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HomeMy WebLinkAboutFIN-19-049 - 2019 Development Charges By-lawREPORT TO: Finance and Corporate Services Committee DATE OF MEETING: June 10, 2019 SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 WARD (S) INVOLVED: All DATE OF REPORT:May 30, 2019 REPORT NO.: FIN-19-049 SUBJECT: 2019 Development Charges By-law ___________________________________________________________________________ RECOMMENDATION: That the Development Charge Background Study as amended in Attachment 1 and the capital forecasts prepared in conjunction with the Study in accordance with Section 10 of the Development Charges Act, 1997 be adopted; and That future excess capacity identified in the Development Charge Background Study be paid for by development charges or other similar charges; and That where grant funding is provided for a growth related project, to the extent possible, it be used to fund the non-growth portion of the project; and That the Local Service Guidelines in the form attached to Report FCS-19-049 be approved; and That the Development Charges Bylaw law in the form attached to Report FCS-19-049 be approved. BACKGROUND: The Development Charges Act and its associated regulation allow municipalities to impose development charges to pay for growth-related capital costs to service new development. In order to do so, under the terms of the Act, municipalities must prepare a development charge background study and pass a bylaw to determine the development charges, taking the following into account: A forecast of the amount, type and location of development anticipated in the municipality for which development charges can be imposed. The average capital service levels provided by the municipality in the 10-year period immediately preceding the preparation of the background study. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 5 - 1 A review of future capital projects, including analysis of gross expenditures, funding sources and net expenditures incurred or to be incurred by the municipality, to provide for the expected development. An examination of the long term capital and operating costs for capital infrastructure for each service to which the development charges relate. Development charge (DC) bylaws have a maximum term of five years. Kitchener’s DC bylaw expires on July 1, 2019. In order to update the bylaw, a background study must be published, and at least one public meeting must be held. Council has already provided direction to publish a background study, which was posted to the th City’s website on April 25,meeting thelegislated requirement to publish the study 60 days in advance of the bylaw being passed (the bylaw and all supporting documentation is scheduled th to be passed by Council on June 24). th Also in accordance with legislation, a statutory public meeting was held on May 13where six individuals made delegations to Committee on behalf of themselves, their company, client, or organization. Staff have reviewed the feedback from the public meeting, as well as separate written submissions, and have made some adjustments to the final document (as noted later in this report) as a result of the feedback received. The City’s DC consultant (Hemson) will be in attendance to respond to questions from Council prior to the final versions of the DC informationbeingforwarded to the Council meeting on June th 24for approval. The main purpose of this report is to highlight changes from the draft information posted on April thth 25and discussed at the May 13public input meetings.Amendments have been made to the background study, the local service guidelines, and the bylaw as noted in the body of the report. In addition, the report will also provide a brief update on Bill 108, which will likely impact the Development Charges Act. REPORT: Changes to the DC Background Study& Final Proposed DC Rates(Attachment 1) The feedback received from stakeholders about the background study focused primarily on specific capital projects, but also touched on the development forecast. Staff and the City’s DC consultant have reviewed the submitted comments and have made some adjustments to the Draft DC Background Study information. The changes include relatively minor adjustments like name changes to help clarify the purpose of a specific project, to something more significant like adjusting the budget or timing of a project. All of the changes to the DC Background Study have been summarized in Attachment1to this report.Some of the amendments impactedthe proposed DC rates, with a summary of thefinal proposed rates being shown in the table below.More detailed schedules are provided at the very end of this report. 5 - 2 Final Proposed Development Charge Rate Changes Current Calculated Charge TypeLocation% Change RateRate Residential (Single)Suburban$11,572$18,73062% Residential (Single)Central Neighbourhood$6,030$12,549108% 22 Non-ResidentialSuburban$59.60/m$57.63/m-3% 22 Non-ResidentialCentral Neighbourhood$18.01/m$20.78/m15% The suburban rates have gone down slightly, mostly due to the removal of a Stormwater project (i.e. costs have gone down) and an increase to the development forecast for the suburban area (i.e. costs are spread out over more development). The central neighbourhood rates have gone up slightly, mostly due to a decrease to the development forecast for the central neighbourhoods (i.e. costs are spread out over less development). Changes to the Local Service Guidelines (Attachment 2 & Appendix G to the DC Background Study) Local Service Guidelines are being included as an appendix to the DC Background Study to better clarify what infrastructure is the responsibility of an individual developer versus the infrastructure that isfunded by DCs. Feedback received from stakeholders was reviewed by the Director of Engineering and the City’s DC consultant, and some amendments have been made to the guidelines document. The changes in general are fairly minor, such as removing reference to arterial roads as a possible direct developer responsibility, or including Transportation Impact Statements as an eligible document for determining if a project is a local service or DC eligible. All of the changes to the Local Service Guidelines have been summarized in Attachment 2 to this report. Changes to the DC Bylaw (Appendix H to the DC Background Study) Aside from the DC rates (which are an appendix to the bylaw), the only change to the DC Bylaw relates to the wording for Redevelopment Allowances (sections 6.8 to 6.11). Feedback received from the development industry indicated “mixed use” sites that include both residential and non- residentialusesshould be considered non-residentialfor determining the timeline available for redevelopment allowances. The bylaw language has been updated to clarify that mixed use sites would be treated as non-residential sites when considering redevelopment allowances. Bill 108: More Homes, More Choices Act th The May 27, Committee of the Whole agenda included report DSD-19-135(Bill 108, More Homes, More Choices Act), which provided high level information about the Bill and the impacts it would have on various pieces of Provincial legislation. One of the areas identified in