Land use contracts

What is a Land Use Contract?

A Land Use Contract is an agreement between a local government and a land owner that provided the land owner with development rights over and above what was allowed under current zoning. LUCs were used in the 1970s but their use ended November 15, 1978. LUCs supersede any subsequent bylaw dealing with land use and development including: Zoning Bylaws, Development Cost Charge Bylaws, Subdivision, Development and Servicing Bylaw No. 7900, and Development Permits. Before 2014 the only way an LUC could be eliminated was through a discharge process by the land owner.

The Province has mandated that LUCs must be terminated by 2024. We are in the process of terminating LUCs and putting in place appropriate zoning regulations to replace them. The tables below show the status of LUCs in Kelowna.

Land Use Contract Bulletin

CATEGORY

# OF LAND USE CONTRACT

# OF PROPERTIES AFFECTED

Commercial / Industrial

23

83

Multi-family / Two-family

21

43

Single Family

19

305

Public / Institutional

3

3

Mixed Use

1

1

Total

67

435

 

LUCs DISCHARGE / TERMINATED (2014 onward)

 

Application #

LUC #

# of Properties

Addresses / Area

Discharged (D) / Terminated (T)

2014

 

 

 

 

LUC14-0001 / Z14-0043 / S15-0009

LUC76-1043

1 out of 28

1020 Sutcliffe Ct

D

2015

    

LUC15-0001 / S14-0075

LUC76-1114

1 out of 16

1890 Baron Rd (1655 Leckie Rd)

D

LUC15-0002

LUC77-1002

1 out of 169

371 Stellar Dr

D

2016

    

LUC16-0001 / Z16-0009 / DP16-0046 / DVP16-0047

LUC77-1012

1

5080,5082 Lakeshore Rd

D

LUCT16-0001

LUC77-1012

1 out of 2

5076 Lakeshore Rd

T

LUC16-0002

LUC76-1088 / LUC78-1024

1

1945 Bennett Rd

D

LUCT16-0002

LUC76-1088 / LUC78-1024

68

Bennett Rd Area

T

LUC16-0003

LUC78-1024

1

1960 Paly Rd

D

2017

    

LUC17-0001

LUC76-1087

1

482 Clifton Rd N

D

LUCT17-0002

LUC76-1087

23

Clifton Rd N Area

T

LUC17-0002 / Z17-0049

LUC77-1002

1

521 Curlew Dr

D

LUCT17-0001 / Z17-0062

LUC77-1002

167

Curlew Dr Area

T

LUC17-0003 / DP17-0223 / DVP17-0224 / S18-0030

LUC77-1015

1

120 Old Vernon Rd

D

LUCT17-0003 / Z18-0005

LUC77-1015 / LUC77-1082

2

Old Vernon Rd Area

T

 

LUCs PROPOSED TO BE DISCHARGED / TERMINATED

 

Application #

LUC #

# of Properties

Addresses / Area

Discharge (D) / Terminate (T)

LUC18-0002 / Z18-0030

LUC77-1001

1

5321 Grouse Ave

D

LUCT18-0001 / Z18-0054

LUC77-1001

123

Grouse Ave Area

T

LUC18-0003 / Z18-0051

LUC76-1041

1

649 Drummond Crt

D

LUCT18-0002 / Z18-0089

LUC76-1041

21

Drummond Crt / Barnaby Rd

T

LUCT18-0003

LUC76-1032

1

1519 Pioneer Rd

T

LUCT18-0004

LUC76-1033

1

3308 Slater Rd

T

LUCT18-0005

LUC76-1063

2

831,841 Tronson Crt

T

LUCT18-0006

LUC76-1104

4

7770,7782,7800,7810 Hwy 97 N

T

LUCT18-0007

LUC76-1112

2

2810,2840 Boyd Rd

T

LUCT18-0008

LUC77-1046

1

1485 Pioneer Rd

T

LUCT18-0009

LUC77-1052

2

373,379 Yates Rd

T

LUCT18-0010

LUC77-1072

1

155 Snowsell St

T

LUCT18-0011

LUC76-1080

30

Hall Rd Area

T

LUCT18-0012

LUC78-1034

57

Summerside Dr Area

T

LUCT18-0013 / Z18-0092

LUC77-1012

1

5064 Lakeshore Rd

T

LUC18-0004 / Z18-0071 / DP18-0132 / DVP18-0133 / OCP18-0015

LUC76-1039

1

1940 Underhill St

D

LUC18-0005 / DP18-0096

LUC76-1054

1

1717 Harvey Ave

D

LUCs 1970 - 2014

Land Use Contracts were a tool regularly used in the 1970s before they were eliminated on November 15, 1978. The purpose of the tool was to allow local governments to arrive at agreements with specific developers to grant development rights over and above what was allowed under current zoning. This was typically done in exchange for commitments by developers to help finance the infrastructure costs of development.

