7. FRONT-ENDING AGREEMENT TRIM ROAD WIDENING – INNES ROAD TO APPROXIMATELY SALZBURG DRIVE

ENTENTE DE FINANCEMENT PRÉALABLE CONCERNANT L’ÉLARGISSEMENT DU CHEMIN TRIM – ENTRE LE CHEMIN INNES ET LA PROMENADE SALZBURG ENVIRON

COMMITTEE RECOMMENDATIONS

That Council:

1. Authorize the City to enter into a Front-Ending Agreement with Urbandale Corporation for the design and construction for the widening of Trim Road from Innes Road to approximately Salzburg Drive, based on the principles set forth in Document 1, and the Council approved Front-Ending Policy 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.

2. Approve the payback of $633,000 in 2008 to Urbandale Corporation for the design, and construction cost of the Trim Road Widening from development charges collected pursuant to By-Law 2004-298 be approved subject to the execution of the Front-Ending Agreement.

3. In accordance with Council approval of Front-Ending Agreement Policy, pre-commit $633,000 from the 2008 Capital Budget, subject to the execution of the Front-Ending Agreement.

RECOMMENDATIONS DU COMITÉ

Que le Conseil:

1. autorise la Ville à conclure avec Urbandale Corporation une entente de financement préalable en matière de conception et d’aménagement pour l’élargissement du chemin Trim entre le chemin Innes et la promenade Salzburg environ, en se fondant sur les principes énoncés dans le Document 1 et sur la politique liée à l’entente préalable approuvée par le Conseil dans le Document 2, après que le directeur municipal adjoint, Urbanisme et Gestion de la croissance, et le chef de contentieux auront approuvé la forme et le contenu définitifs de cette entente.

2. approuve le remboursement de 633 000 $ en 2008 des coûts de conception et d’aménagement liés à l’élargissement du chemin Trim à partir des redevances d’aménagement perçues en vertu du Règlement 2004-298, sous réserve de l’exécution de l’entente de financement préalable.

3. conformément à l’approbation par le Conseil de la politique en matière d’entente de financement préalable, engage préalablement une somme de 633 000 $ du budget des immobilisations 2008, sous réserve de l’exécution de ladite entente.

DOCUMENTATION

1. Planning and Growth Management, Deputy City Manager’s report dated
05 May 2006 (ACS2006-PGM-APR-0112).

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

5 May 2006 / le 5 mai 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 x27807, LarryMorrison@ottawa.ca

Innes (2)

Ref N° : ACS2006-PGM-APR-0112

SUBJECT:	FRONT-ENDING AGREEMENT TRIM ROAD WIDENING – INNES ROAD TO APPROXIMATELY SALZBURG DRIVE
OBJET :	ENTENTE DE FINANCEMENT PRÉALABLE CONCERNANT L’ÉLARGISSEMENT DU CHEMIN TRIM – ENTRE LE CHEMIN INNES ET LA PROMENADE SALZBURG ENVIRON

REPORT RECOMMENDATIONS

That Corporate Services and Economic Development Committee recommend Council:

1. Authorize the City to enter into a Front-Ending Agreement with Urbandale Corporation for the design and construction for the widening of Trim Road from Innes Road to approximately Salzburg Drive, based on the principles set forth in Document 1, and the Council approved Front-Ending Policy 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.

2. Approve the payback of $633,000 in 2008 to Urbandale Corporation for the design, and construction cost of the Trim Road Widening from development charges collected pursuant to By-Law 2004-298 be approved subject to the execution of the Front-Ending Agreement.

3. In accordance with Council approval of Front-Ending Agreement Policy, pre-commit $633,000 from the 2008 Capital Budget, subject to the execution of the Front-Ending Agreement.

RECOMMANDATIONS DU RAPPORT

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

1. autoriser la Ville à conclure avec Urbandale Corporation une entente de financement préalable en matière de conception et d’aménagement pour l’élargissement du chemin Trim entre le chemin Innes et la promenade Salzburg environ, en se fondant sur les principes énoncés dans le Document 1 et sur la politique liée à l’entente préalable approuvée par le Conseil dans le Document 2, après que le directeur municipal adjoint, Urbanisme et Gestion de la croissance, et le chef de contentieux auront approuvé la forme et le contenu définitifs de cette entente.

