So, big news. A judge has ruled that the Town of Richmond Hill is allowed to appeal an Ontario Municipal Board decision that—no, wait, where are you going? Come back, this is really interesting. OK, so the judge has ruled the Town can appeal an OMB decision that limited the amount of parkland the Town could get through the development process as it intensifies.
Why is this important? Well, because many other Greater Toronto Area municipalities are intensifying (Markham and Vaughan, to name just two) and they will need more parkland to serve these new higher-density areas, and they are not too pleased about the idea that the OMB, an unelected board that can overturn municipal planning decisions, could also cap their parkland dedications.
Ready for more park nerdery? Well, slip on your Blundstones because here we go
The Planning Act, which sets the rules for urban planning in the Province of Ontario, allows municipalities to use levies on new development to get land or money for parks. The regular way this is done is by requiring 5% of the land or a cash equivalent. This is okay for spread out subdivisions where you have a lot of land that houses a medium amount of people on it. Five percent works out to be okay. But if you have a tiny piece of land and a big tall condo on it filled with lots of people then 5% of the land doesn’t really get the amount of park space all those people need.
So: the alternate rate
The alternate rate in the Planning Act allows municipalities to ask instead, in areas designated for higher density, for 1 hectare of land for every 300 units in a building. If you’re building a condo with, say, 600 units, you need to provide 2 hectare of land (or the cash equivalent). This makes more sense because a denser building = more units = more people living in the building = more park space needed. It’s all tied together with a nice little green bow.
Developers do not like that bow
The argument is that the money they must pay per unit for these park levies drives up the cost of housing in the end and is a disincentive to the kind of high-density development all these municipalities are trying to encourage. Which does make intuitive sense. The more fees you add onto each unit you build, the more expensive it is for the developer, and the more costly the unit in the end. However, in the real world where there is a market environment, there is only really so high you can price a unit, even if you are being charged a bunch of fees.
But wait, what’s this thing about Richmond Hill?
Right. So a few years ago Richmond Hill did a smart, proactive thing. They realized they had to intensify (because Provincial policy directs them to) and so they did up a Parks Plan that laid out the park needs in the Town. Then they calculated how much park space would be needed and used that to justify creating a by-law that asked for the full amount of the alternate rate: 1 hectare of parkland for every 300 units.
Developers did not like this
They appealed the park policies in the Official Plan to the OMB on the basis that it was too high and would be a disincentive to development. They argued it would actually discourage the kind of intensity the Town was hoping for, and contribute to unaffordable housing. The OMB ultimately agreed with the developers and capped the amount of land or cash the Town could ask for at 25% of the land area of the development.
On a certain level, a cap does make sense
If you are building a condo on a plot of land that is 0.5 hectares in size, but will contain 300 units you will owe the Town 1 hectare of parkland, or the cash equivalent. See the issue? You don’t have 1 hectare of land. You have 0.5 hectares, and presumably you want to, you know, actually put your building on some of that. On the small sites that a lot of condo towers are built on you get into this weird situation with the alternate rate where you can owe more land than you have because you’re building a lot of units on a small piece of land. The solution? A cap.
But on another level, a cap doesn’t make sense
The fact that it’s a small piece of land doesn’t change the ultimate fact that the building will house X amount of people who need a place to walk their dog, play with their kids, or surreptitiously drink a beer on a picnic blanket while reading a book (not speaking from personal experience here). Capping the amount really does hinder the amount of parkland that is actually needed for all the people living in the building. In fact, Richmond Hill argued the OMB ruling cheated the Town out of $70 million in parkland that it needs for the future.
When you think about it, the OMB placing a cap is kinda messed up
Provincial legislation allowed municipalities to ask for 1 hectare of parkland for every 300 units if they pass a by-law stating so. Richmond Hill did a parks study that justifies the need to ask for that amount, so they passed a by-law. All perfectly legal. Then all of a sudden the OMB goes, um, nope. Really? Nope to something that Provincial legislation allows? Alrighty then, OMB.
So now Richmond Hill will argue its case in front of an appeals court, which could overturn the OMB ruling. If it does, this will be good news not just for Richmond Hill, but for Markham and Vaughan and all the other municipalities who are watching this and wondering how this will ultimately affect their ability to generate the needed parkland for their growing cities.
Let the Town decide what the Town needs
If the Town wants to set its alternate rate at the full amount allowed by law, they should be allowed to do it. If they find it is negatively impacting their goals of intensification because developers are less inclined to build tall buildings, then they can adjust it. The point is that it should be up to the municipality to make that decision. Didn’t we elect people to make these decisions? Didn’t we craft legislation to allow these things? OMB, you’re drunk, go home.
title image from Richmond Hill’s Regional Centre Design and Land Use Study, showing the approved parks and open space framework