Land Use Contracts supersede any subsequent bylaw dealing with land use and development including: Zoning Bylaws, Development Cost Charge Bylaws, Subdivision, Development and Servicing Bylaw No. 7900, and Development Permits. From 1978 to 2014, municipalities or the owners of the land could not unilaterally discharge, cancel, or modify the land use contract without the other party’s consent. This has limited the number of LUCs the City has been able to discharge.

2014 Local Government Act Amendments

The Local Government Act was amended in 2014 to address the LUC issue. Municipalities were provided a second method of rescinding LUCs through termination. LUC terminations provide the ability for municipalities to rescind LUCs unilaterally, without owner(s) consent, as stated in Section 548 of the Local Government Act. Discharging and terminating both have the same process except that Land Use Contract terminations (unlike LUC discharges) do not apply when Council adopts the bylaw. Terminations require a one-year grace period as outlined by the Local Government Act. Further, the municipality must send additional letters after the one-year grace period is complete informing the property owners of which land use regulations apply to their properties.

With LUC terminations the owner will be allowed to appeal the termination in order to extend the length of time the LUC is in force (greater than a year). The owner would approach the Board of Variance and explain that there is a hardship by terminating the LUC in a year after the termination was adopted by Council. The Board of Variance will decide whether or not to grant the extension. If the extension is granted the LUC will be terminated after the extended period with no opportunity to extend again. The application to the Board of Variance must be received within 6 months after the LUC Termination Bylaw has been adopted by City Council.

According to the Local Government Act, as of June 30, 2024 all land use contracts will be terminated. Therefore, land use contracts will remain in force until that date unless terminated early by the municipality. However, by June 20, 2022, local governments must have appropriate zoning regulations to replace land use contracts upon their termination (termination enactment cannot occur after June 30th 2022) as not all properties have the appropriate underlying zoning.

LUCs and Zoning

If a property sits within the boundaries of an LUC, all land use regulations are defined in the LUC. However, all properties in Kelowna have been assigned a zone from the Zoning Bylaw No. 8000, including those properties that are governed by LUCs. The term “underlying zone” is used to refer to the zone assigned to a property that is regulated by an LUC. Although all properties regulated by LUCs have underlying zoning, the underlying zone has no effect on the land uses, density or building siting until the LUC is terminated or discharged. Once the LUC has been discharged or terminated the underlying zoning for the property automatically comes into effect.

Notification of LUC Termination

According to Council Notification Policy #367 and to the Development Application Procedures Bylaw #10540, when a LUC termination, that does not require a rezoning is processed, notices, such as mail outs, will only be sent to affected properties. However, when a rezoning is required, properties within 50m of the LUC termination and rezoning will receive notices. If the termination impacts 10 or more properties this is not required. In addition, all LUC terminations will require notification signage as per Section 9.14 Notice of Termination in the Local Government Act:

Local governments must provide notice to each owner that the termination of land use contract is occurring and must provide notice of what the new zoning regulations apply to the land. The notice must state the bylaw becomes “in force” one year following the date of the bylaw adoption and inform the owner of their right to apply to the Board of Variance for an extension of the “in force” date.

Strategy for Eliminating Land Use Contracts

The City will be terminating as many land use contracts as possible before 2022 because performing all the public hearings related to zoning changes and notifications at once would be overwhelming. There are currently 74 Land Use Contracts still active that effect 702 properties (See Table No. 2). Therefore, Staff will be bringing a bundles of Land Use Contracts to Council every year starting in 2017. By 2022, Staff should have completed termination of all remaining Land Use Contracts.

Council approved the Strategy for Eliminating Land Use Contracts on September 12, 2016. To view the full report click here.