Services Our Focus: Your Future Prepared for Council-in-Committee Report No. CDS Agenda Date May 5, 2008 File No

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1 Town of Fort Erie Services Community & Development Our Focus: Your Future Prepared for Council-in-Committee Report No. CDS Agenda Date May 5, 2008 File No Subject PROPOSED PARKLAND DEDICATION BY-LAW Recommendations THAT Council approve the proposed Parkland Dedication By-law as presented in Report CDS Relation to Council s Corporate Strategic Plan Priority: Development and Land Use Goal: A3: Increase Parks and Open Space Initiative: A3.1 Implement the Parks and Open Space Master Plan Priority: Goal: Financial Stewardship C4: Reduce Dependence on Gaming Revenue Goal: C5: Balance the Burden of Investment across Current and Future Generations Initiative: C5.6 Ensure that all development-related costs and fees are justified and effectively communicated (eg. Planning application fees, permits) List of Stakeholders Residents and Property Owners Town of Fort Erie Recreation partners Developers and Builders in the Town of Fort Erie Prepared by: Submitted by: Approved by: S. Hansen, OALA, MBA Manager of Parks & Open Space Development R. Mostacci, MCIP, RPP Director, Community & Development Services Harry Schlange, MBA Chief Administrative Officer

2 Community & Development Services Report No. CDS Page 2 of 7 Purpose of Report Council considered and approved Report CDS relative to a draft Parkland Dedication Policy. This report presents addition information as requested by Council and a final Parkland Dedication Policy, for Council approval. Background Report CDS , presented to Council at the April 2, 2007 Committee meeting, identified the issues associated with the development of a parkland dedication policy and proposed a draft policy for Council and public consideration. CDS is attached as Appendix 2 for reference purposes. The report recommended that prior to finalization of the policy, stakeholders be consulted and that the Town s solicitor review and provide comment on the policy. In addition, Council requested additional information relative to land valuation, and confirmation of comparative practices of other Regional municipalities. Report CDS addresses these issues, and presents a revised Parkland Dedication By-law, which is attached as Appendix 1. Analysis 1. Existing Practices vs. Proposed Policy For comparison purposes, that following table identifies the provisions of the Ontario Planning Act, relative to existing parkland dedication practices and the proposed Parkland Dedication Policy. The proposed changes to existing practices are identified in bold text. Dedication of land or equivalent funds for: residential subdivisions condominium subdivisions consents Ontario Planning Act Existing Parkland Dedication Practices Proposed Parkland Dedication Policy 5% 5% 5% 5% 5% 5% 5% 5% 5% Minimum subdivision lot value $ $2, Dedication of land or equivalent funds for: commercial subdivisions condominium subdivision lot creation commercial development & redevelopment industrial development & redevelopment Environmental Protection Areas 0% 0% Accepted as parkland dedication on case by case basis Environmental Conservation Lands Accepted as parkland dedication on case by case basis Conveyed with no financial compensation Accepted as parkland dedication on case by case basis

3 Community & Development Services Report No. CDS Page 3 of 7 2. Land Valuation Legislation Ontario Planning Act In the event that land is dedicated for park and recreation purposes, the area of land is calculated based upon 5% of the development area, less environmental lands. In the event that cash-in-lieu is dedicated for park and recreation purposes, the value of the land must be established. Valuation of land for development that requires site plan approval, such as high density residential, commercial and industrial development must be valued pursuant to Section 42 of the Planning Act, based upon a serviced condition. Section 42 of the Planning Act states that land must be valued in a serviced state. The Planning Act provides for two different valuation methods for lot creation applications (plans of subdivision and consents). Section 51 of the Planning Act provides for such lots to be valued in an unserviced state, while Section 42 provides for the valuation of land based on a serviced state. The value of serviced land can be up to three times greater than that of unserviced land. The later method of land valuation for lot creation is being used increasingly across Ontario as it more accurately reflects the true value of an urban lot. This is important, since municipalities must pay fair market value when acquiring land for park purposes, as illustrated by Council s recent decision to purchase parkland in Crystal Beach at fair market value for serviced land (CDS /LC-15-07). The Town currently establishes cash-in-lieu of parkland land value pursuant to Section 51 of the Planning Act. The proposed Parkland Dedication Policy will change the Town s practice to value land pursuant to Section 42 of the Planning Act, which is consistent with many other Ontario municipalities and more fairly reflects market conditions. As provided in the Planning Act, valuation may be established through a market appraisal, or the assignment of a minimum fee per lot. Research indicates that municipalities across southern Ontario charge a minimum fee ranging from $1,200 per lot to $3,500 per lot. The Town s current minimum value is $ per lot. Research in January 2008 revealed that the lowest priced urban lot was valued at $40,000 in Crystal Beach. This report recommends establishing a minimum parkland dedication fee, per lot, of $2,000. This is calculated as 5% of the value of one of the lowest valued lots in the community. When a lot is of obviously of greater value than $40,000, the Town will value the land based upon an appraisal. The proposed Parkland Dedication Policy will increase the minimum parkland dedication fee, per lot, from $ to $2, Parkland Dedication Requirements throughout the Region The following table summarizes parkland dedication policies and requirements throughout the Region of Niagara. It is noteworthy that several area municipalities