the report was the Development Charges Act. At the time of writing this report, staff are aware of the following timeline for Bill 108: Friday May 31 – Deadline to provide comments about the Bill Monday June 3 - Committee will conducta line by line consideration of the Bill 5 - 3 rd Tuesday June 4 – The Bill will be reported to the Housefor 3reading and could be called to vote that day th Based on this information, Bill 108 could be passed on June 4, but many of the details (e.g. effective date for the changes, transition rules, what percentage of land value would be used to calculate the Community Benefit Charge) are still be unknown as they willbe outlined in the associated Regulation, which has not been published. Regardless of the direction of Bill 108, it is still imperative that the new DC bylaw is passed on thst June 24, since the City’s existing bylaw expires on July 1. If no updated bylaw is passed, the City will not be permitted to collectdevelopment charges. Staff have tried to anticipate the changes that will happen to the City’s DC bylaw if Bill 108 passes in its current form, and have for example, split out the DC rates into Non-Discounted (Schedule B1) and Discounted (Schedule B2) schedules. This will make it simpler to remove the Discounted service costs, should they be eliminated from the DC Act as proposed under Bill 108. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority:Effective and Efficient City Services Strategy:5.4 – Ensure the responsible stewardship of public funds within a supportive policy framework. Strategic Action:#CS41 Development Charges Background Study (2019) FINANCIAL IMPLICATIONS: Development charges are used to fund growth related capital infrastructure, with the specific projects and timing detailed in the DC Study. The proposed rates are summarizedearlier in this th report and will be formally set by Council on June 24. Once approved, the 2020-2029 Capital Budget and Forecast will be updated to reflect the approved capital program to be funded by the new DC rates. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. As noted in the report, the mandatory public meeting related to development charges happened on May 13, 2019.In addition to the statutory public meeting required by the Development Charges Act, staff met twice with the Waterloo Region Homebuilders Association (WRHBA) Liaison committee. Once in January to provide a general update about the DC process timelines, and again in April once Council had provided direction about rate increases. At the April meeting, staff provided draft versions of the DC rate tables, growth projections, historical service levels, and capital forecasts (two weeks in advance of the statutory 60-day requirement). As well, staff provided the WRHBA draft versions of the Engineering project sheets in January. nd Further, staff organized a meeting with industry stakeholders for the morning of May 2to provide an overview of the 2019 DC Study and bylaw, clarify the assumptions used in the Study, 5 - 4 answer questions, and solicit their feedback in advance of public meeting and prior to Council passing the DC bylaw. PREVIOUS CONSIDERATION OF THIS MATTER: Threeprevious reports about the 2019 Development Charges process have already been provided to Council. They are: FIN-19-013, 2019 Development Charges Overview (February 25, 2019) FIN-19-029, 2019 Development Charges Priorities & Rate Options (April 1, 2019) FIN-19-038, 2019 DevelopmentCharges Public Input (May 13, 2019) ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services 5 - 5 ATTACHMENT 1 - KITCHENER 2019 DC BACKGROUND STUDY SUMMARY OF CHANGES SINCE PUBLISHING ON APRIL 25,2019 FORECAST The population in new units in each of the sub-municipal areas has been updated. The population in the Suburban Area has increased to 52,725 (from 46,857 in Table 9 of the draft study) and the population forecasted in the Central Neighbourhood has decreased to 20,247 (from 26,115 in Table 10 of the draft study). INVENTORY (HISTORICAL AVERAGE SERVICE LEVELS) Parking services updated the committed excess capacity for the Charles & Benton and the Civic District Garages to 26 spots and 106 spots respectively. The maximum calculated funding envelope decreased by $174,406 (from $23.15 million to $22.97 million). There was no impact to the calculated rates as the capital program is below the funding envelope. “DISCOUNTED” SERVICES No changes to the costs, benefit to existing or post period benefit shares have been made. Names of the following capital items have changed to provide more clarity on the purpose of the line items: #Name as of April 25, Updated NameComments 2019 2.3.2Fire Technology Development Related Updated to better reflect the nature of the costs to be UpgradeEquipment and funded. Technology 4.1.3District Park District Park This line is specifically related to the sports fields required DevelopmentDevelopment (Sports in City District Parks Fields) 4.1.4Victoria District Park Victoria Park These parks were referred to as “District Parks” which RedevelopmentRedevelopmentmay have caused some confusion. That reference has been removed and they are now referred to as just their 4.1.5McLennan District Park McLennan Park names. RedevelopmentRedevelopment 4.1.6Huron Natural Area Huron Natural Area Park District Park Redevelopment Redevelopment 4.1.7Kiwinis Park Kiwinis Park Redevelopment 5 - 6 “NON-DISCOUNTED” SERVICES Changes made as requested by the development industry and/or review by staff: Dodge Drive Trunk Sanitary Sewer & Road Restoration: The project cost has been increased from $4,413,000 to $6,254,000 based on updated design information. The timing for design/construction remains in 2027/2028 as opposed to the requested change to 2019/2020 due to the negative impact to the DCReserve Fund. Strasburg Road South & Watermain Extension:The project has been increased by $1,000,000 as requested to allow for the construction of a round-about at New Dundee Road. Blair Creek Drive – Road & Watermain Extension:The timing for design/construction has been moved from 2027/2028 to the requested timeline of 2025/2026 to be compatible with the Strasburg Road project. Upper Hidden Valley SPS & Forcemain:The Region’s current budget allocation for the construction of River Road between Wabanaki/Goodrich and King Street is 2023/2024, although that may be changed to a later timeline. On this basis and due to the negative impact to the DC Reserve Fund, the timing for design/construction remains in 2026/2027 as opposed to the requested change to 2021/2022. Hidden Valley Creek Improvements:The funding for the EA will be movedfrom 2026 to the requested timeline of 2020 in order to provide a complete planning picture for this area. The Region’s current budget allocation for the construction of River Road between Wabanaki/Goodrich and King Street is 2023/2024, although that may be changed to a later timeline. On this basis and due to the negative impact to the DC Reserve Fund, the timing for design/construction remains in 2027/2028 as opposed to the requested change to 2022/2023. Storm/Watercourse o Projects 6.1.8, 6.1.9, and 6.1.10 “Watercourse Improvement Program” made up the majority of the capital program and they have been removed. The remaining capital expenditures can be paid for using the existing reserve fund balance and any interest accumulated based on the current timingof the projects. The City may review this service in the following DC By-law. 5 - 7 ATTACHMENT 2 - KITCHENER 2019 LOCAL SERVICE GUIDELINES SUMMARY OF CHANGES SINCE PUBLISHING ON APRIL 25, 2019 The table below outlines the amendments made to the Local Service Guidelines as a result of stakeholder input: #AmendmentComments OverviewChange “project must be listed in DC This allows more flexibility if an unanticipated project comes to Point #1Study” to “project should be listed in DC lightduring the tenure of the City’s Development Charges Study Study”.and bylaw. OverviewEntire point deleted.Point deleted to reduce confusion about how the rest of the Point #3document should be interepreted. 