May 18, 1999
PLANNING AND TRANSPORTATION COMMITTEE:
City Council, at its meeting held on May11 and 12, 1999, had before it Clause No.5 of Report
No.7 of The Urban Environment and Development Committee, headed "Further Report on
Proposed Use of Funds Generated from Cash-in-lieu of Parkland Dedication".
Council directed that this Clause be struck out and referred back to the Planning and
Transportation Committee for further consideration at its meeting to be held on June 14, 1999,
for report thereon to Council for its meeting to be held on July 6, 1999.
Council also directed that:
(1)a copy of the Clause be forwarded to the Community Councils with a request that they
submit their comments thereon to the Planning and Transportation Committee for
consideration at its meeting on June 14, 1999;
(2)the Commissioner of Urban Planning and Development Services submit a report to the
Planning and Transportation on a policy and mechanism, in the context of planning
applications, of identifying parks deficiencies and allocating funding therefor through the
budget process;
(3)the Commissioner of Economic Development, Culture and Tourism submit a report to
the Planning and Transportation Committee on all concerns expressed by Members of Council
in regard to park deficiencies, by district and community; and
(4)the Commissioner of Economic Development, Culture and Tourism and the
Commissioner of Urban Planning and Development Services submit a joint report to the
Planning and Transportation Committee on mechanisms for acquiring additional parkland in
areas that are parkland deficient.
for City Clerk
J. A. Abrams/gc
Encl.
Clause sent to:Planning and Transportation Committee
All Community Councils
Commissioner of Economic Development, Culture and Tourism
Commissioner of Urban Planning and Development Services
c.Chief Financial Officer and Treasurer
Budget Committee
CITY CLERK
Clause embodied in Report No. 7 of the Urban Environment and Development
Committee, which was before the Council of the City of Toronto at its meeting
held on May 11 and 12, 1999.
5
Further Report on Proposed Use of Funds Generated from
Cash-in-lieu of Parkland Dedication
(City Council on May 11 and 12, 1999, struck out and referred this Clause back to the
Planning andTransportation Committee for further consideration at its meeting to be held on
June 14, 1999, for report thereon to Council for its meeting to be held on July 6, 1999.
Council also directed that:
(1) a copy of the Clause be forwarded to the Community Councils with a request that they
submit their comments thereon to the Planning and Transportation Committee for
consideration at its meeting on June 14, 1999;
(2)the Commissioner of Urban Planning and Development Services submit a report to the
Planning and Transportation on a policy and mechanism, in the context of planning
applications, of identifying parks deficiencies and allocating funding therefor through the
budget process;
(3)the Commissioner of Economic Development, Culture and Tourism submit a report to the
Planning and Transportation Committee on all concerns expressed by Members of Council in
regard to park deficiencies, by district and community; and
(4)the Commissioner of Economic Development, Culture and Tourism and the
Commissioner of Urban Planning and Development Services submit a joint report to the
Planning and Transportation Committee on mechanisms for acquiring additional parkland in
areas that are parkland deficient.)
The Urban Environment and Development Committee recommends that the joint report
(March 17, 1999) from the Commissioner of Economic Development, Culture and
Tourism and the Commissioner of Urban Planning and Development Services be
adopted as an interim policy pending the adoption of a further report from the
Commissioners on an adjustment to the policy which would build in initiatives for
acquiring parkland in park deficient areas of the City.
The Urban Environment and Development Committee submits the following joint report
(March 17, 1999) from the Commissioner of Economic Development, Culture and
Tourism and Commissioner of Urban Planning and Development Services:
Purpose:
The purpose of this report is to respond to City Council's November 12, 1998 request for a
joint report from the Commissioners of Economic Development, Culture and Tourism and
Urban Planning and Development Services respecting the use of funds received by the City
from cash-in-lieu of parkland dedication requirements associated with development
applications.
Funding Sources, Financial Implications, and Impact Statement:
Financial Implications relate to the use of funds received by the City from cash-in-lieu of
parkland dedication in conjunction with development applications.
