2023-067 By-law to authorize the execution of an agreement providing for the deferral of development chargesThe Corporation of the Township of Oro-Medonte
By-law 2023-067
Being a by-law to authorize the execution of an agreement
providing for the deferral of development charges.
Whereas The Corporation of the Township of Oro-Medonte registered on the 12th day of
July 2023 an agreement providing for the deferral of development charges against the land
described in Schedule "A" attached hereto and forming part of this By-law.
And Whereas Section 3.9 of Development Charges By-law 2019-100 provides that a
development charge shall be payable in full on the date of building permit issuance in
relation to each building or structure to which a development charge applies;
And Whereas section 27 of the Development Charges Act, 1997, S.O. 1997, c. 27, (the
"Act") provides that a municipality may enter into an agreement to provide for a deferral of
the development charge;
Now Therefore the Council of the Corporation of the Township of Oro-Medonte hereby
enacts the following as a by-law:
1. THAT an agreement be entered into by The Corporation of the Township of Oro-
Medonte, with the owner(s) of the land described in Schedule "A" to extend the time
period in which the development charges payable on this land is to be paid on the terms
and generally in the form of Schedule "B" attached to this By-law.
2. THAT the agreement be substantially the same form and contain the same terms and
conditions as set out in Schedule "B", a copy of which is attached hereto.
3. THAT the Mayor and Clerk be and are hereby authorized and directed to enter into the
development charges deferral agreement on behalf of the Township.
4. THAT this By-law shall take effect upon the final passing thereof.
By-law read a first, second, and third time, and passed this 12th day of July, 2023
The Corporation of the Township of Oro-Medonte
Mayor, Randy Greenlaw
Clerk,'Ytionne Aubichon
Schedule "A"
to By-law No. 2023-067 for
The Corporation of the Township of Oro-Medonte
DESCRIPTION OF THE LAND:
Part of Lot 22, Concession 5, designated as Parts 6-11 on Registered Plan 51R-19930,
municipally known as 15-25 Winstar Road, Township of Oro-Medonte.
Schedule "B"
to By-law No. 2023-067 for
The Corporation of the Township of Oro-Medonte
THIS AGREEMENT made in triplicate on this 12th day of July, 2023.
BETWEEN:
THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
(the "Township")
- and -
TNR INDUSTRIAL DOORS INC.
(the "Owner")
Whereas the Development Charges Act, 1997, S.O. 1997, c. 27, as amended (the "Act")
authorizes municipalities to pass by-laws for the imposition of development charges against
land to pay for increased capital costs required because of increased needs for services
arising from the development of the area to which the by-law applies;
And Whereas the Council of the Township ("Council"), pursuant to the Act, has enacted
By -Law No. 2019-100 (the "By-law", which terms shall include any amendments thereto),
which imposes development charges and provides for the payment of development
charges;
And Whereas the Township may, pursuant to section 27 of the Act, and on such terms as
Council may require, enter into an agreement with an owner to require the owner to pay
the applicable development charges at a date later than it would otherwise be payable,
upon and in accordance with the terms of an agreement entered into by the owner with the
Township ("Deferral Agreement");
And Whereas the Owner is the registered owner of the property municipally known as and
described as Part of Lot 22, Concession 5, designated as Parts 6-11 on Registered Plan
51 R-19930, municipally known as 15-25 Winstar Road, Township of Oro-Medonte County
of Simcoe, and legally described as set out in Schedule A to this Agreement (the "Lands");
And Whereas the Owner proposes to develop the Lands to provide an industrial
manufacturing plant that is classed as non-residential industrial for the purposes of the
Township's By-law (the "Development");
And Whereas the Owner, requested approval by Council, at its meeting on June 24, 2023,
to defer the payment of the development charges payable to the Township in respect of the
Development;
And Whereas the Township's Director of Finance / CFO ("Treasurer") was authorized by
Council, at its meeting on June 24, 2023, to approve the development charges deferral
subject to and upon the terms of this Deferral Agreement;
Now therefore, in consideration of the mutual covenants herein contained, and for other
good and valuable consideration, (the receipt and sufficiency of which is hereby
acknowledged by each party), the parties hereby agree as follows:
1. The Recitals above are true and correct and form part of this Agreement.
2. The Owner acknowledges and agrees that it owes to the Township
development charges pursuant to the By-law (the "Total Amount"). The Total
Amount is calculated in accordance with the By-law and is ordinarily due and
payable prior to, or upon issuance of, a first building permit for the
Development.