1.5“Roads (collector and arterial)” changed to Arterial roads would be a DC eligible project, so have been “Collector roads”removed from the local service guidelines. 2.4Added “Transportation Impact Statements” Transportation Impact Statements are another way to determine to definition.if the project should be a developer responsibility or funded through DCs. 4.3Added “as a result of the development” to Including this wording to the definition should help clarify when definition.sidewalk improvements are required to be funded by developers. 5 - 8 APPENDIX G LOCAL SERVICE GUIDELINES 5 - 9 GUIDELINES FOR DEVELOPMENT CHARGE FUNDING FOR CITY INFRASTRUCTURE The following guidelines set out the requirements for infrastructure that is included in the City of Kitchener Development Charge Study and eligible for funding from the Development Charge Fund. Generally: 1.The project should be listedin the most current City of Kitchener Development Charges Study. 2.Any infrastructure that does not add any additional capacity over and above the capacity requirement for that development is deemed to be the sole responsibility of the developer. The following principles are used to identify infrastructure which is wholly or partially eligible for funding from the Development Charge Fund. All decisions will vest with the Director of Engineering. These principles are subject to review and amendment by the City which may be independent of an amendment or update to the City’s development charge by-laws. The detailed engineering requirements for all infrastructure are governed by the City of Kitchener’s Official Plan and the Kitchener Growth Management Plan. If not specified in the Official Plan, by the approved detailed engineering standards. Collector Roads/Minor Arterials 1.1New local roads constructed internal to the development are the direct responsibility of the developer. 1.2New collector roads constructed external to the development, but serving primarily to connect a development to the main road network are a direct responsibility of the developer. 1.3When a local service road project is deemed to be oversized, to meet non-local service needs, the oversizing costs may be eligible for development charge funding. The oversizing cost is considered to be the marginal cost difference in width, from the local service need (size) to the full oversized width including but not limited to: Asphalt, Granular A, Granular B, excavation, grading. 1.4Collector and minor arterial roads internal to development - direct developer responsibility under s.59 of the DCA (as a local service). 1.5Collector roads external to development are a local service if the works are within the area in proximity to which the plan relates and therefore a direct developer responsibility under s.59 of the DCA. Otherwise, the works are included in DC calculation to the extent permitted under s.5(1) of the DCA (dependent on local circumstances). 1.6Stream crossing road works excluding underground utilities but including all other works within lands to be dedicated to the City are included in the DC calculation 5 - 10 to the extent permitted under s.5(1) of the DCA (dependent on local circumstances). 1.7If the developer is required to provide a collector road for Official Plan requirements but serving primarily to connect a development to the main road network, the collector road is a direct responsibility of the developer. 1.8Roads required to service only the proposed development or subsequent phases of the same development will not be eligible for any development charge funding. 1.9New, widened, extended or upgraded collector roads that are external to specific developments, and not captured by items 1.1 to 1.8, are considered to be eligible for development charge funding. Intersection improvements 2.1New roads (collector and arterial) and road improvements to collectors or arterial roads are included in the DC calculation to the extent permitted under s.5(1) of the DCA to limits of right of way. 2.2Intersection improvements within specific developments and all works necessary to connect entrances (private and specific subdivision) to the roadway – direct developer responsibility under s.59 of DCA (as a local service). 2.3Intersections with Regional roads and Provincial highways will be included in DC calculation to the extent that they are a City responsibility. 2.4Intersection improvements on other roads due to developmentgrowth increasing traffic will be included in DC calculation. For further clarification, all improvements to a road (and road-related infrastructure) to facilitate development are considered local services to be paid by the developer unless the works fall into one of the following categories: The improvement is designated as required for traffic flow improvement for an area greater than the development, is defined as a road improvement required by the City, and is identified through the Class Environmental Assessment process or a City Transportation Study or a Transportation Impact Statement. Such an improvement would be listed in the City’s most current Development Charges Background Study. The improvement is designated as required by City staff to serve a greater area than the development and is identified in the capital forecast and is listed in the City’s most current Development Charges Background Study. 5 - 11 Streetlights 3.1Streetlights on external roads (collector/arterial) will be included in the DC calculation. 3.2Streetlights within specific developments - direct developer responsibility under s.59 of DCA (as a local service). Sidewalks 4.1Sidewalks on Regional or City roads internal to development –direct developer responsibility under s.59 of the DCA (as a local service). 4.2Sidewalks on Regional or City roads that are external to the development are included in the DC calculation. 4.3New sidewalks that are external to a proposed development and which are required as a result of the development to connect to an existing sidewalk which is external to the proposed development - direct developer responsibility as a local service provision (under s.59 of DCA). BikeRoutes/Bike Lanes/Bike Paths/Multi-Use Trails/Naturalized Walkways 5.1 Bike lanes, within road allowance, internal to development - direct developer responsibility under s.50 of the DCA (as a local service). 