Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
March 31, 2006 / le 31 mars 2006
Submitted by/Soumis par : Ned Lathrop, Deputy City Manager/Directeur
municipal adjoint,
Planning and Growth Management/Urbanisme et
Gestion de la croissance
Contact
Person/Personne ressource : Larry Morrison, Manager Infrastructure Approvals
Division
Planning and Infrastructure
Approvals/Approbation des demandes d’aménagement et d’infrastructure
(613) 580-2424 x 27807,
Larry.Morrison@ottawa.ca
REPORT RECOMMENDATION
That Corporate Services and Economic
Development Committee recommend that Council:
1.
Approve an
amendment to Development Charges By-Law 2004-308 to reflect changes in the
rates and the benefiting area for Shirley's Brook resulting from changes to the
Area Specific Development Charge Background Study dated June 28, 2004.
2.
Approve the revised
Shirley's Brook area-specific development charge collection area, growth
projections and rates listed in Document 3.
3.
Authorize the City
to enter into a Front-Ending Agreement with Klondike Development Inc. for land
acquisition, design, and construction for the Shirley's Brook Stormwater
Facility East 1 and 2, and Stream Rehabilitation, based upon the principles set
out in Document 1, and City 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.
4.
Approve the
expenditure of $3,123,000 for the land acquisition, design and construction of
the Shirley’s Brook Stormwater Facilities East 1 and 2 and stream
rehabilitation, subject to the execution of the Front-Ending Agreement.
5.
Authorize the City
to establish a budget in the amount of $3,123,000 for the related Shirley's
Brook Stormwater Facilities East 1 and 2 and stream rehabilitation land
acquisition, design, and construction, under Internal Order Number 903230: SWM
Pond Shirley's Brook
RECOMMANDATION DU
RAPPORT
Que le Comité des services organisationnels et
du développement économique recommande au Conseil :
1. D’approuver une modification au règlement municipal 2004-308 sur les redevances d’exploitation afin que celui-ci tienne compte des changements apportés à la tarification et au secteur visé pour le ruisseau Shirley par suite des modifications à l’Étude préliminaire sur les redevances d’aménagement spécifiques à un secteur du 28 juin 2004.
2. D’approuver les projections de croissance révisées en matière de redevances d’aménagement relatives au secteur du ruisseau Shirley et les tarifs indiqués dans le document 3.
3. D’autoriser la ville à conclure une entente de financement préalable avec la société Klondike Development Inc. pour ce qui concerne l’acquisition du terrain ainsi que la conception et la réalisation de l’installation de régulation des eaux pluviales Est 1 et 2 du ruisseau Shirley et le réaménagement du cours d’eau; 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 de 3 123 000 $ relatifs à l’acquisition du terrain ainsi qu’à la conception et à la réalisation de l’installation de régulation des eaux pluviales Est 1 et 2 du ruisseau Shirley et au réaménagement du cours d’eau sous réserve de la signature de l’entente de financement préalable.
5. D’autoriser la ville à approuver l’établissement d’un budget de 3 123 000 $ pour l’acquisition du terrain ainsi que la conception et la réalisation de l’installation de régulation des eaux pluviales Est 1 et 2 du ruisseau Shirley et le réaménagement du cours d’eau aux termes de l’ordre interne 903230 : gestion des eaux pluviales du ruisseau Shirley.
BACKGROUND
The Shirley's Brook Stormwater Facilities are located within the South March Community in lands bounded by March Road to the west, Klondike Road to the south, March Valley Road to the east and the upper limit of the Urban Boundary as designated in the Council Approved Official Plan. The lands are referred to as the "Kanata North Urban Expansion Area, (KNUEA)" and were brought into the urban area by Regional Official Plan Amendment #28 (ROPA). A Concept Plan and an associated Master Drainage Plan were completed in support of the ROPA. In 1999, the Shirley's Brook/Watts Creek Subwatershed Study (SBWCSS) was completed and recommended an integrated land/water management approach to development with the Shirley's Brook subwatershed. Subsequently, in 2001, the Kanata North Environmental/Stormwater Management Plan (KNESMP) was completed to compliment the previous subwatershed study. The KNESMP recommended the construction of three stormwater management facilities for the lands east of March Road, as well as, stream rehabilitation works in various reaches of the brook. Two additional ponds were recommended to service the development lands on the west side of March Road.
