Report No PD Halton Hills

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REPORT TO:                Mayor R. Bonnette and Members of Council

REPORT FROM:              Adam Farr, MCIP, RPP, Manager of Development Review

DATE:                     August 1, 2007

REPORT NO.:               PD-2007-0055

RE:                       Acton and Georgetown Water Redistribution Strategy –
                          Status Report


THAT Report PD-2007-0055 Acton and Georgetown Water Redistribution Strategy
Status Update, dated August 1, 2007, be received;

AND FURTHER THAT, in regards to the 9 SDEs of water system capacity previously
allocated by way of a now expired agreement between the Town and Acton Retail
Developments Inc. to the vacant space adjacent to the Shoppers Drug Mart located at
250 & 252 West in Acton, redistribution occur as follows:
    • 5 SDEs be allocated to the vacant unit to provide water system capacity for 12
       months for tenanting by a medical office or an alternate use which may be
       subject to a water needs assessment prior to an occupancy permit being issued;
    • the remaining 4 SDEs be transferred to the non-residential pool in the Acton
       Urban Area;

AND FURTHER THAT 1 SDE of water system capacity be drawn from the non-
residential pool in the Acton Urban Area and allocated to service the expansion of North
Halton Tool and Die subject to North Halton Tool and Die submitting and obtaining site
plan approval by December 2007;

AND FURTHER THAT Town Staff in conjunction with the Region of Halton and Fire
Services further investigate the water usage requirements of the Fire Facilities in
Georgetown to identify any surplus water system capacity which, based on the
operational demands of these facilities, may be available for recapture and transfer to
the non-residential pool in the Georgetown Urban Area and possible redistribution to
projects in accordance with Council priorities.

This report provides recommendations that establish a basis for the recapture and
redistribution of previously allocated water system capacity with regard to development
applications and projects in the Acton and Georgetown Urban Areas.

At the time of writing this report all available water system capacity has been allocated
in both the Acton and Georgetown Urban Areas.

There is immediate demand for servicing from a wide range of water users in both
communities. At the Town of Halton Hills Council meeting of July 9, 2007 Staff were
asked to provide members of Council with a list of those projects waiting for water
allocation. In this regard, a list has been prepared for circulation at the August 13, 2007
Town of Halton Hills Council meeting. This list captures all of those projects which,
based on application type are closest to attaining a building permit. This includes
consents, minor variances, subdivisions and site plan applications. Approval of any of
these applications requires servicing.

In addition to this list there are pending applications that first require consideration
based on their planning merit then would be eligible for consideration of a request for
water allocation.

The Region has indicated that until new water servicing capacity is brought on stream it
will not approve any development applications for which approval requires servicing.
This includes the application types listed above. If additional water system capacity is
not available, these applications would advance through the development approvals
process as far as possible exclusive of Regional approval of servicing. This means they
would not receive full approval until servicing was confirmed by the Region.

The Region of Halton’s ability to introduce new water system capacity in the Town of
Halton Hills is dependent on when approvals from the MOE are received and when
necessary facility upgrades have been completed. In Georgetown that is not presently
expected until late 2008, and in Acton in 2010.

Until that time projects cannot receive final approval (including site plan approval if
necessary) unless, previously allocated servicing capacity is recaptured, transferred to
the appropriate pool and distributed in accordance with Council’s priorities.

Included among those applications that are imminent or currently being processed and
that will require servicing are the following development projects in the designated
industrial areas within Georgetown and Acton respectively:

   •   EFCO Corp (Georgetown): Site Plan Application received
   •   North Halton Tool and Die (Acton): Site Plan Application pending

Council has assigned a priority to non-residential applications in these areas.

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North Halton Tool and Die (Acton)
North Halton Tool and Die (NHTD) is an industrial fabricator of machine instruments
located within the Acton Urban Area. A site plan application for expansion of the
existing facility appears to be imminent. This expansion would provide additional
administrative space that would relieve crowding and enable the hiring of several new
people (Schedule 1). The servicing demands associated with this expansion require 1
SDE of water system capacity.

EFCO Corp. (Georgetown)
EFCO Corp. is an industrial fabricator of concrete forms for the construction industry.
EFCO is located in the Georgetown Urban Area. EFCO has submitted a site plan
application to permit an expansion of their existing facility to accommodate additional
warehousing and shipping space.

The servicing demands associated with this expansion may require additional water
system capacity (Schedule 2). The Town and Region are now working with EFCO to
identify the scale of the demand.

As a response to the constraints on water system capacity and ongoing demands for
servicing, on July 9, 2007, Council adopted with minor amendments the
recommendations contained in Report PD -2007-0039. These recommendations
approved conditional allocation of SDEs (a measure of water system capacity) to a
number of projects which had been previously identified by Town staff in
Report-2007-0031 as having SDEs available for possible recapture and transfer to other
projects for which demands for servicing capacity have been identified.

