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HomeMy WebLinkAboutINS-2022-373 - Park Strategic Plan and Parkland Dedication UpdateStaff Report Infrastructure Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: August 22, 2022 SUBMITTED BY: Niall Lobley, Director, Parks & Cemeteries 519 741 2600 ext. 4518 PREPARED BY: Niall Lobley, Director, Parks & Cemeteries 519 741 2600 ext. 4518 Mark Parris, Landscape Architect, 519-741-2600 x4397 WARD(S) INVOLVED: All DATE OF REPORT: August 1, 2022 REPORT NO.: INS -2022-373 SUBJECT: Places & Spaces — Park Strategic Plan and Parkland Dedication Update RECOMMENDATION: That Spaces be approved and recognized as the City's Parks Plan pursuant to the requirements of the Planning Act, as outlined Infrastructure Services Department staff report INS -2022-224; and, That the updated Park Dedication By -Law and Park Dedication Policy be approved, as amended, in the form shown in "Proposed Park Dedication By -Law (2022)" and "Proposed Park Dedication Policy (2022)", attached to Report INS -2022-373 as Appendix 2 and 3 attached, and That staff be directed to remove the downtown exemptions for parkland dedication requirements such that all development within the downtown will be subject to parkland dedication requirements; and, That no parkland dedication be required for all Supportive Housing Initiatives being defined as Non Profit Housing (O.Reg 454/19, s.3(1)), and Affordable Rental Housing (as per Canada Mortgage and Housing Corporation (CMHC));and, That staff be directed to work with the school boards to explore shared use agreements that provide for a common understanding of where public use can be supported on existing school board lands, and where school board use of public parks may occur; and, That staff be directed to continue to work with agencies such as Kitchener Wilmot Hydro and Hydro One in managing areas of transmission corridors to support and link a planned park and open space system, and continue to work with partners such as Chicopee Ski Hill and the Grand River Conservation Authority to enhance the City's parks and open space system; and, *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 15 of 917 That staff be directed to identify specific properties of interest for acquisition or repurpose (in the event lands are identified that are in public ownership) to address identified Critical Needs Areas and bring these forward when opportunities exist to Council; and, That staff be directed to incorporate relevant directions from Spaces into the City's Official Plan through its next review; and, That staff be directed to consider, prior to the sale of any City -owned property, that such property be considered for use as parkland in any community having a high or critical need for parkland acquisition, in consideration with affordable housing and economic development; and, That staff be directed to investigate and bring a report to Council before the 2024 budget cycle on other ways in which parkland acquisition might be advanced and funded, including exploring tools such as a special tax program that would support the Parkland Reserve fund to acquire parkland above and beyond the tools proposed in Spaces and the Parkland Dedication Bylaw. REPORT HIGHLIGHTS: • The key finding of this report is to present a recommended Spaces report and a revised Parkland Dedication bylaw and policy. • The purpose of this report is to provide additional information to supplement INS -2022-224 • Key changes have been incorporated into the bylaw/policy that reflect feedback received at the June Committee/Council meetings including: o Increased the transition period from 1 year to 2 years for development in process o Providing a credit of up to 100% (increased from 25%) for Privately Owned Public Spaces (POPS) o Full exemption on parkland dedication on all rental and privately owned developments that are developed to be affordable per legislation and/or CMHC • The financial implications of the recommendations are consistent with INS -2022-224. Should Council consider additional measures to reduce impacts on developers these financial impacts are outlined in the report. • Community engagement included direct stakeholder and legislatively required consultation, public surveys, statistically valid surveys, public information centres and a comprehensive promotion and outreach strategy including presence in community centres and city facilities, mobile advertisements, and social media promotion. • This report supports A Caring Community by completing an Open Space Strategy. BACKGROUND: Parks are critical public infrastructure supporting communities. Reports from around the world, across North America and Canada, confirm the vital contribution to community from direct recreational benefits, to social cohesion values, to indirect impacts such as decreased temperatures, increased storm water mitigation and increased canopy. The City of Kitchener has developed an innovative and leading edge `Parks Plan' (Spaces) which is equity focussed. The outcomes of Spaces indicate a clear inequity in parkland provision across Kitchener, with low income communities that live in highly dense communities having the lowest Page 16 of 917 access to parkland and the benefits it brings. As Kitchener becomes a more densely populated city, this provision will decrease. Through extensive community engagement, staff repeatedly hear that community is increasingly concerned at the lack of parks and open spaces that are associated with intensive development and the resultant negative impacts on community building, social cohesion and lack of environmental benefits. The Park Dedication Bylaw is used nearly exclusively by the City to achieve parks and open space. The Bylaw requires to be updated as directed by the Province under changes to the Planning Act implemented through COVID-19 Economic Recovery Act. The By -Law directs parks in two ways: • Land dedication — achieved in most greenfield developments, but, in infill and redevelopment sites, not achieved due to small development sites making it infeasible, in 98% of infill developments • Cash In Lieu of parkland — by default, where land cannot be achieved, cash is collected to enable the City to secure land to meet new community needs As development shifts from greenfield subdivision to increasing dense forms of development on infill and redevelopment sites, the City is becoming reliant on cash in lieu to secure new parks for new communities. The City has not collected sufficient cash in lieu to offset the lack of parks able to be provided through infill. This is caused by dated, fixed land values and a downtown exemption which has seen almost all of its' high density developments not pay cash in lieu (or dedicate land). To maintain a city-wide provision of 10q m per person, and to achieve community objective rates in dense communities, the city must collect, and then spend parkland dedication cash in lieu on new parks. Spaces suggests that approximately 18 new urban neighbourhood parks are needed over the next 20 years to meet the parkland provision needs. Any Park Dedication that is not collected (as land or cash in lieu of land), delays meeting these objectives and will leave community without adequate park space. As land becomes increasing developed, opportunities to create new park space will become increasing difficult. Some municipalities are indicating that based on provincial growth and intensification forecasts, it may be impossible to establish new urban parks within as little as 20 years; in short, there is a real risk that if municipalities do not act quickly, new parkland will become impossible to establish, leaving urban communities with decreasing amounts of parkland and eliminating the environmental values that these spaces bring, making urban living increasingly challenging and increasing social inequities. REPORT: At the June 22, 2022, Council meeting, Council deferred INS -2022-224 to the August 22, 2022, Council meeting and requested additional information related to the following questions: • How does Kitchener compare to other municipalities? • Can the Transitional period be extended? • Can Parkland Fees be collected at the Occupancy stage of development? • Could the bylaw be implemented over a three to five year timeline? • Could the implementation of a new bylaw be deferred? • Could a Tax Levy be implemented to offset Parkland Dedication fees? Page 17 of 917 How does Kitchener compare to other municipalities? The recommendations that staff have already made reflect a highly conservative approach to parkland dedication, that reflect the need to balance parkland provision and affordability for developers. These have been further enhanced through committee and council discussions and Kitchener has embedded a number of recommendations that no other municipality has done: • A generous 2 -year transitional window to the new bylaw allowing development in process to not be adversely impacted by increased development fee related costs no municipality is offering a transition to date) • Removing parkland dedication from commercial and industrial development to provide support for the development of live -work -play communities that are mixed use in nature (no municipality is waiving these fees) • Providing a full exemption from parkland on all rental and privately owned developments that are developed to be affordable under the definitions in legislation and/or CMHC (no municipality is offering this discount) • Providing a credit of up to 100% (increased from 25%) for Privately Owned Public Spaces that are often associated with intensive redevelopment proposals (only one other municipality is providing a POP credit in its bylaw to date). • Providing for developers to meet parkland requirements by dedicating off site lands (this is a tool that other municipalities are exploring, but it is not common) Staff also compared cap rates with other municipal park dedication by-laws: • Many municipalities provide a cap on parkland dedication rates (see Appendix 1), and this approach is supported by the development industry across Ontario as it helps provide clarity, cost certainty and predictability to developers. The cap rate of $11,862 that staff are recommending reflects a discount to dense forms of development of in excess of 85%. Kitchener's proposed cap rate is amongst the lowest, and, even when combined with total development charges, Kitchener remains one of the most affordable communities in which to develop. The figure below provides a municipal comparison of park dedication fees on high density development. Page 18 of 917 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 $1,550 Muncipal Comparison of Park Dedication on High Density Development (total fees per unit) IM q1 $45,000 $27,994 $33,046 $23,600 $8,838 $10,000 $11,862 $14,414 $15,467 $5,000 a� a� r e�e� `aa �1 01* ra'c ■ Park Dedication (per unit) Combined Muncipal and Regional Development Charges (per unit) # Land based cap (e.g. 20% of land) " PD By -Law updated prior to 2019 no reductions or caps * Appraisal based, assumed similar value to Kitchener high density values Note: For the purposes of calculating Park Dedication and Development Charges, a hypothetical development of 5.0 FSR, on a 0.3ha property and average unit size of 550 sq.ft. is used, and assumed within development cores of each municipality. Impact The impact of these discounts and reductions of parkland, in effect subsidizing intensive development forms, and reflecting on historical deficiencies in Critical Needs Areas has resulted in a realistically achievable community objective rate of just 4sq m per person. Kitchener's city-wide average provision target is amongst the lowest in Ontario, and the Community Objective Rates reflect the lowest targets for parkland provision of any municipality identified to date. Page 19 of 917 Parkland Targets (ha per 1000 people) Guelph Ottawa Brampton Richmond Hill Mississauga Waterloo Kitchener City Wide Ave Hamilton Kitchener Low q 0.5 1.5 2 2.5 Data: Canadian City Parks Report 2022 In short, Kitchener's proposed bylaw is amongst the most affordable of any urban municipality in Ontario whether compared against either proposed/passed new bylaws, or, compared against urban municipal bylaws dating to 2018 and consequently has the lowest target rates of local parkland provision amongst urban municipalities. Can the Transitional period be extended? Staff initially proposed a transition of 12 months. This has been extended to 24 months based on discussions at Committee and Council and in reflection of the changing financial climate that may impact development timelines. Can Parkland Fees be collected at the Occupancy stage of development? There is no legislated mechanism, nor provincial precedent, to defer park dedication fees beyond the Building Permit stage. Building Permit is considered "applicable law" pursuant to the Building Code Act and can lawfully be withheld until all conditions are fulfilled, inclusive of park dedication. Park dedication deferrals will remain an option for multi -stage developments, remaining as a requirement prior to Building Permit. Could the bylaw be implemented over a three to five year timeline? Staff do not recommend this approach; any phasing reduces the amount of cash able to be collected and parkland achieve. Phasing will make achieving the parkland provisions, particularly the community objective rates, within Spaces, increasing less likely over a 20 -year planning horizon. Page 20 of 917 The impacts of various phasing and transitional arrangements are reflected in the following impact graphics: Park Dedication Phasing Scenarios Transition I Phasing I '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 None done 2 Years None 2 Years 2 Years 2 Years 3 Years 2 Years 4 Years 2 Years 5 Years 7591r 1999E 5@% 7--/- W40% 59640% (,O% 80,6 100°6 3 33% 50% 57% 85% 100% Legend Percent of updated land values paid in PI) 0 Fees collected Gap in establishing fees to actual collection Property acquisition processes - Potential first acquisition and development period Park opening Park Dedication Phasing Impacts Transition None 2 Years 2 Years 2 Years 2 Years 2 Years Phasing None None 2 Years 3 Years 4 Years 5 Years PI) Fees Colilected {20 Years) 0 414 4A A $392M $270M $255M $240M $225M $210M Parks Created Critical Needs [13) ---- -----, ------------ ■i■■ ■■■ ; ■■■■; ■WN ■■ r i i r r i i 19 14 13 12 11 10 Local Parks Local Parks Local Parks Local Parks Local Parks Local Parks Page 21 of 917 Could the implementation of a new bylaw be deferred? This is not feasible. Under provincial changes, unless a new bylaw is in effect as of September 2022, the existing bylaw no longer applies. This would mean that the City would be unable to collect parkland on any development at the `Alternative Rate' and would only be able to collect a negligible amount of cash in lieu. Could a Tax Levy be implemented to offset Parkland Dedication fees? The principle for the existing parkland dedication approach and embedded in the new bylaw is that growth pays for growth. The City has established new parks in new and growing communities historically using fees generated by development. New residential growth pays for and supports the infrastructure needed to create and establish a community. At times, new infrastructure has a dual benefit of supporting new and existing communities; the development at RBJ Schlegel Park being a recent example of where new development has caused the demand for a new facility, but it is not exclusively accessible by new residents. Given this context, staff do not recommend implementing a tax levy that would see existing residents offset the impacts of growth. However, Council directed at Committee that staff explore other tools to finance parkland acquisitions that would enable an expedited approach to addressing deficiencies, or seek to increase the provision of park space that communities, particularly in the MTSA and blended MTSA communities (where target levels are 4sq m per person and 8 sq m per person — below the City wide provision), which will be brought back through budget 2024. STRATEGIC PLAN ALIGNMENT: This report supports A Caring Community by completing an Open Space Strategy. FINANCIAL IMPLICATIONS: No additional financial implications beyond those articulated in INS -2022-224 COMMUNITY ENGAGEMENT: No additional community engagement has occurred beyond that outline in INS -2022-224 PREVIOUS REPORTS/AUTHORITIES: • CAO -13-036 — Downtown Financial Incentive Review — Final Recommendations • INS -2021-005 - Places & Spaces: A Parks & Open Space Strategy for Kitchener • DSD -2022-281 - Growth Related Funding Tools — Cumulative Impact Assessment • INS -2022-224 — Places & Spaces — Park Strategic Plan and Parkland Dedication Update • Planning Act APPROVED BY: Denise McGoldrick, General Manager Infrastructure Services ATTACHMENTS: Appendix 1: Cap Rates in Ontario Appendix 2: Revised Park Dedication By -Law Page 22 of 917 Appendix I Revised Parkland Dedication Policy Appendix 4: INS -2022-224 Page 23 of 917 Appendix 1 Cap Rates In Ontario Many municipalities provide a cap on parkland dedication rates, and indeed, this approach is one that is supported by the development industry across Ontario as it helps provide clarity, cost certainty and predictability to developers. A Development Industry study in 2019 (https://bildgta.ca/Assets/Final%20Report%20- %20BILD%20Parkland%20Study%20Feb%2022 Embargoed.pdf) showed that across urban municipalities in 2018, the average cap rate for dense forms of development (5 FSI and higher) was $10,797, and that between 2006 and 2018, these rates had increased, with some increases over this timeframe being as much as 525%. Cap rates in all instances are linked to property values, which had increased over this period (2006-2018), by an average of 300%. Kitchener is proposing a cap rate in 2022 of $11,862, comparable to the average urban cap rate many similar municipalities had in place in 2018. The cap rate of $11,862 that staff are