Item - 2019.EX11.9

The Executive Committee recommends that:  

1.  City Council authorize the Chief Financial Officer and Treasurer, in consultation with the City Solicitor and the Chief Building Official, to reimburse MOD Developments (Charles) LP, an amount up to $2,463,060.00 of City's Development Charges and $179,300.00 of Toronto District Catholic School Board's Education Development Charges for the 100 rental-replacement units at 55-63 Charles Street East.  Such funds to be withdrawn from the associated development charge reserve accounts.

The Executive Committee held a statutory public meeting on December 11, 2019 and notice was given in accordance with the Development Charges Act and the Education Act.

This report responds to a complaint filed pursuant to Section 20 of the Development Charge Act, 1997 and Education Development Charges Act relating to a construction project for an apartment building containing 541 condominium apartments and 100 rental-replacement units located at 55-63 Charles Street East.

On July 16, 2019 the City Council approved redevelopment of the Subject Lands but place a number of conditions on the issuance of a demolition permit. 

The applicant, MOD Developments (Charles) LP, asserts that they should have received a demolition reduction against the City's Development Charges and Toronto District Catholic School Board's Education Development Charges for the existing 100 rental units that will be demolished.  

In the case of redevelopment, the development charges payable may be reduced by an amount calculated by multiplying applicable per unit charge by the number of dwelling units that will be demolished or converted to another type of residential or non-residential use. The reduction was not applied because under the bylaw a demolition permit needs to be obtained prior to application for a full building permit.

The above grade structural part permit was applied for on September 25, 2019 and issued on October 31, 2019.  Development Charges were assessed for all new units and paid for on October 31, 2019.  Application for demolition permit was made on November 12, 2019.

City Staff has reviewed the complaint and is of the opinion that the Development Charges by-law was applied properly and no error was made in the calculation of the charges.

Nevertheless, staff believe it is not the intention of the Development Charge by-law or Educational Development Charge by-law to deny demolition reduction when construction proceeds promptly after demolition as in this case. Therefore, staff recommend that Council reimburse applicant for the amount in dispute.