4 Community & Development Services Report No. CDS Page 4 of 7 currently value residential land (Plan of subdivision and lot creation) based upon the methods proposed in this policy. Commercial/ Industrial/Other Only for subdivision and consent 5% Residential Residential Valuation Date Fort Erie (Proposed) Yes Section 51- At time of draft approval of subdivision Grimsby Yes Yes Section 42- at time of Building Permit Lincoln Yes Yes Section 42- at time of Building Permit Niagara Falls Yes - Tourism Yes Commercial Section 51- At time of draft approval of subdivision. Considering change to Section 42. Niagara on the Lake Yes Yes Section 42- at time of Building Permit Pelham Yes Yes Section 51- At time of draft approval of subdivision Port Colborne Yes Yes Section 42- at time of building permit St. Catharines No, but assessing Yes Section 51 at time of draft approval of subdivision Valuation Method or Appraisal Purchase Price Appraisal/ negotiated Appraisal Appraisal Appraisal Appraisal Appraisal Wainfleet Yes Yes NA Appraisal Welland Yes Yes Section 51- At time of draft Appraisal approval of subdivision West Lincoln Yes Yes Section 51- At time of draft approval of subdivision. Considering change to Section 42. Appraisal 4. Solicitor Review At the time of preparation of the draft Parkland Dedication Policy in 2007, the Director of Legal and Legislative Services had not yet been hired. The Director of Legal and Legislative Services has since reviewed the proposed policy, applicable legislation and relevant Ontario Municipal Board rulings, and supports the recommendations of the policy. Minor changes in the structure and formatting of the policy have occurred, as a result of the solicitor s review. 5. Stakeholder Consultation Two categories of stakeholders were consulted regarding this proposed policy and the recommended changes to Town practices: developers and park stakeholders. Stakeholders were consulted on a one-on-one basis. As expected, parkland stakeholders unanimously support the generation of additional revenue that would be dedicated to the improvement of and addition to existing

5 Community & Development Services Report No. CDS Page 5 of 7 parkland facilities. Stakeholders ranged from sports groups to service clubs to fundraising committees. Through the extensive consultation process undertaken as part of the Parks and Open Space Master Plan, through which 38 community groups were consulted, the availability of funding for parkland development and financial support of the Town was identified as an issue of concern. Staff has had an opportunity to informally discuss this with various developers and home builders who are active in the community during the past several months. As expected they are concerned with any additional costs/contribution imposed. They wish to insure that the policy and contribution amounts are consistent across Niagara. It is noted that this policy also affects non-developers and individuals engaged in severance approval. Staff have had limited consultation with this group. Financial/Staffing Implications Based upon an assessment of existing park and outdoor recreation facilities, the projected growth of Fort Erie, and the Parks and Open Space Master Plan, the 2008 five-year capital forecast identifies an average annual investment of approximately $450,000 towards the improvement of these facilities. This excludes the development of new parks as required by new development, which is funded through development charges, and also excludes the acquisition of new parkland. Based upon current practices, the Town collects an average of $100,000 per year from parkland dedication charges, for improvements to parks and outdoor recreation facilities, as illustrated in the following table. This represents an annual funding gap of approximately $350,000. Cash-in-Lieu Parkland Dedication $65,100 $92,475 $122,475 $108,475 $52,450 $141,429 $122,770 Increasing the cash-in-lieu parkland dedication fees will generate additional revenue that will close this funding gap and increase opportunities to meet the parkland needs of the community. It is anticipated that based upon 160 units per year, implementation of this policy will generate a minimum of $350,000 per year, reducing the funding gap from $350,000 per year to $100,000 per year. No funds have historically been allocated to parkland development from the general levy. While Council has historically directed funds to parkland development from gaming revenue, and was able to direct $75,000 from gaming revenue in 2008, Council intends to reduce allocations from gaming revenue to zero in the upcoming years. Policies Affecting Recommendation (s) The proposed parkland dedication policy supports several of Council s strategic objectives, by generating adequate resources to implement the recommendations of the Parks and Open Space Master Plan, reducing funding dependency on gaming revenue, ensuring a more sustainable funding source, and ensuring that all