The City's Area Specific Development Charge Background Study of June 28, 2004 described a special charge area for the Shirley's Brook Area W-2 and Council approved Area Specific Development Charge rates set out in By-Law 2004-308, on July 14, 2004. Three stormwater management facilities and stream rehabilitation works for the lands east of March Road were included in the area specific by-law. As the ponds on the west side of March Road, previously identified in the KNESMP were benefiting a single developer, they were no longer eligible for development charges and therefore not included in the charge area.
One facility, described as SWMF West 1, is to be located just immediately east of March Road, north of Klondike Road and west of a branch of the Shirley's Brook. Two other facilities, described as SWMF East 1 and 2 are required immediately to the west of March Valley Road, with a pond on either side of a branch of Shirley's Brook. The stream rehabilitation works are to be completed on a reach-by-reach basis in conjunction with the construction of the associated stormwater facilities.
DISCUSSION
Klondike Developments Inc. (KDI) has submitted applications for Zoning and a Plan of Subdivision for lands within the KNUEA. For the lands to be developed, stormwater management facilities SWMF East 1 and 2, and the Shirley's Brook Stream Rehabilitation are required. To do so, the developer must enter into a Front-Ending Agreement with the City. To accommodate this, amendments are required to the area specific charge to more accurately reflect the anticipated land uses.
At the time of approving the current special area charge, the subject lands were designated in the City Council Approved Official Plan as Enterprise Area. The Enterprise Area designation required at least 50% of the developable lands be devoted to employment uses. Subject to certain criteria, residential development is also permitted in an Enterprise Area. Through Official Plan Amendment #28, the Enterprise Area was changed to General Urban. The change in designation affects the development charge rate due to differences in the distribution of residential and non‑residential lands.
The total lands that contribute flow into these reaches of the Shirley's Brook and to the three storm ponds has changed. Morgan's Grant Phase 13 lands are now discharging into the special charge area and as such these lands must be accounted for in the development charge rate. Interim financial arrangements have been made through the subdivision agreement for these new lands. As such, it is necessary that the City approve an amendment to Development Charges By‑Law 2004-308 to reflect changes in the rates and the benefiting area, and approve the revised area-specific development charge collection area, growth projections, and rates listed in Document 3.
The estimated cost for the three storm ponds and stream rehabilitation is estimated as follows: SWMF West 1 is $973,000, SWMF East 1 is $1,350,000, SWMF East 2 is $1,340,000 and the stream rehabilitation is $433,000. KDI is prepared to front-end the total cost of the design, construction and land acquisition for SWMF East 1 and 2, along with the associated stream rehabilitation works. As such it is recommended that City Council approve the expenditure of $3,123,000 for land acquisition, design, and construction for the construction of the Shirley's Brook Stormwater Facilities East 1 and 2, and stream rehabilitation, and authorize the City to enter into a Front-Ending Agreement with Klondike Development Inc. based on 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 and the City Solicitor.
CONSULTATION
Given the increased land area to the area specific charge, an amendment to the bylaw is the required. An amendment to the Development Charge By-Law requires consultation with the public. The public meeting will occur at the Corporate Services and Economic Development meeting of April 18, 2006. A notice of the proposed By-Law amendment was advertised in Le Droit and the Citizen newspapers on April 7 2006, and April 14 2006. Copies of the amendment to the W-2 Background Study information was made available to the public as of March 27 2006.
