After almost two decades, Bradford is winding down an early payment agreement with multiple developers, which will add roughly $9.65 million for the town’s water and wastewater projects.
Council approved a report and recommendation from Ian Goodfellow, director of finance and treasurer, to update the early payment agreement two, during the regular council meeting earlier this month.
On top of about $1.17 million extra to cover additional costs under the agreement, the pact will allow the town to transfer roughly another $8.49 million of securities from developers to be split between the water and wastewater development charge reserve funds.
That isn’t anticipated to have any impact on the town’s tax levy, but should help the town pay for the growth-related portion of those projects in future.
“Thank you very much to you and your team for thinking outside the box,” Mayor James Leduc said to Goodfellow.
According to the report, the agreement was originally created in 2007 between the town and 27 developers, who would provide the town with about $66 million in funding so the town could afford to build specific water and wastewater infrastructure, which would service lands owned by the developers, allowing them to build homes.
In exchange, those developers were guaranteed set amounts of water and wastewater allocations, locked in at the 2006 rates, and later more were added at the 2010 rates following an update.
With most projects completed, by May of 2022, the developers proposed wrapping up the agreement, and in June 2022, council directed staff to work toward that goal.
As part of calculating the final amounts, Goodfellow explained staff found some inactive projects that would be removed from the agreement, especially from property owned by Embee Properties Limited and Jovic Development Limited north-east of Yonge Street and Line 8, where the provincial Ministry of Transportation expropriated the entire parcel at 2843 Yonge St. for the creation of the Bradford Bypass.
As a result, Goodfellow explained there is “great deal of uncertainty” over what development can happen or the servicing needed for that property.
Staff also found the revised projects total and servicing could result in developers “having their cake and eating it too,” according to Goodfellow, as they would have effectively paid less than the original 2006 and/or 2010 development charge rates.
To that end, staff proposed and the developers agreed that the town would collect the additional funding to top up the difference, and in exchange, the developers would be permitted to retain any unused allocations at the prior rates for use in any future developments in town.
For Embee-Jovic Development Group, that means retaining 181 water units and 364 wastewater units.
While the financial benefit to the town was generally well received, some councillors still had questions, with Ward 7 Coun. Peter Dykie wanting to know if developers could sell or trade remaining allocations, and Ward 5 Coun. Peter Ferragine asking how the balance of those allocations could impact other future developments, but Goodfellow was uncertain of specifics for either scenario.
Ward 4 Coun. Joseph Giordano suggested that in future, any early payment agreements should contain a sunset clause or deadline by which developers make use of allocations.