The intent of the approved recommendations was to provide conditional extension of
previous allocations of water to projects where the water system capacity had, for
various reasons, remained unused. The conditions establish performance requirements
for retention and use of the water system capacity. Failure to meet those performance
requirements would result in a review of the suitability of the allocation of water system
capacity to these projects relative to other demands in the Town. Council could then
consider whether or not to recapture the previously allocated and unused water and
redistribute it to other projects.

Report-2007-0039 identified two projects for additional study and future reporting to
Council at the August 13, 2007 Council Meeting. These included:

   •   Shoppers Drug Mart: 250 & 252 Queen Street West, Acton, D09/14 250-252
       (OPA); and
   •   the South Georgetown Fire Facility.

Report PD-2007-0039 also indicated that, if water became available in either community
by way of the recapture strategy, it would be allocated on a priority basis to expansion
of North Halton Tool and Die (located in Acton) and EFCO Corp. (located in

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The following provides a summary of the results of further study of the potential for
recapture of water system capacity associated with the Shoppers Drug Mart/Vacant
Space project and a status report on the South Georgetown Fire Facility.

Shoppers Drug Mart/Vacant Space (Acton)
The Shoppers Drug Mart project in Acton located at 250 & 252 Queen Street is made
up of three businesses TD Bank, Shoppers Drug Mart and a vacant space originally
intended for medical/healthcare services office. In 2005 the Town requested that the
Region provide a 10 SDE allocation for the Bank and the vacant space intended for a
medical office. The Region set aside the water system capacity as requested. Of those
10 SDEs, 1 SDE went to the Bank (now built and operating) and the other 9 SDEs were
set aside to accommodate the higher intensity servicing demands of a
medical/healthcare office. Shoppers Drug Mart was provided an allocation prior to this
and exclusive of the 10 SDEs.

The history and details of the 9 SDE allocation to the vacant space are as follows:

   •   In May 2005 the previous owner of the site, Acton Retail Developments Inc.,
       pursued a leasing opportunity with TD Bank for a portion of the property. As part
       of their efforts to develop the site, the developer offered to develop a medical
       office in the space adjacent to that currently occupied by Shoppers Drug Mart
       (Schedule 3).
   •   Acton Retail advised the Town that they would build office space and maintain
       the space as vacant in order to facilitate efforts to recruit a medical doctor(s).
   •   Acton Retail committed to maintaining the vacancy and pursuing a medical
       services tenant for 12 months from the date of completion of the shell of the
   •   Acton Retail requested assistance from the Town in securing a water allocation
       for a medical services office.
   •   Town Council passed a recommendation at the Council meeting held on
       February 21, 2005 advising the Region of Council’s interest in assigning a
       general priority to medical services in Acton and requesting water allocation for
       such uses (Schedule 4).
   •   In Report PPW51-05, dated April 6, 2005, the Region recognized Town Council’s
       recommendation and set aside 10 SDEs for anticipated use of the vacant space
       by a medical doctors office (page 4 of Schedule 5). The intent was to assist the
       developer, Acton Retail, in ensuring adequate servicing to facilitate a physician
       recruitment program that would be undertaken by the developer’s own leasing
       agent. This leasing agent specialized in medical services type leasing
   •   The property was sold in November 2005.
   •   The construction of the vacant space was deemed complete on March 6, 2006.
       The building permit issued for the vacant space was issued with the condition
       that a separate permit be issued for interior work. 12 months have passed since
       the building was deemed complete. 12 months reflected the duration of the
       commitment to the Town by Acton Retail to pursue a medical doctor as a tenant
       for the building.

                                                                                  Page 4
   •   The sales agreement (Schedule 6) between Acton Retail (the previous owner)
       and the new owner, 2080452 Ontario Ltd. includes several noteworthy provisions
       These provisions expire November 21, 2007 and are contained within the
       following clause:
           o THE PARTIES acknowledge that there may be on closing approximately
              2000 square feet of unleased space in the development which is restricted
              to use by medical doctors for a period of two years pursuant to an
              agreement between the Vendor (Acton retail developments Inc) and the
              Town of Halton Hills. The Vendor shall act as the Purchaser’s leasing
              agent during the Income Guarantee period and the purchaser’s execution
              of any leases will be subject to the Vendor’s reasonable direction and
              approval of any such leases.
   •   In summary, this agreement states that:
       o the space will remain vacant for 2 years from the date of the sale and during
           that time:
              o the space is restricted to use by medical doctor unless otherwise
                   approved by the previous owner;
              o the previous owner guarantees the lease payments on the vacant
                   space for those 2 years; and
              o the previous owner has approval over any tenants attracted by the new

Although the arrangement between the Town and Acton Retail suggested that efforts
would be expended to recruit medical doctors to tenant the vacant space, the extent to
which this has occurred is unclear. The previous owner advised the Town that they
would employ their in-house leasing agent to target medical doctors. To date, the
space remains untenanted.

