HomeMy WebLinkAboutDTS-08-037 - Park Dedication Policy & By-lawK~TC~-~ivER
Development &
Technics! Services
REPORT
Report To: Development and Technical Services Committee
Date of Meeting: April 21, 2008
Submitted By: Jeffvllillmer, Director of Planning
Prepared By: Jeff Willmer, Director of Planning (519-741-2325)
Alain Pinard, Manager, Long Range & Policy Planning
X519-741-2319)
Ward(s) Involved: All
Date of Report: April 11, 2008
Report No.: DTS-08-037
Subject: - Park Dedication Policy & By-law
RECOMMENDATION:
1. That the Park Dedication By-law Chapter 2l3 of the City of Kitchener Municipal
Code) be repealed and replaced with the Proposed By-law dated April 11, 2008
attached to Report DTS-08-037; and
2, That the proposed policy attached to Report DTS-o8-031 be approved in principle
as the City of Kitchener Park Dedication Policy, with the final policy to be brought
back for approval following completion of land class appraisals; and
3. That staff be directed to obtain appraisals for the classes of land set out in the
proposed policy; and further
4. That the current practice of exempting all Downtown development from park
dedication be reconsidered in the context of the upcoming review of Downtown
development incentives, including those offered under Community Improvement
legislation.
BACKGROUND:
The Planning Act gives municipalities the ability to require that land far park or other public
recreational purposes, or cash in lieu of park land, be dedicated as a condition of subdivision,
severance or site plan approval. The City's official plan contains the necessary policies to
enable the passing of a park dedication by-law and Kitchener has had such a by-law in place for
many years.
The Planning Act establishes limits of 2% of the land or land value for commercial or industrial
development and 5% of the land or land value, or alternatively 1 hectare per 300 dwelling units
proposed, for residential development.
While the City is entitled to require the maximum park dedication as a condition of development
or redevelopment approvals, the proposed policy is intended to give guidance for a fair,
reasonable and consistent approach, given the different circumstances of various development
proposals.
REPORT:
Active Park vs Natural Open Space
.~..
Active park space provides community benefits including social, recreational and health
benefits. The community and Council have clearly stated a desire to maximize the amount of
active parkland that is provided in new neighbourhoods. The proposed policy promotes
maximizing the use of park dedication to obtain land for active park purposes rather than natural
open space (flood plain, woodlot, wetland and wetland buffer, or steep slopes). The past
practice of utilizing the park dedication conditions to negotiate to obtain larger areas of natural
open space is being phased out in favour of using other means to protect, and if necessary
acquire, natural open space. Significant natural open space and appropriate buffers should
always be protected. This would normally occur as a condition of development, and the feature
may either remain in private ownership ar come into public ownership. if it is to come into City
ownership, that may be achieved through negotiation or purchase. Such purchase could be
funded from sources such as the Natural Lands Acquisition Fund as set out in Reports DTS-05-
209 and CRPS-06-033, or the Local Environmental Action Fund (LEAF} as set out in Report
DTS-08-033.
Valuation of Land for cash a ment in lieu of land
In order to determine land value, the City typically pays for an appraisal, paid out of the park
trust fund. Such appraisals can cost between $1,000 and $3,000, and in some cases exceed
the value of the cash in lieu of park land payment. The recommended approach would be
based on generic appraisals far classes of land so that individual site-by-site appraisals are not
required. This is expected to be more efficient as there should be much less frequent use of the
park trust fund to pay for individual property appraisals. If an ownerldeveloper objects to the
applicable rates there is the option far the ownerldeveloper to obtain an appraisal of their
specific si#e to establish the value. The City may accept this appraisal, obtain its own appraisal
or negotiate a mutually acceptable compromise.
Industrial and Commercial Development
The Planning Act and the City's official plan have always allowed for commercial and industrial
development to be subject to the 2% park dedication. However, the City of Kitchener has a
history of not requiring park dedication on commercial or industrial development as an incentive
for economic development. In recent years, in response to changing community priorities
expressed through various means including the Environics Survey, staff have established a
practice of requiring the maximum 2% park dedication as a condition of commercial or industrial
development. The proposed policy would establish Council support for this practice, on the
basis that a healthy community requires sufficient parks to establish a good quality of life, and
this supporks economic development by making our communi#y more attractive to employees
and employers alike.
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Downtown Development
Similarly, when the package of Downtown Development incentives was established in the 1994s
development was exempted from park land dedication or cash in lieu of park land requirements,
as an incentive to attract investment and development in the downtown. We suggest that
discontinuation of this practice be considered when the complete package of Downtown
development incentives is reviewed. Downtown development benefits from provision of parks,
and downtown residents and employees deserve to have parks with appropriate improvements
provided for their use. Cash in lieu of park land dedication payments should be considered to
be a reasonable cost of developing in our Downtown.
