Building and Land Development Sector: meeting report

Created with: Building Industry and Land Development (BILD) Association
October 2010

Open for Business is Ontario’s initiative to create faster, smarter and streamlined government-to-business services and to establish a modern system of government by 2011. It’s a key part of the Ontario government’s commitment to make the Province more attractive to business while continuing to protect the public interest.

Open for Business has three key areas of focus:

• Modern Government – create a streamlined and focused regulatory environment that delivers results for business, while protecting public interest
• Modern Services – deliver better products and services, including service standards that support business needs
• New Relationship with Business – create an open and responsive working relationship between business and government

Ontario’s business sector strategy

One of the ways Open for Business is implementing a new relationship with business is through the Ontario Business Sector Strategy which establishes an open dialogue and collaborative relationship between government and business stakeholders. This joint understanding of priorities allows government and the business sector to work together more effectively to generate economic growth, create jobs for Ontario families, and protect the public interest.

With the strategy, sector representatives are asked to identify five priorities under jurisdiction of the provincial government that would strengthen their sector’s success. Ministries have two months to address these priorities, or explain why they cannot be addressed and deliver alternative solutions.

Open for Business is responsible for interfacing with ministries to ensure progress and resolution of each sector’s issues within appropriate timelines.

Building and land development sector

The Building and Land Development industry is the first sector to identify its priorities under Ontario’s Business Sector Strategy. The sector is represented by the Building Industry and Land Development Association (BILD), formed through the merger of the Greater Toronto Home Builders’ Association and the Urban Development Institute/Ontario.

With more than 1,300 members, BILD is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area. BILD is affiliated with the Ontario Home Builders’ Association (OHBA) and the Canadian Home Builders’ Association.

Building industry and Land Development Association and Ontario’s business sector strategy

On March 30, 2010, Premier Dalton McGuinty and Minister of Economic Development and Trade, Sandra Pupatello held a roundtable discussion with senior representatives from BILD, OHBA, Open for Business and the ministries identified in BILD’s priorities: Infrastructure, Environment, Municipal Affairs and Housing, Natural Resources, and Transportation.

Since the initial roundtable in March, OFB has worked with the identified ministries and BILD to ensure and support a collaborative environment and a coordinated government response. Through several open and frank discussions, the ministries, BILD, and other key stakeholders worked together to identify solutions in response to BILD’s five priorities.

Executive summary

Priority 1: roles, policies and procedures for conservation authorities

BILD has expressed a concern that the conservation authorities’ plan review and their Conservation Authorities Act permitting role had become increasingly excessive, resulting in unnecessary delays and costs for development applications. Furthermore, there was a concern of inconsistency among conservation authorities as to their roles and responsibilities in planning policy and permitting.

To address these issues, BILD recommended the following steps:

1. Reconvene the Conservation Authority Liaison Committee as a mechanism to address industry and municipal Conservation Authority issues.
2. Finalize the Conservation Authority Liaison Committee Chapter of the Policies and Procedures Manual for Conservation Authorities.
3. Entrench review timelines for new policies in legislation similar to those included in the Planning Act.
4. Move Conservation Authorities Act permit appeals from the delegated Mining and Lands Commissioner to the Ontario Municipal Board. In further discussion, BILD also requested new appeal provisions for fees.

Government response

(Lead: Ministry of Natural Resources; Associated Ministries: Municipal Affairs and Housing, and Infrastructure)

1. The Ministry of Natural Resources has reconvened the Conservation Authority Liaison Committee, functioning in an advisory capacity to the Minister of Natural Resources. A revised Terms of Reference has been created with an expanded membership (i.e. rural representation) and approved by the Conservation Authority Liaison Committee.

   The purpose of the Liaison Committee is to:

   • Facilitate dialogue among the members and the sectors they represent
   • Provide advice to government to clarify interrelated roles
   • Promote efficient delivery of mandates for provincial and municipal interests regarding land use planning
   • Clarify the relationship of the Conservation Authorities Act to other legislation and regulations, and to the Conservation Authority Liaison Committee
   • Identify priorities for further action

   Going forward, the Conservation Authority Liaison Committee will review conservation authorities’ fee structures, municipal service contracts with conservation authorities, appeal mechanisms, etc., including the scope of conservation authorities’ activities with municipal service contracts and timelines for permit decisions, as requested by BILD.

