YORK REGION DISTRICT SCHOOL BOARD YORK CATHOLIC DISTRICT SCHOOL BOARD

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1 YORK REGION DISTRICT SCHOOL BOARD YORK CATHOLIC DISTRICT SCHOOL BOARD EDUCATION DEVELOPMENT CHARGES BY-LAWS SPECIAL PUBLIC MEETING Monday, June 9, 2014 at 7:00 p.m. 60 Wellington Street West, Aurora Agenda Pages 1. Call to Order 2. Roll Call and Introductions by Anna DeBartolo, Chair of the York Region District School Board 3. Roll Call and Introductions by Carol Cotton, Vice-Chair of the York Catholic District School Board 4. Approval of the Agenda and Motions to Waive Delegation Requirements York Region District School Board York Catholic District School Board 5. Declaration of Conflict of Interest York Region District School Board York Catholic District School Board 6. Declaration of Duly Constituted Special Meetings 7. Opening Remarks York Region District School Board Chair Anna DeBartolo York Catholic District School Board Vice-Chair Carol Cotton 8. Invitation by Chair of the York Region District School Board to Jack 1-6 Ammendolia of Watson and Associates Economists Ltd. to make a presentation regarding proposed changes to Education Development Charges 9. Invitation by Vice-Chair of the York Catholic District School Board to Jim Easto of Keel Cottrelle LLP to comment on proposed changes to the Draft By-Laws York Region District School Board By-Law York Catholic District School Board By-Law

2 JOINT EDUCATION DEVELOPMENT CHARGES BY-LAWS MEETING PAGE 2 MONDAY, JUNE 9, Invitation by Vice-Chair of the York Catholic District School Board to receive submissions from staff 11. Invitation by Chair of the York Region District School Board to hear any delegations/public submissions 12. Motion by York Region District School Board Trustees to receive the reports of the consultants, legal counsel, staff submissions and delegations for information 13. Motion by York Catholic District School Board Trustees to receive the reports of the consultants, legal counsel, staff submissions and delegations for information 14. Passage of Education Development Charges By-Laws York Region District School Board York Catholic District School Board 15. Adjournment York Region District School Board York Catholic District School Board

3 York Region District School Board & York Catholic District School Board Education Development Charge Public Meeting Consideration Of By-law Passage June 9,

4 A Review Of The Key Elements Education Development Charge (EDC) by-laws adopted under the Education Act enable recovery of growth-related net education land costs only. Boards must meet an eligibility trigger to qualify for EDCs. EDC by-laws may be uniform across the jurisdiction or area-specific. EDCs may be a single charge for all types of residential development or the Board may wish to impose different charges on different types of residential development. Boards can allocate net education land costs to both residential and non-residential developments. 2.

5 Necessary Requirements The Board s consultant prepared an EDC Background Study and included the necessary requirements. The EDC Background Study was submitted to the Ministry of Education and has received Ministry approval. The EDC Background Study was made available to the public at least two weeks prior to the first public meeting. This passage consideration meeting is the third of three legislatively required public meetings. A notice of all public meetings has been given a clear 20 days prior to said meeting as required by the legislation. 3.

6 Revisions During the public review process, the Boards received feedback from the Building Industry and Land Development Association (BILD). As a result of this feedback, as well as increases in the price of land over the past several months, the Boards appraiser revised some of the original land values for certain school sites. The education development charge was recalculated using the revised land values and the proposed charge increased for both Boards. The original proposed charge for the YRDSB was $2,901 per unit for residential and $0.50 per square foot for non-residential. The new proposed charge is $3,349 per unit and $0.58 per square foot. The original proposed charge for the YCDSB was $725 per unit for residential and $0.13 per square foot for non-residential. The new proposed charge is $991 per unit and $0.17 per square foot. 4.

7 The Proposed Charge - YRDSB Determination of Total Growth-Related Net Education Land Costs Total: Education Land Costs $440,625,733 Add: EDC Financial Obligations $88,568,215 Subtotal: Growth-Related Net Education Land Costs $529,193,948 Add: EDC Study Costs $750,000 Total: Growth-Related Net Education Land Costs $529,943,948 Apportionment of Total Growth-Related Net Education Land Costs Total Growth-Related Net Education Land Costs to be Attributed to Non-Residential Development (Maximum 40%) 10% $52,994,395 Total Growth-Related Net Education Land Costs to be Attributed to Residential Development 90% $476,949,553 Calculation of Uniform Residential Charge Residential Growth-Related Net Education Land Costs $476,949,553 Net New Dwelling Units 142,411 Uniform Residential EDC per Dwelling Unit $3,349 Calculation of Non-Residential Charge - Board Determined GFA Non-Residential Growth-Related Net Education Land Costs $52,994,395 GFA Method: Non-Exempt Board-Determined GFA 91,450,978 Non-Residential EDC per Square Foot of GFA $

8 The Proposed Charge - YCDSB Determination of Total Growth-Related Net Education Land Costs Total: Education Land Costs $145,682,611 Add: EDC Financial Obligations $10,360,812 Subtotal: Growth-Related Net Education Land Costs $156,043,423 Add: EDC Study Costs $750,000 Total: Growth-Related Net Education Land Costs $156,793,423 Apportionment of Total Growth-Related Net Education Land Costs Total Growth-Related Net Education Land Costs to be Attributed to Non-Residential Development (Maximum 40%) 10% $15,679,342 Total Growth-Related Net Education Land Costs to be Attributed to Residential Development 90% $141,114,081 Calculation of Uniform Residential Charge Residential Growth-Related Net Education Land Costs $141,114,081 Net New Dwelling Units 142,411 Uniform Residential EDC per Dwelling Unit $991 Calculation of Non-Residential Charge - Board Determined GFA Non-Residential Growth-Related Net Education Land Costs $15,679,342 GFA Method: Non-Exempt Board-Determined GFA 91,450,978 Non-Residential EDC per Square Foot of GFA $

9 YORK REGION DISTRICT SCHOOL BOARD EDUCATION DEVELOPMENT CHARGES BY-LAW NO A by-law for the imposition of education development charges in York Region. PREAMBLE 1. Section (1) of the Education Act (the "Act") enables a district school board to pass by-laws for the imposition of education development charges against land if there is residential development in its area of jurisdiction that would increase education land costs. 2. York District School Board (the Board ) has determined that the residential development of land to which this by-law applies increases education land costs. 3. The Board has referred its estimates of the total number of new elementary and secondary pupils and its estimates of the number of elementary and secondary school sites to the Minister of Education for approval, with such approval being given on June 5, 2014, and the Board has satisfied all other conditions prescribed by section 10 of Ontario Regulation 20/ The Board has conducted a review of its education development charge policies and held a public meeting on May 15, 2014 in accordance with section of the Act. 5. The Board has given notice and held public meetings on May 15, 2014 and June 9, 2014 in accordance with section of the Act and permitted any person who attended the public meetings to make representations in respect of the proposed education development charges. 6. The Board has determined in accordance with subsection (3) of the Act that no additional public meeting is necessary in respect of this by-law. NOW THEREFORE THE BOARD HEREBY ENACTS AS FOLLOWS: Defined Terms 1. In this by-law, PART I APPLICATION (a) (b) (c) "Act" means the Education Act, "Board" means the York Region District School Board; "development" includes redevelopment; YRDSB EDC By-law June 9,

