RECOMMENDATION:
THAT the May 20, 2003, staff report, entitled
“Buttonville Crescent Sanitary Servicing – Community Improvement”, concerning a
request for information on the feasibility of designating Buttonville Crescent
area as a Community Improvement Area, be received as information.
AND
THAT full municipal servicing (sanitary, water and urban roads) for Buttonville
Crescent (East and West) be undertaken on the following basis:
·
sanitary servicing be funded by benefiting
landowners subject to Local Improvement Charges regulations;
·
watermains be included under the Operations and
Maintenance Capital Budget and funded by the Town through water rates (approximately $185,000);
·
watermain installation be concurrent with sanitary
servicing; and,
·
road restoration costs be funded by the Town
concurrent with sanitary and water components.
AND THAT provision of municipal sanitary sewers and watermains in the urban area
continue to be under the
provisions of the Local Improvement Charges Regulations (O.Reg.-119/03) unless alternative non-tax
related funding is available (i.e. developer funding, Infrastructure Program, etc.).
PURPOSE AND SUMMARY:
To
examine the applicability of Community Improvement policies to Buttonville
Crescent West Community and to
recommend the most appropriate option for the provision of municipal services. The report
concludes that a Community Improvement Project Area designation for the
Buttonville Crescent area would be a legitimate option if Council wishes to
provide Town grants, or loans, to property owners within the Community
Improvement Area. The Town can also, as part of the planned improvements for a
Community Improvement Area, upgrade public services as part of a capital
program. Community Improvement Area designation would distinguish Buttonville,
a Heritage Conservation District Study Area, from other developed parts of Town
requiring the extension of improvement of local services. However, the option
recommended by staff for local sanitary servicing, consistent with Town
practise, is Local Improvement Charges to benefiting landowners. The Town should fund watermain and local
road improvements concurrently (as outlined in the Town Engineer’s May 5
presentation to Finance and Administration Committee – attached as appendix B
to this report).
BACKGROUND
On
May 56,
2003, at a meeting of Finance and Administration Committee, the Director of
Engineering and the Director of Operations and Asset Management gave a brief
presentation on the status of municipal servicing in urban areas, current policies
and procedures, past practises and funding options.
Planning staff was requested at that meeting
to report to Development Services Committee on May 20, 2003, on the feasibility
of designating the Buttonville Crescent area as a Community Improvement Area
and that the report include time frames, logistics, planning aspects, and the
availability of Provincial grants. Legal Department staff was also requested to report back on
whether a 2/3’s consent of the property owners was required on infrastructure
deemed necessary by Town, due to health or safety reasons.
OPTIONS/DISCUSSION:
A preliminary
review of the criteria contained in the Markham Official Plan (both existing
and recently adopted policies) indicates that the Buttonville Crescent area
(Figure 2) could potentially qualify as a Community Improvement Project Area.
There are three potential options
for providing municipal services to the Buttonville Crescent area:
- financing mechanisms under Community Improvement
Area policies;
- Local Improvement; and,
- Area Specific Hard Services Development Charges.
This report examines all three of
these options.
Overview
of Options
The
community improvement provisions contained in the Planning Act provide
municipalities with a range of tools to stimulate investment and revitalization
(such as loans/grants/tax assistance for brownfield remediation, loans/grants
for façade improvements, funding for studies). To benefit from these
initiatives, the Planning Act requires that a municipality must first have operative
policies in its official plan and then enact a by-law that designates part, or
all of the municipality as a community improvement project area. Following
that, community improvement plans may be prepared.
Under the Planning
Act, Community Improvement Plans are required where a municipality
provides any form of grant or loan for improvements to private property owners.
These plans are however, generally used for broader based, comprehensive initiatives. For example to, to upgrade and improve
business/historical districts and for downtown revitalization projects, by providing grants and
loans for parking, aesthetic and economic improvements. They are intended to
implement improvements in a planned, co-ordinated manner, taking into account
local issues, priorities and financial resources to optimize municipal capital
expenditures. They enable municipalities to coordinate application of municipal
by-laws (zoning, property standards, business improvement areas) and apply
financing mechanisms to achieve comprehensive results.
Community Improvement Plans were
undertaken for Main Street Unionville and Main Street Markham in the mid-80’s
to take advantage of
Provincial grants that
were available at that time.
Provincial grants and capital funding were applied to servicing improvements, as well as for other enhancements such as decorative street improvements. Today, Ministry officials
advise that the only grants which may be available for Community
Improvements Project Areas
relate to business initiatives and therefore the costs of upgrading servicing by this option would be borne by the
municipality/property owners.
