Community benefits formula …

Community benefits formula

•The regulations for a Community Benefit Formula promotes a standard approach to what can be charged as community benefits. However, municipalities may not be able to customize community benefit based on the needs and location of the community where the development is proposed. Staff feel the unique needs of communities may not be able to be accommodated through a standardized formula.

• The province has made an indication that one of two goals under the community benefits formula is that the transition from “soft services” and parkland dedication to community benefits changes is intended to be cost-neutral, and municipal revenues will be maintained. Municipalities have been provided the assurance that the new Community Benefits Charges (CBC) will provide the same level of funding for soft services as was provided under the current DCA. This should be tested as part of the consultation process to ensure that all municipalities are made “whole” under this new CBC framework. Otherwise, staff believes that this change could impact a city’s ability to fund park and recreational development in the future, which is of critical importance to a healthy community.

• The draft regulations related to the new CBC are still at a high level and do not provide enough detail regarding what percentages will be applied for purpose of calculating the CBC as well as how it will work in practice from an administrative and reporting perspective. These details are needed to fully understand what will be required in order to successfully transition from the current development charges act provisions to the new CBC by January 1, 2021. It is requested that more time be given for municipalities to transition to the new CBC with a transition date being set at least two years after the regulations are finalized.

• Under the new CBC, there is a requirement that 60% of the funds collected must be spent or allocated annually. It is unclear how this requirement would support proceeding with larger community-related capital projects that take multiple years to plan, design, and construct. The term “allocated” should be further defined with consideration given to removing this requirement from the regulations.

Appraisals for community benefits

• The regulations indicate that the CBC will be calculated based on a formula that will prescribe a range of percentages to be applied based on the value of land. While it is encouraging to see that multiple percentages will be applied as part of the formula, more clarity is needed related to this calculation and how it will take into consideration fluctuations in land values between municipalities and across the Province. Applying a higher charge to locations with higher land value would seem to de-incentivize development in Major Transit Station Areas (MTSAs) and Urban Growth Centre (UGCs) where land values are higher. This is at cross purposes to other policy directions.

• It is unclear how the regulations might be able to relate to the approved legislation that ties charges to land value through a land appraisal rather than the cost of delivering services, as in the case of development charges.

• In-kind contributions not specified in any proposed content. Staff are wondering if the value of in-kind contributions would be allowed to be greater than the prescribed percentage that is calculated through the community benefits formula.

Community planning permit system

• City staff agree that there is a need to introduce regulations that make this system more workable. However, City staff suggest that the Province engages with municipalities to better understand the regulatory hurdles for adoption of the Community Planning Permit System and amend the regulations accordingly.

• City staff are also supportive of the regulations that would remove the ability for appeals, both in Official Plan (OP) policies and the implementing by-law, to the Community Planning Permit System.

• Stronger examples and parameters of when and where the Minister may issue an order would be beneficial to City staff to gain a better understanding of when the local municipality would be required to adopt or establish a system.

• Overall, City staff believe that this system may be helpful from a technical development review standpoint. Conditions of approval help as long as they are not restricted, but could be similar to a plan of a subdivision or site plan conditions.