Purpose statement
Planning and Development is responsible for the administration of Section 37 of the Planning Act. Section 37, prior to changes made through Bill 197, the COVID-19 Economic Recovery Act, 2020, allowed municipalities to secure identified public benefits in exchange for permitting additional height and/or density in a development through the rezoning process.
This Procedure (“Bonusing Procedure”) is designed to complement the Zoning By-laws containing bonusing provisions which were approved prior to 18 September, 2022.
The purpose of this Procedure is to ensure that Council, Staff, the development community and the public have a clear and consistent direction on the use of bonusing agreements under Section 37 of the Planning Act and of the objectives that would be achieved through its utilization.
Scope
The Bonusing Procedure may apply to any applicant seeking additional height and/or density for a development in accordance with the Zoning By-law. The Bonusing Procedure also applies to all Town staff as participants in this process.
The Director of Planning & Development or their designate(s) shall be responsible for ensuring compliance with, maintenance of, and interpretation of the Bonusing Procedure
Procedure
The Bonusing Procedure applies to properties where zoning permissions are in-effect to allow for a bonusing agreement. A flowchart of the Bonusing Procedure is attached in Appendix A.
1. Execution of bonusing agreements
With the authority delegated to staff for executing Section 37 agreements, final discussions take place with the applicant to conclude the terms and conditions.
Section 37 agreements will follow a standard legal template.
Agreements will also contain provisions for flexibility to accommodate changes to the timing of a particular development or the coordination of public benefits within The Town’s capital forecast and budget process.
2. Implementation of bonusing agreements
The timing of the payment of community benefits secured as cash will be required, as a condition of the Section 37 agreement, prior to the issuing of a building permit.
Bonusing funds are deposited and reconciled with the Finance department. The Finance department can confirm the amount with the Legal department.
The Section 37 agreement will be in place and registered on title.
Identified benefits shall be reviewed having regard to the impact on the Town’s operating budget and capital forecast, in particular for any associated operating costs arising from the identified capital facility provided through bonusing.
Where cash contributions are secured in Section 37 agreements, the amount of such funds, where appropriate, should be indexed to the Statistics Canada Construction Price Index for Toronto that would pertain to the type of community benefit secured.
The contribution of capital facilities through Section 37 benefits must follow the Town’s processes and procedures and shall be included as conditions of the Section 37 agreement.
Cash contributions received through Section 37 agreements shall be deposited to an interest bearing reserve and secured credit held. Receipts to this reserve shall be segregated by area and tracked by Finance.
Transfers to the appropriate capital project upon approval of said project will be through the approved capital budget/forecast process.
Definitions
Applicant: Means a company, organization or person submitting a planning application under the Planning Act, to the Town.
Town: Means the Corporation of the Town of Oakville
Responsibilities
The Director of Planning and Development or their designate (s) shall be responsible for ensuring compliance with, maintenance of, and interpretation of the Bonusing Protocol.