Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels et du
développement économique
and Council / et au Conseil
Submitted by/Soumis par : Ned Lathrop, Deputy City Manager/ Directeur
municipal adjoint
Planning and Growth Management/Urbanisme et Gestion de la croissacne
Contact Person/Personne
ressource : Larry Morrison, Manager/Gestionnaire, Infrastructure Approvals
Division/Approbation des demandes d’infrastructure
Planning and Infrastructure Approvals/Approbation
des demandes d'aménagement et d'infrastructure
(613) 580-2424 x 27807, Larry.Morrison@ottawa.ca
REPORT RECOMMENDATIONS
That Corporate Services and Economic Development Committee recommend
that Council:
1.
Approve an
amendment to Development Charges By-law 2004-303 to reflect changes in the
area-specific stormwater rates for Leitrim resulting from changes to the Area
Specific Development Charges Background Study dated June 28, 2005.
2.
Approve the revised
Leitrim area-specific development charge growth projections and rates listed in
Document 3.
3.
Authorize the City
enter into a Front-Ending Agreement with Tartan Land Corporation for land
acquisition, design, and construction for the Leitrim Community Pond 1, based
upon the principles set forth in Document 1, and Council approved Front-Ending
Policy noted in Document 2 with the final form and content of the Front-Ending
Agreement being to the satisfaction of the Deputy City Manager, Planning and
Growth Management Department and the City Solicitor.
4.
Approve the revised
expenditure of $11,613,000 for land acquisition, design, and construction of
the Leitrim Pond 1 subject to the execution of the Front-Ending Agreement.
5.
Authorize the City
to enter into subdivision agreements, which provide for the repayment of storm
sewer over-sizing estimated at $6,572,444 in accordance with the principles set
forth in Document 2.
6.
Authorize the City
to establish a revised budget in the amount $18,185,444 for related Pond 1 land
acquisition, design, construction, and Trunk Storm Sewer over-sizing works
under Internal Order Number 903226: SWM Pond 1 Leitrim and Storm Sewer
Oversizing.
RECOMMANDATIONS DU
RAPPORT
Que le Comité des services organisationnels et
du développement économique recommande au Conseil :
1.
D’approuver
une modification au Règlement municipal 2004-303 sur les redevances
d’exploitation afin que celui-ci tienne compte des changements apportés à la
tarification relative à la régulation des eaux pluviales pour le secteur de
Leitrim par suite des modifications à l’Étude préliminaire sur les redevances
d’aménagement spécifiques à un secteur du 28 juin 2005.
2.
D’approuver
les projections de croissance révisées en matière de redevances d’aménagement
relatives au secteur de Leitrim et les tarifs indiqués dans le Document 3.
3.
D’autoriser
la ville à conclure une entente de financement préalable avec la société Tartan
Land Corporation pour ce qui concerne l’acquisition du terrain ainsi que la
conception et la réalisation du bassin de rétention des eaux pluviales 1 du
secteur de Leitrim; cette entente devra reposer sur les principes énoncés dans
le document 1 de même que sur la politique relative aux ententes de financement
préalable approuvée par le Conseil mentionnée dans le document 2, la
présentation et le contenu définitifs de l’entente devant être jugés
acceptables par le directeur municipal adjoint, Urbanisme et Gestion de la croissance,
et le chef du contentieux.
4.
D’approuver
les frais révisés de 11 613 000 $ relatifs à l’acquisition du
terrain ainsi qu’à la conception et à la réalisation du bassin de rétention des
eaux pluviales 1 du secteur de Leitrim sous réserve de la signature de
l’entente de financement préalable.
5.
D’autoriser
la ville à conclure des ententes de lotissement prévoyant le remboursement des
frais découlant de l’aménagement d’un égout collecteur surdimensionné, soit un
montant estimatif de 6 572 444 $, conformément aux principes
énoncés dans le document 2.
6.
D’autoriser
la ville à approuver l’établissement d’un budget révisé de
18 185 444 $ pour l’acquisition du terrain ainsi que la
conception et la réalisation du bassin de rétention des eaux pluviales 1 et
l’aménagement d’un égout collecteur surdimensionné, aux termes de l’ordre
interne 903226 : Bassin de rétention des eaux pluviales 1 du secteur de
Leitrim et égout collecteur surdimensionné.