5.2Bike paths/multi-use trails/naturalized walkways internal to development – direct developer responsibility under s.50 of the DCA (as a local service). 5.3Bike routes and bike lanes, within road allowance, external to development - include in DC road costs, consistent with the service standard provisions of the DCA, s.5(1). 5.4Bike paths/multi-use trails/naturalized walkways external to development - include in DC consistent with the service standard provisions of the DCA, s.5(1). 5.5Trail Bridges/Underpasses and associated works - include in area municipal DCs consistent with the service standard provisions of the DCA, s.5(1). 5 - 12 Noise Abatement Measures 6.1Internal or adjacent to Development - direct developer responsibility though local service provisions (s.59 of DCA). Traffic Control Systems 7.1Traffic Control Systems within specific developments and all works necessary to connect entrances (private and specific subdivision) to the roadway – direct developer responsibility under s.59 of DCA (as a local service). 7.2Traffic Control Systems on roads due to development growth necessitating revised traffic control - include in DC calculation. Land Acquisition for Road Allowances 8.1Land acquisition for arterial or collector roads, to the minimum widths required is achieved through dedications under the Planning Act. 8.2Land acquisition for collector/minor arterial roads - dedication under the Planning Act subdivision provision (s.51) through development lands (up to 30 metreright- of-way); in areas with limited or no development, include in area municipal DC (to the extent eligible). 8.3Land acquisition for arterial roads - dedication under the Planning Act subdivision provisions (s.51) through development lands;in areas with limited or no developments include in City DC (to the extent eligible). 8.4Land acquisition for grade separations (beyond normal dedication requirements) - Include in the DC to the extent eligible. Storm Water Management 9.1Quality, quantity and water retention works internal to the development or required due to the development are direct developer responsibility through local service provisions (s. 59 of DCA). 9.2Storm sewers 1200 mm and under are deemed to be a local service and are a direct funding responsibility of the developer. 5 - 13 9.3Storm Sewers within the development that are larger than 1200 mm are to be included in the development charge calculation. The amount of DC cost contribution for storm sewers within a development shall be calculated using tendered unit prices and shall be the difference between the cost of the actual pipe diameter and the cost of a 1200 mm pipe diameter including a 10% engineering fee. 9.4Volume control measures are required on all linear projects(roads) without restrictions, that create 0.5 or greater hectares of new and/or fully reconstructed impervious surface. The first 6.25mm of runoff from the new impervious surface must be capture. If the new or upgraded road is external to the development then it will be included in the DC calculation. If the road is internal to the development then its direct developer responsibility through local service provisions (s. 59 of DCA). Water 10.1Watermains 300 mm and under are deemed to be a local serviceand are a direct funding responsibility of the developer. 10.2Watermains within the development that are larger than 300 mm are to be included in the development charge calculation. The amount of DC cost contribution for watermains within a development shall be calculated using tendered unit prices and shall be the difference between the cost of the actual pipe diameter and the cost of a 300 mm pipe diameter including a 10% engineering fee. Only watermain and valves will be included in the calculation. 10.3Connections to trunk mains and pumping stations to service specific areas are to be a direct developer responsibility. 10.4Trunk watermains, generally outside the development area, identified by a Class Environmental Assessment, Servicing Study or by City staff will be included in the development charge calculation. Such works would be listed in the City’s most current Development Charges Background Study. Sanitary Sewer 11.1Sanitary sewer collectors less than 375 mm are deemed to be a local service and are a direct funding responsibility of the developer. 11.2For sanitary sewers 375mm or larger and internal to a development and which require upsizing to accommodate upstream flows, the amount of DC cost contribution for sanitary sewers within a development shall be calculated using 5 - 14 tendered unit prices and shall be the difference between the cost of the actual pipe diameter and the cost ofa 375 mm pipe diameter including a 10% engineering fee. 11.3Sanitary trunk sewers, 375mm or larger, external to the development will be included in the development charge calculation. These services will be identified through a Class Environmental assessment and will be noted as a project in the DC Background Study. 11.4Private pumping stations servicing a small localized area (potentially one or more developments) are a local service and a direct developer responsibility under s.59 of the DCA. 11.5Pumping stations that are municipally owned and service more than one property shall be included in the DC calculations. Pumping stations are those required by the City, and is identified through the Class Environmental Assessment process. The pumping stations will be included in the City’s most current Development Charges Background Study. 11.6Incremental capacity upgrades for municipal pumping stations are to be included in the DC calculation and identified in the City’s most current Development ChargesBackground Study. Retaining Walls 12.1Retaining walls are not DC eligible and once constructed becomes the developers’ responsibility for maintenance and upkeep for the life of said retaining wall. 5 - 15 APPENDIX H DEVELOPMENT CHARGES BYLAW 5 - 16 BY-LAW NUMBER 2019- OF THE CORPORATION OF THE CITY OF KITCHENER Being a by-law to establish development charges for the City of Kitchener and to repeal By-law 2014-068 WHEREAS the City will experience growth through development of land which will increase the need for services to be provided by the City; AND WHEREAS section 2(1) of the Development Charges Act, 1997, S.O. 1997, c. 27 (the Act") authorizes the council of a municipality to pass By-laws for the imposition of development charges against land to pay for increased capital costs required because of increased needs for services arising from development of the area to which the By-law applies; AND WHEREAS Council wishes to ensure that the capital cost of meeting growth related demands for services is met but does not place a financial burden upon the City's existing taxpayers, and also that new taxpayers bear no more than the net capital cost attributable to providing the current level of services; AND WHEREAS the municipal council has direction that a Development Charges Background Study be undertaken, has reviewed and considered the Development Charges Background Study and a draft Development Charges By-law, and has performed the actions required by sections 10 and 12 of the Act and by O. Reg. 82/98 (“the Regulation) and has considered all of the representations made at the