10 - 2 - (d) (e) "dwelling unit" means a room or suite of rooms used, or designed or intended for use by one person or persons living together in which culinary and sanitary facilities are provided for the exclusive use of such person or persons, and shall include, but is not limited to, a dwelling unit or units in an apartment, group home, mobile home, duplex, triplex, semi-detached dwelling, single detached dwelling, stacked townhouse and townhouse; "education land costs" means costs incurred or proposed to be incurred by the Board, (i) (ii) (iii) (iv) (v) to acquire land or an interest in land, including a leasehold interest, to be used by the Board to provide pupil accommodation; to provide services to the land or otherwise prepare the site so that a building or buildings may be built on the land to provide pupil accommodation; to prepare and distribute education development charge background studies as required under the Act; as interest on money borrowed to pay for costs described in paragraphs (i) and (ii); and to undertake studies in connection with an acquisition referred to in paragraph (i). (f) (g) "education development charge" means charges imposed pursuant to this bylaw in accordance with the Act; "existing industrial building" means a building used for or in connection with, (i) (ii) (iii) (iv) manufacturing, producing, processing, storing or distributing something, research or development in connection with manufacturing, producing or processing something, retail sales by a manufacturer, producer or processor of something they manufactured, produced or processed, if the retail sales are at the site where the manufacturing, production or processing takes place, office or administrative purposes, if they are, (A) carried out with respect to manufacturing, producing, processing, storage or distributing of something, or (B) in or attached to the building or structure used for that manufacturing, producing, processing, storage or distribution; YRDSB EDC By-law June 9,

11 - 3 - (h) (i) (j) (k) "farm building" means a building or structure located on a farm which is necessary and ancillary to a farm operation including barns, tool sheds and silos and other farm related structures for such purposes as sheltering of livestock or poultry, storage of farm produce and feed, and storage of farm related machinery, and equipment used as part of a bona fide farming operation but shall not include a dwelling unit or other structure used for residential accommodation or any buildings or parts thereof used for other commercial, industrial or institutional purposes qualifying as non-residential development; "gross floor area" means the total floor area, measured between the outside of exterior walls or between the outside of exterior walls and the centre line of party walls dividing the building from another building, of all floors above the average level of finished ground adjoining the building at its exterior walls and, for the purpose of this definition, the non-residential portion of a mixeduse building is deemed to include one-half of any area common to the residential and non residential portions of such mixed-use building or structure; "local board" means a local board as defined in the Municipal Affairs Act, other than a district school board defined in section (1) of the Act; "mixed use" means land, buildings or structures used, or designed or intended for use, for a combination of non-residential and residential uses; (1) "non-residential use" means lands, buildings or structures or portions thereof used, or designed or intended for all uses other than residential use, and includes, but is not limited to, an office, retail, industrial or institutional use; (m) "residential development" means lands, buildings or structures developed or to be developed for residential use; (n) "residential use" means lands, buildings or structures used, or designed or intended for use as a dwelling unit or units, and shall include a residential use accessory to a non-residential use and the residential component of a mixed use or of an agricultural use. 2. Unless otherwise expressly provided in this by-law, the definitions contained in the Act or the regulations under the Act shall have the same meanings in this by-law. 3. In this by-law where reference is made to a statute, a section of a statute, or a regulation, such reference will be deemed to be a reference to any successor statute, section or regulation. Lands Affected 4. YRDSB EDC By-law June 9,

12 - 4 - (a) (b) Subject to section 4(b), this by-law applies to all lands in the corporate limits of The Regional Municipality of York; This by-law shall not apply to lands that are owned by and are used for the purpose of: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) a municipality or a local board thereof; a district school board; a public hospital receiving aid under the Public Hospitals Act; a publicly funded university established by a special act of the Legislative Assembly of Ontario which exempts the property of such university from taxation for school purposes or a college of applied arts and technology established under the Ontario Colleges of Applied Art and Technology Act, 2002; Metrolinx; a place of worship owned by a religious organization that is exempt from taxation under the Assessment Act that is used primarily as a place of public worship; a non-residential farm building; non-residential uses permitted pursuant to s. 39 of the Planning Act. PART II EDUCATION DEVELOPMENT CHARGES 5. (1) In accordance with the Act and this by-law, and subject to sections 10 and 11, the Board hereby imposes an education development charge against land undergoing residential development or redevelopment in the area of the by-law if the residential development or redevelopment requires any one of those actions set out in subsection (2) of the Act, namely: (a) (b) (c) (d) (e) the passing of a zoning by-law or of an amendment to zoning by-law under section 34 of the Planning Act; the approval of a minor variance under section 45 of the Planning Act; a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; the approval of a plan of subdivision under section 51 of the Planning Act; a consent under section 53 of the Planning Act; YRDSB EDC By-law June 9,

13 - 5 - (f) (g) the approval of a description under section 9 of the Condominium Act, 1998; or the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure, where the first building permit issued in relation to a building or structure for below ground or above ground construction is issued on or after the date the by-law comes into force. (2) In respect of a particular development or redevelopment an education development charge will be collected once, but this does not prevent the application of this by law to future development or redevelopment on the same property. For greater certainty, an education development charge will be imposed on any additional dwelling unit to be built on the property that is not exempted under sections 10 and 11 of this by-law, and for which an action referred to in subsection (1) is required. 6. (1) In accordance with the Act and this by-law, and subject to sections 13 and 14, the Board hereby imposes an education development charge against land undergoing nonresidential development or redevelopment in the area of the by-law which has the effect of increasing existing gross floor area of such development if the non-residential development or redevelopment requires any one of those actions set out in subsection (2) of the Act, namely: (a) (b) (c) (d) (e) (f) (g) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; the approval of a minor variance under section 45 of the Planning Act; a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; the approval of a plan of subdivision under section 51 of the Planning Act; a consent under section 53 of the Planning Act; the approval of a description under section 9 of the Condominium Act, 1998; or the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure, where the first building permit issued in relation to a building or structure for below ground or above ground construction is issued on or after the date the by-law comes into force. (2) In respect of a particular development or redevelopment, an education development charge will be collected once, but this does not prevent the application of this bylaw to future development or redevelopment on the same property. For greater certainty, an education development charge will be imposed on any additional gross floor area to be built on the property that is not exempted under sections 13 and 14 of this by-law, and for which an action referred to in subsection (1) is required. YRDSB EDC By-law June 9,

14 Subject to the provisions of this by-law, the Board hereby designates all categories of residential development and non-residential development and all residential and nonresidential uses of land, buildings or structures as those upon which education development charges shall be imposed. 8. (a) (b) Where it appears to the Board that the land values underlying the education development charge calculation are predicting higher costs than the Board is generally experiencing over a period of time sufficient to show the discrepancy with a reasonable degree of assurance, the Board shall consider a motion to study amending this by-law to reduce the charge. Where it appears to the Board that the land values underlying the education development charge calculation are predicting lower costs than the Board is generally experiencing over a period of time sufficient to show the discrepancy with a reasonable degree of assurance, the Board shall consider a motion to study amending this by-law to increase the charge. Residential Education Development Charges 9. Subject to the provisions of this by-law, the Board hereby imposes an education development charge of $3, per dwelling unit upon the designated categories of residential development and the designated residential uses of lands, buildings or structures, including a dwelling unit accessory to a non-residential use, and, in the case of a mixed-use building or structure, upon the dwelling units in the mixed-use building or structure. Exemptions from Residential Education Development Charges 10. As required by subsection (3) of the Act, an education development charge shall not be imposed with respect to: (a) the enlargement of an existing dwelling unit or; (b) the creation of one or two additional dwelling units as prescribed in section 3 of Regulation 20/98 as follows: YRDSB EDC By-law June 9,

