DEVELOPMENT SERVICES COMMITTEE
	TO:	Mayor and Members of Council
	FROM:	Jim Baird, Commissioner of Development Services Alan Brown, Director of Engineering Valerie Shuttleworth, Director of Planning and Urban Design
	PREPARED BY:	Jamie Bosomworth, Project Coordinator, Capital Works
	DATE OF MEETING:	2003-Oct-14
	SUBJECT:	Water Allocation Distribution (2003)

RECOMMENDATION:

That the Development Services report entitled “Water Allocation Distribution (2003),” dated October 14, 2003, be received;

And That the allocation of water to specific planning districts as identified in Appendix “A” be endorsed;

And That the allocation to specific planning districts be subject to conditions as listed in Appendix “B”;

And That the Town reserve the right to revoke or reallocate water allocation at its sole discretion;

And That staff report back in January 2004 with a recommended water allocation policy for high-rise residential developments;

And That staff report back in spring 2004 with an update to the 2003 allocation and with recommendations for the distribution of the 2004-2011 (±11,466 units) additional water allocation.

PURPOSE:

The purpose of this report is to recommend the distribution of water allocation to specific secondary plan areas from the Town reserves.

BACKGROUND:

Original guidelines and policy for distribution of water.

At its December 15, 1998 meeting, Council approved a policy and guidelines with respect to the allocation of water for future development. The main points included in this policy are summarized as follows:

• Allocation of available water supply and any amendments to this allocation are at the sole discretion of Council;
• Water supply is allocated by the Town to each secondary plan area. The Trustee of each Developers Group then assigns allocation to draft plans within the area, subject to the Town of Markham’s concurrence;
• Water supply reserve is maintained and allocated by the Town at its sole discretion;
• Water supply restrictions apply only to residential developments – institutional, industrial and commercial lands are not subject to restrictions and do not require allocation;
• The Town reserves the right to revoke or reallocate water supply, at its sole discretion.

Council adopted additional guidelines for distribution of water allocation.

On December 10, 2002, Council adopted the following additional guidelines for future distribution of water allocation from Town reserves:

· 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 demonstrates exceptional urban design.

Council adopted policy to grant draft plan approval where water allocation is not currently available.

Council, also on December 10, 2002, adopted policies to grant draft plan approval where water allocation is not currently available. If a residential draft plan does not have water allocation available it may proceed to draft plan approval if water will be available within 2 years (including EA approval and land acquisition). This would allow the developer to continue with the approval process (i.e. clearing draft plan conditions, engineering design, etc). The approval would be subject to the following conditions:

· The imposition of a holding “H” symbol on the zoning of the lands, until water allocation is confirmed;

· An agreement registered on title prohibiting pre-selling of lots to any builder;

· A phasing agreement be entered into;

· Developer acknowledge in writing that it would save the Town harmless from any claim or action as a result of water supply not being available when anticipated; and

· Financial agreement in place and funding provided, if up-front financing is appropriate.

In situations where the appropriate infrastructure will not be available within 2 years or the EA approval and land acquisition for required infrastructure is outstanding, a two-step approach to draft plan approval was adopted. Notice of final draft approval would not be issued until Regional and Town staff are satisfied that water supply will be available within 2 years. Council would endorse the plan, zone the lands with a “Hold” and authorize staff to grant final approval of the draft plan, subject to conditions, when water would be available within two years.

Region of York finalized Optimization Study

On June 17, 2003, staff provided an update on water allocation and supply to Development Services Committee, after receiving input from the Region of York relating to their Optimization Study. The Region was able to negotiate an additional 20 ml/d of water supply from Toronto for immediate use during 2003. This translated into an additional water supply of 2,738 units being granted to the Town in June 2003. In addition, the Region confirmed that with the construction of supporting infrastructure for the Peel supply (e.g. McCowan Road reservoir), an additional ±11,466 units, would be available to the Town in January 2006. Staff recommended the 2738 units be added to existing Town reserves. Staff would then prioritize the allocation to specific secondary plan areas, based on the guidelines approved by Council in December 2002 and report back to Committee in the fall with recommendations for distribution of the Town Reserves.

