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Request for Decision

Montrose Avenue Development Charge Credit and Cost Sharing Applications



Presented To: City Council
Presented: Tuesday, Aug 22, 2017
Report Date: Tuesday, Aug 01, 2017
Type: Managers' Reports



Signed By

Report Prepared By
Kris Longston
Manager of Community and Strategic Planning
Digitally Signed Aug 1, 17

Manager Review
Kris Longston
Manager of Community and Strategic Planning
Digitally Signed Aug 1, 17

Division Review
Jason Ferrigan
Director of Planning Services
Digitally Signed Aug 3, 17

Financial Implications
Apryl Lukezic
Co-ordinator of Budgets
Digitally Signed Aug 2, 17

Recommended by the Department
Tony Cecutti
General Manager of Growth and Infrastructure
Digitally Signed Aug 3, 17

Recommended by the C.A.O.
Ed Archer
Chief Administrative Officer
Digitally Signed Aug 3, 17

Resolution

THAT the City of Greater Sudbury approves the cost sharing and development charge credit applications by Dalron Construction Ltd. for the extension of Montrose Avenue from Forestdale Drive to Woodbine Avenue as recommended in the report entitled “Montrose Avenue Development Charge Credit and Cost Sharing Applications” dated August 1, 2017 from the General Manager of Growth and Infrastructure;

AND THAT the Executive Director of Finance, Assets and Fleet be directed to negotiate and enter into a Development Charge Credit agreement with Dalron Construction Ltd. for the extension of Montrose Avenue from Forestdale Drive to Woodbine Avenue;

AND THAT the General Manager of Growth and Infrastructure be directed to negotiate and enter into a Cost Sharing Agreement with Dalron Construction Ltd. for the extension of Montrose Avenue from Forestdale to Woodbine Avenue, which includes the parameters outlined in the report;

AND FURTHER THAT Development Charge Credits of 50% be funded from the Development Charges Reserve Fund - Roads and the Capital Financing Reserve Fund - Roads and the Cost Sharing portion of 25% be funded from the Growth Related Projects Capital Envelope from prior years.

Relationship to the Strategic Plan / Health Impact Assessment

This recommendation is consistent with Council's Strategic Plan.  Specifically, priority C under the Growth and Econonic Development pillar directs the City to "Provide a welcoming environment that is conducive to investment and reduction of red tape, by removing barriers and attracting new business."

Report Summary

Dalron Construction Ltd (Dalron)., the developer of the Nickeldale subdivision, has applied under the Policy on Development Cost Sharing 2016 for the City to consider alternative cost sharing measures and for a development charge credit agreement for the construction of Montrose Avenue from Forestdale Drive to Woodbine Avenue (see attached map). Montrose Avenue is an important north-south link, currently identified as a secondary arterial in the Official Plan, which is proposed to eventually connect Lasalle Boulevard to the future Maley Drive.

The eligible costs expended to date to construct this section of Montrose Avenue to Woodbine is approximately $1,204,000 and the eligible costs to complete the works is estimated to be approximately $286,000 for a total of $1,490,000. Dalron proposes a cost sharing/development charge credit breakdown of 50% development charge credits (estimated at $745,000), 25% City (estimated at $372,500) and 25% Developer (estimated at $372,500). It should be noted that there are additional costs associated with the construction of an extension to Woodbine Avenue that are ineligible and would be the responsibility of Dalron.

It is a principle of the City of Greater Sudbury Policy on Development Cost Sharing 2016 that the City has an interest in cost sharing in situations where there are demonstrated gains in closing the infrastructure gap and opportunities to upgrade infrastructure that would otherwise fall under the City’s capital programs. The cost sharing application for Montrose Avenue presents an opportunity for the City to share the cost to create a north south arterial road identified in the City’s Official Plan

Financial Implications

The estimated total eligible costs for the completion of Montrose Avenue from Forestdale Drive to Woodbine Avenue are approximately $1,490,000.  In 2016, Council approved that 50% of this cost would be development charge eligible. Dalron is proposing that the remaining eligible amount of approximately $745,000 be cost shared evenly between the City and Dalron.

There is a remaining uncommitted balance of approximately $1 million available for Roads/Drainage cost sharing projects from the Growth Related Capital Envelopes.  With the approval for Montrose Avenue, there would be an estimated remaining balance $627,500, with an additional $225,000 being proposed in the 2018 Budget.

Overall, the funding of the payment of DC credits to the Developer is from the Development Charges Reserve Fund- Roads and the Capital Financing Reserve Fund - Roads. The funding of the City portion of cost sharing costs is from the Growth Related Projects capital envelope.