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City of Port Colborne. Development Charges Public Meeting August 31, 2009. Public Meeting Purpose. The meeting is a mandatory requirement under the Development Charges Act
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City of Port Colborne Development Charges Public Meeting August 31, 2009
Public Meeting Purpose • The meeting is a mandatory requirement under the Development Charges Act • Prior to Council’s consideration of a by-law, a background study must be prepared and available to the public a minimum 14 days prior to a public meeting • Public meeting is to provide for a review of the DC proposal and to receive public input on the proposed policies and charges
Format for Public Meeting • DCA Public Meeting • Opening remarks • Presentation of the proposed policies and charges • Questions from Council • Presentations by the Public • Close Public Meeting
Study Process • Policy Review and discussions with Staff • Growth forecast • Detailed discussions with staff regarding future needs to service growth (June 11, 2009) • Council Review of DCA Study (July 27, 2009) • Public Meeting (August 31, 2009) • Council Consider By-law for adoption (subsequent to Public Meeting – September 14, 2009)
Development Charges Purpose: To recover the capital costs associated with residential and non-residential growth within the municipality The capital costs are in addition to what costs would normally be constructed as part of a subdivision (i.e. internal roads, sewers, watermains, roads, sidewalks, streetlights, etc.) Municipalities are empowered to impose these charges via the Development Charges Act (DCA) 4
Overview of DCA(simplified steps) • Identify amount, type and location of growth • Identify servicing needs to accommodate growth • Identify capital costs to provide services to meet the needs 5
Overview of DCA(simplified steps) • Deduct: • Grants, subsidies and other contributions • Benefit to existing development • Statutory 10% deduction (soft services) • Amounts in excess of 10 year historic service calculation • DC Reserve funds (where applicable) 6
Overview of DCA(simplified steps) Net costs then allocated between residential and non-residential benefit Net costs divided by growth to provide the DC charge 7
Overview of DCAPolicy Matters Exemptions: • Mandatory exemptions • for industrial building expansions (may expand by 50% with no DC) • May add up to 2 apartments for a single as long as size of home doesn’t double • Add one additional unit in medium & high density buildings • Upper/Lower Tier Governments and School Boards 8
Overview of DCAPolicy Matters Exemptions: • Discretionary exemptions • Reduce in part or whole DC for types of development or classes of development (e.g. industrial or churches) • May phase-in over time • Redevelopment credits to recognize what is being replaced on site (not specific in the Act but provided by case law) 9
Overview of Port Colborne’s Existing DCA Exemptions a board of education; the municipality or local board thereof; The City or a local board thereof; The Corporation of the Region of Niagara or a local board thereof; a non-residential farm building; Downtown Core Area and Main Street Gateway Industrial development on any ft² of GFA over 5,000 ft² 10
20 Year Housing Forecast Source: Historical housing activity (1999-2008) based on Statistics Canada building permits, Catalogue 64-001-XIB ¹Growth Forecast represents start year. 12
Summary of Services Considered City Wide Services: • Roads Services • Public Works Services • Fire Protection Services • Outdoor Recreation Services • Indoor Recreation Services • Library Services • Administration Urban Area Services: • Wastewater Services • Water Services 13
Increased Service Needs Attributable to Anticipated Development
Comparison of Current and Calculated Charges – Commercial/Institutional
Development Charge Rates for Municipalities in the Port Colborne vicinity - Single Detached & Semi Detached Dwelling
Development Charge Rates for Municipalities in the vicinity of Port Colborne - Commercial/Retail DC’s Per Fully Serviced Ft². of GFA
Development Charge Rates for Municipalities in the vicinity of Port Colborne - Industrial DC’s Per Fully Serviced Ft². of GFA
Phasing of Charges Option - • Staff has suggested a phasing of charges option based the following three options: • Option 1: 100% of the calculated rates; • Option 2: a similar phasing schedule as the Region of Niagara Development Charge By-law (passed on July 30, 2009); • Option 3: All Charges phased per Residential and Commercial/Institutional Option 2. 22
Development Charge Phasing Options - % of Calculated Rates 23
Development Charge Revenue Loss per Phasing Options Note: For Industrial, this represents 100% of the gross floor area and does not take into account the existing exemption for industrial development over 5,000 ft² per building permit. 25
Next Steps • Based upon input received from the public, Council will consider adoption of a by-law; • Council will need to decide on: • Discretionary Exemptions: • a non-residential farm building; • Downtown Core Area and Main Street Gateway • Industrial development on any ft² of GFA over 5,000 ft² • Phasing Options: • Option 1: 100% of Calculated Rate • Option 2: Similar Phasing as Region of Niagara • Option 3: All Charges phased per Residential and Commercial/Institutional Option 2 26