Although the new owners have been permitted under the terms of their sales agreement
with Acton Retail to seek and secure tenants upon approval by Acton Retail they have
not done so. The issues raised by the Town’s pursuit of a water redistribution strategy
in relation to their previously allocated but unused water system capacity has triggered
the new owners to review their lease and focus their efforts on tenanting the vacant

The new owners have advised the Town that they have a number of interests relative to
this property.
    o There is a strong desire to tenant the property given the forthcoming end to the
       provision in their lease agreement whereby Acton Retail pays the new owners to
       keep the space vacant;
    o The owners have a preference for a medical services office tenant. This is
       because the tenant in the adjacent space within the building is Shoppers Drug
       Mart and Shoppers’ prefers a medical services tenant as part of its business
    o Given the impending vacancy and the difficulty of recruiting medical doctors, the
       new owners wish to consider tenanting the space with any of the other uses
       permitted on this property under the Zoning Bylaw.

                                                                                 Page 5
   o The owners wish to secure rights in perpetuity to all 9 SDEs of water system
     capacity previously allocated for a medical doctors’ office, but unused, to ensure
     servicing at any time in the future for any use permitted under the Zoning Bylaw
     for this property. Under this scenario, the new owners wish to have the flexibility
     to tenant the property in the short term with a non-medical use (if a medical
     services office cannot be attracted in the short term) and then, at some point in
     the future, tenant the building with a medical services office should recruitment
     efforts prove successful.

South Georgetown Fire Facility (Georgetown)
The Fire Department is currently working with their consultants, the Town and Regional
Staff to determine the viability of well and septic services for the South Georgetown Fire
Facility. In addition, the Region is assessing the water usage demands associated with
the Maple Avenue and proposed South Georgetown Fire Facilities.

It is the intent of the Fire Services Department to assess in detail their water usage
needs for both Fire Facilities. In the interim Fire will continue to hold the 13 SDEs
previously allocated by way of the Council approved recommendations within Report-
PD-2007-0031. After the results of more detailed study are complete, Town Staff and
the Region, working with Fire Services will identify any surplus capacity. If there is
surplus capacity then those SDEs would be returned to the non-residential pool in the
Georgetown Urban Area.

In both cases above, the water system capacity available for recapture coincides with
the immediate servicing needs of North Halton Tool and Die in Acton and EFCO Corp.
in Georgetown.


Shoppers Drug Mart/Vacant Space (Acton)

In an effort to help the developer attract a medical/healthcare office to the Acton
community, 9 SDEs of water system capacity was allocated to the vacant space.
However, the use has not materialized and it is unclear when or if a doctors’ office may
be attracted.

This report recommends reducing the water allocation to this site from 9 SDEs to 5
SDEs. The remaining SDEs would be transferred to the non-residential pool and
available SDEs allocated to North Halton Tool and Die subject to North Halton Tool and
Die submitting and obtaining site plan approval by December 2007.

Three factors contribute to the recommendation contained in this report regarding
servicing capacity assignment to this site.
           1. the assessment of the marketability of the space by the Physician
              Recruitment Coordinator at the Region of Halton including an estimate
              that the space was sufficient to tenant 2 doctors,
           2. the preference by the new owners to secure a medical doctors’ office over
              an alternate use, and;
                                                                                  Page 6
          3. the business concept dynamics employed by Shoppers Drug Mart in
             choosing to locate in proximity to a medical doctors office.

Additional inquiries were made with the Region to determine the marketability of the site
for a doctors’ office and to determine what a suitable amount of water system capacity
would be, if the space was tenanted.

The Physician Recruitment Coordinator at the Region of Halton was contacted in
regards to these two questions and reports the following.

   •   New doctors are typically attracted to clinic settings where several doctors share
       the costs and logistics of running the office. This is considered to be a more
       desirable scenario for a newly practicing doctor.
   •   The vacant space adjacent to Shoppers Drug Mart would likely house 2 doctors.
       Consequently, the overall attractiveness is limited to a smaller portion of
       practicing doctors excluding those newly practicing doctors who would show a
       preference for a clinic type setting.

These factors led to the recommendation within this report to set aside servicing
capacity of 5 SDEs for a period of 12 months on the condition that a doctors’ office is
recruited to tenant the vacant space. Five SDEs provides sufficient water system
capacity for a two doctor office.

The effect of providing an allocation of 5 SDEs to the vacant space would be to ensure
sufficient servicing capacity for a medical doctors’ office occupied by two doctors. It
would also allow for the recapture of 4 SDEs (from the previous allocation of 9 SDEs).
This additional water system capacity would be returned to the non-residential pool and
redistributed to North Halton Tool and Die by way of the recommendation contained
within this report.

