Item - 2019.MM13.27

City Council on December 17 and 18, 2019, adopted the following:

1.  City Council request the Province to delay proclamation of the Development Charges Act changes until January 1, 2021, to allow for further engagement with the City, in order for the City to outline the significant impacts of these changes on the City’s finances, and to provide municipalities with adequate time to consult with stakeholders on updated policies and processes.
 

2.  If Council's request in Part 1 above is unsuccessful:
 

a. as permitted under Section 26.2 (3) of the Development Charges Act, City Council authorize the Chief Financial Officer and Treasurer to apply escalation charges to the "frozen" development charges payable for Site Plan and Rezoning Applications received on or after January 1, 2020 and before November 1, 2020:

i. at a rate of 1.5 percent per month consistent with the rate imposed under the City's Financial Control By-law for charges added to property taxes that are outstanding from the date of the Site Plan or Rezoning application to the date of payment; and

ii. so as to limit the total amount of interest payable with a goal of achieving revenue neutrality based on the previous Development Charges Act regime.

b. as permitted under Section 26.1 (7) of the Development Charges Act, City Council authorize the following interest charges for the new mandatory deferral and installment payments for rental, institutional and non-profit housing developments:

i.  for development applications that provide financial security in a form satisfactory to the Chief Financial Officer and Treasurer, such as a letter of credit, interest charges will be applied based on the City's cost of capital calculated from the date the development charges would have been payable under Section 26 of the Development Charges Act (e.g. building permit) to the date the instalment is paid; and

ii. for development applications that have not provided financial security in a form satisfactory to the Chief Financial Officer and Treasurer, interest charges will be applied at the higher of:

1. the Canadian Bank Prime rate plus five percent; or

2. the market rate for construction financing as determined by the City's Chief Financial Officer and Treasurer 

calculated from the date the development charges would have been payable under Section 26 of the Development Charges Act (e.g. building permit) to the date the instalment is paid; and

c. City Council authorize the Chief Financial Officer and Treasurer, the Chief Planner and Executive Director, City Planning and the Chief Building Official and Executive Director, Toronto Building to execute any other necessary agreements, in a form acceptable to the Chief Financial Officer and Treasurer and the City Solicitor, or take any other necessary actions related to the administration of the Development Charges By-law and requirements of Bill 108, as deemed appropriate to protect the City's financial interests including a review of the City's Development Charges By-law policies.