Servicing Agreements
A servicing agreement is a legal contract that a municipal council may require of a subdivision applicant.
With this agreement, council accepts responsibility for maintaining services in a new subdivision in exchange for the developer installing the services needed for the subdivision. A servicing agreement can provide services and facilities that directly or indirectly serve a subdivision.
A servicing agreement may also include fees for capital costs of providing, altering, expanding or upgrading services that support the subdivision, and can include:
- Wastewater;
- Water;
- Drainage (and other utility services);
- Roads; and
- Park and recreation facilities.
The agreement may cover these costs whether they are located within or outside the area that will be subdivided. Agreements can have performance guarantees, construction specifications and time limits; they can also have items like liability insurance and termination provisions.
Servicing agreements can also allow municipalities to collect the capital costs as part of a larger capital work project. The agreement may be completed before all land-holders that will benefit from the work, are ready to subdivide or develop.
In these cases, the municipality is able to collect capital costs from the initial developer, and then reimburse that developer as capital costs are collected from future developers. These cases are typically reserved for projects like sewer mains, major streets, or trunk water supply installations.
Legislative Authority: S. 168-176 PDA
Development Levies
Similar to servicing agreements, a development levy is a tool that allows a municipality to recover the costs associated with development. Development levies may be imposed to recover all or part of the municipality’s direct or indirect capital costs of providing, altering, expanding or upgrading utility services (e.g. sewage, water, drainage), roads, or park and recreation facilities.
Development levies may only be used when the development does not involve the subdivision of land and only if the municipality will incur additional capital costs as a result of the proposed development (i.e. no double-dipping for fees that were already collected through a subdivision servicing agreement).
Levies may vary according to:
- Zoning districts;
- Land uses;
- Capital costs; or
- The size or number of lots.
In order to use this tool, a municipality must adopt a development levy bylaw approved by the Ministry of Government Relations.
Development levies can also allow municipalities to collect the capital costs as part of a larger capital work project. The agreement may be completed before all land-holders that will benefit from the work, are ready to subdivide or develop.
In these cases, the municipality is able to collect capital costs from the initial developer, and then reimburse that developer as capital costs are collected from future developers. These cases are typically reserved for projects like sewer mains, major streets, or trunk water supply installations.
Legislative Authority: S. 168-176 PDA
Money in Lieu of Municipal Reserve and Revenue from the Sale of Municipal Reserve
Land owners that are subdividing land are required to transfer a portion of that land to the municipality at no cost. This is done in order to ensure that a sufficient area, including parks and recreation space, is secured for the good of the community.
In some cases, the dedication of land may be determined as unnecessary or undesirable at the time of subdivision. If this happens to be the case, the subdivision applicant pays the municipality a sum of money equal to the value of the land that would have otherwise been transferred to the municipality.
A municipality may also sell municipal reserve land in cases where there is a surplus, or when reserve space is no longer needed. All sales of municipal reserve must be approved by the Minister of Government Relations unless the land is located in a municipality that has been declared an approving authority.
All money collected, either from money-in-lieu of municipal reserve or from the sale of municipal reserve, must be placed in a dedicated lands account that can only be used toward:
- The purchase of land to be dedicated for public use; or
- The development, upgrading or replacement of public parks or public recreation facilities on park space within the municipality, or any other municipality.
Legislative Authority: S. 187, 197, 199, 205 PDA and The Dedicated Land Regulations, 2009
Fees for Development Applications
A municipality may collect development application fees associated with the application, such as:
- Review;
- Advertising;
- Approval;
- Enforcement;
- Regulation; and
- Issuance of development permits.
Development application fees may also be collected in relation to the following:
- Discretionary use applications;
- Minor variances; and
- Planning bylaw amendments.
The fees must not exceed the costs the municipality incurs, and must be outlined in either the municipality's zoning bylaw or in a separate fee bylaw that the municipality adopts.
Legislative Authority: S. 51 PDA
Exception to Development Standards
An exception to the development standards provides council with the ability to relax certain provisions in its zoning bylaw where the developer provides certain facilities or services, or will address certain matters as set out in the zoning bylaw.
For example, a building in a downtown zoning district may contain development standards (e.g. setbacks) that a developer may wish to exceed. The municipality's zoning bylaw may permit some relaxations to the development standards in exchange for the developer providing certain amenities.
The use of this tool gives the developer greater flexibility for their development and provides specific amenities so that the municipality still achieves the intent of the desired specific development standard.
Legislative Authority: S. 70 PDA
Payment in Lieu of Parking Facilities
Municipalities set specific development requirements as part of its zoning bylaw. The municipality may require parking facilities as part of a development. A municipality also has the ability to give the developer an exemption from building parking facilities. In these cases, the developer pays the municipality a set amount per parking stall instead.
The municipality must hold all money collected in a separate account. Funds must only be used for the capital costs of the transit system, or the following costs associated with parking facilities:
- Acquisition;
- Construction;
- Operation; or
- Maintenance.
Legislative Authority: S. 61 PDA
Development Agreements in a Direct Control District
A direct control district allows a developer and municipality to negotiate the details, design and uses of a development. An agreement is set based on a concept plan and criteria for a specific part of a community.
This agreement can specify the provision of specific aspects of the project, including:
- Public amenities;
- Access;
- Landscaping;
- Walkways;
- Roads;
- Sidewalks; and
- Utilities.
The agreement may also contain provisions where the municipality undertakes construction or maintenance of the required improvements in exchange for payment.
Legislative Authority: S. 65 PDA