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2. municipal capital facilities agreement –
ottawa humane society – 245 West Hunt club entente municipale sur les immobilisations – sociÉtÉ
protectrice des animaux d’ottawa – 245, west hunt club |
COMMITTEE RECOMMENDATIONS
That
Council:
1. Authorize the Deputy City Manager, City Operations
to finalize and execute a Municipal Capital Facilities Agreement (Document 1) for
the premises owned and occupied by the Ottawa Humane Society at 245 West Hunt
Club Road, and enact the associated by-law (Document 2) such that the exemption
of taxes for municipal and school purposes and of municipal development charges
be based on the portion of the facility that will be occupied for the provision
of municipal animal shelter and ancillary services (38.1%) and provided that:
a) an off-setting amount be provided to the Ottawa Humane
Society for education development charges for the above-noted portion of the
facility from the Provision for One-time and Unforeseen Expenditures ($16,300);
and,
b) the municipal portion of the planning application
and building permit fees be funded from a transfer from the Provision for
One-time and Unforeseen Expenditures ($53,900); and,
2. Approve that the City enter into a 25-year deferral
agreement for municipal development charges related to the remaining portion
(61.9%) of the facility.
RecommandationS DU Comité
Que le Conseil :
1.
autorise le directeur municipal
adjoint, Opérations municipales, à finaliser et à exécuter une entente
municipale sur les immobilisations (document 1) portant sur les locaux
appartenant à la Société protectrice des animaux d'Ottawa et occupés par elle
au 245, chemin West Hunt Club et de promulguer le règlement municipal (document
2) s'y rapportant afin que l'exemption des taxes municipales et scolaires et
des redevances municipales d'aménagement soit basée sur la part de l'immeuble
(38,1 %) qui sera occupée par la fourrière municipale et les services
auxiliaires, à condition :
a)
qu'un montant compensatoire
(16 300 $), prélevé sur la provision pour dépenses ponctuelles et imprévues,
soit versé à la Société protectrice des animaux d'Ottawa pour couvrir les
redevances scolaires d'aménagement associées à la part susmentionnée de
l'immeuble;
b)
que la part municipale
(53 900 $) des droits de demande d'aménagement et des droits de permis
de construire soit financée au moyen
d'un transfert de la provision pour dépenses ponctuelles et imprévues;
2.
approuve que la Ville conclue une
entente de 25 ans de report des redevances municipales d'aménagement associées
à la part restante (61,9 %) de l'immeuble.
Documentation
1.
Deputy
City Manager, City Operations report dated 14 April 2011 (ACS2011-COS-EPS-0015).
Report to/Rapport au:
Community and Protective Services Committee
Comité des services
communautaires et de protection
and Council / et au
Conseil
14 April 2011 / le 14 avril 2011
Submitted by/Soumis par :
Steve
Kanellakos, Deputy City Manager/Directeur municipal adjoint, City
Operations/Opérations municipales
Contact
Person/Personne ressource : Linda Anderson, Chief, By-law and Regulatory
Services
Emergency and Protective
Services/Services de protection et d'urgence
(613) 580-2424 x29257,
Linda.Anderson@ottawa.ca
|
Ref N°: ACS2011-COS-EPS-0015 |
That the Community and
Protective Services Committee recommend that Council:
1. authorize the Deputy City Manager, City Operations
to finalize and execute a Municipal Capital Facilities Agreement (Document 1) for
the premises owned and occupied by the Ottawa Humane Society at 245 West Hunt
Club Road, and enact the associated by-law (Document 2) such that the exemption
of taxes for municipal and school purposes and of municipal development charges
be based on the portion of the facility that will be occupied for the provision
of municipal animal shelter and ancillary services (38.1%) and provided that:
a)
an off-setting
amount be provided to the Ottawa Humane Society for education development
charges for the above-noted portion of the facility from the Provision for
One-time and Unforeseen Expenditures ($16,300); and,
b)
the municipal
portion of the planning application and building permit fees be funded from a
transfer from the Provision for One-time and Unforeseen Expenditures ($53,900);
and,
2. approve that the City enter into a 25-year deferral
agreement for municipal development charges related to the remaining portion
(61.9%) of the facility.