2. The draft Policies and Procedures for Conservation Authority Plan Review and Permitting Activities has been finalized by the Conservation Authority Liaison Committee and the ministry, and subsequently posted on the Environmental Registry. This document clarifies expectations for conservation authorities and BILD in relation to Planning Act applications (where a conservation authority is assuming local land use planning responsibilities) and Conservation Authorities Act permit applications (Section 28 permits).
3. In response to BILD’s request to entrench review timelines for new policies in legislation similar to the Planning Act, the ministry is proceeding with a two-step approach.
   1. At their August 9, 2010 meeting, the Conservation Authority Liaison Committee endorsed proposed amendments to the Conservation Authority Act O. Reg. 97/04 (the ‘generic’ regulation) to enable conservation authorities to issue Section 28 decisions in a timelier manner. By January 1, 2011, the ministry will propose amendments to the generic regulation.

      The Policies and Procedures for Conservation Authority Plan Review and Permitting Activities articulates timelines for reviewing applications. A monitoring system will be developed by the ministry in conjunction with Conservation Ontario for implementation by January 2011. The ministry will monitor conservation authorities’ compliance with timelines for a period of one year commencing January 2011.

   2. Concurrently, the ministry will review ‘complete submission’ requirements through discussion with the Conservation Authority Liaison Committee and Conservation Ontario to assess whether more clarity or improvements are needed.

   Dependent upon the results of monitoring compliance with the timelines in the Policies and Procedures document and in consultation with the Conservation Authority Liaison Committee, the ministry will examine the need for legislative/regulatory amendments to specify requirements for a complete application, decision timelines, and creation of an appeal mechanism to the Mining and Lands Commissioner for non-decisions of permit applications.

4. In regards to appeals on Section 28 permits, particularly non-decision and timelines, the ministry believes the Mining and Lands Commissioner should hear all appeals under the Conservation Authorities Act. However, the ministry will monitor timelines as well as potential issues with non-decisions and may consider providing appropriate appeal provisions for non-decisions.
   
   As per BILD’s request for new appeal provisions for Conservation Authority fees, the Conservation Authority Liaison Committee has endorsed a Terms of Reference for review of existing Conservation Authority fee structures. By December 2010, the ministry will review the level of conservation authorities’ adherence to the existing fee policy. By January 1, 2011, the ministry, in consultation with the Conservation Authority Liaison Committee, will consider amendments to policy guidelines regarding how fees are established.

   The ministry continues to work with Conservation Ontario on communications and training to support the Policies and Procedures document. By December 2010, the ministry will have hosted information and training sessions for conservation authorities and Conservation Authority Liaison Committee member agencies.

Priority 2: role of the provincial development facilitator

BILD recommended that the Province empower and strengthen the role of the Office of the Provincial Development Facilitator in order to:

• Effectively carry out the Office of the Provincial Development Facilitator mandate
• Enforce outcomes of mediation sessions
• Co-ordinate efforts across ministries to ensure that their initiatives support the Government’s strategic directions
• Report directly to the Secretary of Cabinet

BILD also suggested that the Office of the Provincial Development Facilitator’s services be available to all parties and that the Office use an open and transparent in-take protocol when determining if facilitation is warranted.

Government response

(Lead: Ministry of Infrastructure; Associated Ministries: Municipal Affairs and Housing, Environment, Natural Resources, and Transportation)

The Office of the Provincial Development Facilitator was established to help government and business stakeholders resolve issues relating to growth, land use, infrastructure planning and environmental protection. The Facilitator role also includes facilitating mediation in an independent and impartial manner.

The Ministry of Infrastructure has clarified and enhanced the Office of the Provincial Development Facilitator’s role to allow for additional responsibilities reflective of the Government priorities. Specifically:

• The Office of the Provincial Development Facilitator Terms of Reference has been refined and clarified, and the Office will report to the Deputy Minister of Infrastructure.
• The Office of the Provincial Development Facilitator mandate letter has been amended to include key projects for which the Office can provide assistance.
• A new in-take protocol has been drafted clarifying how requests for facilitation and mediation will be evaluated.
• A new Office of the Provincial Development Facilitator web page has been created, providing public transparency and a heightened presence and accessibility of the Office of the Provincial Development Facilitator.
• The number of staff has been increased to enhance the Office of the Provincial Development Facilitator capacity. The ministry will continue to support the Office in building capacity, as required. One benefit of increased capacity will be the Office’s ability to resolve some key planning matters before they require an Ontario Municipal Board hearing, thereby accelerating resolution and reducing legal costs for all parties involved.

