The Regional Municipality of Halton. Chair and Members of the Planning and Public Works Committee

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1 The Regional Municipality of Halton Report To: From: Chair and Members of the Planning and Public Works Committee Mark G. Meneray, Commissioner, Legislative & Planning Services and Corporate Counsel Date: April 12, 2017 Report No. - Re: LPS Refusal of Regional Official Plan Amendment Application - "An Amendment to Permit Surplus Farm Dwelling Severances in Halton's Rural Area" (File: RQ58A) RECOMMENDATION 1. THAT Regional Council refuse the Regional Official Plan Amendment application An Amendment to Permit Surplus Farm Dwelling Severances in Halton s Rural Area (File: RQ58A) as submitted by the Halton Region Federation of Agriculture. 2. THAT the Regional Clerk forward a copy of Report No. LPS15-17 to the City of Burlington, the Town of Halton Hills, the Town of Milton, the Town of Oakville and the Ministry of Municipal Affairs for their information. REPORT Executive Summary The purpose of this report is to recommend that Regional Council refuse the application submitted by the Halton Region Federation of Agriculture (HRFA) which seeks to amend the Regional Official Plan to permit surplus farm dwelling severances throughout Halton s rural area. To prevent the fragmentation of the agricultural land base and the encroachment of non-farm uses in the rural area (both of which are detrimental to long-term agricultural viability) the Regional Official Plan prohibits lot creation in the rural area, except under very specific circumstances. This restrictive approach to rural lot creation in the Regional Official Plan is longstanding. Surplus farm dwelling severances have been prohibited since 1995 and the ability to create a lot for retirement purposes ceased in The application does not provide sufficient justification for reversing the long-standing policy approach in the Regional Official Plan. 1

2 Background Halton Region Federation of Agriculture ROPA Application On October 29, 2015, Regional staff met with a representative of HRFA and its planning consultant to discuss a proposed Regional Official Plan Amendment (ROPA) and the requirements for a complete application. On July 22, 2016 a ROPA application was submitted which included an Agricultural Impact Assessment and a Planning Justification Report. Regional staff deemed the application complete on August 19, 2016 and assigned file number (RQ58A) to the proposed amendment. RQ58A proposes to amend Section 66 of the Plan to allow for the creation of new lots through a surplus farm dwelling severance throughout the Region s rural area, subject to conditions. Regional staff s review and recommendations regarding the application are provided in the following section. For the purposes of clarification, the Rural Area referenced in the ROPA application, would apply to lands within the Agricultural Area designation, as no Rural Area designation exists in the Regional Official Plan. Discussion Lot Creation Policies in the Regional Official Plan Lot creation policies are found in Section 66 of the in force Regional Official Plan. The policies permit new lot creation for limited purposes including acquisitions by a public body, lot consolidations, limited lot adjustments, and for conservation purposes as part of the Bruce Trail within the Niagara Escarpment Area, provided it is in accordance with policies of the Niagara Escarpment Plan and consistent with Regional and Local Official Plan policies. While Section 66 once allowed for the creation of lots for surplus farm dwellings and retiring farmers, the ability to create lots for these purposes was removed from the Regional Official Plan as of 1995 (surplus farm dwellings) and 2005 (retirement lots). The restrictive approach to lot creation in Halton s rural area is longstanding. It is the result of a progression of policy research and reporting initiatives undertaken through successive reviews of the Regional Official Plan, and is indicative of Halton Region s commitment to maintain a permanently secure and economically viable agricultural industry in the Region. The impact of the restrictive policy approach taken in the Regional Official Plan can be seen in the graph below which presents data extending from 1990 to The influence of changes to the Regional Official Plan the removal of the ability to sever a surplus farm dwelling in 1995 and the sunsetting of the retirement lot policy in

