REPORT TO

MAYOR AND COUNCIL

PRESENTED: MAY 4, 2009 - SPECIAL MEETING REPORT: 09-58

08-24-0040 / 08-25-0074
FROM: COMMUNITY DEVELOPMENT DIVISION FILE:
SUBJECT: DCC FRONTENDING AGREEMENT
BFW (WILLOUGHBY) DEVELOPMENTS LTD.
AND 0746344 BC LTD.

RECOMMENDATION(S):
That Council receive this report entitled “DCC Frontending Agreement BFW (Willoughby)
Developments Ltd. and 0746344 BC Ltd.”, for information; and further

That Council authorize staff to execute the DCC Frontending Agreement with BFW
Developments (Willoughby) Ltd. and 0746344 BC Ltd. in the substantial form of a document
presented as Attachment A, for the provision of off-site drainage infrastructure for the southeast
phase of the Yorkson Neighbourhood Plan area.

EXECUTIVE SUMMARY:
In June 2006, the Township received an application from BFW Developments (Willoughby) Ltd.
and 0746344 BC Ltd. (collectively the “Developer”) to rezone approximately 22.29 hectares and
4.52 hectares respectively, creating an estimated total of 699 units/lots in accordance with the
Yorkson Neighbourhood Plan. To support the development, the Developer is required to
construct a community detention facility and extend municipal trunk storm sewer to the site.

To finance and complete municipal services necessary to support the proposed development at
no cost to the Township, the Developer may be able to utilize one or more of the cost recovery
mechanisms available within the provisions of the Local Government Act (the “Act”) and the
Community Charter (the “Charter”). These mechanisms include Latecomer Agreements,
Development Works Agreements (DWA) and Development Cost Charge (DCC) Frontending
Agreements.

The Township supports the Developer’s proposal to apply for a DWA and a DCC Frontending
Agreement to minimize DWA charges imposed on the benefitting lands. Previously, Council
received and gave First, Second and Third readings to the Development Works Agreement
bylaw in March 2009 and subsequently adopted the bylaw in April 2009. The attached DCC
Frontending Agreement is intended to work in harmony with the DWA to partially compensate
the Developer for the upfront costs associated with the construction of the community servicing
needs to allow development of the southeast phase of the Yorkson Neighbourhood Plan area.

PURPOSE:
The purpose of this report is to obtain Council’s approval to execute a DCC Frontending
Agreement with BFW Developments (Willoughby) Ltd. and 0746344 BC Ltd.
DCC FRONTENDING AGREEMENT
(BFW (WILLOUGHBY) DEVELOPMENTS LTD.
AND 0746344 BC LTD.)
Page 2 . . .

BACKGROUND/HISTORY:
In June 2006 the Township received an application from BFW Developments (Willoughby) Ltd.
and 0746344 BC Ltd. (collectively the “Developer”) to rezone approximately 22.29 hectares and
4.52 hectares respectively, creating an estimated total of 699 units/lots in accordance with the
Yorkson Neighbourhood Plan. Council considered and gave First and Second readings to the
corresponding bylaws in February 2008 and the required public hearing was held in March
2008. At its meetings of April 9, 2008 Council considered and gave Third reading, and
subsequently adopted the bylaws on March 23, 2009.

To satisfy the rezoning servicing requirements, the Developer is required to construct a

community detention facility as well as extend municipal trunk storm sewers to the site. These
works will benefit other lands located in the southeast phase of the Yorkson Neighbourhood
plan area. The Local Government Act and Community Charter allow the Developer to use cost
recovery mechanisms such as a Development Works Agreement and DCC Frontending
Agreement.

The Township supports the Developer’s proposal to apply for a DCC Frontending Agreement
and a Development Works Agreement. Council received and gave First, Second and Third
reading to Drainage Development Works Agreement (BFW Developments (Willoughby)
Ltd./0746344 BC Ltd.) Bylaw 2009 No. 4726 on March 23, 2009 and subsequently adopted the
bylaw on April 6, 2009.