15 - 7 - NAME OF CLASS OF RESIDENTIAL BUILDING DESCRIPTION OF CLASS OF RESIDENTIAL BUILDINGS MAXIMUM NUMBER OF ADDITIONAL DWELLING UNITS RESTRICTIONS Single detached dwellings Residential buildings, each of which contains a single dwelling unit, that are not attached to other buildings Two The total gross floor area of the additional dwelling unit or units must be less than or equal to the gross floor area of the dwelling unit already in the building Semi-detached dwellings or row dwellings Residential buildings, each of which contains a single dwelling unit, that have one or two vertical walls, but no other parts, attached to other buildings One The gross floor area of the additional dwelling unit must be less than or equal to the gross floor area of the dwelling unit already in the building Other residential buildings. A residential building not in another class of residential building described in this table One The gross floor area of the additional dwelling unit must be less than or equal to the gross floor area of the smallest dwelling unit already in the building 11. (1) An education development charge under section 9 shall not be imposed with respect to the replacement, on the same site, of a dwelling unit that was destroyed by fire, demolition or otherwise, or that was so damaged by fire, demolition or otherwise as to render it uninhabitable. (2) Notwithstanding subsection (1), education development charges shall be imposed in accordance with section 9 if the building permit for the replacement dwelling unit is issued more than 5 years after, (a) (b) the date the former dwelling unit was destroyed or became uninhabitable; or if the former dwelling unit was demolished pursuant to a demolition permit issued before the former dwelling unit was destroyed or became uninhabitable, the date the demolition permit was issued. (3) Notwithstanding subsection (1), education development charges shall be imposed in accordance with section 9 against any dwelling unit or units on the same site in YRDSB EDC By-law June 9,

16 - 8 - addition to the dwelling unit or units being replaced. The onus is on the applicant to produce evidence to the satisfaction of the Board, acting reasonably, to establish the number of dwelling units being replaced. (4) Subject to section 16, an education development charge shall be imposed under section 9 where a non-residential building or structure is replaced by or converted to, in whole or in part, a residential building or structure. Non-Residential Education Development Charges 12. Subject to the provisions of this by-law, the Board hereby imposes an education development charge of $0.58 per square foot ($6.24 per square metre) of gross floor area of non-residential development upon the designated categories of non-residential development and the designated non-residential uses of land, buildings or structures and, in the case of a mixed use building or structure, upon the non-residential uses in the mixed-use building or structure. Exemptions from Non-Residential Education Development Charges 13. As required by section of the Act, if a development includes the enlargement of a gross floor area of an existing industrial building, the amount of the education development charge that is payable in respect of the enlargement is determined in accordance with the following rules: (a) (b) if the gross floor area is enlarged by 50 per cent or less, the amount of the education development charge in respect of the enlargement is zero; if the gross floor area is enlarged by more than 50 per cent the amount of the education development charge in respect of the enlargement is the amount of the education development charge that would otherwise be payable multiplied by the fraction determined as follows: (i) (ii) determine the amount by which the enlargement exceeds 50 per cent of the gross floor area before the enlargement; divide the amount determined under paragraph 1 by the amount of the enlargement. 14. (a) As required by section 5 of Regulation 20/98, subject to paragraphs (b) and (c), an education development charge under section 11 shall not be imposed with respect to the replacement, on the same site, of a non-residential building that was destroyed by fire, demolition or otherwise, or that was so damaged by fire, demolition or otherwise as to render it unusable. YRDSB EDC By-law June 9,

17 - 9 - (b) Notwithstanding paragraph (a), an education development charge shall be imposed in accordance with section 11 against any additional gross floor area of any non-residential development on the same site in excess of the gross floor area of the non-residential building or structure being replaced, subject to the following calculation: If the gross floor area of the non-residential part of the replacement building exceeds the gross floor area of the non-residential part of the building being replaced, the exemption applies with respect to the portion of the education development charge calculated in accordance with the following formula: where, Exempted portion = GFA (old) x EDC GFA (new) "Exempted portion" means the portion of the education development charge that the board is required to exempt; GFA (old)" means the gross floor area of the non-residential part of the building being replaced; "GFA (new)" means the gross floor area of the non-residential part of the replacement building; "EDC" means the education development charge that would be payable in the absence of the exemption; (c) The exemption in paragraph (a) does not apply if the building permit for the replacement building is issued more than five years after, (i) (ii) the date the former building was destroyed or became unusable; or if the former building was demolished pursuant to a demolition permit issued before the former building was destroyed or became unusable, the date the demolition permit was issued. (d) An education development charge shall be imposed in accordance with section 11 where the residential building or structure is replaced by or converted to, in whole or in part, a non-residential building or structure; 15. The education development charge to be imposed in respect of mixed use development shall be the aggregate of the amount applicable to the residential development component and the amount applicable to the non-residential development component. YRDSB EDC By-law June 9,

18 Credits 16. This section applies where an education development charge has previously been paid in respect of development on land and the land is being redeveloped, except where sections 10 and 11, and/or sections 13 and 14 apply: (a) (b) (c) The education development charge payable in respect of the redevelopment will be calculated under this by-law; The education development charge determined under paragraph (a) will be reduced by a credit equivalent to the education development charge previously paid in respect of the land, provided that the credit shall not exceed the education development charge determined under paragraph (a); Where the redevelopment applies to part of the land the amount of the credit shall be calculated on a proportionate basis having regard to the development permissions being displaced by the new development. For example, if 10% of non-residential gross floor area of a non-residential building is being displaced by residential development through conversion, the residential education development charge on the applicable number of units will be calculated under section 9 of the by-law, and the credit will be the education development charge originally paid on the gross floor area being converted subject to the limit in paragraph (b). PART III ADMINISTRATION Payment of Education Development Charges 17. The education development charge in respect of a development is payable to the municipality in which the land is situate on the date that the first building permit is issued in relation to a building or structure on land to which the education development charge applies. 18. All education development charges payable shall be paid by cash, by certified cheque or by bank draft. 19. The treasurer of the Board shall establish and maintain an education development charge account in accordance with the Act, Regulation 20/98 and this by-law. 20. Withdrawals from an education development charge account shall be made in accordance with the Act, Regulation 20/98 and this by-law. Payment by Services YRDSB EDC By-law June 9,

19 Subject to the requirements of the Act, the Board may by agreement permit an owner to provide land in lieu of the payment of all or any portion of an education development charge. In such event, the Treasurer of the Board shall advise the treasurer of the municipality in which the land is situate of the amount of the credit to be applied to the education development charge. Collection of Unpaid Education Development Charges 22. In accordance with section of the Act, section 349 of the Municipal Act, 2001 applies with necessary modifications with respect to an education development charge or any part of it that remains unpaid after it is payable. Date By-law In Force 23. This by-law shall come into force on July 1, Date By-law Expires 24. This by-law shall expire on July 1, 2019 unless it is repealed at an earlier date. Repeal 25. York Region District School Board Education Development Charges By-Law is hereby repealed effective as of the day this by-law comes into force. Severability 26. Each of the provisions of this by-law are severable and if any provision hereof should for any reason be declared invalid by a court or tribunal, the remaining provisions shall remain in full force and effect. Interpretation 27. Nothing in this by-law shall be construed so as to commit or require the Board to authorize or proceed with any particular capital project at any time. Short Title 28. This by-law may be cited as the York Region District School Board Education Development Charges By-law No ENACTED AND PASSED this 9 th day of June, Chairperson Director of Education and Secretary YRDSB EDC By-law June 9,

