By-law Number 59-2021 - Development Charges By-law

Perth East, Ontario · No. 59-2021 · adopted 2021-11-02 · summary & facts

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THE CORPORATION OF THE TOWNSHIP OF PERTH EAST BY-LAW NUMBER 59-2021 BEING A BY-LAW TO ESTABLISH DEVELOPMENT CHARGES FOR THE CORPORATION OF THE TOWNSHIP OF PERTH EAST November 2, 2021 WHEREAS subsection 2(1) of the Development Charges Act, 1997, S.O. 1997, c. 27, as amended (the "Act"), provides that the council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services arising from the development of the area to which the by-law applies; AND WHEREAS Council has before it a report entitled "Development Charges Background Study", dated September 3, 2021 (the "Study") prepared by Hemson Consulting Ltd., wherein it is indicated that the development of any land within the Township of Perth East will increase the need for services as defined herein; AND WHEREAS the study was made available to the public and Council gave notice to the public and held a public meeting pursuant to section 12 of the Act on September 21, 2021, prior to which the Study and the proposed development charge by-law were made available to the public and Council, heard comments and representations from all persons who applied to be heard (the "Public Meeting"); AND WHEREAS following the Public Meeting, Council afforded the public an additional period of time for the submission of further written representations; AND WHEREAS Council determined that no further public meetings were required under section 12 of the Act; AND WHEREAS Council has indicated that it intends to ensure that the increase in the need for services attributable to the anticipated development will be met; AND WHEREAS Council by passing this by- law adopts the capital program contained in the background study subject to annual budget review; AND WHEREAS Council determined that the future excess capacity identified in the Study, shall be paid for by the development charges contemplated in the Study, or other similar charges; AND WHEREAS Council has given consideration of the use of more than one development charge by-law to reflect different needs for services in different areas, also known as area rating or area specific development charges, and has determined that for the services, and associated infrastructure proposed to be funded by development charges under this by-law, that it is fair and reasonable that charges be calculated on a municipal-wide uniform basis as identified in Schedule "A" attached hereto; AND WHEREAS the Study includes an asset management plan that deals with all assets whose capital costs are intended to be funded under the development charge by-law and that such assets are considered to be financially sustainable over their full life-cycle; AND WHEREAS the Council will give consideration to incorporating the asset management plan outlined in the Study within the Township of Perth East's ongoing practices and corporate asset management strategy; NOW THEREFORE THE COUNCIL OF THE TOWNSHIP OF PERTH EAST ENACTS AS FOLLOWS: 1. INTERPRETATION 1.1 In this by-law the following items shall have the corresponding meanings: "Accessory" means a use or a detached building or structure that is naturally and normally incidental, subordinate and exclusively devoted to supporting the principle use, building or structure and located on the same lot therewith, but does not include a dwelling unless otherwise specified. Furthermore, the accessory building or structure does not through any manner or design share the same gross floor area of the principal use or occupy more than the percentage of gross floor area of the Site permitted as an accessory use by the applicable zoning by-law; "Act" means the Development Charges Act, 1997, S.O. 1997, c. 27, as amended, or any successor thereof; "Apartment Unit" means any residential unit within a building containing more than four Dwelling Units where the units are connected by an interior corridor, but does not include a special care/special need Dwelling Unit; "Board of education" has the same meaning as set out in the Education Act, R.S.O. 1990, Chap. E.2, as amended, or any successor thereof; "Bona Fide Farm Uses" means the proposed development will qualify as a farm business operating with a valid Farm Business Registration Number issued by the Ontario Ministry of Agriculture, Food and Rural Affairs and be assessed in the Farmland Realty Tax Class by the Ontario Property Assessment Corporation but excludes a Cannabis Production Facility and a business that is unrelated to the farming operations to which the property is assessed the Farmland Realty Tax Class; "Building Code Act" means the Building Code Act, 1992, S.O. 1992, c . 