Recommendations:
It is recommended that:
(1)the Chief Financial Officer and Treasurer be authorized to establish a city-wide reserve
fund for cash-in-lieu of parkland collected by the City;
(2)as of January 1, 1999, funds accruing from revenues for cash-in-lieu of parkland be
allocated in the Capital Budget Program for the years 2000 and 2001, as follows:
(a)50 per cent for the purpose of acquisition of land for park purposes:
(i)of this amount, half of these funds (25 per cent of the total) to be retained to acquire land
for park or open space purposes in the district where the funds are generated and deficiencies
have been identified; and
(ii) the remaining half of this amount (25 per cent of the total) to be allocated on a city-wide
basis to purchase land for park or open space purposes in other areas of the City where
deficiencies have been identified; and
(b)50 per cent for the development and upgrading of parks and recreation facilities:
(i)of this amount, half of these funds (25 per cent of the total) to be retained for the
development and upgrading of parks and recreational facilities in the district where the funds
are generated and deficiencies have been identified; and
(ii) the remaining half of this amount (25 per cent of the total) to be allocated for the
development and upgrading of parks and recreational facilities on a city-wide basis, in areas
where deficiencies have been identified;
(3)the Budget Committee be advised with respect to Council's action resulting from this
report;
(4)this report be forwarded to each Community Council as a communication item; and
(5)the appropriate City Officials be authorized and directed to take the necessary action to
give effect thereto.
Council Reference:
At its meeting of October 28, 29 and 30, 1998, City Council struck out Clause No. 4 in Report
No.3 of The Economic Development Committee and referred this Clause to the Commissioner
of Economic Development, Culture and Tourism and the Commissioner of Urban Planning
and Development Services, with a request that they submit a joint report thereon to Council,
through the appropriate Committees.
Comments:
Both the September 8, 1998 report of the Commissioner of Economic Development, Culture
and Tourism and an earlier report (March 30,1998), to the Budget Committee, entitled,
"Parkland Dedication and Cash-in-lieu of Parkland Funds" recommended criteria for
allocating revenues obtained from cash payments in-lieu of parkland conveyances for approval
of development applications. These criteria were as follows:
(1)that any outstanding cash-in-lieu of parkland dedication payments relating to
developments which had obtained planning approval but had not yet received building
permits, be allocated for local expenditures, provided the payments were received by
December 31, 1998; and
(2)as of January 1, 1999, funds accruing from revenues for cash-in-lieu of parkland
dedication be allocated through the budget process and restricted as follows:
(i)50 per cent for the purpose of acquisition of lands for park purposes, on a city-wide basis,
having regard to both local and city-wide priorities; and
(ii)50 per cent for the development and upgrading of parkland and parks and recreation
facilities on a city-wide basis, having regard to both local and city-wide priorities.
At its November 12, 1998 meeting, Council did not adopt this recommendation, but referred
this matter to both the Commissioners of Economic Development, Culture and Tourism and
Urban Planning and Development Services for a joint report.
Difficulties with Current Allocation of Cash-in-lieu Funds:
The criteria for the use of cash-in-lieu revenues obtained in 1998 was largely based on the
historic allocation of these funds by the six former municipalities that comprise the City of
Toronto. Accordingly, the 1999 Capital Works Program included projects in the former
municipalities that were offset by cash-in-lieu funds generated in those municipalities.
This system was manageable for the 1999 Capital Budget due to the availability of
cash-in-lieu reserve monies in some of the former municipalities to fund earlier identified
projects, as well as, fund new projects. However, this system is unworkable over the longer
term, particularly for the implementation of large scale projects that have a city-wide draw,
such as city -wide parks. It will also hamper our ability to achieve the goal of service
harmonization in stable areas that are identified as being deficient in park and recreational
infrastructure but which cannot generate sufficient revenues from development projects.