3. Notwithstanding any provisions of the By-law to the contrary, the Owner and
the Township agree that payment of Township development charges by the
Owner, in respect of the Development, as required under the By-law shall be
deferred on the terms and conditions contained herein.
4. The Township and the Owner agree that the Total Amount, exempt from
interest, shall be paid by the Owner in two (2) equal deferred payments:
(a) the first payment shall be due and payable by the Owner no later than
one (1) month after the date of the issuance of the first building permit;
and
(b) the final payment shall be due and payable by the Owner no later than
one (1) month after after the enactment of the Township's successor
development charges by-law.
5. If the Owner fails to obtain the building permit to construct the Development
by December 31, 2023, the Owner and the Township agree this Agreement
shall terminate, and the Owner's and the Township's obligations under this
Agreement shall end.
6. The Township and the Owner mutually agree that the final payment will be
determined by the lesser of two amounts:
(a) the sum calculated pursuant to Section 2, or
(b) development charges calculated and determined in accordance with the
Township's successor development charges by-law.
7. If any of the payments are not made in accordance with Section 4 above,
then the Owner shall be deemed to be in default of this Agreement and the
remaining deferred amounts shall become immediately due and payable,
and the Township shall be entitled to recover all deferred amounts, plus
interest, as calculated in accordance with Section 8 below, which remain
unpaid as at the date of default by adding such amount to the property tax
roll for the Lands, and the Township shall collect such amount as taxes
pursuant to subsection 32(1) of the Act.
8. The Owner shall pay interest on the Total Amount at a rate equal to the prime
lending rate of the Township's bank plus 1 %, calculated monthly.
9. If the Owner sells or otherwise conveys the Lands or any portion of the Lands
or its interest in the Lands, the Total Amount plus interest, as calculated in
accordance with Section 8 above or any portion thereof still owing at the time
of such sale or conveyance, shall be immediately due and payable to the
Township prior to the closing of the transaction. If the Owner fails to make
such payment, the Township shall be entitled to add such amount to the
property tax roll for the Lands plus interest, and the Township shall collect
such amount as taxes pursuant to subsection 32(1) of the Act.
10. The Owner consents to the registration of this Agreement on title to the Lands
forthwith upon its execution by both parties.
11. The Owner shall pay a legal and administration fee in the amount of $1,000
to the Township upon execution of this Agreement, to reimburse the
Township for the costs of this Agreement and its administration. The Owner
is responsible for all legal and registration costs of registering this
Agreement on title to the Lands.
12. The Owner acknowledges that the Township will be completing a
background study in anticipation of bringing forward new development
charges in a successor development charge by-law. In consideration of the
deferral of the payment of development charges under the By-law hereby
granted under this Agreement, the Owner agrees that it will not challenge or
contest said successor development charge by-law by appealing it pursuant
to section 14 of the Act or subsequently attempting to challenge the amount
of a development charge, a credit or the application of said by-law with
respect to the Development by complaint pursuant to section 20 of the
Act. The Township shall be entitled to assert this provision to estop any
such appeal or complaint.
13. This Agreement is binding upon and enures to the benefit of the parties, their
heirs, successors, and assigns.
14. This Agreement is made entirely for the convenience and benefit of the
Owner and is in no way to be construed as a waiver or surrender of any rights
or remedies that the Township may have to recover the development charge
by any lawful means from present and future owners of the Lands or as taxes
upon the Lands.
15. No provisions of this Agreement shall be amended or altered except by
further written agreement between the Township and the Owner. No
covenant or condition in this Agreement shall be deemed waived or
consented to by the Township unless such waiver or consent is in writing and
signed by an authorized representative of the Township.
16. Any notice under this Agreement shall provided by personal delivery or by
registered mail
(a) to the Township:
The Corporation of the Township of Oro-Medonte
148 Line 7 South
Oro-Medonte, ON LOL 2E0
Attention: Director Finance / CFO
(b) to the Owner:
TNR Industrial Doors Inc.
200 Fairview Road, Unit 2,
Barrie, Ontario, L4N 8X8
Attention: Marcus von Reden, President
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Marcus von Reden, President