G 1-1. Parkland Dedication By law Review Proposed By law Amendments. Council Meeting May 22, Committee of Council Meeting December 2012
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1 G 1-1 Parkland Dedication By law Review Proposed By law Amendments Council Meeting May 22, 2013 Parkland Dedication By law 1. Background 2. Committee of Council Meeting December Development Industry Feedback (BILD) /2013 Survey of GTA Municipalities Results 5. Proposed By law 6. Application of Amended By law 7. Consultation with BILD April Next Steps OPA 1
2 G Background Parkland Dedication By law Review formally initiated in 2008 Initiated given concerns with adequacy of by law to help meet long term parkland service levels Phase 1 completed in late 2011 Amended by law adopted in March 2012 Phase 2 work began in Spring 2012 Further refinement of the by law s wording Further updating of city wide land values for CIL calculations 2. Committee of Council Meeting December 2012 Council expressed concern with CIL rates, as they weren t sufficient to facilitate desired parkland service levels Council wanted to see how Brampton s CIL rates compared with other GTA municipalities Subsequently, staff: Conducted further benchmarking of GTA municipalities in terms of their methodology and per unit rates Consulted with the development industry through BILD Further refined the new draft by law 2
3 G Development Industry Feedback (BILD) BILD s commentary on the December 2012 report included: General acceptance of maintaining by law in current (March 2012) format Concern for Rowhouse rates no variance based on size Desire for credits on private amenity space Concern for any increase on Apartments Desire for work portion of Live Work to be exempt from CIL /2013 Survey of GTA Municipalities: Results Of the responding municipalities (8), Brampton was the only municipality not utilizing Section 42 methodology as the basis of CIL collection Low Density: Section 51 methodology places Brampton at the low end of the scale, below Ajax and Hamilton Medium Density: Brampton s CIL rate is in the midrange of the scale High Density: Brampton has the lowest CIL rate, below that of Oakville and Hamilton 3
4 G /2013 Survey of GTA Municipalities: LOW DENSITY $20, $18, Only for those plans with $16, a mix of both parkland CIL ($) Per Unit $14, dedication and CIL These light blue bars indicate that the CIL is calculated based on site specific appraisals, which varies from property to property $12, Brampton proposed S. 42 methodology (building permit issuance) $10, $8, $6, Brampton S. 51 methodology (draft plan approval) $4, $2, $ /2013 Survey of GTA Municipalities: MEDIUM DENSITY $12, CIL ($) Per Unit $10, Only for those plans with a mix of both parkland dedication and CIL Brampton S. 51 methodology (draft plan approval) $8, $6, $4, $2, Brampton proposed S. 42 methodology (building permit issuance) $ 4
5 G /2013 Survey of GTA Municipalities: HIGH DENSITY $12, $10, Brampton S. 51 methodology (draft plan approval) Brampton proposed S. 42 methodology (building permit issuance) CIL ($) Per Unit $8, $6, $4, $2, $ 5. Proposed By law Move to a Section 42 based methodology, whereby CIL is calculated at time of building permit issuance (rather than at time of draft plan approval) Section 51 will still be utilized for those plans with a mix of both parkland and CIL Select sections have been expanded e.g. Definitions Efforts made to align wording with existing by laws (e.g. DC By laws) 5
6 G Proposed By law Section 42 methodology: In line with all other responding GTA municipalities Would help alleviate the projected CIL Reserve deficit and in turn, improve the capability for the City to reach its parkland service level targets Approach reflects original premise that higher densities (smaller units) should see lesser CIL charges Using site specific appraisals results in a fairer method of calculating CIL 6. Application of Amended By law Plans of Subdivision Scenario 1: No land conveyance 100% CIL taken at building permit issuance ( Section 42 ) Scenario 2: Mix of parkland and CIL CIL taken at registration (Section 51 values) Scenario 3: 100% Land Conveyance = 100% CIL Scenario 4: Over dedication 6
7 G Application of Amended By law Plans of Subdivision Scenario 1: No land conveyance 100% CIL taken at building permit issuance ( Section 42 ) Scenario 2: Mix of parkland and CIL CIL taken at registration (Section 51 values) + Remainder as CIL Scenario 3: 100% Land Conveyance Scenario 4: Over dedication 6. Application of Amended By law Plans of Subdivision Scenario 1: No land conveyance 100% CIL taken at building permit issuance ( Section 42 ) Scenario 2: Mix of parkland and CIL CIL taken at registration (Section 51 values) Scenario 3: 100% Land Conveyance Scenario 4: Over dedication 7