2 3 , as amended, or any successor thereof; "Cannabis Production Facility" means a building used, designed or intended for growing, cultivation, producing, testing, destroying, storing or distribution, excluding retail sales, of marijuana or cannabis and for the purposes of this by-law is defined as a non-residential use; "Capital Cost" means costs incurred or proposed to be incurred by the Township or a Local Board thereof directly or by others on behalf of and as authorized by the Township or Local Board, (a) to acquire land or an interest in land, including a leasehold interest, (b) to improve land, (c) to acquire, lease, construct or improve buildings and structures, (d) to acquire, construct or improve facilities including, (i) furniture and equipment other than computer equipment, and (ii) material acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act, R.S.O. 1990, Chap. P.44, as amended, or any successor thereof; and (iii) rolling stock with an estimated useful life of seven years or more, and (e) to undertake studies in connection with any matter under the Act and any of the matters in clauses (a) to (d) above, including the development charge background study required for the provision of services designated in this by-law within or outside the Township, including interest on borrowing for those expenditures under clauses (a) to (e) above that are growth-related; "Council" means the Council of the Township of Perth East; "Development" means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that the effect of increasing the size of usability thereof, and includes "Redevelopment"; "Development Charge" means a charge imposed with respect to this by-law; "Dwelling Unit" means any part of a building or structure used, designed or intended to be used as a domestic establishment in which one or more persons may sleep and are provided with culinary and sanitary facilities for their exclusive use; "Existing" means the number, use and size that existed as of the date this by-law was passed; "Existing Industrial Building" means a building used for or in connection with: (a) manufacturing, producing, processing, storing or distributing something, (b) research or development in connection with manufacturing or processing something, (c) retail sales by a manufacturer, producer or processor of something they manufactured, produced or processed, if the retail sales are at the site where the manufacturing, production or processing takes place, (d) office or administrative purposes, if they are, (i) carried out with respect to manufacturing, producing, processing, storage or distributing of something, and (ii) in or attached to the building or structure used for that manufacturing, producing, processing, storage or distribution; "Farm Building" means that part of a bona fide farming operation encompassing barns, silos and other ancillary Development to an agricultural use, but excluding a Residential Use; "Garden Suite" means a one-unit detached residential structure containing bathroom and kitchen facilities that is ancillary to an existing residential structure and that is designed to be portable; "Gross Floor Area" means: (a) in the case of a residential building or structure, the total area of all floors above grade of a Dwelling Unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the Dwelling Unit from any other Dwelling Unit or other portion of a building; and (b) in the case of a non-residential building or structure, or in the case of a mixed-use building or structure in respect of the non-residential portion thereof, the total area of all building floors above or below grade measured between the outside surfaces of the exterior walls, or between the outside surfaces of exterior walls and the centre line of party walls dividing a Non-Residential Use and a Residential Use, except for: (i) a room or enclosed area within the building or structure above or below that is used exclusively for the accommodation of heating, cooling, ventilating, electrical, mechanical or telecommunication equipment that service the building; (ii) loading facilities above or below grade; and (iii) part of the building or structure below grade that is used for the parking of motor vehicles or for storage or other accessory use; "Local Board" means a school board, public utility, commission, transportation commission, public library board, board of park management, local board of health, board of commissioners of police, planning board, or any other board, commission, committee, body or local authority established or exercising any power or authority under any general or special Act with respect to any of the affairs or purposes, including school purposes, of the Township or any part or parts thereof; "Local Services" means those services, facilities or things which are under the jurisdiction of the Township and are related to a plan of subdivision or within the area to which the plan relates in respect of the lands under Sections 41, 51 or 53 of the Planning Act, R.S.O. 1990, Chap. P.13, as amended (the "Planning Act"); "Mobile Home" means a prefabricated Dwelling Unit designed and intended to be transported or