6 Community & Development Services Report No. CDS Page 6 of 7 development-related costs and fees are consistent, legislatively justified and effectively communicated. Recent provincial directives relative to density targets will result in higher density development in Fort Erie. Current parkland dedication practices do not provide for the appropriate calculation of parkland dedication for high-density development. Due to the number of units per hectare, high-density development will place greater pressure on existing park and recreational facilities, which will result in the need for expansion and/or improvements. The Ontario Planning Act allows a municipality to require, as a condition of development or redevelopment, the dedication of land or cash-in-lieu of land, for public park and public recreation purposes. The Act defines the percentage of land that may be taken, as well as how and when land is valued. The Parks and Open Space Master Plan, as approved by Council on November 27, 2006, identifies the need to establish a clear policy and by-law relative to parkland dedication to ensure that the appropriate type, quality and quantity of land is conveyed to the Town in support of the Town s parkland development requirements. The proposed by-law will result in a significant impact on the quality of life of residents by stabilizing the funding source for parkland development to ensure that adequate land and funding are available for public park and recreation purposes to serve the needs of the community for the next twenty years. Comments from Relevant Departments/Community and Corporate Partners The proposed changes to the Parkland Dedication By-law, while in keeping with the provisions of the Planning Act, will have an impact on development in the community. Park users and stakeholders are supportive of this recommendation, as it will result in increased services to park users. The development community is generally opposed to this policy, as it will increase development costs, which must be passed onto homebuyers. Alternatives Council may elect to maintain the current practices of the Town relative to parkland dedication, which would result in the expansion of the forecasted funding gap. This alternative is not recommended.

7 Community & Development Services Report No. CDS Page 7 of 7 Conclusion The provision of adequate and appropriate parkland and open space is essential to the health of a community and quality of life of its residents. This By-law represents a holistic strategy for Council to address Fort Erie s ongoing parkland needs. Attachments Appendix 1 Proposed Parkland Dedication By-law Appendix 2 Report CDS

8 APPENDIX 1 TO ADMINISTRATIVE REPORT CDS DATED MAY 5,2008 ~.o>,.?,- /it, The Municipal Corporation of the Town of Fort Erie BY-LAW NO. xx-08 BEING A BY-LAW TO ESTABLISH A POLICY FOR PARKLAND DEDICATION OR PAYMENT OF CASH-IN-LIEU AS A CONDITION OF DEVELOPMENT OR REDEVELOPMENT File No WHEREAS Section 42(1) of the Plarzrzi~zg Act, R.S.O. 1990, Chapter P.13, as amended (the "Act") provides that as a condition of development or redevelopment of land, the council of a local municipality may, by by-law applicable to the whole municipality or to any defined area or areas thereof, require that land in an amount not exceeding, in the case of land proposed for development or redevelopment for commercial or industrial purposes, two percent () and in all other cases five percent (5%) of the land be conveyed to the municipality for park or other public recreational puiposes, and WHEREAS Section 42(6) of the Act provides that the council of a local municipality may require the payment of money to the value of the land otherwise required to be conveyed under this section in lieu of the conveyance, and WHEREAS Section 42(6.4) of the Act provides that the value of the land shall be determined as of the day before the day the building permit is issued in respect of the development or redevelopment or, if more than one building permit is required for the development or redevelopment, as of the day before the day the first permit is issued, and WHEREAS public recreational areas and parkland are deemed essential for the welfare of the residents, and it is therefore necessary and expedient to ensure adequate funding for the recreational and cultural needs of the Town; and WHEREAS parkland conveyance provisions are set out in the Fort Erie Parks and Open Space Master Plan; and WHEREAS the Fort Erie Parks and Open Space Master Plan shall be used as a guide to Council in its decisions regarding parks and recreational facilities; and NOW THEREFORE the Municipal Council of The Co~poration of the Town of Fort Erie hereby enacts as follows: PART 1 - Definitions 1.1 In this by-law, (a) "Act" means the Plarzrzing Act, R.S.O Chapter P.13 as amended, or replaced from time to time; (b) "Applicant" means a person who has made an Application for the development or redevelopment of land; (c) "Appraisal7' means a fair market valuation of land prepared by an accredited Appraiser;