To ensure that the Office of the Provincial Development Facilitator can effectively and efficiently resolve issues spanning one or more ministries, the former Deputy Minister of Energy and Infrastructure has written to all deputy ministers, stressing the importance of their support of the Office of the Provincial Development Facilitator through information exchange and when requested, the attendance of ministry staff at meetings.

While the Office has been given enhanced authority and additional resources, no new powers have been provided to the Office that will extend to the enforcement of mediation sessions; the Office of the Provincial Development Facilitator will continue to advise the Minister of Infrastructure and other parties regarding the facilitation process.

Priority 3: Class Environmental Assessment requirements for collector roads in approved secondary plans

BILD was concerned that the consultation and environmental studies required under the Environmental Assessment Act, specifically the Municipal Engineers Association Class Environmental Assessment (EA) for new arterial and collector roads, duplicated similar work required under the Planning Act, resulting in higher costs and delays.

BILD suggested that the Ministry of the Environment amend O. Reg. 345/93 under the Environmental Assessment Act to recognize the environmental studies for new collector and arterial roads that have already been executed as per the Planning Act.

Government response

(Lead: Ministry of the Environment; Associated Ministries/Partners: Municipal Affairs and Housing, Municipal Engineers Association)

Several integration provisions in the Municipal Engineers Association Class EA already exist but are not widely understood or utilized. The ministries of the Environment and Municipal Affairs and Housing have enhanced efforts to communicate these provisions, as well as best municipal planning practices, with key parties and stakeholders. For example, in August 2010, the Minister of Environment wrote to the Association of Municipalities of Ontario and Regional Commissioners of Ontario to provide clarification of existing integration provisions.

The ministries are working with the Municipal Engineers Association to revise its Class EA process to clearly define the concept of ‘recognition’ for work completed under the Planning Act application process that also fulfills Municipal Engineers Association Class EA requirements.

Between January and March 2011, the ministries will work with the Municipal Engineers Association and other interested parties, including BILD, to promote the revised Municipal Engineers Association Class EA requirements through conferences, training workshops and other activities, using newly developed training materials and modules.

The ministry is committed to engage BILD in the development and implementation of the new Modernization of Approval initiative until its completion in September 2012.

Priority 4: Ministry of Transportation’s role in the development application review process

BILD recommended the following in regards to the Ministry of Transportation’s role in the development application review process:

1. Establish greater collaboration with the ministry and faster review times
2. Seek alternatives to the current permitting process to expedite approvals for subdivisions
3. Simplify the development review process to eliminate duplication between the Planning Act and the Public Transportation and Highway Improvement Act
4. Streamline the ministry’s commenting agency role by establishing and enforcing clear timeframes for the review of development applications and associated technical reports
5. Exempt residential development that is part of an approved Draft Plan or Site Plan involving the ministry from the requirements of a Building and Land Use Permit
6. Do not support the possible amendment to the Public Transportation and Highway Improvement Act that would increase the catchments area for Building and Land Use Permits for residential developments to within 800m of a provincial highway

Government response

(Lead: Ministry of Transportation; Associated Ministries: Municipal Affairs and Housing, and Infrastructure)

1. The Ministry of Transportation has committed to hold bi-annual meetings with BILD to foster greater collaboration between the ministry and BILD members; more informal meetings will be held as required.

   Ministry staff will be available for consultation with applicants prior to submission. Additionally, the ministry will identify turnaround times for the issuance of permit application decisions.

   The implementation of the ministry’s Access Management Guidelines will provide developers with clear, precise and timely direction regarding entrances and access roads within the vicinity of a highway corridor. The Access Management Guidelines are currently under review, with implementation anticipated for 2011.

2. In order to expedite approvals in the current permitting process for subdivisions, the ministry will:
   • Issue only one residential building and land use permit per application and/or subdivision
   • Acknowledge building and land use permit applications within 20 days of receipt of application
   • Subsequently issue a decision for residential building and land use permit within 10 business days
   • Meet for consultation, if requested, with applicants prior to submission
   • Extend the building permit expiry date to 12 months, upon request
3. In order to avoid duplication between the development review processes under the Planning Act and the Public Transportation and Highway Improvement Act, the ministry will:
   • Provide one development coordinator for each development application
   • Identify requirements and timelines through pre-consultation meeting and/or the Corridor Management website
4. The ministry has committed to streamline their commenting agency role as follows:
   • Identify turnaround times for the issuance of decisions on permit applications
   • Provide ‘actionable and clear’ comments when responding to technical reports
   • Develop specific timeframes for the review of supporting studies
   • Issue a decision for building and land use permits within 10 business days
5. As the ministry does not have legislative authority under the Planning Act, exempting residential developments from the requirements of a permit under the Public Transportation and Highway Improvement Act would eliminate the ability of the ministry to regulate most of these developments within its permit control area. However, the ministry will identify turnaround time for the issuance of decisions on permit applications.
6. The ministry will not be pursuing a legislative expansion of their current permitting corridor powers.

