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REPORT TO
COMMITTEE OF THE WHOLE |
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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
Accounting and Expenditure Control |
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DATE OF MEETING: |
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SUBJECT: |
Development Charge Deferral –
Neamsby Investments |
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RECOMMENDATION:
THAT the report titled “Development Charge Deferral
– Neamsby Investments” be received;
AND THAT Council authorize the Town of
AND THAT the deferral be conditional on the
Markham Centre presentation centre being used for the purposes of new
residential and non-residential sales;
AND THAT the deferral be granted for a maximum
of five years;
AND THAT the deferral be reviewed at the end of
the five year term;
AND THAT the Mayor and Clerk be authorized to
execute the agreement.
PURPOSE:
The purpose of this report is to
seek Council approval to enter into an agreement with Neamsby Investments that
would allow for the deferral of the Town of
BACKGROUND:
Neamsby
Investments applied for a building permit in April 2005 for the construction of
the Markham Centre presentation centre.
The application for a building permit prompted the issuance of an
invoice for development charges which included $159,367.05 for Town of
In
consideration of the need for Developer’s to erect facilities in which to sell
new residential units, the Development Charge By-laws exempted mobile sales
trailers and temporary buildings or structures.
A mobile sales trailer is defined as “a trailer that is designed or
intended to be made mobile, is constructed without foundations, is used for new
residential sales and is intended to be temporary”. A temporary building or structure is defined
as “a building or structure designed or constructed, erected or placed on land
and which is demolished or removed from the lands within twelve months of
building permit issuance”. The Markham
Centre presentation centre does not meet the criteria of either a mobile sales
trailer or a temporary structure as defined in the by-laws. Staff have been advised that Neamsby
Investment’s future intentions are to potentially convert the facility to a
commercial use indicating that this is a permanent structure.
As
the current by-laws require payment of development charges on this facility and
Neamsby Investments is opposed to this charge, the alternative is to defer the
payment of development charges to a future date. In accordance 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”.
It
is recommended that the Town enter into an agreement with Neamsby Investments
to provide for the deferral of development charges. Staff recommends that the deferral be
conditional on the facility being used for the purpose of new residential
sales, and that the term of the agreement be to a maximum of five years. At the end of each five year term, Staff will
review the deferral and make a recommendation to Council on either a further
deferral or the demand for payment.
FINANCIAL CONSIDERATIONS:
The
deferral of development charges is a cashflow issue. The deferral of development charges will be
established as an accounts receivable that Neamsby Investments 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. The up-fronting
of major projects such as, the
BUSINESS UNITS CONSULTED AND AFFECTED:
Legal
Department has reviewed this report.
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Barb Cribbett, Treasurer |
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Andy Taylor, Commissioner of Corporate
Services |
Q:\Finance and Administration\Finance\SHARED\2005COW
Council\0528 Development Charges Deferral - Neamsby Investments.doc
