Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50882
The board agreed with the association and found that municipalities: • cannot use development charges to fund the provision of soft services unless a development results in an increased need for those services; • cannot levy their development charges to create a greater level of service than the average from the 10-year period imme- diately preceding the bylaw background study; and • must take into consideration the esti- mated future excess service capacity when determining development charge rates. The court could find no fault with these findings. New homebuyers shouldn't pay for services they didn't create the demand for One of the board's central findings, later affirmed by the court, was that funds col- lected through development charges must be used to finance the increased costs associated with the soft service needs in connection with a new development. In other words, municipalities may only use development charges to finance the incre- mental needs arising from development on top of existing bundles of services already available. If the new development did not create an increased need for soft services, the act cannot be used to extract develop- ment charges to help finance a municipal- ity's already-existing infrastructure. Funding of service increase must not exceed level of service for the previous 10 years The association maintained the town's bylaw would permit it to finance soft serv- ices for a future 10-year period at a higher rate than what occurred for the previous 10 years, something which is prohibited under the act. The board agreed and, for reasons of its jurisdiction, the court accepted the board's conclusions. To estimate the cost of providing the new development's soft services, the board ruled municipalities must account for its "net population" over the funding period in question to establish the permitted per capita cost for those services. The effect of doing so reduces the per capita cost of soft services associated with a new development and maintains the intention of the act. Excess capacity of existing services must inform development charge rates Finally, the board found the act requires municipalities to look toward the future and estimate the excess capacity of soft services when setting development charge rates that will be levied against a new development. When a municipal coun- cil, in the course of setting its develop- ment charge rates, turns its mind toward estimations of future excess capacity, it not only reduces the risk of overbuilding infrastructure, but also ensures that the costs associated with the construction of new infrastructure and the demands for it are aligned. IH Mark Piel is a Toronto lawyer with Fraser Milner Casgrain LLP's municipal and property development group. [Across the street, down the block or Canada wide — our commercial team is ready for you. ] For over 100 years, legal professionals have trusted Stewart Title to provide title insurance for their commercial real estate transactions. Some of the world's best hotels, golf courses, resorts, office towers and business centres are insured by Stewart Title. Our global reach and financial strength, combined with the expertise of our Commercial Team, enable us to handle the most complex transactions. With Stewart Title, you can close real estate transactions with security and peace of mind. Visit www.stewart.ca to view some of our recent transactions, or call us at 1-888-667-5151 for a quotation. Untitled-3 1 INHOUSE JUNE 2011 • 4/30/10 12:51:05 PM 9