Principles for Inclusion in a Parkland Dedication Bylaw

 The Economic Development Committee recommends that Principle A(7) contained in the following report (July 9, 1998) from the Commissioner of Economic Development, Culture and Tourism be amended by adding at the end thereof the words:

 "and that the Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee as part of any development proposal."

 so that the said Principle A(7) now reads as follows:

 "(7) Delegation of Authority

 It is recommended that Council delegate approval authority to the Commissioner of Economic Development, Culture and Tourism for choosing a land or cash-in-lieu of land dedication and for the attributes of the conveyance, and that the Commissioner of Economic Development, Culture and Tourism report to the Economic Development Committee as part of any development proposal."

 and that the report, as so amended, be adopted:

 The Economic Development Committee submits the following report (July 9, 1998) from the Commissioner, Economic Development, Culture and Tourism:

 Purpose of Report:

 The purpose of this report is to seek Council's approval of the principles to be contained in a harmonized Parkland Dedication Bylaw. A bylaw is required to provide a single approach to Parkland Dedication for the new City in place of the six that presently exist in each of the former local municipalities.

 Source of Funds:

Although the parkland dedication and cash-in-lieu of parkland dedication is a source of considerable revenue for the City, there are no direct funding requirements of the Parks Dedication Bylaw.

 Recommendations:

(1)That the principles contained in this report be approved; and

 (2)that the appropriate City Officials take the necessary action to give effect thereto.

 Discussion:

 Section 42 of the Planning Act gives the City the authority to require a parkland dedication upon the development or redevelopment of land. It is necessary to develop a Parkland Dedication By-law that will bring consistency to the parkland dedication requirements of Toronto across all of its regions, until such time as a new Official Plan and corresponding Bylaws are adopted.

 Bylaws and procedures in the former municipalities currently differ in amounts of parkland required, granting of exemptions, and in other aspects within the framework of the Planning Act. All of the former local municipalities have parkland dedication bylaws in place at this time.

 The Parkland Dedication Bylaws of the former municipalities have had a major impact on the provision of the Parks and Recreation infrastructure in Toronto. Over the past five years, the bylaws have resulted in financial contributions of $17.7 million used towards the provision of Parks and Recreation property and facilities. In addition, the City has acquired over 29 acres of land for parks purposes and received other benefits from development.

 Implementation of Council's policy regarding parkland dedication is accomplished through two vehicles: a statutory Bylaw as prescribed in the Planning Act; and through City Policies and Procedures related to the implementation of the bylaw. Matters covered under the latter will be delegated to the appropriate staff for action.

(A)Matters For Inclusion in the By-Law

 It is recommended that the Bylaw cover and give the City authority in the following areas.

(1)Definitions

 Generally, all definitions within the Bylaw will be consistent with those found in the Ontario Building Code. Terms not found in the Ontario Building Code, or those requiring further details will be defined in the Bylaw.

(2)Exemption of Parkland Dedication for Industrial Applications

 It is recommended that the City not require conveyance of parkland dedication or cash-in-lieu of parkland dedication for industrial development or redevelopment. Industrial land uses traditionally generate the least demand for parks and revenues derived from this sector of development have historically been the lowest contributor to parkland reserves. For these and other reasons, the Economic Development, Culture and Tourism Department recommends the exemption of industrial land uses from a parkland dedication requirements. The former municipalities of Scarborough, East York, Toronto, and York currently exempt industrial development from a parkland dedication requirement.

 It is estimated that, on average, a parkland dedication from industrial development could provide revenues to the City of $75,000 to $125,000 annually, or about 1% to 2% of the total revenues possible from cash-in-lieu of parkland dedication.

(3)Commercial Dedication

 It is recommended that the City require conveyance of land equal to 2% of the value of the development site for parkland dedication or cash-in-lieu of a parkland dedication for commercial development or redevelopment.

 Commercial land uses create a demand for park space (e.g. lunch-time respite from offices, after work sports, etc.), although it is somewhat less than that created by residential land uses. As permitted in the Planning Act, the lower 2%level of dedication reflects this reduced level of demand. Furthermore, areas of commercial concentration such as the Toronto City core are deficient in parks. Parkland dedication on commercial developments can play a role in addressing these deficiencies.

 The former municipalities of Scarborough and East York currently do not apply a commercial dedication requirement; all other municipalities made it a requirement of development. Based on historical data, commercial parkland dedication requirement could generate land and/or cash-in-lieu of parkland of approximately an average amount of $500,000 to$750,000 annually across all of Toronto. This represents about 14% of the total revenues possible from cash-in-lieu of parkland dedication.

