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HomeMy WebLinkAboutCRPS-06-122 - Amendment to Development Charge Credit and Refund Agreement with Lyndale Estates Limitedl Krrc~~R - • Corporate Services Report To: Finance & Corporate Services Committee Date of Meeting: August 21, 2006 Submitted By: Fiona M. McCrea, Assistant City Solicitor Dan Chapman, Director of Financial Planning & Reporting Prepared By: Fiona M. McCrea, Assistant City Solicitor Wards} Involved: Ward 2 Date of Report: August 14, 2006 Report No.: CRPS-06-122 Subject: Amendment to Development Charge Credit and Refund Agreement with Lyndale Estates Limited RECOMMENDATION: That the Mayor and Clerk be authorized to execute an Amendment to the Development Charge Credit and Refund Agreement with Lyndale Estates Limited that provides for the collection of development charges on lots within the plans of subdivision owned by Lyndale Estates Limited for which building permits are yet to be issued and remittance of an amount equal to the development charges so collected to Lyndale Estates Limited in lieu of the application of development charge credits upon building permit issuance, on terms and conditions satisfactory to the City Solicitor. BACKGROUND: On March 8, 2004 Council approved an Agreement with Lyndale Estates Limited for the granting of service in lieu credits for the development charges payable within the Lyndale South (30T-97014) and Lyndale North (30T-97015) Plans of Subdivision, an annual reimbursement to Lyndale Estates Limited of $200,000.00 commencing in 2005, and allocating future development charges received from a part of the abutting lands within the Grand River South Pumping Station benefiting area (Plan of Subdivision 30T-00201) all to reimburse Lyndale Estates Limited towards the costs related to the construction of the sanitary pumping station, forcemain and related appurtenances. The Agreement was entered into on or about April 26, 2004. REPORT: City staff have received a request from Lyndale Estates Limited to amend the Agreement to provide for the City collection of development charges on the balance of the lots (being those for which a building permit has not yet been issued) in Plans of Subdivision 30T-97014 and 30T- 97015 and remittance to Lyndale Estates Limited of the development charges collected. Currently, the City allocates development charge credits against the development charges payable for each lot when a building permit is issued to an individual builder in accordance with the City's usual procedure. Lyndale Estates Limited has advised of some difficulty in collecting the equivalent amount of the credit from the individual builders and is requesting the City's assistance by collecting the development charges in the usual fashion and reimbursing Lyndale Estates an amount equal to the credit it is otherwise entitled to from the development charges collected. The process for the Lyndale lands will then be substantially the same as the process the City has in place to reimburse Lyndale from the development charges collected from the abutting lands. Finance and Building staff have reviewed this request and the change to the City's procedures for the allocation of credits and are agreeable to the amendment requested provided Lyndale Estates Limited notifies its builders of the change, a specific date for the implementation of the change is agreed upon and that reimbursement of an amount equal to the development charge credits on plans of subdivision 30T-97014 and 30T-97015 be semi-annually. FINANCIAL IMPLICATIONS: N/A COMMUNICATIONS: This report has been circulated to Finance, Building, Planning and Engineering staff who support the proposed recommendation. Fiona M. McCrea Assistant City Solicitor c.c. Pauline Houston Rob Browning Jeff Willmer Rob Shamess Mike Selling Martina Schneider Ruth-Anne Goetz Dan Chapman Director of Financial Planning and Reporting