M.D. of Opportunity No. 17
LAND POLICY
TITLE:
LAND DEVELOPMENT GRANT PROGRAM
EFFECTIVE DATE:
MARCH 25, 2015
POLICY NUMBER:
L.7
Purpose of Policy:
The purpose of this Policy is to establish the Land Development Grant Program (“the
Program”) in order to encourage the subdivision, servicing and improvement of raw /
vacant land in the M.D. and increase the number of lots that can be sold on the open
market for residential, commercial and industrial land uses.
POLICY STATEMENTS:
The Municipal District of Opportunity No. 17 (“the Municipality”) is committed to
encouraging low, medium and high density residential, commercial and industrial
development within the hamlets of the Municipality to accommodate future balanced
growth.
To this end, Council has established a Land Development Grant Program for new land
development projects to encourage the subdivision, servicing and improvement of raw /
vacant lands into buildable and saleable lots for residential, commercial and industrial
land uses.
1.
Application Area, Effective Date and Program Timeline
a)
This Program applies to all projects proposing to develop raw and/or
vacant land located within a hamlet of the Municipality that can be rezoned for residential, commercial or industrial purposes in accordance
with the Municipality's Land Use Bylaw.
b)
For the purpose of this Program, the definition of “raw / vacant land”
specifies the following:
(i)
Raw Land – Any land in its natural state with no man-made
improvements including survey and infrastructure, such as
municipal water and sewer mains, roads, and franchise utilities.
(ii)
Vacant Land – Any parcel of land that requires further man-made
improvements, such as subdivision, servicing and/or utilities, in
order to become saleable lots on the open market.
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Land Policy – Land Development Grant Program (L.5)
2.
c)
For the purpose of this Program, the land tax rate includes the total
municipal, school, seniors and housing portions of the tax rate. The total
tax rates for residential and non-residential lands are set by Council on
yearly basis.
d)
This Program becomes effective upon approval by Council.
e)
Once approved, the Program shall run for an initial four (4) year period for
application submissions.
At the end of the four-year trial period,
Administration shall evaluate the overall effectiveness of the Program and
report its findings to Council. Council can then determine whether to
continue the Program.
f)
All Program funding is subject to Council approval within the Municipality's
operating budget and all applications for grants shall be processed on a
first come, first serve basis subject to the availability of funding as
approved by Council.
Eligibility
a)
The grant outlined in this Policy is effective and eligible to developers
proposing new land development projects after the date on which this
Policy comes into effect.
b)
To be eligible for grant approval, the applicant must propose to subdivide
from a raw / vacant land, and enter into a development agreement with the
Municipality. The subdivision, servicing and local improvements to be
planned and constructed per the development agreement must result in at
minimum five (5) new serviced and buildable lots ready to be sold in open
market for residential, commercial or industrial purposes.
c)
The subdivision, servicing and local improvements work must all comply
with all planning and development regulations, including the Municipality’s
Design Guidelines and Construction Standards, any relevant policy or
statutory plan which applies to the area, the Land Use Bylaw and other
relevant bylaws. Applicants will be responsible for securing all required
permits, and all work must comply with all applicable Provincial and
Federal legislations.
d)
Specific requirements of subdivision, servicing and local improvements
shall be defined in the development agreement between the Municipality
and the developer. Under this Program, the following general definitions
shall apply:
(i)
Subdivision shall include any required re-zoning, adoption of new
bylaws, utility right-of-way planning, and the surveying and
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Land Policy – Land Development Grant Program (L.5)
registration as outlined in the Municipal Government Act R.S.A.
2000, c. M-26, as amended, Subdivision and Development
Regulations AR 43/2002;
(ii)
Servicing shall include the provision of municipal water and sewer
servicing to private lot boundaries, franchise utilities, and
registration of utility right-of-ways required by these services; and
(iii)
Local improvements shall include, but are not limited to any public
and private roads and accesses required to access the lots,
stormwater management systems, water and sewer systems and
franchise utilities within private and public properties, and all other
specifications required by the Municipality.
e)
The Program is limited to one grant application per land development
project.
f)
The applicant must be the registered property owner, and/or his or her
designate, of the final completed lots.
g)
The Municipality shall inform all eligible land development project
proponents that they are eligible to apply for a grant under this Program.