This is iUnder the Municipal Act, Local
Improvement provisions are specifically intended to deal with provision of
local infrastructure, such as sidewalkswatermains, sewers and road improvementscurbs. Approximately 20-30 Local
Improvement by-laws have been passed in the Town over the past 30 years under
which the benefiting property owners paid for the provision of local
infrastructure. The normal procedure is that where 2/3’s of the area residents
vote in favour of a local improvement, the municipality front ends the work and
collects back from benefiting landowners over a period of years on the tax
bill.
Finally, the Area Specific Hard Service Bylaw provisions under the Development Charges Act enables the Town to install certain municipal services and recoup costs over time through growth related
Development Charges. While this mechanism may be applied, it is preferred in areas undergoing active development
or redevelopment since
charges are only paid at
the time of issuance of building permits. Buttonville Crescent area is not currently subject to an Area-Specific Hard
Services Development Charge at this time, and is expected to undergo only
limited infill and redevelopment over time particularly given requirements for
retention of heritage structures.
Description
of Community Improvement Process
Plans
Steps
required forbefore
adoption of a Community Improvement Plan represent a significant time and
funding investment by the municipality. Once an area has been identified as
meeting the criteria for a Community Improvement area under the official plan
policies and Council is satisfied that it would benefit from a Community
Improvement Plan, the first steps in the process would be as follows:
- pass by-law to designate the Community
Improvement Project Area;
- establish the scope and goals of work to
be achieved through a Community Improvement Plan. It may be appropriate to
examine the land use permissions and other municipal issues (such as
property standards, historical preservation, aesthetic improvements which
will assist in encouraging investment) as part of the initiative;
- determine the range of grants
funding
and loan programs the municipality wishes to undertake to match the intent
of the goals of the plan;
- identify any other possible grants/loans
that may be available through the Province (this will require research and
consultation with the Provincial staff, although preliminary consultation
indicates that that financial incentives are very limited and probably
oriented to businesses and possibly brownfield redevelopment);
- consider the budget implications of
creating an appropriate municipal reserve to fund the development
incentives in advance; and,
- preconsultation with Provincial staff
concerning the proposed Community Improvement Plan.
Formulation
and adoption of the Community Improvement Plan follows the same process as
adoption of an Official Plan Amendment and the Community Improvement Plan must
be approved by the Ministry of Municipal Affairs and Housing (a detailed
outline of the process is attached as Appendix A to this report). A statutory
public meeting must be held and there is an opportunity for appeal of the Plan
to the Ontario Municipal Board. Details and procedures for administering the
grant and loan programs, including preparing application forms, establishing
procedures for issuing grants and loans, receiving loan repayments and
monitoring available funding must also be addressed.
Applicability of Community Improvement Plans
in the Current Buttonville Context
As stated earlier in this report, aA preliminary
review of the criteria contained in the Markham Official Plan (both existing
and recently adopted policies) indicates that the Buttonville Crescent area (Figure 2) would
qualify as a potential Community Improvement Project Area since it is an established
area in need of revitalization and enhancement of historic
character, and there is potential for infill and redevelopment. Staff would agree that
compared to other pockets of development across the Town that are in whole or
in part on rural services, the Buttonville community would qualify as a
candidate for a Community Improvement Area designation, and any associated
Council program or
funding for local services.
It
is noted that
however, that land use and heritage studies have already been
completed. In 1990, a land use study was undertaken which included the
Buttonville Crescent area and resulted in adoption of the Buttonville Core Area
Secondary Plan (Amendment 104) in 1993 and implementing zoning. The OPA and
zoning provide direction for the protection and preservation of the existing
heritage buildings while encouraging redevelopment, increased densities and
land use permissions. The Buttonville Crescent area has also been identified as
a Heritage Conservation District Study Area and was subject to a heritage study
in 1988. In 2000, money was allocated for development of a new Heritage plan, but that
study has not yet been initiated. As a result, of the above studies, land use
policies, redevelopment opportunities and heritage improvements have been, or will be,
addressed without necessarily requiring a Community Improvement Plan.
Timing
to undertake a Community Improvement Plan is difficult to estimate without
having established the scope of the work anddepending upon assessed the
staff and monetary resources available to conduct the project. and the extent
of community involvement. It is also difficult to estimate a
timeframe since there is a public consultation process that consultations would need to be undertaken with the public and
the Ministry as is an integral part
of the approval process. However,
it is anticipated that any initiative relating to a Community Improvement Area
designation and financing mechanism would extend into 2004..
Public
consultation has a significant role in formulating any Community Improvement
Plan because these Plans are comprehensive (affect a range of community issues)
and potentially have significant impact in directing the future of a specific
community/area. While a minimum of 1 statutory public meeting is required under
the Planning Act, it is likely there would be much more extensive consultation
with the landowners and businesses in formulating a Plan.
If
the primary purpose of a Community Improvement Plan for the Buttonville Crescent area is to develop a
comprehensive redevelopment scheme, then this has already been done through
past planning policy initiatives.