20 YORK CATHOLIC DISTRICT SCHOOL BOARD EDUCATION DEVELOPMENT CHARGES BY-LAW NO. 205 A by-law for the imposition of education development charges in York Region. PREAMBLE 1. Section (1) of the Education Act (the "Act") enables a district school board to pass by-laws for the imposition of education development charges against land if there is residential development in its area of jurisdiction that would increase education land costs. 2. York Catholic District School Board (the Board ) has determined that the residential development of land to which this by-law applies increases education land costs. 3. The Board has referred its estimates of the total number of new elementary and secondary pupils and its estimates of the number of elementary and secondary school sites to the Minister of Education for approval, with such approval being given on June 5, 2014, and the Board has satisfied all other conditions prescribed by section 10 of Ontario Regulation 20/ The Board has conducted a review of its education development charge policies and held a public meeting on May 15, 2014 in accordance with section of the Act. 5. The Board has given notice and held public meetings on May 15, 2014 and June 9, 2014 in accordance with section of the Act and permitted any person who attended the public meetings to make representations in respect of the proposed education development charges. 6. The Board has determined in accordance with subsection (3) of the Act that no additional public meeting is necessary in respect of this by-law. NOW THEREFORE THE BOARD HEREBY ENACTS AS FOLLOWS: PART I APPLICATION Defined Terms 1. In this by-law, (a) (b) (c) "Act" means the Education Act, "Board" means the York Catholic District School Board; "development" includes redevelopment; YCDSB EDC By-law June 9,

21 - 2 - (d) (e) "dwelling unit" means a room or suite of rooms used, or designed or intended for use by one person or persons living together in which culinary and sanitary facilities are provided for the exclusive use of such person or persons, and shall include, but is not limited to, a dwelling unit or units in an apartment, group home, mobile home, duplex, triplex, semi-detached dwelling, single detached dwelling, stacked townhouse and townhouse; "education land costs" means costs incurred or proposed to be incurred by the Board, (i) (ii) (iii) (iv) (v) to acquire land or an interest in land, including a leasehold interest, to be used by the Board to provide pupil accommodation; to provide services to the land or otherwise prepare the site so that a building or buildings may be built on the land to provide pupil accommodation; to prepare and distribute education development charge background studies as required under the Act; as interest on money borrowed to pay for costs described in paragraphs (i) and (ii); and to undertake studies in connection with an acquisition referred to in paragraph (i). (f) (g) "education development charge" means charges imposed pursuant to this bylaw in accordance with the Act; ''existing industrial building" means a building used for or in connection with, (i) (ii) (iii) (iv) manufacturing, producing, processing, storing or distributing something, research or development in connection with manufacturing, producing or processing something, retail sales by a manufacturer, producer or processor of something they manufactured, produced or processed, if the retail sales are at the site where the manufacturing, production or processing takes place, office or administrative purposes, if they are, (A) carried out with respect to manufacturing, producing, processing, storage or distributing of something, or YCDSB EDC By-law June 9,

22 - 3 - (B) in or attached to the building or structure used for that manufacturing, producing, processing, storage or distribution; (h) (i) (j) (k) (l) (m) (n) "farm building" means a building or structure located on a farm which is necessary and ancillary to a farm operation including barns, tool sheds and silos and other farm related structures for such purposes as sheltering of livestock or poultry, storage of farm produce and feed, and storage of farm related machinery, and equipment used as part of a bona fide farming operation but shall not include a dwelling unit or other structure used for residential accommodation or any buildings or parts thereof used for other commercial, industrial or institutional purposes qualifying as non-residential development; "gross floor area" means the total floor area, measured between the outside of exterior walls or between the outside of exterior walls and the centre line of party walls dividing the building from another building, of all floors above the average level of finished ground adjoining the building at its exterior walls and, for the purpose of this definition, the non-residential portion of a mixeduse building is deemed to include one-half of any area common to the residential and non-residential portions of such mixed-use building or structure; "local board" means a local board as defined in the Municipal Affairs Act, other than a district school board defined in section (1) of the Act; "mixed use" means land, buildings or structures used, or designed or intended for use, for a combination of non-residential and residential uses; "non-residential use" means lands, buildings or structures or portions thereof used, or designed or intended for all uses other than residential use, and includes, but is not limited to, an office, retail, industrial or institutional use; "residential development" means lands, buildings or structures developed or to be developed for residential use; "residential use" means lands, buildings or structures used, or designed or intended for use as a dwelling unit or units, and shall include a residential use accessory to a non-residential use and the residential component of a mixed use or of an agricultural use. 2. Unless otherwise expressly provided in this by-law, the definitions contained in the Act or the regulations under the Act shall have the same meanings in this by-law. 3. In this by-law where reference is made to a statute, a section of a statute, or a regulation, such reference will be deemed to be a reference to any successor statute, section or regulation. YCDSB EDC By-law June 9,

23 - 4 - Lands Affected 4. (a) (b) Subject to section 4(b), this by-law applies to all lands in the corporate limits of The Regional Municipality of York; This by-law shall not apply to lands that are owned by and are used for the purpose of: (i) (ii) (iii) (iv) (v) (vi) (vii) a municipality or a local board thereof; a district school board; a public hospital receiving aid under the Public Hospitals Act; a publicly funded university established by a special act of the Legislative Assembly of Ontario which exempts the property of such university from taxation for school purposes or a college of applied arts and technology established under the Ontario Colleges of Applied Art and Technology Act, 2002; Metrolinx; a place of worship owned by a religious organization that is exempt from taxation under the Assessment Act that is used primarily as a place of public worship; a non-residential farm building; (viii) non-residential uses permitted pursuant to s. 39 of the Planning Act. PART II EDUCATION DEVELOPMENT CHARGES 5. (1) In accordance with the Act and this by-law, and subject to sections 10 and 11, the Board hereby imposes an education development charge against land undergoing residential development or redevelopment in the area of the by-law if the residential development or redevelopment requires any one of those actions set out in subsection (2) of the Act, namely: (a) (b) the passing of a zoning by-law or of an amendment to zoning by-law under section 34 of the Planning Act; the approval of a minor variance under section 45 of the Planning Act; YCDSB EDC By-law June 9,

24 - 5 - (c) (d) (e) (f) (g) a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; the approval of a plan of subdivision under section 51 of the Planning Act; a consent under section 53 of the Planning Act; the approval of a description under section 9 of the Condominium Act, 1998; or the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure, where the first building permit issued in relation to a building or structure for below ground or above ground construction is issued on or after the date the by-law comes into force. (2) In respect of a particular development or redevelopment, an education development charge will be collected once, but this does not prevent the application of this by law to future development or redevelopment on the same property. For greater certainty, an education development charge will be imposed on any additional dwelling unit to be built on the property that is not exempted under sections 10 and 11 of this by-law, and for which an action referred to in subsection (1) is required. 6. (1) In accordance with the Act and this by-law, and subject to sections 13 and 14 the Board hereby imposes an education development charge against land undergoing nonresidential development or redevelopment in the area of the by-law which has the effect of increasing existing gross floor area of such development if the non-residential development or redevelopment requires any one of those actions set out in subsection (2) of the Act, namely: (a) (b) (c) (d) (e) (f) (g) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; the approval of a minor variance under section 45 of the Planning Act; a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; the approval of a plan of subdivision under section 51 of the Planning Act; a consent under section 53 of the Planning Act; the approval of a description under section 9 of the Condominium Act, 1998; or the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure, where the first building permit issued in relation to a building or structure for below ground or above ground construction is issued on or after the date the by-law comes into force. YCDSB EDC By-law June 9,

