Report to/Rapport au :

 

Council / Conseil

 

17 November 2010 / le 17 novembre 2010

 

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 : John Moser, General Manager/Directeur général, Planning and Growth Management/Urbanisme et Gestion de la croissance

(613) 580-2424, 28869  John.Moser@ottawa.ca

 

Kanata North (4)

Ref N°: ACS2010-ICS-PGM-0214

 

 

SUBJECT:

Staff Response to Council Motion on Acquisition of Phase 9 KNL Lands

 

 

OBJET :

réponse du personnel à la motion du conseil concernant l’acquisition de terrains de KNL developments Ltd visés par L’étape 9 d’aménagement.

 

 

REPORT RECOMMENDATIONS

 

That Council receive this report for information.

 

RECOMMANDATIONS DU RAPPORT

 

Que le Conseil reçoive ce rapport à titre informatif.

 

 

At its meeting of October 6, 2010 Council passed the following motion. The report that follows is the information staff was directed to provide based on Council’s approval of Motion 98/10.

 

MOTION NO. 98/10

 

 

Moved by Councillor D. Thompson

Seconded by Councillor P. Hume

 

  1. That the Wilkinson/Doucet motion be deferred to the November Special Council Meeting and at that meeting staff present a report that outlines a strategy to acquire the 72.9 acres of the Phase 9 development of the KNL lands by the following measures:

 

a)   Re-alignment of present and future development phases;

b)   Land exchange, including the Kanata Town Centre lands

 

  1. That Staff present the cost of acquiring any residual lands via a financial transaction;

 

  1. That the report include servicing plans for future phases based on the potential acquisitions; and

 

  1. That Council request that the owner agree to allow the land to remain in its current condition so that Council can consider the Staff report at its November Special Meeting.

 

CARRIED

 

BACKGROUND

 

The Phase 9 lands are located to the north of the existing Beaver Pond, south of the railway tracks, east of the existing Goulbourn Forced Road and west of an Ontario Hydro Corridor and existing homes on Kimmins Court (see Document 1). Phase 9 is approximately 42.7 hectares acres in size. Approximately 13.2 hectares were already planned to be dedicated to the City under the provisions of the 40 per cent Open Space Agreement and the 2006 Ontario Municipal Board decision which approved the subdivision and zoning for these lands. The 30-hectare (72.9 acre) site referred to in the Council Motion therefore represents the remaining developable portion of the Phase 9 lands. 

 

Phase 9 is part of a larger draft plan approved subdivision within the Marchwood Lakeside (Kanata Lakes) Community. The larger draft plan of subdivision consists of approximately 269 hectares (see Document 2) and lays out the remaining undeveloped land within the Marchwood-Lakeside Community. The current plan includes a wide range of land uses, including a mix of residential densities, institutional uses, open space, commercial uses and natural environment areas.  This subdivision proposal is atypical of most such applications due to the legal requirement for 40 per cent of the land area to be designated for "open space" purposes.

 

The 2006 draft approved plan represents the final phase of development of a much larger parcel of land consisting of 566 hectares that was planned in the later 1970s and early 1980s (see Document 3). The Owner at the time, Campeau Corporation made an Official Plan amendment application to include these lands within the urban boundary. This amendment was subsequently approved on the condition that the owner, Campeau Corporation enter into an agreement with the former City of Kanata to dedicate 40 per cent of the total land area 226.6 hectares (560 acres) as “open space” hereinafter referred to as the 40 per cent Agreement. The 1981 40 per cent agreement, amended in 1988, defines the applicable 40 per cent lands as including the 18-hole golf course, stormwater management areas, natural environment areas and land to be used for park purposes.  The lands were designated for urban development by order of the Ontario Municipal Board in January 1983.

 

KNL acquired the remaining lands to be developed in September 2000 and made application for subdivision and zoning approval for the remaining lands in April 2003. City Council recommended approval of the draft plan of subdivision and implementing Zoning By-law on July 14, 2004.  The draft plan of subdivision and zoning were appealed and a full hearing was held in November 2005. The draft plan of subdivision and zoning for the remaining lands to be developed which include Phase 9, were approved by Order of the Ontario Municipal Board on February 6, 2006.