There are differing views on how these funds could be allocated. Some Councillors, who are
experiencing growth in their Wards, would like to retain some or all of this money in their
Wards to finance park land acquisition and/or recreational facility development to meet the
needs of their existing and future residents. Others, particularly those in relatively stable areas
that are deficient of park land or recreational facilities, would like to achieve service
harmonization through some redistribution of these funds to areas that have historically been
under serviced.
There are several inherent problems with allocating all of these revenues within the Wards in
which they are generated. Some slower growing Wards may never be able to generate enough
funds from development or redevelopment to buy parkland or provide recreational amenities
to meet the needs of their communities. Any projects in these areas would have to compete for
other Capital Budget funds. Others may be able to generate enough funds to provide small
park and facility improvements, such as new playground equipment or water spray pads, but
not enough to fund larger projects, such as district parks, community centres or indoor pools,
which may be deemed as high priority needs for the area.
Additionally, many of these larger projects serve communities outside the Wards in which
they are located, so more pooling of these resources is needed to ensure better access and use
of these facilities, in order to achieve the City's goal of service harmonization for all of its
residents. A primary goal of amalgamation is to share resources and avoid duplication of
services. This goal can only be achieved through some pooling of these monies both at the
local and city-wide level.
It is recognized that areas that are experiencing rapid growth through intensification or green
field development will require retention of some of these cash-in-lieu funds in order to
provide adequate services to meet the needs of existing and future populations. Rather than
retaining a portion of these funds in the Ward in which they are generated, which in many
instances, would restrict their use to smaller scale projects or create duplication, it would be
much more cost effective and beneficial to retain a portion of these funds for pooling within
the district (East, West, North, and South ) in which they are generated, for either the
acquisition of new parkland (if it is determined that there is insufficient parkland in that
district) or the development of park and recreational facilities that have been identified as
priority items in the Capital Budget.
The East District would include all of the Wards within the Scarborough and East York
Community Council jurisdictions. The West District would include all of the Wards within
the boundaries of the Etobicoke and York Community Councils, while the North District
would include all of the Wards within the North York Community Council jurisdiction and
the South District would encompass all of the Wards within the Toronto Community Council
boundaries.
This money could be spent annually or left to accumulate for future land acquisition, park
upgrading or recreational facility projects, as determined by the needs of the district - East,
West, North and South - which would be identified by both staff and the local Community
Councils. For example, in the East District, both staff and the Scarborough and East York
Community Councils would determine the local priority projects in that district, based on
needs assessment studies. These projects would be identified and prioritized in the Capital
Budget process.
We are recommending that the remainder of these funds be allocated on a city-wide basis in
order to facilitate larger scale projects, which may be of city-wide significance, such as a
waterfront park system or which may serve several communities and possibly more than one
district, e.g. a large community centre. The city-wide pool of funds could also be used to
achieve service equalization opportunities, such as, the acquisition of new park land or the
development of recreation facilities in relatively stable areas where the needs are greatest.
In some cases, projects could receive funding allocations both from district and city-wide
sources, if they have city-wide significance, serve more than one district or provide services in
a high priority area that has been identified as under serviced. (City-wide projects would be
identified by studies and would be reviewed through the Capital Budget process).
Some pooling of funds would be beneficial to all as opportunities and efficiencies may be
maximized both at the local (district-wide) level and at the city-wide level. Community
Councils in each district would also have a greater role in determining how these monies are
spent locally.
Policy Framework
A brief overview of the parkland dedication and cash-in-lieu mechanisms available to the City
are presented below, along with an update on the development of a new city-wide Parkland
Dedication By-law . The policy context upon which longer term criteria will be developed for
determining how cash-in-lieu of parkland revenues will be allocated is also outlined.
Parkland Dedication By-law:
Section 42 of the "Planning Act" gives the City the authority to require either a parkland
dedication or a cash-in-lieu payment for the subdivision, severance, development or
redevelopment of land. Implementation of Council's policy regarding parkland dedication is
accomplished through the enactment of a Parkland Dedication By-law and through policies
and procedures related to the implementation of the By-law.