The attached DCC Frontending Agreement and previously adopted DWA provides the
Developer a cost recovery mechanism to potentially compensate them for a portion of the
upfront costs associated with the construction of the community detention facility and trunk
storm sewer required to facilitate the development of the southeast phase of the Yorkson
Neighbourhood Plan area.

DISCUSSION/ANALYSIS:
The DCC Frontending Agreement (The “Agreement”) proposed by the Developer is a cost
recovery mechanism, similar in concept to a DWA in that the cost of the proposed infrastructure
is to be allocated to new growth within a specified benefitting area with no cost to the Township.
Where the proposed Agreement differs from a DWA is in the following areas:

x The recovery of the costs is limited to DCCs that will be collected from development
within the benefitting area over the term of the Agreement and does not include an
additional charge;
x There is no requirement for a bylaw approval process; and
x The petition process, which is a mandatory requirement for a DWA, may not be required
subject to provisions outlined in the Community Charter.
DCC FRONTENDING AGREEMENT,
(BFW (WILLOUGHBY) DEVELOPMENTS LTD.
AND 0746344 BC LTD.
Page 3 . . .

The proposed DCC Frontending Agreement is for drainage works only. These drainage works
are identified in the current 2008 DCC program and scheduled for construction within the next
15 years. The works have been estimated to have a total design and construction cost of
approximately $1.14M. The Agreement is intended to have a term of 15 years, over which
DCC’s collected from the specified benefitting area shall be forwarded to the Developer, up to a
maximum cost as prescribed in the DCC Program. This second agreement provides the
Developer with more assurance of cost recovery whilst providing the Township with necessary
community related infrastructure to support development in the southeast phase of the Yorkson
Neighbourhood Plan area.

Applicable Policies:
Other existing Township bylaws and policies relevant to the attached Development Cost Charge
Frontending Agreement are Subdivision and Development Control Bylaw 1994 No. 3335, as
amended; Latecomer Policy No. 07-402; and Neighbourhood Plan Policy No. 07-220.

Financial Implications
There are not expected to be any financial implications to the Township as the works are
financed by the Developer. The municipal processing and administration costs are borne by the
Developer, at an annual rate of $500.00.

Respectfully submitted,

David Anderson
MANAGER, DEVELOPMENT ENGINEERING
for
COMMUNITY DEVELOPMENT DIVISION

DA/dh

ATTACHMENT A DCC Frontending Agreement

 Attachment A

TOWNSHIP OF LANGLEY
DEVELOPMENT COST CHARGES FRONTENDING AGREEMENT

Projects 08-24-0040/08-25-0074

THIS AGREEMENT dated for reference the ______ day of _________________, 2009.

BETWEEN:

TOWNSHIP OF LANGLEY, a municipal corporation under the Local

Government Act of the Province of British Columbia and having its
offices at 20338 65 Avenue, Langley, British Columbia V2Y 3J1

(Hereinafter known as the "Township")

OF THE FIRST PART

AND:

BFW Developments (Willoughby) Ltd.

#100 – 20120 64 Avenue
Langley, BC V2Y 1M8

and

0746344 BC Ltd.
#201 – 12837 76 Avenue
Surrey, BC V3W 2V3

(collectively the "Developer")

OF THE SECOND PART

A. WHEREAS the registered Owners in fee simple of the Benefiting Area are identified in
column five entitled “Registered Owner” in Schedule “A”, attached hereto (the Owners”).

B. AND WHEREAS the real property within the Specified Benefiting Area is identified in
column four entitled “Legal Description” in Schedule “A”, attached hereto (the “Benefiting
Parcel”).

C. AND WHEREAS the real property within the Specified Benefiting Area is illustrated in
Schedule “B”, attached hereto (the “Benefiting Area”).
D. AND WHEREAS a Storm Sewer and related appurtenances as described in Schedule “C” are
required to be constructed.