9 By-law No. XXX-08 Page 2 (d) "Appraiser" means a member in good standing of the Appraisal Institute of Canada, holding an Accredited Appraiser Canadian Institute or Canadian Residential Appraiser designation as appropriate; (e) "cash in lieu" means the payment of money to the value of the land otherwise required to be conveyed in lieu of parkland dedication; (f) "Council" means the Municipal Council of the Town; (g) "Cultural Heritage Lands" means landscapes, structures and buildings, archeological sites, moveable heritage and intangible heritage as defined in the Official Plan; (h) "development" means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of substantially increasing the size or usability thereof, and includes redevelopment; (i) "Director" means the Director of Community and Development Services of the Town, or designate; (i) "domestic establishment" means a single room or series of rooms of complementary use, operated under a single tenancy and operated as a housekeeping unit, used or intended to be used as a domicile by one or more persons and usually containing cooking, eating, living, sleeping and sanitary facilities; (k) "dwelling unit" means any part of a building or structure used, designed or intended to be used as a domestic establishment in which one or more persons may sleep and are provided with culinary and sanitary facilities for their exclusive use; (1) "high density" means more than 50 dwelling units per net hectare and permitting predominately such uses as apartment structures three storeys and above; (m)"minor additions" means the addition of less than 50% of the gross floor area of an existing development; (n) "Natural Heritage Lands" means Natural Heritage Features, Environmental Protection Areas, Environmental Conservation Areas, and Rehabilitation Areas as defined in the Official Plan; (0) "number of units proposed" means the total number of dwelling units proposed less any dwelling units that have been or will be demolished; (p) "Official Plan" means the Official Plan of the Town of Fort Erie in force and as amended or replaced from time to time; (q) "parkland dedication" means land required to be conveyed to the Town for park or other public recreational purposes; (r) "Parks and Open Space Master Plan" means the Parks and Open Space Master Plan of the Town of Fort Erie approved by Council on November 6,2006; (s) "redevelopment" means the removal of a building or structure from land and the further development of the land or substantial renovation of a building or stritcture and a change in the character or density of the use in connection therewith. (t) "residential use" means that the predominant use of land shall be for dwelling units of varying densities;

10 By-law No. XXX-08 Page 3 (u) "Town" means the Town of Fort Erie; (v) "number of units proposed" means the total number of dwelling units proposed less any dwelling units that have been or will be demolished; PART 2 - Application and Administration of By-law 2.1 This By-law applies to all lands within the boundaries of the Town. 2.2 Public recreational areas and parkland are deemed essential for the welfare of the residents, and the requirements of the Parks and Open Space Master Plan is therefore to provide such areas at the rate of 5 hectares per 1,000 population. 2.3 Payment of cash in lieu of parkland dedication, or parkland dedication, pursuant to Sections 4.1 and 6.1 of this by-law, or a combination thereof (as may be determined in the sole discretion of the Director) are required as a condition of the following approvals for developnlent or redevelopment: a. the approval of site plans under section 41 of the Act on lots of record; b. a conveyance of land to which a by-law passed under subsection 50(7) of the Act applies; c. the approval of a plan of subdivision under section 51 of the Act; d. a consent under section 53 of the Act; e. the approval of a description under section 50 of the Condornirziurn Act as amended or replaced from time to time; or 2.4 In accordance with Section 42(7) of the Act, if land has been conveyed or is required to be conveyed to the Town for park or other public recreational purposes or a payment of money in lieu of such conveyance has been received by the Town or is owing to it under this section or a condition imposed under Section 51.1 or 53, no additional conveyance or payment in respect of the land subject to the earlier conveyance or payment may be required by the Town in respect of subsequent development or redevelopment unless, a. there is a change in the proposed development or redevelopment which would increase the density of the development; or b. land originally proposed for development or redevelopment for commercial or industrial purposes is now proposed for development or redevelopment for other pulposes. 2.5 The Director, or designate is delegated authority to administer the provisions of this bylaw. 2.6 This by-law shall be read and applied fairly with such variations as circumstances or the nature of the subject matter require provided the general purpose, intent, meaning and spirit of the by-law are maintained. 2.7 Nothing in this by-law shall be construed so as to fetter the discretion of the Director in determining whether to obtain parkland dedication by way of conveyance of land or cash in lieu.

11 By-law No. XXX-08 Page 4 PART 3 - Non-Application of By-law 3.1 Parkland dedication or payment of cash in lieu of parkland dedication shall not be required in the following situations: a. additions or alterations to existing individual residential units; b. minor additions or alterations to existing commercial, industrial and other nonresidential buildings; c. the redevelopment of residential properties for replacement of residential uses that were demolished or destroyed by fire, accidental causes or other natural causes, provided that the density of the new development, in the discretion of the Director, is generally the same as the density which previously existed; d. the redevelopment of commercial, industrial, or other non-residential properties that were demolished or destroyed by fire or other natural causes, provided these uses are replaced with similar non-residential, commercial, industrial or institutional uses, approved by the Director. 3.2 The provisions of this by-law shall not apply to the development or redevelopment of any land for which a building permit has been issued prior to the date of enactment of this bylaw. PART 4 - Parkland Dedication 4.1 The Town shall require the conveyance of land suitable for park or other public recreational purposes as a condition of the subdivision of land, development or redevelopment of land, pursuant to the Act. All conveyances shall be made in accordance with the criteria and standards set out in the Parks and Open Space Master Plan at the following rates: a. In the case of land proposed for development or redevelopment for commercial or industrial purposes, the required land conveyance shall be two percent () of the land, and b. In the case of land proposed for development or redevelopment for residential and all other purposes, the required land conveyance shall be five percent (5%) of the land, or at the rate of one (1) hectare of land for each 300 dwelling units proposed, whichever is greater. PART 5 - Natural Heritage Lands 5.1 Environmental Protection Areas, as defined in the Official Plan, shall he gratuitously conveyed to the Town through the development review process and shall not be accepted by the Town as land for parkland dedication, nor included in the calculation thereof. 5.2 The Town, where appropriate and in compliance with the parkland dedication policies of the Parks and Open Space Master Plan, may consider Environmental Conservation Lands as defined in the Official Plan for parkland dedication where sufficient active parkland is already provided for the neighhourhood and/or comm~~nity and where the lands are of

