Dear Mr. Coelho, Thank you…

Dear Mr. Coelho,

Thank you for the opportunity to provide comments on ERO posting 019-2785 “Land Use Compatibility Guideline” (LUCG). Please accept the following comments from the City of Waterloo on the proposed Guideline for your consideration and action.

In general, staff are very concerned with MECP’s proposed Guideline and are of the opinion that it will negatively impact population and economic growth as well as complete community goals as espoused in Provincial policy such as the Provincial Policy Statement and the Growth Plan. The City of Waterloo requests that the Ministry extend the commenting period to allow municipalities, industry, consultants, and proponents of Planning Act applications more time to determine the cumulative impacts of the proposed Guideline to avoid negative impacts.

City of Waterloo Proposed LUCG Specific Content Concerns:

1. Timing of the Release of the Proposed Land Use Compatibility Guideline

A 60-day posting to the Environmental Registry of Ontario has been initiated by the Ministry of the Environment, Conservation and Parks (MECP) on the proposed changes related to environmental compliance initiatives, with comments due by July 3, 2021. This short commenting period has precluded a fulsome analysis of the impacts of the proposed Guideline, consideration of the cumulative impacts of the revised guideline, as well as consultation with our local industries and development industry.

2. Substantial increase to Area of Influence (AOI) / Minimum Separation Distance (MSD) Standards

The Ministry is proposing to substantially increase AOI and MSD standards based on ten-year’s worth of its complaints data related to noise, dust, and odour. We believe that basing the new standards on only the worst offenders is a problematic methodology, and that the Province has other tools to ensure facilities are in compliance with their regulatory approvals (e.g., ECAs). In the existing D-series guidelines, MSDs range from 20m to 300m whereas in the proposed guideline they range from 200m to 500m. Further, existing AOIs range from 70m to 1000m whereas in the proposed guideline they range from 500m to 2000m. This substantial increase to AOI and MSD standards will have an impact on the ability to accommodate major employment facilities within the built-up area. It will also negatively impact local planning for infill and intensification within designated urban areas especially in respect to area-specific planning for Major Transit Station Areas and other strategic growth areas in Waterloo where lands are planned to transition from low rise employment (industrial) to high rise mixed-use development over time, in accordance with Provincial objectives to efficiently use existing urban lands and infrastructure, create transit supportive development, and compact built form.

It is noted that the proposed Guideline allows municipalities to voluntarily establish a site specific AOI for an individual major facility, provided that supporting studies are completed to justify the alternative AOI, preferably during an Official Plan Review process. City staff are concerned with this approach, as it does not streamline the planning process, as it is impossible to predict the location, nature and design of a new major facility in our community, meaning site specific AOIs would need to be established on a case by case basis through a substantive planning process – this will become a deterrent and barrier to investment and job creation, particularly if the Official Plan Amendment is appealed to the Ontario Land Tribunal.

3. New and Expanded Requirements for Compatibility Studies and Demonstration of Need Study

Although the requirement for a Land Use Compatibility Study is not new, the increase in the AOI has the effect of requiring additional and more complex studies to be completed for Planning Act applications, including updating municipal planning documents for locations where sensitive land uses or industrial uses are already permitted in respective official plans and zoning by-laws. A Land Use Compatibility Study would be required for a proposed sensitive land use as part of a Planning Act application within the AOI, regardless of the City’s current planning objectives and goals including to transition some areas from employment (industrial) to mixed used (e.g., Major Transit Station Areas), recognizing the transitioning will take time.

If the Land Use Compatibility Study identifies any potential adverse impact, whether or not such impact can be mitigated, a Planning Act application proponent would be required to undertake a Demonstration of Need Study. This study must investigate, among other things, at least two alternative locations for that use outside of the major facility’s AOI. Based on the historical development of the City, there are many areas that either abut or are within the proposed AOIs of several major facilities.

