4. Front-Ending Agreement – Widening of Belcourt Boulevard South of Innes Road

Accord de financement initial – Élargissement du boulevard Belcourt au sud du chemin Innes

Committee Recommendations

That Council:

1. Authorize the City to enter into a Front-Ending Agreement with Riotrin Properties (Belcourt) Inc. for the design and construction of widening Belcourt Boulevard from Innes Road south for approximately 330 metres, based upon the Front-Ending principles set forth in Document 2 and the Council approved Front Ending Policy in Document 3, with the final form and content of the Front-Ending Agreement being to the satisfaction of the Deputy City Manager, Infrastructure Services and Community Sustainability Department and the City Solicitor.

2. Authorize the expenditure of $630,235 plus all applicable taxes in 2010 for the reimbursement to Riotrin Properties (Belcourt) Inc. for the oversizing portion of the design and construction of widening Belcourt Boulevard from Innes Road subject to the execution of the Front-Ending Agreement.

3. Approve a pre-commitment of $303,000 against the 2010 Capital Budget, in accordance with the Council approved Front-Ending Agreement Policy.

Recommandations du comité

Que le Conseil :

1. autorise la Ville à conclure un accord de financement initial avec Riotrin Properties (Belcourt) Inc. pour la conception et la réalisation du projet d’élargissement du boulevard Belcourt, entre le chemin Innes au sud, sur environ 330 mètres, selon les principes d’accord de financement initial établis dans le Document 2 et la politique sur les accords initiaux approuvée par le Conseil et figurant dans le Document 3, la forme et le contenu finaux de cet accord étant à la satisfaction du directeur municipal adjoint, Services d’infrastructure et Viabilité des collectivités, et du chef du contentieux.

2. autorise le versement de 630 235 $, toutes les taxes applicables en sus, en 2010 afin de rembourser Riotrin Properties (Belcourt) Inc. pour la partie surdimensionnée de la conception et la réalisation de l’élargissement du boulevard Belcourt, à partir du chemin Innes, sous réserve de l’exécution de l’accord de financement initial.

3. approuve l’engagement préalable de 303 000 $ sur le budget d’immobilisations de 2010 conformément à la Politique sur les accords de financement initial approuvée par le Conseil.

Documentation

1. City Manager’s report, Infrastructure Services and Community Sustainability dated 3 June 2009 (ACS2009-ICS-PGM-0091).

Report to/Rapport au :

Transportation Committee

Comité des transports

and Council / et au Conseil

03 June 2009 / le 03 juin 2009

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/Directrice municipale adjointe,

Infrastructure Services and Community Sustainability/Services d’infrastructure et Viabilité des collectivités

Contact Person/Personne-ressource : Michael Wildman, Manager/Gestionnaire, Development Review-Suburban Services/Examen des projets d'aménagement-Services suburbains, Planning and Growth Management/Urbanisme et Gestion de la croissance

(613) 580-2424, 27811 Mike.Wildman@ottawa.ca

Innes (2)

Ref N°: ACS2009-ICS-PGM-0091

SUBJECT:	FRONT-ENDING AGREEMENT - WIDENING OF BELCOURT BOULEVARD SOUTH OF INNES ROAD

OBJET :	ACCORD DE FINANCEMENT INITIAL – ÉLARGISSEMENT DU BOULEVARD BELCOURT AU SUD DU CHEMIN INNES

REPORT RECOMMENDATIONS

That the Transportation Committee recommend that Council:

3. Approve a pre-commitment of $303,000 against the 2010 Capital Budget, in accordance with the Council approved Front-Ending Agreement Policy.

RECOMMANDATIONS DU RAPPORT

Que le Comité des transports recommande ce qui suit au Conseil :

1. autoriser la Ville à conclure un accord de financement initial avec Riotrin Properties (Belcourt) Inc. pour la conception et la réalisation du projet d’élargissement du boulevard Belcourt, entre le chemin Innes au sud, sur environ 330 mètres, selon les principes d’accord de financement initial établis dans le Document 2 et la politique sur les accords initiaux approuvée par le Conseil et figurant dans le Document 3, la forme et le contenu finaux de cet accord étant à la satisfaction du directeur municipal adjoint, Services d’infrastructure et Viabilité des collectivités, et du chef du contentieux.

