Community Improvement Plan (CIP) for the Vaughan Metropolitan Centre (VMC) and other Intensification Areas

Program deadline extended to 2022

Vaughan office space is in high demand, so the City of Vaughan is expanding the supply by offering incentives for large office developments. The CIP applies to developments of 7,000 sq. m. (75,347 sq. ft.) or larger in the Vaughan Metropolitan Centre and Weston and Highway 7 Primary Centre.

Financial Incentive Programs

Development Charge (DC) Grant/Reduction:

• Development charge will be ‘frozen’ at the rates in effect before the enactment of the 2013 City-wide DC by-law. The City DC rates would be payable at the rate of $20.35 per sq. m.
• The DC rate freeze is only applicable to the office portion of mixed-use development. Residential, retail, commercial and institutional uses do not qualify for the DC rate freeze.

Development Charge Deferral:

• For development sites located within the VMC area, applicants are eligible to defer payment of the City’s DCs for a period not exceeding 18 months, from time of building permit issuance in alignment with the York Region deferral program.
• The deferral is only applicable to the City portion of development charges.

Tax Increment Equivalent Grant (TIEG):

• A grant to property owners to offset the incremental increase in assessment resulting from the construction of new office development.
• The grant will begin at 70 per cent of the property taxes and will decline at a proportionate rate over a ten-year period.
• The grant is only applicable to the City portion of property taxes.
• Only uses defined as Office Use under MPAC assessment are eligible for TIEG. TIEG would only apply to the office portion of mixed-use buildings, and other tax classes located in the same land or building that the office uses occupy, would not be eligible for TIEG financing.

Cash-In-Lieu (CIL) of Parkland Exemption/Reduction:

• An exemption of CIL Parkland fees for office development projects, equivalent to 2 per cent of the land value for office space.
• In mixed-use buildings, a discount on CIL Parkland fees of $4,400 per residential unit, for every 70 sq. m. (750 sq. ft.) of office development built on the same development site.
• The CIL discount may be applied to future high-density residential developments, provided that the residential development is constructed in the same subdivision or same site plan.

Non-CIP Incentives

Podium Parking Incentives (applicable to VMC only):

• Within the VMC office buildings, with a minimum of two storeys of below-grade parking, up to two storeys of integrated above-grade parking, located within the podium of the building may be excluded from the calculation of the total height and density of a building, thereby not requiring Section 37 contributions for up to two storeys of additional building height.
• Section 37 contributions may be required in other instances if the height exceeds two additional storeys and underground parking is not provided.

Expedited Development Approvals:

• The City of Vaughan will undertake an expedited development approval process for office and mixed-use development process where office uses are deemed to be the prevalent uses. The City will provide a dedicated staff team to meet with the applicant, its tenant(s) and/or its consultants to ensure that the project is delivered as expeditiously as possible. No warranties can of will be made on behalf of external review agencies.

Application Process

Step 1: Application submission

• Applicants are required to have a pre-application consultation meeting with municipal staff in order to determine program eligibility.
• Applicants are required to submit completed application including supporting documentation to the Development Planning department.

Step 2: Application review and evaluation

• Staff review and evaluate application and supporting documentation against eligibility requirements.

Step 3: Grant approval

• Staff will determine grant(s) approval at building permit issuance.
• Signed CIP Agreement is received from property owner. The CIP Agreement is executed and registered on file.

In addition to the financial incentives offered under Vaughan’s CIP program, office development projects may be eligible for development charge deferrals from the Region of York. For details on Regional incentives, please visit: york.ca/financialincentives.

Background

In December 2014, the City of Vaughan initiated a CIP Study to explore the provision of financial and planning tools to encourage office development in the VMC and other intensification areas. Although the VMC enjoys superior locational advantages and direct subway connections, it was acknowledged that these advantages may be insufficient to offset the higher development costs associated with the VMC’s highly urbanized environment relative to competing office locations across the GTA.

The intent of the Study was to designate a Community Improvement Plan Project area for the VMC and other intensification areas; and propose a package of financial tools that would most effectively attract office development and support the City’s economic development and employment goals for the VMC. The CIP study made recommendations for incentive tools to achieve up to 1.5 million square feet of office space, and the tools will be available for up to five years, whichever occurs first. With these parameters, the City is encouraging office development in the short-term.

Led by the consulting teams, Hemson Consulting and Urban Strategies Inc., the project consisted of background research, including a review of best practices and policies, and public consultations with the York Region, the Province of Ontario, and VMC landowners. The final report was adopted by Council on Nov. 17, 2015.

The CIP Study has been completed.

• View Final Report
• View Final By-laws

Consultations
Public Hearing: Dec. 7, 2015 - View Report
Stakeholder Consultation Session: March 4, 2015 - View Presentation
Stakeholder Consultation Session: July 16, 2015 - View Presentation