portable for movement from site to site, and includes enclosed additions thereto not exceeding 9.2 sq. metres (100 sq. feet) and for the purposes of the calculation of the Development Charge are considered Single Detached Dwelling Units; "Multiple Dwelling" means all dwellings other than single-detached, semi- detached and Apartment Unit Dwellings; "Non-Residential Use" means a building or structure of any kind whatsoever used, designed or intended to be used for other than a Residential Use; "Nursing Home" means a residential building or the residential portion of a mixed-use building licensed as a nursing home by the Province of Ontario; "Official Plan" means the Official Plan adopted for the Township, as amended and approved; "Owner" means the owner of land or a person who has made application for an approval for the development of land upon which a Development Charge is imposed; "Place of Worship" means that part of a building or structure that is exempt from taxation as a place of worship under the Assessment Act, R.S.O. 1990, c. A.31, as amended (the "Assessment Act"); "Rate" means the interest rate established weekly by the Bank of Canada based on Treasury Bills having a term of 91 days; "Regulation" means any regulation made pursuant to the Act; "Residential Dwelling" means a building, occupied or capable of being occupied as a home, residence or sleeping place by one or more persons, containing one or more Dwelling Units but not including motels, hotels, tents, truck campers, tourist trailers, mobile camper trailers or boarding, lodging or rooming houses; "Residential Use" means the use of a building or structure or portion thereof for one or more Dwelling Units. This also includes a Dwelling Unit on land that is used for an Agricultural Use; "Retirement Home or Lodge" means a residential building or the residential portion of a mixed-use building which provides accommodation primarily for retired persons or couples where each private Bedroom or living accommodation has a separate private bathroom and separate entrance from a common hall but where common facilities for the preparation and consumption of food are provided, and common lounges, recreation rooms and medical care facilities may also be provided; "Semi-Detached Dwelling" means a building divided vertically into two Dwelling Units each of which has a separate entrance and access to grade; "Service" means a service designated in Schedule "A" to this by-law, and "Services" shall have a corresponding meaning; "Servicing Agreement" means an agreement between a landowner and the Township relative to the provision of municipal services to specified land within the Township; "Single Detached Dwelling Unit" means a residential building consisting of one Dwelling Unit and not attached to another structure and includes Supplementary Farm Dwelling Units, Mobile Homes and garden suites; "Supplementary Farm Dwelling Unit" means an additional farm residence in the form of a non-permanent Dwelling Unit that can be easily removed once the need for the additional farm residence has been fulfilled. This type of unit accommodates the farm family, farm retirees, or farm labourers working on the farm operation; "Township" means The Corporation of the Township of Perth East; "Zoning By-Law" means the Zoning By-Law of the Township, or any successor thereof passed pursuant to section 34 of the Planning Act, S.O. 1990. 2. DESIGNATION OF SERVICES 2.1 The categories of Services for which Development Charges are imposed under this by-law are as follows and also outlined in Schedule "A": - Fire Services - Library Services - Parks and Recreation - Development-Related Studies - Services Related to a Highway: o Public Works o Roads and Related - Water Services - Wastewater Services 3. APPLICATION OF BY-LAW RULES 3.1 Development charges shall be payable in the amounts set out in this by-law where: (a) the lands are located in the area described in section 3.2 of this by- law; and (b) the development of the lands requires any of the approvals set out in subsection 3.4(a) of this by-law. Area to Which By-law Applies 3.2 Subject to section 3.3 of this by-law, this by-law applies to all lands in the Township whether or not the land or use thereof is exempt from taxation under section 13 or the Assessment Act. 3.3 Notwithstanding section 3.2 of this by-law above, this by-law shall not apply to lands that are owned by and used for the purposes of: (a) the Township or a Local Board thereof; (b) a board of education; or (c) The Corporation of the County of Perth or a Local Board thereof. Approvals for Development 3.4 (a) Development Charges shall be imposed on all lands, buildings or structures that are developed for Residential Uses or Non-Residential Uses if the Development requires: (i) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; (ii) the approval of a minor variance under section 45 of the Planning Act; (iii) a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; (iv) the