3 are clear. As can be seen in the graph below, no surplus farm dwelling severances or infill lot creations have been undertaken in Halton Region since 1990, and only limited numbers of retirement lot severances occurred between 1990 and Figure 3: New Residential Lot Creation in Agricultural Designations in Halton Region Source: (Caldwell, 2011) Lot Creation in Ontario's Agricultural Landscape: Trends, Impacts, Policy Implications, Dr. W. Caldwell, OMAFRA, 2011 (Note: 2006 other residential lot created as a result of OMB decision) ROPA 38 and Surplus Farm Dwelling Severances While Section 66 was subject to significant changes through the Official Plan Reviews (OPR) in the 1990s and early 2000s, no major changes occurred through the Sustainable Halton process which culminated in Council s adoption of ROPA 38 in As shown in the graph above, severances in the rural area of Halton Region have long been in decline. Concerns regarding rural lot creation were only raised once during the Sustainable Halton process, by Paletta International Corporation and P&L Livestock. The issue was not raised further throughout this consultation period. Specifically, none of the submissions from HRFA identified surplus farm dwelling severances as an issue prior to Council s adoption of ROPA 38. As part of the Ontario Municipal Board (OMB) hearing for ROPA 38, HRFA and Paletta International Corporation and P&L Livestock Limited (Paletta) identified surplus farm dwelling severances as part of their appeal. As reported in Report No. LPS26-16 ROPA 38 OMB Update, Paletta entered into minutes of settlement with the Region and withdrew its appeal of ROPA 38 with respect to surplus farm dwelling severances. HRFA, through its solicitor in a letter dated March 6, 2015 advised Regional Council that the surplus farm dwelling severances issue would be withdrawn from the OMB hearing, and on this basis, HRFA intended to file an application to amend the Regional Official Plan to permit surplus farm dwelling severances. Report No. LPS26-16 included Regional staff s opinion that the surplus farm dwelling severances issue be considered as part of a more comprehensive review of Halton s rural and agricultural systems policies through the Regional Official Plan Review process to understand their cumulative impact on the Region s agricultural economy. The report 3

4 also stated that should HRFA file a ROPA before the issue can be reviewed within the context of the OPR, staff will process the application in accordance with the Planning Act, which allows Council to approve, refuse or defer its decision on the proposed ROPA. Report No. LPS Halton Region Official Plan Review - Phase One: Directions Report, on October 11, 2016, led to the initiation of Phase 2 of the OPR. As well, the Halton Region Rural Agricultural Strategy Report No. LPS93-16 identified key priorities which will inform the Official Plan Review of Agricultural policies. Balanced consideration of the increasingly complex set of land use, economic development and sector supportive policies will need to be undertaken as part of the Official Plan Review to continue to support agriculture, protect agricultural lands and encourage ongoing agricultural viability in Halton Region. Both the Rural Agricultural Strategy and the Regional Official Plan recognize the significance of farm viability. The issue of farm viability will be addressed as part of the implementation of the Rural Agricultural Strategy. Agricultural Impacts of Surplus Farm Dwelling Severances The amendment proposed through RQ58A would introduce a significant change to an established agricultural land protection policy, which will have impacts across the Region. Regional staff undertook a preliminary analysis of the number and distribution of properties which could be eligible to sever a residence. The analysis demonstrated that 118 new non-farm residential lots could be introduced throughout the Region. The impact of introducing this estimated number of non-farm residential lots would contribute to an increased number of complaints regarding the noise, dust and odours produced during normal farm practices. Introduction of non-farm residents has also been shown to create additional traffic impacts on rural roads, including commuter traffic, spatial conflicts between large agricultural machines and cars, and increased demand for urban road standards in rural settings. Both of these impacts have been discussed in research on surplus farm dwelling severances (Caldwell, 2011). A review of assessment data provided to the Region by the Municipal Property Assessment Corporation (MPAC) and a visual analysis of agricultural lands in Halton indicated there are approximately 250 livestock barns distributed throughout the Region. The Minimum Distance Separation formula prescribes separation distances between livestock and sensitive uses. Additional non-farm residences in the agricultural area would limit future opportunities for farm operations to construct or expand livestock facilities, or other supporting structures, given the Minimum Distance Separation formula. Agricultural Impact Assessment & Planning Justification Report The Agricultural Impact Assessment provided as part of the ROPA application, provides a general discussion of the rationale underlying the proposed ROPA. Concurrent with the ROPA 38 process, Council endorsed Agricultural Impact Assessment Guidelines in July 2014 that outline the content that should be included in an Agricultural Impact Assessment to evaluate the impacts of a proposed development on the agricultural 4