Partial Redevelopment or Development where Partial Existing Development is to remain
From time to time development or redevelopment is proposed on a site which has development
that will remain in place. If park dedication has not previously been made, the City is entitled to
require the full 2% or 5% park dedication. However, to be fair and reasonable we are
recommending that park dedication not be assessed against that portion of the site on which
existing development is to remain. For development or redevelopment requiring site plan
approval, the partial payment typically would be documented in the site plan agreement, which
is registered on title and therefore available to potential purchasers and future owners.
Phased Development
In cases of phased development the City is entitled to require that the full 5% or 2% of land be
conveyed. In some cases involving large land holdings, it may be mutually agreeable for the
owner and the City to enter into a parkland deferral agreement for latter phases.
New By-law
The proposed by-law attached would clarify that the rate for commercial development or
redevelopment is 2% and not 5%. A future amendment would be required to eliminate the
exemption for downtown development.
FINANCIAL IMPLICATIONS:
The intent of the recommended approach is to maximize contributions to the park trust fund, but
to be fair and reasonable in recognition of existing development not being redeveloped, and to
limit the expense of appraisal fees by reducing the number of site-specific appraisals at the
expense of the park trust fund.
COMMUNICATIONS:
This report was discussed with the Waterloo Region Homebuilders Liaison Committee on March
14th, the Environmental Committee on March 20th, the Economic Development Advisory
Committee on March 26th and the Downtown Advisory Committee on April 10th. Furthermore,
an early draft and the final version of the report were provided to all local planning consultants.
One written response was received and it is attached as Appendix "C". Additional responses
were provided informally.
Summary of Comments and Analysis
On balance, the response to the draft by-law and policy has been positive. The proposed
changes to the way that cash-in-lieu values are determined are widely supported for the savings
in appraisal costs that will be realized. The Environmental Committee supports the ab~ective of
maximizing opportunities to acquire parkland or cash in lieu.
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Downtown Advisory Committee generally agreed that improved parks and public recreational
facilities add to quality of life in the Downtown, and that as densities increase it will be
increasingly important to provide additional or improved facilities. DAC members commented
on the importance of understanding the complete package of incentives in the context of all
development costs, and cautioned that cash in lieu of 1 hectare per 300 residential units may
amount to a very significant cost. The committee also suggested that a clear commitment to
Downtown Parks, possibly through the Parks and Open Space Master Plan, would help to justify
discontinuing the current exemption.
Some respondents expressed concern with the idea of eliminating the exemption for downtown
development. However, we are not recommending any action on this issue at this time. The
current practice of exempting downtown development from parkland dedication requirements
will be considered as part of a comprehensive review of all downtown incentives at a later date.
Some members of the Economic Development Advisory Committee (EDAC} questioned the
objective of maximizing parkland dedication opportunities in the case of industrial development
without having any information of how Kitchener compares to other municipalities andlor any
information that clarifies how parkland dedication impacts decisions to locate or expand
industrial businesses in the City.
In response to the EDAC comments staff canvassed six municipalities Brantford, Cambridge,
Guelph, Landon, Oshawa, and Waterloo} for information on key industrial development
indicators and it is concluded that Kitchener compares favourably. Six of the seven
municipalities ask for parkland or cash in lieu in the case of most private sector industrial
development. Only the City of London does not collect parkland dedications for industrial
development but this policy is under review. Furthermore, Kitchener has the second lowest
development charge after the London, for private sector, non-residential development.
In consultation with the Economic Development Division it is concluded that the 2% parkland
dedication is unlikely to affect industrial investment decisions because it represents such a small
amount of the total development costs and it is increasingly accepted as part of the cost of
doing business.
C4NCLUSI~N:
The proposed policy is intended to give guidance for a fair, reasonable and consistent approach
to park dedication as a condition of development approval. It may be necessary to revisit the
policy upon completion of the Parks and Open Space Master Plan now under way.
