|
9. MUNICIPAL CAPITAL FACILITY AGREEMENT - OTTAWA ENTENTE SUR LES
IMMOBILISATIONS MUNICIPALES - BUREAU PRINCIPAL DE LA SOCIÉTÉ DE LOGEMENT
COMMUNAUTAIRE D'OTTAWA - 39, PROMENADE AURIGA |
Committee RecommendationS
That Council
approve:
1. The designation of
the Ottawa Community Housing Corporation (OCHC) head office municipally known
as 39 Auriga Drive, as a Municipal Capital Facility as permitted under section
110 of the Municipal
Act, as amended, and Ontario Regulation 603/06, as amended;
2. The authorization
that property taxes, both municipal and education, be exempted under the
Municipal Capital Facilities Agreement;
3. That this designation
be implemented by way of a standard form Municipal Capital Facilities Agreement
with the Ottawa Community Housing Corporation and subsequent enactment of a
by-law in accordance with the requirements of the Municipal Act, as amended,
drafts of which are attached to this report as described in documents 1 and 2;
and
4. That the City
Treasurer be delegated the authority to finalize and execute the Municipal
Capital Facilities Agreement on behalf of the City.
RecommandationS du comité
Que le Conseil
approuve ce qui suit :
1. La désignation du bureau principal de
la Société de logement communautaire d'Ottawa (SLCO), dont l’adresse municipale
est le 39, promenade Auriga, comme immobilisation municipale, tel qu’autorisé
en vertu de l’article 110 de la Loi sur les municipalités, modifiée, et
du Règlement de l’Ontario 603/06, modifié;
2. L’autorisation de dispense des impôts
fonciers, municipaux et à vocation scolaire, en vertu de l’entente sur les
immobilisations municipales;
3. Que cette désignation soit appliquée
dans le cadre d’une entente standard sur les immobilisations municipales avec
la Société de logement communautaire d'Ottawa et par suite de l’adoption
subséquente d’un règlement conforme aux exigences de la Loi sur les
municipalités, modifiée, dont on peut trouver ci-joint des versions
provisoires, ainsi que l’indique les documents 1 et 2; et
4. Que le pouvoir de mettre la touche
finale à l’entente municipale sur les immobilisations, et d’exécuter cette
entente, soit délégué à la trésorière municipale.
Documentation
1. City Treasurer's report dated 9 November 2007
(ACS2007-CMR-FIN-0035).
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
20 November 2007 / le 20 novembre 2007
Submitted by/Soumis par : Marian
Simulik, City Treasurer / trésorière municipale
Contact
Person/Personne ressource : Ken Hughes,
Manager of Revenue / Gestionnaire, Recettes
(613)
580-2424,Ext./poste 13485, Ken.Hughes@ottawa.ca
REPORT RECOMMENDATIONS
That the Corporate Services
and Economic Development Committee recommend Council approve:
1. The
designation of the Ottawa Community Housing Corporation (OCHC) head office
municipally known as 39 Auriga Drive, as a Municipal Capital Facility as
permitted under section 110 of the Municipal
Act, as amended, and Ontario Regulation 603/06, as amended;
2. The
authorization that property taxes, both municipal and education, be exempted
under the Municipal Capital Facilities Agreement;
3. That
this designation be implemented by way of a standard form Municipal Capital
Facilities Agreement with the Ottawa Community Housing Corporation and
subsequent enactment of a by-law in accordance with the requirements of the Municipal
Act, as amended, drafts of which are attached to this report as described in
documents 1 and 2; and
4. That
the City Treasurer be delegated the authority to finalize and execute the
Municipal Capital Facilities Agreement on behalf of the City.
RECOMMANDATIONS DU RAPPORT
Que le Comité des services
organisationnels et du développement économique recommande au Conseil
d’approuver ce qui suit :
1.
La
désignation du bureau principal de la Société de logement communautaire
d'Ottawa (SLCO), dont l’adresse municipale est le 39, promenade Auriga, comme
immobilisation municipale, tel qu’autorisé en vertu de l’article 110 de la Loi
sur les municipalités, modifiée, et du Règlement de l’Ontario 603/06,
modifié;
2.
L’autorisation
de dispense des impôts fonciers, municipaux et à vocation scolaire, en vertu de
l’entente sur les immobilisations municipales;
3.
Que
cette désignation soit appliquée dans le cadre d’une entente standard sur les
immobilisations municipales avec la Société de logement communautaire d'Ottawa
et par suite de l’adoption subséquente d’un règlement conforme aux exigences de
la Loi sur les municipalités, modifiée, dont on peut trouver ci-joint
des versions provisoires, ainsi que l’indique les documents 1 et 2; et
4.
Que
le pouvoir de mettre la touche finale à l’entente municipale sur les
immobilisations, et d’exécuter cette entente, soit délégué à la trésorière municipale.
BACKGROUND
Section 110 of the Municipal Act, 2001, S.O. c.25 (“Municipal Act”) as amended and Ontario Regulation 603/06, authorize Council to enter into municipal capital facilities agreements (MCFA) with organizations providing services that would otherwise be provided by the City. Municipal Capital Facilities receive certain benefits including tax relief from municipal and education taxes in exchange for the provisions of services outlined in the agreement.