The requirement for these studies, especially the Demonstration of Need Study, will have negative impacts on the timing of development and the potential for additional residential intensification in the City of Waterloo in comprehensively planned locations and transition areas. Further, the requirement for such studies will be costly. The requirement for a Demonstration of Need Study should be eliminated, and left to the discretion of the municipality as determined through its Official Plan and Zoning By-law where warranted in the local context.

4. Addition of Transportation Facilities and Corridors

The proposed Guideline includes transportation infrastructure and corridors in the definition of Major Facilities thereby subjecting them to the AOI, MSD and compatibility study requirements. This is concerning because the Guideline may place larger setbacks from works like LRT infrastructure in our City that support inward growth and intensification, and for which the Province invested in to facilitate a transit supportive community. The City has created growth plans around each LRT station, which was required by the Region of Waterloo in order to leverage the significant transit investment by all levels of government. The new LUCG has the potential to add significant delays, costs and complexity to realizing our collective goal of intensifying around the LRT stations, many of which are historic industrial areas comprehensively planned to transition to mixed-use high density development in the short to medium term.

5. Implementation of Land Use Compatibility in Planning Tools

The proposed Guideline provides specific direction on how land use compatibility can be addressed in planning tools such as official plans and zoning by-laws. The Guideline suggests that official plans should identify or designate areas with existing or planned major facilities and identify the associated AOIs and MSDs for these facilities on a land use schedule. It is noted that the City has very limited, if any, information on individual major facilities in our community, nor the authority to require such information to be disclosed for the purposes of municipality initiated planning studies. It is also noted that the Ministry already provides a database for environmental compliance approvals (ECAs). As the Ministry already undertakes tracking of ECAs, the requirement for municipalities to do similar tracking through the classification of facilities on a schedule in official plans represents an unnecessary duplication of effort and inefficient use of limited resources. The City respectfully submits that the AOIs and the MSDs should remain as guidelines and not be required to be included in municipal official plans.

6. Change from a Guideline to Official Plan Policy Directive

The proposed Guideline has changed from a guideline to a direction that municipalities must follow in the assessment of land use compatibility. For example, the guideline directs that official plans shall identify AOIs and MSDs within the policy framework as well as identify the requirement for a Demonstration of Need Study, where required. This proposed change from a guideline to a policy directive will create challenges for the City in its goals to protect employment areas while at the same time balancing the need for additional housing to meet Provincial intensification and density targets such as those required by the Growth Plan.

7. Engagement to Support Compatibility Studies

The Guideline states that proponents of major facilities should engage all residents and other occupants within the AOI, including other major facilities, sensitive land uses and First Nations and Métis communities. Further, proponents of sensitive land uses should engage the owners of major facilities whose AOI the proposed sensitive land use falls into. These efforts are intended to inform the compatibility study. Staff note that the proposed AOI distances are often significantly larger than the notification requirements outlined in the Planning Act for planning applications (e.g., 120 metres). The expanded notice distance for AOIs will result in significant notification costs to urban municipalities like the City of Waterloo. The lack of alignment between the Planning Act and the Guideline will also create confusion, as municipal notification requirements will be inconsistent – e.g., residents living more than 120 metres from the lands will question why they received a notice for the AOI and not the related planning application.

8. Definition of ‘Sensitive Land Uses’

Clarification is requested from the MECP as to whether the definition of ‘Sensitive Land Use’ includes parks, open spaces, forests, and naturalized areas.

Conclusion

In general, staff are very concerned with MECP’s proposed Guideline and are of the opinion that it will negatively impact population and economic growth as well as complete community goals as espoused in Provincial policy such as the Provincial Policy Statement and the Growth Plan. The City of Waterloo requests that the Ministry extend the commenting period to allow municipalities, industries, consultants, and proponents of Planning Act applications more time to determine the cumulative impacts of the proposed Guideline.

Should you have any questions, please do not hesitate to reach out.