public meeting, NOW THEREFORE the municipal Council of The Corporation of the City of Kitchener enacts as follows: SECTION 1 INTERPRETATION Definitions 1.1In this by-law: "accessory use" means a use, including a building, which is commonly incidental, subordinate and exclusively devoted to the main use or main building situate on the same lot; "agricultural use" means the use of land and buildings for apiaries, fish farming, animal husbandry or the cultivation of trees, shrubs, flowers, grains, sod, fruits, vegetables and other crops or ornamental plants ("agricultural products") but shall not include any building or structure where 5 - 17 agricultural products are displayed for sale in more than twenty-five per cent of the gross floor area of such building or structure; "capital cost" has the same meaning it has pursuant to the Act, "development" means any activity or proposed activity in respect of land that requires one or more of the actions referred to in Section 2.3, and includes redevelopment; "development charge" means a development charge imposed pursuant to this By-law. "duplex" means a dwelling or residential building divided predominantly horizontally into two dwelling units; "dwelling unit" means a room or suite of rooms which: (a)is located in a building (including a non-residential building), (b)isoccupied or designed to be occupied by a household as a single, independent and separate housekeeping establishment, (c)contains both a kitchen and bathroom for the exclusive common use of the occupants thereof, and (d)has a private entrance leading directly from outside the building or from a common hallway or stairway inside the building; “excess capacity" means uncommitted excess capacity but excludes uncommitted excess capacity if, either before or at the time the excess capacity was created, the Council of the City expressed a clear intention that the excess capacity would be paid for by development charges or other similar charges; "existing industrial building" means an industrial building or buildings that existed on July 1, 2019 or the first building or buildings constructed and occupied on a vacant site pursuant to a site plan approval under section 41 of the Planning Act subsequent to July 1, 2019 for which full development charges were paid. "floorarea" means the area of floors of a building or structure measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls, and in the case of a dwelling unit includes only those floor areas above grade. This shall not include any area which is specifically designed for parking and is not being used for the repair or sale of vehicles; "grade" means the average level of finished ground adjoining a dwelling unit at all exterior walls; "gross floor area" means the total floor area of a building or structure; "growth-related net capital cost" means the portion of the net capital cost of services that is reasonably attributable to the need for such net capital cost that results or will result from the 5 - 18 anticipated development in all or a defined part of the City less the City's excess capacity and the extent to which an increase in service to meet the increased need will benefit existing development within the City; "home business" means a vocational use, as permitted by the applicable City zoning by-law, conducted in a dwelling unit which is secondary to the use of the dwelling unit as a private residence; “hospital” means a hospital as defined in the Public Hospitals Act, R.S.O. 1990, c. P.40; "household" means one or more persons living together as a single non-profit, housekeeping unit, sharing all areas of the dwelling unit and may, in addition, be designed to accommodate lodging units containing less than four residents; “industrial building” means a building used in connection with: (a) manufacturing, producing, processing, storing (but only where the storage is ancillary to related manufacturing, production, processing or distribution) or distributing something; (b) research or development in connection with manufacturing, producing 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; or, (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. "local board" means a municipal service board, transportation commission, public library board, board of health, police services board, planning board or any other board, commission, committee, body or local authority established or exercising any power under any Act with respect to any of the affairs or purposes of the City or the Regional Municipality of Waterloo (the "Region") or any part or parts thereof, excluding a school board, a conservation authority and any other board excluded under any general or special Act; "local services" means services related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as acondition of approval under section 51 of the Planning Act, or as a condition of approval under section 53 of the Planning Act; "lodging house" means a dwelling or residential building containing one or more lodging units designed to accommodate four or more residents. The residents may share common areas of the dwelling other than the lodging units, and do not appear to function as a household. This shall not include a group home, nursing home, hospital or any residential care facility licensed, approved, or supervised under any general or specific Act, or a hotel or motel. This shall include but not be limited to student residences, convents, unlicensed nursing homes and tourist homes; “lodging unit" means a room or set of rooms located in a lodginghouse designed or intended to be used for sleeping and living accommodation, which: 5 - 19 (a)is designed for the exclusive use of the resident or residents of the unit; (b)is not normally accessible to persons other than the resident or residents of the unit; and (c) may contain either a bathroom or kitchen but does not contain both for the exclusive use of the resident or residents of the unit, but does not include a unit or room in a hotel, motel, nursing or retirement home, group home, or hostel designed for human habitation; “multiple dwelling" means a dwelling or residential building containing three or more dwelling units, but shall not include townhouse or row dwellings; "net capital cost" means the capital cost less capital grants, subsidies andother contributions made to the City or that the Council of the City anticipates will be made but only to the extent that the grant, subsidy or other contribution is clearly intended by the person making it to benefit new development and includes conveyances or payments under sections 42, 51.1 and 53 of the Planning Act, in respect of the capital cost; "non-residential use" means the use of land, building or structures for a use other than residential use, including all commercial, industrial and institutional uses and excluding agricultural uses; "owner" means the owner of land or a person who has made application for an approval for the development or redevelopment of land upon which a development charge is imposed; "residential use" means the use of land, buildings or structures for one or more single detached, semi-detached, townhouse, row dwelling, multiple dwelling or duplex dwelling units and lodging