SP2-BFW DCC Front Ending Agreement

8/14/2019 SP2-BFW DCC Front Ending Agreement

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REPORT TO

MAYOR AND COUNCIL

PRESENTED: MAY 4, 2009 - SPECIAL MEETING REPORT: 09-58FROM: COMMUNITY DEVELOPMENT DIVISION FILE: 08-24-0040 / 08-25-0074

SUBJECT: DCC FRONTENDING AGREEMENTBFW (WILLOUGHBY) DEVELOPMENTS LTD.

AND 0746344 BC LTD.

RECOMMENDATION(S):

That Council receive this report entitled DCC Frontending Agreement BFW (Willoughby)Developments Ltd. and 0746344 BC Ltd., for information; and further

That Council authorize staff to execute the DCC Frontending Agreement with BFWDevelopments (Willoughby) Ltd. and 0746344 BC Ltd. in the substantial form of a documentpresented as Attachment A, for the provision of off-site drainage infrastructure for the southeastphase of the Yorkson Neighbourhood Plan area.

EXECUTIVE SUMMARY:

In June 2006, the Township received an application from BFW Developments (Willoughby) Ltd.and 0746344 BC Ltd. (collectively the Developer) to rezone approximately 22.29 hectares and4.52 hectares respectively, creating an estimated total of 699 units/lots in accordance with theYorkson Neighbourhood Plan. To support the development, the Developer is required toconstruct a community detention facility and extend municipal trunk storm sewer to the site.

To finance and complete municipal services necessary to support the proposed development atno cost to the Township, the Developer may be able to utilize one or more of the cost recoverymechanisms available within the provisions of the Local Government Act (the Act) and theCommunity Charter (the Charter). These mechanisms include Latecomer Agreements,Development Works Agreements (DWA) and Development Cost Charge (DCC) Frontending

Agreements.

The Township supports the Developers proposal to apply for a DWA and a DCC Frontending Agreement to minimize DWA charges imposed on the benefitting lands. Previously, Councilreceived and gave First, Second and Third readings to the Development Works Agreementbylaw in March 2009 and subsequently adopted the bylaw in April 2009. The attached DCCFrontending Agreement is intended to work in harmony with the DWA to partially compensatethe Developer for the upfront costs associated with the construction of the community servicingneeds to allow development of the southeast phase of the Yorkson Neighbourhood Plan area.

PURPOSE:

The purpose of this report is to obtain Councils approval to execute a DCC FrontendingAgreement with BFW Developments (Willoughby) Ltd. and 0746344 BC Ltd.


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DCC FRONTENDING AGREEMENT(BFW (WILLOUGHBY) DEVELOPMENTS LTD.

AND 0746344 BC LTD.)

Page 2 . . .

BACKGROUND/HISTORY:

In June 2006 the Township received an application from BFW Developments (Willoughby) Ltd.and 0746344 BC Ltd. (collectively the Developer) to rezone approximately 22.29 hectares and4.52 hectares respectively, creating an estimated total of 699 units/lots in accordance with theYorkson Neighbourhood Plan. Council considered and gave First and Second readings to thecorresponding bylaws in February 2008 and the required public hearing was held in March2008. At its meetings of April 9, 2008 Council considered and gave Third reading, andsubsequently adopted the bylaws on March 23, 2009.

To satisfy the rezoning servicing requirements, the Developer is required to construct acommunity detention facility as well as extend municipal trunk storm sewers to the site. Theseworks will benefit other lands located in the southeast phase of the Yorkson Neighbourhoodplan area. The Local Government Act and Community Charter allow the Developer to use costrecovery mechanisms such as a Development Works Agreement and DCC Frontending

Agreement.

The Township supports the Developers proposal to apply for a DCC Frontending Agreementand a Development Works Agreement. Council received and gave First, Second and Thirdreading to Drainage Development Works Agreement (BFW Developments (Willoughby)Ltd./0746344 BC Ltd.) Bylaw 2009 No. 4726 on March 23, 2009 and subsequently adopted thebylaw on April 6, 2009.