BACKGROUND
The Leitrim community is bounded by Leitrim Road to the north, extends slightly beyond Bank Street to the east, slightly beyond Albion Road to the west, and to the south in the vicinity of the Leitrim wetland complex. In 1988 and again in 1998, the Regional Official Plan recognized the Leitrim Development Area. In 1991, the former City of Gloucester completed a Master Drainage Plan and an Environmental Analysis for the Leitrim Development Area, followed in 1995 by the completion of the Leitrim Development Area Stormwater Management Environmental Study Report and Pre-Design Report. The latter report recommended the inclusion of three stormwater management facilities (one for the industrial lands to the north, one for the residential lands to the west of Bank Street, and one for the residential lands east of Bank Street), and the fourth pond to serve the Remer lands to the south was added later. As such, the Area Specific By-Law Area S-2 Leitrim Stormwater Management Facilities Background Study, dated June 28, 2004 and subsequent Area Specific Development Charge rates set forth in By-law 2004-303 were established and approved by Council on July 14, 2004 and amended on November 9, 2005.
This stormwater management concept for the Leitrim Community was approved conditional on the implementation of an Environmental Management Plan. The implementation of the Environmental Management Plan in 2004 resulted in the consolidation of the three residential ponds into one “off-line” pond (Leitrim Pond 1) relocated to a site adjacent to Findlay Creek on the east side of Bank Street north of Blais Road. The construction of the Leitrim Pond 1 and trunk storm sewers are Development Charge items.
DISCUSSION
As a result of the approved Environmental Management Plan in 2004, the original three residential stormwater management ponds have been consolidated into a single “off-line” stormwater management pond resulting in a net reduction in the quantum of the total required stormwater management works within Area-Specific Stormwater Area S-2. Furthermore the Remer development lands have also been added to the benefiting area for Pond 1 resulting in an increase in the number of units.
Through the approval process, changes to the Pond 1 design were introduced to address the concerns of the various approval agencies. These changes increased the estimated cost of Pond 1 from $9,260,000 to $11,613,000. As such, it is necessary for City Council to approve an amendment to the Development Charge By-Law 2004-303, as amended, to reflect changes in the rates resulting from amendments to the Area Specific Development Charges Background Study dated June 28, 2005, and approve revisions to the area-specific development charge growth projections and rates listed in Document 3,
Tartan Land Corporation is prepared to front-end the total cost of the design, construction, and land acquisition for Pond 1, and is prepared to be paid back in accordance with the principles set out in Document 1 and pursuant to the Council approved Front-Ending Policy noted in Document 2. Tartan will be compensated for the value of the land, subject to a land appraisal to an upset limit of $1,319,000. As such, it is recommended that City Council approve the revised expenditure of $11,613,000 for land acquisition, design, and construction of the Leitrim Pond 1, and authorize the City to enter into a Front-Ending Agreement with Tartan Land Corporation. Based on the principles set out in Document 1, and the Council approved Front-Ending Policy noted in Document 2 with the final form and content of the Front-Ending Agreement being to the satisfaction of the Deputy City Manager, Planning and Growth Management and the City Solicitor.
Tartan will be compensated for front-ending the over-sized trunk storm sewers, which are eligible for repayment under Development Charges pursuant to schedule D of By-Law 2004-303 being a by-law for the imposition of development charges for Leitrim Stormwater Management Facilities. The construction and payback for the trunk storm sewers will be coordinated through registered subdivision agreements. As such, it is recommended that City Council authorize the City to enter into subdivision agreements, which provide for the repayment of storm sewer over-sizing estimated at $6,572,444 in accordance with the principles set forth in Document 2.
Given the changes that reduced the number of stormwater management ponds and the increased number of dwelling units through the inclusion of additional developable lands into the development charge area, the solution is considered desirable.
CONSULTATION
An amendment to the Development Charge By-Law will require consultation with the public. The public meeting will take place at the Corporate Services and Economic Development Meeting of April 4, 2006. Notice will be given in the Citizen and Le Droit on March 24 2006, and March 31, 2006. Copies of the amendment to the S-2 Background Study information was made available to the public as of March 24, 2006.
Tartan has agreed to participate as a Front-Ender in accordance with the principles set out in Documents 1 and 2.
