Report to/Rapport au :
Corporate
Services and Economic Development Committee
Comité des services organisationnels et du développement économique
and Council / et au Conseil
14 October 2003 / le 14 octobre
2003
Submitted by/Soumis par : Ned Lathrop, General
Manager/Directeur général,
Development Services/Services d'aménagement
Contact Person/Personne ressource : Larry Morrison,
Manager, Infrastructure Approvals / Gestionnaire, Approbation des demandes
d’infrastructure
(613)
580-2424 x27807, larry.morrison@ottawa.ca
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SUBJECT: |
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OBJET
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REDEVANCE
D'EXPLOITATION POUR L'INSTALLATION DE GESTION DES EAUX PLUVIALES DU RUISSEAU
CARDINAL |
REPORT
RECOMMENDATIONS
That the Corporate Services and Economic Development
Committee recommend Council:
1. Approve the City entering into a revised
development charge front-ending agreement, based upon the principles set forth
in this report, for the cost of the construction of a storm water management
pond and trunk storm sewers with several of the developers within the Cardinal
Creek watershed.
2. Refer to the 2004 Capital Budget Review the
amendment of the funding for the capital project for this purpose from $18.01
million to $18.96 million.
3. Approve that the Cumberland Development Charge
By-law be amended to reflect the participating and non-participating areas, to
reflect the new project amount and new benefiting area and inclusion of all
carrying costs of the project so that all costs continue to be recovered
through the area specific development charge.
4. Approve that for the Phase 1A and the
non-participating owners that the charge be payable upon the earlier of the
registration of a plan of subdivision and the issuance of a building permit.
5. Adopt the background study prepared by C.N. Watson
and Associates Ltd dated 11 September 2003 in respect of the Cardinal Creek
Stormwater Facility.
RECOMMENDATIONS DU RAPPORT
Que le Comité des services organisationnels et du développement économique
recommande au Conseil municipal :
1. d'approuver que la Ville conclue avec plusieurs promoteurs du bassin
hydrographique du ruisseau Cardinal une entente préliminaire sur les redevances
d'exploitation révisées, selon les principes énoncés dans le présent rapport,
pour défrayer les coûts de construction d'un bassin de rétention des eaux
pluviales et de collecteurs d'égouts pluviaux;
2. de soumettre à l'étude du budget des immobilisations de 2004 la
modification des fonds destinés au projet d'immobilisation aux fins de ces
travaux, lesquels passeront de 18,01 à 18,96 millions de dollars.
3. d'approuver la modification du Règlement municipal sur les redevances
d'exploitation de Cumberland en vue de tenir compte des secteurs participants
et non participants, des nouveaux coûts du projet et les nouveaux secteurs qui
en bénéficieront ainsi que de l'intégration de tous les coûts de détention du
projet afin que tous les frais continuent de faire l'objet de mesures de
recouvrement sous la forme d'une redevance d'exploitation spécifique au
secteur.
4. d'approuver que, pour la phase 1A et pour les propriétaires non
participants, la redevance soit payable dès la première inscription d'un plan de
lotissement et la délivrance d'un permis de construire.
5. d'adopter l'étude préliminaire rédigée par C.N. Watson and Associates
Ltd. en date du 11 septembre 2003 sur l'égout pluvial du ruisseau Cardinal.
BACKGROUND
Council adopted Planning and Development Committee
Report 20, Item 18 on 9 January 2002 to provide for the financing of the
Cardinal Creek Storm Water Management Facility and Related Trunk Storm
Sewers. Although consultation did take
place with the interested parties and no comments were received by Committee
when it considered the report, shortly after the adoption of the report,
concerns were expressed by several developers with respect to the perceived
inequity, discussed below, in the approach taken in the report.
The approach in Report 20, Item 18 involved the
division of the landowners in the Cardinal Creek watershed into
"participating" and "non-participating" owners. The participating owners would pay for a
portion of the cost of Stage 1 of the stormwater works based upon the expected
yield of dwelling units from their land.
(Stage 1 of the Cardinal Creek Stormwater works is set forth in Document
2 with the exception of the Provence Sewer.
Stage 2 is the construction of the Provence Sewer. The costs for Stage 2 are expected to be
incurred in 2005.) Letters of credit to
secure construction of the Stage 1 works were filed with the City.
The City would front-end the portion of the cost of
the stormwater works that represented the cost attributable to the expected
dwelling unit yield from the non-participating owners lands. As the participating owners pulled building
permits, they would receive a partial credit on the stormwater component on the
development charge, approximately 57%, with the balance being kept by the City
to assist in the reimbursement of the City for front-ending the
non-participating owner's share. As the
non-participating owners finally develop their lands, 57% of the stormwater component
of the development charge paid by them would go to participating owners,
according to their respective shares of the total number of dwelling units to
fulfil their entitlement to credits and the balance to the City to complete the
repayment to it.
