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.
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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
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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
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to be passed by Council on June 24).
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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
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24for approval.
The main purpose of this report is to highlight changes from the draft information posted on April
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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.
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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
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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
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Tuesday June 4 – The Bill will be reported to the Housefor 3reading and could be
called to vote that day
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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
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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
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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.
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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,
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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
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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
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“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.
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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.
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APPENDIX G
LOCAL SERVICE GUIDELINES
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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
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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.
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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).
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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.
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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
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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.
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APPENDIX H
DEVELOPMENT CHARGES BYLAW
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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
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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
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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:
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(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
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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.
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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,
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(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
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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
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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.
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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.
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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
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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.
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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.
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PASSED at the Council Chambers in the City of Kitchener this 24th day of June, A.D. 2019.
____________________________________
Mayor
____________________________________
Clerk
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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
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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
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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
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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.
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IFNTPO
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IFNTPO
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IFNTPO
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IFNTPO
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IFNTPO
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