The attached DCC Frontending Agreement and previously adopted DWA provides theDeveloper a cost recovery mechanism to potentially compensate them for a portion of theupfront costs associated with the construction of the community detention facility and trunkstorm sewer required to facilitate the development of the southeast phase of the Yorkson

Neighbourhood Plan area.

DISCUSSION/ANALYSIS:

The DCC Frontending Agreement (The Agreement) proposed by the Developer is a costrecovery mechanism, similar in concept to a DWA in that the cost of the proposed infrastructureis to be allocated to new growth within a specified benefitting area with no cost to the Township.Where the proposed Agreement differs from a DWA is in the following areas:

x The recovery of the costs is limited to DCCs that will be collected from developmentwithin the benefitting area over the term of the Agreement and does not include anadditional charge;

x

There is no requirement for a bylaw approval process; andx The petition process, which is a mandatory requirement for a DWA, may not be required

subject to provisions outlined in the Community Charter.


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DCC FRONTENDING AGREEMENT,(BFW (WILLOUGHBY) DEVELOPMENTS LTD.

AND 0746344 BC LTD.

Page 3 . . .

The proposed DCC Frontending Agreement is for drainage works only. These drainage worksare identified in the current 2008 DCC program and scheduled for construction within the next15 years. The works have been estimated to have a total design and construction cost of

approximately $1.14M. The Agreement is intended to have a term of 15 years, over whichDCCs collected from the specified benefitting area shall be forwarded to the Developer, up to amaximum cost as prescribed in the DCC Program. This second agreement provides theDeveloper with more assurance of cost recovery whilst providing the Township with necessarycommunity related infrastructure to support development in the southeast phase of the YorksonNeighbourhood Plan area.

Applicable Policies:

Other existing Township bylaws and policies relevant to the attached Development Cost ChargeFrontending Agreement are Subdivision and Development Control Bylaw 1994 No. 3335, asamended; Latecomer Policy No. 07-402; and Neighbourhood Plan Policy No. 07-220.

Financial ImplicationsThere are not expected to be any financial implications to the Township as the works arefinanced by the Developer. The municipal processing and administration costs are borne by theDeveloper, at an annual rate of $500.00.

Respectfully submitted,

David AndersonMANAGER, DEVELOPMENT ENGINEERINGforCOMMUNITY DEVELOPMENT DIVISION

DA/dh

ATTACHMENT A DCC Frontending Agreement


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TOWNSHIP OF LANGLEY

DEVELOPMENT COST CHARGES FRONTENDING AGREEMENT

Projects 08-24-0040/08-25-0074

THIS AGREEMENT dated for reference the ______ day of _________________, 2009.

BETWEEN:

TOWNSHIP OF LANGLEY, a municipal corporation under the LocalGovernment Act of the Province of British Columbia and having itsoffices at 20338 65 Avenue, Langley, British Columbia V2Y 3J1

(Hereinafter known as the "Township")

OF THE FIRST PART

AND:

BFW Developments (Willoughby) Ltd.

#100 20120 64 AvenueLangley, BC V2Y 1M8

and

0746344 BC Ltd.

#201 12837 76 AvenueSurrey, BC V3W 2V3

(collectively the "Developer")

OF THE SECOND PART

A. WHEREAS the registered Owners in fee simple of the Benefiting Area are identified incolumn five entitled Registered Owner in Schedule A, attached hereto (the Owners).

B. AND WHEREAS the real property within the Specified Benefiting Area is identified incolumn four entitled Legal Description in Schedule A, attached hereto (the BenefitingParcel).

C. AND WHEREAS the real property within the Specified Benefiting Area is illustrated inSchedule B, attached hereto (the Benefiting Area).

Attachment A


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D. AND WHEREAS a Storm Sewer and related appurtenances as described in Schedule C arerequired to be constructed.

E. AND WHEREAS the developer shall undertake the performance of its obligations required tobe made pursuant to this Agreement

F. AND WHEREAS the Works are not currently scheduled for construction by the Township,but are contained within the Townships Engineering Servicing Plan.

G. AND WHEREAS the Developer has requested that the Township advance the construction ofthe Works and has agreed to facilitate such construction for the development of the BenefitingArea.