recommending reflects a discount to dense forms of development of in excess of 85%; rather that collecting 1 ha of parkland per 500 units as per the Planning Act maximum, approximately 0.14ha of parkland per 1000 people will be generated by this. Park Provision Outcomes of Park Dedication Limits (sq.m. per person) 20.0 18.0 16.0 17.5 14.0 12.0 10.0 10.5 8.0 6.0 4.0 2.0 0.0 Provincial Provincial and maximum, when City of Kitchener taking land maximum, when taking cash -in - lieu of land 1.4 0.33 0.27 City of Kitchener City of Kitchener City of Kitchener City of Kitchener City of Kitchener average, and MTSA proposed current park maximum if by - recommended community capped rate dedication rates law is not target objective rate approved (5%) Showing Theoretical Parkland Dedication on a 298 unit tower at 5.0 FSR on a 0.3ha property, at an average unit size of 550 sq.ft. and property value at $43,243,000 per hectare Page 24 of 917 As directed by the province many municipalities are in the process of re -writing their bylaws at this time. It is difficult to get an accurate picture of this change as many bylaws are yet to be publicly shared or are still in draft format proceeding through Council cycles, however, staff is tracking changes that are being put in place and at this time it appears that Kitchener's proposed cap rate is amongst the lowest, and in some instances, by a substantial margin, of urban municipalities. Staff are aware of concerns relating to the significance of the increase in parkland dedication cash in lieu. This represents approximately a 300% increase over past rates. However, past rates are more than 12 years old and as noted by the Development Industry Group, many municipalities increased rates between 2006 and 2018 by more than 300% and as much as 500%. Many municipalities involved in that study have again adjusted rates by between 100% and 300% further since 2018. Land values have been dramatically increasing and Kitchener has not adjusted its rates; while this increase is significant, it is in response to the dramatic and significant increases in land values over the past 12+ years. Page 25 of 917 FACILITY Chapter 273 PARK DEDICATION Article 1 — PARK DEDICATION 273.1.1 — Definitions 273.1.2 — Interpretations 273.1.3 — Development or Redevelopment 273.1.4 — Calculating Park Land 273.1.5 — Conveyance of Park Land or Cash -in -Lieu of Park Land 273.1.6 — Transition Article 2 — REPEAL 273.2.1 — Administration and Appeal 273.2.2 — By-law - previous WHEREAS section 42, 51.1 and 53 of the Planning Act, R.S.O. 1990, c. P.13 as amended (the "Act") provides that as a condition of development, redevelopment or approval of a plan of a plan of subdivision, the Council of a municipality may require land in an amount not exceeding, in the case of land proposed for development or redevelopment for commercial or industrial purposes, two percent and for all other cases five percent of the land be conveyed to the City for park or other public recreational purposes; (42 (1), 51.1 (1)) AND WHEREAS the Act permits an alternative requirement with respect to land for residential purposes, of dedication at a rate of one hectare for each 300 dwelling units proposed subject to specific policies with respect thereto being set forth in the city's Official Plan; (42 (3), 51.1 (2), 53 (13)) AND WHEREAS the Act permits the Council of a municipality to require the payment of money to the value of land in lieu of the conveyance of land; (42 (6), 51.1 (3)) AND WHEREAS the Act permits a maximum rate of one hectare for each 500 dwelling units under the money in lieu of land calculation. (42 (6.0.1), 51.1 (3.1)) KITCHENER 273.1 JULY 2017 Page 26 of 917 PARK DEDICATION Article 1 PARK DEDICATION 273.1.1 - Definitions Adaptive Re -use — alteration or change of use of an existing building or structure to some other use or alteration or change of an existing building or structure to create new residential units. City — means the geographic area under the jurisdiction of the Corporation of the City of Kitchener, or the Corporation of the City of Kitchener, as the case may be. Consent — means the development approval for which the process is set out in section 53 of the Planning Act, and includes severances. Convey — to transfer an interest in land. Council — means the Council of the City. Development — the construction, erection or placing of one or more buildings or structures on lands, or an addition or alteration to a building or structure that has the effect of substantially increasing the size or usability thereof. Director of Parks and Cemeteries — means an officer or employee of the City who: i. Holds the position of the Director of Parks and Cemeteries or comparable position; ii. Holds a successor position at the City with responsibility for subject matters similar to those of the Director of Parks and Cemeteries; or, iii. Acts in place of either of the foregoing. Dwelling Unit — any property that is used or designed for use as a domestic establishment in which one or more persons may sleep and prepare and serve meals. Effective Date — the date set out in Article 2 Flood Plain Conservation Lands — land reserved for the use of maintaining regional flood capacity as outlined by the Grand River Conservation Authority. Gross Floor Area - the aggregate horizontal area measured from the exterior faces of the exterior walls of all storeys of a building (excluding any portion of a storey devoted exclusively to parking) within all buildings on a lot. Legalization of existing dwelling units — the City process in which a new building permit is obtained for existing residential units that are not legally recognized under Building Division records. Mixed use — a building with at least one dwelling unit and a non-residential use. Multi -Unit — a building containing two or more non-residential uses within two or more separated spaces for lease or occupancy. A multi -unit building shall be managed and operated as one unit with shared on-site parking. A multi -unit building shall not include a mixed use building. KITCHENER 273 JUNE 2022 Page 27 of 917 PARK DEDICATION Natural Heritage Conservation — the use of land, water, and/or structures for the protection, management, and conservation of the natural heritage system. Natural heritage conservation may include the preservation, maintenance, sustainable utilization, restoration, and/or enhancement of the natural environment, and may include forest, fish, and wildlife management. Owner — the Registered Owner(s) of the property upon which the development of redevelopment is being undertaken. Park land — includes land for parks and other public recreational purposes. Planning Act — means the Ontario Planning Act, R.S.O. 1990, c. P.13, as amended. Redevelopment — the removal of buildings or structures from a site and the construction or erection of other buildings or structures thereon, including adaptive re -use. Site Plan — means the development approval as described in section 41 of the Planning Act. Stormwater dedicated areas — land dedicated, designed and engineered for the purpose of stormwater management. Subdivision — means the process for subdividing land that is set out in section 51 of the Planning Act. 273.1.2 — Interpretations This By -Law is to be read in conjunction with the City of Kitchener Park Dedication Policy. In the event of conflicting guidance, the By -Law shall take precedence in any development interpretation. The City of Kitchener Park Dedication Policy is subject to change and the most recent version should be consulted. 273.1.3 — Development or Redevelopment Except as provided in this by-law, no person shall development or redevelopment land within the City unless the owner of the land has conveyed or agreed to convey land to the City in the amount or amounts as calculated set out in this By-law. As a condition of development or redevelopment of land within the City of Kitchener, the owner shall convey to the City land for park or other public recreation purposes. In addition to the conditions within this by-law, exemptions and reductions shall also be enacted through the Park Dedication Policy and as follows: a) Where the development or redevelopment land use is Residential, then: i) Land will be taken at Consent, in the amount of 5% of the total land being developed or redeveloped; ii) Land will be taken at Subdivision in the amount of 5% of the total land being developed or redeveloped, or one (1) hectare for each three hundred (300) dwelling units proposed, whichever is greater; or iii) Land will be taken at Site Plan in the amount of 5% of the land being developed or redeveloped, or one (1) hectare for each three hundred (300) dwelling units proposed, whichever is greater. KITCHENER 273 JUNE 2022 Page 28 of 917 PARK DEDICATION b) Where the development or redevelopment land use is Institutional, then land will be taken at a rate of 5% of the total land being developed or redeveloped. c) For land being developed which is not proposed for land use as Residential or Institutional, then where it is being developed or redeveloped, land will be taken at a rate of 2% of the total land being developed or redeveloped. d) Where the Director of Parks and Cemeteries determines cash -in -lieu of park land is applied to the above alternative residential rates, one (1) hectare for each five hundred (500) dwelling units proposed is the maximum rate. 273.1.4 — Calculating Park Land 273.1.4.1 — Factors for Calculations The following sets out the criteria of calculating park land or cash -in -lieu of park land dedication as condition of development: a) Where the development land use is Residential, park land dedication as a condition of Site Plan will be based on net proposed dwelling units, with further interpretation as follows: i) Existing dwelling units that are to be retained will not be included in the park dedication calculation. ii) Existing dwelling units that are to be demolished, or have been demolished within five (5) years of the development or redevelopment, from the date of demolition permit issuance to the date of Approval in Principle, will be deducted from the net proposed dwelling units. iii) Legalization of existing dwelling units are considered proposed dwelling units. iv) Additional dwelling units (ADU's) are considered proposed dwelling units. b) Where the development land use is Residential, park land dedication as a condition of Subdivision is determined as follows: i) All land within Plans of Subdivision is eligible for use in calculation of park dedication requirements, less hazard lands, natural heritage features, ecological buffers or any naturalized features that are non -developable or will otherwise be conveyed to the City through other processes. ii) Dedicated stormwater areas are considered eligible land area for use in calculating park dedication within Plans of Subdivision. iii) Multi -unit blocks are calculated as follows: i. In accordance with the number of dwelling units specified within multi -unit blocks on the proposed draft plan of subdivision; and In cases where a specified number of high-density units are not provided on multi -unit blocks within a draft plan of subdivision, the parkland KITCHENER 273 JUNE 2022 Page 29 of 917 PARK DEDICATION requirement for each block shall be calculated up to the maximum number of units allowed within the density range of each block. c) Where the development land use is Residential, park land dedication as a condition of Consent is determined as follows: i) Park land or cash -in -lieu of land will only be required on newly created development properties. d) Where the development land use is Residential in addition to a non-residential use, park land dedication is determined as follows: i) Park land or cash -in -lieu of park land dedication will be applied to each type of use, calculated separately as independent applications and combined to form the total park dedication requirements. e) Where the development land use is Commercial, Industrial and Institutional, park land dedication is determined as follows: i) In the event of development or redevelopment of commercial or industrial lands, dedication will be based on the percentage of new net gross floor area (proposed GFA less demolished GFA) to the total gross floor area (proposed GFA plus retained GFA), applied to the maximum required dedication (2%) f) Where there is discrepancy in the development land use, the land zoning shall be used to determine park dedication requirements. 273.1.4.2 — Exemptions or Reductions In addition to the exemptions and reductions within this by-law, exemptions and reductions shall also be enacted through the Park Dedication Policy. No conveyance or additional conveyance of park land dedication or cash -in -lieu of park land dedication will be required for the following: a) If land has been conveyed or is required to be conveyed to a municipality for park or other public purposes or a payment in lieu has been received by the municipality or is owing to it under this section or a condition imposed under section 51.1 or 53, no additional conveyance or payment in respect of the land subject to the earlier conveyance or payment may be required by a municipality in respect of subsequent development or redevelopment unless: i) there is a change in the proposed development or redevelopment which would increase the density of development; or ii) land originally proposed for development or redevelopment for commercial or industrial purposes is now proposed for development or redevelopment for other purposes. a) In all exemptions listed in subsection (a), previous conveyances in either park land dedication or cash -in -lieu of park land dedication deducted from current park dedication KITCHENER 273 JUNE 2022 Page 30 of 917 PARK DEDICATION calculation. Cash -in -lieu of land deductions will be based on the land that was required and converted to cash value at the time of dedication. b) Replacement of an existing commercial or industrial building equal to or less than the existing gross floor area. c) The proposed use is a temporary sales centre as defined in the Zoning By -Law 2019-051. 273.1.5 — Conveyance of Park Land or Cash -in -Lieu of Park Land 273.1.5.1 — Conveyance and Acceptance of Land In addition to the conditions of conveyance and acceptance of park land dedication within this by-law, conditions of conveyance and acceptance shall also be enacted through the Park Dedication Policy. a) Lands conveyed to the City of Kitchener pursuant to this By-law shall be conveyed: i) Free and clear from all encumbrances; and, ii) In a condition deemed satisfactory by the Director of Parks and Cemeteries and in accordance with the requirements of the City's Official Plan, Park Dedication Policy, Development Manual and other City policies related to the acquisition of real property. b) The Director of Parks and Cemeteries retains the right to not accept the conveyance of land that is considered unsuitable, including: i) Environmental lands, including but not limited to: i. Natural Heritage Conservation lands; ii. Cultural Heritage landscapes and corridors; iii. Stormwater dedicated areas; iv. Flood Plain Conservation Lands; v. Woodlots; vi. Streams, creeks or wetlands; and/or, vii. Steep or unstable slopes. ii) Contaminated or suspected of being contaminated; iii) Any land having unsuitable or unstable soil conditions for intended recreation facilities; iv) Hydro rights -of -ways or easements; v) Privately built, owned and operated recreational areas; and/or, vi) Any portion of land that would serve a purpose that is contradictory for the intended use as public park land. c) Notwithstanding 273.1.5.1.a, the City may at its sole discretion, under special circumstances and as directed by the Director of Parks and Cemeteries or designate: KITCHENER 273 JUNE 2022 Page 31 of 917 PARK DEDICATION i) Accept environmental lands as a means for protection of the natural amenity or for potential use as a passive recreational and educational feature; ii) Accept lands that have been disturbed, filled, stripped, or containing debris by any other means, provided the Owner undertake restoration of the land to the satisfaction of the City and at the Owners cost; iii) Reduce the park land or cash -in -lieu of park land dedication requirement for privately built, owned and/or operated spaces that are publicly accessible without restriction to the public, in accordance with the requirements set out in the City's Park Dedication Policy as amended; iv) Accept suspected contaminated lands provided due diligence in environmental analyses is completed, submitted to and accepted by the City at the sole discretion of the Director of Parks and Cemeteries, including but not limited to: i. Phase I Environmental Site Assessment (ESA) per CSA -Z768 (current revision); ii. Phase II ESA as per CSA Z769 (current revision); and/or iii. Minister's acknowledgement of a Record of Site Condition. v) Accept land that is outside of the development limits within the boundaries of development, as set out in the Park Dedication Policy. d) Any legal and administrative costs associated with the conveyance of land shall be the responsibility of the Owner. e) Any requirement to convey land to the City for park or other recreational purposes is fulfilled when the City accepts the conveyance. 