RE: Agreement to Defer Payment of Development Charges (Reliable Ford Ltd.)

Transcription

1 Report to Council To: Mayor Linton and Members of Council Prepared By: Patricia Rutter, Economic Development Officer Report: PLN Date: 30 May 2016 RE: Agreement to Defer Payment of Development Charges (Reliable Ford Ltd.) Recommendation: THAT the Council of the Township of Centre Wellington pass a bylaw authorizing the Mayor and Clerk to enter into an agreement with Reliable Ford Ltd. to defer payment of Development Charges for the property located at 990 Tower Street, South, Fergus. Summary: Reliable Ford is in the process of constructing six (6) new service bays to the rear of their property at 990 Tower St. South, Fergus. The new 3,750 sq ft addition will allow for the expansion of their service business and result in approximately 4 new jobs for service technicians. The owner, Greg McCabe, needs additional time to seek long term financing for the project and seeks a deferral of his development charges. Report: Section 27 of the Development Charges Act allows a municipality to enter into an agreement with the owner of a property for the payment of DC s earlier or later than they are normally due. Payment of DC s is normally due when a building permit is issued, pursuant to the Act, and as required by both the Township and the County Development Charge by-laws. As well, the Township Development Charge By-law allows for the deferral of the payment of these fees or enter into a payment plan over a defined time period. In this case, the applicant, Reliable Ford Ltd. is asking for a deferral of payment of approximately $33,000 in township development charges until June 30, This will allow them to prepare a longer term financial plan to finance the project. As Council may be aware, financing of development charges is not typically done and financing for buildings and equipment occurs once construction starts. In this case, the applicant has a need to expand his business and feels that additional time will allow him to plan for the new facility. Financial Implications: Development Charges owing on this property are approximately $33,

2 Consultation: Consultation with the Managing Director of Corporate Services. Attachments: Schedule A - Draft By-law and Agreement Schedule B - Letter from Reliable Ford Approved By: Brett Salmon, Managing Director of Planning and Development Andy Goldie, Chief Administrative Officer

3 The Corporation of the Township of Centre Wellington By-law 2016-XXX Being a By-law to authorize the Mayor and Clerk to Execute an Agreement for the Deferral of Development Charges between Reliable Ford Ltd. and the Corporation of the Township of Centre Wellington WHEREAS section 27 of the Development Charges Act, S.O. 1997, authorizes a municipality to enter into an agreement to require payment of a Development Charge before or after it would otherwise be payable, and; WHEREAS, the owner of Reliable Ford Ltd has requested that the Township enter into an agreement to defer payment of the Development Charge applicable to their development; NOW THEREFORE the Council of the Corporation of the Township of Centre Wellington enacts as follows; 1. The Mayor and Clerk are hereby authorized and directed to execute an Agreement for the Deferral of a Development Charge between Reliable Ford Ltd. and the Corporation of the Township of Centre Wellington in substantially the same form as that attached hereto as Schedule A. 2. This By-law shall come into force and take effect on passing. READ A FIRST AND SECOND TIME this 30 th day of May, Mayor Clerk READ A THIRD TIME AND FINALLY PASSED this 30 th day of May, Mayor Clerk

4 THIS DEVELOPMENT CHARGE PAYMENT DEFERRAL AGREEMENT made in triplicate this 30 th day of May, 2016 pursuant to section 27 of the Development Charges Act, 1997, as amended (the Act ) BETWEEN: THE CORORATION OF THE TOWNSHIP OF CENTRE WELLINGTON (herein called the Township ) PARTY OF THE FIRST PART and RELIABLE FORD LTD. (herein called the Developer ) PARTIES OF THE SECOND PART WHEREAS: a. The Developer has applied for a building permit, to construct an addition to their facility located at 990 Tower St. South, Fergus. (the Site ); b. Township and Wellington County have passed by-laws establishing Development Charges which pursuant to the Act are to be paid at the time when a building permit is issued; c. Pursuant to section 27 of the Act the Township is authorized to enter into agreements to require payment of a Development Charge before or after it would otherwise be payable and the Developer has requested that the Township enter into an agreement to defer payment of the Development Charge until a later time; NOW THEREFORE IN CONSIDERATION of the premises and the mutual covenants herein contained the Parties agree: 1. Developer intends to construct a new facility with a floor area of square metres on the Site, 2. The parties agree that payment of development charges for Township and County purposes for square metres shall be due and payable on Friday, June 30, This agreement shall enure to the benefit of and shall be binding upon each of the parties and their respective heirs, executors, administrators, successors and assigns. IN WITNESS WHEREOF the parties have hereunto set their hands and seals or where applicable have caused to be affixed their corporate seals under the hands of their duly authorized officers in that behalf; THE CORORATION OF THE TOWNSHIP OF CENTRE WELLINGTON Mayor Kelly Linton Kerri O Kane, Clerk We have authority to bind the Corporation SIGNED, SEALED AND DELIVERED In the presence of: RELIABLE FORD LTD. Greg McCable Witness I have authority to bind the Corporation

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