25 - 6 - (2) In respect of a particular development or redevelopment an education development charge will be collected once, but this does not prevent the application of this by law to future development or redevelopment on the same property. For greater certainty, an education development charge will be imposed on any additional gross floor area to be built on the property that is not exempted under sections 13 and 14 of this by-law, and for which an action referred to in subsection (1) is required. 7. Subject to the provisions of this by-law, the Board hereby designates all categories of residential development and non-residential development and all residential and nonresidential uses of land, buildings or structures as those upon which education development charges shall be imposed. 8. (a) (b) Where it appears to the Board that the land values underlying the education development charge calculation are predicting higher costs than the Board is generally experiencing over a period of time sufficient to show the discrepancy with a reasonable degree of assurance, the Board shall consider a motion to study amending this by-law to reduce the charge. Where it appears to the Board that the land values underlying the education development charge calculation are predicting lower costs than the Board is generally experiencing over a period of time sufficient to show the discrepancy with a reasonable degree of assurance, the Board shall consider a motion to study amending this by-law to increase the charge. Residential Education Development Charges 9. Subject to the provisions of this by-law, the Board hereby imposes an education development charge of $ per dwelling unit upon the designated categories of residential development and the designated residential uses of lands, buildings or structures, including a dwelling unit accessory to a non-residential use, and, in the case of a mixed-use building or structure, upon the dwelling units in the mixed-use building or structure. Exemptions from Residential Education Development Charges 10. As required by subsection (3) of the Act, an education development charge shall not be imposed with respect to: (a) the enlargement of an existing dwelling unit or; (b) the creation of one or two additional dwelling units as prescribed in section 3 of Regulation 20/98 as follows: YCDSB EDC By-law June 9,

26 - 7 - NAME OF CLASS OF RESIDENTIAL BUILDING DESCRIPTION OF CLASS OF RESIDENTIAL BUILDINGS Single detached dwellings Residential buildings, each of which contains a single dwelling unit, that are not attached to other buildings Semi-detached dwellings or row dwellings Residential buildings, each of which contains a single dwelling unit, that have one or two vertical walls, but no other parts, attached to other buildings Other residential buildings A residential building not in another class of residential building described in this table MAXIMUM NUMBER OF ADDITIONAL DWELLING UNITS Two One One RESTRICTIONS The total gross floor area of the additional dwelling unit or units must be less than or equal to the gross floor area of the dwelling unit already in the building The gross floor area of the additional dwelling unit must be less than or equal to the gross floor area of the dwelling unit already in the building The gross floor area of the additional dwelling unit must be less than or equal to the gross f1oor area of the smallest dwelling unit already in the building 11. (1) An education development charge under section 9 shall not be imposed with respect to the replacement, on the same site, of a dwelling unit that was destroyed by fire, demolition or otherwise, or that was so damaged by fire, demolition or otherwise as to render it uninhabitable. (2) Notwithstanding subsection (1), education development charges shall be imposed in accordance with section 9 if the building permit for the replacement dwelling unit is issued more than 5 years after, (a) (b) the date the former dwelling unit was destroyed or became uninhabitable; or if the former dwelling unit was demolished pursuant to a demolition permit issued before the former dwelling unit was destroyed or became uninhabitable, the date the demolition permit was issued. (3) Notwithstanding subsection (1), education development charges shall be imposed in accordance with section 9 against any dwelling unit or units on the same site in addition to the dwelling unit or units being replaced. The onus is on the applicant to produce evidence to the satisfaction of the Board, acting reasonably, to establish the number of dwelling units being replaced. YCDSB EDC By-law June 9,

27 - 8 - (4) Subject to section 16, an education development charge shall be imposed under section 9 where a non-residential building or structure is replaced by or converted to, in whole or in part, a residential building or structure. Non-Residential Education Development Charges 12. Subject to the provisions of this by-law, the Board hereby imposes an education development charge of $0.17 per square foot ($1.83 per square metre) of gross floor area of non-residential development upon the designated categories of non-residential development and the designated non-residential uses of land, buildings or structures and, in the case of a mixed use building or structure, upon the non-residential uses in the mixed-use building or structure. Exemptions from Non-Residential Education Development Charges 13. As required by section of the Act, if a development includes the enlargement of a gross floor area of an existing industrial building, the amount of the education development charge that is payable in respect of the enlargement is determined in accordance with the following rules: (a) (b) if the gross floor area is enlarged by 50 per cent or less, the amount of the education development charge in respect of the enlargement is zero; if the gross floor area is enlarged by more than 50 per cent, the amount of the education development charge in respect of the enlargement is the amount of the education development charge that would otherwise be payable multiplied by the fraction determined as follows: (i) (ii) determine the amount by which the enlargement exceeds 50 per cent of the gross floor area before the enlargement; divide the amount determined under paragraph 1 by the amount of the enlargement. 14. (a) (b) As required by section 5 of Regulation 20/98, subject to paragraphs (b) and (c), an education development charge under section 11 shall not be imposed with respect to the replacement, on the same site, of a non-residential building that was destroyed by fire, demolition or otherwise, or that was so damaged by fire, demolition or otherwise as to render it unusable. Notwithstanding paragraph (a), an education development charge shall be imposed in accordance with section 11 against any additional gross floor area of any non-residential development on the same site in excess of the gross floor area of the non-residential building or structure being replaced, subject to the following calculation: YCDSB EDC By-law June 9,

28 - 9 - If the gross floor area of the non-residential part of the replacement building exceeds the gross floor area of the non-residential part of the building being replaced, the exemption applies with respect to the portion of the education development charge calculated in accordance with the following formula: where, Exempted portion = GFA (old) x EDC GFA (new) "Exempted portion" means the portion of the education development charge that the board is required to exempt; "GFA (old)" means the gross floor area of the non-residential part of the building being replaced; "GFA (new)" means the gross floor area of the non-residential part of the replacement building; "EDC" means the education development charge that would be payable in the absence of the exemption; (c) The exemption in paragraph (a) does not apply if the building permit for the replacement building is issued more than five years after, (i) (ii) the date the former building was destroyed or became unusable; or if the former building was demolished pursuant to a demolition permit issued before the former building was destroyed or became unusable, the date the demolition permit was issued. (d) An education development charge shall be imposed in accordance with section 11 where the residential building or structure is replaced by or converted to, in whole or in part, a non-residential building or structure; 15. The education development charge to be imposed in respect of mixed use development shall be the aggregate of the amount applicable to the residential development component and the amount applicable to the non-residential development component. Credits 16. This section applies where an education development charge has previously been paid in respect of development on land and the land is being redeveloped, except where sections 10 and 11, and/or sections 13 and 14 apply: (a) The education development charge payable in respect of the redevelopment will be calculated under this by-law; YCDSB EDC By-law June 9,