8 G Application of Amended By law Plans of Subdivision Scenario 1: No land conveyance 100% CIL taken at building permit issuance ( Section 42 ) Scenario 2: Mix of parkland and CIL CIL taken at registration (Section 51 values) Scenario 3: 100% Land Conveyance Scenario 4: Over dedication 6. Application of Amended By law Transition Natural transition, as most current plan of subdivision applications include a mix of both parkland dedication and CIL, and would therefore be subject to S. 51 methodology Land valuations to increase in three phases (33% in September 2013, 67% in March 2014 and then, full value in September 2014) All site plan or consent applications will be subject to S. 42 (no change from current methodology) Plans of subdivision will either be subject to S. 42 methodology (where no parkland is conveyed), or S. 51 (where there is a mix of parkland and CIL) 8
9 G Application of Amended By law As of March 2012 As of March 18, 2013 April 2013 (Proposed) $/Acre (Day before Draft Plan Approval) CIL $/Unit $/Acre (Day before Draft Plan Approval) CIL $/Unit Lot Value (Average) (Day before Building Permit Issuance) CIL $/Unit (5% of lot value) Single-Detached Semi-Detached $450 K/ac. $3,706 $550 K/ac. $4,530 Rowhouse $750 K/ac. $6,177 $850 K/ac. $7,000 Apartment $400 K/ac. $3,300 $1,575 K/ac. $5,190 (with 60% reduction) Commercial $850 K/ac. $1,000 K/ac. Institutional $550 K/ac. $600 K/ac. Industrial $550 K/ac. $575 K/ac. 6. Application of Amended By law (if 100% CIL S. 42) As of March 2012 As of March 18, 2013 Proposed (S.42) $/Acre (Day before Draft Plan Approval) CIL $/Unit $/Acre (Day before Draft Plan Approval) CIL $/Unit Lot Value (Average) (Day before Building Permit Issuance) CIL $/Unit Single-Detached 35 ft = $192,500 $9,625 Semi-Detached $450 K/ac. $3,706 $550 K/ac. $4, ft = $125,000 $6,250 Street Town 20 ft = $120,000 $6,000 Block Town $750 K/ac. $6,177 $850 K/ac. $7,000 1ha/300 units $6,000 Apartment $400 K/ac. $3,300 $1,575 K/ac. Commercial $4,500 (with 65% discount) Max. 10% of land value $3,500 Minimum $3,500 per unit Institutional Site-specific calculation Industrial 9
10 G Application of Amended By law (if 100% CIL S. 42) Example 1: Block Towns 100 units on 4 acres, valued at $1.5M per acre Before Discount 100 units/300 = 0.33ha (0.82ac) 0.82 acres x $ 1.5M/ac = $1.23M payable $1.23M/100 units = $12,300 per unit Discount: Maximum 10% of gross value 4 ac. x $1.5M/ac = $6M $6M x 10% = $600K $600 K/100 units = $6,000 per unit 6. Application of Amended By law (if 100% CIL S. 42) Example 2: Apartments 200 units on 1.5 acres, valued at $1.65M per acre Before Discount 200 units/300 = 0.67ha (1.65ac) 1.65 acres x $1.65M/ac = $2.7M $13,590 per unit Discount: Maximum 10% of gross value 1.5 ac. x $1.65M/ac = $2.475M $2.475M x 10% = $247K $247K/200 units = $1,238 per unit OR $3,500 whichever is greater 10
11 G Application of Amended By law (if mix of CIL and land S.51) Example 3: Plan of Subdivision 364 units (75% single detached; 25% townhouses) Parkland Requirement = 3 acres Parkland Dedicated = 1 acre Under dedication = 2 acres Blended Rate Singles: $550K x 75% = $412,500 Towns: $850K x 25% = $212,500 Blended rate = $625,000 CIL Payable = Under dedication x Blended rate = 2 acres x $625,000 CIL Payable = $1,250, Consultation with BILD April 2013 Staff met again with BILD Peel Chapter representatives in April 2013 Recognition that the recommended approach meets some of BILD s concerns Variable CIL rate structure for rowhouses Live work collection on residential component only 11
12 G Consultation with BILD April 2013 Concern around: Potential compromising affects of a S. 42 approach Management of phased plans Effects on cost shared block plans Transition guidelines CIL calculation procedures (under a S. 42) Impact on purchase negotiations 8. Next Steps OPA To facilitate the implementation of the by law some minor amendments are required to the Official Plan Staff is seeking authority to take this to a Public Meeting in June Following the Public Meeting, a Recommendation Report will be prepared to recommend adoption of the OPA in support of the By law amendment Staff project September for OPA approvals and by law enactment 12
13 G 1-13 CONCLUSIONS Proposed amendments bring Brampton in line with other GTA municipalities Proposed approach to CIL collection improves revenues and adjusts rates based on lot size a fairer approach Improving revenue streams allows the City to negotiate in good faith on land purchases Necessity for OPA gives additional time for consultation Comments and Questions 13
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