E. AND WHEREAS the developer shall undertake the performance of its obligations required to
be made pursuant to this Agreement

F. AND WHEREAS the Works are not currently scheduled for construction by the Township,
but are contained within the Township’s Engineering Servicing Plan.

G. AND WHEREAS the Developer has requested that the Township advance the construction of
the Works and has agreed to facilitate such construction for the development of the Benefiting
Area.

H. AND WHEREAS Section 937.1 of the Local Government Act, R.S.B.C. 1996, c.323 and
amendments thereto (the “Act”) authorizes Council to enter into an agreement with the
Developer for the provision of storm sewer by the Developer.

I. AND WHEREAS Council adopted Development Works Agreement Bylaw 2009 No. 4726 on
April 6, 2009 authorizing the parties to enter into this Agreement pursuant to Section 937.1 of
the Act, providing for the construction of the Works by the Developer.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the sum of

TEN ($10.00) DOLLARS of lawful money of Canada and other good and valuable
consideration now paid by each of the parties hereto, to each of the other parties hereto, the
receipt whereof is hereby acknowledged, the parties hereto hereby covenant, promise and
agree with each other as follows:

1. DEFINITIONS

In this Agreement and in the recital above:

"Act" means the Local Government Act, R.S.B.C. 1996, chapter 323, as revised, re-enacted or
consolidated from time to time and any successor statute;

"Agreement" means this agreement and all Schedules attached hereto;

"Benefiting Area" means the real property described in Schedule “B” attached hereto;

"Capital Cost" means actual costs incurred or proposed to be incurred by the Developer to
construct the Works which costs are estimated at $1,139,160.64;

"Council" means the elected Council of the Township of Langley;

"Developer" means collectively BFW Development (Willoughby) Ltd. and 0746344 BC Ltd.;

"Development Cost Charge” means a charge imposed pursuant to the Development Cost
Charge Bylaw;
 "Development Cost Charge Bylaw" means the Township of Langley Development Cost
Charge Bylaw 2004, No. 4385, enacted by the Township under the Act as such Bylaw is
amended or replaced from time to time;

“Development Works Agreement” means Development Works Agreement Bylaw 2009, No.
4726 adopted by Council on April 6, 2009 authorizing the parties to enter into a development
works agreement pursuant to Section 933 of the Act;

"General Manager Engineering" means the General Manager, Engineering for the Township;

“Lot” means a development unit used either for single or multi-family use;

"Owners" means each of the registered owners in fee simple of the Benefiting Area as
identified in column five entitled “Registered Owner” in Schedule “A” attached hereto;

“Subdivision and Development Bylaw” means the Township of Langley Subdivision and
Development Control Bylaw, 1994, No. 3335, with amended Bylaw 1997 No. 3650, enacted by
the Township under the Act as such Bylaw is amended or replaced from time to time;

"Term" means the period of time this Agreement is in effect as specified in Section 4;

“Township” means the Corporation of the Township of Langley having its municipal office
located at 20338 65 Avenue, Langley, British Columbia, V2Y 3J1; and

“Works” means Storm Sewer and related appurtenances as described in Schedule “C”.

2. AREA SUBJECT OF AGREEMENT

The Benefiting Area is the subject of this agreement.

3. CREDIT FOR WORKS

(a) In consideration of the Developer entering into and fulfilling its obligations under
Development Works Agreement Bylaw 2009, No. 4726 passed on April 6, 2009 the
Township agrees to credit the Developer the Drainage Development Cost Charge for
each additional lot created within the Benefiting Area but shall not exceed
$1,139,160.64 (adjusted when actual costs are determined) without interest.