 

Existing residential development abuts the subject lands to the south, east and north.  Residents of these communities and elsewhere have enjoyed use of the subject lands as a natural recreational area for more than 20 years.  The lands form part of the Canadian Shield, are largely forested, and contain wetland pockets and rock outcrops.  Well-used recreational trails cover much of the subject land.

 

Response to components of the Council Motion

 

Phasing – Realignment of present and future phases

 

The Council motion directs staff to look at the alignment of present and future phases of development as part of a potential acquisition strategy to acquire the Phase 9 lands. As will be discussed in greater detail in the servicing section of the report, Phase 9 is scheduled to be the next phase of development as existing water and sanitary services terminate adjacent to the eastern limit of Phase 9. Document 4 outlines the location of the three main phases within the draft approved plan of subdivision. Water and sanitary services are required to traverse the Phase 9 lands in order to service future Phases 7 and 8 west of Goulbourn Forced Road. Phases 7 and 8 are also subject to a larger stormwater study now underway such that they could not be developed at this time pending the outcome of this study. The availability of land that is draft approved, zoned and can be readily serviced is a significant concern of the land owner. As a result there is no opportunity to shift development to another phase to allow further time to consider options for Phase 9 lands. The Ontario Municipal Board in it decision of February 6, 2006 confirmed that the logical servicing should proceed from east to west in this area starting with Phase 9.

 

It should be noted that the Owner has a conference call scheduled with the Ontario Municipal Board on November 23, 2010 to discuss concerns with clearing the draft plan conditions for Phase 9. The City has recently received requested grading information from KNL in support of their request to undertake tree removal in accordance with its Tree Conservation Report that is currently being reviewed.

 

Land Exchange Options

 

Based on the above there is limited ability to meet the objective of preserving the Phase 9 development lands by redistributing open space lands within Phases 7 and 8. In fact there are recently identified pressures on Phases 7 and 8 in terms of additional environmental lands that require protection and possible land requirements for stormwater management purposes. The Council Motion also directed staff to look at land exchange possibilities including the City‑owned Kanata Town Centre lands. Staff had a number of meetings with KNL and after review KNL indicated that there were three sites from the list of properties that could be of interest. Two of the three sites of interest were encumbered with regard to Council directed financing and revenue streams. The lost revenue would have to be made up for should the lands be part of a land exchange. Given the financial encumbrances on the sites the landowner and the Ward Councillor agreed to pursue other means of securing the 72.9 hectares of developable lands in Phase 9. The third site was the Kanata Town Centre lands which were specifically mentioned in the Council Motion. A brief discussion of the Kanata Town Centre land follows. 

 

Kanata Town Centre Lands

 

The City-owned Kanata Town Centre land consists of only 11.6 hectares of land that is planned to accommodate a dense form of development containing approximately 120,000 square metres of mixed uses (retail, office and residential).  The Official Plan, Volume 2B, intends that this land will provide the Kanata community with its Town Centre and urban heart.  The land is in proximity to the transit way, is bound by arterial roadways, and is adjacent to the Kanata Centrum Shopping Centre site, which contains more than 10,000 square metres of retail at the Kanata Centrum Shopping Centre.  Thus the Kanata Town Centre land is appropriately situated to achieve its planned vision.  However, development of the 11.6 hectares is challenged mainly by its geology and topography.  Servicing of internal streets is expensive and significant grade changes through the site ultimately reduce the available development envelope.  Consequently, staff are in the midst of re-visiting the original development concept, and are giving strong consideration to re-focusing the highest density uses along the more easily developed edges (north, south and east) of the Town Centre property.

 

While KNL had originally expressed an interest in trading some of its Phase 9 land for a small portion of land along the eastern edge of the Kanata Town Centre, it is staff’s opinion that the loss of 1.6 hectares of the KTC land along its eastern edge would have a significant impact on the ability to achieve the form and density of development that is necessary to create a Town Centre.  Moreover, it would be premature to transfer the land to a private sector party at this time in advance of necessary City-initiated Zoning By-law amendments that will implement the Town Centre objectives.  Once appropriate policies and zoning are in place that will ensure the desired vision can be achieved, certain revenues generated from the sale of land within the Town Centre will need to be directed toward achieving certain Town Centre objectives such as providing structured parking facilities and creating an inviting, pedestrian-oriented Main Street.  The loss of these revenues could compromise the ability to achieve the overall Kanata Town Centre vision. Any net profits generated beyond these objectives could be directed by Council in its next term towards offsetting acquisition costs for Phase 9.

