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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

Non-CIP Incentives

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

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 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.

Office Development Incentives

Vaughan office space is in high demand, so the City of Vaughan is expanding the supply by offering incentives for large office developments.

Development Charge Deferrals for Office Buildings in the Regional Centres and Corridors

Office developments located in the Regional Centres and Corridors with a minimum of 4 storeys and 50,000 square feet are eligible for an interest-free deferral of the City’s development charges for up to 20 years. This pilot program is available for three years, or up to 1.5 million square feet, whichever occurs first.

Duration of DeferralSize of Office Building (4-storey minimum)
20 yearsMore than 400,000 sq. ft.​
15 years250,000–400,000 sq. ft.​
10 years150,000–250,000 sq. ft.
5 years50,000–150,000 sq. ft.​
City-Wide Development Charges Deferral for Office Buildings

Office developments with a minimum of four storeys are eligible for an interest-free deferral from the City’s development charges for 18 months. A Letter of Credit must be provided for the development charges being deferred.

For more information, program qualification criteria and terms and conditions, visit the City’s Development Charges page.

These programs align with York Region’s Financial Incentives for Complete Communities.

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

Large office developments in the Vaughan Metropolitan Centre and Weston Road and Highway 7 Primary Centre are eligible for a suite of incentives, including:

  • Development Charge Grant/Reduction
  • Development Charge Deferral
  • Tax Increment Equivalent Grant (TIEG)
  • Cash-In-Lieu of Parkland Exemption/Reduction
  • Podium Parking Incentives (VMC Only)
  • Expedited Development Approvals

For more details, visit the Community Improvement Plan page.

Vaughan Metropolitan Centre Website