Developers push back against cost-sharing plans for urbanization work

KENILWORTH – ɫشýNorth has plans for road urbanization projects in Mount Forest totalling nearly $3 million.

On June 23 staff recommended cost-sharing agreements between the township and local developers for projects on Cork Street and Mount Forest Drive, but the developers are opposed the plan.

Sunvale Homes, Mamta Developments and Choice Properties complained about a lack of consultation, disputed the projects’ scale and cost distribution and asked council for deferrals.

The proposed work includes road reconstruction, storm sewers, curbs, gutters and sidewalks that township staff and engineer BM Ross say are needed to support future developments.

The urbanization on Cork Street would be between Princess and Martin Streets and cost $2 million:

  • $966,250 from the township;
  • $36,750 from Aiken Custom Framing;
  • $671,250 from Sunvale; and
  • $261,750 from Mamta.

On Mount Forest Drive the proposed project includes $900,000 of work, from Main Street to the dead end, with the township paying $593,000 and Choice Properties $307,000.

Council deferred decisions for both projects so staff and developers could negotiate scope and costs.

Sunvale Homes

Lawyer Amber Stewart, representing Sunvale Homes, said the company formally submitted an application for a subdivision on Cork Street in 2020, which included a traffic transportation impact study.

Since then, she said engineering reports “have clearly stated that there are adequate services in place, adequate infrastructure on Cork Street and that the development only needed to connect into these services and that there were not additional off-site transportation improvements that were required.”

The cost-sharing agreement came as “a complete surprise” to Sunvale Homes, Stewart said.

“My client wasn’t asked, wasn’t told that this cost-sharing proposal or study was in the works before it being provided to him in April of this year.”

She said Sunvale Homes was not notified it would be considered during the council meeting, but heard about it through other developers.

“If we hadn’t heard about it indirectly we wouldn’t even have known to be here to make a delegation.”

She noted while previous developers have contributed to urbanization projects, they have been “minor costs – which is what we expected as well.

“There’s a comment in the report about road widening and construction of Cork Street to urban standards and I think the question that we have is: why is a road widening required when it has not been something that’s been indicated in any of the consulting reports?”

Stewart added the costs can not be attributed to Sunvale’s development, causing “concern from a legal perspective about the township’s ability to impose a requirement to share in costs that are not reasonable, not required to accommodate this subdivision.

“If those costs are required as a matter of development, then they should have been included in a development charges (DC) bylaw.”

In Stewart’s opinion the urbanization benefits existing development, so “it’s simply not fair, especially on a surprise basis” to expect Sunvale to contribute nearly $700,000.

She said the developer is “reasonable and community-minded [and]would gladly participate in discussions with staff and with consultants to see if an appropriate and a reasonable cost-sharing arrangement can be put in place.”

If council approved the cost-sharing proposal, Stewart said Sunvale would “file an appeal to the [Ontario Land Tribunal].”

Stewart’s written deputation stated, “Sunvale Homes is not prepared to pay for any of the proposed works identified in the BM Ross report, beyond the works that were specifically agreed as being necessary to accommodate the proposed subdivision.”

She said the township’s delay in reviewing submissions, providing comments and approving plans has “grossly delayed the delivery of much needed housing units. The fact that the anticipated 2023 build-out was not achieved is attributed in large part to the township’s delay.”

Council’s only immediate response to Stewart’s submission was from Mayor Andy Lennox, who said, “The tone of the submission coming in for the deputation was not what I would expect from an organization that expects to cooperate.”

Stewart assured council Sunvale is “looking to collaborate and cooperate if it can be done.”

Mamta Developers

Engineer Travis Burnside delegated on behalf of Mamta Developments.

He described a local housing shortage and noted that DCs in ɫشýNorth are nearly $20,000 for a single family or semi-detached dwelling and over $15,000 for a townhouse – “costs which are passed on to the buyer.”

“These fees do not include any of the building permit fees or servicing costs,” he said. “The need to upgrade Cork Street is being driven by multiple developments, which therefore means this work should be funded through development charges.”

Mamta is set to pay $767,000 in DCs and Sunvale is set to pay $2.54 million, he noted.