At present, the existing Parkland Dedication By-laws of the six former municipalities are still
in effect. Staff are currently working towards the harmonization of these by-laws into one
city-wide Parkland Dedication By-law. At its meeting of July 29, 30 and 31, 1998, City
Council adopted the report of the Commissioner of Economic Development, Culture and
Tourism (July9, 1998) which recommended principles for inclusion in a Parkland Dedication
By-law.
The City Solicitor, in consultation with staff in the Departments of Economic Development,
Culture and Tourism and Urban Planning and Development Services, is currently preparing a
draft city-wide Parkland Dedication By-law that will harmonize all of the provisions of the
existing parkland dedication by-laws and will include exemptions that are currently permitted
in these by-laws. This draft by-law will be submitted to the appropriate Standing Committees
in April or May of this year.
New City-wide Official Plan:
Staff in Urban Planning and Development Services and Economic Development, Culture and
Tourism are also working together to develop policies and criteria in the new Official Plan
that will identify growth areas and any parkland deficiencies, based on current and future
population projections. The Plan will include policies to protect and manage the City's green
space system, including environmentally sensitive lands, ravines, valleys, waterfront corridors,
utility and rail corridors, public rights-of-way, etc. and creating or restoring links between
elements of the green space system, including other public and privately owned green spaces.
Some of the studies that will be undertaken in the development of Official Plan policies
pertaining to open space and recreation amenities include:
-development of new City of Toronto parkland objectives;
-review of Official Plan parkland standards (both quantitative and qualitative);
-identification of open space and parkland deficiencies:
-review of land use implementation tools and criteria for use;
-review of open space, parkland and recreational amenity policies.
Community Centre Needs Assessment Study:
Staff in the Economic Development, Culture and Tourism Department are also conducting a
Needs Assessment / Feasibility Study of new community centres in five areas of the City that
have been identified as deficient in recreational facilities. A report on the results of this study,
which will include recommendations on the feasibility of these facility requirements, will be
submitted to the Economic Development Committee by late summer, 1999.
As a result of these assessments, more detailed funding allocations can be determined in the
Capital Budget Program. Upon completion of this work, other areas of the City will be
reviewed in terms of deficiencies in park and/or recreational facilities.
Land Acquisition Strategy:
In addition, staff in the Departments of Economic Development, Culture and Tourism and
Urban Planning and Development Services are working towards the development of a
city-wide land acquisition strategy, in conjunction with the Toronto Regional Conservation
Authority and others, which will include criteria for the acquisition of land for park,
conservation and natural heritage open space areas. This study will be completed in the last
quarter of 1999.
All of these efforts will assist us in developing a five year Capital Works Program and refining
our allocation of cash-in-lieu funds to maximize the provision of park and recreational
services in priority areas where needs have been identified.
Next Steps
The process of developing the new Official Plan for the City will involve incorporating the
results of the various needs assessment studies and the land acquisition strategy that will
provide a clear policy framework for identifying servicing opportunities and priorities that
could be included in the development of the five year Capital Budget. These Official Plan
policies will be based on population growth projections, desired service levels and
identification and prioritization of areas in need of parkland and/or recreation facilities. The
Plan will include strategies for fulfilment of the goals of service harmonization and the
expansion, protection and enhancement of the City's open space system.
Proposed Interim Criteria for Use of Cash-in-lieu Payments
Interim Solution:
As a guiding principle, all new funding either for parkland acquisition or for major park and
recreational facility developments should require the approval of needs assessment studies,
based on an inventory of existing parks and recreation facilities. This work will take some
time to complete, so in the short term, it is recommended that interim criteria be established
for how this money should be allocated in 1999 for the 2000 and 2001 Capital Budget
Programs. These criteria would take into account the need to provide sufficient parkland and
recreational facilities in areas where new growth is occurring, as well as, providing this
infrastructure in areas of the City that have been identified as under serviced at the time of
amalgamation. In this way, it is anticipated that over time, the goal of service equalization
throughout the City can be achieved.
