Report Template

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, Infrastru cture Approvals / Gestionnaire, Approbation des demandes d’infrastructure

(613) 580-2424 x27807, larry.morrison@ottawa.ca

Ref N°: ACS2003-DEV-APR-0235

SUBJECT:	BLACKBURN HAMLET BY-PASS DEVELOPMENT CHARGES

OBJET :	REDEVANCES D'EXPLOITATION POUR LA ROCADE DE BLACKBURN HAMLET

REPORT RECOMMENDATIONS

That Corporate Services and Economic Development Committee recommend that Council:

1. Approve the enactment of an amending by-law to the Development Charge By-law of the former Municipality of Cumberland to provide for the imposition of an area specific charge for the construction of the Blackburn Hamlet By-pass between Esprit and Trim Road with the charges as set forth in this report;

2. Subject to confirmation in the 2004 Capital Budget, approve the entering into of a front-ending agreement between Minto Land Development Corporation and the City of Ottawa in accordance with this report to provide for the reimbursement to Minto of the costs of the construction of the Blackburn Hamlet By-pass;

3. Adopt the background study prepared by C.N. Watson and Associates Ltd dated 25 September 2003 in respect of the Blackburn Hamlet By-pass.

RECOMMENDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil :

1. d'approuver la promulgation d'un règlement de modification au Règlement municipal sur les redevances d'exploitation de l'ancienne Ville de Cumberland afin de prévoir l'imposition de redevances propres à un secteur pour la construction de la rocade de Blackburn Hamlet entre les chemins Esprit et Trim, les redevances étant stipulées dans le présent rapport;

2. sous réserve de la confirmation au budget des immobilisations de 2004, d'approuver la conclusion d'un accord initial entre la société Minto Land Development et la Ville d'Ottawa, conformément au présent rapport, en vue du remboursement des coûts de construction de la rocade à la société Minto;

3. d'adopter l'étude de base préparée par C.N. Watson and Associates Ltd., en date du 25 septembre 2003, relativement à la rocade de Blackburn Hamlet.

BACKGROUND

Pursuant to the background study to the development charge by-law of the former municipality of Cumberland, the initial two lanes of Blackburn Hamlet By-pass from Tenth Line Road to Esprit Drive was to be constructed by the landowners as development proceeds in that area. The approach of the by-law is that the land for the By-pass is conveyed to the City at no cost and the construction costs are initially borne by the developer. However, as the developer proceeds in the benefiting area, the developer is reimbursed for the cost of the construction of the By-pass from the development charges that are collected.

To date, that portion of the Blackburn Hamlet By-pass from Tenth Line Road to Esprit Drive has been included in the Cumberland Development Charge works. The present report proposes to include that portion of the By-pass from Esprit Drive to Trim Road.

DISCUSSION

Development Charge

The 1999 background study for the Cumberland Development Charge by-law established a benefiting area for residential development of Planning Areas 15, 16, 17, 18, 21 and 22 on the map attached as Document 1 for the Blackburn Hamlet By-pass. At the time of the study in 1998/99, it was expected that Planning Area 23 would not develop during the planning period. Further, as noted above only Tenth Line to Esprit was included within the original by-law. With the relatively rapid development that has occurred in this area, it is now appropriate to include that portion of the By-pass from Esprit to Trim as a work to be paid for by development charges and to include Area 23 as part of the benefiting area.

Utilizing the same cost per linear metre of roadway, inclusive of contingencies, engineering and G.S.T., as was included with the 1999 study, $1,385, results in an additional cost of $2,977,750 for a total cost for the By-pass from Tenth Line Road to Trim Road of $4,085,750. This amount represents approximately one-third of the total road works in the Cumberland Development Charge work program. (32.64%). A reserve fund balance of $461,000 was on hand at the time the 1999 by-law was adopted. Therefore, allocating one-third of that amount to the By-pass, results in a net cost of $3,935,263.

The Cumberland Background Study allocates the cost for the By-pass on a 95%/5% residential to non-residential basis. The total number of single detached dwelling unit equivalents in the benefiting area is now estimated to be 7,696. This results in a charge for the 1999 base year of $486 for a single detached dwelling unit. For single detached units in areas 15, 16, 17, 18, 21 and 22 which already had included in their base charge an amount for the By-pass from Tenth Line Road to Esprit Drive, this is an increase of $319.

Table 1 below sets out the amount of the proposed changes for the area-specific arterial road charge for each of the types of dwelling units for areas 15, 16, 17, 18, 21 and 22, both for the base year of the by-law, 1999, and for 2003, taking into account the indexation that has occurred during the four year period. Table 2 sets out the proposed road charge for Area 23.

Table 1 – Cumberland Area-Specific Road Charges

Development Type (per)	1999 Charge in By-law	1999 Charge in By-law indexed to 2003	1999 Charge as Amended Herein (Proposed)	1999 Amended Charge Indexed to July 2003
Single-detached unit	$1,435	$1,800	$1,754	$2,200
Apartment unit (2 bedrooms and larger)	$820	$1,028	$1,002	$1,257
Apartment unit (bachelor and one bedroom	$574	$720	$702	$880
Other multiple (non-apartment) unit	$1,148	$1,440	$1,403	$1,760
Sq. ft. of commercial/institutional GFA	$0.104	$0.123	$0.137	$0.162
Sq. ft. of industrial GFA	$0.052	$0.062	$0.069	$0.082

Table 2 – Proposed Road Charge for Area 23

Development Type (per)	1999 Charge in By-law	1999 Charge in By-law indexed to 2003	1999 Charge as Amended Herein (Proposed)	1999 Amended Charge Indexed to July 2003
Single-detached unit	nil	nil	$486	$609
Apartment unit (2 bedrooms and larger)	nil	nil	$278	$349
Apartment unit (bachelor and one bedroom	nil	nil	$194	$243
Other multiple (non-apartment) unit	nil	nil	$389	$488
Sq. ft. of commercial/institutional GFA	nil	nil	$0.045	$0.053
Sq. ft. of industrial GFA	nil	nil	$0.023	$0.027

Road works are included in the Cumberland non-residential development charge on a (former) municipality wide basis. As shown in Tables 1 and 2 above, the inclusion of the By-pass from Esprit to Trim will increase the base 1999 charge for commercial/institutional development from $0.122 per square foot of gross floor area to $0.137 and that for industrial development from $0.061 to $0.069.

Front-ending Agreement

The portion of the Blackburn Hamlet By-pass from Esprit to Portobello, approximately 640 metres in length, is proposed to be constructed by Minto Land Development Corporation. The estimated cost of this construction based upon the cost per metre in the background study as indexed to 2003 ($1,737) is approximately $1.112 million. It is recommended that Minto be permitted to go forward with this construction on the basis that it will be paid by the City this amount from the development charges for the Blackburn Hamlet By-pass collected from development in the benefiting area as such development occurs.

Payments would be made to Minto on a quarterly basis. Approval in principle for this repayment is sought at this time, however actual repayment will not occur until the necessary amount has been allocated in the 2004 capital budget.

CONSULTATION

Staff have met with Minto on a number of occasions to finalize the details of this proposed arrangement. 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

N/A

SUPPORTING DOCUMENTATION

Document 1 - Benefiting Area for Blackburn Hamlet By-pass

Document 2 - Background Study C.N. Watson and Associates Ltd. (On file with City Clerk)

DISPOSITION

Legal Services will attend to the finalization of the amending by-law and the front-ending agreement, as well as the notice of the passing of the by-law. The collection and crediting of the Development Charge amounts will be done by Building Services in co-operation with Financial Services.