FINANCIAL IMPLICATIONS
In the City of Ottawa Area-Specific Development Charge Background Study for Individual Stormwater Management Ponds and Drainage Systems, adopted by Council on July 14, 2004 and amended in September 2005, the overall cost of Area S-2 projects totalled $37,058,000. Based on the 2005 anticipated land use within Area S-2, the residential and non-residential attributions were 33% non-residential and 67% residential resulting in a $7,972,000 allocation to non-residential and a $16,313,000 allocation to residential. As a result of the recent increase in cost the revised total cost to Area S2 is now in the amount of $39,411,000 with a 34% allocation to non-residential and a 66% allocation to residential within Area S-2. With the allocation of reserve fund balances, this resulted in an $8,974,000 allocation to non-residential and a $17,169,000 allocation to residential.
The cost for the design, construction, and land of Leitrim Pond 1 is $11,613,000. The over-sizing cost for trunk storm sewers is $6,572,444. Subject to Council approval, the Front-Ender would be paid back pursuant to the principles set out in Document 1 and the Council approved Front-Ending Policy as noted in Document 2.
The total cost to be reimbursed to the Front-Ender is summarised as follows.
Project Cost
|
Development Charge Item |
Development Charge Up-Set
Limit |
Criteria for Repayment |
|
Design, Construction, and Land for Pond 1 |
$11,613,000 |
Repayment based on actual value pond to an upset limit of $11,613,000. (lands based on land appraisal) |
|
Trunk Storm Sewer Over-Sizing |
$6,572,444 |
Upset limit based on estimated linear metres of DC over-sizing constructed pursuant to DC background study at set rate per linear meter & Front Ending Policy. |
|
Sub Total |
$18,185,444 |
|
The Long Range Financial Plan forecasted the construction of the Leitrim Pond 1 in 2006 with an estimated operational impact of $ 92,600 per year beginning in 2007. The existing deferred revenue account for Area Specific Stormwater Development Charge reserves collected from Area S-2, By-Law 2004-303 will be used to fund this capital project and reimburse the Front-Ender on a quarterly basis. As such, it is recommended that City Council authorize staff to increase the existing Internal Order Number 903226 from $15,832,444 to $18,185,444 plus indexing.
Should other Development Charge Storm related works within the same Area Specific Stormwater Development Charge Area be constructed during the life of this Front-Ending agreement as identified in By-law 2004-303, within the stormwater collection area identified in Document 3, the Front-Enders acknowledge that they will share on a pro-rata basis with other stormwater drainage projects in the distribution of Development Charge Revenue.
SUPPORTING DOCUMENTATION
Document 1 Front Ending Policy Agreement Principles
Document 2 Council Approved Front Ending Policy
Document 3 Background Study Update February 1, 2006 South Urban Community Leitrim (Area S-2) By-Law 2004-303, and Amending By-Law 2005-489
DISPOSITION
The report will be forwarded to City Council for a decision on April 12, 2006. Following the decision, any amendment to the By-law will be advertised in the Citizen and LeDroit within 20 days. The public will have 40 days to appeal the amendment to the Ontario Municipal Board. In regards to the Front-Ending Agreement the final form of the agreement will be prepared by Legal Services in consultation with the Planning and Growth Management Department. Building Services Division will be informed of the revised rates pending City Council approval and the passing of the amended by-law for administration.
DOCUMENT 1
FRONT ENDING POLICY AGREEMENT
PRINCIPLES
Front-ending agreements are requested by developers who
wish to have specific growth-related capital works in place in advance of the
City’s capital project plans for emplacement of these same works: developers agree to finance the works at the
“front end” and recover their costs from the City at a later date. The following conditions must be met in
order for the City to enter into a front-ending agreement:
- All
front-ending agreements with the City will be for growth-related capital
works that have been included in a development charge study.
- Stormwater
ponds and related sewer works that are 100% development charge funded in
the recommended by-laws will be paid back to the developer based on
revenues as they are collected from the designated area. This means that at no time are the
repayments to exceed the revenues received. Each front-ending agreement will define the geographic area
involved and a separate and specific deferred revenue account may be set
up to keep track of the revenues collected and payments made. Crediting will also be allowed for the
front-ending agreements related to stormwater ponds.
