Proposed new regulatory provisions to implement proposed amendments the Development Charges Act, 1997 to extend the 10-year planned level of service to 20 years for the Yonge North Subway Extension (YNSE).
O. Reg. 192/07
Regulation - LGIC
Bill or Act:
Development Charges Act, 1997
Summary of Decision:
-On December 2, 2021 Bill 13, the Supporting People and Businesses Act, 2021 received Royal Assent. The Bill's changes to the Development Charges Act (DCA) will come into force on January 1, 2022.
-Related changes to O. Reg. 192/07 under the DCA will also come into force on the same day.
-These changes extend the 10-year transit planning horizon under the DCA to 20 years for the Yonge North Subway Extension (YNSE).
-The new regulatory provisions would implement the legislative changes by providing additional details regarding the calculation and collection of development charges (DCs) for the YNSE.
-The regulation closely aligns with the proposal. However, minor changes have been implemented based on stakeholder feedback. This feedback led to the revision of YNSE definition which now includes an explicit reference to parking structures and the provision of flexibility to use less than a 20-year planned level of service in the second and every subsequent background study.
-These changes will better position York Region to fund its portion of the YNSE costs, by enabling more of the eligible growth-related costs of the YNSE to be recovered through DCs.
Analysis of Regulatory Impact:
-The new regulatory provisions will better enable York Region to fund its portion of the YNSE costs by changing DC rules to allow more of the growth-related eligible costs of the YNSE to be recovered from DCs over the next 20 years.
-The actual impact of the proposal on the YNSE DC rates will not be known until the municipality completes its DC background study and passes the subsequent DC by-law anticipated in 2022.
-Overall, there are no new administrative costs for regulated entities.
October 7, 2021
Summary of Proposal:
The province is proposing changes to development charges that would help York Region fund its portion of the YNSE.
The proposed new regulatory DC provisions would implement proposed legislative changes that would treat the YNSE separately from other transit services, for the purposes of calculating and collecting DCs. The proposal would extend the horizon for the planned level of service for the YNSE under the DCA from 10 to 20 years.
Proposed YNSE regulatory definition
The proposed new regulatory provisions would define that for the purposes of the DCA, the YNSE would include,
(a) real property for rights of way, subway stations, subway commuter facilities and related facilities;
(b) subway commuter facilities such as parking lots, bus terminals and passenger pick-up and drop-off facilities;
(c) subway stations, including entrances, exits and ancillary station facilities such as ventilation shafts;
(d) subway trains;
(e) vehicles for subway maintenance and service;
(f) tunnel and signal systems;
(g) track systems and running structures, including crossovers, tail tracks and ancillary operating facilities;
(h) power systems, including traction power substations;
(i) road works, utility relocations and traffic management measures to facilitate the construction and operation of the subway, subway trains, subway stations and subway commuter facilities, including,
(i) new access roads,
(ii) road widenings,
(iii) traffic and transit priority signals, and
(iv) reserved bus lanes;
(j) ancillary maintenance and storage facilities, including yard connections; and
(k) emergency exits and ancillary buildings at the surface level. O. Reg. 192/07, s. 2.
Proposed planned level of service provisions
The proposed regulatory provisions would provide information on the method and criteria for estimating the planned level of service. It is proposed that the YNSE would be treated as a discrete service for these purposes, and as such would be dealt with separately from other transit services under the Act. The planned level of service for the subway extension would be zero as of the date of the first DC background study that incorporates the cost of the YNSE is completed by the municipality under section 10 of the Development Charges Act.
Proposed background study provisions
Any background study completed under section 10 of the Act that incorporates the cost of the YNSE would be required to set out the estimated capital costs relating to the subway extension and indicate the portion of those costs that was considered to benefit:
(a) existing development as of the date of the completion of the background study;
(b) development during the 20-year period that follows the completion of the background study; and
(c) development during the 20-year period after the 20-year period mentioned in clause (b).
Municipal Finance Policy Branch
Municipal Affairs and Housing
13th Flr, 777 Bay St.
Toronto, ON M7A 2J3
January 1, 2022