Que le Comité des services de protection et d'urgence
recommande au Conseil :
1.
d'autoriser le directeur municipal
adjoint, Opérations municipales, à finaliser et à exécuter une entente
municipale sur les immobilisations (document 1) portant sur les locaux
appartenant à la Société protectrice des animaux d'Ottawa et occupés par elle
au 245, chemin West Hunt Club et de promulguer le règlement municipal (document
2) s'y rapportant afin que l'exemption des taxes municipales et scolaires et
des redevances municipales d'aménagement soit basée sur la part de l'immeuble
(38,1 %) qui sera occupée par la fourrière municipale et les services
auxiliaires, à condition :
a.
qu'un montant compensatoire
(16 300 $), prélevé sur la provision pour dépenses ponctuelles et
imprévues, soit versé à la Société protectrice des animaux d'Ottawa pour
couvrir les redevances scolaires d'aménagement associées à la part
susmentionnée de l'immeuble;
b.
que la part municipale
(53 900 $) des droits de demande d'aménagement et des droits de
permis de construire soit financée au
moyen d'un transfert de la provision pour dépenses ponctuelles et imprévues;
2.
d'approuver que la Ville conclue une
entente de 25 ans de report des redevances municipales d'aménagement associées
à la part restante (61,9 %) de l'immeuble.
Subsections 110(1), (6) and (7) of the
Municipal Act, 2001, authorize a municipal council to enter into municipal
capital facilities agreements with certain types of organizations whereby the
organization is exempt from municipal and school taxes, and development
charges, as applicable, in exchange for the provision of services outlined in
the agreement. Municipal facilities for
the protection, regulation and control animals are among those that may be the
subject of such agreements in accordance with Ontario Regulation 603/06 under
the Act.
In 1996, in recognition of the essential
animal shelter services provided by the Ottawa Humane Society (OHS) on behalf
of the former municipalities, the former City of Ottawa entered into its first
Municipal Capital Facilities Agreement (MCFA) with the OHS exempting it from
58% of its annual assessment commencing in 1996. The 58% tax exemption was
commensurate with the percentage of the OHS facility that supported the “pound”
(now referred to as the “municipal animal shelter”) operation, which is a
service mandated by legislation to municipalities.
In exchange for tax exemption, the MCFA
required that the OHS provide pound services, sell dog licenses and collect
municipal pound release fees. In the
absence of such tax exemption, the OHS would have sought to pass on to the
municipality that operating cost through its funding arrangement with the City
for the pound and associated services, under the Municipal Animal Shelter
Services Agreement.
The aforementioned Agreement pertained to
the OHS’s facility located at 101 Champagne Avenue South and has been in place,
as renewed from time to time, since 1996.
By approximately the end of May 2011 however, the OHS will be moving its
entire operation, including the municipal animal shelter, to a much-needed and
long-anticipated new facility at 245 West Hunt Club.
Staff therefore proposes to continue the
MCFA and the related tax exemption, as provided in Document 1, commencing at
the time of execution of the agreement and continuing until June 1, 2026, or
until OHS ceases to operate and provide the same services to the City of Ottawa
under the provisions of this Agreement at that location, whichever event occurs
first. As a result of some
reconfiguration of space allocation at the new building, the portion of the
facility which is attributed to the municipal animal shelter is 38.1% of the
total square footage. The MCFA also
provides for an exemption from 38.1% of the development charges associated with
this new building for the same term as noted above.
The foregoing requires the enactment of a
by-law, as provided in Document 2, which grants to the OHS an exemption from 38.1%
of its taxation for municipal and school purposes and 38.1% of the various development
charges – the 38.1% being the portion of the facility attributable to the
municipal animal shelter.
As well, given that 38.1% of the new OHS
building houses the municipal animal shelter, it would be appropriate to
provide exemption in the form of reimbursement of planning application,
building permit and other like fees for that portion of the new building.
Further, in addition to the municipal animal
service aspect, the Ottawa Humane Society also provides a valued and
much-needed public service which is not being provided in a significant way to
Ottawa residents by any other organization.
Specifically, the Ottawa Humane Society provides a variety of services
such as adoption, education, non-municipal animal shelter (e.g. owner
surrender), emergency animal protection, and many others. Based on the foregoing, it would be
appropriate and consistent with City practice in relation to some other
non-profit organizations to provide for long-term deferral of the remaining
portion of the development charges under an agreement.