2. autoriser le versement de 630 235 $, toutes les taxes applicables en sus, en 2010 afin de rembourser Riotrin Properties (Belcourt) Inc. pour la partie surdimensionnée de la conception et la réalisation de l’élargissement du boulevard Belcourt, à partir du chemin Innes, sous réserve de l’exécution de l’accord de financement initial.

3. d’approuver l’engagement préalable de 303 000 $ sur le budget d’immobilisations de 2010 conformément à la Politique sur les accords de financement initial approuvée par le Conseil.

BACKGROUND

The Innes Road corridor between Pagé Road and Mer Bleue Road is evolving into a major retail commercial destination for Orléans and surrounding areas of the city. The Smart Centres commercial development along Innes Road, east of Belcourt Boulevard includes big-box stores such as Walmart, Canadian Tire, and Future Shop. Access to the retail stores is currently provided by the existing Belcourt Boulevard, which is a two-lane divided roadway. Site plan applications are currently under review to develop the lands west of Belcourt Boulevard. Directly south of this commercial area and south of the Hydro Electric Power Corridor, a plan of subdivision is also under review to develop approximately 18 hectares consisting of 771 residential units.

Based on the proposed development and projected growth within the area, and in accordance with the Council approved “Orleans Industrial Park Land Use and Design Study,” there is a need to widen Belcourt Boulevard to a four lane divided major collector roadway. The proposed extent of the widening will be from Innes Road to the southern limit of the existing Smart Centres shopping centre approximately 330 metres south of Innes Road. An illustration of this area is provided in Document 1. This widening was also recommended in the “Revised Transportation Impact Study,” completed by Delcan in February 2008. In addition, widening of Belcourt Boulevard from Innes Road to Renaud Road was identified in the Council approved 2008 Transportation Master Plan (TMP), which recommended the requirement in Phase 1 (2009 to 2015). Consistent with the TMP, the 2009 Council approved 10-year capital plan identifies a budget for this project in 2010 to be funded primarily from development charges.

The extension of Belcourt Boulevard from Innes Road to Navan Road had previously been identified in the former City of Gloucester 1999 Development Charges Background Study and the project was carried forward to the City’s 2004 comprehensive development charge (DC) review. At that time, it was anticipated that Belcourt Boulevard south of Innes Road to the existing Walmart entrance would be fully constructed to the ultimate four lanes in 2005. Consequently, a budget had already been pre-committed in 2005 for $327,235 for the over-sizing component that would have had to be reimbursed to the Front-Ender at that time.

DISCUSSION

In 2008, Riotrin Properties (Belcourt) Inc. (Riotrin) submitted a site plan application for the construction of 24000 square metres of commercial retail space located at the southwest corner of Belcourt Boulevard and Innes Road. Adjacent to this site, Lowe’s has commenced construction of a 16000 square metre home improvement store. Riotrin, in partnership with Lowe’s, intends to commence construction of the commercial development in the summer of 2009, with an estimated opening date in the fall 2009.

In accordance with the approved Transportation Impact Study, conducted for the Riotrin development proposal, roadway modifications, include turning lanes, tapers, as well as traffic signals at the entrance to the commercial lands, are required to accommodate the development. These works are included as a condition of the development application and will be funded exclusively by Riotrin. A further site plan condition requires Riotrin to construct the widening of Belcourt Boulevard from Innes Road south for approximately 330 metres. Given that the City intends to widen Belcourt Boulevard along the Riotrin frontage in 2010, it is appropriate to coordinate both undertakings in order to minimize disruption within the community, avoid throwaway works, and minimize costs. All of the works on Belcourt Boulevard, which are needed to support the impending development, are proposed for construction in 2009.

Riotrin is prepared to front-end the $630,235 updated cost of the design and construction of widening of Belcourt Boulevard south of Innes Road for approximately 330 metres, subject to the principles noted in Document 2 and the Council approved Front-Ending policy noted in Document 3. Riotrin will be eligible for development charge reimbursement on the oversized portion of the works beyond the 11-metre roadway. Since the widening of Belcourt Boulevard meets the over-sizing criteria under the City’s Development Charges (DC) By-Law, the total project cost of $630,235 is eligible for full reimbursement. The works eligible for DC funding are sidewalks, streetlights, curbs, the two southbound lanes, one southbound left-turn lane, a metre median separating the northbound and southbound lanes, and road drainage facilities needed to drain the four lane divided roadway. In order to facilitate early construction, Riotrin has posted a letter of credit to secure for 100 per cent of the required Belcourt Boulevard widening as part of their site plan agreement. Due to changes in project scope such as turning lanes and a median, as well as inflationary costs, the total project estimate for this section of roadway has increased to $630,235 for the over-sizing component.

