Cash in Lieu of Parkland Review

Development Services Committee Dec 13, 2011

Presented by:
Walter Fischer
Parks Planning and Development
Infrastructure Planning Group
Engineering Department
Cash in Lieu of Parkland Review

Current Situation
Sections in the Planning Act outline requirements on the dedication of
parkland or cash-in-lieu of parkland as follows:
Sections 42.(1), 42.(6), 51.1(1) and 53.(12) of the Planning Act state in part
that the Municipality, as a condition of development or redevelopment of land,
may require that land in an amount not exceeding for Commercial or Industrial
purposes, 2% of the land, and in all other cases 5% of the land to be
conveyed to the Municipality for park or other public recreational purposes. In
lieu of the contribution, the Act further states the Municipality may request a
cash contribution equivalent to the value of the land to be conveyed.
Sections 42(6.4), 51.1(4) and 53(13) state the value of the land is to be
determined as of the day before the building permit is issued, the day before
approval of the draft plan, or the day before the Consent is given.
For Institutional uses, there is only one formula contained in the Planning Act
and that is 5% of the land or the cash equivalent.
Cash in Lieu of Parkland Review

In 1996, Council approved Resolution 96-P-22 amending By-law 89-341

to include fixed rates for cash in lieu (CIL) values on various applications:
$2,000.00 per dwelling unit for single family and semi-detached units;
$1,500.00 per unit for a medium and high density residential townhouse
development; and
$1,000.00 per unit for a medium and high density residential apartment
development
By-law 90-168 was also repealed.

Past practices has had staff calculate parkland dedication values based
on three options:
Percentages within the Planning Act;
Density formula of 0.4 hectares/120 residential units (or 1 hectare/300 units);
or
A fixed rate established by Council first in 1990 through By-law 90-168 and
later revised in By-law 96-62.
Cash in Lieu of Parkland Review

City typically uses the 5% residential or 2% commercial/industrial

calculations for projects such as subdivisions or large scale
commercial/industrial developments; the density formula for medium to
high density projects; and, the fixed rate per unit for small scale
developments or for new lots created by the Committee of Adjustment.

Within the current 96-62 Parkland Dedication By-law, the City retains the
sole and unfettered discretion as to which formula will be applied to any
development or redevelopment or land.

Recent waterfront condominium development applications has

recommended parkland dedication and/or CIL of parkland payments be
made to the satisfaction of the City.
Cash in Lieu of Parkland Review

In reviewing applications, City staff are concerned that fixed rate

calculations do not reflect fair market value for properties and that rates
would need to be adjusted annually to make this process realistic and up
to date.

To test each calculations methods, as identified within the Planning Act

and based on our current By-law, a sample site was created within the
Downtown Core to review CIL payment options that could be available.
Cash in Lieu of Parkland Review

Sample #1 Downtown Development Application

Cash in Lieu of Parkland Review

Sample #2 Downtown Development Application

Cash in Lieu of Parkland Review

Sample location illustrates that the fixed rate calculation method is the
lowest amount of revenue generated from a development application
within the downtown core.

Therefore, the following recommendations are proposed within the Staff

Report:
That the City discontinue the calculation for the fixed rate per unit and only
apply Planning Act provisions i.e. percentage calculation or density formula.
That By-law 89-341, as amended , be repealed and replaced with a new By-
law.
Implementation of revised CIL of parkland calculation methods apply to the
issuance of building permits by the City after June 30, 2012.