Sorbara's Valleyview subdivision is spread over 60.05 hectares bound by
Maple Avenue, and west of the 10th Sideroad, north of agricultural
lands, and east of the South Simcoe Rail lands.
The Vaughan based development group, which is also building homes in
the Treetops subdivision, has proposed several scenarios to advance
development charges that would fix the value of the works to a set-upon
number of units.
"The Town's current practice included in standard development
agreements allows for the number of units the credits are recovered on
to vary, depending on the DC annual indexing over time," according to
Rayna Thompson, New Tecumseth Manager of Development Engineering,
report to council. "Fixing the value of the works to a specified number
of units does not allow the Town to realize additional DCs as a result
of indexing over time. This would essentially increase the value of the
credit and defer payment of future DC's to the Town which are much
needed to fund the Town's DC capital program. It is acknowledged that
this revised proposal includes a provision for a 5-year sunset date for
fixing the DC credit to a per-unit rate, which will limit the impacts
to the Town over the previous request. Inclusion of this revised front
funding principal into the Dayfoot Street Reconstruction Development
Agreement will continue to set a new precedent, and it is anticipated
that other developers within the Town will want the same principal
included in future Development Agreements, and possibly look to amend
Sorbara also wants the Town to impose on non‐participating benefitting
"the obligation to execute the Front Funding Agreement for the Works
within 30 days of issuance of the decision of Approval or execution of
a Development Agreement" or forfeit the approval.
"Other land owners in town should not get a free ride," Catherine Pan,
Sorbara's Development Manager, told councillors last night.
Ms. Pan said they recognize the Town's not in a position to draw $10
million from DCs to fund the project.
"We are keenly aware that this alternative would delay the work and put
it on the shelf for an indefinite period of time," she said adding the
"implications" of not moving forward also go beyond the development
interest. "The physical condition of
Dayfoot is in need of repair, it is unsafe. We've heard from the
community that portions are unlit, with deep ditches, and it's not a
place people would want their children walking around at night. Also a
large part of this project is bringing the watermain down from
Alliston to Tottenham and that is part of the Dayfoot work as well, and
that's a very important part of this discussion especially for the
community of Tottenham."
She reminded councillors that "development in Beeton cannot proceed
the upgrading of Dayfoot" and, "as time moves along the cost of Dayfoot
works continue to
escalate making it harder and harder for the Town or any other willing
developer to jump in and front fund the work."
"By our estimates, and also in the staff
report, that's over 1,000 residential units that cannot be built, that
are at a standstill. If you work it out at today's DCs rates, That's in
the order of $40 million worth of DC revenues that the Town does not
realize or is foregoing."
Councillors directed staff to continue meeting with Sorbara and with
the Hemson group working on the updated development charges background
study to come up with a deal. Council's final meeting of the year is
Dec. 11, and not again until Jan. 15, 2018.