The figure below
summarizes the foregoing.
|
Item |
Value |
Source of funds |
|
Property taxes (38.1%) |
$57,000-72,000 1
|
Exempted |
|
Municipal development
charges (38.1%) |
$144,000 |
Exempted |
|
Education development
charges (38.1%) |
$16,300 |
Provision for One-Time
and Unforeseen Expenditures |
|
Planning application,
building permit fees (38.1%) |
$53,900 |
Provision for One-Time
and Unforeseen Expenditures |
|
Deferral agreement for remaining
portion of municipal development charges (61.9%) |
$233,900 |
Payment plus interest
by Ottawa Humane Society upon sale of property at 245 West Hunt Club |
1 This amount is an estimate.
The precise value of the property tax exemption cannot be accurately calculated
until an assessment of the new building is conducted once the building is
complete. The taxation would be at the residential rate.
There are no specific rural implications associated with the recommendations.
The Legal Services Branch, the Planning
& Growth Management Department and Revenue Branch have reviewed the report,
MCFA and the proposed by-law, and their comments have been incorporated. The Ottawa Humane Society supports and is
pleased with the recommendations.
Given the administrative nature of the
recommendation, no public consultation was undertaken.
COMMENTS BY THE WARD COUNCILLOR
Knoxdale-Merivale Ward 9 Councillor Egli has reviewed the report and concurs with the recommendations.
There
are no legal/risk management impediments associated with the recommendations. Subsections
110(1), (6) and (7) of the Municipal Act, 2001 together with the related
Regulation under the Act, authorize City Council to enter into a municipal capital
facilities agreement with the Ottawa Humane Society for the provision of animal
shelter services and ancillary services, and to exempt it from municipal and
school taxes, and development charges, as applicable, in exchange for the
provision of the services outlined in the Agreement.
This report has no direct impact on the City Strategic Directions.
There are no technological implications associated with the recommendation.
The proposed 38.1%
tax exemption on the property at 245 West Hunt Club will amount to approximately
$57,000-72,000 annually,
of which 80.78% represents the
municipal portion and 19.22% the education portion (2010 taxation year). Note however, that the precise value of the property tax exemption
cannot be accurately calculated until an assessment of the new building is
conducted by the Municipal Property Assessment Corporation once the building is complete.
The aforementioned amount is therefore an estimate only.
Under the Municipal Capital Facilities Agreement, the City will also exempt the municipal portion of the new facility from 38.1% of the development charges. The development charges to be waived are estimated to be $144,000. An exemption may not be offset through an increase in fees for other categories Development Charges Act, 1997, c.27 s. 5(6)3). Any reduction in the development charges collections arising from an exemption may result in a shortfall in funding to support growth-related projects. This shortfall will be addressed in the five-year review of the Development Charges By-law as required by legislation.
The portion of the education development
charges associated with the new facility, which are attributable to the
municipal animal shelter, amount to $16,300.
Further, the portion of the planning application and building permit fees,
which are attributable to the municipal animal shelter, amount to $53,900. Funding for these items is recommended to be
provided from the Provision for One-Time and Unforeseen Expenditures. The 2011 approved budget for the One-Time and
Unforeseen Provision Account was $2.8 million of which $2.4 million remains
uncommitted. If Committee and Council
approve the report recommendations, the remaining balance in the account would
be reduced accordingly.
If a 25-year agreement to provide for the
deferral of development charges related to the remaining portion of the new
Ottawa Humane Society premises, which is not part of the municipal animal
shelter (61.9%) is approved by Council, the OHS would
be responsible for payment of $233,900, plus interest, following the expiry of
that Agreement.
Document 1 – Municipal Capital Facilities
Agreement
Document 2 – Municipal Capital Facilities
By-law
By-law and Regulatory Services, in
consultation with Legal Services Branch, to finalize the Municipal Capital
Facilities Agreement for execution and to process the new Municipal Capital
Facilities By-law for enactment and to repeal the existing by-law upon final
occupancy of the new facility.
City Clerk, in
consultation with the Treasurer, to provide the notifications to the Municipal Property
Assessment Corporation, to the Minister of Education, and to the secretary of
any School Board having jurisdiction in the area, as required by the Municipal
Act, 2001.
Legal Services to prepare
the Deferral Agreement for execution.