“That’s $3.25 million to the [DC] reserves that could be used on this project. We believe there’s no legal basis to request this additional funding.”

He said other developers paid between $16,000 and $30,000 for urbanization work, and Mamta was expecting similar.

“The development is within the town boundary and Mamta … was not expecting to have to pay to upgrade the roads when they purchased the property,” Burnside said.

Once the vacant lands are developed “the township will receive significant tax revenue,” he noted.

“Many other municipalities in this market are trying to reduce costs to help housing developments get started,” Burnside noted, while “ɫشýNorth is proposing to add more costs on top of the [DCs].”

Lennox asked Burnside and Stewart how much was appropriate for developers to pay towards urbanization, and both said they did not have a number prepared, but that it could be discussed with staff.

“My client understands that there is a cost sharing obligation here,” Stewart said, and she believes “a mediated agreed solution … will be the most efficient path to bringing these units to the market.”

Choice Properties

Planner Robert MacFarlane represented Choice Properties and discussed the lack of notice about the cost-sharing agreement and that it would be considered by council.

“We only became aware on Thursday of this past week of this,” MacFarlane said, adding, “There’s no policy in the official plan that would warrant this staff report or recommendation or necessitate our client be obligated to provide the $307,000.”

MacFarlane attested DCs should be used for the work.

He said the proposed urbanization of Mount Forest Drive, which connects to agricultural lands behind Choice Properties’ site, “is not grounded in an identified need.”

Council, staff discussion

Councillor Steve McCabe asked if there was “wiggle room” for township staff and developers to meet and discuss the cost-sharing agreement.

CAO Brooke Lambert said negotiations were ongoing and called the proposed agreement a “starting point” and an “attempt to be as transparent and open as possible with all parties.”

She said “if there’s an opportunity to bring all the parties involved at one time I think staff would be open to that.”

McCabe asked if the costs were still negotiable and Lennox called the presented costs “staff’s best cost estimate at this point for the total project.

“If one or more of the developers think that they should not pay those costs then the choices are either ɫشýNorth, through the tax base, pays for more, or we change the scope of the project.”

Noting the discrepancy between the developers’ and township’s expectations for scope, Lennox said he’s open to deferring, though he expressed concern that would delay development.

Some of the work is essential and often “developments come into our community … without sidewalks or curbs and then we’re constantly playing catch up … I think it’s appropriate to do this at the time of development,” he noted.

“I want us to get to an equitable solution too, but I don’t want to defer this and have us sit in a logjam,” Lennox said.

McCabe asked what happened that led to the developers being under-informed.

Lambert said this was “the very first meeting we could get it to” and the information couldn’t be made public before it was ready.

“We felt it being made public at this time would be helpful for the discussions to get some direction from council and then continue the discussion with all parties involved,” she said.

Councillor Penny Renken asked about the number of children expected to move into the developments who would use the sidewalks to walk to school, and about possible traffic calming measures.

For the number of children, “it depends who buys the homes,” Lennox said.

Township infrastructure and engineering manager Tammy Stevenson said staff are working on a township-wide urban traffic impact study that would include traffic calming recommendations.

Councillor Sherry Burke declared a pecuniary interest regarding the urbanization of Cork Street, but participated in the discussion and decision around Mount Forest Drive.

“These folks should be brought to the table … to see how the urbanization supports their development,” Burke said.

Council discussed the need for sidewalks between Main Street and the end of Mount Forest Drive, particularly for high school students.

Councillor Lisa Hern expressed hope “we can come to some sort of equitable value,” noting sidewalks do increase the value of homes.

Lennox said he doesn’t know “how we’re going to get from where we are today to where everybody is going to be happy. And I’m not sure we’re ever going to get where everybody’s going to be happy.

“So I’m open to the deferral … but I do hope everybody comes to the table with a constructive approach that will help us get to a solution that’s suitable, not only for the developers but also for the people of ɫشýNorth.”

Council voted unanimously to defer a decision on the cost-sharing agreements.

For Mount Forest Drive, the deferral included a note that council confirms the need for sidewalks.

Reporter