Klondike Developments Inc. has agreed to participate as a front-ender in accordance with the principles set forth 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, the overall cost of Area W-2 projects totalled $ 4,429,000. Based on the 2004 anticipated land use within Area W-2, the residential and non-residential attributions were 54% ($2,382,000) residential and 46% ($2,047,000) non residential. As a result of the Official Plan Amendment changing the designation from Enterprise Area to General Urban, the revised total costs to Area W-2 to $4,096,000 with an 80% allocation to Residential and a 20% allocation to non-residential. To date there has been no development within the area and as such, no development charges collected, with the exception of Minto’s Morgan’s Grant, Phase 13. Morgan’s Grant, Phase 13 has been built out with the understanding and commitment that Minto would pay the final Area-Specific Stormwater Charge as a result of a change to include their lands into the Shirley’s Brook collection area W-2. A preliminary calculation was completed for Morgan’s Grant Phase 13, resulting in a lump sum payment of $480,000 to be contributed from Minto Developments. Therefore, the resulting total allocations after netting out Morgan’s Grant Phase 13 lump sum payment will result in an allocation of $2,524,000 to residential, and $751,000 to non-residential.
As a result of the land designation changes and to the development charge benefiting area, changes to the stormwater requirements, and the revised growth projections, there will be an increase in the development charge rates. The changes are reflected in Document 3.
Costs associated for the design, construction, and land for Shirley’s Brook Ponds East 1 and 2, and stream rehabilitation will amount to $3,123,000. 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 summarized as follows.
|
Development Charge Item |
Development
Charge Up-Set Limit |
Criteria
for Repayment |
|
Design, Construction, and Land for Shirley’s Brook Ponds East 1 and 2 and Stream Rehabilitation |
$3,123,000 |
Repayment based on actual value of ponds and stream rehabilitation to an upset limit of $3,123,000. (Land cost are based on City approved land appraisals) |
The Long Range Financial Plan forecasted the construction of the Shirley’s Brook East Pond 1, and Shirley’s Brook rehabilitation in 2007 with an estimated operational impact of $20,000 per year starting in 2008. Shirley’s Brook East Pond 2 was forecasted in 2009 with an estimated operational impact of $14,000 per year starting in 2010. The existing deferred revenue account 830252 established for Shirley’s Brook Area Specific Stormwater Development Charge reserves collected from Area W-2, By-Law 2004-308, 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 the City to establish a budget in the amount of $3,123,000 for the related Shirley’s Brook Stormwater Facilities 1 and 2 and stream rehabilitation, land acquisition, design, and construction under internal order number 903230 SWM Pond Shirley’s Brook.
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, 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 Development Charge Calculation for Area Specific Stormwater Management for Area W-2, Shirley's Brook Stormwater Facilities
DISPOSITION
The report will be forwarded to City Council for a decision on April 26, 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 Council approval and the passing of the amended by-law for administration.
FRONT ENDING POLICY AGREEMENT
PRINCIPLES DOCUMENT 1
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:
DEVELOPMENT
CHARGE CALCULATION FOR AREA SPECIFIC
STORMWATER MANAGEMENT FOR AREA W-2, SHIRLEY’S BROOK STORMWATER FACILITIES DOCUMENT 3
(AREA W-2)
Prepared By Kevin Lamer
Coordinator, Development Infrastructure Forecasting and Budgets
Infrastructure Approvals Division
City of Ottawa
The Kanata Shirley’s Brook stormwater management ponds and channelization works include the construction of three stormwater ponds and channelization of a portion of the Shirley’s Brook. The above noted stormwater management ponds and channelization are included in the W-2 benefiting charge area on the schedule A. The Shirley’s Brook West SWMF # 1 West is located North of Klondike Road, East of March Road and West of the Main Branch of the Shirley’s Brook. Shirley’s Brook East SWMF # 1 is located North of the Shirley’s Brook, East of the CN Railway and West of Fourth Line Road. Shirley’s Brook East SWMF # 2, is located North of Klondike Road, South of the Shirley’s Brook, East of the CN Railway, and East of Fourth Line Road. The Shirley’s Brook Channelization works are located in the main Branch of the Shirley’s Brook, North and South of Klondike Road, East of March Road, and West of Fourth Line Road.
Schedule “A”