 

Cost of Acquisition of Phase 9 lands

 

At the time this report was prepared the City had yet to receive the high level appraisal by KNL. Based on acquisition of the 72.9 acres and servicing costs to extend services across Phase 9 to service Phases 7 and 8, KNL has verbally indicated a cost in the range of $25 million. This would include $3-$5 million in servicing costs that would still be required to cross the Phase 9 lands. KNL has also indicated that they would be seeking compensation for lost profits on developing the 72.9 acres on a contractual basis. KNL’s position is that the 40 per cent open space agreement entitles them to develop 60 per cent of the land whereas the acquisition of 72.9 acres will reduce this. KNL has indicated that these costs could range between $8 and 10 million.

 

 

 

Servicing

 

Servicing of the remaining lands within the draft approved subdivision is intended to be developed in three phases. Document 4 shows the next three phases to be developed. The next phase of development, known as Phase 9, would extend the sanitary sewer from the hydro corridor at the north end of Kimmins Court, and the trunk watermain from the northeast end of the Beaver Pond.  Document 5 depicts the previously anticipated servicing plan for Phase 9 and the balance of the draft approved subdivision.

 

Capacity is not a concern as the proposed draft plan of subdivision contains densities and land uses similar to those proposed in the original concept plan.  When the existing trunk sewers and watermains that will service this development were designed through previous subdivision development, capacity was provided for the subject lands.

 

The serviceability study for the KNL lands identifies three major construction phases for the lands north of the Kizell and Beaver Ponds. These phases are now referred to as:

 

·         Phase 7 – north of the Kizell pond, south of the rail line, west of Goulbourn Forced Road and east of First Line Road (2nd Phase)

·         Phase 8 – north of the rail line, west of Goulbourn Forced Road, and south and east of the extension of Terry Fox Drive (3rd Phase)

·         Phase 9 – north of the Beaver Pond, south of the rail line, east of Goulbourn Forced Road and west of the Hydro corridor (1st Phase)

 

KNL Phase 9 Lands – Servicing Implications for Phases 7 and 8

 

The Council Motion directs to staff to report on potential re-alignment of present and future development phases. Specifically what are the servicing implications for future phases (Phases 7 and 8) based on potential acquisition of the Phase 9 lands. The following provides an assessment of the potential servicing impacts on sanitary, water, storm and transportation infrastructure based on Phase 9 acquisition.

 

Sanitary Sewers

 

The first phase to proceed was to be Phase 9, with Walden Drive being extended from Kimmins Court through the Phase 9 lands to Goulbourn Forced Road. Sanitary servicing was to be provided to the Phase 9 lands through an outlet to the existing the Kanata Lakes Trunk Sewer at the north end of Kimmins Court. Sanitary servicing to Phase 7 was to be through the Phase 9 sanitary network, with Phase 8 being serviced through Phase 7.

 

The removal of Phase 9 from the development lands also removes the sanitary outlet from Phases 7 and 8 to the Kanata Lakes Trunk. It appears that the only reasonable sanitary outlet for Phases 7 and 8 is the Kanata Lakes Trunk, and the only viable route for this connection is through the Phase 9 lands. Should Phase 9 not develop as a subdivision it is assumed that the extension of Walden Drive through Phase 9 would not occur although the traffic impacts of this collector road being deleted have not been assessed. Sanitary services were planned to be extended from their current terminus at the end of the Kimmins Court and the Ontario Hydro Corridor within Walden Drive to Goulbourn Forced Road.  Assuming no development and no extension of Walden Drive the most probable alignment of this sanitary link would be alongside the railway corridor. This would minimize the impact on existing vegetation within the Phase 9 lands. The sanitary sewer would not be within the rail right-of-way but in a servicing corridor running immediately adjacent to the railway. The expected sanitary sewer corridor would be six metres wide. This conceptual servicing plan is shown in Document 6.

 

This sanitary servicing plan would continue to provide an outlet to the Northtech lands, located on the north side of the railway, which were also to be serviced through the Phase 9 lands.