The applicant will only be eligible to receive the grant once the
Municipality has received verification that the servicing and local
improvements have been completed to the Municipality's satisfaction per
the development agreement, and have paid the current tax year’s
outstanding land tax balance. The Municipality reserves the right to
consider grant applications from applicants with outstanding arrears. Grant
funding will be applied to outstanding payments prior to issuance.
h)
All land development projects approved under this Program must be
completed in a timely manner. All projects must be completed within thirtysix (36) months of the approval of project proposal by the Council. Failure
to complete the project in a timely manner will result in cancellation of the
application under this Program at the discretion of the Municipality.
i)
Applicants must be in good standing with the Municipality in order to
qualify under this Program. Applicants that have outstanding utilities and
taxes, including tax arrears, may not qualify for this Program at the
discretion of the Municipality. Applicants with any litigation with the
Municipality will not qualify for this Program.
j)
The applicant is not eligible for a grant under this Program if they have
already been approved for a Subdivision Grant under the L.2 – Subsidized
Subdivision Grant Program. Conversely all applicants approved under this
Program shall not be eligible to apply for a Subdivision Grant.
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Land Policy – Land Development Grant Program (L.5)
3.
4.
k)
All contractors must be licensed by the Province of Alberta.
l)
Grants will be awarded to the original applicant/developer and will not be
awarded to subsequent land owners.
Land Development Grant
a)
The applicant shall apply for the land development grant upon signing of a
development agreement between the applicant and the Municipality.
b)
All applications must be reviewed by Council for approval.
c)
The grant is a onetime payment made to the developer, and shall be 100%
of the total increase in tax assessment as the result of all improvements
made to the raw lands.
d)
If application is approved by Council, the grant shall be paid in the same
tax assessment year, and upon the receipt of the total tax payment
outstanding for that year.
e)
Grants will be awarded upon the receipt of a construction completion
certificate as defined in the development agreement.
Application Requirements
a)
Applications submitted under this Program must include the following
components:
(i)
A project proposal for a residential, commercial or industrial
subdivision specifying the zoning and land use;
(ii)
A detailed written explanation, with plans/drawings, of the proposed
subdivision showing lot lines, roads, servicing and utilities;
(iii)
A detailed list of work planned, and a complete timeline;
(iv)
The legal description of the property and legal name of the
developer;
(v)
Any additional information the Chief Administrative Officer may
reasonably require.
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Land Policy – Land Development Grant Program (L.5)
5.
6.
Application Process
a)
In conjunction with or prior to filing an application, the applicant shall
review this Policy and consult with the Lands, Planning and Development
Department regarding the application process, requirements, criteria, rules
of eligibility, project design and other relevant details of the proposed
project.
b)
In order to ensure adequate, consistent review and evaluation, the project
proposal shall be prepared in accordance with the format established by
the Chief Administrative Officer.
c)
Applications for grants under the Program will be accepted throughout
each calendar year subject to available funding for the Program. Complete
applications shall be submitted to the Municipality’s Lands, Planning and
Development Department.
d)
The Municipality reserves the right to accept, reject or modify any
application and render decisions in regards to complete applications as
approvals, approvals with conditions, and refusals.
General Program Conditions
a)
The general conditions and requirements of the Program are not
necessarily exhaustive and the Municipality reserves the right to include
other conditions, considerations and requirements as deemed necessary
on a property specific basis. All grant pursuant to this Program are
subject to the following general conditions and requirements:
(i)
If an applicant is in default of any of the Program’s requirements or
conditions, or any other requirement of the Municipality, the
Municipality may delay, reduce or terminate an approved grant;
(ii)
The Municipality may discontinue the Program at any time but
applicants with approved applications but unpaid grant will receive
the said grant, subject to meeting the Program’s conditions and
requirements, for that tax assessment year;
(iii)
The Municipality may inspect the property that is subject to an
application under this Program at any time;
(iv)
Outstanding work orders, and/or orders or requests to comply,
and/or other charges from the Municipality must be satisfactorily
addressed prior to any grant being issued at any time; and
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Land Policy – Land Development Grant Program (L.5)
(v)
7.
If the post-development tax assessment is appealed by any party
for the properties that are the subject of an application under this
Program and the post-development tax assessment is reduced, the
Municipality will recalculate payments made to the applicant that
were based on the higher assessment and any overpayment shall
be repaid to the Municipality by the applicant.