approval of a plan of subdivision under section 51 of the Planning Act; (v) a consent under section 53 of the Planning Act; (vi) the approval of a description under section 9 of the Condominium Act, R.S.O. 1998, Chap. C.19, as amended, or any successor thereof; or (vii) the issuing of a permit under the Building Code Act in relation to a building or structure. (b) No more than one Development Charge for each Service designated in section 2.1 of this by-law shall be imposed upon any lands, buildings or structures to which this by-law applies even though two or more of the actions described in subsection 3.4(a) of this by-law are required before the lands, buildings or structures can be developed. (c) Despite subsection 3.4(b) of this by-law, if two or more of the actions described in subsection 3.4(a) of this by-law occur at different times, additional Development Charges shall be imposed if the subsequent action has the effect of increasing the need for Services. RULES WITH RESPECT TO EXEMPTIONS FOR INTENSIFICATION OF EXISTING HOUSING 3.5 (a) Pursuant to subsections 2(3) and (3.1) of the Act, no Development Charge shall be imposed with respect to the following: (i) the enlargement of an existing Dwelling Unit; (ii) the creation of additional Dwelling Units as prescribed in the Regulation, subject to any restrictions as set out in the Regulation, in prescribed classes of existing residential buildings or prescribed structures ancillary to existing residential buildings as set out in the Regulation; or (iii) the creation of a second Dwelling Unit in prescribed classes of proposed new residential buildings as set out in the Regulation. (b) Where the requirements of subsections 3.5(a) (ii) or (iii) of this by-law are not met, Development Charges shall be calculated and collected in accordance with Schedule "B" to this by-law for any additional Dwelling Units. RULES WITH RESPECT TO AN "INDUSTRIAL" EXPANSION EXEMPTION 3.6 (a) Notwithstanding sections 3.1 to 3.4 of this by-law, if a Development includes the enlargement of the Gross Floor Area of an Existing Industrial Building, the amount of the Development Charge that is payable in respect of the enlargement is determined in accordance with the following: (i) Subject to subsection 3.6(a)(iii) of this by-law, if the Gross Floor Area is enlarged by 50 percent or less of the lesser of: (1) the Gross Floor Area of the Existing Industrial Building, or (2) the Gross Floor Area of the Existing Industrial Building before the first enlargement for which: (A) an exemption from the payment of Development Charges was granted; or (B) a lesser Development Charge than would otherwise be payable under this by-law, or predecessor thereof, was paid, the amount of the Development Charge in respect of the enlargement is zero; (ii) Subject to subsection 3.6(a)(iii) of this by-law, if the Gross Floor Area is enlarged by more than 50 per cent of the lesser of: (1) the Gross Floor Area of the Existing Industrial Building, or (2) the Gross Floor Area of the Existing Industrial Building before the first enlargement for which: (A) an exemption from the payment of Development Charges was granted, or (B) a lesser Development Charge than would otherwise be payable under this by-law, or predecessor thereof, was paid, pursuant to section 4 of the Act and this subsection, the amount of the Development Charge in respect of the enlargement is the amount of the Development Charge that would otherwise be payable multiplied by the fraction determined as follows: (3) determine the amount by which the enlargement exceeds 50 per cent of the Gross Floor Area before the first enlargement, and (4) divide the amount determined under subsection (a) by the amount of the enlargement. (iii) For the purposes of calculating the extent to which the Gross Floor Area of an Existing Industrial Building is enlarged in subsections 3.6(a)(i) and 3.6(a)(ii) of this by-law, the cumulative Gross Floor Area of any previous enlargements for which: (1) an exemption from the payment of Development Charges was granted, or (2) a lesser Development Charge than would otherwise be payable under this by-law, or predecessor thereof, was paid, shall be added to the calculation of the Gross Floor Area of the proposed enlargement. (iv) For the purposes of this subsection 3.6(a), the enlargement must not be attached to the Existing Industrial Building by means only of a tunnel, bridge, passageway, canopy, shared below grade connection, such as a service tunnel, foundation, footing or parking facility. Other Exemptions/Discounts 3.7 The following exemptions and/or discounts are applicable: (a) Notwithstanding the provisions of this by-law, Development Charges shall not be imposed with respect to: (i) lands, buildings or structures used or to be used for a Place of Worship or for the purposes of a cemetery or burial ground exempt from taxation under the Assessment Act; (ii) a public hospital receiving