29 (b) (c) The education development charge determined under paragraph (a) will be reduced by a credit equivalent to the education development charge previously paid in respect of the land, provided that the credit shall not exceed the education development charge determined under paragraph (a); Where the redevelopment applies to part of the land the amount of the credit shall be calculated on a proportionate basis having regard to the development permissions being displaced by the new development. For example, if 10% of non-residential gross floor area of a non-residential building is being displaced by residential development through conversion, the residential education development charge on the applicable number of units will be calculated under section 9 of the by-law, and the credit will be the education development charge originally paid on the gross floor area being converted subject to the limit in paragraph (b). PART III ADMINISTRATION Payment of Education Development Charges 17. The education development charge in respect of a development is payable to the municipality in which the land is situate on the date that the first building permit is issued in relation to a building or structure on land to which the education development charge applies. 18. All education development charges payable shall be paid by cash, by certified cheque or by bank draft. 19. The treasurer of the Board shall establish and maintain an education development charge account in accordance with the Act, Regulation 20/98 and this by-law. 20. Withdrawals from an education development charge account shall be made in accordance with the Act, Regulation 20/98 and this by-law. Payment by Services 21. Subject to the requirements of the Act, the Board may by agreement permit an owner to provide land in lieu of the payment of all or any portion of an education development charge. In such event, the Treasurer of the Board shall advise the treasurer of the municipality in which the land is situate of the amount of the credit to be applied to the education development charge. Collection of Unpaid Education Development Charges 22. In accordance with section of the Act, section 349 of the Municipal Act, 2001 applies with necessary modifications with respect to an education development charge or any part of it that remains unpaid after it is payable. YCDSB EDC By-law June 9,

30 Date By-law In Force 23. This by-law shall come into force on July 1, Date By-law Expires 24. This by-law shall expire on July 1, 2019 unless it is repealed at an earlier date. Repeal 25. York Catholic District School Board Education Development Charges By-Law 194 is hereby repealed effective as of the day this by-law comes into force. Severability 26. Each of the provisions of this by-law are severable and if any provision hereof should for any reason be declared invalid by a court or tribunal, the remaining provisions shall remain in full force and effect. Interpretation 27. Nothing in this by-law shall be construed so as to commit or require the Board to authorize or proceed with any particular capital project at any time. Short Title 28. This by-law may be cited as the York Catholic District School Board Education Development Charges By-law No ENACTED AND PASSED this 9 th day of June, Chairperson Director of Education and Secretary YCDSB EDC By-law June 9,

31 EDUCATION DEVELOPMENT CHARGES 2014 Report To: Report From: York Region District School Board and York Catholic District School Board Administration Date: June 9, 2014 Re: Education Development Charges By-Law Renewal Executive Summary The York Region District School Board and the York Catholic District School Board are proposing to enact successor Education Development Charges (EDC) By-Laws at a joint public meeting. Public meetings required under the Education Act to review the Boards EDC policies and to consider the EDC Background Study and draft EDC by-laws were held on May 15, The Boards are considering new EDC by-laws that will apply to all of York Region. This report has been prepared to summarize the communications and comments that have been received from the public prior to, at, and following the May 15, 2014 public meetings. It also provides responses to that input, and sets out recommendations to be considered by the respective Boards in their adoption of new EDC by-laws. Community Input Public meetings for the proposed EDC by-law have been scheduled (or held) as follows: May 15, 2014 Policy Review Public Meeting (Location: York Catholic District School Board) May 15, 2014 Successor By-law Meeting (Location: York Catholic District School Board) June 9, 2014 Additional Public Meeting and By-law Passage (Location: York Region District School Board) 29.

32 Stakeholder Consultation Correspondence has been received throughout the process and Board staff have hosted a number of stakeholders meetings. In 2011, the Boards received correspondence from the Town of Georgina and the Town of East Gwillimbury requesting that the Boards consider extending the grace period for demolition credits to 10 years. Staff have considered this request on a Region wide basis and recommend that the grace periods continue to be set at 5 years in order to avoid any additional funding deficit for the Boards. A landowner enquired by if there would be transition or prepayment provisions in the new by-laws. Staff recommend that there be no phase-in period for the increased charges which are proposed since a phase-in period would result in a funding deficit for the Boards. The prepayment option was not considered since the legislation does not permit it. The landowner has been advised that the Boards were not considering any phase-in period; the by-laws are proposed to come into effect on July 1, 2014; and, building permits issued before that date will attract education development charges at the current rates. The first stakeholder meeting was held on March 3, 2014 (municipalities and developers) to discuss any issues with the upcoming by-law renewal process. A second meeting was held on April 28, 2014 with Building Industry and Land Development Association (BILD) members and other development industry representatives to review the information contained within the EDC Background Study report. The meeting also included the Boards legal counsel from Keel Cottrelle, the Boards consultants, Watson & Associates Economists Ltd., and Board staff. A follow up meeting with BILD was held on May 30, A number of issues were discussed in detail at this meeting including, site preparation costs, land values, review area changes, increasing pupils in existing communities and accommodation in existing facilities. No additional information requests were generated as a result of this meeting and BILD indicated its general satisfaction with results of the 2014 Education Development Charge Background Study. Public Meetings Joint public meetings, held on May 15, 2014, provided an opportunity for Trustees, developers and members of the general public to ask questions and provide input on the background information regarding the Education Development Charge review being undertaken by both Boards. While 30.

33 several members of the development industry were present, no presentations were made, however a letter with comments was submitted. The following is a summary of the correspondence received regarding EDC policies and how the questions and/ or concerns have been addressed by Board staff. Land Values BILD expressed concern regarding the assumptions and information used to determine land values. RESPONSE: Stakeholder groups have worked with the Boards consultants to ensure the base land values in the background study are as current and accurate as possible. As a result of these discussions and the land value changes proposed in the background study addendum, BILD is now satisfied with the land values to be used by the Boards. Site Preparation Costs Correspondence received from BILD raised a concern regarding the average site preparation costs ($85,593 per acre) and the increase from the 2009 rate of $67,275. RESPONSE: The site preparation cost was determined by averaging the per acre site preparation costs that each Board incurred during the existing by-law period (i.e to 2013). The previous site preparation costs did not include Land Transfer or HST taxes on the cost of land acquired. In addition, Administration is committed to ensuring that vendors are held accountable for any costs that arise that should be covered in purchase and sale agreements instead of EDC charges. No change is being recommended. Review Area Changes Stakeholders requested an explanation as to why some review areas were changed. RESPONSE: Revisions made to review areas during the EDC process typically relate to areas of new residential development that cannot reasonably be accommodated by the 31.

34 existing schools in the original review area construct. Review area revisions are consistent with Board accommodation decisions and future facility and community planning. Care is taken when revising review areas to ensure that geography, proximity to other schools, transportation impact etc. are all taken into account and that the Boards reasonably believe that the new review area constructs are consistent with how they will offer services to these communities going forward. Increasing Pupils in Existing Communities Stakeholders requested an explanation as to why some existing community enrolment projections increase, when historically pupil yields from existing communities generally decline over time. RESPONSE: While it is true that in many cases, existing community projections do decline over time, there are instances where the existing community can increase over time. In the cases of the review areas cited, these are all review areas in high growth areas that have experienced recent residential growth with large populations of pre-school and school aged children that will continue to increase in the short-term. Many of these review areas have schools that recently opened with enrolments weighted towards the junior cohorts. As these larger primary grades move through the elementary system, enrolments at these schools and in these newer growth areas will continue to grow, thus increasing the existing community projections. Accommodation in Existing Facilities Stakeholders requested an explanation as to why some review areas are able to accommodate surplus students, but it cannot be done in other review areas. RESPONSE: In the EDC analysis there are instances where students from new development or more specifically the net growth related pupil place requirements are recommended to be accommodated through new schools or in existing facilities. The determination is based on a variety of factors such as the number of net growth related pupils, proximity to available space, Board accommodation planning, owned or optioned school sites, timing of future growth and Board and consultant projections. The existing facilities might not be in close proximity to the growth area or there may be future growth outside the EDC forecast that is expected to continue in the longer term and may eventually require a new school site. The consultant works closely with School Board 32.