Subsequent to the adoption of the report by Council,
certain of the participating landowners noted that they felt that the proposed
scheme imposed an inequitable burden upon them. The non-participating owners would only be called upon to make
their payment towards the stormwater component at the time of registration of
their plans of subdivision, in ordinary course a limited time before funds are
obtained from the purchaser. The
participating owners on the other hand must front end a portion of the cost of
the works and only receive their full credit when the last plan of subdivision
is registered by the non-participating landowners. While the stormwater component would be indexed in accordance
with standard practice and interest would be paid on the outstanding credits to
the participating landowners, it is acknowledged that the cash flow impact of
the scheme proposed in January, 2002 was much greater upon the participating
owners.
Further, development has proceeded much more quickly
than anticipated in the Cardinal Creek Drainage Area. Certain of the lands that fell within the non-participating area
with development expected in the latter half of this decade are now ready to
proceed.
Finally, as staff were discussing the means to deal
with the question of inequity, it also became apparent that the cost of the
Cardinal Creek Stormwater System would be greater than that anticipated. As part of the 2001 budget deliberations,
$11 million authority was approved for the Cardinal Creek Storm Water
Management Facility and Sewers. The funding for the project was to be 100%
front end financing by the developers (owners). After extensive negotiations, the participating owners requested
that the project limits be extended, adding approximately 900 meters of additional
trunk storm sewers. The additional length
of storm sewer added $7 million to the overall project cost and this additional
amount was subsequently included in the 2002 Capital Budget With the receipt of tenders and the
construction that has taken place to date, and taking into account the outstanding
claims for property acquisition by the City, it is presently estimated that the
cost of the Cardinal Creek Storm Water Management Facility is $18.96 million.
Staff agreed to pursue a means of dealing with the
inequity on the understanding that for any building permit issued after 9
January 2002, the date of the original Council approval, the stormwater
component of the development charge payable would be that which reflected the
increased cost of the works.
DISCUSSION
The
revised proposal is premised on there being three area specific charges rather
than one. Three areas would be
identified for the Cardinal Creek watershed, one each respectively for the
geographical areas of the original participating owners, one for the owners,
originally non-participating but now ready to proceed with development (the
Phase 1A owners) and one for the remaining non-participating owners. The participating landowners would continue
to be responsible for paying up front to the City their proportionate share of
the Phase 1 works. However, they would
receive a 100% credit back against the revised stormwater component of the
development charges.
For
the Phase 1A owners, it is proposed that the base charge applicable to them be
approximately 8.4% higher than that applicable to the participating
owners. This reflects the fact that the
participating owners have paid the charge for building permits issued over the
past several years and that they have posted letters of credit since 2002.
The
development charge applicable to the non-participating owners would be the
charge applicable to the Phase 1A owners, with a phased-in increase of 6% per
year in the case of the former. This
amount reflects the estimated financing cost to the City of the
infrastructure. It continues to be recommended
that, for both the Phase 1A and non-participating owners such charge be
collected at the time of the registration of a plan of subdivision (or at the
issuance of a building permit if there is no plan of subdivision). Should, through the lifting of part lot
control or otherwise the number of units on the plan exceed that anticipated at
registration, payment of the stormwater development charge will be required for
the additional units.
CONSULTATION
Staff have met with landowners on a number of
occasions. In accordance with the
Development Charges Act, notice of the public meeting was provided in the
Ottawa Citizen and Le Droit on 1 October 2003.
FINANCIAL IMPLICATIONS
As
set out in Document 2, the estimated cost of the Cardinal Creek Stormwater
Works is estimated to be $18.956 million.
It is further estimated that approximately 98% of the development in the
drainage area will be residential and 2% commercial. Deducted from the cost of the system is the amount of $2.05
million, being the available reserve funds for this project as of 9 January
2002.
With
respect to residential development, 4,452 single-detached equivalent units are
anticipated to be located with the drainage area, post 2001. The division between the participating,
Phase 1A (Additional Participating Development) and non-participating area is
set forth in Document 3. The resulting
charge attributable to the participating owners for a single detached dwelling
will be $3,625, to a Phase 1A owner will be $3,928 and that initially to a
non-participating owner, assuming development in 2004, $4,164.
To
the extent that the monies are received sooner or later than expected, there
will be an opportunity to revisit the charge, including with the comprehensive
review of all City development charges to take place in 2004.
INDEXING
As
the participating owners have contributed already in accordance with their
proportionate share to the cost of the Cardinal Creek Stormwater Works, as well
as providing letters of credit, the charge payable in respect of their lands
will not be indexed. As noted above,
the charge to the Phase 1A and non-participating owners reflects a phase-in
charge of 6% per year to reflect the financing cost to the City. No indexing will take place beyond the
phase-in.
SUPPORTING DOCUMENTATION
Document 1 - Cardinal Creek Storm Drainage Area
Benefiting Development (Map)
Document 2 - Cardinal Creek Storm Drainage Project
Cost Estimates
Document 3 - Cardinal Creek Storm Drainage Area
Benefiting Development (Table)
Document 4 - Cardinal Creek Stormwater Facility -
C.N. Watson and Associates (On file with City Clerk)
DISPOSITION
Legal Services, in cooperation with Development
Services, will submit the necessary by-law amendments and revise the
front-ending agreements.
Document 1
Document 2
Document 3
