Staff Report – Bear Mountain Parkway Extension – Local Area Service Establishment and Loan Authorization

Staff Report

to
Council

Date:

18/04/2016

Department:

Finance

Subject:

Bear Mountain Parkway Extension – Local Area Service Establishment Bylaw No. 1630 and Loan Authorization Bylaw No. 1631

Background

Council has previously been approached by the owners of development property in the CD6 and CD12 zones (Bear Mountain and South Skirt Mountain) to construct the extension of the Bear Mountain Parkway from the Leigh Rd./McCallum intersection to the existing Parkway at the Bear Mountain Village. These highway works would be constructed to the interim standard described in Appendix “B”. This report is to advise Council that we have secured a petition from these property owners sufficient to enter into a Local Area Service (LAS) Bylaw pursuant to section 212 of the Community Charter. A Local Area Service Establishment Bylaw and Loan Authorization Bylaw are being brought forward for Council’s consideration of first, second and third readings.

Commentary

Following Council’s Direction, staff have met with the affected owners of developable lands in the CD6 and CD12 zones (see Appendix “C”). The “Approx. Share of Debt Repayment” is based on taxable areas which are determined by the parcel area net of open space required by zoning and has been determined in consultation with the owners.

The benefitting lands are shown in Appendix “A” and encompass most of the remaining developable lands in the CD6 and CD12 zones plus two former PCC properties that will ultimately benefit from the highway works but are not yet zoned for development.

The project consists of a two-lane road with street lighting on one side plus grading and cut-and-fill to accommodate construction of the ultimate road cross-section.

LAS Particulars

The LAS Establishment Bylaw will provide the City the authority to proceed with the project and to levy a parcel tax on the benefitting properties to recover the cost. The bylaw is the result of signed petitions from all but one owners representing 95.2% of the parcels and 96.4% of the assessed value of all parcels subject to the local service tax. The Community Charter requirement for the petition to be sufficient and valid is that it be signed by at least 50% of the owners representing at least 50% of the assessed value. The Corporate Officer has certified the sufficiency and validity of the petition.

The Loan authorization Bylaw will enable the City to borrow up to $5 million to fund the project with any costs in excess of that amount to be borne directly by the property owners.

Financial Implications

Bylaws 1630 and 1631 give the City the authority to borrow up to $5 million for a 15-year term to construct the highway works and to recover the annual debt servicing costs by a parcel tax levied on the properties in the Local Service Area. None of these costs will be charged to the general tax payer. Borrowing the money will not have a serious impact on the City’s ability to borrow for additional projects in the future should the need arise.

Any costs above the $5 million to be borrowed would be the responsibility of the property owners.

Legal Implications

Establishment of a Local Area Service and levying of a local service tax are subject to Part 7, Division 5 of the Community Charter.

A Loan Authorization Bylaw for this purpose does not require assent of the electors (s. 217, Community Charter). After third reading, the bylaw will be submitted to the Inspector of Municipalities for approval. After approval, Council may adopt. There is then a 30-day quashing period after which we will apply to the Inspector of Municipalities for a Certificate of Approval. Once the Certificate of Approval is received, we are able to borrow.

At a later date, staff will be bringing forward Parcel Tax Roll Preparation and Parcel Tax Rate Bylaws as part of the LAS process.

Options

That Council:

1. Give “Bear Mountain Parkway Extension Local Area Service Establishment Bylaw No. 1630, 2016” first, second and third readings; and
2. Give “Bear Mountain Parkway Extension Loan Authorization Bylaw No. 1631, 2016” first, second and third readings; or
3. Not proceed with the Bear Mountain Parkway Extension at this time.

Respectfully Submitted,

submitted by:
Steve Ternent, Director of Finance

Concurrence:
Matthew Baldwin, MCIP, RPP Director of Planning

Concurrence:
Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering

Concurrence:
Brent Molnar, Manager of Land Development

Concurrence:
Jim Bowden, Chief Administrative Officer

Appendix “A”

Appendix “B”

Project Description

1. A two lane interim road connection between the Leigh Road Interchange and the border of the Bear Mountain Village Core (opposite St Andrews Walk), activating approximately 3,230 meters of public roadwork;
2. An interim road cross section that will include 2 paved driving lanes with gravel shoulders, with one side of street lighting;
3. Full and final site grading, cut and fill placement, to accommodate the ultimate road cross section that will be built out when adjacent lands are developed;
4. All engineering, inspection, security, legal and administration costs, and environmental studies and other related work necessary to complete the project;
5. An allowance for interest charges that may accrue on borrowed funds during construction
6. All land dedications and rights of way required to facilitate the project.
7. Re-designation of the Echo Valley Road system as a non-through road, such that the Bear Mountain Parkway is the only route from Leigh Road Interchange through Bear Mountain.

Appendix “C”

Bear Mountain Parkway Extension — Property Ownership and Cost Sharing