CONSULTATION

Riotrin has agreed to Front-End the widening of Belcourt Boulevard in accordance with the principles set forth in Document 2 and the Council approved Front-Ending policy noted in Document 3. Furthermore, the associated development applications followed the Ontario Planning Act and Council policies for public notification and consultation.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

There are no Legal/Risk Management impediments to the implementation of this report's recommendations. Subject to Council approval, the City will be entering into a standard Front-Ending agreement with Riotrin to front end the cost for design and construction of the widening of Belcourt Boulevard south of Innes Road for approximately 330 metres, and Riotrin will be entitled to reimbursement of costs based on the principles set out in Document 2 and pursuant to the Council approved front ending policy as noted in Document 3.

FINANCIAL IMPLICATIONS

Riotrin will be entitled to DC reimbursement to an upset limit of $630,235 plus all applicable taxes in 2010, subject to satisfactory completion of the works, and in accordance with the Front-Ending Agreement principles and the Council approved Front-Ending Policy noted in Documents 2 and 3 respectively. Should the cost exceed the upset limit, the additional cost shall be borne by Riotrin and the City shall not be obligated to compensate for additional costs. The following table provides a financial summary of costs for reimbursement.

Item	Development Charge Item	Up-Set Limit	Criteria for Repayment
A	Widening of Belcourt Boulevard for 330 metres	$504,188	Repayment based on actual value to upset limit
B	10% Engineering	$50,419	Repayment based on actual value to upset limit
C	15% Contingency	$75,628	Upset limit - All contingencies must be justified and supported by invoices and payment certificates.
D	Total DC eligible costs under Front-Ending Agreement	$630,235	Repayment based on actual value to upset limit (Items A+B+C)

The estimated cost of $630,235 for the design and construction of Belcourt Boulevard from Innes Road south for approximately 330 metres includes engineering and contingencies. Any contingent costs incurred must be justified and include supporting invoices and payment certificates.

The City’s Development Charges By-law 2004-298, as enacted, identified Belcourt Boulevard as a major collector from Innes Road to Navan Road; and the widening of a portion of this road from Innes Road south for approximately 330 metres is eligible for DC funding. $327,235 is available within 903247 Major Collector Roads Program, and $303,000 has been identified in the 2010 Capital Forecast. Council approval of this agreement would constitute a pre-commitment of $303,000 against the 2010 Capital Budget.

Annual operating costs of the proposed widening of Belcourt Boulevard are estimated at $11,000 commencing in 2010, and will be brought forward as a budget pressure in Public Work’s 2010 Draft Operating Budget.

SUPPORTING DOCUMENTATION

Document 1 Map of Belcourt Boulevard widening south of Innes Road

Document 2 Front Ending Agreement Principles

Document 3 Council Approved Front-Ending Policy

DISPOSITION

Legal Services will prepare the final form of the agreement in consultation with the Planning and Growth Management.

MAP OF BELCOURT BOULEVARD EXTENSION DOCUMENT 1

FRONT-ENDING AGREEMENT PRINCIPLES DOCUMENT 2

1. Riotrin is required to post 100% securities for the full costs of the design and construction of the approximately 330 metres of the widening of Belcourt Boulevard south of Innes Road estimated at $630,235 including engineering and contingencies.

2. The cost of the widening of 330 metres of Belcourt Boulevard is set at an upset limit of $630,235 including engineering and contingencies. Contingent costs incurred shall be justified and include supporting invoices and payment certificates. Should the cost exceed the upset limit, the additional cost shall be borne by Riotrin, and the City shall not be obligated to compensate Riotrin for additional costs.

3. The contract for Front-Ended works shall be awarded by Riotrin and shall be in accordance with the City’s Purchasing Policy of a competitive procurement process and subject to the satisfaction of the General Manager, Planning and Growth Management Department.

4. Construction shall be in accordance with City and all applicable regulatory standards.

5. The City will reimburse Riotrin after the works have been granted approval by the City.

6. The reimbursement of the construction costs for the widening of 330 metres of Belcourt Boulevard south of Innes Road shall be pursuant to the Council approved Front-Ending Policy as referenced under Document 3.

7. Riotrin will be entitled to receive indexing pursuant to conditions noted in Document 3.

COUNCIL APPROVED FRONT-ENDING POLICY DOCUMENT 3

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.