12 By-law No. XXX-08 Page 5 particular value either because of their physical, social or environmental character, or because their location provides a link with other portions of the open space system. 5.3 Where undevelopable or Natural Heritage Lands are to be conveyed to the Town, the parkland dedication shall be calculated based upon the net area of developable lands. 5.4 Waterfront lands designated as Environmental Protection Areas in the Official Plan shall be gratuitously conveyed to the Town through the development review process and shall not he accepted by the Town as parkland dedication, nor included in the calculation thereof. PART 6 -Cash in Lieu of Parkland Dedication 6.1 The Town may require the payment of cash in lieu of parkland dedication by the Applicant under the following circumstances: a. Where the required parkland dedication fails to provide an area of suitable shape, size or location for development of public parkland. Generally, a parcel of land may be considered to be of unsuitable size if its area is less than 0.5 hectare. b. Where, using the guidelines established in the Parks and Open Space Master Plan, it is determined that the geographical area is well serviced with existing park and recreational facilities that are clearly adequate to serve the projected increase in population and no additional land requirements are needed. c. Where, osing the guidelines established in the Parks and Open Space Master Plan, funds are required to upgrade or expand existing parks or recreational facilities in the Neighbourhood Planning Area to meet the needs of the projected increase in population. 6.2 All lands conveyed to the Town for park or other public recreational purposes pursuant to this by-law shall be used for such purpose, but the Town may sell such lands at any time. 6.3 The Town may utilize any monies paid pursuant to Section 6.1 to acquire or develop land for park or other public recreational pulposes in any area of the Town, which Council considers necessary or desirable. 6.4 Where a cash in lieu payment is required, the said payment shall be made no later than immediately prior to the issuance of the first Building Permit. In accordance with the Act, the payment of cash in lieu shall be allocated to the Parkland Reserve Fund and shall be used for the sole pulpose of park or other public recreational purposes in accordance with the Act. In the event that land is sold as provided for in Section 6.2, then the sale proceeds shall be allocated to the Parkland Reserve Fund.

13 By-law No. XXX-08 PART 7 - Valuation Date 7.1 Pursuant to Section 42 of the Act, the value of land in respect of development or redevelopment shall be determined as of the day before the building permit is issued, or where more than one building permit is required, as of the day before the day the first building permit is issued. PART 8 - Valuation Calculation 8.1 Where the Director requires payment of cash in lieu of parkland dedication, the valuation of the land shall be calculated as follows: a. For existing lots, site plan approval and all other development or redevelopment applications, save and except subdivisions and consent to sever applications, the Applicant shall provide a copy of the TransferIDeed of Land to the property if the registration of the Transferneed of Land occurred less than twelve (12) months from the date of the approved application, and the transaction was at arm's length and not for a nominal consideration. Otherwise, the Applicant shall be required to provide an Appraisal by a qualified Appraiser to determine the value of land; b. For development or redevelopment of a subdivision and consent to sever applications, the Applicant shall be required to obtain an Appraisal of the lots and/or blocks prepared by a qualified Appraiser. The Appraisal shall be valid for a period of twelve (12) months, after which the Director may in his sole discretion require an updated Appraisal as of the valuation date. c. Notwithstanding subsections a) and b) above, under no circumstances shall the cash in lieu payment be less than the amount identified in Column 1 of Schedule "A" annexed hereto and forming part of this by-law, nor greater than the amount identified in Column 2 of the said Schedule "A". 8.2 All fees associated with all required Appraisals shall be the sole responsibility of the Applicant. 8.3 The Director may, in his discretion, determine that an Appraisal is not acceptable, and may require the Applicant to obtain a revised or further Appraisal, at the Applicant's sole expense. The Director shall make the final determination as to the Appraisal to be utilized. In the event the Applicant is in disagreement with the Director's determination, the Applicant may make the payment under protest, in which case, Section 42 of the Act shall apply. PART 9 - Short Title 9.1 The short title of this by-law will be the Parkland Dedication By-law.

14 By-law No. XXX-08 PART 10 - Corrections 10.1 Pursuant to the provisions of Sections 23.1 to 23.5 inclusive of the Municipal Act, 2001, as amended, the Clerk of the Town of Fort Erie is hereby authorized to effect any minor modifications or corrections solely of an administrative, numerical, grammatical, semantical or descriptive nature or kind to this by-law or its schedules as such may be determined to be necessary after the passage of this by-law. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS OF MAY, DAY Mayor Clerk I, Carolyn J. Kett, theclerk, of The Corporation of the Town of Fort Erie hereby certifies the foregoing to be a true certified copy of By-law No.--08 of the said Town. Given under my hand and the seal of the said Corporation this day of, 200.