(b) In the event of the assignment or transfer of the rights of the Developer voluntarily, or
by operation of law, the Township shall credit any benefits accruing hereunder, after
notice, to such successor for the Developer as the Deputy Director of Finance, in his
judgment deems entitled to such benefits; and in the event o conflicting demands
being made upon the Township for benefits accruing under this Agreement, then the
Township may at its option commence an action in interpleader joining any party
claiming rights under this Agreement, or other parties which the Township believes to
be necessary or proper, and the Township shall be discharged from further liability
upon crediting the person or persons whom any court having jurisdiction of such
interpleader action shall determine, and in such action the Township shall be entitled
to recover its reasonable legal fees and costs, which fees and costs shall constitute a
lien upon all funds accrued or accruing pursuant to this Agreement.

4. TERM

(a) The term of this Agreement shall commence upon the execution date by the Township
and shall expire no later than fifteen (15) years after that date (the “Term”).

(b) In the case that the Developer fails to complete the Works within twenty-four (24)
months after the agreement execution date, this Agreement shall lapse; provided,
however, that the Developer may request to extend the period of this Agreement on
such terms and conditions that the Township may deem reasonable.

(c) This Agreement shall terminate prior to the expiry of the Term in the event the
Developer has been credited with the principal sum of $1,139,160.64 (adjusted when
the actual costs are determined) without interest.

5. INDEMNITY

The Developer covenants and agrees to indemnify and save harmless the Township against:

(a) All actions and proceedings, costs, damages, expenses, claims and demands
whatsoever and by whomsoever brought by reason of the construction, installation,
maintenance or repair of the works; and

(b) All expenses and costs which may be incurred by reason of the construction,
installation, maintenance or repair of the works.
6. MUNICIPALITY’S COSTS

The Developer shall pay to the Township, by cash or bank draft, prior to the Township
executing this Agreement, a fee equivalent to $7,500.00, for the preparation, registration and
administration of this Agreement.

7. NOTICES

(a) Any notice, demand, acceptance or request required to be given hereunder in writing
shall be deemed to be given if either personally delivered or mailed by registered mail,
postage prepaid (at any time other than during a general discontinuance of postal
services due to a strike, lockout or otherwise) and addressed to the Developer as
follows:

Developer (collectively BFW & 0746344 BC Ltd.)

c/o McQuarrie Hunter, in trust
10430 144 Street
Surrey, British Columbia V3T 4V5

Attention: Michael Kendler

or such change of address as the Developer has, by written notification, forwarded to

the Township, and to the Township as follows:

Township of Langley
20338 65 Avenue
Langley, B.C. V2Y 3J1

Attention: General Manager, Engineering

cc: Deputy Township Clerk

or such change of address as the Township has, by written notification, forwarded to

the Developer.

(b) Any notice shall be deemed to have been given to and received by the party to which
it is addressed:

i) if delivered, on the date of delivery; or

ii) if mailed, then on the fifth (5th) day after the mailing thereof.

8. BINDING ON SUCCESSORS

(a) It is hereby agreed by and between the parties hereto that this Agreement shall be
enforceable by and against the parties, their successors and assigns.
 (b) The Developer shall not assign or transfer its interest in this Agreement without the
prior written consent of the Township, which consent shall not be unreasonably
withheld.

9. ENTIRE AGREEMENT

This Agreement constitutes the entire Agreement between the parties hereto with respect to
the subject matter hereof and supersedes any prior agreements, undertakings, declarations or
representations, written or verbal, in respect thereof.

10. LAWS OF BRITISH COLUMBIA

This Agreement shall be interpreted under and is governed by the applicable laws of Canada
and the Province of British Columbia.

11. SCHEDULES

The Schedules attached hereto, which form part of this Agreement, are as follows:

(a) Schedule “A” – Owners and Benefiting Parcel.

(b) Schedule “B” – Benefiting Area
(c) Schedule “C” – Works
IN WITNESS WHEREOF this Agreement has been executed as of the day and year first above
written.