- For
all other capital projects – A lump sum payment (both the development
charge portion and the City portion) will be made to the developer in the
year the project is identified in the City’s ten year capital plan at the
time the front-ending agreement is approved. Should growth occur earlier than forecasted, then repayment
would be accelerated to reflect the revised timing the City would have budgeted
for the project. If growth occurs
more slowly than forecasted, then the City will have an additional three
years (three years from the year the project was identified in the ten
year plan) to make repayments.
Only in this latter case will the City’s portion of the payment be
indexed beginning with the year the project was identified in the ten year
plan.
- The
development charge portion that will be reimbursed will be indexed yearly
in accordance with the rate of indexation pursuant to the development
charge by-laws. (City Council approved
February 7, 2005)
- Given
that the City will be assuming operating costs earlier than anticipated
through the front-ending agreement process, the City is not to pay any
carrying costs to the developer.
- All
development charges payable by developers must be paid up front in
accordance with the City’s by-law.
With the exception of the stormwater ponds and related sewer works,
there will not be any crediting allowed as a result of entering into a
front-ending agreement. (On
December 8, 2004, City Council approved, “That staff be directed to work
with the industry to develop the details of a credit policy to be
incorporated into the front-ending policy”.)
- In
the case where a developer(s) has front-ended a project that at the
discretion of the City benefits other developers, those developers who
were not part of the front-ending agreement shall pay all of their
development charges owed either at the time of registration of a plan of
subdivision or upon the issuance of the first conditional building permit,
whichever comes first. (City
Council approved July 14, 2004 Motion 16/5)
- A report to Council is required to authorize staff to enter into a front-ending agreement. The recommendation will include the financial commitment of the City, specify the funding source(s), the project timeline and where necessary, request that a specific deferred revenue account be established. The financial comment in the report will specify the timelines for the repayment, an operating budget impact and an estimate of the year in which the operating budget impact will begin. It should also indicate the year in which the project was originally identified in the City’s ten year capital plan. A capital project will be established upon Council approval to enter into a front-ending agreement. The status of these projects will be provided to Council on a yearly basis.
DOCUMENT 3
BACKGROUND
STUDY UPDATE FEBRUARY 1, 2006 SOUTH
URBAN
COMMUNITY LEITRIM (AREA S-2) BY-LAW 2004-303,
AND AMENDING BY-LAW 2005-489
BACKGROUND STUDY UPDATE
FEBRUARY 1, 2006
SOUTH URBAN COMMUNITY LEITRIM
(AREA S-2)
BY-LAW
2004-303, AND AMENDING BY-LAW 2005-489
Prepared By Kevin Lamer
Coordinator, Development Infrastructure Forecasting and Budgets
Infrastructure Approvals Division
City of Ottawa
Project Description
South Urban Community, Charge Area S-2
The project includes the construction of two stormwater management ponds and related trunk storm sewers. The stormwater management ponds are part of the concept plan for the Leitrim Area, approved by the City of Ottawa Council in 2005. The above noted stormwater management ponds and trunk storm sewers have been identified in the S-2 benefiting charge area attached herein. Stormwater management pond 1 and the related trunk storm sewers and Findlay Creek drainage improvements are located on the East and West side of Bank Street, inline with Findlay Creek. Stormwater management pond 2 and related trunk storm sewers are located on the South side of Leitrim Road between Albion Road and Bank Street and Hawthorne Road.
Relevant Studies/ By-Laws
- By-Law No. 2005-489 amendment to By-Law 2004-303 for the imposition of development charges for Leitrim Stormwater Facilities
- Background Study Update September 1, 2005 South Urban Community Leitrim (Area S-2), By-Law 2004-303.
- City of Ottawa Area-Specific Development Charge Background Study for Individual Stormwater Management Ponds and Drainage Systems.
- City of Ottawa Development Charges Background Study, Volumes 1 and 2, dated December 30th 2004, prepared by Stantec Consulting Ltd.
- City of Gloucester 1999 Development Charges Background Study dated August 1999, in association with Stantec Consulting Ltd.
Other Approvals
City of Ottawa Community Design Plan, as approved in mid 2005 by City Council.
Schedule “A”
Stormwater Development Charge Area Leitrim
Stormwater Facilities