35 planners to ensure that sites identified in the EDC are largely consistent with future Board planning and accommodation decisions. A complete list of all of formal correspondence received and staff responses (including those that have already been shared with Trustees during the May 15, 2014 Policy Review Public and Successor By-law meetings) has been included in the Appendix to this report. In addition, the Board s consultants, Watson & Associates Economists Ltd., have prepared an Addendum Report dated May 30, 2014 to the original EDC Background Study which highlights changes to the analysis as a result of the increase in appraised land values. Both the Addendum Report and the original EDC background Study are available on the Boards websites. Policy Statements In order to pass the new bylaw a number of policy decisions need to be considered. This section of the report summarizes the policy decisions to be made by each Board prior to by-law passage. 1. Establish the Percentage of Growth-Related Net Education Land Costs to be Borne Through EDCs Recommendation: Continuation of 100% recovery of the Board's net education land costs through EDCs as there is no other revenue source available to fund growth-related land needs. 2. Should the EDC By-law include any Non-Statutory RESIDENTIAL Exemptions? Recommendation: That the EDC By-law only provide for the standard mandatory residential exemptions. Granting further exemptions would result in a funding deficit for the Boards. 3. Should the EDC By-law include any Non-Statutory NON-RESIDENTIAL Exemptions? Recommendation: That consistent with previous and existing by-laws, the following nonstatutory non-residential exemptions be included in this by-law: (i) (ii) a public hospital receiving aid under the Public Hospitals Act; a place of worship owned by a religious organization that is exempt from taxation under the Assessment Act that is used primarily as a place of public worship; 33.

36 (iii) (iv) Non-residential farm buildings used for bona fide farming purposes; Non-residential uses permitted pursuant to s. 39 of the Planning Act. 4. Demolition and Conversion Credits Recommendation: That the demolition credit grace period continue to be set at 5 years for both residential and non-residential uses. That the Board continue to include a provision for permitting conversion credits. 5. Percentage of Net Education Land Costs to be Borne by Residential and Non- Residential Development Recommendation: Consistent with previous by-laws the current recovery rate of 90% for residential and 10% non-residential be retained. 6. By-Law Term Recommendation: That the Board continue with a five year by-law term. A five year term provides the maximum flexibility since a Board has the power to amend the by-law or pass a new By-law at an earlier point, if necessary. 7. By-Law Structure (Jurisdiction wide versus Area Specific) Recommendation: The adoption of a singular by-law structure affords the flexibility to deal with changing patterns of growth and ensure full cost recovery of growth-related needs. Staff therefore recommends that the Boards continue with a jurisdiction-wide By-law. Ministerial Approval In order to pass new EDC by-laws, the Boards must receive approval from the Minister of Education to the Boards pupil place projections and estimates of the numbers of school sites used in the calculation of the charges. The Boards received such approval on June 5, The Amount of the Charge York Catholic District School Board Staff Recommend: A residential charge of $991 per dwelling unit and non-residential charge of $0.17 per square foot of gross floor area. York Region District School Board Staff Recommend: A residential charge of $3,349 per dwelling unit and non-residential charge of $0.58 per square foot of gross floor area. 34.

37 Passage of By-law: Recommendation: That the Boards pass EDC by-laws in the forms attached to this Report (which reflect the policy recommendations set out above). The forms of Motions to be made are set out below: Motion BE IT RESOLVED: 1) That York Region District School Board determine that no further public meeting is necessary with regard to the passage of the proposed Education Development Charges By-law; 2) That York Region District School Board determine that the percentage of growth-related net education land cost that is to be funded by education development charges on residential development be 90% and on non-residential development be 10%; and, 3) That York Region District School Board pass Education Development Charges By-law , in the form presented at this meeting. Motion BE IT RESOLVED: 1) That York Catholic District School Board determine that no further public meeting is necessary with regard to the passage of the proposed Education Development Charges By-law; 2) That York Catholic District School Board determine that the percentage of growth-related net education land cost that is to be funded by education development charges on residential development be 90% and on nonresidential development be 10%; and, 3) That York Catholic District School Board pass Education Development Charges By-law 205, in the form presented at this meeting. 35.

38 Appendix: Additional Correspondence 2011: Correspondence with East Gwillimbury and Georgina. Letter dated October 20, 2011 from the Town of East Gwillimbury. Letter dated November 30, 2011 from the Boards to the Town of East Gwillimbury in response to its letter dated October 20, Letter dated December 9, 2011 from the Town of Georgina. Letter dated January 16, 2012 from the Boards to the Town of Georgina in response to its letter of December 9, These letters are in regards to extending the grace period for demolition credits to 10 years referenced in the report above. April 28, 2014: Building Industry and Land Development Association (BILD), letter from the York EDC Working Group on behalf of BILD to both Boards and their consultant. This letter relates primarily to the land values originally used by the Boards in the calculation of the charges. May 12, 2014: Altus Group, letter from Altus Group Staff to the Boards consultant. This letter is in regards to information in the EDC Background Study dated April 22, 2014 prepared on behalf of the Boards. May 14, 2014: Building Industry and Land Development Association (BILD), letters from WeirFoulds on behalf of BILD to the Chairs of both Boards. May 21, 2014: Correspondence with Building Industry and Land Development Association (BILD), letter from Watson & Associates Economists Ltd. on behalf of both Boards. This letter addresses issues raised in the April 28, 2014 and May 14, 2014 letters from BILD. June 2, 2014: Building Industry and Land Development Association (BILD), letter from WeirFoulds on behalf of BILD to legal counsel for both Boards. Specifics of the letter are addressed in the report above. In addition WeirFoulds indicates the continued willingness of BILD and its members to work with the Boards on a number of bigger picture issues as they relate to EDC s generally. Finally WeirFoulds closes with, therefore at this time BILD is generally satisfied with the proposed EDC by-law and rate June 3, 2014: Building Industry and Land Development Association (BILD), letter from WeirFoulds on behalf of BILD to legal counsel for both Boards. WeirFoulds indicates, BILD would like to acknowledge that over the course of the last several months, BILD York Chapter representatives and representatives of the Boards have been actively engaged in meaningful discussions regarding the proposed changes to the Boards EDC By-law. WeirFoulds goes on to state, Overall, these meaningful discussions has lead BILD to the point where we are satisfied with results of the consultation and its effect on the proposed EDC Bylaws (as of May 30th, 2014). We understand that the Boards are awaiting approval from the Ministry of Education and BILD is hopeful that a favourable decision will be received in advance of public meetings currently scheduled for June 9 th 2014, for the adoption of the Boards EDC By-laws, as amended to address the changes to the land appraisal evaluations. 36.

