Community Benefits Charge By-law (By-law No. 2022-307)

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By-laws contained in this section have been prepared for reference purposes only. Every effort is made to ensure the accuracy of this information; however it is not to be used in place of actual by-laws.

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A by-law of the City of Ottawa for the imposition of Community Benefit Charges.

WHEREAS the Council of the City of Ottawa may by by-law, pursuant to Section 37(2) and Section 37.1 of the Planning Act, impose community benefits charges against land to pay for the capital costs of facilities, services and matters required because of development and redevelopment in the area in which the by-law applies;

AND WHEREAS this by-law aims to factor in the provisions of Section 37 by addressing intensification of mid- to high-rise residential development or mixed-used development containing residential units in correlation with growth projections of population and development types outlined in the Official Plan;

AND WHEREAS the Community Benefits Charge addresses residential and mixed-use development and redevelopment within the City of Ottawa that meets the threshold of five (5) storeys or more in height and is a development that includes 10 or more residential dwelling units or a redevelopment that adds 10 or more such units;

AND WHEREAS the imposition of a Community Benefits Charge reduces the burden on taxpayers as it provides funds to be allocated or spent on capital costs, facilities, services and matters addressing growth within the City;

AND WHEREAS the Community Benefits Charge may address services listed in Section 2(4) of the Development Charges Act, 1997, provided that the capital costs that are intended to be funded by the community benefits charge are not capital costs that are listed to be funded under a development charge by-law or from the special account referred to in the Planning Act, Subsection 42 (15).;

AND WHEREAS Council approved a community benefits charge strategy pursuant to Section 37(9) of the Planning Act at the Council meeting of August 31, 2022; AND WHEREAS the City consulted with persons and public bodies in the development of the community benefits charge strategy pursuant to Section 37(10) of the Planning Act; Therefore the Council of the City of Ottawa enacts as follows:

In this by-law:
Basement means that level of a building having more than half of its floor to ceiling height below Grade:
City means the City of Ottawa;

Council means the Council of the City of Ottawa;

Community Benefits Charge Strategy means the community benefit strategy prepared pursuant to Subsection 37(9) of the Planning Act and approved by City Council.

Development or redevelopment means any activity or proposed activity in respect of any land, building or structure that requires

a) The passing of a zoning by-law or of an amendment to a zoning by-law;
b) The approval of a minor variance;
c) A conveyance of land to which a part lot control exemption by-law applies;
d) The approval of a plan of subdivision;
e) A consent to sever;
f) The approval of a description of a plan of condominium pursuant to the Condominium Act, 1998, S.O. 1998, c. 19; or
g) Issuance of a permit under the Building Code Act, 1992, S.O. 1992, c. 23,in relation to a building or structure.

General Manager means the General Manager, Planning, Real Estate and Economic Development or the General Manager’s designate;

Grade means the average elevation of the finished level of the ground adjoining all the walls of a building:

Gross floor area means the total area of each floor (including a mezzanine) whether located above, at or below Grade, including floor area occupied by interior walls but excluding: floor area occupied by mechanical, service and electrical equipment that serve the building; steps and landings; motor vehicle parking facilities that serve the building; laundry facilities that serve the building; play area accessory to a principal use on the lot; living quarters for a caretaker of the building; amenity space; and accessory uses located below grade;

Newly Designated Heritage Structure means a building or structure that is of cultural heritage value or interest, which may or may not be described in the Heritage Register but which is not designated under Part IV or Part V of the Ontario Heritage Act, R.S.O. 1990, c. O.18 at the time the first development application is submitted for the redevelopment, and which building or structure, prior to issuance of a building permit for the redevelopment in question, has been designated under Part IV or V of the said Act.

Owner means the registered owner of the property or a representative (applicant or developer) of the registered owner of the property.

Planning Act means the Planning Act, R.S.O. 1990 c. P.13, as amended.

Residential Unit: means a self-contained set of rooms located in a building, designed to be lived in by one or more persons, and which contains sleeping, kitchen and bathroom facilities that are intended for the exclusive use of the residents of the unit; and is not a mobile home or other vehicle.

Storey means a level of a building included between the surface of a floor and the ceiling or roof immediately above it, and includes a mezzanine but does not include a basement.

2. Community benefit charges shall be imposed to fund services and capital projects listed and outlined within the capital program framework within the Community Benefits Charge strategy and report adopted by Council on June 22, 2022.

3. The community benefits charge shall be imposed on:

a. all development of a proposed building or structure of five or more storeys and ten or more residential units, and
b. all redevelopment of a building or structure that has five or more storeys, after the redevelopment, and that adds ten or more residential units, occurring within the territorial limits of the City of Ottawa.

4. All development or redevelopment solely for uses within the exclusions prescribed in Section 1 of Ontario Regulation 509/20 made under the Planning Act, or successor regulations, as applicable, is exempt from the community benefits charge.

5. Where development or redevelopment includes uses which are within the exclusions prescribed in Section 1 of Ontario Regulation 509/20 made under the Planning Act (or successor regulations, as applicable) as well as non-exempt uses, the gross floor area of the exempt uses shall be deducted from area of the land subject to development or redevelopment for the purposes of calculating the value of the land which is subject to development or redevelopment.