 

Watermain Network

 

The existing 406 mm watermain on Walden Drive was also to be extended from Kimmins Court and Walden Drive to Goulbourn Forced Road, with looping provided by a 406 mm connection through the Phase 7 lands, through the Richcraft lands and Richardson Ridge to Akenhead Crescent. Phase 8 was to be serviced through Phase 7, with looping provide to Goulbourn Forced Road (north of the railway).

 

Again, the removal of Phase 9 from the development lands also removes one of the two watermain feeds to Phases 7 and 8. There appear to be two reasonable options to provide the second water feed to these lands:

 

a.       The existing 406 mm watermain on Walden Drive could be extended north to the railway, potentially within the existing Hydro corridor. From there, the watermain could be accommodated within a combined servicing corridor for both the watermain and the sanitary sewer, running immediately adjacent to the railway and connecting through to Goulbourn Forced Road. The expected combined corridor would require nine-metre width. The option would also continue to provide a water feed to the Northtech lands (see Document 7 – Option A).

 

b.      Alternatively, the second feed could be a new 406 mm watermain, extended from the existing 610 mm watermain at the Kanata Avenue – Goulbourn Forced Road intersection to the Phase 7 lands. This watermain could be co-ordinated with the construction of the Goulbourn Forced Road, and would be accommodated within the municipal right-of-way. This option would not provide a water feed to the Northtech lands (see Document 8 - Option B).

 

Stormwater:

 

The majority of the Phase 9 lands have an approved stormwater outlet to the existing Beaver Pond stormwater management facility. The conceptual stormwater servicing plan for Phases 7 and 8 of the KNL lands assumes a flow diversion from the Shirley’s Brook Subwatershed to the Kizell Drain Subwatershed. The viability of this diversion is currently under review by the City, and the final stormwater designs will be informed by the results of this review. The stormwater solutions for Phases 7 and 8 are distinct and separate from those for Phase 9; thus, the disposition of the Phase 9 lands would have no impact on the stormwater servicing for Phases 7 and 8. The outcome of the Flow Diversion Study may have an impact on the 40 per cent Agreement should the diversion prove not to be a viable option through the Study or subsequent Schedule C Environmental Assessment process should it proceed. The 40 per cent Agreement assumed the diversion of stormwater flows would occur – if the diversion is not viable, stormwater management pond(s) would be required for Phases 7 and 8. Sormwater management ponds are part of the definition of “open space” per the 40 per cent Agreement.

 

The status of the Phase 9 lands, combined with the results of diversion review, may also significantly impact the stormwater servicing design for the Northtech lands.

 

Transportation

 

From a transportation perspective Phase 9 includes two proposed collector roads as indicated on Schedule E of the Official Plan. Firstly, the proposed collector road commonly referred to as the extension of Walden Drive (see Document 5) would link existing Walden Drive at Kimmins Court through the Phase 9 lands to Goulbourn Forced Road.  As mentioned above, Walden Drive was intended to also serve as the servicing corridor for water and sanitary sewers through the Phase 9 lands. Secondly, the Solandt Drive extension is proposed to link the Walden Drive extension to Solandt Drive north of the railway tracks ultimately providing a connection for the Marchwood-Lakeside Community to March Road. Both of these roads would be designed to accommodate transit service. The extension of Solandt Drive through Phase 9 of the KNL lands is intended to provide public road access to 3150 Solandt Drive (referred to as the Northtech lands as shown on Document 4) which is currently a land locked parcel of land.

 

The Official Plan and Transportation Master Plan identify Solandt Drive as a collector road which is to be extended from its current terminus at Hines Road across the MDS Nordion site, the Northtech lands, the railway corridor and planned to connect to the future extension of Walden Drive in the KNL subdivision.  The Solandt Drive extension was also the subject of an Ontaro Municipal Board Hearing on the subdivision and zoning for the KNL lands in 2005. Numerous studies including the Transportation study for the KNL subdivision and the 2006 OMB ruling confirmed the requirement for this road link connecting the KNL lands to the Kanata North Business Park and March Road. The timing of the Solandt Drive extension is uncertain given the likely need for an Environmental Assessment for the road north of the railway tracks as well as associated budget considerations for the Study, timing of the development of the Northtech lands and any land negotiations and acquisitions that may be required.