If
the primary objective is to address servicing in Buttonville, then a Community
Improvement Plan is an option, but it is not mandatory nor the most direct
option. Based upon Markham’s past practise, this is appropriately dealt with as
a Local Improvement. Council could also
extend direct capital funding without a Community Improvement Plan.
Description
of the Local Improvement Legislation
This
section describes the Local Improvement procedure, and responds to Council’s
request to report back on the question of whether the requirement for 2/3’s
consent of the property owners is necessary on infrastructure deemed necessary
by the Town, due to health or safety reasons.
In
January 2003, new legislation and regulations came into effect for Local
Improvements. Ontario
Regulation 119/03 made under the Municipal Act, 2001, sets out the
provisions applicable to Local Improvement Charges and permits Local
Improvement to be initiated by by-law of the municipality,
imposing special charges on lots abutting or benefiting from the work. Notice of the by-law is given to the public
and to the owners of the lots to be specially charged. Within 30 days after the municipality gives
the public notice, any owner identified to be charged may file an objection
with the clerk of the municipality. If the municipality wishes to proceed with
the local improvement, a hearing will be held by the Ontario Municipal Board.
Alternatively, landowners in opposition to the
undertaking may petition against the work. Any such petition against
undertaking work as a Local Improvement must be signed by a majority of the
owners representing at least one-half of the assessed value of the lots liable
to be specially charged for the work.
The last revised assessment roll is used to determine the value of any
lot. Once a petition is filed against a
local improvement, the municipality may not undertake the work for two years
after the date the petition is received.
Subsection 4(2) provides that where a municipality
has given notice of its intention to proceed with a Local Improvement, and a
petition against undertaking the work is received, the municipality is not
prevented from undertaking the work, if:
(a)
the
approval of the Ontario Municipal Board to undertake the work as a local
improvement is obtained; or,
(b)
a
recommendation from the Minister of Health and Long-Term Care or the board of
health for the municipality that the construction of the work is necessary or
desirable in the public interest based upon sanitary grounds is received.
Applicability
of Local Improvements in
the Current Buttonville Context
Notice
was sent to Buttonville Crescent area property owners by Engineering staff in
2001, advising that Markham intended to construct a sanitary sewer and
connections under the Local Improvement Act, and setting out the estimated
costs to the landowners. Nineteen notices were sent by registered mail, three
notices could not be delivered.
Estimated costs for works in the public right of way varied from $6,000
to $11,000 and internal sanitary servicing costs ranged from $15,000 to
$31,000. Thirteen property owners (a majority) petitioned against the Town
undertaking the construction of a sanitary sewer and connections. The Clerk’s
Department reviewed the petitions and advised that the work could not proceed
under Section 12 of the Local Improvement Act, as there was a majority
of property owners representing at least one-half of the value of the lots
petitioning against the work. There have been no changes to the petitioning
requirements in the new legislation so, unless the Town proceeds with
construction of servicing for health reasons, or secures approval for the work
from the Ontario Municipal Board, the minimum test for resident support is not
met and the work cannot proceed under the 2001 vote.
On
May 5, 2003, a presentation was
made by Engineering staff to Finance and Administrative
Committee
outlining how municipal servicing is provided in urban areas, current and past
practises, funding options and recommendations for Buttonville Crescent.
That presentation (Appendix B)
concluded that full municipal servicing should be undertaken for
Buttonville Crescent using the Local Improvement legislation as
follows:
·
sanitary servicing be provided through Local
Improvement Charges regulations;
·
watermains be included under the Operations and
Maintenance Capital Budget and funded through water rates (approximately
$185,000);
·
watermain installation be concurrent with sanitary
servicing; and,
·
road restoration costs be funded by the Town
concurrent with the sanitary
and water components.
Staff also
recommended that provision
of municipal sanitary sewers and watermains
in the urban area continue to be under the provisions of the Local Improvement
Charges Regulations (O.Reg.-119/03) unless alternative non-tax related funding is
available (i.e.
developer funding, Infrastructure Program, etc.)
Under the Local Improvement legislation a new vote can be conducted
every two years. Since
the last vote was conducted in August, 2001, a new one may be conducted again
in the Buttonville Crescent area in August of this year.
Since the August 2001 vote staff are recommending
that Buttonville Crescent services (water and road) be upgraded at the same
time as the sanitary sewer is installed. This will upgrade these streets to
current standards, make redevelopment of the area feasible and increase the
assessed value of properties in the area.