aid under the Public Hospitals Act, R.S.O. 1990, c. P.40, as amended, or any successor thereof; (iii) the erection of a temporary building without a foundation defined in the Building Code for a period not exceeding nine consecutive months; or, (iv) Bona Fide Farm Uses (v) Accessory Building Amount of Charges Residential 3.8 The Development Charges set out in Schedule "B" shall be imposed on Residential Uses of lands, buildings or structures, including a Dwelling Unit accessory to a Non-Residential Use and, in the case of a mixed use building or structure, on the Residential Uses in the mixed use building or structure, according to the type of residential unit, and calculated with respect to each of the Services according to the type of Residential Use. Non-Residential 3.9 The Development Charges described in Schedule "B" of this by-law shall be imposed on Non-Residential Uses of lands, buildings or structures, and, in the case of a mixed use building or structure, on the Non-Residential Uses in the mixed use building or structure, and calculated with respect to each of the Services according to the total floor area of the Non-Residential Use. Reduction of Development Charges for Redevelopment 3.10 Despite any other provisions of this by-law, where, as a result of the Redevelopment of land, a building or structure existing on the same land within 5 years prior to the date of payment of Development Charges in regard to such Redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the Redevelopment, the Development Charges otherwise payable with respect to such Redevelopment shall be reduced by the following amounts: (a) in the case of a residential building or structure, or in the case of a mixed-use building or structure, the Residential Uses in the mixed- use building or structure, an amount calculated by multiplying the applicable Development Charge under section 3.8 of this by-law by the number, according to type, of Dwelling Units that have been or will be demolished or converted to another principal use; and (b) in the case of a non-residential building or structure or, in the case of mixed-use building or structure, the Non-Residential Uses in the mixed-use building or structure, an amount calculated by multiplying the applicable Development Charges under section 3.9 of this by-law, by the Gross Floor Area that has been or will be demolished or converted to another principal use; provided that such amounts shall not exceed, in total, the amount of the Development Charges otherwise payable with respect to the Redevelopment. 4. LOCAL SERVICE INSTALLATION 4.1 Nothing in this by-law prevents Council from requiring, as a condition of an agreement under sections 51 or 53 of the Planning Act that the Owner, at his or her own expense, shall install or pay for such Local Services, within the plan of subdivision or within the area to which the plan relates, as Council may require, or that the Owner pay for the local connection to a storm drainage facility and associated administration, processing, or inspection fees, related to the approval or within the area to which the approval relates. 5. TIMING OF CALCULATION AND PAYMENT 5.1 The total amount of Development Charges shall be calculated and be payable pursuant to this by-law, in accordance with section 26, section 26.1, and section 26.2 of the Act. 5.2 Where section 26.1 and section 26.2 of the Act do not apply, the total amount of Development Charges shall be calculated and be payable pursuant to this by-law as the date of the first building permit is issued. 5.3 Where Development Charges apply to land in relation to which a building permit is required, the building permit shall not be issued until the Development Charge has been paid in full or as otherwise required in accordance with the Act. 5.4 Notwithstanding sections 5.1 and 5.2 of this by-law, an Owner and the Township may enter into an agreement to provide for the payment in full of a Development Charge, before building permit issuance or later than the issuing of a building permit, in accordance with section 27 of the Act. 5.5 If a Development does not require a building permit, the Development Charge shall be calculated and paid in full at the Rate in effect at the time the approval is granted as a condition of the earliest of any of the approvals required for the Development as enumerated in section 3.4 of this by-law. 6. INTEREST PAYMENTS 6.1 The Township may charge interest on the installments required by subsection 26.1(3) of the Act from the date the Development Charge would have been payable in accordance with section 26 of the Act to the date the installment is paid. 6.2 Where subsections 26.2(1) (a) or (b) of the Act applies, the Township may charge interest on the Development Charge from the date of the application referred to in the application clause to the date the Development Charge is payable under subsection 26.2(3) of the Act. 6.3 The Township may determine, by Council resolution or policy external to this by-law, interest rates in relation to subsections 26.2(3) of the Act. 7. RESERVE FUNDS 7.1 Monies received from payment of Development Charges under this by-law shall be maintained in separate reserve funds as per the Services set out in Schedule "A", plus interest earned thereon. 