5 resource. However, the Agricultural Impact Assessment submitted by HRFA is unusual as the proposed ROPA is general to the entire Region except for settlement areas. As a result, the discussion of the impacts on agriculture in Halton is also generalized. The Agricultural Impact Assessment acknowledges the potential for conflicts when new residential severances are approved but claims that such negative influences are outweighed by the potential for positive agricultural impacts, namely the removal of potential distractions associated with the farmer being a landlord and maintaining a rental dwelling. The assertion of these potential positive agricultural impacts was not supported by economic or empirical evidence or analysis. Overall the analysis found in the Agricultural Impact Assessment was unbalanced, and did not provide sufficient consideration of all aspects of potential impacts on agricultural land protection, or farm viability to be supported. The Planning Justification Report provides an interpretation of the Provincial plans and policies that support the protection of the agricultural land base. As well, discussion of surplus farm dwelling severances in relation to the Regional Official Plan and Local Official Plans outlines the legal requirement for conformity of Local OPs to the Regional Official Plan and that the Regional Official Plan must be consistent with Provincial policies. The report does not highlight as a key element for consideration the requirement in Greenbelt Plan (2005) policy (c) that for a residence considered for severance to have been an existing use as of the date the Greenbelt Plan came into force. The Planning Justification Report does not mention the Provincial Policy Statement (PPS) discourages lot creation in Prime Agricultural Areas, nor that the policies of the PPS represent the minimum standard, which may be exceeded by municipal policies at their discretion. Additionally, the Planning Justification Report does not provide analysis of the potential impact of severances on farm viability, nor does it provide justification for Halton Region to alter long standing lot creation policies. Peer Review Analysis: The Region hired Dr. Wayne Caldwell to undertake a peer review of the Planning Justification Report and Agricultural Impact Assessment submitted as part of the ROPA application. The peer review provided a balanced analysis of the surplus farm dwelling severances ROPA application within the context of the Provincial Plans, the history of lot creation policy in the Regional Official Plan, and through examination of the justification provided in the supporting reports. The peer review found that both the Planning Justification Report and the Agricultural Impact Assessment establish a bias in favour of surplus farm dwelling severances. The peer review concludes that the application and supporting materials: does not give adequate attention to concerns related to this type of severance; does not address implications that these severances contribute to a gradual potential fragmentation of agricultural areas and can create land use conflicts as new non-farm residences are introduced to agricultural areas; does not conform with aspects of the Greenbelt Plan (i.e. date of construction); does not provide sufficient rationale to justify a reversal of the Region s longstanding policy on the severance of surplus farm dwellings. 5

6 Regional Analysis: Both reports filed with the application identify the significance of supporting agricultural viability and protection of the agricultural land base as the central reason for proposing the amendment in favor of surplus farm dwelling severances. These priorities, while supported by Provincial policies and plans, the Regional Official Plan, and the Rural Agricultural Strategy do not require surplus farm dwelling severances to achieve this. Further, neither of these reports provides sufficient evidence to justify alteration of Regional Official Plan policy which has been in place since 1995, has been contributing to maintaining the agricultural land base, and not previously contested by the farming community. The reports do not provide sufficient evidence to conclude that allowing surplus farm dwelling severances will necessarily facilitate farm consolidation, that farm consolidation is not practical without allowing for surplus farm dwelling severances, or that the negative impacts associated with introducing residential severances next to or in close proximity to agricultural operations will be offset by the potential benefits from allowing such severances. Finally, the reports also fail to provide an analysis of how many lots may be affected if surplus farm dwelling severances were permitted after 20 years and the cumulative impact of such severances on the Region s agricultural resource. Provincial Policies Lot creation in agricultural areas is generally discouraged in Provincial Policies, a restrictive approach that was introduced in the Provincial Policy Statement (PPS) At that time, severances of intra-family lots were restricted and limitations were placed on severances of retirement lots, to only those for farmers who were actively farming prior to January The PPS was updated in 2005, and the Greenbelt Plan was introduced in 2005, both of which maintained the Provincial restriction on severances and introduced specific goals and policies to further protect the agricultural land base. Provincial Policy Statement, 2005 and 2014 The Provincial Policy Statement (PPS), 2005 maintained the restrictive approach to lot creation in agricultural areas through the removal of the ability to sever retirement lots and to limit consideration of severance of surplus farm dwelling severances only in limited circumstances. This approach has been maintained through PPS 2014 policy This most recent PPS policy discourages lot creation in prime agricultural areas, maintaining direction to only consider SFDS under limited circumstances. The circumstances listed in PPS 2014 Policy c does permit a severance for a residence surplus to a farming operation as a result of farm consolidation, with conditions 6

