DC Credit For Vaughan Auto Dealership

NRU
April 11, 2018

In a March 23 decision, OMB member Stefan Krzeczunowicz allowed an appeal by Playacor Holdings (Pfaff Porsche) against York Region’s dismissal of its complaint regarding its development charges payment for 105-131 Four Valley Drive in the City of Vaughan.

Playacor’s property is divided into two blocks, not yet severed, both with a planning
approval for a car dealership. The south block has been developed with a Porsche
dealership, and the north block remains vacant except for 107 surface parking spaces.

The dispute centred on the question of whether 31 basement parking spaces in the Porsche dealership should be included in the GFA calculation, on which the DC payment is determined. Under the applicable DC by-law, GFA calculations typically exclude areas within a building used, designed or intended for parking.

The region had reasoned that the 31 underground parking spaces are not intended for conventional parking, but are to be used for vehicle storage ancillary to the dealership’s retail function. Thus, the $477,743.56 in DCs attributable to the 1,135 m2 area containing the parking is properly calculated and collected.

Playacor, on the other hand, argued that the 31 spaces are intended for use as conventional parking for visitors and employees, and should be excluded from the
building GFA for the purpose of determining the applicable DCs.

Ultimately, the board found in favour of Playacor and concluded that the region had
incorrectly calculated the DCs by erroneously factoring in the GFA for the underground
parking. The board allowed the appeal, and ordered that a credit of $477,743.56 be
applied against the regional DC payable on future development of the north block of the site.

Solicitors involved in this decision were Leo Longo (Aird & Berlis) representing Playacor Holdings Ltd. (Pfaff Porsche) and regional solicitor Bola Ogunmefun representing York Region. [See OMB Case No. DC170003.]