Organizations whose facilities are related to the provision of social and health services and used for the general administration of the Municipality are among those that may enter into municipal capital facilities agreements with a municipality. Accordingly, the OCHC’s head office building is eligible to be declared a municipal capital facility.
The OCHC is a non-profit local housing corporation representing approximately two thirds of all social housing in Ottawa. The City of Ottawa is the sole shareholder of OCHC and the Corporation operates at arm’s length from the City. OCHC purchased the lands at 39 Auriga Drive in 2005 to be used as the corporate headquarters.
In 2000, the Social Housing Reform Act (“SHRA”) designated the City as “service manger” to provide for the efficient and effective administration of housing programs. The City, in its role as “service manager” pursuant to the SHRA, has delegated to OCHC its responsibility for managing and providing housing services and related housing programs.
In accordance with subsection 110 (6) of the Municipal Act, a municipality may exempt from municipal and school taxes the OCHC lands or a portion of it on which the municipal capital facility is located provided that the OCHC is subject to a MCFA. The property at 39 Aurgia Drive is owned by the OCHC, and is entirely occupied and used for a service or function that may be provided by the municipality. As OCHC owns and solely occupies the corporate headquarters located at 39 Auriga Drive and the purpose of this facility is to provide a corporate headquarters to OCHC in order to manage and provide social housing services to the City of Ottawa pursuant to the SHRA, it is eligible to be designated as a municipal capital facility.
To satisfy requirements of the Municipal Act and in recognition that these essential social housing services are provided by the OCHC, staff is recommending that the City enter into a MCFA, in the form attached as document 1. This agreement will cover the period commencing January 1, 2008 and will continue for 15 years or until the OCHC ceases to operate and/or provide same services to the City of Ottawa under the provisions of MCFA at that location.
Staff is further recommending that as the building is entirely used for the purposes of managing and administering social housing services for the City of Ottawa, the municipal and education tax relief be at 100%. The foregoing requires the enactment of a by-law in the form attached as document 2, that grants to OCHC an exemption from 100% of its taxation for municipal and school purposes.
CONSULTATION
The Legal Services Branch, Financial Services and OCHC have reviewed the report, the MCFA and the proposed by-law. No further consultation is deemed necessary.
FINANCIAL IMPLICATIONS
The 2008 tax relief will amount to approximately $122,000 of which $64,660 would be for City purposes and $57,340 for education purposes, which is based on the 2007 current value assessment (CVA) and tax rates. The City’s portion of the tax relief is available in the Provision for Allowances, Tax Remissions and Exemptions account.
STRATEGIC DIRECTIONS
Not applicable
SUPPORTING DOCUMENTATION
Document 1 - Draft Municipal Capital
Facilities Agreement
Document 2 - Draft Municipal Capital
Facilities By-Law
Financial Services and Legal Services will finalize the MCFA and the City Solicitor will place the draft by-law on the Agenda of Council for enactment by City Council. Pursuant to sections 110(5) and 110(8) of the Municipal Act, the City Clerk will give notice of the by-law to the Minister of Education, the Municipal Property Assessment Corporation and the school boards.
This Agreement made in triplicate, this day of , 2007.
BETWEEN:
CITY OF OTTAWA
Hereinafter referred to as the
“City”
AND:
OTTAWA COMMUNITY HOUSING CORPORATION
Hereinafter referred to as the
“Corporation”
WHEREAS THE City is designated a
service manager under the provisions of the Social Housing Reform Act;
AND WHEREAS the
Corporation is a non-profit organization that provides housing services and
related programs for the provision of residential accommodation;
AND WHEREAS the City in its role as
service manager has delegated to the Corporation its responsibility to manage
the social housing stock that was transferred from the Province of Ontario to
the City in 2000;
AND WHEREAS the Corporation owns
the property at 39 Auriga Drive in the City of Ottawa and such land is more
particularly described in Annex “A” (the Lands”);
AND WHEREAS the Corporation wishes
pursuant to Section 110 of the Municipal Act, 2001 to enter into an agreement
with the City for the use of the Lands as a Municipal Capital Facility;
AND WHEREAS the City wishes pursuant
to Section 110 of the Municipal Act, 2001 to exempt a portion of the lands from
taxation for municipal and school purposes;
AND WHEREAS the Lands will be used
for the provision of social services and general administration of those
services for the purposes of the City thus qualifying the Lands as a class of
municipal capital facility described in Ontario Regulation 603/06;
THEREFORE, in consideration of the
making of this Agreement and the mutual covenants contained herein, the parties
undertake, covenant and agree as follows:
DESIGNATION
1. The
City will by by-law (substantially in the form attached as Annex “B”) designate
the Lands as a municipal capital facility.
TERM
2. The
term of this Agreement and the designation of the Lands as a municipal capital
facility shall be from January 1, 2008 to the earliest of:
(a)
December
31, 2022;
(b)
the
day the Corporation ceases to own the Lands; or
(c)
the
day the City ceases to use the Lands as a municipal capital facility as that
term is described in Ontario Regulation 603/06 or amendments thereto.