 

Should Phase 9 not proceed based on an acquisition scenario, neither the extension of Walden Drive nor the Solandt Drive extension would be constructed. Public road access to the Northtech lands would not be provided although servicing connections could still be provided. Should Phase 9 not proceed, the extension of Solandt Drive from Hines Road would no longer be warranted from a transportation perspective. Based on the deletion of these collector roads, KNL would be required to update their Transportation Study for Phases 7 and 8 as it could impact other collector road requirements within Phases 7 and 8 and the timing of Goulbourn Forced Road Reconstruction.

 

Environmental Protection Area, Open Space and the 40 Per cent Agreement

 

Earlier subdivision approvals and excess 40 per cent land dedication from the original land holding has left the balance of 40 per cent lands somewhat short in comparison with what was currently designated in the Kanata Official Plan.  The remaining 107.25 hectares of open space as of 2006 must be divided among stormwater management, active parks, stream protection and buffers, wetlands, woodlands, greenspace linkages and pathways, and Trillium Woods. Issues have arisen that also require additional lands to be protected. For instance Shirley's Brook was identified as fish habitat along its entire length within the subdivision area.  Under the Federal Fisheries Act, Shirley's Brook must be protected.  Since Shirley's Brook is an environmental feature, the area required to protect this natural resource is included within the "open space" definition of the 40 per cent agreement. Some of these areas were not included in the original environmental designations of the Official Plan on which the 40 per cent agreement was based.  In addition, approximately seven hectares of “excess” Open Space (40 per cent land) had been dedicated through the registration of previous subdivisions.  The draft approved plan of subdivision resulted in a net shortfall of open space mainly in the Kizell Pond/West Block area of approximately 7.29 hectares compared to what is currently designated by the Official Plan.  The "Open Space" lands north of the Beaver Pond (Phase 9) increased in size primarily at the request of the community.  The existing community has expressed significant interest and desire to preserve as much of Beaver Pond area as possible from development. The land added to the Beaver Pond Area was at the expense of environmental lands in the Kizell Pond/West Block area. 

 

The boundaries of the natural environment area are defined and finalized through the subdivision approval process.  Green linkages have also been added to create a pedestrian-oriented recreational pathway system that links the various natural areas (Beaver Pond, Kizell Pond, Trillium Woods, South March Highlands).  This exercise and approval of the draft plan of subdivision allocate the remaining 107.25 hectares of open space lands required under the 40 per cent agreement.

 

As a result there is very little ability to make significant changes to the distribution of open space under the 40 per cent Agreement. Hence the motion to consider land exchange/acquisition of the 72.9 acres of developable land north of the Beaver Pond. It must also be noted that since 2006 there have been additional pressures on the 40 per cent Agreement based on additional environmental lands that must be protected. There are two small fingers of Provincially Significant Wetland (PSW) extending into the KNL land across Terry Fox Drive in the vicinity of Shirley’s Brook.  Blandings Turtle was found in one of them as part of the Terry Fox Drive EA, and the species must be considered as present in the other, due its close proximity.  Under the PPS and the Official Plan, development is not permitted in PSWs or habitat for endangered and threatened species.

 

In addition there is a City study underway regarding a diversion of stormwater that may result in additional stormwater management facilities in Phases 7 and 8 of the development. This is discussed further in the Servicing section of the Report. Pending other funding solutions the community park planned for Phase 8 may not be able to proceed in order to compensate for the other open space requirements in Phases 7 and 8. Staff continue to be concerned that the lack of active parkland in this community will become an issue in the future as parkland has and will likely continue to be redirected to environmentally designated lands. This will be partially offset by the playing fields at the Kanata North Recreation Complex which was not part of the original recreation master plan for this area.

 

 

 

Site Activity

 

Item 4 of the Council Motion requested that the Owner retain the land in its current condition pending Council’s consideration of the staff at its November Special Meeting.  The Owner agreed to this condition and there has been no change to the site in that regard.

