Policy - York Region Development Incentives Collaboration - 20251125
100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
aurora.ca
Town of Aurora
Policy
Finance
Contact: Financial Management
Approval Authority: Aurora Town Council
Effective: November 25, 2025
______________________________________________________________________________________
York Region Development Incentives Collaboration Policy
Purpose
To enable the Town to provide a financially feasible incentive offer equivalent to the
applicable York Region development policy offering in a timely fashion, while ensuring
compliance with provincial legislation such as the Development Charges Act, 1997, as
required.
Scope
This policy applies to all aspects of the Town’s collaboration with York Region in the
offering of development incentives in support of targeted development.
Definitions
Act
The Development Charges Act, 1997, S.O. 1997, c.27, as amended, revised, re-enacted
or consolidated from time to time, and any successor statute.
Development
The construction, erection, or placing of one or more buildings or structures on land or
the making of an addition or alteration to a building or structure that has the effect of
increasing the size or changing the use thereof from non-residential to residential or
from residential to non-residential and includes redevelopment.
Development Charges (D.C.s)
The Town’s development charges collected under the authority of the Act and/or the
Town’s related Development Charges By-law, or area-specific development charges
bylaw.
Local Municipality
Any lower tier municipality located within York Region.
Local Participation
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The offer by an applicable local municipality of a similar, if not better incentive for a
proposed development to that offered under a York Region development incentive
policy.
Planning Act
The Planning Act, R.S.O. 1990, c. P.13, as amended, revised, re-enacted or consolidated
from time to time, and any successor statute.
Targeted Development
All residential developments including purpose-built rental and owned apartments, and
all ground-related units (singles, semis, towns), as well as office and retail building
developments and sustainable building design.
Trigger Event
As defined under each individual development incentive agreement, but which may
include:
a) A change in use of the proposed development.
b) The sale or transfer of ownership of the Lands.
c) Failure to notify the Town within five business days of a development first being
occupied.
d) Failure to make any payment required under an incentive agreement by a
specified due date.
Policy
This policy outlines the guiding principles for the Town’s collaboration with York Region
in the offering of development incentives in support of targeted development.
The Town must offer an equivalent development incentive, to that of York Region’s
applicable policy, in as timely a manner as possible
To minimize delays to a targeted development, the Town should derive an equivalent
incentive offering, confirm its eligibility under the applicable York Region policy, and
provide the incentive to a participating developer in a timely manner as possible.
The Town will only offer development incentives that are financially feasible to itself
In the development of each incentive offering, the Town will firstly consider all
applicable legislation and policies. Each considered incentive’s financial feasibility will
be assessed based upon factors which may include the projected impact on municipal
reserves, a cost-benefit analysis of the induced development, alignment with long-term
capital plans, and the potential revenues derived from the increased assessment base.
The Town’s development charge deferral incentive offerings will also be guided by the
following principles:
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• The offered development charge deferral period will align with the appropriate
York Region policy offering, but will not exceed a maximum of 20 years; and
• The deferred development charge payable will be interest free; and
• The deferred development charge payable will be repayable in annual
instalments over the duration of the deferral period.
Every development incentive offer will include the following terms
Any developer wishing to accept a development incentive offering from the Town must
enter into an agreement with the Town and provide a form of security acceptable to the
Town.
In most instances, the Town’s development incentive will take the form of a
development charge deferral. The following terms will be applicable to all development
charge deferral incentives:
i. Development Incentives Agreement
o The developer must enter into a development charges deferral agreement
with the Town
ii. Duration of Deferral
o The duration of a deferral and any terms for repayment will be defined on
a case-by-case basis as part of each specific incentive offering for eligible
developments.
