Should the purchase of all Huntsville shore road allowances cost the same?
Planning Consultant Lanny Dennis doesn’t think so. He was before Huntsville’s April 11 planning committee arguing that a one-size-fits-all approach to setting the price for the purchase of Original Shore Road Allowances (OSRAs) is inequitable. In particular, Dennis said those with riverfront properties on the Muskoka River that do not lead to larger lakes should be given a break as they do not benefit from owning the shore road allowance the way lakefront property owners generally do.
Dennis told committee that unlike other municipalities in Muskoka, Huntsville is the only one that does not seem to have a tiered rate for the purchase of OSRAs on large lakes versus smaller lakes and rivers.
He was representing Ellen Crockford who owns property on a narrow section of the Muskoka River in Port Sydney. She is being required to purchase the OSRA in front of her property in order to meet the municipality’s lot size requirements and get approval to sever her property and create a new riverfront building lot. The plan is to build a house on the lot, which will be kept in the family, committee heard. According to planning staff the area of shore road allowance eligible to be purchased above the watermark is approximately 0.23 hectares, which at $13.00/m² would cost $29,900 plus HST.
“The intention here is not to circumvent the process or the policy that the municipality has established for closing the shore road allowance as is a requirement through the severance application, but it’s rather to discuss and establish a fair and equitable price,” said Dennis, who acknowledged the research and efforts of his client on the topic.
Dennis provided committee with the findings of an appraiser out of Bracebridge, who compared the overall benefits of purchasing the OSRA on four river properties and four properties on lakes such as Fairy, Vernon and Mary. In the appraiser’s letter, which Dennis shared with committee, the appraiser concluded that the municipality’s rate of $13 per square metre “when balanced against a significantly higher valued property, is a sound decision.” The appraiser also noted in her comparison that the cost to purchase 400 feet of frontage works out to about 13 per cent of the assessed value of properties on rivers and 2.5 per cent of the overall value of properties on lakes.
The appraiser also pointed out that lakefront property owners stand to gain more from the purchase of the OSRA, than riverfront property owners as typically non-motorized vessels are used on rivers, while motorized vessels are used on lakes.
“Common sense would only suggest that someone is not going to purchase the shore road allowance to construct a nice boathouse on riverfront in an area that is more suitable for canoes, kayaks and small tin fishing boats,” states the letter. “Whereas a property on a larger lake such as Vernon, Mary, Fairy or Peninsula would seem a more suitable candidate to purchase the shore road allowance in order to build a boathouse to accommodate larger boats for water sports. The added benefit of a boathouse in the latter situation would add significantly more value and therefore justify the cost of purchasing the shore road allowance.”
Dennis said Crockford had approached 43 property owners on the Muskoka River and about 30 responded. He said they all agreed, among other things, that the cost of purchasing OSRAs along river properties was much too high and agreed that the purchase price could be based on the appraised value of the vacant property so that it would have the same cost impact as it would on a higher valued property on a lake.
Dennis said his client’s property is narrow with steep banks, which makes the OSRA less usable. He also noted that putting a structure on the shore road allowance would also be difficult due to flooding.
Dennis asked committee to take a look at a tired system or setting the price to purchase a property’s OSRA based on a percentage of the appraised value of the property.
Deputy Mayor Karin Terziano said the applicant had done a lot of research and said she was in favour of having staff review how the price of OSRAs is set.
Councillor Nancy Alcock, who chairs the committee, agreed. “The fact that we’re not making any distinction seems like we have some room here to do something,” she said.
“I couldn’t agree with you more. Something that’s a little more equitable for everyone, I think,” responded Councillor Jason FitzGerald.
Committee asked staff to review the municipality’s rate structure—especially as it pertains to riverfront OSRAs along parts of rivers that do not have access to other lake systems. Committee also recommended that if a new rate structure is approved, that the applicant be given a refund.
Funds received by the municipality for the closure of OSRAs are placed in the Parks Reserve Fund, used by the municipality for capital projects. In 2017, the Town of Huntsville sold $96,688 worth of OSRAs.
Don’t miss out on Doppler! Sign up for our free newsletter here.
How can one possibly base the cost of an OSRA on a pro rata of the appraised value of a vacant-land lot; when said purchase will render it a housing lot? Also, promises to keep it in the family are moot as soon as it becomes an estate.
*
I do agree, however, that a tiered-cost system would be more equitable. The analysis should begin with a survey of tiered-cost systems in other municipalities, and an allowance (positive or negative) should be included to reflect the benefit of the purchase. And if a tiered-cost system is introduced, it must be grandfathered to the date of application by Ms. Crockford; ergo, all applicants, whose cost is reduced) will receive a refund.