OPTIONS/DISCUSSION:

Proposed allocation, September 2003

On September 9, 2003, staff presented to Development Services Committee proposed distribution of the Town reserves to specific secondary plan areas based on the following three factors:

· Ranking of each secondary plan area based on the guidelines adopted by Council in December 2002;

· Current status of water allocation within each secondary plan area; and

· Anticipated needs for each secondary plan area to the end of 2004.

Staff also recommended continuing to hold allocation in reserve for developments that Council determined were appropriate, well conversions (for Cachet, Jennings Gate and Box Grove areas) and infill for non-secondary plan developments. It was recommended that staff meet with the development industry to discuss and finalize the proposed allocations.

Proposed allocation reviewed and revised

Staff met with representatives of each secondary plan area on September 17, 2003 and presented the proposed allocations for discussion. Following the discussion, it was agreed that each secondary plan area Developers Group representative would realistically identify their development needs to 2004. After further review of anticipated infill developments within the next two years, and input from the development representatives, staff re-worked the proposed allocations.

Staff recommend secondary plan areas with predominantly low-density development (Berczy, Cathedral, Cornell, Greensborough, South Unionville, Villages of Fairtree and Wismer Commons) receive allocation allowing them to continue building activity for the next one and a half years. Staff also propose allocation for Milliken Main Street, as an incentive to spur redevelopment, since the Milliken Main Street study was recently approved. Additional allocations to Markham Centre and Times/Galleria have been deferred to January 2004 pending recommendations of a water allocation policy for high-rise developments. The table attached as Appendix “A” identifies staff recommended distribution of water allocation.

Water Allocation granted with conditions

Staff have based the recommendations for the distribution of water on guidelines established by Council. To ensure all Developers meet these guidelines, conditions, specific to each secondary plan area, are recommended. The implementation of conditions will be identified through updates or completion of phasing plans and secured through agreements (e.g. phasing agreement, development agreement, subdivision agreement) specifying timing of delivery of infrastructure, where necessary. Conditions of draft plan approval will also identify these requirements. The secondary plan area conditions are outlined in the table attached as Appendix “B”.

Policy for allocating water to high-rise developments

For low-density developments, the Town can restrict development sales through the draft plan approval process. High-rise development is different. Landowners may, under the current legislation, pre-sell multiple units in condominium projects without Town approval. This may create problems where sales are conducted and water supply is not available for some time, leaving purchasers with deals that cannot be completed. In addition, the approval and construction process from pre-sales to occupancy for high-rise developments can take as long as 2 years. Therefore, the Town needs to set policies in place to determine when we can allocate water to high-rise developments in relation to the timing of the actual supply of water being available and sales and construction period of the developments. Staff will bring to Committee, in January 2004, a recommended policy for the distribution of water allocation to high-rise developments.

Staff report back in spring, 2004 with an update to the current allocation and recommendation for distribution of additional allocation.

The Region of York has identified an additional water allocation of ±11,466 units can be granted to the Town of Markham in 2004, based on water supply being available in 2006. Staff will meet with the development industry to discuss distribution of this allocation fairly and equitable and report back to Council in the spring of 2004.

Using the policy of draft plan approval were water will be available within two years, adopted by Council in December 2002, draft plan approval can be issued subject to a number of conditions. This approval is contingent on the Region of York meeting their schedule for the delivery of the required infrastructure for this water supply. The report to be brought forward in the spring of 2004 will address the timing of pre-sale agreements, pre-servicing of subdivisions and registration based on the construction schedule from the Region of York.

Staff will also update Committee on the status of development applications that have existing water allocation. If certain developments have not proceeded through the planning process far enough to commit to occupancy by 2006, there may be an opportunity to transfer allocation. This may free up allocation for those developments that can commit to occupancy prior to January 2006.

ATTACHMENTS:

Appendix “A” Summary of Recommended Allocation, October 2003

Appendix “B” Recommended Conditions

Alan Brown, C.E.T. Director of Engineering

Valerie Shuttleworth, M.C.I.P., R.P.P. Director of Planning and Urban Design

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

Commissioner of Development Services

Q:\Development\Engineering\REPORTS\2003\10\Water Allocation Distribution of Reserves.doc