H. AND WHEREAS Section 937.1 of the Local Government Act, R.S.B.C. 1996, c.323 andamendments thereto (the Act) authorizes Council to enter into an agreement with theDeveloper for the provision of storm sewer by the Developer.

I. AND WHEREAS Council adopted Development Works Agreement Bylaw 2009 No. 4726 onApril 6, 2009 authorizing the parties to enter into this Agreement pursuant to Section 937.1 oftheAct, providing for the construction of the Works by the Developer.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the sum ofTEN ($10.00) DOLLARS of lawful money of Canada and other good and valuableconsideration now paid by each of the parties hereto, to each of the other parties hereto, thereceipt whereof is hereby acknowledged, the parties hereto hereby covenant, promise andagree with each other as follows:

1. DEFINITIONS

In this Agreement and in the recital above:

"Act" means the Local Government Act, R.S.B.C. 1996, chapter 323, as revised, re-enacted orconsolidated from time to time and any successor statute;

"Agreement" means this agreement and all Schedules attached hereto;

"Benefiting Area" means the real property described in Schedule B attached hereto;

"Capital Cost" means actual costs incurred or proposed to be incurred by the Developer toconstruct the Works which costs are estimated at $1,139,160.64;

"Council" means the elected Council of the Township of Langley;

"Developer" means collectively BFW Development (Willoughby) Ltd. and 0746344 BC Ltd.;

"Development Cost Charge means a charge imposed pursuant to the Development CostCharge Bylaw;


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"Development Cost Charge Bylaw" means the Township of Langley Development CostCharge Bylaw 2004, No. 4385, enacted by the Township under theAct as such Bylaw isamended or replaced from time to time;

Development Works Agreement means Development Works Agreement Bylaw 2009, No.

4726 adopted by Council on April 6, 2009 authorizing the parties to enter into a developmentworks agreement pursuant to Section 933 of the Act;

"General Manager Engineering" means the General Manager, Engineering for the Township;

Lot means a development unit used either for single or multi-family use;

"Owners" means each of the registered owners in fee simple of the Benefiting Area asidentified in column five entitled Registered Owner in Schedule A attached hereto;

Subdivision and Development Bylaw means the Township of Langley Subdivision andDevelopment Control Bylaw, 1994, No. 3335, with amended Bylaw 1997 No. 3650, enacted by

the Township under theAct as such Bylaw is amended or replaced from time to time;

"Term" means the period of time this Agreement is in effect as specified in Section 4;

Township means the Corporation of the Township of Langley having its municipal officelocated at 20338 65 Avenue, Langley, British Columbia, V2Y 3J1; and

Works means Storm Sewer and related appurtenances as described in Schedule C.

2. AREA SUBJECT OF AGREEMENT

The Benefiting Area is the subject of this agreement.


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3. CREDIT FOR WORKS

(a) In consideration of the Developer entering into and fulfilling its obligations underDevelopment Works Agreement Bylaw 2009, No. 4726 passed on April 6, 2009 theTownship agrees to credit the Developer the Drainage Development Cost Charge for

each additional lot created within the Benefiting Area but shall not exceed$1,139,160.64 (adjusted when actual costs are determined) without interest.

(b) In the event of the assignment or transfer of the rights of the Developer voluntarily, orby operation of law, the Township shall credit any benefits accruing hereunder, afternotice, to such successor for the Developer as the Deputy Director of Finance, in hisjudgment deems entitled to such benefits; and in the event o conflicting demandsbeing made upon the Township for benefits accruing under this Agreement, then theTownship may at its option commence an action in interpleader joining any partyclaiming rights under this Agreement, or other parties which the Township believes tobe necessary or proper, and the Township shall be discharged from further liability

upon crediting the person or persons whom any court having jurisdiction of suchinterpleader action shall determine, and in such action the Township shall be entitledto recover its reasonable legal fees and costs, which fees and costs shall constitute alien upon all funds accrued or accruing pursuant to this Agreement.

4. TERM

(a) The term of this Agreement shall commence upon the execution date by the Townshipand shall expire no later than fifteen (15) years after that date (the Term).

