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REPORT TO General
Committee |
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TO: |
Mayor and Members of Council |
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FROM: |
Andy Taylor, Commissioner of Corporate Services Barb Cribbett, Treasurer |
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PREPARED BY: |
Jennifer Nelson, Manager of Development Finance |
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DATE OF MEETING: |
2006-02-06 |
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SUBJECT: |
Development Charge Deferral – Liberty Development
Corp |
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RECOMMENDATION:
That the report titled “Development Charge Deferral – Liberty Development Corp.” be received;
And that the Mayor and Clerk be authorized to execute an agreement with Liberty Development Corporation to defer the payment of the Town’s Town Wide Hard and Area Specific development charges in respect of the development of the residential portion of Phase 1 and all other phases of the development of Block 5, Plan 65M-2668 and Part Lot 10, Concession 4”, to the satisfaction of the Town Solicitor;
And that the agreement provide that the Town Wide Hard Development Charge be deferred until the issuance of a building permit, with payment at that time to be calculated at the rate that is in effect at the time a complete application for a building permit is requested;
And that the agreement provide that the deferral be conditional on the Area Specific Development Charge being charged and paid on a per block basis;
And that the agreement provide that the Area Specific Development Charges be deferred until the execution of the first Site Plan Control Agreement on each block, with payment at that time to be calculated at and payable in respect of each block, at the rate that is in effect at the time the first Site Plan Control Agreement is executed for each block;
And that staff be authorized and directed to do all things necessary to give effect to these recommendations.
PURPOSE:
The purpose of
this report is to seek Council approval to enter into an agreement with Liberty
Development that would allow for the deferral of the Town of Markham Town Wide
Hard Development Charges from the execution of the subdivision agreement to
building permit issuance, and the deferral of the Area Specific Development
Charges to the execution of the Site Plan Control Agreement.
BACKGROUND:
In accordance with the Town’s Development Charge By-Laws, the Town Wide Hard and Area Specific Development charges are payable upon execution of a subdivision agreement, and Town Wide Soft Development charges are payable upon issuance of a building permit.
Liberty
Development paid development charges on the 12 storey and 5 storey office
buildings and the underground parking structure currently under
construction.
In accordance with section 27(1) of the Development Charges Act, 1997, “a municipality may enter into an agreement with a person who is required to pay a development charge providing for all or any part of a development charge to be paid before or after it would otherwise be payable”.
The Town Wide Hard Development Charges are calculated on a per unit basis, therefore it is recommended that the Town enter into an agreement with Liberty Development to provide for the deferral of these charges to be payable upon issuance of a building permit. The Area Specific Development Charges are calculated on a land area basis. It is therefore recommended that the agreement with Liberty Developments provide for a deferral of these charges on a block by block basis, to be payable upon execution of the first Site Plan Control Agreement for each block. Staff recommends that the deferral be conditional on the Town Wide Hard charge being calculated at the rate in effect at the time the complete application for a building permit is requested, and the Area Specific Development Charges being calculated at the rate in effect at the time the first Site Plan Control Agreement is executed for each block.
FINANCIAL CONSIDERATIONS:
The deferral of development charges is a cashflow issue. The deferral of development charges will be established as an accounts receivable that Liberty Development will eventually be required to pay. The deferral simply postpones the Town receiving those funds.
The
development charge reserves are currently being depleted at a rate quicker than
revenues are being received. Staff are
currently reviewing the potential need for external borrowing to fund
development charge related capital projects.
In the borrowing analysis, Staff are only assuming development charge receipts
based on the upset limit of the servicing constraints. Although, the receipt of development charges
from Liberty Development would assist in reducing the potential need for borrowing,
the deferral of payment does not increase the burden as these funds are over
and above the upset limit of the servicing constraint.
BUSINESS UNITS CONSULTED
AND AFFECTED:
Legal
Department has reviewed this report.
ATTACHMENTS:
Map of Site
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Barb Cribbett, Treasurer |
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Andy Taylor,
Commissioner of Corporate Services |