Interim Options Report Presentation March 18, 2013 Township of Muskoka Lakes
What are current and emerging trends impacting the tourism industry in Muskoka? What is needed for successful resort development? What are potential official plan policy directions and what would the implications be? Other Considerations Taxation issues Private cottage rentals Small business re-capitalization Camps and campgrounds Photo Credit: Larry Wright 2
Summary of Key Factors Impacting Alternative Policy Options 3
Muskoka ss Accommodation Sector: 111 Resorts and Hotels with 4,100 units 30 Trailer Parks & Campgrounds offering 3,000 sites 35 Camps offering an average of 350 beds Resort $400 Million in direct expenditures annually in the District ($50,000 per rental unit) Source: Annual Trends in the Hotel Industry 2012 and Ontario Resort Trends 2012, PKF Consulting Inc. 4 Photo Credit: touchstoneonlakemuskoka.com
Poor performance levels Challenges in economic sustainability of existing operations Restrictive official plan policies that limit new development, expansion or redevelopment (and therefore additional revenue sources) Increased competition from private cottage rentals The need for additional regional and provincial marketing High levels l of property taxes for commercial waterfront t properties Challenges in realizing the value of their asset 5
Noise, safety and security issues Potential environmental impacts resulting from intensity of use at lakeside resorts and other tourism product developments Implication of capital losses of resorts becoming a burden to local tax-payers Photo Credits: Muskoka Tourism and Larry Wright 6
Framework for Alternative Policy Options 7
Report provides a detailed framework of alternative policy options, based on: A spectrum of permissive to restrictive (and short and longer term) approaches Challenges with existing policy sets Addressing gaps and inconsistencies Implications of applying different policy options Photo Credit: Larry Wright 8
9 Definitions
Existing Policy: C.29 - In the Waterfront, Rural and Community designations: A. All forms of tenure will be considered for new, expanded or redeveloped resorts within the principles, goals and objectives of this plan. A resort is defined as lodging or other accommodation other than tent and trailer parks. Existing definitions of resort and the travelling public are broad and should be better defined. public are broad and should be better defined. 10 Photo Credit: mariott.com
Should the definition for resort product remain broad, or should existing policies be amended to restrict resorts to traditional product types with specific on-site facilities and management services? Should the definition of a resort permit ownership types that include all forms of tenure, or should it be amended to be more restrictive? 11
Should the definition of travelling public be broadened to include alternative owners of units (i.e. fractional, condo shareholder, timeshare unit owner), or should it be maintained to only those without an ownership or right to use interest in a resort unit (i.e. current interpretation)? Photo Credit: shamrocklodge.com 12
Tests for Commercial Use 13
Existing Policy: Regardless of the form of tenure, accommodation units within a resort development will be: 1) made available to the travelling public 2) operated under central management on location 3) for profit 4) will provide ongoing services & recreational facilities Documentation will require commercial use and maintenance of the commercial components Availability, travelling public and facilities are not defined Enforcement has been a challenge 14
Should policies be amended to identify more detailed criteria within the existing tests for resort commercial use specifically regarding the following elements: Third-party rental availability (i.e. defining a minimum level) Management Considerations (on-site, off-site) Element of Profit Ongoing Services Facilities Provided in a Commercial Setting Photo Credit: forestrockresort.com There are implications for required documentation and operational monitoring 15
Ownership and Land Use Considerations 16
Potential Alternatives: Sole, multiple or alternative ownership accommodation units with rental component Sole, multiple or alternative ownership accommodation units without rental component Mix of resort commercial and resort related residential units in conjunction with traditional hotel in first phase Photo Credit: Larry Wright 17
Multiple residential development is not currently permitted in waterfront areas Muskoka Official Plan prohibits the use of private communal services for any type of residential development Any ypolicy option involving a mix of resort commercial and resort related residential uses would require community and Council acceptance of: a) Multiple residential uses in the waterfront b) Potential District responsibility and liability for small, remote, private communal systems 18
Servicing and Planning Considerations 19
Existing policy includes requirement for a reserve fund that t provides for 100% of replacements costs for private communal systems for resort commercial uses Under an adjusted policy framework, District might consider: 1) Leaving the policy as is 2) Eliminating the requirements for a reserve in the Muskoka Official Plan, and relying entirely on the legislative requirements under the Condominium Act for resort commercial uses If resort commercial / resort related residential uses are contemplated, t the requirements of the SDWA would apply, which requires municipal consent to the construction of a private communal system for residential development 20
Planning Requirements for New Resorts / Redevelopments 21
Existing policy: C.28 - New resort development may only be established in the Waterfront Designation by amendment to the Local Official Plan Under adjusted policy framework, District might consider: 1) Eliminating the need for a local Official Plan amendment - it would remain the responsibility of the Area Municipalities to ensure new developments were either compliant with or require zoning by-law amendments 2) Requiring an amendment to the Muskoka OP in addition to the local OP which would extend current timelines for developers, and could further limit new development 22
Downzoning Considerations 23
Should significant properties be identified at a District and local Area Municipality level? District policy might be amended to consider the following: 1) Permitting owner rationale and business case documentation for smaller-scale l properties, if they include consideration for longterm potential of other commercial operations on-site 2) Requiring third-party prepared business case and land base tests on mid-scale and large-scale properties 24
Summary of Implications 25
There are many possible alternatives for the District to consider that either encourage or limit resort development in the short to mid-term The level of encouragement of new resort and tourism development is directly related to the level of restrictions imposed by MOP policies Regardless of which perspective is adopted, further criteria and definitions need to be identified and enforcement will be needed 26 Photo Credits: trafalgarbaycottages.com
Other Considerations 27
Should District policies be developed eloped specific to the trailer park, campground and camp sectors? Should Area Municipalities consider regulating cottage rentals through licensing or zoning, or should they restrict all forms of cottage rental? 28 Photo Credit: sandwoodtrailerpark.com
Should the District consider lobbying the Province and MPAC to address the inequities impacting the housekeeping sector and to loosen restrictions within the Resort Condominium Property Class? Should the District assist resort operators in identifying funding programs or institutions to assist with capital financing needs? 29 Photo Credit: blacklakecabins.com
30 Next Steps
Obtain input on Interim Options Report from Area Municipalities and other stakeholders o o Area Councils Stakeholder workshop Incorporation of stakeholder input into a Recommendations Report Official plan amendment process o Further opportunities to input Photo Credit: muskokanclub.com 31