Section 37 Section 37 –– A Development Tool For A Development Tool For Intensification Areas Within The CityIntensification Areas Within The City

Potential Community Benefits and Principles of Use for the Vaughan

Metropolitan Centre and Intensification Areas

IntroductionIntroduction• Allows a Municipality to enter into an agreement with a developer to

negotiate an increase in height or density on a given development site.

Ministry of Municipal Affairs and Housing, 2012.

Section 37: ContinuedSection 37: Continued

• A S.37 agreement takes the form of an exchange:

“A municipality may, through a zoning by-law, approve increases in height and/or density beyond what the zoning by-law would otherwise permit, in return for facilities, services or matters as are set out in the by-law.”

• Designed to offset impacts of greater density by securing a range of community benefits such as:

–improved parkland and enhanced urban spaces–public institutional space (daycare, community centre)–public art–improved streetscaping–heritage building preservation

Motivating Factors Motivating Factors

• Secure public benefits over and above what is available through the traditional planning process

• Minimizes otherwise costly expenditures to municipality– Can include capital intensive facilities such as daycares, community centres or

cultural facilities

• Improves quality of life by enhancing community amenities

Examples: TorontoExamples: Toronto

• Artscape: Artist live/work studios, galleries and lofts

(Artscape, 2011)

• Affordable Studio/Units incorporated into market development • Developer granted addition height/density in exchange for affordable space

Portion of funding derived from S.37 cash contributions

Artscape Triangle/Westside Gallery Wychwood Park Barns

(City of Toronto, The Planning Partnership, 2009)

• Yonge and Dundas Square: Multi-purpose, cultural gathering space

Examples: TorontoExamples: Toronto

Funding derived from S.37 cash contributions

• Ottawa– Established stronger, transparent guidelines

• Maximum and Minimum height restrictions• Minimum Height/GFA threshold used to initiate S.37 agreement • Designated 15-30% of value uplift for public benefits• Two separate geographic “zone” rates established and re-evaluated

annually

Examples: OttawaExamples: Ottawa

(Ottawa.ca, 2012)

Examples: VaughanExamples: Vaughan

• Piazza Building (Woodbridge Ave & Clarence St)

– Improved Urban Design, Streetscaping, Additional Park Space

(Google, 2012)

• Piazza Building (Woodbridge Ave & Clarence St)

• Achieved through density bonusing provisions set out in OPA 200 and included in OPA 440

• Developer provided additional lands to create public space and connected pedestrian pathway along border of site

• Developer incorporated enhanced urban design and landscaping elements beyond what was required

• In exchange, developer received additional density/units beyond what was permitted in Official Plan

Examples: VaughanExamples: Vaughan

Examples: VaughanExamples: Vaughan

• The Terraces (Heritage Wallace House – Market Lane)

– Improved urban design, dedicated parkland, lighting

(Google, 2012)

Examples: VaughanExamples: Vaughan

• The Terraces (Heritage Wallace House – Market Lane)

• Achieved through density bonusing provisions as set out in OP 200 and OPA 440

• Significant improvements to landscape and urban design– space provided for pedestrian pathway on western border of site– cash-in-lieu contribution for pathway lighting

• Developer received density bonus of 7 additional units

Current IssuesCurrent Issues

• Significant potential for community enhancement, but clear guidelines would assist City:

– In the past, agreements have been negotiated on an Ad Hoc basis and full benefits of Section 37 have been difficult to realize

– Value of public benefit sometimes difficult to determine

– Developer opposition when viewed as “additional tax”

• Valuation is key in determining a fair approach– Ottawa, Orillia, Vancouver are all good examples

Nine Draft Principles:Nine Draft Principles:

1) Section 37 must be implemented through a zoning by-law. This is usually a site-specific zoning by-law amendment permitting a height and/or density increase for a specific development.

2) The community benefits must be set out in the site-specific zoning by-law.

3) Section 37 is a planning tool; it is not a revenue tool. There should be a reasonable planning relationship between the secured community benefits and the contributing development. A planning relationship exists if both the contributing development, as well as the local community, benefits from the Section 37 facilities. Based on this principle, community benefits within the local area, are most supportable.

Nine Draft Principles (contNine Draft Principles (cont’’d)d)4) The proposed development must represent good planning. An

owner/developer should not obtain inappropriately high density or height increases by offering community benefits and the City should not approve development simply to get community benefits.

5) Community benefits should be durable - as durable as the bigger and/or taller building that is accommodated, in exchange. As a result, Section 37 benefits should be capital facilities. Cash-in-lieu of capital facilities is only acceptable where the cash is secured for specific local capital facilities. Operating, programming, and maintenance funds are not durable and are not appropriate community benefits. Section 37 is not a vehicle to generate general revenue within a Ward or local community for non-specific or indeterminate purposes. The contributing owner/developer should be committed to providing specific capital facilities, or cash contributions to achieve specific facilities.

Nine Draft Principles (contNine Draft Principles (cont’’d)d)

6) There is no set “formula” based on the value of increased density contained in the Section 37 framework. Most Section 37 agreements are negotiated on a case-by-case basis, and the amount or value of the community benefits varies across the City.

7) The specific community benefits secured in a development are the result of discussions between the City and the owners/developers based on the policies of the relevant Secondary Plan and supporting studies.

8) Matters required to support a development are not considered to be eligible Section 37 community benefits, and should be provided by the developer.

9) Good architecture and good design are expected of all developments. They are not eligible Section 37 benefits

Moving Forward: VaughanMoving Forward: Vaughan

• Limited usage of S.37 in GTA municipalities

• High density growth provides significant opportunity (VMC and City-wide)

• VOP 2010 and VMC Secondary Plan have provisions for S.37

• Fair, consistent evaluation processes exist; Vaughan should look to move in this direction

• City must demonstrate planning connections between impacts of the proposed development and the provision of community benefits in the area.

• Must address stronger guidelines- Consistent application- Min./Max. height restrictions established- Formula for land value uplift

Moving Forward: VaughanMoving Forward: Vaughan

• Planning Department will review these principles and evaluation protocols during the summer

– Report back to VMC Sub-Committee in Fall 2012 with updated VMC Secondary Plan that includes bonusing provisions

– Committee of the Whole (Working Session) in the Fall/Winter 2012 to discuss City-wide protocol options and next steps

• Questions/Comments?