Community Improvement Plan (CIP) for the VMC and Weston Road and Highway 7 Area
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 square metres (75,347 square feet) 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
- City DC rates would be payable at the rate of $20.35 per square metre
- Only applicable to the office portion of mixed-use development
- Residential, retail, commercial and institutional uses do not qualify
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
- Only applicable to the City portion of development charges
Tax Increment Equivalent Grants (TIEG):
- For property owners to offset the incremental increase in assessment resulting from the construction of new office development
- Will begin at 70 per cent of the property taxes and will decline at a proportionate rate over a ten-year period
- Only applicable to the City portion of property taxes
- Only uses defined as an Office Use under MPAC assessment are eligible for TIEG
- TIEG would only apply to the office portion of mixed-use buildings
- 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 square metres (750 square feet) of office development built on the same development site
- May be applied to future high-density residential developments, provided that the residential development is constructed in the same subdivision or same site plan
Podium Parking Incentives (applicable to VMC only):
- Within the VMC office buildings, with a minimum of 2 storeys of below-grade parking, up to 2 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:
- 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
- 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 or will be made on behalf of external review agencies
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 their 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 the 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.
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 York Region, the Province of Ontario and VMC landowners. The final report was adopted by Council on November 17, 2015.
The CIP Study has been completed.
Public Hearing: Dec. 7, 2015 – View Report
Stakeholder Consultation Session: March 4, 2015 – View Presentation
Stakeholder Consultation Session: July 16, 2015 – View Presentation