(4)Residential Dedication

 It is recommended that the City require conveyance of land equal to 5% of the value of the development site for parkland dedication or cash-in-lieu of a parkland dedication for residential development or redevelopment.

 The Planning Act also permits municipalities to require a higher parkland dedication from high density residential uses. This is known as the "alternate requirement". It is also recommended that the Bylaw implement the "alternate requirement" policies contained in Official Plans of the former municipalities. This would exist only until the Department brought forth a consistent, City-wide approach to parkland dedication from high density residential developments as part of the new Official Plan. Adoption of this interim measure would ensure the application of the "alternate requirement" to the City.

 Only East York currently exempts residential developments from a parkland dedication requirement. All other municipalities make it a requirement of development. Based on historical revenues, it is estimated that a residential parkland dedication requirement will generate cash-in-lieu of parkland of approximately an average amount of $3 to $4 million annually across Toronto in addition to the land that will be conveyed. This represents about 85% of the total revenues possible from cash-in-lieu of parkland dedication.

(5)Exemptions to the Parkland Dedication Requirements

 It is recommended that the City exempt the following developments or redevelopments from the Parkland Dedication Bylaw:

• Schools, Colleges, Universities, and related educational uses;
• Places of worship, cemeteries, etc;
• Institutional uses including ancillary administrative space;
• Social housing projects funded by the City or any of its agencies;
• Replacement building destroyed by an act of God;
• The first 500 square metres of development or redevelopment; and
• Certain geographic exemptions that existed in the former municipalities.

 Granting of exemptions would also be available to Council on a case by case basis if parks needs were met by the applicant in other ways.

(6)Valley Lands

 It is recommended that Council generally shall not accept lands below the top of bank of the escarpments, ravines, or river valleys for the purposes of satisfying parkland dedication requirements imposed under the Planning Act.

(7)Delegation of Authority

 It is recommended that Council delegate approval authority to the Commissioner of Economic Development, Culture and Tourism for choosing a land or cash-in-lieu of land dedication and for the attributes of the conveyance.

B)Policy and Procedure Matters

 It is recommended that the following issues be addressed within the City's Policies and Procedures:

(1)Formulas to Calculate Dedication Requirements

 A variety of situations present themselves from time to time that require policy to prescribe how dedication requirements are to be calculated. They include: mixed use developments, cash-in-lieu of parkland, and additions or alterations to existing buildings. The formulas for each will be developed based on best practices of the former municipalities.

(2)General Criteria for the Acceptance of Land or Cash-in-lieu

 The determination of a land or cash conveyance will be at the sole discretion of the City. Guidelines for acceptance of land shall be developed so that the City can be consistent in its requirements of developers. For example, the guidelines will seek to ensure that the conveyed land is: developable, of a useful size, location, configuration and topography, highly visible, publicly accessible, vacant and free of contaminants and any other attributes that are appropriate. These guidelines will be developed in consultation with other Departments including Urban Planning and Development Services.

 It is generally in the City's best interest to accept conveyances of land free and clear of all easements, encroachments, and any contaminants. Any exceptions could be dealt with case by case in accordance with approved policies.

(3)Land Valuation

 Appraisals shall be conducted or commissioned by City staff. The cost for appraisal services shall be recovered from the applicant. This process was used in several of the former municipalities and is the best practice. A separate report to the Corporate Services Committee is addressing this issue.

 Furthermore, to be responsive to the needs of the development community, it is recommended that a policy be established to allow an advance overpayment of the cash-in-lieu amount so that a Building Permit could be issued if required. Once an appraisal is completed, an appropriate adjustment can be made.

 Conclusion:

 These principles for an interim Parkland Dedication Bylaw are the product of collaboration amongst City staff representing various City Departments. Adoption of a Bylaw is proposed to harmonize the varying approaches to parkland dedication used by the former municipalities until such time as a new Official Plan and associated bylaws are established. With Council's direction/approval regarding the principles contained in this report, a bylaw will be developed for approval.

 As requested by the Budget Committee, a further report on the proposed use of these funds will be forthcoming.

 This report has been prepared in conjunction with staff from the Finance and Urban Planning and Development Services Departments, and the Legal, and Real Estate Divisions of the Corporate Services Department.

 Contact Name:

 John A. Macintyre,

Economic Development, Culture and Tourism Department, Metro Hall,

397-4451