(b) In the case that the Developer fails to complete the Works within twenty-four (24)

months after the agreement execution date, this Agreement shall lapse; provided,however, that the Developer may request to extend the period of this Agreement onsuch terms and conditions that the Township may deem reasonable.

(c) This Agreement shall terminate prior to the expiry of the Term in the event theDeveloper has been credited with the principal sum of $1,139,160.64 (adjusted whenthe actual costs are determined) without interest.

5. INDEMNITY

The Developer covenants and agrees to indemnify and save harmless the Township against:

(a) All actions and proceedings, costs, damages, expenses, claims and demandswhatsoever and by whomsoever brought by reason of the construction, installation,maintenance or repair of the works; and

(b) All expenses and costs which may be incurred by reason of the construction,installation, maintenance or repair of the works.


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6. MUNICIPALITYS COSTS

The Developer shall pay to the Township, by cash or bank draft, prior to the Townshipexecuting this Agreement, a fee equivalent to $7,500.00, for the preparation, registration andadministration of this Agreement.

7. NOTICES

(a) Any notice, demand, acceptance or request required to be given hereunder in writingshall be deemed to be given if either personally delivered or mailed by registered mail,postage prepaid (at any time other than during a general discontinuance of postalservices due to a strike, lockout or otherwise) and addressed to the Developer asfollows:

Developer (collectively BFW & 0746344 BC Ltd.)

c/o McQuarrie Hunter, in trust10430 144 StreetSurrey, British Columbia V3T 4V5

Attention: Michael Kendler

or such change of address as the Developer has, by written notification, forwarded tothe Township, and to the Township as follows:

Township of Langley20338 65 AvenueLangley, B.C. V2Y 3J1

Attention: General Manager, Engineeringcc: Deputy Township Clerk

or such change of address as the Township has, by written notification, forwarded tothe Developer.

(b) Any notice shall be deemed to have been given to and received by the party to whichit is addressed:

i) if delivered, on the date of delivery; or

ii) if mailed, then on the fifth (5th) day after the mailing thereof.

8. BINDING ON SUCCESSORS

(a) It is hereby agreed by and between the parties hereto that this Agreement shall beenforceable by and against the parties, their successors and assigns.


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(b) The Developer shall not assign or transfer its interest in this Agreement without theprior written consent of the Township, which consent shall not be unreasonablywithheld.

9. ENTIRE AGREEMENT

This Agreement constitutes the entire Agreement between the parties hereto with respect tothe subject matter hereof and supersedes any prior agreements, undertakings, declarations orrepresentations, written or verbal, in respect thereof.

10. LAWS OF BRITISH COLUMBIA

This Agreement shall be interpreted under and is governed by the applicable laws of Canadaand the Province of British Columbia.

11. SCHEDULES

The Schedules attached hereto, which form part of this Agreement, are as follows:

(a) Schedule A Owners and Benefiting Parcel.(b) Schedule B Benefiting Area(c) Schedule C Works


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IN WITNESS WHEREOF this Agreement has been executed as of the day and year first abovewritten.

THE CORPORATION OF THE )

TOWNSHIP OF LANGLEY )By its authorized signatories: )

) ______________________ )

DIRECTOR OF COMMUNITY ) DEPUTY TOWNSHIP CLERK

DEVELOPMENT ))))

)

WITNESS ) WITNESS

))

)

)

)BFW DEVELOPMENTS (WILLOUGHBY) LTD. ) WITNESS

As per their duly appointed signatory(s): )))))

)0746344 BC LTD. ) WITNESS

As per their duly appointed signatory(s): ))))))


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SCHEDULE A

OWNERS AND BENEFITING PARCELS

Civic AddressMapID

ParcelIdentifier No.

St./Ave.

Legal Description Registered OwnersNet

DevelopablArea (ha)

1 012-006-131 20931 80 AveLot 24, Section 25, Twp 8, NWD,

Plan 1137

Mangat, Kamail SinghDhaliwal, Gurminder SinghAmtract Construction Ltd.Choice Developments Ltd

787 Development LtdPooni Development & Investments Ltd.

1.99

2 012-006-157 20981 80 AveLot 25, Sec 25, Twp 8, NWD, Plan

1137

Kundan, Jarnail SinghKundan, Baljeet SinghJandu, Ravinder Singh

Jandu, Jit SinghKundan, Harcharan Singh

Kundan, Surinder Kaur

2.02


1137

R.A.B. Ventures #1 Ltd.Benchmark Management Ltd.Progressive Construction Ltd.