TAX EXEMPTION
3. The City shall pursuant to Section 110(6) of the Municipal Act, 2001, exempt the "Lands" from property taxation for municipal and school purposes.
ZONING
4. For the purposes of clarity, the City acknowledges and agrees that neither this Agreement nor the proposed by-law shall in any way affect the zoning of the Lands or the permitted uses of the Lands under applicable laws.
REGISTRATION
5. The by-law referred to in Section 1 of this Agreement shall be registered by the City on title of the Lands.
OBLIGATIONS AS COVENANTS
6. Each obligation expressed in this Agreement, even though not expressed as a covenant, is considered to be a covenant for all purposes.
ENTIRE AGREEMENT
7. The Agreement contains all the covenant, agreements and understanding between the parties concerning the subject matter.
ENUREMENT
8. This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.
PARTIAL INVALIDITY
9. If any provision of this Agreement or the application of it to any person or circumstances is held to any extent invalid or unenforceable, the remainder of this Agreement or the application of the provisions to persons or circumstances other than those as to which it is held invalid or unenforceable is not affected.
FURTHER ASSURANCES
10. The parties shall do and execute all such further acts, deed, instruments or things as may be necessary or desirable for the purpose of carrying out the intent of this Agreement.
IN WITNESS WHEREOF the parties hereto have duly
executed this Agreement.
Per: ________________________________________
I have the authority to bind the
City
OTTAWA COMMUNITY HOUSING CORPORATION
Per:
_______________________________________
I have the authority to bind the
Corporation
ANNEX “A”
Part of Lot 26, Concession A, Rideau Front,
Nepean, Parts 1 and 2 Plan 4R20295; Ottawa
ANNEX “B”
Copy of By-law to be attached here
BY-LAW NO. 2007-
A by-law of the City of Ottawa to designate certain lands known municipally as 39 Auriga Drive as a municipal capital facility.
WHEREAS Section 110 of the Municipal Act, 2001, S.O. 2001, c. 25, as amended (the “Municipal Act, 2001”) permits a municipality to enter into agreements for the provision of municipal capital facilities;
AND WHEREAS Section 110 of the Municipal Act, 2001 permits a council of a municipality to designate lands within the classes of lands described in Ontario Regulation 603/06 as a municipal capital facility and to exempt that facility from taxation for municipal and school purposes;
AND WHEREAS the headquarters of the Ottawa Community Housing Corporation located at 39 Auriga Drive is the location of a municipal capital facility where the property provides for social services and general administration of those services for the purposes of the City;
AND WHEREAS the Ottawa Community Housing Corporation and the City of Ottawa have entered into a Municipal Capital Facilities Agreement substantially in the form attached as Schedule “B” that provides for public use as a municipal capital facility;
AND WHEREAS City Council, on approved this Agreement and the passing of a by-law to designate the Lands on Schedule “A” as a municipal capital facility;
THEREFORE the Council
of the City of Ottawa enacts as follows:
1.
The Council hereby designates the
lands known municipally as 39 Auriga Drive in the City of Ottawa and more
particularly described on Schedule “A” (the “Lands”) and all improvements
thereto as a municipal capital facility for the social services purposes of the
City and confirms the Agreement between the City and the Ottawa Community
Housing Corporation by which such designation is implemented and which
Agreement shall be substantially in the form attached as Schedule “B” to this
by-law.
2.
The municipal capital facility
located on the Lands which is owned and occupied by the Ottawa Community
Housing Corporation is hereby exempted from its taxation for municipal and
school purposes for the period January 1, 2008 to December 31, 2022 or for such
shorter time as the Lands are owned by the Ottawa Community Housing Corporation
or it remains a municipal capital facility as that term is defined in Ontario
Regulation 603/06.
3. The
City shall cause its clerk to give the necessary notice of the by-law
permitting the City to enter into this agreement to the Minister of Education
as provided for in subsection 110(5) of the Municipal Act, 2001.
4. The
City shall cause its clerk to give written notice of the contents of this
by-law to the Municipal Property Assessment Corporation and the secretary of
any school board if the area of jurisdiction of any such board included the
land that is exempted by this by-law, as required under section 110(8) of the Municipal
Act, 2001.
ENACTED AND PASSED
this day of , 2007.
CITY CLERK MAYOR
SCHEDULE “A”
Part of Lot 26, Concession A, Rideau Front,
Nepean, Parts 1 and 2 Plan 4R20295; Ottawa
SCHEDULE
“B”
Municipal Capital Facilities Agreement between
City of Ottawa and the Ottawa Community Housing Corporation to be attached
here.
BY-LAW NO. 2007-
-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-
A by-law of the City of Ottawa to designate
certain lands known municipally as 39 Auriga
Drive as a municipal capital facility.
-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-
Enacted by City Council at its
meeting of
-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-o-
LEGAL
SERVICES
amp
-
COUNCIL AUTHORITY:
Council
Meeting of
CSEDC -
Report , Item