Finance
Department will process the reimbursement offsetting the education development
charges ($16,300) and planning application and building permit fees ($53,900)
upon Council approval.
Document
1
This Agreement made
in triplicate, this day of , 2011.
BETWEEN:
CITY OF OTTAWA
Hereinafter
referred to as the “City”
AND:
OTTAWA HUMANE SOCIETY
Hereinafter
referred to as the “Society”
WHEREAS the Society operates a municipal animal shelter that
complies with Provincial legislation governing animal pounds/shelters at 245 West
Hunt Club Road in the City of Ottawa;
AND WHEREAS the Society owns the lands known municipally as 245 West
Hunt Club Road in the City of Ottawa more particularly described in Annex “A”
(the Lands”);
AND WHEREAS the City has entered into a Municipal Animal Shelter
Services (MASS) Agreement with the Society to provide animal shelter services
for the City and the Society will continue to adhere to all the provisions
outlined in that Agreement or any new (MASS) Agreement that may follow this
current one;
AND
WHEREAS the Society wishes, pursuant to Section 110 of the Municipal Act, 2001,
to enter into an agreement with the City for the use of a portion 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 from associated development charges;
AND
WHEREAS a significant portion of the Lands will be used for animal control
purposes of the City in the nature of animal shelter and ancillary services,
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 time of
execution to the earliest of:
(a)
June 1, 2026;
(b)
the day the Society 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 AND DEVELOPMENT CHARGE EXEMPTION
3. The City shall, pursuant to subsections
110(6) and (7) of the Municipal Act,
2001, exempt for the term of this Agreement the "Lands"
from 38.1% of the property taxation for municipal and school purposes, and
38.1% of the development charges imposed under the Development Charges Act,
1997, which percentage is commensurate with the percentage of the Society's
building which may be said to support the animal control services being
provided on behalf of the municipality.
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 ensure
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.
CITY OF OTTAWA
Per:
________________________________________
I have authority to
bind the City
OTTAWA HUMANE
SOCIETY
Per: _______________________________________
I have the authority
to bind the Society
ANNEX “A”
Firstly:
Part Lot 28, Concession A (RF), Formerly Township of
Nepean, Ottawa, being Part 31 on Plan 4R-23215;
Secondly:
Part Lot 28, Concession A (RF), Formerly Township of
Nepean, Ottawa, being Parts 29, 30 and 43 on Plan 4R-23215.
Document 2
BY-LAW NO. 2011-
A by-law of the City of
Ottawa to designate certain lands 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 from municipal development charges;
AND WHEREAS the Ottawa Humane Society at 245
West Hunt Club Road is the location of a municipal capital facility where a
significant portion of the property provides for the animal control purposes of
the City;
AND WHEREAS the Ottawa Humane Society and
the City of Ottawa have entered into a Municipal Capital Facilities Agreement
dated , 2011 that provides
for public use as a municipal capital facility;
AND WHEREAS City
Council, on , 2011 approved
this Agreement and the passing of a by-law to designate 245 West Hunt Club Road
as a municipal capital facility;
THEREFORE the Council of the City
of Ottawa enacts as follows:
1. The
Council hereby designates the lands described on Schedule “A” (the “Lands”) and
all improvements thereto located at 245 West Hunt Club Road in the City of
Ottawa as a municipal capital facility for the animal control purposes of the
City and confirms the Agreement dated
, 2011 between the City and the Ottawa Humane Society by which such
designation is implemented and which Agreement is attached as Schedule “B” to
this by-law.
2. The
municipal capital facility located at 245 West Hunt Club Road in the City of
Ottawa which is owned and occupied by the Ottawa Humane Society is hereby
exempted from 38.1% of its taxation for municipal and school purposes for the
period commencing upon enactment of this by-law and continuing to June 1, 2026
or until such time as the City ceases to use the Lands as a municipal capital
facility as that term is defined in Ontario Regulation 603/06, whichever occurs
first.
ENACTED AND PASSED this day of , 2011.
CITY CLERK MAYOR
SCHEDULE
“A”
Firstly: Part Lot 28, Concession A (RF), Formerly Township of Nepean, Ottawa, being Part 31
on Plan 4R-23215;
Secondly: Part Lot 28, Concession A (RF), Formerly Township of Nepean, Ottawa, being Parts 29,
30 and 43 on Plan 4R-23215.