273.1.5.2 — Cash -in -Lieu of Land Payments In addition to the conditions of cash -in -lieu of park land dedication within this by-law, conditions of cash -in - lieu of park land dedication shall also be enacted through the Park Dedication Policy. Where the Director of Parks and Cemeteries determines cash -in -lieu of park land dedication is required, the following criteria apply: a) Land value for purposes of cash -in -lieu of land conveyance shall be based on valuation rates determined by an accredited appraiser (AACI) for the specified classes of land. This schedule is referred to under Appendix "A". b) In the event there is a discrepancy, challenge of the accredited values or a development that is not of a type set out Appendix `A', the Owner may obtain an appraisal of the land prepared by an accredited appraiser with the Appraisal Institute of Canada (AACI) and in accordance with the City's terms of reference, with costs paid for by the Owner. The City may: i) Accept the appraisal; or, ii) Require a peer review, paid for by the City to confirm appraisal valuation. c) The market value shall be fixed in accordance with the appraisal obtained by the City. KITCHENER 273 JUNE 2022 Page 32 of 917 PARK DEDICATION d) All cash -in -lieu of land dedication requirements must be received and paid into a special account administered by the City of Kitchener. e) Deferral of cash -in -lieu of park land dedication may be pursued at the discretion of the Director of Parks and Cemeteries, as set out in the Park Dedication Policy. 273.1.5.3 — Timing Park land conveyance, or the payment of cash -in -lieu of land for any development or redevelopment shall be received by the City prior to the following, at the City's discretion: a) Issuance of the first building permit for the proposed development or redevelopment, in accordance with Section 42 of the Planning Act; b) Approval of Plan of Subdivision or Condominium, in accordance with Section 51 of the Planning Act; or, c) Consent being granted, in accordance with Section 53 of the Planning Act. 273.1.6 — Transition Notwithstanding anything else contained in this by-law, a development or redevelopment shall not be subject to the parkland dedication requirements set out in this by-law and shall be instead subject to the parkland dedication requirements set out in By -Law 2008-93 as it existed on the day before the effective date, where the following has occurred in relation to the development or redevelopment: a) On the day before the effective date, pursuant to the Planning Act, a complete application has been submitted for one or more of the following: i) Official Plan Amendment; ii) Zoning By-law Amendment; iii) Site Plan; iv) Vacant Land Condominium; v) Subdivision; or vi) Consent; and, b) The same development or redevelopment has received one of the following within 24 months of the effective date of the by-law: i) Final Site Plan Approval; ii) Draft Plan approval for Subdivision; iii) Draft plan approval Vacant Land Condominium; or, iv) Provisional Consent. c) Notwithstanding anything contained this section, if an application set out in subsection (a) is appealed to the Ontario Land Tribunal, then the 24 month period set out in subsection (b) shall be suspended for the duration of said appeal until all of such appeal(s) have been withdrawn or finally disposed of, whereupon the 24 month period shall resume. KITCHENER 273 JUNE 2022 Page 33 of 917 PARK DEDICATION d) At the discretion of the Director of Parks and Cemeteries or the Director of Planning, if an application set out in subsection (a) includes a condition which requires approval from the Regional Municipality of Waterloo or the Province of Ontario, and/or any appointed representatives of either, the 24 month period set out in subsection (b) shall not apply to such condition(s), only where all other conditions have been satisfied and subsection (b) would otherwise be satisfied. Article 2 EFFECTIVE DATE AND REPEAL 273.2.1 - Administration and Appeal This By -Law shall come into force and effect on the day that it is passed. The administration of this By -Law and the determination of the application of this By -Law is hereby delegated by Council to the Director of Director of Parks and Cemeteries. 273.2.2 — By-law - previous By-law 2008-93 and the contents of Chapter 273 will be repealed on the effective date. KITCHENER 273 JUNE 2022 Page 34 of 917 PARK DEDICATION Appendix 'A' Land Valuations Category Applicable Built Form $ per Acre $ per Hectare Retail/Neighbourhood N/A $1,550,000 $3,830,000 Commercial Industrial N/A $750,000 $1,853,000 Employment/ Office N/A $950,000 $2,348,000 Residential — Lots Individual lots, including: $11,000 $36,080 • Single detached (per linear foot) (per linear meter) • Semi detached • Townhomes Residential - Low Density Subdivision, including: $950,000 $2,348,000 • Single detached • Semi detached • Townhomes Residential — Medium (<2 FSI) Cluster townhouse $1,550,000 $3,830,000 Stacked townhouse Quad units Residential - Medium, Mixed Use N/A $2,400,000 $5,931,000 (<2 FSI) Residential - High, 5-10 FSI N/A $8,000,000 $19,768,000 Residential - High, 10+ FSI N/A $17,500,000 $43,243,000 KITCHENER 273 JUNE 2022 Page 35 of 917 1 KiTci�ENER PARK DEDICATION POLICY General The Planning Act authorizes municipalities to require the conveyance of land for park or other public recreational purposes as a condition of development, redevelopment or approval of a plan of subdivision. The City of Kitchener enacts this tool through the Park Dedication By-law, Chapter 273. The By -Law provides the City's specific application of the Planning Act conditions, including interpretations, exemptions and requirements of conveyances. The Park Dedication Policy guides the application of the by-law tool, allowing for additional clarity in processes and strategic direction as approved by Council. 2 Principles The following principles of park dedication shall be followed when applying dedication requirements to development applications: All development impacts the communities living and working in Kitchener. Public park space is intended for use by all communities in Kitchener, whether living or working in the City, and is vital to supporting complete communities. Public park space is focused on areas where public use and access to is greatest — typically in residential areas. As a result, all development should contribute toward the provision of public park space, but the nature of some development should contribute more significantly. Park land will be evaluated based on a metric of square meters per resident, which both targets and policy guidelines will unify under. In all circumstances parkland dedication in the form of land is preferred over alternative forms of dedication, such as cash in lieu of land; a. Plans of subdivision must yield developable land for park purposes with no constraints to active park use and the provision of park facilities, unless otherwise determined by the City of Kitchener b. Infill development, or development within identified park land deficient communities, must make every effort to provide public park land where park land is deemed necessary by the City of Kitchener. Page 36 of 917 3 Interpretations Park Provision For the purposes of this policy, interpretation is required to convert Planning Policy from a provision of hectares per residential unit to square meters per resident. Refer to the chart in Appendix `A' to calculate projected park provisions within a variety of development and application types. Where residential units cannot be defined, the average persons per household within the City of Kitchener will be used. Park Land A park is defined as land that is reserved or used for public recreation, leisure, environmental protection and ecological function. For the purposes of this policy, parks are Planned Parks that are publicly owned, managed, and constructed with intent to serve as a recreational amenity. Other forms of park land are recognized as follows: Natural lands, hazard lands and environmentally significant lands: Lands that may include the preservation, maintenance, sustainable utilization, restoration, and/or enhancement of the natural environment, and may include forest, fish, and wildlife management. The City supports conveyance of these lands to public agency ownership and management to ensure and secure their permanent protection. These lands should be protected for the primacy of natural protection and biodiversity, and they should not be considered primarily for public use and recreation. As such, these lands are not considered eligible for park land dedication. 2. Privately Owned Public Space (POPS): Privately built, owned and either privately or publicly operated outdoor recreational amenities. The lands are held in private ownership, with capital asset management and renewal privately determined. Public access without restriction is required to be considered a public space. POPS are considered additional to a basic level of provision of public parks. The City recognizes the value of POPS in addition to public park space where no alternative option exists, and may provide credit towards the park land dedication requirement. 3. Strata parks: Publicly owned park spaces located on top of buildings or structures, including but not limited to parking garages. Land ownership is horizontally delineated between the structure and the surface. These spaces can serve park values, but overlay infrastructure which adds significant complexity to long term use and management. The City does not current consider public park use over infrastructure as contributing toward Parkland Dedication. 4. Other Open Spaces Page 37 of 917 Cities consist of a wide variety of public open space that contribute toward quality of life and complete communities. Spaces such as urban plazas, pedestrian first streets, enhanced boulevard spaces etc., can all contribute toward livable communities. These are all valued within a diverse and complete urban environment. However, these contribute over and above a basic provision of publicly owned and managed parkland spaces. Parkland Dedication is not considered appropriate 4 Exemptions, Reductions & Limitations Exemptions In addition to exemptions listed under Chapter 273.1.3, the following properties to be developed by, on behalf of, and for the use by are exempt from park dedication requirements: o The City of Kitchener o The Region of Waterloo o Kitchener -Wilmot Hydro, or successive electrical distribution organization o Publicly funded school boards operating within the City of Kitchener o Post -secondary institutions o Public hospitals as defined under the Public Hospitals Act; Notwithstanding the conditions of park land dedication under Chapter 273.1.2. and 273.1.3.1, all non-residential developments are exempt from park dedication requirements. Supportive Housing initiatives will be exempt from park land dedication, being defined as follows: o Non -Profit Housing Development — is defined by 0. Reg. 454/19, s. 3 (1) and means development of a building or structure intended for use as residential premises by, ■ a corporation to which the Not -for -Profit Corporations Act, 2010 applies, that is in good standing under that Act and whose primary object is to provide housing; ■ a corporation without share capital to which the Canada Not-for-profit Corporations Act applies, that is in good standing under that Act and whose primary object is to provide housing; ■ a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act, and/or o Affordable Rental Housing projects, whether these be for profit or not, being defined by the Canada Mortgage and Housing Corporation (CMHC) as generally representing a monthly rent that is equal to, or less than, 80% of the average monthly rent of the regional market o Providing that the developer enters into an agreement with the City that the units thus exempted remain as `Supportive Housing' for a period of no less than 20 years. Page 38 of 917 o And further that, should the developer, successor, heir, assignee or subsequent owner change the nature of the units thus exempted, that they be charged the full Parkland Dedication requirements as apply at the time such a change is made. Reductions Notwithstanding the Park Dedication requirements under Chapter 273, Council strategic reductions will apply as follows: 1. Accessory Dwelling Units (ADU) will be excluded from park dedication unit calculations. In cases where developments are strictly for the installation of an Accessory Dwelling Unit, they will be exempt from park dedication requirements. Proposed privately built, owned and/or operated spaces that are publicly accessible without restriction, and generally conform to the definition as per this policy of Planned Parks, may be eligible for park land dedication reduction up to 100% of the total land area provided under private ownership. The land dedication will be reduced from the total dedication requirement. Registration of public access easements on title are required to qualify for this reduction. Limitations Notwithstanding the Park Dedication requirements under Chapter 273, strategic limitations will apply as follows: Where land is being taken as a condition of Site Plan Approval, park dedication will be limited to 10% of the total site area. The balance of park dedication is required in cash -in -lieu form. Site specific conditions may yield park land greater than the limit stipulated, to be determined on each development application between the City and Applicant. Where land is being taken as a condition of Subdivision or Site Plan approval, park dedication will be limited to the lesser of 10 sq.m. per resident, or 1 hectare per 300 units. Residential unit conversion methods are referenced in Appendix A. All cash -in -lieu contributions for residential development will be limited to $11,862 per dwelling unit regardless of the land use category it falls within and specific appraisals submitted on the lands. The cap is linked to the Residential — Medium, Mixed Use (<2FS1) land use category within the Park Dedication By -Law Appendix A', and subject to increases or decreases as the valuation is updated. The cap is calculated at the maximum cash -in -lieu of land alternative rate of 1 hectare per 500 residential units applied to the land use category listed above. 5 Park Dedication — Land Accepting Land as Park Page 39 of 917 In addition to the acceptance requirements under Chapter 273.1.4.1. and Kitchener's Development Manual Section L, the following criteria apply to accepting park land: 1. Have sufficient public right of way frontage to ensure: a. Unencumbered, barrier free public access from right of way b. Safety and high visibility to ensure maximum natural surveillance from the right of way Meet the overall design, property geometry, drainage, stormwater and topographical requirements of its intended use Subdivision Land as a park dedication requirement will be pursued in all subdivision development. Subdivision applications that submit modifications following Draft Plan of Approval and establishment of park property boundaries will have the Park Dedication requirement re -calculated based on revised residential unit totals. The Developer is responsible for rectifying deficiencies in park supply resulting from the submitted modification. Site Plan Development The City of Kitchener will use the following three -stage criteria to determine if land dedication will be pursued or accepted from an infill development through Site Plan Application process: Stage 1: Either must apply 1. Located within any community with a park acquisition priority (Low, Medium, High, Critical, refer to Appendix `B' for the list of community areas); or 2. Development creates a need for park acquisition by reducing the community park provision below the City's average. Stage 2: All must apply 1. The site is suitable for use as public park land, in current or remediated states; 2. Free and clear from all encumbrances, in current or remediated states, unless otherwise deemed acceptable by the Director of Parks and Cemeteries. Stage 3: Recommended 3 must apply: 1. Land connects to existing or planned park or open space system 2. Compliments existing recreational features and assets within the community 3. Land is situated within 500m walking distance of the development or residences it is intended to serve 4. Provide a space for people of all ages, genders, cultures, religions, abilities and incomes 5. Suitable for future community needs and growth Final determination and acceptance of land through Site Plan review processes is at the discretion of the City at the discretion of the Director of Parks and Cemeteries. Page 40 of 917 Off -Site Dedication If a development is to provide land as its park dedication requirement, it is expected to do so within the limits of the development. In applications where land is critical or high needs for park service delivery, dedication of land off-site may be pursued if mutually agreed upon by both the Developer and City of Kitchener. Off-site land must meet the same criteria as identified in Chapter 273.1.4.1, Development Manual Section L and under the Park Dedication Policy, Section 5, unless otherwise approved by the Director of Parks and Cemeteries Off-site land will be considered land area based within the Park Dedication requirement. Off-site land will be considered equal to land provided on-site, regardless of the property's market value. If the total park dedication cannot be met with off-site dedications, the remaining land requirement will apply to the development site and required as an additional cash -in -lieu dedication. Off-site dedication will be pursued at the sole discretion of the Director of Parks and Cemeteries and must establish a direct connection to the impact of the proposed development. Page 41 of 917 6 Park Dedication — Cash -in -lieu Balances In all cases, the City will seek land through Parkland Dedication. Where the maximum land requirement cannot be achieved a blend of land and cash in lieu of land will be sought. Cash -in -lieu will be calculated by the remaining hectares of land required. Park Land Deferrals If development is to be completed in phases, the cash -in -lieu park dedication for future phases may be deferred as set out in a Parkland Deferral Agreement to be registered on title as a separate agreement in addition to the Section 41 Site Plan Agreement. The following criteria are to be followed if a developer chooses to pursue park land deferrals. All criteria are subject to the discretion and approval of the Director of Planning in consultation with the Director of Parks and Open Spaces: Park land deferrals does not apply to Land dedication The developer must provide rationale