Responsibilities
a)
b)
c)
Council
(i)
Approves changes to this Program and Policy;
(ii)
Approves Program funding for implementation of this Program; and
(iii)
Evaluates the Program upon completion.
Chief Administrative Officer
(i)
Recommends to Council the application of this Program;
(ii)
Recommends to Council the Program funding for implementation of
the Program;
(iii)
Recommends changes to the Program to Council;
(iv)
Provides administrative evaluation of the Program upon completion;
(v)
Identifies a funding source for the
recommendations to Council accordingly;
(vi)
Renders decisions regarding the approval, approval with conditions
or refusal of grant applications pursuant to this Program;
(vii)
Administers the funding source; and
(viii)
May delegate the Chief Administrative Officer’s authority under this
Policy as deemed appropriate.
Program
and
makes
The Lands, Planning and Development Department
(i)
Recommends to the Chief Administrative Officer the Program
funding for implementation of the Program;
(ii)
Recommends changes to the Program to the Chief Administrative
Officer;
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Land Policy – Land Development Grant Program (L.5)
8.
(iii)
Recommends a funding source for the Program to the Chief
Administrative Officer;
(iv)
Evaluates the Program annually, provides reports to the Chief
Administrative Officer regarding its performance and makes
appropriate
recommendations
regarding
its
ongoing
implementation;
(v)
Serves as the Municipality’s contact for receipt of applications for
Program grants issued pursuant to this Program;
(vi)
Evaluates applications for completeness;
(vii)
Coordinates the administrative review of applications throughout
the period between submission of the application and project
completion;
(viii)
Prepares a written report to the Chief Administrative Officer on
each application with a recommendation to approve, conditionally
approve or refuse an application; and
(ix)
Conducts on-site pre-construction, post-construction and periodic
inspections of the subject project.
Measurements for Program Effectiveness
a)
In order to measure the effectiveness of the Program at the end of the
four-year trial period, the Municipality shall establish starting benchmarks
and final evaluation criteria which may include such measurements as:
(i)
2015 baseline figures;
(ii)
Assessment impacts upon the Municipality;
(iii)
Review of the number of serviced and saleable residential,
commercial and industrial lots created through participation in the
Program; and
(iv)
Review of new employment opportunities created through the
Program.
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Land Policy – Land Development Grant Program (L.5)
SCHEDULE "A"
EXAMPLES
Scenario 1: A developer proposes to develop 10 industrial one-acre lots within a
quarter section adjacent to a municipal road with water and sewer mains.
 Zoning is M1 – Industrial District, and non-residential land tax rate is 2.44%*.
 Raw land assessment is $20,000/acre, therefore total annual tax for 10 acres of
this raw land is $4,880.
 Developer is on a 3-year timeline to develop, but must continue to pay for annual
taxes during these 3 years.
 Development was completed in October 2018. The lands were reassessed by
June 2019, at $200,000/acre, for total annual tax of $48,000 for 10 acres.
 Eligible grant amount is $48,000 - $4,800 = $44,000.
Scenario 2: A developer proposes to develop 30 residential 0.5-acre lots, for total of 15
acres, within a raw land adjacent to a municipal road with water and sewer mains.
 Zoning is currently UR – Urban Reserve District, but will be rezoned to R1A –
Residential District. Residential land tax rate is 0.53%, with annual minimum of
$400*.
 Raw land assessment is $1,000/acre, therefore total annual tax rate for 15 acres
of this raw land is $440.50.
 Developer is on a 3-year timeline to develop, but must continue to pay for annual
taxes during these 3 years.
 Development was completed in April 2018. The lands were reassessed by June
2018, at $60,000/acre, for total annual tax of $4,770 for 15 acres.
 Eligible grant amount is $4,770 - $440.50 = $4,329.50.
* Based on the 2014 land tax rate as approved by Council.
Table: Land Development Grant Examples
Scenario Tax Rate
No.
1
Industrial =
2.44%
2
Residential
= 0.53%,
minimum
$400
Raw land (predevelopment)
market value
Area to be
developed
by
applicant
Total predevelopment
land tax
$20,000 / acre
10 acres
$4,880
$200,000 /
acre
$48,800
$43,920.00
15 acres
$440.50
$60,000 /
acre
$4,770
$4,329.50
$1,000 / acre
Postdevelopment
market land
value
Total postdevelopment
land tax
Total
grant
amount
APPROVED: March 25, 2015 – MOTION 0215-2015-17MDC
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