Area
Specific Hard Services
Development
Charges
The last option staff
has examined is passing
an area specific hard services development charges by-law
for the Buttonville Crescent area. These charges are established under the
Development Charges
Act for lands within
the urban boundary. They can apply to:
·
some roads and related infrastructure
·
watermains
·
sanitary sewers
·
stormwater management facilities
·
related studies
Development Charges bylaws enable a municipality to construct municipal
services related to an increased need for services and recover
the investment as an area develops, or redevelops. The process to be followed
is outlined below:
- determine that the capital costs of the
infrastructure are growth related
- develop background costing study and
policy
- prepare development charge by-law
- hold public meeting
- pass Development Charge By-law (there is
an opportunity for appeal of the by-law to the Ontario Municipal Board)
- construct municipal servicing
- recoup cost of construction at the time of
building permit issuance (this is subject to a 2 year exemption for house
replacement)
Because the cost of the works is recovered only at the time of issuance
of a building permit, this charge is most appropriately used in greenfield
areas, or areas subject to intensive redevelopment. It
would not be the preferred solution for an area such as
Buttonville Crescent which is expected to undergo only limited infill and
redevelopment over time particularly given requirements for retention of
heritage structures, since the cost to the Town of servicing of the lands to be redeveloped would likely only be recovered
over the very long term and the Town may have to pay for the non-growth
share related to the existing houses.
FINANCIAL CONSIDERATIONS:
There
are financial implications that would require further investigation for Community Improvement Plans,
including the availability of municipal funds for grants, or loans, for
undertaking the upgrading of servicing, or any other initiative to be
undertaken as part of the Community Improvement Plan. Funding by local
improvement for sanitary servicing has been recommended previously by staff and
continues to be supported. Funding through the Development Charge option would
require a public process, by-law adoption, an appeal process and front-ending
by the Town. Regardless of how sanitary servicing is to be financed, it is
proposed that the Town would incur costs relating to described water and road
improvements.
BUSINESS UNITS CONSULTED AND AFFECTED:
Town Engineering, and Finance staff, as well as staff from
the Ministry of Municipal Affairs and Housing has been consulted in the
preparation of this report.
.
CONCLUSION:
Community
Improvement Plans are appropriately used for comprehensive planning and
redevelopment of a defined area, including areas such as Buttonville Crescent, while
Local Improvement legislation is intended for more specific infrastructure
projects, such as upgrading of sanitary, storm and water services. Area Specific Hard
Services Development Charges
is another option for upgrading of municipal servicing, however, it is best applied to actively developing or redeveloping areas where the Town’s investment will be recovered sooner rather than over the longer term.
Therefore, of the three options,
staff recommends that the upgrading of services for Buttonville Crescent be undertaken as a
Local Improvement as
set out in the recommendations of this report.
Given the
significant commitment of time and funds by the municipality and the number of
potential areas that could be suitable for Community Improvement within the
Town, any identification of potential Community Improvement Project Areas
should be done on a priority basis, taking into consideration candidate sites
across the Town, with priority being given to those areas most in need of
redevelopment.
___________________________________ ____________________________________
Catherine
M. Conrad Alan
Brown, C.E.T.
Town
Solicitor Director of Engineering
|
|
|
|
|
Valerie
Shuttleworth, M.C.I.P., R.P.P.
Director
of Planning & Urban Design
|
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Jim
Baird, M.C.I.P., R.P.P.
Commissioner
of Development Services
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FIGURE 1
Q:\Dev\Plan\Teams\Markham\Centre\CommunityImprovementAreas\DSCMUMAY20
2003.doc
ATTACHMENTS:
Figure
1 - Location Plan
Figure
2 – Buttonville
Crescent Area
Appendix
A – Process for Developing
Community Improvement Plans
Appendix B - Presentation
- Municipal
Servicing in Urban Areas
LOCATION
MAP:
Appendix
A
The Process for Developing Community Improvement
Plans
The following is an outline of the process for
developing a community improvement plans:
- where the official plan provides policies for community
improvement areas and an area meets the criteria specified in the official
plan, Council may pass a by-law to designate the area as a community
improvement project area (under Section 28(2) of the Planning Act).
- Staff develop a community improvement plan for the project area
following the same process as an official plan amendment process, however,
the plan does not form part of the official plan
- contents of the community improvement plan may include:
introduction, background information about the area, need/benefits of the
plan, describe available programs (e.g. grant and loan programs), and
implementation
- consultation with the public is a key component of this program
- as part of developing the plan staff would determine how the plan
would be administered i.e. process for the giving of grants, funding and
how that would be done, for example, the City of London has a non-profit
Downtown Development Corporation that administers their community
improvement plan
- Council passes a by-law to adopt the community improvement plan
- once adopted, the community improvement plan is forwarded to the
Ministry of Municipal Affairs and Housing for approval
- the decision of the Ministry is subject to a 20 day appeal period
- staff then finalize detailed procedures for administering the
grant and loan programs including preparing application forms,
establishing procedures for issuing grants and loans, receiving loan
repayments and monitoring available funding
- when Council is satisfied that the community improvement plan has
been carried out, Council may by by-law dissolve the community improvement
project area