 

Summary

 

Staff acknowledge that the Phase 9 lands have both environmental and community value. This is evident based on the history of these lands, the extensive community participation and previous decisions and approvals. Open Space lands in Phases 7 and 8 along with Trillium Woods have even higher environmental significance. Additional pressures on the 40 per cent Open Space Agreement are occurring on Phase 7 and 8 lands such that there is no practical ability to shift open space lands from these lands to Phase 9 lands.   Land exchange options were considered as part of the Council motion but financial commitments have been made by Council with respect to the sites that were of interest to the land owner.

 

Staff understand that the Ward Councillor is pursuing a revised financial arrangement in the interest of acquiring the Phase 9 lands that will be presented to Council on November 22, 2010. As the financial matter will have to be considered by the new City Council staff can report back on the acquisition strategy if the matter proceeds to the new Council.

 

ENVIRONMENTAL IMPLICATIONS

 

Normally an acquisition such as that proposed would be made from the Urban Natural Features account. As of today there are no uncommitted funds in the account. The Real Estate Partnerships and Development Office  has provided estimates of the costs to acquire those urban lands for which we have received official requests for acquisition under our policies totalling approximately $20 million for urban natural features. These estimates will be put forward as part of the discussion of the 2011 budget.  The estimates do not include any of the Phase 9 KNL lands which are estimated in the range of $25 million.

 

RURAL IMPLICATIONS

 

N/A

 

CONSULTATION

 

N/A

 

COMMENTS BY THE WARD COUNCILLOR(S)

 

Staff has regularly met with the Ward Councillor to advise of the status of negotiations with the landowner and emerging issues. The Ward Councillor has been actively involved in discussion with the landowner and staff has been advised that further motions regarding acquisition and financing will be presented to Council by the Ward Councillor.

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

There are no budgeted monies allocated to provide for the acquisition of any of the KNL lands.  As each of the acquisition of Phase 9 and the cost to the City for the relocation of services would be well in excess of $50,000, the Municipal Act, Section 275 does not permit the Council to approve the acquisition prior to the commencement of the next term of Council.  Section 275 also would not permit Council, prior to the commencement of the next term, to approve the disposition of any of the parcels that were considered in the land exchange scenario.

 

As noted in the report, the landowner has placed before the Ontario Municipal Board the matter of the clearing of its conditions for draft approval as well as the extension of its current draft approval.  To the extent that agreement is now reached with the landowner on the development of Phases 7, 8 and 9, a hearing will be required to take place.

 

CITY STRATEGIC PLAN

 

There could be direct and indirect impacts on the City’s Strategic Plan. It could be argued that the acquisition of the balance of the Phase 9 lands would expand the amount of green space in the City and enhance protection for significant natural features which is a City objective. Depending on how/if the acquisition is financed it could impact on the City’s ability to acquire/protect other environmental lands or other municipal initiatives.

 

FINANCIAL IMPLICATIONS

 

As this report is for information, there are no financial implications from receiving this information.  In the event that the next Council decides to purchase the lands in question, a source of financing would need to be identified, as the City does not have the funds available within its Reserves to make this purchase.

 

SUPPORTING DOCUMENTATION

 

Document 1    Phase 9 of 2006 Draft Approved Subdivision

Document 2    2006 Draft Approved Subdivision

Document 3    Lands subject to 40 per cent Agreement

Document 4    Proposed Phasing of Kanata North Lands

Document 5    Previously Anticipated Servicing

Document 6    Conceptual Sanitary Servicing

Document 7    Conceptual Water Servicing – Option A

Document 8    Conceptual Water Servicing – Option B

 

 


PHASE 9 OF DRAFT APPROVED SUBDIVISION                                        DOCUMENT 1

 


2006 DRAFT APPROVED SUBDIVISION                                                       DOCUMENT 2

 

 


LANDS SUBJECT TO 40% AGREEMENT                                                     DOCUMENT 3

 

 


PROPOSED PHASING OF KANATA NORTH LANDS                                 DOCUMENT 4

 

 


PREVIOUSLY ANTICIPATED SERVICING                                                  DOCUMENT 5

 

 

 


CONCEPTUAL SANITARY SERVICING                                                       DOCUMENT 6

 

 


CONCEPTUAL WATER SERVICING – OPTION A                                     DOCUMENT 7

 

 

 


CONCEPTUAL WATER SERVICING – OPTION B                                     DOCUMENT 8