9!/~
mer
re or of Planning
Alain Pinard
Manager, Long Range & Policy Planning
Attachments:
Appendix "A" Proposed By-law
Appendix "B" Proposed Policy
Appendix "C" Comments
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Appendix "A": Proposed By-Law, April 11, 2008
BY-LAW NUMBER
OF THE
CORPORATION OF THE CITY OF KITCHENER
Being a by-law to amend Chapter 273 of The
City of Kitchener Municipal Code regarding Park
Dedication)
WHEREAS the Planning Act, 1990, provides that as a condition of development or
redevelopment of land, the Council of a local municipality may require land in an
amount not exceeding, in the case of land proposed for development or redevelopment
for commercial or industrial purposes, 2 percent and for all other cases 5 percent of the
land be conveyed to the City for park or other public recreational purposes;
AND WHEREAS the Act also 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;
AND WHEREAS the Act also permits the Council of a local municipality to require the
payment of money to the value of land in lieu of the conveyance of land;
AND WHEREAS it is deemed expedient to amend Chapter 2l3 of The City of Kitchener
Municipal Code adopted by By-law 86-191, as amended;
NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as
follows:
1. Chapter 2l3 of The City of Kitchener Municipal Code is hereby deleted and the
following is substituted therefore:
213.1.1
As a condition of development or redevelopment of land anywhere in the City, land in an
amount not exceeding, in the case of land proposed far development or redevelopment
for commercial or industrial purposes, 2 percent and in all other cases 5 percent of the
land shall be conveyed to the City for park or other public recreational purposes, free of
encumbrance and without cost to the City.
273.1.2
As an alternative to the requirement of Section 213.1.1 and, as a condition of the
development or redevelopment of land anywhere in the City for residential purposes,
land at a rate of one hectare far each 300 dwelling units proposed in any such
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development or redevelopment shat{ be conveyed to the City for park or other public
recreational purposes, free of encumbrance and without cost to the City.
273.1.3
The City may require the payment of money to the value of land otherwise required to
be conveyed under Sections 273.1.1 and 213.1.2, in lieu of the conveyance.
273.1.4
Sections 273.1.1, 273.1.2 and 273.1.3 do not apply to the Downtown Kitchener
Community Improvement Area as defined in the Downtown Kitchener Community
Improvement Plan, approved under Section 28 of the Planning Act, 1990.
' day
of , A. D. 2008. DRAFT A ril 11 2D48
Mayor
Clerk
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Appendix "B": Park Dedication Policy
(Draft April 77, 2008)
1.0 General
The Planning Act authorizes municipalities to require the conveyance of land for park or other
public recreational purposes. The amount may not exceed 2% for commercial or industrial
development, and may not exceed 5% for all other development; alternatively, land in the
amount of 1 hectare per 300 residential units may be required. This authority extends to
subdivision approvals, consent (e.g., severance, easement, right-of way), and site plan approval
for the development or redevelopment of land. It is the municipality's option to require cash in
lieu of land.
For residential development the City will require parkland dedication based on 5% or 1 hectare
per 300 residential units, whichever is the greater.
1.1 Active Park and Natural open Space
It is the general intent of the City of Kitchener that where the Planning Act authority is used to
require the dedication of land, that land will be intended for active park purposes, and that other
means be used to protect, and if necessary #o acquire, natural open space.
1.2 Subdivision
In plans of subdivision the City will use the park dedication provisions of the Planning Act
generally for the purpose of obtaining land for active park purposes, but may opt to obtain cash
in lieu of land in limited circumstances.
1.3 Site Plan and Severance
For land severance and site plan approval the City will use the park dedication provisions of the
Planning Act generally for the purpose of obtaining cash in lieu of park land, but may opt to
acquire land in limited circumstances.
2.0 Valuation and Appraisal
Land value for purposes of cash in lieu of park land for plans of subdivision of 4 hectares or
more shall be determined by accredited appraisal, with the cost of the appraisal paid from the
Park Trust Fund.
Land value, for purposes of cash in lieu of park land dedication as a condition of plans of
subdivision less than 4 hectares, or site plan approval, or consentlland severance, shall be
determined at the rates set out in this policy, based on accredited appraisals of classes of land.
!f an owner or applicant wishes to dispute the City's rate, they may obtain, at their own cost, an
appraisal from an accredited appraiser. The City may accept the alternate appraisal, require a
peer review paid from the Park Trust Fund, or negotiate a mutually acceptable compromise.
Land values for the accredited appraisals of classes of land shall be calculated as prescribed
under Sections 42, 51.1 or 53 of the Planning Act, 1990.
Despite the accredi#ed appraisals of classes of land, the City may decide to conduct asite-
specific accredited appraisal for cash in lieu of park land dedication, with the cost paid from the
Park Trust Fund.
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The appraised land class rates shall be adjusted from time to time. Such periodic updated
appraisals for each class of land shall be obtained at intervals not exceeding 5 years.
2.1 Residential Site Plan Approval or Consent Approval
• Street fronting residential: $_ per metre of street frontage, excluding the difference
between minimum side yard abutting a s#reet and minimum interior side yard
• Multiple Residential other than street fronting: $ per hectare
2.2 Residential Subdivision (less than 4 hectares)
• 5% of $„ per hectare
2.3 Commercial, Industrial and Institutional Consent Approval
Park dedication will generally not be required as land division generally does not increase
development potential far commercial, industrial or institutional development.