In order to provide a system that is fair and equitable to all areas of the City, including those
areas where growth is occurring, as well as, stable areas which are identified as being under
serviced in terms of parkland and recreational facilities, the following revised criteria are
proposed for how cash-in-lieu funds should be allocated. These interim criteria will be
embodied in the proposed Capital Budget program for the years 2000 and 2001, until all of the
needs assessment studies are completed.
As of January 1, 1999, funds accruing from revenues for cash-in-lieu of parkland be allocated
in the Capital Budget Program for the years 2000 and 2001, as follows:
(a) 50 per cent for the purpose of acquisition of land for park purposes:
(i) of this amount, half ( 25 per cent of the total) of these funds to be retained to acquire land
for park or open space purposes in the district where the funds are generated and deficiencies
have been identified; and
(ii) the remaining half of this amount (25 per cent of the total) to be allocated on a city-wide
basis to purchase land for park or open space purposes in other areas of the City where
deficiencies have been identified; and
(b) 50 per cent for the development and upgrading of parks and recreation facilities:
(i)of this amount, half (50 per cent) of these funds to be retained for the development and
upgrading of parks and recreational facilities in the district where the funds are generated and
deficiencies have been identified; and
(ii) the remaining half of this amount (50 per cent) to be allocated for the development and
upgrading of parks and recreational facilities on a city-wide basis, in areas where deficiencies
have been identified.
The above noted interim criteria are intended to balance the need to provide parkland and
recreational services in areas of the City where new growth is occurring and which are not
adequately serviced, with the need to equalize the service provision in those areas that have
been historically under serviced and have been identified as priority areas. In an effort to
ensure fairness and equity across the City, these interim criteria would be reviewed on an
annual basis by staff and any deviations would be reflected in the Capital Budget reports
submitted for the years 2000 and 2001, in order to ensure that any high priority needs or
unique opportunities are addressed appropriately.
More permanent criteria will be developed for the five year Capital Budget Program, once all
of the aforenoted studies and plans are completed. At that time, a report on these criteria will
be submitted for consideration by the appropriate Standing Committees.
Other Revenue Sources
Development Charges:
An additional source of revenue for the development of park and recreational facilities may
become available if a Development Charge By-law is enacted by City Council. This by-law
would be subject to the provisions of the "Development Charge Act", 1997, which stipulates
that only charges for net capital costs due to increased service needs resulting from growth can
be applied. Eligible charges include capital costs to: improve land; acquire, lease, construct or
improve buildings or structures; acquire, lease or improve facilities; costs to conduct studies
associated with capital projects eligible for development charges; and pay interest charges on
money borrowed to pay for the aforementioned costs.
However, there are restrictions on how this money can be spent. While this money can be
pooled city-wide, it must be spent on specific growth related projects and cannot be used for
the acquisition of new parkland, except as part of a project development site, e.g. for a
recreational complex or community centre. There are also restrictions on the calculation of
need and the level of service that the City wants to provide. The service level for each service
cannot exceed the average level that was provided by the municipality over the last ten years.
This average service level may be lower than the desired service level that Council would like
to achieve in the future.
Therefore, although a Development Charge By-law would provide an additional source of
revenue to offset some of our park and recreational servicing costs related to growth, there are
certain restrictions in the calculation of the charges and the use of these funds. Because the
needs of existing populations cannot be included in the calculation of a development charge,
the goal of service equalization in older, relatively stable areas cannot be fulfilled by this
funding mechanism.
A joint study on development charges is currently being conducted by the Chief Financial
Officer, in conjunction with the Commissioners of Urban Planning and Development
Services, Works and Emergency Services, Economic Development, Culture and Tourism,
Corporate Services and the City Solicitor. A report is expected to be submitted to the
appropriate Committees later this spring.