15 By-law No. XXX-08 SCHEDULE "A" COLUMN 1 (MINIMUM CASH IN LIEU PAYMENT) $2, per lot or unit COLUMN 2 (MAXIMUM CASH IN LIEU PAYMENT) 5% of the value of the land otherwise required

16 APPENDIX 2 TO ADMINISTRATIVE REPORT CDS MAY 5,2008 Town of Fort Erie Community & Development Services Our Focus: Yozu Futzlre I Prepared for: Council-in-Committee Report No.: CDS ~~enda Date: April 2, 2007 ~ilb No.: Subject: 1 NEW PARKLAND DEDICATION BY-LAW Summary of Recommendations: THAT Council receive Report CDS , regarding the proposed Parkland - Dedication By-law for information purposes, and Council authorize staff to initiate consultation with stakeholders regarding the proposed Parkland Dedication By-law. List of Stakeholders: Residents and Property Owners Town of Fort Erie Developers and Builders in the Town of Fort Erie S. Hansen, OALA, MBA R. Mostacci MCIP, RPP H. Schlange, M.B.A Manager of Parks & Director, Community & Chief Administrative Officer Open Space Development Development Services 1s h

17 APPENDIX 2 TO ADMINISTRATIVE REPORT CDS MAY 5,2008 Community & Development Services Report No. CDS Page 2 of 7 Purpose of Report To provide Council with the draft Parkland Dedication By-law and seek authorization to initiate consultation with stakeholders to gain feedback relative to the proposed by-law. The purpose of the by-law is to establish a holistic strategy for Council and Staff, relative to the implementation of the parkland dedication policy provided for in the Ontario Planning Act. I Background The importance of parks and open space facilities as a core service and public amenity is critical to the functioning of individual neighbourhoods and the overall community. These facilities provide opportunities for recreation and socialization, promote the health and wellness of individuals, and provide environmental and economic benefits. Consistently, the provision of parks and open space ranks high as one of the most valued parts of any community. Based upon an assessment of existing park and outdoor recreation facilities and the projected growth of Fort Erie, the Parks and Open Space Master Plan estimates that an the investment of approximately 5.2 million dollars will be required over the next 15 years for the improvement of existing parks and sportslrecreation facilities and the acquisition and development of new parks, in order to meet the needs of the community. Parkland development and redevelopment may be funded in a variety of ways. Funding sources include fundraising initiatives, donations and grants; the general levy; gaming revenue; development charges for new park development; and parkland dedication. In the past, the Town has utilized all of these techniques to varying degrees. Until the mid 1990s, much of the community's park development resulted from the donation of funds from service clubs, to construct and upgrade facilities such as Ridgeway Lions Field Park, Sugarbowl Park and United Empire Loyalist Park (Ott Road Park). Since the late 1990s, parkland development has been funded more significantly by gaming revenue, and by way of partnerships with agencies such as the Region, Canadian Niagara Power, the Peace Bridge Authority and the Niagara Parks Commission for the construction of the Friendship Trail, Energy Field and Riverwalk, respectively. The Town also generates revenue for parkland development through parkland dedications and development charges, which are levies on new development authorized by the Ontario Planning Act. Parkland development has typically not been funded through the general levy.

18 APPENDIX 2 TO ADMINISTRATIVE REPORT CDS MAY 5,2008 Community & Development Services ) Analysis Report No. CDS Page 3 of 7 Parkland dedication, as provided for in the Ontario Planning Act, is one the primary means by which a municipality typically acquires lands and/or funds for public park and recreational purposes. A parkland dedication strategy is required to give direction to the negotiations for parklands. This is important in light of the fact that Provincial environmental, planning and other initiatives are resulting in increased amounts of lands being deemed nondevelopable for various reasons, and that municipalities are under pressure to absorb more of these lands as part of the parkland dedication requirements. Such pressure could jeopardize the ability to secure tablelands for park-based activities, could result in some parks that are not in the preferred locations and could create a host of potential other challenges. A parkland dedication strategy is also important in light of the fact that gaming revenue, historically a major source of parkland development funding, has declined significantly and other funding opportunities must be identified and pursued. Sections 42, 51 and 53 of the Ontario Planning Act provides that as a condition of development or redevelopment of land, Council may require the conveyance of land in an amount of of commercial or industrial lands, and in the amount of 5% in all other cases, for public park or other public recreational purposes. When, for a variety of reasons, the dedication of land is not feasible the Act allows Council the requirement of payment to the value of the land otherwise required to be conveyed. The Town of Fort Erie does not currently have a parkland dedication by-law, however through policies in the Official Plan, has standard practices by which it implements the parkland dedication provisions of Sections 51 and 53 of the Planning Act. There is occasion to update these practices to reflect the opportunities provided for in the Planning Act and that of other Niagara and Ontario municipalities. In addition, the development of a by-law will serve to clearly identify Council's expectations relative to parkland dedication and parkland development, for both staff and the development community. The main issues pertaining to parkland dedication are outlined below and further discussed in more detail: Applicability - types of development to which parkland dedication requirements apply; Valuation - how land value is calculated; and Non-developable lands - types of land that is acceptable for parkland dedication. Applicability: A survey of Niagara municipalities indicates that all municipalities seek the dedication of 5% of land or equivalent funds for residential and other development, and all but one seek the dedication of of land or equivalent funds for commerciallindustriai development, as illustrated below.