7.2 Monies received for the payment of Development Charges shall be used only in accordance with the provisions of section 35 of the Act. 7.3 Where any Development Charge, or part thereof, remains unpaid after the due date, the amount unpaid shall be added to the tax roll and shall be collected as taxes. 7.4 Where any unpaid Development Charges are collected as taxes under section 7.3 of this by-law, the monies so collected shall be credited to the Development Charge reserve funds referred to in section 7.1 of this by-law. 7.5 The Treasurer shall, in each year, furnish to Council a statement in respect of the reserve funds established hereunder for the prior year, containing the information set out in section 43 of the Act and section 12 of the Regulation. 8. REFUNDS OR CORRECTIONS 8.1 Refunds or partial refunds of Development Charges that have been paid will be made, without interest, where: (a) A building permit is cancelled, revoked, or amended for any reason prior to the commencement of construction resulting in an overpayment of Development Charges to the Township, subject to the payments of the applicable refund requests fee as set out by the Township from time to time in its Fees and Charges By-law, as amended; or (b) An internal clerical error, including the transportation of figures, a typographical or similar error, has occurred with respect to the calculation of a Development Charge which resulted in an overpayment to the Township. 8.2 Additional payment of Development Charges shall be made where a clerical or factual error, including transportation of figures, a typographical or similar error, has occurred with respect to the calculation of a Development Charge under this by-law or any other by-law which resulted in an underpayment to the Township or any other government entity. 9. PAYMENT BY SERVICES 9.1 Despite the payment required under sections 3.8, 3.9 and 3.10 of this by-law, Council may by agreement, give a credit towards a Development Charge in exchange for work that relates to a service to which a Development Charge relates under this by-law. 10. INDEXING 10.1 Development Charges imposed pursuant to this by-law shall be adjusted annually, without amendment to this by-law, commencing on the 1st of January 2023 and each year thereafter, in accordance with the prescribed index in the Act. 11. SCHEDULES 11.1 The following schedules shall form part of this by-law: Schedule "A" - Schedule of Services to which Development Charges are Imposed Development Charge Schedules Schedule "B" - Schedule of Development Charges Effective November 3, 2021 (Municipal-Wide) 12. CONFLICTS 12.1 Where the Township and an Owner or former Owner have entered into an agreement with respect to land within the area to which this by-law applies, and a conflict exists between the provisions of this by-law and such agreement, the provisions of the agreement shall prevail to the extent that there is a conflict. 12.2 Notwithstanding section 12.1 of this by-law, where a development which is the subject of an agreement to which section 12.1 of this by-law applies, is subsequently the subject of one or more of the actions described in subsection 3.4(a) of this by-law, an additional Development Charge in respect of the Development permitted by the action shall be calculated, payable and collected in accordance with the provisions of this by-law if the Development has the effect of increasing the need for Services, unless such agreement provides otherwise. 13. SEVERABILITY 13.1 If, for any reason, any provision of this by-law is held to be invalid, it is hereby declared to be the intention of Council that all the remainder of this by-law shall continue in full force and effect until repealed, re-enacted, amended or modified. 14. DATE BY-LAW IN FORCE 14.1 This by-law shall come into effect at 12:01 AM on November 3rd, 2021. 15. DATE BY-LAW EXPIRES 15.1 This By-law will expire at 12:01 AM on November 4th, 2026 unless it is repealed by Council at an earlier date. READ A FIRST AND SECOND TIME THIS 2nd DAY OF NOVEMBER, 2021. READ A THIRD TIME AND PASSED THIS 2nd DAY OF NOVEMBER, 2021. Eric Bell, Acting Municipal Clerk Rhonda Ehgoetz, Mayor SCHEDULE "A" SERVICES TO WHICH DEVELOPMENT CHARGES ARE IMPOSED Service Library Services Fire Services Parks and Recreation Services Development-Related Studies Services Related to a Highway: - Public Works - Roads & Related Water Services (Milverton, Shakespeare and wherever service is available) Wastewater Services (Milverton, Shakespeare and wherever service is available) SCHEDULE "B" MUNICIPAL-WIDE CHARGES SCHEDULE OF DEVELOPMENT CHARGES EFFECTIVE JANUARY 1, 2026