Section 37 Agreements:
Section 37 agreements provide another source of revenue for certain types of development
applications. Section 37 of the "Planning Act", RSO 1996, authorizes the City to include
policies in the Official Plan that would enable it to pass by-laws to increase the height or
density of development in return for certain facilities, services or benefits.
Section 37 agreements are only applied in securing parkland benefits that are in excess of what
can be secured through the use of Section 42 provisions. Although these types of agreements
have been very successful in obtaining benefits for the City, the number of these agreements
may fluctuate from year to year, depending on market forces and are, therefore, quite variable
as a revenue source.
Conclusions:
The proposed interim criteria for the allocation of cash-in-lieu payments for parkland are
needed to determine the Capital Budget process for the year 2000 and 2001. This proposal is
both fair and equitable and recognizes the need to provide parkland and recreational facilities
in growth areas that require this infrastructure, along with the need to raise services levels in
stable areas where deficiencies have been identified and prioritized.
The new Official Plan's reinvestment policies and priority goal setting will guide the five year
Capital Budget process in sustaining, improving and enhancing the quality of life of the
residents of the City, which will include a review of the interim funding criteria for land
acquisition and facility development at both the district-wide and city-wide levels. Upon
completion of the Official Plan process and the various needs assessment studies for parks and
recreational facilities, these interim criteria will be reviewed and updated, as needed.
Contact Names:
Frank Kershaw Barbara Leonhardt
392-8199 392-8148
Diane Stevenson Ann-Marie Nasr
395-6065 392-0402)
(City Council on May 11 and 12, 1999, had before it, during consideration of the foregoing
Clause, the following report (April 27, 1999) from the City Clerk:
Recommendation:
That the joint report (March 17, 1999) from the Commissioner of Economic Development
Culture and Tourism and the Commissioner of Urban Planning and Development Services be
adopted.
Background:
At its meeting on April 23, 1999, the Economic Development Committee gave consideration to
the joint report (March 17, 1999) from the Commissioner of Economic Development, Culture
and Tourism and Commissioner of Urban Planning and Development Services, respecting the
use of funds received by the City from cash-in-lieu of parkland dedication requirements
associated with development applications, and recommending that:
(1)the Chief Financial Officer and Treasurer be authorized to establish a city-wide reserve
fund for cash-in-lieu of parkland collected by the City;
(2)as of January 1, 1999, funds accruing from revenues for cash-in-lieu of parkland be
allocated in the Capital Budget Program for the years 2000 and 2001, as follows:
(a)50% for the purpose of acquisition of land for park purposes,
(i)of this amount, half of these funds (25% of the total) to be retained to acquire land for
park or open space purposes in the district where the funds are generated and deficiencies
have been identified and,
(ii)the remaining half of this amount (25% of the total) to be allocated on a city-wide basis
to purchase land for park or open space purposes in other areas of the City where
deficiencies have been identified; and
(b)50% for the development and upgrading of parks and recreation facilities,
(i)of this amount, half of these funds (25% of the total) to be retained for the development
and upgrading of parks and recreational facilities in the district where the funds are
generated and deficiencies have been identified, and
(ii) the remaining half of this amount (25% of the total) to be allocated for the development
and upgrading of parks and recreational facilities on a city-wide basis, in areas where
deficiencies have been identified;
(3)the Budget Committee be advised with respect to Council's action resulting from this
report;
(4)this report be forwarded to each Community Council as a communication item;
(5)the appropriate City Officials be authorized and directed to take the necessary action to
give effect thereto.
The Urban Environment and Development Committee also considered this matter at its
meeting on April 19, 1999 and its recommendations in this respect are contained in Clause
No. 5 of Report No.7 which is before Council for its May 11, 1999 meeting. The Economic
Development Committee's recommendations are as noted above.)
(City Council also had before it, during consideration of the foregoing Clause, a
communication (April 22, 1999) from H-JEH Becker, Toronto, in support of the
recommendations of the Urban Environment and Development Committee respecting the use
of funds received by the City from cash-in-lieu of parkland dedication requirements
associated with development applications.)