THE CORPORATION OF THE )

TOWNSHIP OF LANGLEY )
By its authorized signatories: )
)
______________________ )
DIRECTOR OF COMMUNITY ) DEPUTY TOWNSHIP CLERK
DEVELOPMENT )
)
)
)
)
WITNESS ) WITNESS
)
)
)
)
)
BFW DEVELOPMENTS (WILLOUGHBY) LTD. ) WITNESS
As per their duly appointed signatory(s): )
)
)
)
)
)
0746344 BC LTD. ) WITNESS
As per their duly appointed signatory(s): )
)
)
)
)
)
 SCHEDULE “A”
OWNERS AND BENEFITING PARCELS

Civic Address Net

Map Parcel
St./ Legal Description Registered Owners Developable
ID Identifier No.
Ave. Area (ha)
Mangat, Kamail Singh
Dhaliwal, Gurminder Singh
Lot 24, Section 25, Twp 8, NWD, Amtract Construction Ltd.
1 012-006-131 20931 80 Ave 1.99
Plan 1137 Choice Developments Ltd
787 Development Ltd
Pooni Development & Investments Ltd.
Kundan, Jarnail Singh
Kundan, Baljeet Singh
Lot 25, Sec 25, Twp 8, NWD, Plan Jandu, Ravinder Singh
2 012-006-157 20981 80 Ave 2.02
1137 Jandu, Jit Singh
Kundan, Harcharan Singh
Kundan, Surinder Kaur

R.A.B. Ventures #1 Ltd.

Lot 26, Sec 25, Twp 8, NWD, Plan
3 002-337-479 21027 80 Ave Benchmark Management Ltd. 1.98
1137
Progressive Construction Ltd.

Lot 27, Sec 25, Twp 8, NWD, Plan

4 012-006-181 21055 80 Ave PRL Construction Ltd. 2.00
1137

Lot 28, Sec 25, Twp 8, NWD, Plan

5 012-006-211 21097 80 Ave 0746344 BC Ltd 1.89
1137

Lot 4, Sect 25, Twp 8, NWD, Plan

6 004-212-801 21130 81A Ave 0746344 BC Ltd 0.65
71855

Lot 3, Sec 25, Twp 8, NWD, Plan

7 004-212-797 21174 81A Ave 0746344 BC Ltd 1.01
71855

8 004-212-762 21133 80 Ave Lot 1, Sec 25, Twp 8, NWD, 0746344 BC Ltd 0.97

Lot 2, Sec 25, Twp 8, NWD, Plan

9 004-212-771 21187 80 Ave 0755013 BC Ltd 1.09
71855

Progressive Construction Ltd.

Lot 10, Sec 24, Twp 8, NWD, Plan
10 011-945-419 20940 80 Ave Benchmark Management Ltd. 2.02
1578
R.A.B. Ventures #1 Ltd.
 Net
Map Parcel
Civic Address Legal Description Registered Owners Developable
ID Identifier
Area (ha))

Progressive Construction Ltd.

Lot 11, Sec 24, Twp 8, NWD, Plan
11 012-236-047 20982 80 Ave R.A.B. Ventures #1 Ltd. 2.06
1578
Benchmark Management Ltd.

Progressive Construction Ltd.

Lot 12, Sec 24, Twp 8, NWD, Plan
12 001-482-939 21008 80 Ave R.A.B. Ventures #1 Ltd. 2.04
1578
Benchmark Management Ltd.

R.A.B. Ventures #1 Ltd.

Lot 13, Sec 24, Twp 8, NWD, Plan
13 004-588-355 21070 80 Ave Progressive Construction Ltd. 2.02
1578
Benchmark Management Ltd.

R.A.B. Ventures #1 Ltd.

Lot 14, Sec 24, Twp 8, NWD, Plan
14 004-672-224 21118 80 Ave Progressive Construction Ltd. 2.07
1578
Benchmark Management Ltd.

R.A.B. Ventures #1 Ltd.

Lot 15, Sec 24, Twp 8, NWD, Plan
15 012-236-055 21146 80 Ave Benchmark Management Ltd. 2.03
1578
Progressive Construction Ltd.

Progressive Construction Ltd.