7 to restrict the size of the proposed residential lot and prohibit the ability to develop a new residence on the remnant parcel. Halton Regional Official Plan policies addressing lot creation in agricultural areas have been consistent with PPS direction since this policy direction was introduced in 1997, and have matched the sunsetting of retirement lot severances in 2005 Regional Official Plan. Additionally, PPS 2014, in policy 4.9, permits municipalities to be more restrictive than Provincial policies for lot creation. Halton Region has chosen to take a more restrictive approach to lot creation in agricultural areas since Greenbelt Plan, 2005 The introduction of the Greenbelt Plan in 2005, included the introduction of Policy which enables consideration of lot creation in specialty crop and prime agricultural areas under limited circumstances. This policy supports the PPS 2005 policies discouraging lot creation. The circumstances under which surplus farm dwelling severances may be considered include: farm consolidation; existence and use of the residence to be severed as of December 16, 2004; lot to be severed to be limited to the minimum size needed to accommodate a dwelling, sewage and water services; and perpetual restriction on residential dwelling development on the remnant lot as imposed by planning authority. Additionally, the Greenbelt Plan requires municipalities to apply the Minimum Distance Separation formula when considering new land uses, the creation of lots and new or expanding livestock facilities. Section 5.3 of the Greenbelt Plan states that decision makers (Halton Region) may be more restrictive than the requirements of the Greenbelt Plan, unless doing so would conflict with any policies or objectives of the Plan. The Regional Official Plan supports and protects agricultural areas through numerous policies, including restrictive approaches to lot creation. This approach is in conformity with the Greenbelt Plan, 2005 and consistent with PPS, Niagara Escarpment Plan, 2005 The Niagara Escarpment Plan, in keeping with the PPS and the Greenbelt Plan, generally discourages the creation of new lots in agricultural areas, limiting consideration of severances for surplus farm swelling severances with specific criteria (Part 2.4, Policy 23). The Niagara Escarpment Plan and the Greenbelt Plan both require: minimum lot sizes to accommodate only the area needed for the residence; water and sewage services; restriction of residential development on the remnant lot in perpetuity as established by the planning authority; new residential lot not limit agricultural viability of the remnant property; and that the surplus residence is an existing use. The Niagara Escarpment Plan requires consideration of four additional criteria: that the residence to be severed be habitable; that the residence was not originally approved as a temporary or accessory dwelling use; that the residence has been built and occupied for no less than 10 years; and that the severance application must occur within two years of the date of land acquisition as part of a farm consolidation. 7

8 Policies in the Regional Official Plan are not inconsistent and do not conflict with the policies of the Niagara Escarpment Plan, as they have not permitted the creation of new lots in agricultural areas since Province s Coordinated Land Use Planning Review, 2016 The proposed Provincial Plans maintain the restrictive approach to lot creation in agricultural areas, and the limited circumstances for consideration of surplus farm dwelling severances introduced in the earlier versions of the plans. In addition to maintaining these policies, equivalent policies have been introduced into the Proposed Growth Plan (2016). The proposed Growth Plan includes new policy direction in Section directing maintenance and enhancement of the geographic continuity of the agricultural land base and the functional and economic connections to an agricultural support network. Section of the Growth Plan directs municipalities to implement strategies and other approaches to sustain and enhance the agricultural system, long term agricultural economic prosperity and viability. As well, both the Proposed Greenbelt and Growth Plans include policy direction to expand opportunities for municipalities to support and encourage viable agriculture through agricultural systems, agricultural support networks and changes to permitted uses on Prime Agricultural Lands. Conclusion The surplus farm dwelling severances ROPA application is requesting an amendment to a Region-wide lot creation policy which has been consistently in place in the Halton Region Official Plans since The proposed change to this long standing policy would introduce a significant change to an established agricultural land protection policy, which impact land use across the Region. Additionally, Regional staff have concluded to not support the application, and this decision is consistent with Provincial policy framework. The proposed Official Plan policy amendment is significant, and the application does not provide sufficient analysis or evidence to justify the amendment of Section 66 of the Halton Regional Official Plan which has been in place for twenty years. Regional staff are of the opinion that prohibiting surplus farm dwelling severances represents good planning and recommend that RQ58A, as proposed in the application submitted by HRFA, be refused. 8

9 FINANCIAL/PROGRAM IMPLICATIONS There is no financial implication arising from this report. Respectfully submitted, Curt Benson Acting Director, Planning Services Mark G. Meneray Commissioner, Legislative & Planning Services and Corporate Counsel Approved by Jane MacCaskill Chief Administrative Officer If you have any questions on the content of this report, please contact: Attachments None Curt Benson Tel. # 7181 Dan Tovey Tel. # 7208 Brooke Marshall Tel. #