and business case for proposed deferral agreement The developer is subject to additional administration fees that are not captured within the Section 41 agreement process The condition of park land dedication within the Site Plan Agreement can only be completed once the developer has received a fully executed copy of the Parkland Deferral Agreement Page 42 of 917 7 Appendix `A' Average Persons per Residential Dwelling Type Source: Statistics Canada, 2021 Census Data Census Subdivision: Kitchener Data Table: Type of Dwelling: Structural type of dwelling and household size (released April 27, 2022) Built Form Residents per Dwelling Unit City-wide Average 2.6 Structural Type of Dwelling: Single -Detached 2.9 Semi -Detached 2.9 Rowhouse 2.7 Apartment, stacked town, flat or duplex 2.3 Apartment, >5 storeys 1.8 Apartment, <5 storeys 1.9 Other, single -attached dwelling 2.4 Page 43 of 917 Appendix `B' City of Kitchener Communities Community Park Acquisition Priority City Comm. Core Critical Civic Centre Critical King East Critical KW Hospital Critical Pioneer Tower East Critical Alpine High Bridgeport West High Doon South High Mill Courtland High Vanier High Central Frederick Medium Centerville Chicopee Medium Grand River North Medium Rockway Medium Rosemount Medium Victoria Park Medium Westmount Medium Brigadoon Low Country Hills East Low Fairfield Low Grand River South Low Heritage Park Low Hidden Valley Low Laurentian West Low Rosenberg Low Non-residential Communities (no priority) Dundee Huron Park South Plains Trillium Industrial Park Trussler Victoria North Community Park Acquisition Priority Auditorium None Bridgeport East None Bridgeport North None Cedar Hill None Cherry Hill None Country Hills None Country Hills West None Eastwood None Forest Heights None Forest Hill None Highland West None Huron South None Idlewood None Laurentian Hills None Lower Doon None Meinzinger Park None Mt Hope Huron Park None Northward None Pioneer Park None Pioneer Tower West None Southdale None St. Mary's None Stanley Park None Victoria Hills None Page 44 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: June 8, 2022 SUBMITTED BY: Niall Lobley, Director of Parks & Cemeteries, 519-741-2600 ext. 4518 PREPARED BY: Mark Parris, Landscape Architect, 519-741-2600 x4397 WARD(S) INVOLVED: All Wards DATE OF REPORT: May 26, 2022 REPORT NO.: INS -2022-224 SUBJECT: Places & Spaces — Park Strategic Plan and Park Dedication Update RECOMMENDATION: That Spaces be approved and recognized as the City's Parks Plan pursuant to the requirements of the Planning Act; and, That the updated Park Dedication By -Law Chapter 273 and Park Dedication Policy be approved in the form shown in "Proposed Park Dedication By -Law (2022)" and "Proposed Park Dedication Policy (2022)", attached to staff report INS -2022-224 as Attachment "C" and Attachment "D"; and, That staff be directed to work with the school boards to explore shared use agreements that provide for a common understanding of where public use can be supported on existing school board lands, and where school board use of public parks may occur; and, That staff be directed to continue to work with agencies such as Kitchener Wilmot Hydro and Hydro One in managing areas of transmission corridors to support and link a planned park and open space system, and continue to work with partners such as Chicopee Ski Hill and the Grand River Conservation Authority to enhance the City's parks and open space system; and, That staff be directed to identify specific properties of interest for acquisition or repurpose (in the event lands are identified that are in public ownership) to address identified Critical Needs Areas and bring these forward when opportunities exist to Council; and further, That staff be directed to incorporate relevant directions from Spaces into the City's Official Plan though its next review. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. PIRgge45 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca REPORT HIGHLIGHTS: • This report compiles and presents the documents necessary to complete the first stage of the City's updated Open Space Strategy (named Places & Spaces), and update the City's Park Dedication By -Law and Policy Documents • The financial implications are indirect capital funding impacts by excluding the use of the Parkland Reserve within the capital forecast. • Community engagement included direct stakeholder and legislatively required consultation, public surveys, statistically valid surveys, public information centres and a comprehensive promotion and outreach strategy including presence in community centres and city facilities, mobile advertisements and social media promotion. • This report supports A Caring Community by completing an Open Space Strategy. INTRODUCTION It is estimated that at least 22 million visits are made to parks and open spaces in the City each year, making parks one of the most well used and free -to -access recreational resources in the City. Parks and open spaces are vital; no specialized equipment is needed to access them, and their unique location in the heart of each community makes these spaces critical to supporting local residents and building a sense of community and connection. They are the areas that people go to recharge, relax, celebrate, recreate and connect with others; they are for the young, the young at heart, and everyone in between; they act as areas for stormwater absorption, they help clean the air, cool the city and support a diversity of wildlife, and are a vital habitat connection across the City for that wildlife. Parks and open spaces are fundamental city -building blocks, treasured and valued by community. Spaces is the first part of a comprehensive review and revision of the former Parks Strategic Plan, called Places & Spaces: A Parks and Open Spaces Strategy for Kitchener. In it, Kitchener explores where we have parks, the types of parks we have and the other types of land that form part of a connected system of parks and open spaces. Spaces explores the partnerships and potential for growth in the park and open space system, and how in a changing city, parks and open space provisions need to evolve and change. It identifies the need for equity in park provision and seeks to direct prioritization of future investment in spaces for parks. Spaces connects expectations of how much park land the City has, will have, and can achieve with the tools that create those lands. Spaces forms the `Parks Plan' defined in the Planning Act that informs a Park Dedication By -Law, which is one of the principal tools toward achieving Spaces. The evolution reflected in Spaces is responsive to the changing needs of a city and is informed by an extensive engagement and consultation program. While the plan addresses *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. PIRgge46 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca all parks and open spaces, it centres on the vital role of the Local Park; parks embedded in community and neighbourhoods, as the core component of a much wider system. It looks to our partners as key stakeholders in developing a parks and open space system and it seeks to address the pressures that community and residents have raised in respect to park provision. BACKGROUND: Kitchener's Strategic Plan (2019-2022) identifies within `Caring Community' the desire to complete an Open Space Strategy. The existing Parks Strategic Plan (2010) requires review and update. In Spaces, Kitchener will seek to deliver an equity based, community focused plan that responds to the needs of a rapidly changing and developing City; that builds on existing plans and strengthens community links to parks by facilitating placemaking in parks and open spaces. Spaces is the City's Parks Plan (under the Planning Act) and will provide the context and direction to support a revised Park Dedication Bylaw. Places will be completed in 2023. Spaces has been informed by Council, stakeholder and community engagement, including school boards, and consultation, and work is ongoing in respect to engagement on Places. Places and Spaces — a Parks and Open Space Strategy for the City of Kitchener Places and Spaces is the title for this new plan; it reflects the fact that the Spaces that we have in parks and open space across the City are important parts of building Place — at a range of levels, place making for the City, and place making at a neighbourhood level. Places Places reflects a strategic context for what community outcomes are served by parks and open spaces and how we, as a city, will look to build and shape parks and open spaces to meet these outcome needs. Spaces Spaces focuses on the location and amount of parks today and in the future, provides strategic context and priorities for securing new parks. It considers currently underserved areas, growth forecasts and use of an equity lens to prioritise park acquisition. Key within this document is a consideration of classifying parks and open spaces, a discussion on form and function of different spaces, and establishing parks provision targets. Spaces will provide a stand alone plan that will inform the Park Dedication By -Law and policy and will be developed to meet the requirements of a `Parks Plan' under the Planning Act. Park Dedication Park dedication is administered and applied through two primary documents — the Park Dedication By -Law (Chapter 273), and Park Dedication Policy (2012). The Park Dedication By -Law provides the legal basis for the City to require park or cash -in -lieu as a condition of *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. PIRgge47 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca development. The Policy provides guidance to staff, developers and other stakeholders on how the By -Law is to be applied. Through changes to a variety of planning legislative tools implemented under the Omnibus Bill 197 which became the COVID-19 Economic Recovery Act, Council must review and pass a new Park Dedication By -Law no later than September 2022. In the event that no new By -Law is in place, the City will cease being able to collect meaningful park or cash in lieu through residential intensification projects in particular. The Park Dedication By -Law is subject to appeal to the Ontario Land Tribunal (formerly Local Planning Appeal Tribunal (LPAT), and Ontario Municipal Board (OMB)). Previous park dedication by-laws were not subject to appeal. Spaces & Park Dedication The Park Dedication By -Law must be supported by a `Parks Plan'. Spaces has been developed to function as the Parks Plan under provincial policy to directly inform the Park Dedication By -Law and Policy updates. As a result of the timelines imposed by the Province, Spaces was prioritized and developed to be presented to Council independently and alongside a revised Park Dedication By -Law and Policy. REPORT: The fundamental approach to Spaces is to connect expectations of park land with the tools that create them. The City can set park land targets however we choose, but if they are not grounded within sustainable and realistic methods, they will never be achievable. This connection is done by understanding the City's current inventory and park acquisition tools in place now, to act as the boundaries within which targets can be set and acquisition tools updated to achieve those targets. The result is a Parks Plan that supports the principles of the Park Dedication By -Law and Policy, and policy documents that in -turn support the key directions of the Parks Plan. Further details are highlighted in the Executive Summary within the Spaces report, Attachment "B". The intent of this Staff Report is to provide the key findings of Spaces and summarize the changes to the Park Dedication By -Law and Policy that support Spaces, address the logistics of implementation, and outline mitigations to potential impacts on the development community as the documents are rolled out. It should be noted that the City relies almost exclusively on the park dedication process to create its park properties. Adjustments and mitigations listed below directly impact the ability, or the timing, of pursuing park land acquisitions. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. PIRgge48 of 917 ,Staff Report J t�T�;r�rER Infrastructure Services Department www.kitchener.ca Key Findings of Spaces: • Establishes a target of providing 10 square meters of local park per person across the City, maintaining the current average provision • Identifies that Local Park provision is not equitably spread and introduces a prioritization for addressing equity in park provision. Nine areas of Critical Need based on current and future local park needs are identified. • Approximately 28ha of additional local park space is required to meet objectives within the highest needs communities over the next 20 years. Approximately 16ha will be generated through land dedication associated with development and 12ha will need to be identified and secured by the City. • Recognizes a growing and changing city and that: o Local park needs can be met in a variety of ways, as well as through the provision of traditional publicly owned parks o Local park provision must be balanced with wider community environmental and sustainability objectives o The need to ensure that local park needs do not conflict with other priorities of the City, such as creating affordable housing Summary of Park Dedication Changes Principles of Park Dedication In the process of refreshing and introducing new policies on Park Dedication, guiding principles are employed that shape the intent of the By -Law and Policy documents: 1. All development impacts the communities living and working in Kitchener. Public park space is intended for use by all communities in Kitchener, whether living or working in the City, and is vital to supporting complete communities. Public park space is focused on areas where public use and access to it is the highest need — typically in residential areas. As a result, all development should contribute toward the provision of public park space, but the nature of some development should contribute more significantly. 2. Park land will be evaluated based on a metric of square meters per resident, which both targets and policy guidelines will unify under. 3. In all circumstances park dedication in the form of land is preferred over alternative forms of dedication, such as cash -in -lieu of land. 4. Plans of subdivision must yield developable land for park purposes with no constraints to active park use and the provision of park facilities, unless otherwise determined by the City. 5. Infill development, or development within identified park land deficient communities, must make every effort to provide public park land where park land is deemed necessary by the City. Significant Updates and Revisions *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. PIRgge49 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca The revised Park Dedication By-law is provided in Attachment "C" and the key changes are summarized in Table 1 below. Table 1: Current By- Revision Impact Law/Policy Developments within Exemption removed All developments within the Downtown the Downtown Community boundary will now be Kitchener Community subject to updated park dedication Area are exempt requirements. from park land dedication requirements Cash -in -lieu of land Updated market values Highest valuation category increased valuations based on and land use from $2,718 (Multiple Residential use) to 2010/12 market categories reflecting $11,862 per residential unit (Capped values fixed within today's development High Density Residential, 10+FSI). the Policy environment Average land value increased approximately 300-400% as a single correction to a 10-12 year policy stagnation Park land taken Land requirement Typical 5% dedication yields through Subdivision increased to the lesser approximately 4 to 7 square meters per capped at 5% of of 10 square meters person. Increasing targets in subdivision eligible land area per resident or 1 match the overall target provision and hectare per 300 units current average local park supply. (provincial max.) All development is Updated to include a Re -aligns with Planning Act clause to exempt from park critical statement allow for further dedication under these land dedication if "unless there is an conditions maximum park increase of dwelling dedication had units or change in use" previously been collected NEW Off-site land as park A tool intended to provide options for dedication developments that otherwise cannot provide land for public park uses within the boundaries of development. Lands dedicated off-site must: *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 50 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca Development Impact Analysis N. Barry Lyon Consultants (NBLC) were retained to complete a comprehensive evaluation of multiple policy changes on the financial viability of new residential development. The analysis considered all iterations including: • Community Benefits Charge (new) — 4% of land value that replaces development bonusing agreements • Development Charges (updated) • Park Land Dedication (updated) — cash -in -lieu of park land updated appraisal values • Inclusionary Zoning (new) — placeholder policy requiring that 5% of development floor area be sold or rented at below market rates. The report is presented and summarized through Staff Report DSD -2022-281 - Growth Related Funding Tools — Cumulative Impact Assessment. Staff have incorporated many of the recommendations of the NBLC report into the Park Dedication By -Law, which are reflected in the following section. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 51 of 917 • Be mutually agreed upon by both the City and Developer. • Follow the same requirements as on-site land. • Be within a maximum distance of the development and within the boundaries of its' community. NEW All non-residential Non-residential developments generate developments will be approximately 6% of the total cash -in - exempt from park land lieu contribution. This proportion is dedication expected to decline significantly as the requirements Downtown exemption is removed and land valuations are updated to current market values. NEW Affordable Housing Supportive Housing will be exempt from developments will be park dedication requirements, and exempt or reduced affordable rental housing will be reduced to 5% land area maximums. NEW Privately Owned Public Privately owned public spaces are not Spaces are eligible for public park land but do contribute value up to 25% credit as an alternative open space, a principle towards park established within Spaces dedication requirement Development Impact Analysis N. Barry Lyon Consultants (NBLC) were retained to complete a comprehensive evaluation of multiple policy changes on the financial viability of new residential development. The analysis considered all iterations including: • Community Benefits Charge (new) — 4% of land value that replaces development bonusing agreements • Development Charges (updated) • Park Land Dedication (updated) — cash -in -lieu of park land updated appraisal values • Inclusionary Zoning (new) — placeholder policy requiring that 5% of development floor area be sold or rented at below market rates. The report is presented and summarized through Staff Report DSD -2022-281 - Growth Related Funding Tools — Cumulative Impact Assessment. Staff have incorporated many of the recommendations of the NBLC report into the Park Dedication By -Law, which are reflected in the following section. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 51 of 917 ,Staff Report J t�T�;r�rER Infrastructure Services Department www.kitchener.ca Park Dedication Adjustments To address the concerns that developers have raised and that have been supported through the NBLC report, staff are recommending in the By -Law a number of tools to support implementation, while seeking to ensure no negative and significant impacts to development in the City which could further constrain housing supply and result in unintended negative impacts. Land is always preferred In all circumstances, if suitable land for local park provision can be identified that has a direct nexus to the development proposal, land will always be preferred over cash in lieu. To further enhance the ability for the development industry to work with the City in meeting park needs of communities, and recognizing that in infill development especially, functional local park space is rarely achievable, staff are recommending an approach where off site land could be recognised as park dedication, within strict limitations that ensure the off site lands are close enough to the development to meet the needs of the local community. Dedicating off site lands may reflect an ability for a developer to reduce costs; they may be able to secure land at a lower cost than the cash in lieu of land fee would be under park dedication. Individual appraisals The City has relied on a book valuation approach to park dedication for many years, and through Spaces and the revised Park Dedication By -Law, recommit to this approach. Staff are confident that this approach provides for cost certainty to the development industry, budget predictability for the City and an easily understood, reliable approach to park dedication. However, it is an approach which is driven by averages and as such will eliminate extremes of the market. It is important that developers retain the ability to challenge the land value assumptions within book valuations by seeking site-specific appraisals which would reflect an alternative park dedication rate. If a developer feels that the land value assessment that the City has recommended is too high, and results in too high a park dedication requirement, this can be reviewed through an individual appraisal process. Commitment to bi-annual reviews Through the park dedication policy, a market evaluation and revised park dedication rates will be undertaken at least once every 2 years. This will ensure that as market changes continue, park dedication rates for cash -in -lieu will adjust accordingly. If land values are depressed, then park dedication rates will decrease; as the market grows, park dedication will grow. This will prevent future need for significant corrections in either market scenario. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 52 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca Capped rates Staff are recommending a capped park dedication rate. This is a fixed maximum rate that will not be exceeded regardless of development type. Staff are suggesting the rate be linked to the mid -density threshold at $11,862 per unit. This cap rate means that higher density developments (2 FSR and above) will generally have a reduced fixed per unit cost of park dedication. In the highest value land markets and in the highest density development, this reflects a significant discount from the full, legislated maximum rate of park dedication. Transitional Arrangements The above tools are embedded within the By -Law that provide developers with a range of ways to meet park dedication requirements in a fiscally responsible way and to ensure that the City's policy on park dedication remains reflective of contemporary market pressures. However, many developments that are at an advanced stage of planning and financial commitment could be subjected to a new By -Law as they have not yet reached full Approval in Principle. In these instances, the development proforma is based on the existing Park Dedication By -Law and could be subject to a sudden and significant increase in park dedication fees. This impact would be significant, and it is understood that such a magnitude of change would result in developments becoming financially unfeasible and ceasing. Many of these development projects have already committed to public benefit, through bonusing arrangements, affordable housing commitments, or under the terms of the existing park dedication By -Law. Staff are recommending a transitional arrangement that would provide room for developments that are already under review and have received commentary by the City to continue to be reviewed under the terms of the existing Park Dedication By -Law for up to one year. All new developments would be considered under the new By -Law after its adoption; this transition would only apply to developments already under application to the City. STRATEGIC PLAN ALIGNMENT: This report supports A Caring Community by completing an Open Space Strategy. FINANCIAL IMPLICATIONS: There are no direct capital or operating budget impacts based on this report. Use of Cash -in -lieu of Park Land Dedication *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 53 of 917 ,Staff Report J t�T�;r�rER Infrastructure Services Department www.kitchener.ca Discontinuing the use of Parkland Reserve fund within growth related capital project funding for the 2023 budget cycle and beyond will create a $11,387,000 funding gap within the 2022- 2031 capital forecast. Adjustments to Development Charge allocations (moving many park developments funded through development charges from a 90% to 100% funded basis), to be addressed in the 2023-2032 budget planning cycle and it is believed will completely offset this funding gap. Transition Impacts Across the City, there are currently approximately 20,000 dwelling units that are under review with current development applications that are deemed as complete in accordance with the Planning Act and are not yet approved or constructed. Approximately 30% of these units are within plans of subdivision in future communities where park land contribution will be taken as land through the subdivision processes for future local parks. Approximately 25% of the units under review are currently exempt from park land dedication. If the new park land dedication rate was applied to these developments, an additional $56.8M of park land dedication funding could be expected. Similarly, 45% of dwelling units under review are subject to park land dedication at the current rates. If the new rate was applied to these units, there would be an additional $66.5M in park land funding. Staff are recommending the current park land dedication rates (or exemptions) for any development or redevelopment where, on the day before the effective date, pursuant to the Planning Act, a complete application has been submitted for one or more of the following applications; Official Plan Amendment, Zoning By-law Amendment, Site Plan, Vacant Land Condominium, Subdivision, or Consent. The same development or redevelopment must receive one of the following within 12 months of the effective date of the by-law to be eligible for the proposed transitions policies; Final Site Plan Approval, Draft Plan approval for Subdivision, Draft Plan approval Vacant Land Condominium, or Provisional Consent. Finally, staff are recommending suspending the 12 month timeframe noted above where an appeal is filed for any application by a third party (not the applicant), and the 12 month timeframe would resume when an appeal is withdrawn or finally disposed of. Projecting Cash -in -lieu of Land Predicting revenue generated from the updated Park Dedication By -Law is an inexact science. The potential revenue is linked to development and land values, both of which are subject to variabilities of timing and market demands. However, staff believe that the park needs within the nine critical areas can be realistically achieved and the community objective rates met within these areas by using the revenue generated from the Park Dedication By - Law, assuming that new park land is secured within a similar market to the fees collected to generate that land. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 54 of 917 ,Staff Report J 1' TC;HENER Infrastructure Services Department www.kitchener.ca Staff note that there will be a lag between an updated By -Law being implemented and fees being collected. Park dedication is calculated and agreed through the site plan process but adjusted for amendments to the development and collected prior to building permit. It is not unusual for this period between agreement and permit to extend for up to three years. Therefore, with the impacts of a transitional arrangement, and delays between fees being agreed and collected, staff believe the financial impact to increased revenues to the Park Reserve of the new By -Law will likely not be seen for at least 3 years and likely 5 or more years. While fees collected will be reflective of the market conditions at the time due to the biannual review and adjustment of dedication rates, and therefore cash in lieu collected will be reflective of the cost of land to purchase, there will always be a lag between the City collecting cash, and investing it into land for new local parks. In a rapidly escalating land market, the buying power of this cash is diminished over time. If the market continues to rapidly grow and suitable land for park space cannot be identified and negotiated for purchase in a timely manner, it is likely that the cash collected will be insufficient to meet the targets and community objective rates embedded within Spaces. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the Council / Committee meeting. Summary versions of Spaces have been made available in Arabic, French, Spanish and Serbian. All documents posted to Engage Kitchener have been externally converted into fully accessible formats. CONSULT — A full consultation summary is provided within the Spaces document, with consultation milestones listed below: • August 23, 2021 — Council Strategic Session through INS -2021-005 • October 2021 —direct feedback from City Councillors (10) • October 2021 — consultation with School Board representatives (Catholic, Public and French) • November 2021 — direct feedback from development community representatives (11) • November 16-17, 2021 — Public Information Sessions presenting initial findings of Spaces (2 PIC's) • December 2021 — Statistically valid survey conducted by third party research group (502 participants) • November to January 2022 — EngageKitchener platform public survey (1,176 participants) • January 2022 — Presentation to Kitchener Development Liaison Committee • April 2022 — Spaces document and public summary posted to EngageKitchener and circulated to City Councillors • April 8, 2022 — Follow up Presentation to Kitchener Development Liaison Committee *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 55 of 917 ,Staff Report J t�T�;r�rER Infrastructure Services Department www.kitchener.ca • April 2022 — Summary of Park Dedication By -Law and Policy posted to EngageKitchener and circulated to development community • May 12, 2022 — Final Public Information session presenting complete findings of Spaces (1 PIC) • May 13, 2022 — Final Presentation to Kitchener Development Liaison Committee • May 19, 23, 2022 — Final Feedback from City Councillors (7) • May 27, 2022 — Final documents — Spaces, By -Law, Policy and Staff Report — posted to EngageKitchener and circulated to development community PREVIOUS REPORTS/AUTHORITIES: INS -2021-005 -_Places & Spaces: A Parks & Open Space Strategy for Kitchener DSD -2022-281 -Growth Related FundingTools— Cumulative Impact Assessment Planning Act REVIEWED BY: Niall Lobley, Director of Parks and Cemeteries Natalie Goss, Manager, Policy and Research Rosa Bustamante, Director of Planning Tim Donegani, Senior Planner APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services Department ATTACHMENTS: Attachment A — Places & Spaces: Parks Strategic Plan Attachment B — Spaces Attachment C — Proposed Park Dedication By -Law (2022) Attachment D — Proposed Park Dedication Policy (2022) Attachment E — Commentary from Waterloo Region Homebuilders Association and Staff Response *** 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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I 6 4- C: O o O Q) 4- � c� 41 u Ln O +� ca a) � a) +� _ , a; a0) " 'ln 4-1 V) 'M 01 4 1 0a, ra M Ln 4- a, V, _� a a, 0 � Z3+, ra v -04- M f c 4 , ra ra O V) 0 ca d Ln CU �� sem: (3) fu v +� Q) c _ L � .�� U Ln E ^ ^' Ln ' QJ Z3 fu i Li O Q 1 E C N M V _0 L rp O . �_^ -0 N H Ln fo > a- V1Lnf6 O a, O Q Z O>� 0 V O O rp Q O o -0>� 0 Z O >, ca X01 Q 0 Q to U U rp 0 Ln MX N Q = .- = U i iLn 0 C Q i N Q S 4- o 0 o �1 rB r6 c +, Q in O O +, 0, a� Ln o Ln Via, Z3 41 �o�> *�O_0 Ln Z3 Ln C X i Q) i f6 Efa ,U O O i : Ln .C_ Ln n � a� LLn �� -0 sem° �o >a� �0 >a,Ln�V)V) c41 Ln U c Q 2 ca Q 0 M N Ln v E i cn O i 0 V O 0 L,+, Q cn v rp O >> C i Q O C Q 0 0 0 Ln 41 O Q)0 O H Q�, � �� �� w 0 = E DL L fu Ewa'`^ ��W °'`�Q �� -0 X Q � 0) El v v 3 Z3O a)41 01 � O +' +- ca E -0 >� >% � s V in 0 fu � 41 N Q) O n O d C O (Ln 6 ++ f6 n .X } ) N f6 a) M. - o — m Q D4.- Q) u C: a �� NO IM. r. no ism MINIS 12EPRPW— i AN& .P.I A. 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P.13 as amended (the "Act") provides that as a condition of development, redevelopment or approval of a plan of a plan of subdivision, the Council of a municipality may require land in an amount not exceeding, in the case of land proposed for development or redevelopment for commercial or industrial purposes, two percent and for all other cases five percent of the land be conveyed to the City for park or other public recreational purposes; (42 (1), 51.1 (1)) AND WHEREAS the Act permits an alternative requirement with respect to land for residential purposes, of dedication at a rate of one hectare for each 300 dwelling units proposed subject to specific policies with respect thereto being set forth in the city's Official Plan; (42 (3), 51.1 (2), 53 (13)) AND WHEREAS the Act permits the Council of a municipality to require the payment of money to the value of land in lieu of the conveyance of land; (42 (6), 51.1 (3)) AND WHEREAS the Act permits a maximum rate of one hectare for each 500 dwelling units under the money in lieu of land calculation. (42 (6.0.1), 51.1 (3.1)) KITCHENER 273.1 JULY 2017 Page 288 of 917 PARK DEDICATION Article 1 PARK DEDICATION 273.1.1 - Definitions Adaptive Re -use — alteration or change of use of an existing building or structure to some other use or alteration or change of an existing building or structure to create new residential units. City — means the geographic area under the jurisdiction of the Corporation of the City of Kitchener, or the Corporation of the City of Kitchener, as the case may be. Consent — means the development approval for which the process is set out in section 53 of the Planning Act, and includes severances. Convey — to transfer an interest in land. &A Council — means the Council of the City. Development — the construction, erection or placing of one or more buildings or structures on lands, or an addition or alteration to a building or structure that has the effect of substantially increasing the size or usability thereof. Director of Parks and Cemeteries — means an officer or employee of the City who: Holds the position of the Director of Parks and Cemeteries or comparable position; Holds a successor position at the City with responsibility for subject matters similar to those of the Director of Parks and Cemeteries; or, iii. Acts in place of either of the foregoing. Dwelling Unit — any property that is used or designed for use as a domestic establishment in which one or more persons may sleep and prepare and serve meals. Flood Plain Conservation Lands — land reserved for the use of maintaining regional flood capacity as outlined by the Grand River Conservation Authority. Gross Floor Area - the aggregate horizontal area measured from the exterior faces of the exterior walls of all storeys of a building (excluding any portion of a storey devoted exclusively to parking) within all buildings on a lot. Legalization of existing dwelling units — the City process in which a new building permit is obtained for existing residential units that are not legally recognized under Building Division records. Mixed use — a building with at