houses; "semi-detacheddwelling" means a dwelling or residential building divided predominantly vertically into two dwelling units; "services" means services designated in Schedule "A" attached to this by-law; "single-detached dwelling" means a dwelling or residential building consisting of one dwelling unit and not attached to another residential structure, and shall include a mobile home located on a foundation; "site" means a parcel of land which can be legally conveyed pursuant to section 50 of the Planning Act and includes a development having two or more lots consolidated under one identical ownership; "townhouse or row dwelling" means a dwelling or residential building divided predominantly vertically into three or more attached dwelling units, each of which has a separate entrance from the outside; and 5 - 20 Interpretation 1.2This By-law shall be construedin accordance with the Act and the regulations thereunder, and the definitions in Section 1.1 shall be read with any necessary modifications as may be required in order to comply with the Act and the Regulation, or any successor legislation, as amended from time to time. Subject to the foregoing, undefined words in this By-law for which definitions exist within the applicable Zoning By-law of the City of Kitchener shall be interpreted and applied in accordance with the said Zoning By-law. The intentionof this By-law is that it shall be interpreted and applied in a manner so that there is consistency between the Act, any regulations passed thereunder, and the applicable Zoning By-law of the City. Declaration 1.3It is hereby declared by the Council that all development of land within the City will increase the need for services. Statutory Contents of By-law 1.4For purpose of complying with section 6 of the Act, rules have been developed as follows: RuleLocation Reference The rules for determining if a development charge is Section 2.3 and Schedules payable in any particular case and for determining the “B1” and “B2” amount of the charge The rules for determining the exemptions to development Section 2.2 charges The rules for determining the indexing of development Sections 7.2 and 7.3 charges The rules respecting the redevelopment of landSection 6.8 and 6.9 The area of the municipality to which this By-law RelatesSection 2.1 SECTION 2 APPLICATION AND EXEMPTIONS Geographic Application 2.1Subject to section 2.2, this by-law applies to all lands within the City of Kitchener and any lands outside the City of Kitchener to which services are provided by the City, whether or not the land or use thereof is exempt fromtaxation under section 3 of the Assessment Act, R.S.O. 1990, c.A.31. 5 - 21 Exceptions 2.2This by-law does not apply to land owned by and used for the purposes of: (a)a board of education as defined by subsection 1(1) of the Education Act, R.S.O. 1990, c.E.2; (b)the City of Kitchener or any local board thereof; (c)the Region or any local board thereof; (d)any area municipality within the Region; and (e)the Crown in right of Ontario or the Crown in right of Canada. Imposition of Development Charges 2.3Subject to sections 2.4 to 2.9 inclusive, development charges shall apply on land to be developed for residential and non-residential use, where the development or redevelopment requires one or more of the following approvals: (a)the passing of a zoning by-law or of an amendment thereto under section 34 of the Planning Act, R.S.O. 1990, c. P. 13; (b)the approval of a minor variance under section 45 of the Planning Act, R.S.O. 1990, c. P. 13; (c) a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act, R.S.O. 1990, c. P. 13 applies; (d)the approval of a plan of subdivision under section 51 of the Planning Act, R.S.O. 1990, c. P. 13; (e)a consent under section 53 of the Planning Act, R.S.O. 1990, c. P. 13; (f)the approval of a description under section 9 of the Condominium Act, S.O. 1998, c. 19; or (g)the issuing of a permit under the Building Code Act, 1992, S.O. 1992, c.23 (the "Building Code"), in relation to a building or structure. 2.4Section 2.3 shall not apply in respect of, 5 - 22 (a)local services; or (b)localconnections to water mains, sanitary sewers and storm drainage facilities installed at the expense of the owner including amounts imposed under a by-law passed under section 326 of the Municipal Act, 2001, c. 25, as amended. 2.5Where two or more of the actions described in section 2.3 are required before the land to which a development charge applies can be developed or redeveloped, only one development charge shall be imposed, calculated and collected in accordance with the provisions of this by-law. 2.6Despite section 2.5, if two or more of the actions described in section 2.3 occur at different times and if the subsequent action or actions has the effect of increasing the need for services as designated in this by-law, additional development charges shall be imposed, calculated and collected in accordance with the provisions of this by-law. 2.7Section 2.3 shall not apply to: (a) a temporary use permitted under a zoning by-law enacted under sections 39 or 39.1of the Planning Act, R.S.O. 1990, c.P.13; (b)an accessory use to residential uses; (c)a home business; (d)an agricultural use; (e)temporary erection of a building without foundation for a period not exceeding six consecutive months and not more than six months in any one calendar year on a site for which development charges or lot levies have previously been paid; and (f)the enlargement of an existing dwelling unit or the creation of up to two additional dwelling units as prescribed by Ontario Regulation 82/98 and set out in Schedule "D" attached hereto, and as such Regulation may be amended from time to time, provided that: (i)the number of dwelling units created in the renovated or enlarged residential building does not exceed the applicable maximum number of additional dwelling units set out in Schedule "D" attached hereto, and the total gross floor area of the additional dwelling units does not exceed the applicable maximum gross floor area provisions set out in Schedule "D" attached hereto; and (ii)no more than one or two additional dwelling units in accordance with 5 - 23 this subsection may ever be created without the imposition of development charges. 2.8Development charges as set out in Sections 3, 4, and 5 of this by-law shall apply to all lands that are developed or redeveloped for residential and non-residential use in accordance with this by-law, but only insofar as, (a)the growth-related net capital costs of services are attributable to residential or non- residential use, as the case may be; and, (b)the growth-related net capital cost of each service is attributable to the anticipated development and at standards no higher than the average level of each such service provided by the City over the ten year period immediately preceding the preparation of the Study. 