6. Where redevelopment incorporates and retains a Newly Designated Heritage Structure, and is otherwise eligible to pay a community benefits charge, a reduction of 10% of the value of the community benefits charge otherwise payable under this by-law will be applied.

7. The requirement to pay a community benefits charge shall not apply to a property subject to the requirement to provide affordable housing units pursuant to the Planning Act, Sections 16 and 35.2.

8. The onus is on the owner or applicant to produce evidence to the satisfaction of the Chief Building Official establishing that the owner or applicant is entitled to an exemption or credit under the provisions of this by-law.
 

9. No building permit will be issued for development or redevelopment unless (a) the payment required by this By-law has been made or (b) arrangements that conform with this By-law for payment at a future date have been made.

10. The amount of the community benefit charge payable prior to building permit issuance is 4% of the value of the land that is the subject of the development or redevelopment.

11. The City shall provide to the applicant a valuation of the lands that are the subject of the development or redevelopment and an estimate of the community benefits charge based on that valuation upon the earlier of:

a. site plan approval for the development or redevelopment in question, or
b. application for a building permit for development or redevelopment.

12. The estimate of the Community Benefit Charge, described in section 11 above, is subject to change if at any point up to the date of building permit issuance if:

a. the area of the lands which are the subject of development or redevelopment changes;
b. the underlying valuation expires in accordance with section 13 below; or,
c. The City and the owner mutually agree to update the valuation of the lands.

13. The valuation of land provided by the City, described in Section 11, above, or any updated valuation described in Subsection 12 (c), above, will expire 24 months from the date on which it was provided, if a building permit has not been issued for the development or redevelopment in question. If this occurs, an updated valuation on the land that is the subject of development or redevelopment will be provided by the City prior to building permit issuance or earlier if requested by the applicant.

14. Notwithstanding Section 13, above, the valuation of land provided by the City described in Section 11, above, or any updated valuation described in Section 12 (c), above, may be extended for a further twelve (12) months if it is demonstrated to the satisfaction of the General Manager that construction has been delayed due to factors outside of the control of the owner.

15. The terms for community benefit charge timing and phasing of payments may be described in a development agreement required as a condition of approval of a development application. Such an agreement may allow for phased payments, for in-kind contributions, and any other matters, as determined by the General Manager, subject to the payment being required no earlier than such date authorized by the Planning Act and the in-kind contributions being determined in accordance with this by-law.

16. Notwithstanding Section 13, above, the valuation of land provided by the City described in Section 11, above, or any updated valuation described in Section 12 (c), above, shall not expire if a development agreement specifically provides for a different expiry date for the said valuation.

17. Any dispute regarding land valuation will be subject to the mechanisms and timelines outlined within the Planning Act.

18. Unless otherwise provided in this by-law or directed by Council, the community benefits charge shall be payable in cash.

19. The owner of land may provide an in-kind contribution in respect of an imposed community benefit charge, or a portion thereof, subject to the City of Ottawa Community Benefit Policy and with the written approval of the Director of the service area in question.

20. The City shall advise the owner of land of the value that will be attributed to in-kind contributions prior to the provision of the in-kind contribution.

21. All approved in-kind contributions for a given development application will reduce the community benefit charge otherwise payable by the value attributed to the in-kind contribution.

22. In circumstances where the valuation of the land which is the subject of the development or redevelopment described in expires in accordance with section 13, above, the value attributed to any in-kind contributions which have not already been provided or which the applicant is not already legally bound to provide based on a signed agreement will expire and a new valuation of any such in-kind contributions will be provided prior to building permit issuance or upon the request of the applicant.

23. All monies collected by the City pursuant to this by-law will be placed in a special account and adhere to all requirements for the administration of such accounts as per the Planning Act and regulations thereto, as amended.

24. Reports and information regarding the special account for community benefit charges shall be provided in accordance with the requirements of the Planning Act and regulations thereto, as amended.

25. The General Manager has delegated authority to enter into retainer agreements with and maintain a list of appraisers who are not City employees or members of Council to prepare appraisals required for dispute resolution pursuant to subsection 37 (38) of the Planning Act.

26. Development or redevelopment for which:

(a) A complete development application of one of the types listed in subsection 37 (3) of the Planning Act has been submitted to the City on or before the date upon which this by-law is passed; and,

(b) which would not have been subject to the requirement to enter into an agreement to provide community benefits under the former provisions of section 37 of the Planning Act,

is exempt from the Community Benefit Charge, provided that a building permit for the said development or redevelopment is issued within five (5) years of the date on which this by-law is passed.

27. Within five years after this by-law is passed, and every five years thereafter, Council shall ensure that a review of this by-law is undertaken and shall pass a resolution declaring whether this by-law requires revision.

28. Headings do not form part of this by-law and are editorially inserted for convenience of reference only.

29. This by-law may be cited as the “Community Benefits Charge By-law 2022”.

30. This by-law comes into force on September 19, 2022.

ENACTED AND PASSED this 31st day of August, 2022

CITY CLERK MAYOR