least one dwelling unit and a non-residential use. Multi -Unit — a building containing two or more non-residential uses within two or more separated spaces for lease or occupancy. A multi -unit building shall be managed and operated as one unit with shared on-site parking. A multi -unit building shall not include a mixed use building. Natural Heritage Conservation — the use of land, water, and/or structures for the protection, management, and conservation of the natural heritage system. Natural heritage conservation may include the preservation, KITCHENER 273 JUNE 2022 Page 289 of 917 PARK DEDICATION maintenance, sustainable utilization, restoration, and/or enhancement of the natural environment, and may include forest, fish, and wildlife management. Owner — the Registered Owner(s) of the property upon which the development of redevelopment is being undertaken. Park land — includes land for parks and other public recreational purposes. Planning Act — means the Ontario Planning Act, R.S.O. 1990, c. P.13, as amended. Redevelopment — the removal of buildings or structures from a site and the construction or erection of other buildings or structures thereon, including adaptive re -use. Site Plan — means the development approval as described in section 41 of the Planning Act. Stormwater dedicated areas — land dedicated, designed and engineered for the purpose of stormwater management. .. k Subdivision — means the process for subdividing land that is set out in section 51 of the Planning Act. AMMIMW 273.1.2 - Development or Redevelopment, Except as provided in this by-law, no person shall development or redevelopment land within the City unless the owner of the land has conveyed or agreed to convey land to the City in the amount or amounts as calculated set out in this By-law. isommmumbl, 1101111W As a condition of development or redevelopment of land within the City of Kitchener, the owner shall convey to the City land for park or other public recreation purposes. In addition to the conditions within this by-law, exemptions and reductions shall also be enacted through the Park Dedication Policy and as follows: a) Where the development or redevelopment land use is Residential, then: Land will be taken at Consent, in the amount of 5% of the total land being developed or redeveloped; Land will be taken at Subdivision in the amount of 5% of the total land being developed or redeveloped, or one (1) hectare for each three hundred (300) dwelling units proposed, whichever is greater; or Land will be taken at Site Plan in the amount of 5% of the land being developed or redeveloped, or one (1) hectare for each three hundred (300) dwelling units proposed, whichever is greater. b) Where the development or redevelopment land use is Institutional, then land will be taken at a rate of 5% of the total land being developed or redeveloped. c) For land being developed which is not proposed for land use as Residential or Institutional, then where it is being developed or redeveloped, land will be taken at a rate of 2% of the total land being developed or redeveloped. d) Where the Director of Parks and Cemeteries determines cash -in -lieu of park land is applied to the above alternative residential rates, one (1) hectare for each five hundred (500) dwelling units proposed is the maximum rate. KITCHENER 273 JUNE 2022 Page 230 of 917 PARK DEDICATION 273.1.3 — Calculating Park Land ?73.1.3.1 — Factors for Calculations The following sets out the criteria of calculating park land or cash -in -lieu of park land dedication as condition of development: a) Where the development land use is Residential, park land dedication as a condition of Site Plan will be based on net proposed dwelling units, with further interpretation as follows: i) Existing dwelling units that are to be retained will not be included in the park dedication calculation. ii) Existing dwelling units that are to be demolished, or have been demolished within five (5) years of the development or redevelopment, from the date of demolition permit issuance to the date of Approval in Principle, will be deducted from the net proposed dwelling units. iii) Legalization of existing dwelling units are considered proposed dwelling units. iv) Additional dwelling units (ADU's) are considered proposed dwelling units. b) Where the development land use is Residential, park land dedication as a condition of Subdivision is determined as follows: i) All land within Plans of Subdivision is eligible for use in calculation of park dedication requirements, less hazard lands, natural heritage features, ecological buffers or any naturalized features that are non -developable or will otherwise be conveyed to the City through other processes. ii) Dedicated stormwater areas are considered eligible land area for use in calculating park dedication within Plans of Subdivision. nit blocks are calculated as follows: In accordance with the number of dwelling units specified within multi -unit blocks on the proposed draft plan of subdivision; and In cases where a specified number of high-density units are not provided on multi -unit blocks within a draft plan of subdivision, the parkland requirement for each block shall be calculated up to the maximum number of units allowed within the density range of each block. c) Where the development land use is Residential, park land dedication as a condition of Consent is determined as follows: i) Park land or cash -in -lieu of land will only be required on newly created development properties. d) Where the development land use is Residential in addition to a non-residential use, park land dedication is determined as follows: KITCHENER 273 JUNE 2022 Page 231 of 917 PARK DEDICATION i) Park land or cash -in -lieu of park land dedication will be applied to each type of use, calculated separately as independent applications and combined to form the total park dedication requirements. e) Where the development land use is Commercial, Industrial and Institutional, park land dedication is determined as follows: i) In the event of development or redevelopment of commercial or industrial lands, dedication will be based on the percentage of new net gross floor area (proposed GFA less demolished GFA) to the total gross floor area (proposed GFA plus retained GFA), applied to the maximum required dedication (2%) f) Where there is discrepancy in the development land use, the land zoning shall be used to determine park dedication requirements. 273.1.3.2 – Exemptions or Rk-Onctions ;V1%L In addition to the exemptions and reductions within this by-law, exemptions and reductions shall also be enacted through the Park Dedication Policy. No conveyance or additional conveyance of park land dedication or cash -in -lieu of park land dedication will be required for the following: a) If land has been conveyed or is required to be conveyed to a municipality for park or other public purposes or a payment in lieu has been received by the municipality or is owing to it under this section or a condition imposed under section 51.1 or 53, no additional conveyance or payment in respect of the land subject to the earlier conveyance or payment may be required by a municipality in respect of subsequent development or redevelopment unless: there is a change in the proposed development or redevelopment which would increase the density of development; or land originally proposed for development or redevelopment for commercial or industrial purposes is now proposed for development or redevelopment for other purposes. exemptions listed in subsection (a), previous conveyances in either park land ation or cash -in -lieu of park land dedication deducted from current park dedication lation. Cash -in -lieu of land deductions will be based on the land that was required and converted to cash value at the time of dedication. b) Replacement of an existing commercial or industrial building equal to or less than the existing gross floor area. c) The proposed use is a temporary sales centre as defined in the Zoning By -Law 2019-051. KITCHENER 273 JUNE 2022 Page 232 of 917 PARK DEDICATION 273.1.4 — Conveyance of Park Land or Cash -in -Lieu of Park Land 273.1.4.1 — Conveyance and Acceptance of Land In addition to the conditions of conveyance and acceptance of park land dedication within this by-law, conditions of conveyance and acceptance shall also be enacted through the Park Dedication Policy. a) Lands conveyed to the City of Kitchener pursuant to this By-law shall be conveyed: i) Free and clear from all encumbrances; and, ii) In a condition deemed satisfactory by the Director of Parks and Cemeteries and in accordance with the requirements of the City's Official Plan, Park Dedication Policy, Development Manual and other City policies related to the acquisition of real property. * '44NOW b) The Director of Parks and Cemeteries retains the right to not accept the conveyance of land that is considered unsuitable, including: 'IV i) Environmental lands, including but not limited to: i. Natural Heritage Conservation lands; ii. Cultural Heritage landscapes and corridors; iii. Stormwater dedicated areas; iv. Flood Plain Conservation Lands; 7W v. Woodlots; NkAmw vi. Streams, creeks or wetlands; and/or, vii. Steep or unstable slopes. ii) Contaminated or suspected of being contaminated; Any land having unsuitable or unstable soil conditions for intended recreation facilities; Hydro rights -of -ways or easements; Privately built, owned and operated recreational areas; and/or, Any portion of land that would serve a purpose that is contradictory for the intended use as public park land. c) Notwithstanding 273.1.5.1.a, the City may at its sole discretion, under special circumstances and as directed by the Director of Parks and Cemeteries or designate: i) Accept environmental lands as a means for protection of the natural amenity or for potential use as a passive recreational and educational feature; ii) Accept lands that have been disturbed, filled, stripped, or containing debris by any other means, provided the Owner undertake restoration of the land to the satisfaction of the City and at the Owners cost; KITCHENER 273 JUNE 2022 Page 233 of 917 PARK DEDICATION iii) Reduce the park land or cash -in -lieu of park land dedication requirement for privately built, owned and/or operated spaces that are publicly accessible without restriction to the public, in accordance with the requirements set out in the City's Park Dedication Policy as amended; iv) Accept suspected contaminated lands provided due diligence in environmental analyses is completed, submitted to and accepted by the City at the sole discretion of the Director of Parks and Cemeteries, including but not limited to: i. Phase I Environmental Site Assessment (ESA) per CSA -Z768 (current revision); ii. Phase II ESA as per CSA Z769 (current revision); and/or iii. Minister's acknowledgement of a Record of Site Condition. v) Accept land that is outside of the development limits within the boundaries of development, as set out in the Park Dedication Policy. d) Any legal and administrative costs associated with the conveyance of land shall be the responsibility of the Owner. e) Any requirement to convey land to the City for park or other recreational purposes is fulfilled when the City accepts the conveyance. 273.1.4.2 — Cash -in -Lieu of Land u In addition to the conditions of cash -in -lieu of park land dedication within this by-law, conditions of cash -in - lieu of park land dedication shall also be enacted through the Park Dedication Policy. Where the Director of Parks and Cemeteries determines cash -in -lieu of park land dedication is required, the following criteria apply: "'._ ANO a) Land value for purposes of cash -in -lieu of land conveyance shall be based on valuation rates determined by an accredited appraiser (AACI) for the specified classes of land. This schedule is referred to under Appendix "A". b) In the event there is a discrepancy, challenge of the accredited values or a development that is not of a type set out Appendix `A', the Owner may obtain an appraisal of the land prepared " by an accredited appraiser with the Appraisal Institute of Canada (AACI) and in accordance with the City's terms of reference, with costs paid for by the Owner. The City may: i) Accept the appraisal; or, ii) Require a peer review, paid for by the City to confirm appraisal valuation. c) The market value shall be fixed in accordance with the appraisal obtained by the City. d) All cash -in -lieu of land dedication requirements must be received and paid into a special account administered by the City of Kitchener. e) Deferral of cash -in -lieu of park land dedication may be pursued at the discretion of the Director of Parks and Cemeteries, as set out in the Park Dedication Policy. KITCHENER 273 JUNE 2022 Page 234 of 917 PARK DEDICATION 273.1.4.3 — Timing Park land conveyance, or the payment of cash -in -lieu of land for any development or redevelopment shall be received by the City prior to the following, at the City's discretion: a) Issuance of the first building permit for the proposed development or redevelopment, in accordance with Section 42 of the Planning Act; b) Approval of Plan of Subdivision or Condominium, in accordance with Section 51 of the Planning Act; or, c) Consent being granted, in accordance with Section 53 of the Planning Act. 273.1.5 — Transition 4ek Notwithstanding anything else contained in this by-law, a development or redevelopment shall not be subject to the parkland dedication requirements set out in this by-law and shall be instead subject to the parkland dedication requirements set out in By -Law 273 where the following has occurred in relation to the development or redevelopment: a) On the day before the effective date, pursuant to the Planning Act, a complete application has been submitted for one or more of the following: , i) Official Plan Amendment; ii) Zoning By-law Amendment; iii) Site Plan; iv) Vacant Land Condominium; v) Subdivision; or vi) Consent; and, "` T"_ -ame development or redevel effective date of the by-law: t has received one of the following within 12 months Final Site Plan Approval; Draft Plan approval for Subdivision; Draft plan approval Vacant Land Condominium; or, Provisional Consent. c) Notwithstanding anything contained this section, if an application set out in subsection (a) is appealed to the Ontario Land Tribunal, then the 12 month period set out in subsection (b) shall be suspended for the duration of said appeal until all of such appeal(s) have been withdrawn or finally disposed of, whereupon the 12 month period shall resume. KITCHENER 273 JUNE 2022 Page 235 of 917 PARK DEDICATION Article 2 EFFECTIVE DATE AND REPEAL 273.2.1 - Administration and Appeal This By -Law shall come into force and effect on the day that it is passed. The administration of this By -Law and the determination of the application of this By -Law is hereby delegated by Council to the Director of Director of Parks and Cemeteries. AN& 273.2.2 — By-law - previous - - By-law 2008-93 and the contents of Chapter 273 will be repealed on the effective date: KITCHENER 273 JUNE 2022 Page 236 of 917 PARK DEDICATION Appendix'A' Land Valuations Effective Date: June 20, 2022 Category Applicable Built Form $ per Acre $ per Hectare Retail/Neighbourhood N/A $1,550,000 $3,830,000 Commercial Industrial N/A $750,000 $1,853,000 Employment / Office N/A $950,000 $2,348,000 Residential — Lots Individual lots, including: $11,000 $36,080 • Single detached (per linear foot) (per linear meter) • Semi detached • Townhomes Residential - Low Density Subdivision, including: $950,000 $2,348,000 • Single detached • Semi detached • Townhomes Residential — Medium (<2 FSI) Cluster townhouse $1,550,000 $3,830,000 Stacked townhouse Quad units Residential - Medium, Mixed Use N/A $2,400,000 $5,931,000 (<2 FSI) Residential - High, 5-10 FSI N/A $8,000,000 $19,768,000 Residential - High, 10+ FSI N/A $17,500,000 $43,243,000 Minimum Update Required: June 20, 2023 Maximum Update Required: June 20, 2024 KITCHENER 273 JUNE 2022 Page 237 of 917 1 KiTci��vER PARK DEDICATION POLICY 1 General The Planning Act authorizes municipalities to require the conveyance of land for park or other public recreational purposes as a condition of development, redevelopment or approval of a plan of subdivision. The City of Kitchener enacts this tool through the Park Dedication By-law, Chapter 273. The By -Law provides the City's specific application of the Planning Act conditions, including interpretations, exemptions and requirements of conveyances. The Park Dedication Policy guides the application of the by-law tool, allowing for additional clarity in processes and strategic direction as approved by Council. 2 Principles Aft - The following principles of park dedication shall be followed when applying dedication requirements to development alications: 1. All development impacts the communities living and working in Kitchener. Public park space is intended for use by all communities in Kitchener, whether living or working in the City, and is vital to supporting complete communities. Public park space is focused on areas where public use and "access to it is the highest need — typically in residential areas. As a result, all development should "contribute toward the provision of public park space, but the nature of some development should contribute more significantly. 2. Park land will be evaluated based on a metric of square meters per resident, which both targets and policy guidelines will unify under. 