2.9The rates set out in Schedules "B1" and “B2” attached hereto shall be determined so as to reflect a ten per cent reduction to the growth-related net capital costs, except that there shall be no percentage reduction for the following growth-related net capital costs: (a)water supply services, including distribution and treatment services; (b)waste water services, including sewers and treatment services; (c)storm water drainage and control services; (d)services related to a highway as defined in section 26 of the Municipal Act, 2001, c. 25 as amended; and (e)fire protection services. SECTION 3 RESIDENTIAL DEVELOPMENT CHARGES 3.1Development charges against land to be developed or redeveloped for residential use shall be based upon the services to be provided by the City which are designated in Schedule "A" attached hereto. 3.2Subject to the provisions of this by-law, development charges are hereby imposed against land to be developed or redeveloped for residential use located within the Suburban Area the boundary of which is shown on Schedule “C2” attached hereto and shall be calculated and collected at the rates set out in Schedules "B1" and “B2” attached hereto. 3.3Subject to the provisions of this by-law, development charges are hereby imposed against 5 - 24 land to be developed or redeveloped for residential use located within the Central Neighbourhoods the boundary of which is shown on Schedule “C1” attached hereto and shall be calculated and collected at the rates set out in Schedules “B1” and “B2” attached hereto. 3.4Subject to the provisions of this by-law, development charges against landto be developed or redeveloped for mixed residential use shall be the aggregate of the amount applicable for each dwelling unit according to its type as set forth in Schedules "B1" and “B2” attached hereto. SECTION 4 NON-RESIDENTIAL DEVELOPMENT CHARGES 4.1Development charges against land to be developed or redeveloped for non-residential use shall be based upon the services to be provided by the City which are designated in Schedule "A" attached hereto. 4.2Subject to the provisions of this by-law, development charges are hereby imposed against land to be developed or redeveloped for non-residential use located in the Suburban Area the boundary of which is shown on Schedule “C2” attached hereto and shall be calculated and collected at the rateset out in Schedules "B1" and “B2” attached hereto . 4.3Subject to the provisions of this by-law, development charges are hereby imposed against land to be developed or redeveloped for non-residential use in the Central Neighbourhoods the boundary of which is shown on Schedule “C1”attached hereto and shall be calculated and collected at the rate set out in Schedules “B1” and “B2” attached hereto. 4.4Despite anything in this by-law, there shall be an exemption from the payment of development chargesfor one or more enlargements of an existing industrial building on a site in accordance with the Act and the Regulation. 4.5Despite anything in this by-law, there shall be an exemption from the payment of development charges in respect of any enlargement of a hospital. SECTION 5 MIXED USE 5.1Subject to the provisions of this by-law, development charges against land to be developed or redeveloped for mixed residential and non-residential use shall be the aggregate of the amount applicable to the residential component and the amount applicable to the gross floor area of the non-residential component. 5 - 25 SECTION 6 ADMINISTRATION Payment 6.1All development charges required to be paidto the City pursuant to this by-law shall be paid by a method acceptable to the Treasurer of the City. Calculations 6.2Subject to the provisions of this Section, development charges shall be calculated and payable in full on the date that a building permit is issued in relation to a building or structure on land to which a development charge applies. 6.3Where development charges apply to land where a building permit is required, no building permit shall be issued until the development charge is paid in full. 6.4 Despite section 6.2, the City may require that development charges applicable with respect to the services described in subsections 2.9 (a) to (d) inclusive of this by-law ("Engineering Services"), be calculated as set forth in Schedule "B1" hereto and payable immediately upon the execution of a subdivision agreement under section 51 of the Planning Act, R.S.O. 1990, c. P. 13. or a consent agreement under section 53 of the Planning Act, R.S.O. 1990, c. P. 13., with respect to the lands to which such agreement, as the case may be, relates. Credits 6.5The City may by agreement permit the owner of land to which development charges apply to provide services for development or redevelopment of that land in lieu of the payment of all or any portion of a development charge, including services additional to or of a greater size or capacity than is required under this by-law ("services in lieu"). 6.6Upon proof of the installation or construction of services in lieu to the satisfaction of the City's Engineer, a credit, without interest, shall be applied against development charges payable for an amount equal to the reasonable cost to the owner of providing services in lieu, as determined by the City's Engineer, not to exceed the total amount of thedevelopment charges otherwise payable. 6.7Any unused credit may be applied, upon proof satisfactory to the City's Chief Building Official, to any subsequent development charge payable with respect to the same land as referred to in section 6.5, or transferred and applied to any development charge payable with respect to other land owned by the same owner to be developed or redeveloped with the consent of the City on terms satisfactory to the City Solicitor. 5 - 26 Redevelopment Allowances 6.8Subject to theprovisions of this section, where any redevelopment or re-use of land replaces or changes a former or existing development and, in the case of demolition upon proof of issuance of a demolition permit for the land being provided, the development charge applicable to the redevelopment or re-use shall be reduced by a redevelopment allowance, without interest, not to exceed an amount equal to the total of: (a)the number and types of legally established residential units in the former or existing development; and (b)the legally established non-residential gross floor area of the former or existing development, asdetermined by the Chief Building Official, or his or her designate, at the rates applicable to such units or gross floor area at the time the first building permit for the re-development is issued. 6.9No redevelopment allowance shall be made in excess of the development charge payable for a redevelopment; however, the redevelopment allowance may be carried forward and applied, upon proof satisfactory to the City's Chief Building Official, to any subsequent development charge payable with respect to the same land as referred to in section 6.8. 