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62 April 28, 2014 MEMORANDUM To: Prepared by: York Region District School Board and York Catholic District School Board c/o Jack Ammendolia, Watson and Associates The York EDC Working Group on behalf of the Building Industry and Land Development Association This memo has been prepared to supplement our upcoming discussion at the April 28 th stakeholder meeting for the York Region District School Board and York Catholic District School Board s review of its Education Development Charges Background Study, Land Appraisal Report and By-laws. The following is a list of issues that we wish to bring forward at this upcoming meeting: 1. The Land Appraisal Report needs to better reflect true market conditions. 1.1 We believe suburban standards have been applied to urban areas, resulting in underestimated land valuations in the report. Utilizing the MCAP lot values assessment would assist in this regard, as well as better assumptions in the residual methodology. 1.2 The residual methodology applied in the report is flawed. The methodology could be improved by incorporating the following changes: Parkland dedication should not be applied to areas where it has already been satisfied. Contingency for development charges should be removed. Profits and overheads should be reduced. Financing/holding provision should be incorporated. Final estimates should be discounted for a period of 1 year at 8% for processing. Profits and overheads are to be broken up into separate categories and estimates. Consultant fees are typically higher than the estimates in the existing methodology. Insurance costs should be identified. Legal fees and real estate commissions should be included. 1.3 Currently, land valuations have been determined by utilizing an average of the residual methodology and the per acre standards. We believe the land valuation should be completely based on the residual analysis and cross-checked by the per acre approach for any erroneous outliers. 60.

63 1.4 To improve the accuracy of the information, it would be helpful if the industry and the boards could work collaboratively to establish a template for assessing market value, therefore creating a formula rather than setting a predetermined value for all sites. 1.5 Reliance on school site sales has its limitations. We understand that only sites which were negotiated 2 years prior were used in the preparation of this report. We believe that any profits realized from school site sales should be allocated back to the development charges pool. 1.6 We believe that the sunset clause of 10-years for an option agreement should be reduced to 3-years. 2. The Background Study was released on April 22 nd. Due to the limited review time for this component of the work, we would like to request a second meeting to discuss this item. 61.

64 Independent Real Estate Intelligence May 12, 2014 Memorandum to: Jack Ammendolia Watson & Associates From: Daryl Keleher, Director Dukhee Nam, Senior Analyst Altus Group Economic Consulting Subject: York EDC Review Our File: P 4950 This memo presents our findings from the review of York Region District School Board (YRDSB) and York Catholic District School Board (YCDSB) Education Development Charges Background Study (2014 EDC Background Study), dated April 22, Cost and Escalation Rate Assumptions The site preparation cost estimate of $85,593 per acre is up over $18,000 per acre since the 2009 EDC Study. According to the 2014 EDC Study, the $85,593 per acre is based on recent historical site preparation costs that were provided by the School Boards. The Boards have provided the detail behind the site preparation assumptions. Q1) The worksheet provided shows columns with costs for Land Transfer Taxes (LTT) and HST we would like to understand what costs were deemed eligible for HST (i.e., what base cost was HST calculated on?). For example, there are HST costs that are 13% higher than the other site preparation costs combined (or one third of the total site preparation costs for that site), and there are other cases where there has been no HST applied. There does not appear to be a consistent method for determining HST. Q2) Similarly, for the LTT costs, we would like to understand how these costs were determined, by understanding what value the LTT was calculated on. Research, Valuation & Advisory Cost Consulting & Project Management Realty Tax Consulting Geomatics Economics 33 Yonge Street, Suite 500, Toronto, ON M5E 1G4 Canada T F altusgroup.com 62.

65 York EDC Review May 12, 2014 Page 2 Q3) We would also like to know exactly what costs are included under Site Prep in the detailed table provided. Q4) We would like to understand why it appears that the actual site preparation costs for Catholic board sites are significantly higher than for Public sites. Review Area Changes There have been a number of changes to the boundaries of review areas: Former PE01 is now split into two review areas (PE01A and PE01B) Former PE03 is now split into two review areas (PE03A and PE03B) Former PE15 is now split into two review areas (PE15A and PE15B) Former CE03A is now split into two review areas (CE03A and CE03C) There are instances where the splitting of review areas has served to increase the charge in the 2014 EDC calculation. For example in PE03A/PE03B, the available capacity in the five schools in PE03B, if still included with PE03A, would have seen the 1,169 pupil places be available for the 1,013 new pupils generated by development. Instead, with PE03A on its own, there is no available capacity to accommodate new pupils generated by development. Q5) We would like to understand why the review area changes were made. Increasing Pupils in Existing Communities The pupils from existing communities generally decline slightly over time. However, there are a few review areas that have a forecast running contrary to this notion. For example: PE04 existing pupils increase from 5,022 in 2013/14 to 6,149 in 2028/29 (+22%) PE13 existing pupils increase from 3,479 in 2013/14 to 4,325 in 2028/29 (+24%) PE14 existing pupils increase from 9,141 in 2013/14 to 10,106 in 2028/29 (+11%) CE03B existing pupils increase from 1,132 in 2013/14 to 1,441 in 2028/29 (+27%) Q6) We would like to understand the reasons for these increases, as it is unusual to see these sorts of long term increases in pupils generated in existing communities. 63.

66 York EDC Review May 12, 2014 Page 3 Accommodation in Existing Facilities There is a new school identified as being required for PE01B, despite there being only 70 net growth related pupil place requirements. The existing school (King City PS) in the area has a capacity of 468 pupils, and a forecasted enrolment of 214 pupils after 2028/29. There are another 324 pupils to be generated by new development. Therefore, the combined enrolment in the review area will be 538 pupils in 2028/29, not significantly higher than the capacity available at King City PS (468 pupils). Despite the existing school projected to be only 70 students over capacity at the end of the 15 year period, there are plans for a new school with a capacity of 610 pupils. While the calculation in the EDC is correct by only including a small share of the land costs related to this new school site (11.4% or 70/670), the new school may not be warranted, and may not be an efficient use of resources to open a new school that will be far below capacity in 2028/2029. There are two instances where the net growth related pupil place requirements to be accommodated in existing facilities are higher than the 70 to be housed in a new school in PE01B 166 in PE13 and 140 in PE04B. It is unclear why the existing facilities in these review areas can be accommodate the surplus of students but it cannot be done in PE01B. Similarly, in the Catholic Elementary panel, there are two instances of accommodating net pupils in existing facilities (109 in CE01 and 29 in CE11), while in others there small numbers of net pupils that are to be accommodated in new schools (91 pupils in CE09). Q7) We would like to understand why in some cases small numbers of students are not accommodated in existing facilities, but rather to be accommodated at a new school site. P:\4900s\4950\report\Final York EDC Review Memo.docx 64.

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75 Plaza Three Argentia Rd. Mississauga, Ontario Canada L5N 1V9 Phone: (905) Fax: (905) The York Region District School Board and the York Catholic District School Board are both in the process of renewing their existing Education Development Charge (EDC) by-laws. During the public review of the renewal process, the Boards received correspondence from the Building Industry and Land Development Association (BILD). In addition, the Boards, their legal counsel, appraiser and consultant met with representatives of BILD on April 28, 2014 to discuss EDC related issues. In BILD s correspondence and at the meeting, they raised a number of concerns with certain assumptions used in the study. The primary concerns dealt with: The assumptions used to estimate the land values. Clarification with regard to school board site preparation costs, explanation of the costs that support the site preparation cost estimates and explanation of the difference between YRDSB and YCDSB site preparation costs. Review area changes. Increases in the existing community projections in some review areas. Accommodating students in existing facilities This memo addresses the aforementioned concerns and provides background and supporting information where necessary. APPRAISED LAND VALUES The Board s appraiser has had discussions and a meeting with the appraiser representing BILD and agreed to review certain assumptions that were raised in those discussions as well as additional material provided by BILD. In addition, the Boards and their consultant, legal counsel and appraiser met with representatives from BILD to further discuss the land values. This review is still ongoing and the Board s appraiser expects to have the results of the analysis complete in the next few days and a response will be provided to BILD on this issue shortly thereafter. EDC BILD 73.