3. In all circumstances parkland dedication in the form of land is preferred over alternative forms of dedication, such as cash in lieu of land; a. Plans of subdivision must yield developable land for park purposes with no constraints to active park use and the provision of park facilities, unless otherwise determined by the City of Kitchener b. Infill development, or development within identified park land deficient communities, must make every effort to provide public park land where park land is deemed necessary by the City of Kitchener. Page 238 of 917 3 Interpretations Park Provision For the purposes of this policy, interpretation is required to convert Planning Policy from a provision of hectares per residential unit to square meters per resident. Refer to the chart in Appendix `A' to calculate projected park provisions within a variety of development and application types. Where residential units cannot be defined, the average persons per household within the City of Kitchener will be used. Park Land A park is defined as land that is reserved or used for public recreation, leisure, environmental protection and ecological function. For the purposes of this policy, parks are Planned Parks that are publicly owned, managed, and constructed with intent to serve as a recreational amenity. Other forms of park land are recognized as follows: 'V41,1W 1. Natural lands, hazard lands and environmentally significant lands: Lands that may include the preservation, maintenance, sustainable utilization, restoration, and/or enhancement of the natural environment, and may include forest, fish, and wildlife management. The City supports conveyance of these lands to public agency ownership and management to ensure and secure their permanent protection. These lands should be protected for the primacy of natural protection and biodiversity, and they should not be considered primarily for public use and recreation. As such, these lands are not considered eligible for park land dedication. 2. Privately Owned Public Space (POPS. AX Privately built, owned and either privately or publicly operated outdoor recreational amenities. The lands are held in private ownership, with capital asset management and renewal privately determined. Public access without restriction is required to be considered a public space. POPS are considered additional to a basic level of provision of public parks. The City recognizes the value of POPS in addition to public park space where no alternative option exists, and may provide credit towards the park land dedication requirement. 3. Strata parks: Publicly owned park spaces located on top of buildings or structures, including but not limited to parking garages. Land ownership is horizontally delineated between the structure and the surface. These spaces can serve park values, but overlay infrastructure which adds significant complexity to long term use and management. The City does not current consider public park use over infrastructure as contributing toward Parkland Dedication. 4. Other Open Spaces Page 239 of 917 Cities consist of a wide variety of public open space that contribute toward quality of life and complete communities. Spaces such as urban plazas, pedestrian first streets, enhanced boulevard spaces etc., can all contribute toward livable communities. These are all valued within a diverse and complete urban environment. However, these contribute over and above a basic provision of publicly owned and managed parkland spaces. Parkland Dedication is not considered appropriate 4 Exemptions, Reductions & Limitations Exemptions In addition to exemptions listed under Chapter 273.1.3, the following properties to be developed by, on behalf of, and for the use by are exempt from park dedication requirements: 1. The City of Kitchener 2. The Region of Waterloo 3. Kitchener -Wilmot Hydro, or successive electrical distribution organization 4. Publicly funded school boards operating within the City of Kitchener Post -secondary institutions Public hospitals as defined under the Public Hospitals Act; Notwithstanding the conditions of park land dedication under Chapter 273.1.2. and 273.1.3.1, all non- residential developments are exempt from park dedication requirements. Reductions 14 loorw Notwithstanding the Park Dedication requirements under Chapter 273, Council strategic reductions will apply as follows: MOM, dMMMLOWa.,- IMM. 1. Proposed development recognized by the City of Kitchener as Affordable Housing shall be reduced ',asfollows: i. Supportive housing initiatives —100% reduction ii. Affordable rental housing under CMHC definitions of monthly rent equal to or less than 80% of the average monthly rent of the regional market, and registered with the City as such for a minimum of 15 years - maximum park dedication 5% of the land area Accessory Dwelling Units (ADU) will be excluded from park dedication unit calculations. In cases where developments are strictly for the installation of an Accessory Dwelling Unit, they will be exempt from park dedication requirements. Proposed privately built, owned and/or operated spaces that are publicly accessible without restriction, may be eligible for park land dedication reduction up to 25% of the total park dedication requirement, as measured by land areas only. Registration of public access easements on title are required to qualify for the maximum reduction. Page 290 of 917 Limitations Notwithstanding the Park Dedication requirements under Chapter 273, strategic limitations will apply as follows: 5 Where land is being taken as a condition of Site Plan Approval, park dedication will be limited to 10% of the total site area. The balance of park dedication is required in cash -in -lieu form. Site specific conditions may yield park land greater than the limit stipulated, to be determined on each development application between the City and Applicant. Where land is being taken as a condition of Subdivision or Site Plan approval, park dedication will be limited to the lesser of 10 sq.m. per resident, or 1 hectare per 300 units. Residential unit conversion methods are referenced in Appendix A. 40ML All cash -in -lieu contributions for residential development will be limited to $11,862 per dwelling unit regardless of the land use category it falls within and specific appraisals submitted on the lands. Park Dedication — La Accepting Land as Park In addition to the acceptance requirements under Chapter 273.1.4.1. and Kitchener's Development Manual Section L, the following criteria apply to accepting park land: 1. Have sufficient public right of way frontage to ensure: a. Unencumbered, barrier free public access from right of way b. Safety and high visibility to ensure maximum natural surveillance from the right of way Meet the overall design, property geometry, drainage, stormwater and topographical requirements of its intended use Subdivision Land as a park dedication requirement will be pursued in all subdivision development. Subdivision applications that submit modifications following Draft Plan of Approval and establishment of park property boundaries will have the Park Dedication requirement re -calculated based on revised residential unit totals. The Developer is responsible for rectifying deficiencies in park supply resulting from the submitted modification. Site Plan Development The City of Kitchener will use the following three -stage criteria to determine if land dedication will be pursued or accepted from an infill development through Site Plan Application process: Stage 1: Either must apply Page 291 of 917 1. Located within any community with a park acquisition priority (Low, Medium, High, Critical, refer to Appendix `B' for the list of community areas); or 2. Development creates a need for park acquisition by reducing the community park provision below the City's average. Stage 2: All must apply 1. The site is suitable for use as public park land, in current or remediated states; 2. Free and clear from all encumbrances, in current or remediated states, unless otherwise deemed acceptable by the Director of Parks and Cemeteries. Stage 3: Recommended 3 must apply: 1. Land connects to existing or planned park or open space system 2. Compliments existing recreational features and assets within the community 3. Land is situated within 500m walking distance of the development or residences it is intended to serve 4. Provide a space for people of all ages, genders, cultures, religions, abilities and incomes 5. Suitable for future community needs and gr owth , ,A& Final determination and acceptance of land through Site Plan review processes is at the discretion of the City at the discretion of the Director of Parks and Cemeteries., --- Off -Site Dedication If a development is to provide land as its park dedication requirement, it is expected to do so within the limits of the development. In applications where land is critical or high needs for park service delivery, dedication of land off-site may be pursued if mutually agreed upon by both the Developer and City of Kitchener. Off-site land must meet the same criteria as identified in Chapter 273.1.4.1, Development Manual Section L and under the Park Dedication Policy, Section 5, unless otherwise approved by the Director of Parks and Cemeteries Off-site land will be considered land area based within the Park Dedication requirement. Off-site land will be considered equal to land provided on-site, regardless of the property's market value. If the total park dedication cannot be met with off-site dedications, the remaining land requirement will apply to the development site and required as an additional cash -in -lieu dedication. Off-site dedication will be pursued at the sole discretion of the Director of Parks and Cemeteries and must establish a direct connection to the impact of the proposed development. Page 292 of 917 6 Park Dedication — Cash -in -lieu Balances In all cases, the City will seek land through Parkland Dedication. Where the maximum land requirement cannot be achieved a blend of land and cash in lieu of land will be sought. Cash -in -lieu will be calculated by the remaining hectares of land required. Park Land Deferrals If development is to be completed in phases, the cash -in -lieu park dedication for future phases may be deferred as set out in a Parkland Deferral Agreement to be registered on title as a separate agreement in addition to the Section 41 Site Plan Agreement. 410101MV 14MMM01k, The following criteria are to be followed if a developer chooses to pursue park land deferrals. All criteria are subject to the discretion and approval of the Director of Planning in consultation with the Director of Parks and Open Spaces: 1. Park land deferrals does not apply to Land dedication 2. The developer must provide rationale and business case for proposed deferral agreement 3. The developer is subject to additional administration fees that are not captured within the Section 41 agreement process 4. The condition of park land dedication within the Site Plan Agreement can only be completed once the developer has received a fully executed copy of the Parkland Deferral Agreement Page 293 of 917 7 Appendix `A' Average Persons per Residential Dwelling Type Source: Statistics Canada, 2021 Census Data Census Subdivision: Kitchener Data Table: Type of Dwelling: Structural type of dwelling and household size (released April 27, 2022) Built Form Residents per Dwelling Unit City-wide Average 2.6 Structural Type of Dwelling: Single -Detached 2.9 Semi -Detached 2.9 Rowhouse 2.7 Apartment, stacked town, flat or duplex 2.3 Apartment, >5 storeys 1.8 Apartment, <5 storeys 1.9 Other, single -attached dwelling 2.4 ■ Page 294 of 917 Appendix `B' City of Kitchener Communities Community Park Acquisition Priority City Comm. Core Critical Civic Centre Critical King East Critical KW Hospital Critical Pioneer Tower East Critical Alpine High Bridgeport West High Doon South High Mill Courtland High Vanier High Central Frederick Medium Centerville Chicopee Medium Grand River North Medium Rockway Medium Rosemount Medium Victoria Park Medium Westmount Medium Brigadoon Low Country Hills East Low Fairfield Low Grand River South Low Heritage Park Low Hidden Valley Low Laurentian West Low Rosenberg Low Non-residential Communities (no priority) Dundee Huron Park South Plains Trillium Industrial Park Trussler Victoria North Community Park Acquisition Priority Auditorium None Bridgeport East None Bridgeport North None Cedar Hill None Cherry Hill None Country Hills None Country Hills West None Eastwood None Forest Heights None Forest Hill None Highland West None Huron South None Idlewood None Laurentian Hills None Lower Doon None Meinzinger Park None Mt Hope Huron Park None Northward None Pioneer Park None Pioneer Tower West None Southdale None St. Mary's None Stanley Park None Victoria Hills None Page 295 of 917 Waterloo Region Home Builders' Association 1!4 04 MAY 2022 Via Email to City of Kitchener Staff <Mark.Parris@kitchener.ca> <Tim.Donegani@kitchener.ca> <Eric.Riek@kitchener.ca> Promoting Building Excellence and Creating Communities in Waterloo Region Since 1946 RE: WRHBA Preliminary Comments to the City of Kitchener, Parkland Dedication Bylaw Update Since 1946, the Waterloo Region Home Builders' Association (WRHBA) has stood as a pivotal key stakeholder in community development and an economic contributor in Waterloo Region. WRHBA member companies have worked to help shape the robust and thriving communities across our municipalities and townships for 75 years. WRHBA member companies construct over 90% of all new residential construction. The residential development construction industry is collectively one of the largest economic engines driving the Regions' economy, creating over 20,500 jobs, 1.3 billion in wages, and 2.3 billion in investment value. The WRHBA welcomes the opportunity to provide input to the City of Kitchener's Parkland Dedication Update by 20 MAY as suggested by city staff. We have assembled a Parkland By -Law Review Working Group to participate in providing feedback. This group is led by Maria Kyveris (PK Custom Homes), WRHBA's immediate past President, a Board Director and Co -Chair of the Kitchener Liaison Development Committee (KDLC). Other members include Jennifer Meader, (Turkstra Mazza Associates), Paul Britton (MHBC), Alex Vandersluis (Schlegel Urban Development), Kevin Muir (Zehr Group). As part of this review, the Working Group reviewed the following information provided by the City: — Park Dedication Update — Consultation with Development Communitv. Home Builders Association. Prepared by, Mark Parris, City of Kitchener, April 6, 2022 — Park Dedication Summary Update, Places & Spaces - Parks Strategic Plan; Released 28 APRIL 22 — Park Land Dedication, Home Builder Request for Info, Email dated, 14 APRIL 22 As a result of our initial review, we offer the following preliminary comments and perspectives for your consideration. 1) We request clarification/confirmation as to how the land values for the various types of development were established. We note that the City intends to apply a flat rate of $11,862 per unit, regardless of the overall density of the proposed development. We request that the City's parkland by-law establish the process for indexing and/or revisiting this rate. 2. Please provide a copy of the City's reserve fund statement for parkland dedication. This will be important in understanding the funding the City currently holds that can be applied to the Waterloo Region Home Builders' Association 1C-625 King St East Kitchener, ON N2G 4V4 B: 519.884.7590 Page 1 Page 296 of 917 acquisition of parkland. This will be particularly helpful in understanding the City's resources, considering that it has acquired only one property since 1984, as indicated in the aforementioned summaries provided by the City. 3) Parkland requirements are to be based on the Planning Act which does not recognize a dedication requirement based upon bedrooms as is proposed. A per bedroom requirement is contrary to objectives of building affordable family apartment units in intensification areas. Staff should clarify the various proposed parkland dedication rates by building typology which align with the Provincial framework of 1 hectare per 300/500 units. Unit densities referenced in the By-law should be informed by census data and updated with each new census. 4. The City should establish a formula for situations in which a combination of land and cash -in -lieu of land are required. The formula should be in accordance with the Planning Act. There should not be an arbitrary cap on POPS or stratified parks to be considered for parkland dedication purposes if the parkland areas are open/available to the public and particularly if they are maintained by a condo corporation or entity other than the City, thereby limiting the City's liability and maintenance costs. Instead, these alternative forms of parkland should be granted 100% credit. Given affordability issues and land scarcity, and given that these parks will function the same as typical public parks, innovative solutions are required and should be encouraged by the City. Flexibility and creativity is required by all stakeholders to ensure that parkland can be delivered effectively and in balance with the provision of affordable housing solutions. 6) The parkland dedication by-law must clearly indicate the process for off-site parkland dedication and that such an approach is strictly on a voluntary basis. 7) The parkland dedication by-law should recognize that payment can be made at multiple stages of development, including in accordance with sections 51.1 and 53 of the Planning Act, with different valuations as a result. 8) There needs to be a dispute resolution process should there be disagreement regarding the valuation amount. The process should include a valuation by (a) qualified appraiser(s). 9) There should be an amendment to the Official Plan, allowing for credits on parkland dedication for sustainability features, pursuant to subsection 42(6.2) of the Planning Act. This would better balance parkland objectives with climate change objectives. 9) Consideration should be given to the value of open space lands and trails conveyed to the municipality with the value or area of land offset against parkland dedication. Furthermore, only developable portions of land that are subject to an application should be included in the lands considered for parkland dedication. In other words, non -developable lands should be netted out of the area that is subject to the parkland dedication calculation. 