6.10The availability of redevelopment allowances is time-limited, and such availability shall expire in accordance with the following: (a)Where a demolition permit was issued after the passing of this By-law: (i)For the redevelopment of former residential lands, redevelopment allowances shall not be available later than the fifth anniversary of the date on which a demolition permit was issued in respect of the applicable buildings or structures on the lands;and, (ii)For redevelopment of former non-residential lands, redevelopment allowances shall not be available later than the tenth anniversary of the date on which a demolition permit was issued in respect of the applicable buildings; or structures on the lands; and, (b)Where a demolition permit was issued prior to the passing of this By-law: . (i)For the redevelopment of former residential lands, redevelopment allowances shall not be available later than the tenth anniversary of the date on which ademolition permit was issued in respect of the applicable buildings or structures on the lands; and, (ii)For redevelopment of former non-residential lands, redevelopment 5 - 27 allowances shall not be available later than the twentieth anniversary of the date on which a demolition permit was issued in respect of the applicable buildings. (c)For purposes of (a) and (b) above, mixed-use lands which were used for a combination of residential and non-residential purposes shall be treated as non- residential lands. 6.11Despite section 6.10, where the applicable timeframes in section 6.10 have not expired, a record of site condition is required for the development of lands, and the process to obtain the record of site condition is underway and is being pursued with all due dispatch, the Chief Building Official may grant one or more extensions to the expiration dates in section 6.10 to alleviate the delay occasioned by the necessity of obtaining a record of site condition, provided that no such extension (or the cumulative effect of multiple extensions) shall result in a total extension exceeding ten years in relation to any site. Reserve Funds 6.12Monies received from payment of development charges shall be maintainedin a separate reserve fund or funds, and shall be used only to meet the growth-related net capital costs for which the development charge was imposed under this by-law. 6.13 Income received from investment of the development charge reserve fund or funds shall be credited to the development charge reserve fund or funds in relation to which the investment income applies. 6.14Where any development charge, or part thereof, remains unpaid after the due date, the amount unpaid shall be added to the tax rolland shall be collected as taxes. 6.15Where any unpaid development charges are collected as taxes under section 6.14, the monies so collected shall be credited to the development charge reserve fund or funds referred to in section 6.12. SECTION 7 GENERAL PROVISIONS 7.1This by-law shall be administered by the City's Chief Building Official and the City’s Treasurer, and their respective designates. 5 - 28 Annual Adjustment 7.2The development charges imposed pursuant to this By-law shall be adjustedannually, without amendment to this by-law, as of the 1st day of December in each year, in accordance with the index prescribed by Ontario Regulation 82/98 and as such Regulation may be amended from time to time. 7.3The minimum interest rate that the City shall pay under subsection 18(3) and 25(2) of the Development Charges Act, 1997, c.27 in relation to a development charges by-law shall be the Bank of Canada interest rate on the day the by-law comes into force and thereafter as such rate is adjusted on the first business day of every January, April, July and October of each year. SECTION 8 REPEAL – ENACTMENT Term 8.1This by-law shall come into force and effect on July 1, 2019. 8.2This by-law shall continue in force and effect for a term not to exceed five years from the date of its coming in to force and effect unless it is repealed or replaced at an earlier date by a subsequent by-law. 8.3Nothing in this by-law shall be construed so as to commit or require the City or its Council to authorize or proceed with any specific capital project at any specific time. 8.4Each and every provision of this by-law is severable and, if any provision or provisions of this by-law should, for any reason, be declared invalid by any court, it is the intention of Council that each and every of the then remaining provisions of this by-law shall remain in full force and effect. 8.5The Clerk is hereby directed to make this by-law a part of The City of Kitchener Municipal Code as Chapter 315 by adding it to the Concordance and arranging and numbering it so as to fit within the scheme of the Code. 8.6By-law No. 2014-068 and the contents of Chapter 315 of The City of Kitchener Municipal Code, as amended, is hereby repealed effective at midnight on June 30, 2019. 5 - 29 PASSED at the Council Chambers in the City of Kitchener this 24th day of June, A.D. 2019. ____________________________________ Mayor ____________________________________ Clerk 5 - 30 Schedule ‘A’ to Development Charge By-law Services - Designations SERVICES DESIGNATION NON-DISCOUNTED Residential/Non-residential 1.Sanitary Servicing 2.Roads and Related 3.Watermains 4.Engineering Studies 5.Intensification Allowance 6.Storm/Watercourse Residential/Non-residential 7.Public Works 8.Fire Protection DISCOUNTED Residential 9.Indoor Recreation 10.Library 11.Outdoor Recreation 12.Cemeteries Residential/Non-residential 13.Parking 14.Growth-Related Studies 5 - 31 SCHEDULE ‘B1’ DEVELOPMENT CHARGE RATES NON-DISCOUNTED SERVICES Residential Charge By Unit Type Non- Singles &Multiples & Lodging Residential Townhouses SemisDuplexesHousesCharge per m2 $7,975$5,600$4,032$2,266$48.36 Total Suburban (i) Total Suburban (i) Partial Services - $5,693$3,997$2,878$1,618$34.44 No Sanitary Sewer Total Suburban (i) Partial Services - $5,524$3,879$2,793$1,570$33.41 No Sanitary Sewer or Water Services Total Central Neighbourhood (ii)$1,794$1,259$906$509$11.51 5 - 32 SCHEDULE ‘B2’ DEVELOPMENT CHARGE RATES DISCOUNTED SERVICES Residential Charge By Unit Type Non- Singles &Multiples & Lodging Residential Townhouses SemisDuplexesHousesCharge per m2 $10,755$7,552$5,436$3,056$9.27 Total Suburban (i) Total Suburban (i) Partial Services - $10,755$7,552$5,436$3,056$9.27 No Sanitary Sewer Total Suburban (i) Partial Services - $10,755$7,552$5,436$3,056$9.27 No Sanitary Sewer or Water Services Total Central Neighbourhood (ii)$10,755$7,552$5,436$3,056$9.27 5 - 33 5 - 34 5 - 35 DEVELOPMENT CHARGES Schedule ‘D’ – Classes of Development Name of Class ofDescription of Class of Maximum number of Restrictions Residential Buildingsadditional dwelling units Residential Building Single detached Residential buildings, TwoThe total gross floor dwellingseach of which contains area of the a single dwelling unit, additional dwelling thatare not attached to unit or units must be other buildingsless than or equal to the gross floor area of the dwelling unit already in the building Semi-detached dwellings Residential buildings, OneThe gross floor area or Row dwellings each of which contains of the additional a single dwelling unit, dwelling unit must that have one or two be less than or vertical walls but no equal to the gross other parts, attached to floor area of the other buildings dwelling unit already in the building. Other residential A residential building OneThe gross floor area buildings not in another class of of the additional residential building dwelling unit must described in this table be less than or equal to the gross floor area of the smallest dwelling unit already in the building. 5 - 36 IFNTPO 5 - 37 IFNTPO 5 - 38 IFNTPO 5 - 39 IFNTPO 5 - 40 IFNTPO 5 - 41