2.4 Commercial, Industrial and Institutional Site Plan Approval
• Commercial 2% of $~ per hectare
• Industrial 2% of $~ per hectare
• Institutional 5% of $ per hectare
3.0 Exemption & Interpretation
The following principles will be applied to determine exemption from park dedication
requirements:
3.1 If the maximum allowable park dedication has previously been made, no further park
dedication will be required in the even# of development or redevelopment.
3.2 If no park dedication has previously been made, the City will require the maximum
allowable dedication except for the following:
3.2.1 If land is partially developed and the remaining part is to be developed or redeveloped, the
parkland dedication will be based on the total area of the site less that area in which existing
development is to remain. The City reserves the right to collect park dedication fees on future
redevelopment or intensification on that portion of the land on which park dedication was not
assessed.
3.2.2 If land is partially or fully developed and further intensification is to take place the City will
require park dedication on the basis of only the new development, as a proportion of the total
development. For non-residential intensification the dedication will be based on the proportion
of new gross floor area. For residential intensification the dedication will be based on the
proportion of new dwelling units.
3.2.3 The Director of Planning or the Manager of Development Review or the Supervisor of Site
Plan Development shall be responsible for deciding what constitutes new and existing
development if there is a disagreement with the landowner.
3.2.4 Adaptive Re-use shall be considered to be redevelopment.
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3.2.5 If development on particularly large sites is to be phased, the park dedication for latter
phases may be deferred as set out in a Parkland Deferral Agreement to be registered on title, at
the discretion of the Director of Planning in consultation with the Director of Qperations.
3.2,6 If land division does not have the effect of increasing development potential, no park
dedication will be required as a condition of severance, but will be required as a condition of site
plan approval for development or redevelopment of severed andlor retained lands.
3.2.1 If subdivision land includes natural open space, the park dedication will be calculated
based on the area of land included in the plan, net of natural open space.
3.2.8 Council may opt to exempt public sector institutional development, such as Federal,
Provincial or Regional developments, hospitals and universities from park dedication
requirements.
3.2.9 The City will honour development agreements entered into prior to the adoption of this
policy with respect to park land dedication requirements. However, this provision will not apply
to redevelopment or intensification.
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La b recl~ a Pa tiers a n & Ass o cia tes Inc.
Professional Planners, Development Consultants, Project Managers
~a Finail: jeff.wlllme 1#chener.ca
alaln.plnaraf ~Cl#chenerca
March 2~, 2008
Mr. JeffVVillmer, Director of Planning
Mr. Alain Pinard, Manager of Lang Range and Policy Planning
Development and Technical Services Department
City of Kitchener
2~0 King Street West, 8~" Floar
P. o. Box 11 ~ 8
Kitchener, Ontario
N2G 4Gl
Dear Mr. Willmer and Mr. Pinard:
Re: Park Dedlcatlon Polic and B -law
Thank ou for allowing us the opportunity to provide comments on the proposed uPark
Y ~ ~ ' e thorou h and deals with all aspects of the
Dedication Policy and By law' . The proposal ~s qui# g
issue, While we are in agreement with most of the recommendations, afew points require
further consideration. Therefore, we wish to provide the following comments for your
consideration.
1. A park dedication requirement far downtown developments is
new and we believe would discourage such develapments.
Charging a park dedication while gluing other incentives such as
the Development Charges exemption would appear to be
contradictory. The Kitchener Downtownlcore area is currently
experiencing a renewed interest and is attracting development.
In order to keep this momentum going, we would question any
change to current regulations that may impact the progress that
is being made. Similarly, we are not sure if this is the best time
to start charging park dedication far industrial developments
when they are facing extraordinary competition from
externallforeignsOurces. vve believe that the status quo on
industrial lands should be maintained until the economic volatility
of this sector has tempered.
2. The Policy should provide the basis for setting the rates in
Section 3.2.1.
3. Section 2.2 appears to be numbered twice under Policy,
330-A1 Triltiurn Drive, Kitchener, Ontario N2E 3J2 Tei, 519-896-5955 ~ Fax. 519-895-5355
We trust you will take the above paints into consideration in finalizing your report and
recommendations.
once again thank you for providing us the opportunity to comment on the above proposal and
we look forward to receiving a copy of your f nal report.
Yours truly,
Labreche Patterson & Associates I nc.
~~~
Hans Madan, BES, MPA, MC1P, RPP
Associate, Senior Planner
~ ~~~
Scott Patterson, BA, CPT
Principal, Senior Planner
Vi or La ec e, nIICIP, RPP
Senior Principal
HMlgk
Copy: Waterloo Region ~fome Builders' Assocr'ation (WRl-lBA)