19 APPENDIX 2 TO ADMINISTRATIVE REPORT CDS MAY 5,2008 Community & Development Services Report No. CDS Page 4 of 7 Valuation: For cash-in-lieu parkland dedication, Section 51 of the Planning Act provides for the valuation of land based on an unserviced state, prior to approval of the plan of subdivision. Section 42 of the Planning Acts allows for the valuation of land based on a serviced condition, prior to the issuance of a building permit. As required by the Ontario Municipal Board, when the later method is utilized, relevant development charges must be deducted prior to land valuation. The later method of land valuation is being used increasingly across Ontario as it more accurately reflects the true value of an urban lot and results in higher land values. This is important, since municipalities must pay fair market value when acquiring land for park purposes. As provided in the Planning Act, valuation may be established through a market appraisal, or the assignment of a flat fee per lot. Research indicates that municipalities across southern Ontario charge a flat fee ranging from $1,200 per lot to $3,500 per lot. Non-Developable Lands: Over many years, there have been considerable negotiations amongst municipalities and developers as to what type of lands a developer may dedicate as parkland dedication. The debate has focused on the dedication of lands such as ravine lands, wetlands, environmental lands, slopes and other non-developable lands, that are not suitable for the desired park functions, such as sportsfields, playgrounds, ancillary buildings and trails, or have safety and hazard conditions associated with them. In order to successfully implement park provision standards, parkland dedication requirements need to secure lands appropriate for development and redevelopment for park and recreational purposes. Existina Town Practices The Town's current Parkland Dedication requirements are as follows: Dedication of 5% of land or equivalent funds for all residential subdivisions, condominiums subdivisions and consents. The value of land is negotiated by staff based upon market appraisals; Dedication of of land or equivalent funds for commercial or industrial subdivisions, condominium subdivisions and lot creation. The Town does not currently require parkland dedication for all other types of commercial or industrial development; In instances where the Town takes cash-in-lieu of parkland outside of draft plan of subdivision, the Town generally collects $500 per lot based upon the estimated value of an unimproved/unserviced lot pursuant to section 51 of the

20 APPENDIX 2 TO ADMINISTRATIVE REPORT CDS MAY 5,2008 Community & Development Services Report No. CDS Page 5 of 7 Planning Act. For residential consent applications the amount varies with the value of the lot that is created, pursuant to Section 53 of the Planning Act. In some situations, a higher amount is collected where lakefront lots are proposed, due to the higher value of the land. The Town currently negotiates the dedication of non-developable parkland on a case-by-case basis. Proposed By-law As provided in Appendix 'I', the proposed.. Parkland Dedication By-law proposes changes to the owns currently practices, as follows: That a parkland dedication requirement be applied to all commercial and industrial development and redevelopment, pursuant to Section 42 of the Planning Act; That the 5% parkland dedication for residential and all other development be calculated based upon the value of a serviced lot. In instances where a flat fee is collected, this fee be increased to $2,100 per lot to more accurately reflect the current value of a serviced urban lot in Fort Erie, as provided for in Section 42 of the Planning Act and by the Ontario Municipal Board. This figure is based upon a calculation of 5% of an average serviced lot value of $55,000, less development charges. Environmental Protection Areas as defined in the Official Plan, including waterfront lands so classified, are gratuitously conveyed to the Town and do not form part of the parkland dedication calculation. They may still be available for passive public use however. Environmental Conservation Lands as defined in the Official Plan, may be accepted by the Town as parkland dedication where appropriate. With the Town already having significant open space lands, and in anticipation of an increased amount of non-developable lands coming into Town ownership, the Town may need to explore other management and funding supports related to lands of a National Heritage value. This could result in the need for a 'Land Trust' type strategy similar to the Nature Conservatory and other organizations who work in partnership with community organizations and granting bodies to fundraise, to develop technical capacities and to undertake other initiatives to more effectively manage and preserve these lands. I FinanciallStaffing Implications I Funds generated from cash-in-lieu of parkland dedications are allocated to the Parkland Reserve Fund specifically for public park or recreation purposes, which may include the acquisition of land (including waterfront lands) and development for park purposes and improvements to existing parks. The following table illustrates the revenue generated since 2001 from cash-in-lieu parkland dedication. The revenue generated from Cash-in- Lieu parkland dedications averages approximately $100,000 per year.