2. approuver le remboursement de 633 000 $ en 2008 des coûts de conception et d’aménagement liés à l’élargissement du chemin Trim à partir des redevances d’aménagement perçues en vertu du Règlement 2004-298, sous réserve de l’exécution de l’entente de financement préalable.

3. conformément à l’approbation par le Conseil de la politique en matière d’entente de financement préalable, engager préalablement une somme de 633 000 $ du budget des immobilisations 2008, sous réserve de l’exécution de ladite entente.

BACKGROUND

In 2003 the City and the French Language Public School Board of Eastern Ontario partnered on the construction of the Millennium Park multi field soccer facility and Gisele-Lalonde High School located on the east side of Trim Road just south of Innes Road. The soccer facility and high school required a new road now known as Millennium Boulevard. At that time, the City completed a Traffic Impact Study (TIS) to identify any required roadway modifications necessary on Trim Road at future Millennium Boulevard in order to accommodate these uses. The TIS concluded, among other things, that based on projected growth within the area there would be a need to widen Trim Road to a four lane arterial roadway from Innes Road south to Millennium Boulevard by 2008 (see Document 3). In 2004, during the development charge (DC) review, the City included the reconstruction of Trim Road south of Innes Road as a development charges project, from Innes Road south to Millennium Boulevard in 2008.

DISCUSSION

In 2005, Urbandale Corporation submitted a proposal to develop lands on the southwest corner of Trim Road and Innes Road. The proposal included a substantial commercial component, including a grocery store, located on the northern most portion of the lands and a residential component located to the south of the commercial lands. It was determined through the completion of TIS that there were roadway modifications required to accommodate the Urbandale development. These works are above and beyond the future 2008 widening works, including turning lanes, tapers, as well as signals at the entrance to the commercial lands. None of these works are considered eligible for development charges and will be funded exclusively by the developer.

Urbandale, in partnership with Sobeys, intends to commence construction of the commercial development in Spring 2006, with an estimated opening date in fall 2006. The residential lands are also expected to commence construction in 2006. Given that the City intends to widen Trim Road along the Urbandale frontage in 2008, it is appropriate to coordinate both undertakings in order to minimize disruption within the community, avoid throw away works, and minimize costs.

All of the works on Trim Road, which are needed to support the Urbandale lands, will be constructed in 2006. As such, all of the widening requirements will be constructed concurrently. Portions of these works are eligible for development charge funding. Urbandale will be front-ending the cost of the DC works and have requested repayment of development charge items in accordance with the City’s approved Front-Ending Policy. The works eligible for DC funding are sidewalks, streetlights, curbs, the two south bound through lanes, and road drainage facilities needed to drain the two southbound through lanes. In order to facilitate early construction, Urbandale will be posting a letter of credit to secure for 100% of the required Trim Road works as part of their subdivision agreement.

CONSULTATION

Urbandale Corporation have agreed to participate as the Front-Ender in accordance with the principles set forth in Document 1 and Document 2.

FINANCIAL IMPLICATIONS

The estimated cost for the design and construction of the required Trim Road widening from Innes Road to approximately Salzburg Drive is $1,188,000. This is consistent with the City’s DC by-law estimate. Of the $1,188,000, Urbandale will contribute $555,000 with the remaining $633,000 being funded from Development Charges and Benefit to Existing. Subject to Council approval, the Front-Enders 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 estimated cost to be reimbursed to the Front-Ender in 2008 and the total estimated operational impact to the City is summarized in the following tables.

Project Cost

	Percentage	Project Cost:
Trim Road Widening Innes Road to Approximately Salzburg Drive Total Estimated Cost (Inc. Design)		$1,188,000
Total Reimbursement (Inc. 10% Design)		$633,000.00
Total Development Charges	95%	$601,350
Total City Portion (BTE)	5%	$31,650

Operational Impact

Item	Length	Number of Additional Lanes		Total Amount	Year
Additional Roadway Maintenance Costs	0.350	2		$4,900	2007
Additional Storm Sewers	0.244	N/A	$537		2007
Estimated Total Operational Impact				$5,437	2007

The Long Range Financial Plan forecasted the design and construction in 2008 of the Trim Road Widening from Innes Road to Millennium Boulevard with an estimated operational impact of $8,000/year beginning in 2009. The Operational Impact table summarizes the updated operational impact to the section of Trim Road from Innes Road to approximately Salzburg Drive to the City will be an additional $5,437/per year starting in 2007, for an overall potential tax increase of 0.0006%.