If an alternate tenant is secured to occupy the space within 12 months, then an
assessment of the servicing requirements for that use will be conducted against the 5
SDEs assigned to the site prior to issuing the occupancy permit. The intent of such an
assessment would be to determine if there is surplus water system capacity based on
the lower water usage demands of a less intensive, non-medical service offices use of
the site.

If, after 12 months, no tenant has been gained to occupy the vacant space, then the
owner will be notified that the water allocation of 5 SDEs will be reviewed against the
needs associated with uses other than medical services with the intent of considering
the possible recapture of any surplus capacity.

                                                                                   Page 7
South Georgetown Fire Facility (Georgetown)
Town Staff will work with the Region and Fire Services to determine if there are any
additional SDEs of water system capacity associated with the Georgetown Fire

In the interim Fire Service will keep the 13 SDEs. Anything over what they need can be
returned to the non-residential pool.

Town Staff will work to coordinate the review of any surplus SDEs associated with the
Fire Facilities with the review of the servicing needs associated with EFCO’s site plan


The recommendations contained within this report relating to the redistribution of
previously allocated Acton and Georgetown water system to projects consistent with
Council’s priorities tie directly to the Strategic Plan directions and Strategic Plan actions
relating to the management of growth.


The recommendations contained within this report will lead to the release of
development projects for construction, which will generate a variety of revenues through
development agreements, building permits, and new growth assessment.


The Region of Halton will be notified of Council’s recommendation in order that they
may be informed of Council’s direction to allocate to the appropriate water allocation
categories. Town staff will then work with the development sector to implement the


Planning and Development Staff have met with Staff of the Region and Fire Services
and agents representing the new owners of the Shoppers Drug Mart project in Acton in
regards to the matters contained within this report.

Planning and Development Staff have consulted with the Region in confirming their
practice regarding water allocation, amounts of water required for servicing various
properties, in identifying the impacts of various scenarios and gathering other relevant
information necessary to formulate the Report recommendations.

                                                                                      Page 8

There is sufficient capacity available from previous water allocations provided to the
Shoppers Drug Mart project in Acton to allow for the occupation of the vacant space on
that site with a variety of uses including a medical doctors office and to return water
system capacity to the non-residential pool. These recaptured SDEs of water system
capacity would be available for allocation to facilitate the expansion of North Halton Tool
and Die and to meet the immediate servicing needs of other non-residential applications
in Acton.

A more detailed assessment of the servicing demands of the Georgetown Fire Facilities
needs to be undertaken to determine if among the 13 SDEs of water system capacity
set aside for these Facilities there is any surplus that could be returned to the non-
residential pool. If there is sufficient additional capacity then this could be made
available to meet the servicing requirements associated with the EFCO expansion
thereby permitting site plan approval for that project.

Respectfully submitted,

Adam Farr, MCIP, RPP
Manager of Development Review

Bruce MacLean, MCIP, RPP                          Dennis Y. Perlin
Director of Planning and                          Chief Administrative Officer

                                                                                   Page 9
                   Schedule 1
            Report No. PD-2007-0055
Water Usage Report from North Halton Tool and Die

                                                    Page 10
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Page 12
                                     Schedule 2
                               Report No. PD-2007-0055
                        Water Usage Estimate from EFCO Corp.

                              30 Todd Road, Georgetown, Ontario L7G 4R7
                                Phone 905-877-6957 • Fax 905-877-1858


Attn: Mr. Bruce MacLean
      Director of planning
      Town of Halton Hills

Re: Plant expansion water usage

Dear Sir

I understand that the planning staff has asked for this letter since water appears to be a
critical issue.

This will certify that the future manufacturing water usage will not differ with the addition
of our new plant facility. This new building envelope will be dedicated to warehousing
and shipping only.

Our workforce may increase over the next five years from 10 to 20 plant employees in
any given year. This number will be dispersed over three shifts and may also decrease
in any given year. These fluctuations in workforce would occur irrespective of the
proposed addition since employment is totally dependent upon our product market

Please do not hesitate to contact me should you have any questions


Bernie Poirier
Efco Operations Manager

                                                                                    Page 13
                                 Schedule 3
                           Report No. PD-2007-0055
Letter from Acton Retail to Town Of Halton Hills Re: Medical/Healthcare Office

                                                                        Page 14
Page 15
                                  Schedule 4
                         Report No. PD-2007-0055
Letter from Town Of Halton Hills to the Region Regarding Water Allocation for
                  Acton Retail Medical/Healthcare Office

                                                                       Page 16
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           Schedule 5
    Report No. PD-2007-0055
Region of Halton Report PPW51-05

                                   Page 19
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                              Schedule 6
                        Report No. PD-2007-0055
Sales Agreement Provisions between Acton Retail and 2080452 Ontario Ltd.

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