21 APPENDIX 2 TO ADMINISTRATIVE REPORT CDS MAY 5,2008 Community & Development Services Report No. CDS Page 6 of 7 Cash-in-Lieu Parkland Dedication 2007 To date $20, $92, $122, $108, $52, $141, $122,770 The estimated annual cost for park redevelopment (excluding land acquisition) for 2008 through is approximately $460,000, as identified in Table 9 of the Parks and Open Space Master Plan (Appendix '2'). This represents a funding gap of approximately $360,000 per year that must be made up by other revenue sources. Increasing the cash-in-lieu parkland dedication fees will generate additional revenue that will close this funding gap and increase opportunities to meet the parkland needs of the community. The Planning Act also allows for the taking of Development Charges for the development of new parkland resulting exclusively from new development (the 2007 rate being $1,104 per lot). As legislated, these funds may not be used for the acquisition of lands or the improvements to existing facilities. The Town commenced the taking of Development Charges for outdoor parks and recreation facilities in 2004, and 2007 revenue is estimated at $180,000 based upon the creation of 165 lots per year. The Parks and Open Space Master Plan estimated an annual expenditure of $270,000 for new park development resulting from new development, for the period of This represents a funding gap of approximately $90,000 per year. It is noted that the charge recommended via the Development Charge Study was reduced by 50% by Council at the time of its approval in I Policies Affecting Recommendation (s) The Town's Corporate Strategic Plan, as approved by Council on March 26, 2007, identifies priorities and goals relative to the development of the community. The proposed parkland dedication by-law supports several of the Land Use and Development and Financial Stewardship priorities, as follows: The proposed bylaw presents an opportunity for the planned growth and development of the community while recognizing the need to protect natural areas and parkland, Pursuant to Goal A3.1, increases public parks and open spaces by implementing a recommendation of the Parks and Open Space Master Plan, Pursuant to Goal C4.1, significantly reduces, with the intent to eliminate, dependency on Gaming Revenue for parkland development, Pursuant to Goal C5, aims to balance the burden of investment across current and future generations by recommending development related fees that are fair, justifiable and consistent with common practices across Niagara and Ontario. The proposed by-law will result in a significant impact on the quality of life of residents by ensuring adequate land and funding are available for public park and recreation purposes to serve the needs of the community for the next twenty years.

22 APPENDIX 2 TO ADMINISTRATIVE REPORT CDS MAY 5,2008 Community & Development Services Report No. CDS Page 7 of 7 The Ontario Planning Act allows a municipality to require, as a condition of development or redevelopment, the dedication of land or cash-in-lieu of land, for public park and public recreation purposes. The Act defines the percentage of land that may be taken, as well as how and when land is valued. The Parks and Open Space Master Plan, as approved by Council on November 27, 2006, identifies the need to establish a clear policy and by-law relative to parkland dedication to ensure that the appropriate type, quality and quantity of land is conveyed to the Town in support of the Town's parkland development requirements. ( Comments from Relevant DepartmentslCommunity and Corporate Partners I The proposed changes to the Parkland Dedication By-law, while in keeping with the provisions of the Planning Act, will have an impact on development in the community. For instance, presuming a residential developer passes on the cash-in-lieu parkland dedication fee to a homebuyer, the cost of a new home will increase by $1,600. Staff recommend consultation with relevant stakeholders to communicate the intent of the proposed by-law and ascertain the implications on local development. Staff recommend that the Director of Legal and Legislative Services review and provide comments on the proposed by-law. I Alternatives Council may elect to maintain the current practices of the Town relative to parkland dedication, which would result in the expansion of the forecasted funding gap. This alternative is not recommended. 1 Conclusion The provision of adequate and appropriate parkland and open space is essential to the health of a community and quality of life of its residents. This By-law represents a holistic strategy for Council to address Fort Erie's ongoing parkland needs. 1 Attachments Appendix 'I' - Draft Parkland Dedication By-law NOT ATTACHED Appendix '2' -Table 9: Parks and Open Space Master Plan Implementation Plan

23 TABLE 9 TOWN OF FORT ERIE PARKSANDOPENSPACEMASTERPLANIMPLEMENTATIONPLAN APPENDIX "2" TO ADMlNlSTATlVE REPORT CDS , APRIL 2,2007 NOTES - COSTS SnOAN ARE ESTIMAlED COhSTR,CTlOh COSTS fadltipl ED BY A I~ACTOR OF CO\IER ANCIL-ARY CAPllAL COSTS. DES GN AND CONTlNGEhCY PRIOR TIES ARE PROPOSED AT TnREE LEVELS b% Tn h EACrl lerm /\'BE NG TrlE nlghest PR ORlTY

24 APPENDIX "2" TO ADMlNlSTATlVE REPORT CDS , MAY 5,2008