iii. Development Charge Rates
o The development charges rate will be the amount determined under the
applicable Town Development Charges By-law, or area-specific
development charges bylaw, in accordance with the provincial legislation
on:
a. Day of building permit issuance for:
i. Applications submitted for approval of a development in a
site plan control area under subsection 41 (4) of the
Planning Act for an applicable development prior to January
1, 2020, or
ii. Applications submitted for an amendment to a bylaw passed
under section 34 of the Planning Act prior to January 1, 2020
- OR –
b. Day application is deemed complete for:
i. Applications submitted for approval of a development in a
site plan control area under subsection 41 (4) of the
Planning Act for an applicable development including and
after January 1, 2020, or
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ii. Applications submitted for an amendment to a bylaw passed
under section 34 of the Planning Act including and after
January 1, 2020
o For greater clarity, if clause b(i) or b(ii) does not apply to the
development seeking to defer development charges including and after
January 1, 2020, the development charges rate is determined on the
day the development charges are payable in accordance with section
26 of the Act.
iv. Development Charges Payable
o The amount of the development charges payable to the Town, as
required under the Act, will be based on the rates determined under
Term ‘iii – Development Charge Rates’ of this policy, multiplied by the
number of dwelling units or gross floor area (depending upon nature of
development), which will be determined on the day the developer
enters into a development charges deferral agreement with the Town.
v. Interest
o The interest terms will be defined as part of each specific incentive
offering for eligible developments.
vi. Unpaid Development Charges
o If any triggered development charges (including any interest) remain
unpaid 15 business days immediately following notification of a trigger
event, those development charges (including interest) will be added to
the tax roll and collected in the same manner as taxes (in accordance
with section 32 of the Act).
o In the event unpaid development charges are added to the tax roll,
interest will continue to accrue and be compounded until all
outstanding total charges are fully paid (development charges plus
interest).
vii. Security
o The Town will require a security in any instance where a deferred
development charge is offered as an incentive.
o The Town may accept the following as security:
A form of security will be taken and registered against the title
to the land upon the execution of the development charges
deferral agreement with the Town.
A Pay-On-Demand Surety Bond, subject to the Town’s
Development Agreement Surety Bond Policy, as amended,
revised, re-enacted or consolidated from time to time; or
A Letter of Credit, subject to the Town’s Letter of Credit Policy,
as amended, revised, re-enacted or consolidated from time to
time.
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Other Agreements Required
The developer of an eligible development may be required to enter into other
supplementary agreements as deemed necessary by the Town.
Legal and Administrative Fees
The developer will pay all legal fees and expenses of both the developer and the Town,
including any costs incurred by the Town to prepare and register any agreements as
required by Legal Services, and any other associated administration fees.
Budget Monitoring and Reporting
Staff will report back to Council annually on all development incentive agreements
executed by the Town under this policy.
Responsibilities
Director, Finance / Treasurer
• Administer this policy, including assisting stakeholders in determining if they
qualify under this policy, the development charge rates to be applied, and the
development charges and interest payable
• Enforcement of this policy and its associated development incentive agreements
• Collect all development charges when due
• Undertake any additional administrative obligations as determined through
incentive agreements
Legal Services
• Draft and prepare for execution development incentive agreements required
under this policy
• Draft and prepare for execution any supplemental agreements required under
this policy
• Registration of security on title
• Registration of any agreed upon covenants as part of an incentive agreement
• Maintain copies of all executed development incentive and any supplemental
agreements, as required
Director, Planning and Development Services
• Support the application and enforcement of this policy, as appropriate
Monitoring and Maintenance
The Director, Finance / Treasurer, shall ensure compliance with the Act, the
Development Charges By-law, this policy and all other legislative requirements.
Immediately upon the occurrence of an executed incentive agreement’s trigger event,
the Director Finance / Treasurer will notify the owner of the property that development
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charges are due within 15 business days, the timing of which will begin with the mailing,
by registered mail, of notice.
The Director, Finance / Treasurer will process any necessary draws upon a letter of
credit or pay-on-demand surety bond.
References
• Development Charges Act, 1997, S.O. 1997, c. 27
• Planning Act, R.S.O. 1990, c. P.13
• By-law – Development Charges
• Policy – Development Agreement Surety Bond
• Policy – Letter of Credit
• Town of Aurora Development Charges Study and Bylaw
• York Region Development Incentives Web Site