AND AFFECTED:
All Town departments and external
agencies have been circulated with these applications and all comments will be
considered in a final report.
It would be
appropriate to schedule a Public Meeting after the issues/concerns raised in
this report have been addressed to the satisfaction of staff.
|
|
|
|
|
Valerie Shuttleworth, M.C.I.P., R.P.P.
Director of Planning & Urban Design
|
|
Jim
Baird, M.C.I.P., R.P.P.
Commissioner of Development Services
|
Figure 1: Location Map
Figure 2: Air Photo
Figure 3: Area Context/Zoning
Figure 4: Site Plan
Figure 5: Elevations