It should be noted that if approved by Corporate Services and Economic Development Committee and Council, this project will become a pre-commitment for 2008.

SUPPORTING DOCUMENTATION

Document 1 Front Ending Policy Agreement Principles

Document 2 Council Approved Front Ending Policy

Document 3 Map Trim Road Widening Innes Road to Approximately Salzburg Drive.

DISPOSITION

The final form of the agreement will be prepared by Legal Services in consultation with the Planning and Growth Management Department.

FRONT ENDING AGREEMENT PRINCIPLES DOCUMENT 1

1. The Front-Ender shall be required to post a letter of credit or cash deposit equal to the estimated value of the Trim Road Widening project for a total amount of $1,079,252 (excluding design) .

2. The contract for the construction shall be administered by Urbandale Corporation to the satisfaction of the City.

3. The total City reimbursement cost of the Trim Road Widening project is set at an upset limit of $633,000 plus indexing. Should the cost exceed the upset limit, the additional cost shall be borne by the Front-Ender, and the City shall not be obligated to compensate the Front-ender for additional cost.

4. The repayment of the project costs for the Trim Widening shall be pursuant to the Council approved Front-Ending Policy as referenced in Document 2.

5. The Front-Enders will be entitled to receive indexing pursuant to conditions noted in Document 2.

POLICY FOR FRONT-ENDING AGREEMENTS

(REVISED MARCH 21, 2005) DOCUMENT 2

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:

1. All front-ending agreements with the City will be for growth-related capital works that have been included in a development charge study.

2. Stormwater ponds and related sewer works that are 100% development charge funded in the recommended by-laws will be paid back to the developer based on revenues as they are collected from the designated area. This means that at no time are the repayments to exceed the revenues received. Each front-ending agreement will define the geographic area involved and a separate and specific deferred revenue account may be set up to keep track of the revenues collected and payments made. Crediting will also be allowed for the front-ending agreements related to stormwater ponds.

3. For all other capital projects – A lump sum payment (both the development charge portion and the City portion) will be made to the developer in the year the project is identified in the City’s ten year capital plan at the time the front-ending agreement is approved. Should growth occur earlier than forecasted, then repayment would be accelerated to reflect the revised timing the City would have budgeted for the project. If growth occurs more slowly than forecasted, then the City will have an additional three years (three years from the year the project was identified in the ten year plan) to make repayments. Only in this latter case will the City’s portion of the payment be indexed beginning with the year the project was identified in the ten-year plan.

4. The development charge portion that will be reimbursed will be indexed yearly in accordance with the rate of indexation pursuant to the development charge by-laws. (City Council approved February 7, 2005)

5. Given that the City will be assuming operating costs earlier than anticipated through the front-ending agreement process, the City is not to pay any carrying costs to the developer.

6. All development charges payable by developers must be paid up front in accordance with the City’s by-law. With the exception of the stormwater ponds and related sewer works, there will not be any crediting allowed as a result of entering into a front-ending agreement. (On December 8, 2004, City Council approved, “That staff be directed to work with the industry to develop the details of a credit policy to be incorporated into the front-ending policy”.)

7. In the case where a developer(s) has front-ended a project that at the discretion of the City benefits other developers, those developers who were not part of the front-ending agreement shall pay all of their development charges owed either at the time of registration of a plan of subdivision or upon the issuance of the first conditional building permit, whichever comes first. (City Council approved July 14, 2004 Motion 16/5)

8. A report to Council is required to authorize staff to enter into a front-ending agreement. The recommendation will include the financial commitment of the City, specify the funding source(s), the project timeline and where necessary, request that a specific deferred revenue account be established. The financial comment in the report will specify the timelines for the repayment, an operating budget impact and an estimate of the year in which the operating budget impact will begin. It should also indicate the year in which the project was originally identified in the City’s ten-year capital plan. A capital project will be established upon Council approval to enter into a front-ending agreement. The status of these projects will be provided to Council on a yearly basis.

MAP TRIM ROAD WIDENING INNES ROAD TO

APPROXIMATELY SALZBURG DRIVE DOCUMENT 3