ALBERTA DEVELOPMENT OFFICERS ASSOCIATION 2019 Overview 1. - - PowerPoint PPT Presentation

ALBERTA DEVELOPMENT OFFICERS’ ASSOCIATION 2019

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• 1. Introduction
• 2. Strategies for the Sale of Municipal

Land

• 3. Creating a Vision & Standardization
• 4. Redevelopment
• 5. “Short Snappers”

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Overview

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Create a Vision Standardization Think Outside the Box Be Proactive

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Keys to Successful Development

Typical Real Estate Sale

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Typical realtor forms

• f agreements have

perils if land is not already developed

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Including a term in a Sale Agreement that the development must be completed following closing is ineffective

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Promises to develop land after closing…

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Doctrine of Merger

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PROMISE TO DEVELOP CLOSING/ TITLE TRANSFER NO REMEDIES

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Sale & Construction Agreement

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Use a form of Agreement where responsibilities are “front-loaded”

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Define the Development Set Deadlines to Commence / Complete Construction Development Agreement, Security, Permits, Financing in Place

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Option to purchase the lands back if deadlines not met

Risk Management

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Register Option to Purchase on Title Obtain Transfer Back on Closing

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ORIGINAL PRICE

REPURCHASE PRICE

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For large parcels of land, recommend a staged development

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Success Story #1- City of Red Deer: Thinking Outside the Box

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13 acre parcel sold in 2 phases

• Phase 1- grocery store

& mixed-use retail/residential (complete)

• Phase 2- commercial

retail & professional

• ffices

Timberlands

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During Construction

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Timberlands North Timberlands South

After

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Growth Expectation Infrastructure & Servicing Needs Standards & Expectations

Creating a Vision

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Statutory plans with municipal vision Plans for development MDP, ASP, NASP, LUB

Planning Vision

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Infrastructure Plans

Master Utility Studies What is needed for renewal & for new development Determine infrastructure funding or cost recovery options

• Who will construct? Who will finance?

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Standardization

Create design & construction standards suitable for Municipality’s needs

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Clear expectations and requirements

Efficiencies in the plans process for constructing municipal improvements

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Approval & Publication of Design & Construction Standards

Section 638.2 of the Municipal Government Act

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Important cost recovery tool Can require an applicant to construct and pay for:

• Roads, walkways & public utilities
• Off-street parking & loading facilities
• Oversized or extended infrastructure

Development Agreements

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Create level playing field Create clear expectations

• f developers

Standardized Development Agreements

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Create administrative efficiencies

Expedites negotiation & execution with customization

Consistency in inspection & acceptance process Improves enforcement

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SECURITY IS THE KEY Standard level - full cost recovery Minimize cost & manage risk Avoid stagnation

• f development

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Standardize the form of security

Irrevocable letter of credit Chartered bank, ATB, or credit union

Draw on- demand Automatically renewable or redeemable

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Off-Site Levies

• Cost recovery tool
• Recoverable

infrastructure/facilities:

• Water, sewer, storm sewer

drainage, roads, connections to provincial highways

• Recreation facilities, fire halls,

police stations, libraries

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Spread costs based on benefit Reduces upfront cost

• f developers

May encourage development

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Municipality Builds

OSL reserves or borrowing

Front- Ended by Developer

Levy credits

Who will construct off-site levy infrastructure?

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Success Story #2 – Leduc County: Off- Site Levy & Developer Front-Ending

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OSL for roads, water, & sanitary

• Servicing vision

for industrial area

OSL policies provide for front- ending

• Developer front-

ends portion of infrastructure

County provides levy credits & reimbursement through Agreement

Nisku Spine Road

• Important

infrastructure

• Built ahead of

capital schedule 33

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Before - 2011 After - 2017

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December 2018: Amazon announced plans to build new 1,000,000 square-foot customer fulfillment facility at Nisku Business Park

Encourages Development in Industrial Area

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Redevelopment Challenges

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Fragmented Ownership Developed land  different

• wners with

different goals

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NIMBY Anxiety & fear of change Vocal landowners can be influential

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Risk of Losing Investment

Developer has to purchase land Potential

• utcome

unknown

FEAR

Risk losing investment or profit margins too small to make project worth pursuing 38

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Discourages redevelopment

Application complexity and uncertainty

Unforeseeable expenses due to unclear process

Uncertainty of results

Barriers Created by Planning

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Ba rrie rs Cre a te d by Pla nning

Discourages redevelopment

Lack of funding for analysis

Inappropriate land use standards

Poor planning causing incompatibility

Barriers Created by Planning

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Take Stock

Ripe for redevelopment?

Solutions to Support Redevelopment

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Plan It

ASP: Planning & Infrastructure

LUB: Nonconforming Buildings

LUB: Parking Requirements LUB: Redistricting

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Remediate brownfield in stages

Sequential Remediation/ Supervision

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Cost Comparison Local Improvement Tax Off Site Levy Generally Available Infrastructure Community Revitalization

Evaluate Financial Tools/Infrastructure

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FCM Green Municipal Fund

Programs/ Funding

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Success Story # 3: Town of Cochrane – Successful Redevelopment

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Domtar Site The Quarry

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Before: 2010

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Domtar wood treatment facility: coal tar/creosote mixture

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During

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After: Current Development

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New Business Since 2011 In & Around the Quarry

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Assessment ($ million) Year

$125.5 million $113 million

Projected Assessment Increase

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SHORT SNAPPE RS

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#1: Increase Permitted Uses

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Standard Development Agreement Utility Right-of-Way Agreement Road Dedication/ Widening Agreement Purchase & Sale Agreement

#2: Get Your Development House in Order

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Same agreement as neighbouring municipalities #3: Development Agreement

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Enhance administrative approvals

#4: Streamline Planning Process

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www.brownleelaw.com LORNE I. RANDA Partner, Edmonton Office lranda@brownleelaw.com Direct: 780-497-4832 Twitter: @foipguru

Questions?