Priority 5: certificates of approval for water, sewage and storm water systems

BILD expressed concern that development projects may be delayed while waiting for the Ministry of the Environment to issue Certificates of Approval for water, sewage and storm water works.

BILD recommended that the environmental approvals program be improved to allow for automatic approval of water, sewage and storm water systems without the requirement of a Certificate of Approval. This would entail the delegation of authority to municipalities to issue environmental approvals, thereby eliminating the need for ministry review and decision-making.

Government response

(Lead: Ministry of the Environment)

In January 2009, the Ministry of the Environment implemented the Municipal Drinking Water Licensing Program, a significant transformation initiative which has replaced Certificates of Approval for municipal residential drinking water systems with Drinking Water Works Permits, which incorporate pre-authorized approvals for minor changes. Once all Licences and Drinking Water Works Permits have been issued (expected by mid-2011), it is estimated that the permits will have replaced approximately 90% of typical drinking water Certificates of Approval applications.

The ministry has announced a significant Modernization of Approvals initiative which addresses many of BILD’s concerns with storm water and sewage approvals. Framework legislation for this modernization is included in the Open for Business Act, 2010 and the new approvals process planned for a September 2012 implementation will focus on environmental protection and environmental outcomes while improving service to business.

The ministry will consult BILD on matters relating to implementation of the legislative amendments and the development of any new legislations pertaining to storm water and sewage activities. If changes to the approvals process impact the Municipal Engineers Association Class Environmental Assessment (See BILD Priority #3), appropriate revisions may be considered during the next scheduled review of the Municipal Engineers Association Class Environmental Assessment to ensure consistency.

In the interim, the ministry will improve the existing Transfer of Review Program. Specifically, the ministry has committed to deliver the following and is currently in dialogue with BILD regarding strategies for development:

• Expand the number of municipalities in the Transfer of Review Program and widen the scope of applications they review
• Establish a process to notify proponents when municipal recommendations have been forwarded to the ministry for final decision
• Formalize a process to identify time-sensitive BILD applications for priority review
• Identify outreach strategies to promote approvals process improvements

The Transfer of Review Program allows participating municipalities to receive the application fee to conduct the administrative and technical reviews of Certificate of Approval applications for certain types of municipal water and sewage works.

Conclusion

Over a period of two months, BILD and the government worked together to create a faster, smarter and more streamlined government-to-business relationship, helping to achieve shared goals of generating economic growth, creating jobs for Ontario families and protecting the public interest.

This collaboration, the first under Ontario’s Business Sector Strategy, saw the government and BILD come together to share information, engage in joint problem-solving and identify new behaviours that will help to respond to the needs of the building and land development sector in a more timely and effective manner. A solid foundation has been established upon which a new, more productive relationship will flourish and yield lasting changes.

BILD Chair, Leith Moore, is "very appreciative of the work that the ministries have done and that Open for Business has co-ordinated" as part of the Sector Strategy. "It was a collaborative process…misunderstandings were discussed and clarified, and then we were able to move on. We now know that if we bring fact-based issues forward, we have an audience…Over the coming years, this will have a tremendous impact on the industry."

Sandra Pupatello, Minister of Economic Development and Trade, concurs. "It’s not always easy for government to move at the speed of business. However, by focusing on our shared goals of generating economic growth, creating jobs and protecting the public interest, through the Business Sector Strategy we were able to make remarkable progress in a short period of time."

The momentum established with the building and land development sector continues as the government engages other business sectors in roundtable meetings to address their top five priorities. The lessons learned from the Business Sector Strategy can be applied to all ministries and business sectors and, with other Open for Business initiatives, Ontario will continue to implement changes to the way government operates. As a result, Ontario business will save time and money, and will be able to focus on what they do best – create jobs and drive the economy.

For more information, please visit our website at ontario.ca/openforbusiness, call us at 1-888-ONT-4-BIZ (1-888-668-4249) or send an email to openforbusiness@ontario.ca.