10) We understand that the City is proposing to prepare the second component of its parkland strategy, to be entitled "Places", after the parkland dedication by-law has been passed. We also understand that Places will identify the amount and general location for future parkland acquisition. As you know, the parkland dedication by-law is now appealable, given recent Waterloo Region Home Builders' Association 1C-625 King St East Kitchener, ON N2G 4V4 B: 519.884.7590 Page 2 Page 297 of 917 amendments to the Planning Act, which amendments also require that the parkland dedication by-law be supported by a parkland strategy. These amendments to the Planning Act place the parkland dedication regime under higher scrutiny than previously and suggest that a heighted degree of justification is required in support of a municipality's parkland acquisition program. Accordingly, it is imperative that the Places plan be fully completed in advance of the passing of the parkland dedication by-law. Places will justify the by-law, and at the same time, the by-law will implement Places. 11) Furthermore, given the need to fully ground the parkland acquisition program in the City's comprehensive parkland acquisition strategy, we would highly recommend that the strategy and resulting by-law emulate the development charges process. More specifically: a. Population and employment forecasts and land use designations should be applied to generate the future amount of parkland required. Reserve funds should be accounted for. c. Future development should not have to subsidize (increase) parkland per person for existing residents/uses. d. Secondary plans that clearly indicate the areas designated for parkland development should be expressly accounted for in the parkland acquisition strategy. e. For intensification, the City should identify specific lands needs and locations for parkland acquisition. f. The land or cash -in -lieu thereof that is acquired for new development should be fixed according to the above calculation. The WRHBA thanks the City for its consideration of these comments and concerns. We would welcome the opportunity to discuss these issues with staff further prior to the passing of the proposed parkland dedication by-law. Sincerely, WATERLOO REGION HOME BUILDERS' ASSOCIATION Maria Kyveris, P. Eng Chair, Parkland Dedication Working Group maria.kvveris@roRers.com cc: Parkland Dedication Working Group WRHBA Board of Directors WRHBA Municipal Liaison Chairs WRHBA Member Companies 41__;� E �_ - Marie Schroeder Executive Officer Marie-schroeder@wrhba.com Waterloo Region Home Builders' Association 1C-625 King St East Kitchener, ON N2G 4V4 B: 519.884.7590 Page 3 Page 298 of 917 J KiT�NER May 26, 2022 Via email to the Waterloo Region Home Builders Association (WRHBA) Attn: Marie Schroeder (marie-schroedera-wrhba.com) Maria Kyveris (maria.kyverisa-rogers.com) Mark Parris, Landscape Architect Infrastructure Services Department Parks and Cemeteries Division Kitchener Operations Facility 131 Goodrich Dr. Kitchener, Ontario Canada, N2C 2E8 (519) 741-2600 ext 4397 Mark. Parris (ED kitchener.ca Re: WRHBA Preliminary Comments to the City of Kitchener, Parkland Dedication Bylaw Update On behalf of the project team at the City of Kitchener, thank you for submitting thorough and comprehensive commentary on the proposed Parkland Dedication By -Law and Policy. The efforts of the WRHBA working group leaders and members are appreciated and valued through this updating process. Following review of the submitted comments we are able to respond to each as follows: 1. We request clarification/confirmation as to how the land values for the various types of development were established. We note that the City intends to apply a flat rate of $11,862 per unit, regardless of the overall density of the proposed development. We request that the City's parkland by-law establish the process for indexing and/or revisiting this rate. Response: Land values have been determined by an independent AACI approved appraisal company (Antec) and are relevant to March, 2022. The revised By -Law commits the City to a regular review period of not less than 12 months to no more than 24 months. The City does not intend to index between property value reviews. This approach will ensure that the land values and land use categories remain reflective of market and that the cap rate fluctuates both up and down as market changes; the cap rate is indexed to the land use category of medium -density residential. 2. Please provide a copy of the City's reserve fund statement for parkland dedication. This will be important in understanding the funding the City currently holds that can be applied to the acquisition of parkland. This will be particularly helpful in understanding the City's resources, considering that it has acquired only one property since 1984, as indicated in the aforementioned summaries provided by the City. Response: The current Parkland Reserve balance is $8,600,000 as of May 25, 2022. It is noted that the Planning Act provides for the use of parkland dedication toward both the acquisition of new land, and the reinvestment to address growth pressures, in existing park space. Traditionally the City has allocated the majority of parkland dedication toward improvement of existing park spaces. This direction is recommended to change with the approval of the Spaces plan which establishes a new policy around investing parkland dedication to address priority areas identified in the plan. Page 299 of 917 3. Parkland requirements are to be based on the Planning Act which does not recognize a dedication requirement based upon bedrooms as is proposed. A per bedroom requirement is contrary to objectives of building affordable family apartment units in intensification areas. Staff should clarify the various proposed parkland dedication rates by building typology which align with the Provincial framework of 1 hectare per 300/500 units. Unit densities referenced in the By-law should be informed by census data and updated with each new census. Response: The proposed By -Law commits to collecting parkland at or below the Planning Act maximum alternative rates. The cap rate identified is based on land values and will be at or below the Planning Act maximum of 1:500, with the ratio of hectares per residential unit decreasing as land values exceed the cap. Within greenfield/subdivision, the By -Law and Policy reflect a commitment to collect land at the lesser rate of 1:300 (as per the Planning Act), or 10 square meters of parkland per person (the current City wide average provision and proposed City wide target). The requirement of park land will not exceed the maximum limits as set out in the Planning Act. In calculating the average parkland provision, the City relies on the most up to date census data (2021 currently), forecasts needs based on provincial growth targets, and uses relevant occupancy averages for the City (Kitchener census subdivision). 4. The City should establish a formula for situations in which a combination of land and cash -in -lieu of land are required. The formula should be in accordance with the Planning Act. Response: This will be addressed within the updated By -Law and Policy. Where the maximum land requirement cannot be achieved a blend of land and cash in lieu of land will be sought. Cash -in -lieu will be calculated by the remaining hectares of land required. This is in accordance with the Planning Act. 5. There should not be an arbitrary cap on POPS or stratified parks to be considered for parkland dedication purposes if the parkland areas are open/available to the public and particularly if they are maintained by a condo corporation or entity other than the City, thereby limiting the City's liability and maintenance costs. Instead, these alternative forms of parkland should be granted 100% credit. Given affordability issues and land scarcity, and given that these parks will function the same as typical public parks, innovative solutions are required and should be encouraged by the City. Flexibility and creativity is required by all stakeholders to ensure that parkland can be delivered effectively and in balance with the provision of affordable housing solutions. Response: The City, as with municipalities across Ontario, disagrees. The value of POPS that remain privately owned and are subject to future ownership and management beyond the control of the City, is less than land which is owned and maintained in the public interest. Future maintenance costs are addressed by the tax base, and therefore private maintenance of a public asset is not in the best interests of the wider community. Strata parkland is a relatively new approach to open space provision. Strata parks over other infrastructure forms, often parking garages and other underground spaces, have their asset lifespan determined by elements such as waterproof membranes. The accessibility of the parkland, need for renewal and replacement is dictated to by underground infrastructure. In addition to the risk posed to Page 2 of 6 Page 290 of 917 assets by underlying infrastructure, the use, maintenance and replacement of surface infrastructure is often constrained by the underlying land use. Ultimately both POPS and Strata parks carry significant risk to permanent long term public use and so cannot be considered equal to publicly owned assets free from private encumbrances. However, these spaces do provide some parkland benefit to the public. In alignment with other municipalities, the City's By -Law proposes that these can be considered as part of a holistic approach, represented as a deduction to parkland dedication requirements. 6. The parkland dedication by-law must clearly indicate the process for off-site parkland dedication and that such an approach is strictly on a voluntary basis. Response: Agreed; off-site parkland dedication will be brought forward as an optional tool within the Planning Approval stages with two willing parties required (City and Developer). It is the intent of the policy to provide a potential benefit to both Developer and City to achieve a shared vision of a complete community and possibly distinct financial value to the Developer. 7. The parkland dedication by-law should recognize that payment can be made at multiple stages of development, including in accordance with sections 5 1. 1 and 53 of the Planning Act, with different valuations as a result. Response: Agreed; the revised By -Law and Policy will reflect existing practice to offer deferred and staggered payments of parkland dedication. Such agreements will be entered into, where the City agrees it is appropriate to do so, only at the request of the Developer. 8. There needs to be a dispute resolution process should there be disagreement regarding the valuation amount. The process should include a valuation by (a) qualified appraiser(s). Response: Agreed; this will be addressed within the updated By -Law and Policy, and a continuation of the current Policy. In any instance where a developer wishes to an independent appraisal of the land may be undertaken. Parkland dedication will be collected at a revised rate if the appraisal determines that the underlying land valuation applied by the City are too high. 9. There should be an amendment to the Official Plan, allowing for credits on parkland dedication for sustainability features, pursuant to subsection 42(6.2) of the Planning Act. This would better balance parkland objectives with climate change objectives. Response: There will be no credits or reductions applied for parkland dedication beyond those established with the parkland dedication By -Law and Policy. This issue can be considered through the next Official Plan review, anticipated to start in 2023. Page 3 of 6 Page 291 of 917 10. Consideration should be given to the value of open space lands and trails conveyed to the municipality with the value or area of land offset against parkland dedication. Furthermore, only developable portions of land that are subject to an application should be included in the lands considered for parkland dedication. In other words, non -developable lands should be netted out of the area that is subject to the parkland dedication calculation. Response: The City recognizes that a complete park and open space system is made up of a wide variety of types of land and open space that are beyond the definitions of Local Park. The City will continue the existing practice of working with developers in transferring lands to public parks and open spaces to meet the needs of the wider community, ensure environmental protection and support a connecting system of corridors that support biodiversity. On rare occasions, and only on case-by-case basis, this may lead to credit toward parkland dedication being met partially or fully by the dedication of lands that are not `Local Parks'. However, the focus of the By -Law and Policy is to ensure that local parks are provided to meet the needs of growing communities and so generally speaking, only land that can effectively meet the demands of a local park will be considered for parkland dedication. This is aligned with past practice and practices across Ontario municipalities. Park dedication requirements will continue to be calculated based on the developable area of subdivisions (i.e. excluding the natural heritage system). 11. We understand that the City is proposing to prepare the second component of its parkland strategy, to be entitled "Places", after the parkland dedication by-law has been passed. We also understand that Places will identify the amount and general location for future parkland acquisition. As you know, the parkland dedication by-law is now appealable, given recent amendments to the Planning Act, which amendments also require that the parkland dedication by-law be supported by a parkland strategy. These amendments to the Planning Act place the parkland dedication regime under higher scrutiny than previously and suggest that a heighted degree of justification is required in support of a municipality's parkland acquisition program. Accordingly, it is imperative that the Places plan be fully completed in advance of the passing of the parkland dedication by-law. Places will justify the by-law, and at the same time, the by-law will implement Places. Response: The Planning Act requires that the City develop, engage and consult on and pass a "Parks Plan" to support the By -Law. "Spaces" forms the City's parks plan. Contrary to the comment provided, Spaces dictates the amount and general location of future parkland needs. "Places" will focus on the development of these spaces to meet community need, but will not address the location, size or form of these spaces. Spaces forms the City's "Parks Plan" as required under the Planning Act. Page 4 of 6 Page 292 of 917 12. Furthermore, given the need to fully ground the parkland acquisition program in the City's comprehensive parkland acquisition strategy, we would highly recommend that the strategy and resulting by-law emulate the development charges process. More specifically: a) Population and employment forecasts and land use designations should be applied to generate the future amount of parkland required. Response This is addressed within Spaces and relies on existing growth estimates and current census data. It will be updated with further growth estimate updates and future census data as needed. b) Reserve funds should be accounted for. Response As is existing practice, these are accounted for and reported on annually through the City's public budget process. Future investment of the parkland reserve will be directed by Spaces and will be subject to full public transparency. The City will meet its reporting obligations under section 42(17) of the Planning Act and O.Reg. 509/20. c) Future development should not have to subsidize (increase) parkland per person for existing residents/uses. Response Agreed; Spaces and the updated By -Law and Policy are forward looking documents and do not seek to address any perceived or real past deficiency in parkland. It uses current deficiencies to target areas of highest need and seeks to maintain the existing City-wide average provision within new developments. The City has introduced a limit to ensure that when taking land, the existing City-wide average provision will not be exceeded. d) Secondary plans that clearly indicate the areas designated for parkland development should be expressly accounted for in the parkland acquisition strategy. Response Secondary plans are relied on to inform parkland acquisitions. However, it is understood that secondary plans are indicative rather than definitive and subject to review and change as development proposals are initiated. e) For intensification, the City should identify specific lands needs and locations for parkland acquisition. Response Agreed; Work following the approval of Spaces will seek to develop property specific evaluation criteria to identify specific properties and areas that could, if available, serve the highest value to meeting future parkland needs. It should be noted that this work must occur outside of the public forum as to not compromise the City's ability to acquire lands at fair market values. Page 5 of 6 Page 293 of 917 f) The land or cash -in -lieu thereof that is acquired for new development should be fixed according to the above calculation. Response The City has proposed a fixed rate for cash -in -lieu of park land on a per unit basis. Park land and cash -in -lieu of park land requirements are directly linked to the provision metrics and community objectives the City establishes in Spaces. Sincerely, Mark Paris, O.A.L.A. (519) 741-2600 ext 4397 mark. parrisa-kitchener.ca cc: Tim Donegani, Senior Planner, City of Kitchener Mike Seiling, Director of Building / Chief Building Official, City of Kitchener Natalie Goss, Manager of Policy and Research, City of Kitchener Rosa Bustamante, Director of Planning, City of Kitchener Niall Lobley, Director of Parks and Cemeteries, City of Kitchener Page 6 of 6 Page 294 of 917