Report to/Rapport au :
Planning Committee
Comité de l'urbanisme
and Council / et au
Conseil
May
9, 2012
9 mai 2012
Submitted by/Soumis par : Nancy Schepers, Deputy City Manager, Directrice municipale
adjointe, Planning and
Infrastructure/Urbanisme et Infrastructure
Contact Person / Personne
ressource: Contact
Person/Personne-ressource John L Moser - Management/Urbanisme et Gestion de la croissance
(613) 580-2424 x28869, John.Moser@ottawa.ca
SUBJECT:
|
|
OBJET :
|
Redevances d’aménagement de secteurs distincts – Raccordement de deux
parties actuelles de l’avenue Provence |
REPORT RECOMMENDATIONS
That Planning Committee recommend that
Council approve:
1. Debt financing and expenditure of $1,100,000 in
2012 for the construction of the Provence Avenue connection as described in
this report; and
2. The Area-specific Development Charge Levy described
in this report to repay the expenditure including all carrying costs.
RecommandationS du rapport
Que le Comité de
l’urbanisme recommande au Conseil d’approuver :
1.
Un financement par emprunt et une dépense de 1 100 000 $
en 2012 pour la construction du raccordement de l’avenue Provence décrit dans
le présent rapport; et
2.
Les redevances d’aménagement spécifiques décrites dans le présent
rapport, afin d’assurer le remboursement de la dépense, y compris les coûts de
portage.
Background
Provence Avenue
was constructed in two sections west of Trim Road and south of Innes
Road. These two sections are not
connected for a distance of approximately 450 metres. A 26-metre corridor was reserved through
vacant lands zoned Development Reserve, which are not expected to be developed
for five to 10 years. Local works are
generally described as costs that are directly attributable to the subdivision
itself. The road is categorized as a
collector and is considered the developer’s responsibility.
The City currently
owns the lands where the connection will be constructed. In addition, sanitary, storm and water
services have been installed in the right-of-way to service new development to
the south. An Area-specific By-law
amendment is proposed, in order to provide a viable mechanism for funding the
road-related capital costs and to improve future local development
circumstances. Residents living in the
community will benefit from direct access to the entire transportation
network. The City will borrow funds in
order to finance the capital expenditure and fully recover the costs using an
Area‑specific development charge within the defined geographic
boundaries.
DISCUSSION
Development-related
costs are paid for in part from development charges and by the benefiting
landowners. It is inevitable, over the
life of the by-law, that some project timing requirements and cost estimates
will be modified in order to respond to changing circumstances. The installation of local servicing typically
occurs at the time of development and would be the financial responsibility of
the affected landowner(s). In this
case, the vacant land is not expected to be developed for some time and delaying
construction only serves to hinder proper north-south traffic flows. In addition, construction of the road will
provide a direct cycling and pedestrian route from the Notting Hill community
to the south to the French Catholic High School located at Provence Avenue and
Innes Road. It is of fundamental
importance to the local community that the City puts in place an interim
financing plan to pay for the installation of this portion of the servicing
costs.
The proposed
capital funding approach is to front-end the road connection costs. This is the best method to ensure the local
infrastructure is built in a timely fashion without eroding service levels and
will also benefit the landowner by making the lands building permit
ready. Funds will be collected in the
future from residential properties in the narrowly defined benefiting area to
offset the costs of servicing this site (see Document 1). Carrying costs associated with issuing debt
to finance construction would form part of the levy requirement in order to
recoup the entire upfront investment.
Issuing debt will also
allow the landowner to access the City’s high credit rating and benefit from
the resulting lower borrowing costs.
The site specific
development charges collected within the benefiting area will be used as the
mechanism to fully recover the debenture payments. The cost of providing local servicing for
this site was estimated by staff to be $1,100,000 in 2012, which includes
engineering and contingency components but excludes annual carrying costs estimated
to be 4.069%. Should the actual cost exceed
the estimated amount, the additional portion shall be recovered from the
benefiting area.
No benefit to
existing development deduction has been made in this case for existing residents
and no contributions from other sources are anticipated. The 2012 forecasted cost is then calculated
on a per capita basis, by dividing the total by the anticipated residential
population of 1,950. The estimated cost
allocation, expressed as a charge per capita, is $835.23, which is then levied
on a per unit basis for each residential dwelling type (i.e. singles,
townhouses, apartments). For example,
in Table 1, the estimated allocation for single detached unit is $2,823
($835.23 X 3.38 persons per unit occupancy rate specifically attributable to
this area).
Anticipated repayment of the long-term debt will be dependent upon the local development circumstances; however, marketability of the residential land should increase with this servicing arrangement. The per dwelling unit charges will be indexed starting on August 1, 2013, in accordance with the annual development charge index rate, and will continue to be indexed until the infrastructure costs are fully funded. Increases in ongoing operating costs arising as a result of the completion of the road segment are considered to be negligible. A cash flow analysis has not been undertaken as the timing of the development of the vacant land is extremely difficult to predict.
RURAL IMPLICATIONS
There
are no rural implications associated with this report.
CONSULTATION
Councillor
Blais was contacted by a number of residents regarding the extension of
Provence. He also met the landowner to discuss the potential charge.
The landowner is to be contacted early in the process to discuss issues
relating to road construction including evaluation of tile drainage and timing
of construction for impact on the ongoing farm operation.
Comments by the Ward Councillor
Councillor
Blais supports the report as this link will provide pedestrian, cycling, and
vehicular connections for the surrounding community
to better access schools, parks, pathways, amenities, and other services.
LEGAL IMPLICATIONS
While there are no direct legal implications
associated with this report, it should be noted that any person or
organization may appeal a development charge by-law to the Ontario Municipal
Board. The appeal period for a development charge by-law is forty days after
the day that the by-law is passed.
RISK MANAGEMENT IMPLICATIONS
There are no risk management implications
association with the recommendation in this report.
FINANCIAL IMPLICATIONS
Should
Council approve, expenditure authority in the amount of $1,100,000, funded
through debt, will be established in a new Provence Avenue connection account.
The Area-specific Development Charge Levy will repay the debt and all carrying
costs.
Public
Works will review and determine the ongoing operating costs, and include the
additional funding requirements within the 2013 budget pressures.
ACCESSIBILITY IMPACTS
There are no
accessibility implications associated with this report.
Environmental Implications
There are no
environment implications associated with this report.
Technology Implications
There are no
technology implications to this report.
TERm of council priorities
This
extension will provide infrastructure to support mobility choices and improve
operational performance.
SUPPORTING DOCUMENTATION
Benefiting Area Document 1
DISPOSITION
Upon Council approval, staff will implement the
recommendations contained in this report.