Lot 16, Sec 24, Twp 8, NWD, Plan
16 003-722-791 21168 80 Ave Benchmark Management Ltd. 2.14
1578
R.A.B. Ventures #1 Ltd.

17 .93
Progressive Construction Ltd.
Lot 23, Sec 24, Twp 8, NWD, Plan
012-236-136 20939 77A Ave Benchmark Management Ltd.
1578
R.A.B. Ventures #1 Ltd.

17a 1.01

18 .95
Benchmark Management Ltd.
Lot 22, Sec 24, Twp 8, NWD, Plan
012-236-128 20965 77A Ave Progressive Construction Ltd.
1578
R.A.B. Ventures #1 Ltd.

18a 1.01

19 .94
Benchmark Management Ltd.
Lot 21, Sec 24, Twp 8, NWD, Plan
012-236-110 21005 77A Ave Progressive Construction Ltd.
1578
R.A.B. Ventures #1 Ltd. 50% of Net
Developable
19a
Area
.54
 Net
Map Parcel
Civic Address Legal Description Registered Owners Developable
ID Identifier
Area (ha)

20 1.10
Benchmark Management Ltd.
Lot 2, Sec 24, Twp 8, NWD, Plan
012-236-101 21051 77A Ave Progressive Construction Ltd.
1578
R.A.B. Ventures #1 Ltd. 50% of Net
Developable
20a
Area
.45

21 2.00
R.A.B. Ventures #1 Ltd.
Lot 19, Sec 24, Twp 8, NWD, Plan
012-236-080 21095 77A Ave Benchmark Management Ltd.
1578
Progressive Construction Ltd. 50% of Net
Developable
21a
Area
.02

Lot 18, Sec 24, Twp 8, NWD, Plan

22 012-236-071 21115 77A Ave 0761304 BC Ltd 2.01
1578

Lot 17, Sec 24, Twp 8, NWD, Plan

23 012-236-063 21165 77A Ave 0761304 BC Ltd 2.10
1578

Lot 24 Sec 24, Twp 8, NWD, Plan

24 012-236-144 20932 77A Ave 77A Avenue Holdings Ltd. 1.71
1578

Lot 1, Sec 24, Twp 8, NWD, Plan

25 012-809-683 20966 77A Ave Royale Properties (Yorkson) Ltd. .85
80093

Lot 2, Sec 24, Twp 8, NWD, Plan

26 012-809-691 20967 76 Ave Royale Properties (Yorkson) Ltd. .65
80093

Lot 26, Sec 24, Twp 8, NWD, Plan

27 012-244-821 21022 77A Ave Guo, Dihua 1.73
1578

Lot 27, Sec 24, Twp 8, NWD, Plan

28 003-672-875 21052 77A Ave Yip, Jay Fong 1.97
1578

Lot 28, Sec 24, Twp 8, NWD, Plan

29 012-244-830 21112 77A Ave Whitelaw, Lenora Madelene 2.00
1578
 Net
Map Parcel
Civic Address Legal Description Registered Owners Developable
ID Identifier
Area (ha)

Lot 29, Sec 24, Twp 8, NWD, Plan

30 004-041-593 21132 77A Ave Bahga Enterprises Ltd. 1.92
1578

Lot 3, Sec 24, Twp 8, NWD, Plan

31 012-244-848 21180 77A Ave GSK Developments Ltd. 1.16
1578
 SCHEDULE “B”
BENEFITING AREA
 SCHEDULE “C”

DESCRIPTION OF THE WORKS

Oversizing cost for drainage works consisting of approximately 450 linear meters of 1350mm
diameter storm sewer, 360 linear meters of 1500mm diameter storm sewer and oversized manholes,
having an estimated Capital Cost of $1,139,160.64, all in accordance with the Langley Development
Cost Charge Bylaw 2007 No. 4640, as per design drawings numbers 062520A, 1 to 40 inclusive by
H.Y. Engineering Ltd