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Municipalities can manage their growth and development through careful land-use planning while addressing social, economic, and environmental concerns. The responsibility for long-term planning in Ontario is shared between the province and municipalities.

In truth, these governments don’t always work together to direct land-use planning. Learn about the land use planning process and how it’s affecting Simcoe County’s development.

Situation

The land-use planning process balances the interests of individual property owners with the wider needs and objectives of the community. 

Decisions about land use affect almost every aspect of life in Ontario; this means land use planning directly impacts the quality of a community. Here’s how it works:

1. The province sets out the legislative framework and policies through the Planning Act and a Provincial Policy Statement (PPS). 
2. Municipalities and planning boards implement the province’s land use planning policy framework.  Although municipalities have some flexibility when planning their community objectives, they must ensure their land use plans and decisions are “consistent with” the PPS. 
3. When conflict arises, approval authorities and the Ontario Land Tribunal (OLT- formally LPAT) provide dispute resolution mechanisms for the protection of provincial interests as well as the interests of individual landowners.

It’s important to remember that land-use planning is fundamentally a public process and considers the input of developers, residents, indigenous communities, and individuals.

Significance

While the land use planning system makes sense in theory, the reality is different. In our experience, especially in  Simcoe County where development is substantial, the province fails to appreciate the culture of life outside of the GTA. The result is years of “planning by numbers” for a lifestyle nobody wants. 

Affordable housing has become the victim of poor policy mandates and bureaucratic red tape that delays new development. Even flawed policies take time to take effect—and time works in favour of scarcity and against choice and affordability. 

Scarcity drives inflation, further accelerating the existing inventory price (or pushing it into overdrive, as we’ve seen in recent years). As a result, homeownership has become beyond the reach of many middle-class Canadians. 

Results

After four years of extensive public engagement and consultation, the City of Barrie’s new Official Plan was adopted by City Council on February 14, 2022. 

We’re pleased to see the City of Barrie is showing a commitment to key themes like connectivity, environmental sustainability and housing diversification. 

The problem we see with the plans for Simcoe County development is that only a portion of them will result in shovels in the ground. The other plans are ‘value add’ players that de-risk property, define density and add a premium for time and work completed before reselling the land to an actual developer. 

Don’t get us wrong, there is room in the market for some of these ‘value add’ players, but while we play musical chairs with our land inventory, choice goes down. The inventory does not increase, but prices do. 

Unless efforts are made to improve and accelerate development opportunities in Simcoe County, which starts with the land use planning process, “affordable housing” will remain just another political buzzword and true housing affordability will remain beyond reach for our children and generations to come.

Who We Are

Squarefoot Commercial Group specializes in commercial and industrial real estate. We focus on sales and leasing, repurposing and repositioning commercial real estate assets in Barrie, Simcoe County and its surrounding communities. View current sale and leasing opportunities at Squarefoot.

With over 60 years of commercial real estate experience, our team has a granular understanding of local markets; while our focus is local, our designations, memberships and associations are global. Meet Our Team. 

Squarefoot is actively involved in selecting the best intensification sites in the Simcoe County area, and we work collaboratively with local governments, other realtors and advisors to uncover development potential in Simcoe County as well as some of the fastest-growing communities in Ontario. Ready to experience the Squarefoot advantage? Contact us today!

Land development generally goes through a customary purchase process that consists of:

1. A conditional period during which deposit money is risked and is therefore forfeitable
2. Closing

The negotiation of condition(s) is as important as price. Buyers want as much time as they can to close with as little money at risk as possible, but sellers want the opposite. The agreed-upon terms depend on the state of the market, advice given and received by the sellers and their trusted advisors.

In slow markets, favourable terms of purchase and sale are more likely. With fewer buyers, sellers are typically more willing to give a potential purchaser more time to investigate the property without requiring larger deposits. In a hot market, sellers are less afraid of losing  a deal and are more concerned about tying up their property when another buyer, and possibly a better offer, could be just around the corner.  As conditions in the marketplace shift toward seller-dictated terms (requiring cash offers without financing contingencies, short due diligence periods and high prices), the market would indicate that it is nearing its apex, so the beginning developer who is having trouble competing with other buyers may just be better off waiting.

If the site consists of multiple land parcels under separate ownership (often referred to as land assemblies), progress is further complicated by the fact that all the necessary parcels must first be acquired with similar terms and conditions and closing dates. Neighbours often talk with each other and are aware of what prices have been offered to others in the assembly. These factors and others make land assembly acquisition a particularly complex business that requires sophisticated negotiation and acquisition techniques to ensure that the owner of the last or other key parcels does not insist on an exorbitant price. Knowledgeable brokers who have completed land assemblies know how to manage the expectations of sellers, as well as get the most reasonable terms for a buyer, with closings that are successful for the sellers.

The terms of acquisition set the stage for all that is to follow. An overpriced or complicated ownership structure of the lands can doom an otherwise well-conceived project. When buying land, developers are looking to confirm that:

• they can build what they want;
• they have time to study all site conditions affecting feasibility; 
• market data for sales of a similar product supports their business case;  
• they can obtain financing; and 
• they will be able to assess project economics in a business plan before the required closing date.

Sites with special problems — such as easements, conservation issues, compensation costs, natural heritage designations or contamination —should be approached with caution, as the land may prove to be more difficult and cost-prohibitive to develop.

Inexperienced developers may be thinly capitalized, meaning the level of their debt is much greater than their equity capital, leaving little room for unanticipated costs or delays. Before deciding to tackle problem sites, new developers must determine whether the problems associated with the site can be solved within a reasonable time frame and within budget. If they cannot answer that question affirmatively with a high level of confidence, they should probably look for another site.

Even before submitting an Agreement of Purchase and Sale (APS) contract, buyers may discuss or submit a non-binding Letter of Intent (LOI) or term sheet to sellers that sets out the business terms for purchase of the property. 

The Letter of Intent specifies:

3. the property to be purchased; 
4. its price; 
5. payment terms; 
6. Timing; 
7. release provisions (for transfer of lien-free sub land parcels, in the case of seller financing, to the buyer); and,
8. other major business points.

Letters of Intent are especially helpful when the buyer or seller plans to use a long, specially-written legal purchase and sale agreement rather than a standardized OREA Brokers form. The LOI saves time and unnecessary legal expense in the beginning because it clarifies the primary aspects of the transaction. If the buyer and seller cannot come to agreement on the primary business terms, there is no point in exchanging full legal documents. The LOI is non-binding, but it does call for signatures by both parties to signify agreement on the major transaction points. 

The offer to purchase must clearly indicate all contingencies or penalties other than specific performance (compelling the parties to consummate the agreed-upon deal) for failure to close. The Agreement of Purchase and Sale (APS) typically includes:

9. physical inspections; 
10. environmental assessments; 
11. regulatory approvals; 
12. title checks; and/or
13. financing approval.  

Buyers cannot assume that they can negotiate more contingencies/conditions or other issues in the APS than what was agreed upon  in the original LOI. The APS cannot be more restrictive than the LOI to purchase unless both parties agree to the changes. 

Three items make the offer to purchase binding: 

14. specific consideration (deposits) – enough to entice the seller to take the property off the market for a given period; 
15. proper identification of the property; and 
16. a time to close or to enter into the purchase and sale agreement.

It’s important to remember that purchase and sale agreements are a subject with vast implications. There is no one-size-fits-all APS. 

Agreements of Purchase and Sale will be further discussed in  subsequent blog articles.