1.98


1137PRL Construction Ltd. 2.00


11370746344 BC Ltd 1.89

6 004-212-801 21130 81A Ave

Lot 4, Sect 25, Twp 8, NWD, Plan

71855 0746344 BC Ltd 0.65

7 004-212-797 21174 81A AveLot 3, Sec 25, Twp 8, NWD, Plan

718550746344 BC Ltd 1.01

8 004-212-762 21133 80 Ave Lot 1, Sec 25, Twp 8, NWD, 0746344 BC Ltd 0.97

9 004-212-771 21187 80 Ave

Lot 2, Sec 25, Twp 8, NWD, Plan

71855 0755013 BC Ltd 1.09


1578

Progressive Construction Ltd.Benchmark Management Ltd.

R.A.B. Ventures #1 Ltd.2.02


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MapID

ParcelIdentifier

Civic Address Legal Description Registered OwnersNet

DevelopablArea (ha))


1578

Progressive Construction Ltd.R.A.B. Ventures #1 Ltd.

Benchmark Management Ltd.2.06


1578

Progressive Construction Ltd.R.A.B. Ventures #1 Ltd.

Benchmark Management Ltd.2.04


1578

R.A.B. Ventures #1 Ltd.Progressive Construction Ltd.Benchmark Management Ltd.

2.02


1578

R.A.B. Ventures #1 Ltd.Progressive Construction Ltd.

Benchmark Management Ltd.

2.07


1578

R.A.B. Ventures #1 Ltd.Benchmark Management Ltd.Progressive Construction Ltd.

2.03


1578


R.A.B. Ventures #1 Ltd.2.14

17 .93

17a

012-236-136 20939 77A AveLot 23, Sec 24, Twp 8, NWD, Plan

1578


R.A.B. Ventures #1 Ltd.

1.01

18 .95

18a


1578

Benchmark Management Ltd.Progressive Construction Ltd.

R.A.B. Ventures #1 Ltd.

1.01

19 .94

19a


1578


R.A.B. Ventures #1 Ltd. 50% of NetDevelopable

Area.54


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MapID

ParcelIdentifier


DevelopablArea (ha)

20 1.10

20a

012-236-101 21051 77A Ave Lot 2, Sec 24, Twp 8, NWD, Plan1578


R.A.B. Ventures #1 Ltd. 50% of NetDevelopable

Area.45

21 2.00

21a


1578

R.A.B. Ventures #1 Ltd.Benchmark Management Ltd.Progressive Construction Ltd. 50% of Net

DevelopableArea

.02


15780761304 BC Ltd 2.01


15780761304 BC Ltd 2.10

24 012-236-144 20932 77A AveLot 24 Sec 24, Twp 8, NWD, Plan

157877A Avenue Holdings Ltd. 1.71


80093Royale Properties (Yorkson) Ltd. .85


80093Royale Properties (Yorkson) Ltd. .65


1578Guo, Dihua 1.73


1578Yip, Jay Fong 1.97


1578Whitelaw, Lenora Madelene 2.00


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MapID

ParcelIdentifier


DevelopablArea (ha)


1578Bahga Enterprises Ltd. 1.92


1578GSK Developments Ltd. 1.16


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SCHEDULE B

BENEFITING AREA


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SCHEDULE C

DESCRIPTION OF THE WORKS

Oversizing cost for drainage works consisting of approximately 450 linear meters of 1350mm

diameter storm sewer, 360 linear meters of 1500mm diameter storm sewer and oversized manholes,having an estimated Capital Cost of $1,139,160.64, all in accordance with the Langley DevelopmentCost Charge Bylaw 2007 No. 4640, as per design drawings numbers 062520A, 1 to 40 inclusive byH.Y. Engineering Ltd

SP2-BFW DCC Front Ending Agreement

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