Development Fee Agreement Template for Canada

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Key Requirements PROMPT example:

Development Fee Agreement

"I need a Development Fee Agreement for a mixed-use development project in Ontario, Canada, between ABC Developments Inc. and the City of Toronto, with construction planned to start in March 2025 and including provisions for phased payment of development charges over a 3-year period."

Document background
The Development Fee Agreement is a crucial document in Canadian real estate development that formalizes the financial obligations between developers and municipalities regarding development charges. This agreement is typically required when undertaking new development projects that will impact municipal infrastructure and services. It ensures that municipalities can recover the capital costs associated with growth-related infrastructure while providing developers with certainty regarding their financial obligations. The agreement complies with provincial legislation and municipal bylaws, incorporating specific calculations for development charges based on factors such as development type, size, and location. Development Fee Agreements are particularly important in rapidly growing municipalities where new developments significantly impact local infrastructure and service requirements.
Suggested Sections

1. Parties: Identification of the developer and the authority/municipality collecting the fees

2. Background: Context of the development project and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Development Description: Detailed description of the development project and scope

5. Fee Structure: Breakdown of development fees, calculation methodology, and payment schedule

6. Payment Terms: Terms and conditions for fee payments, including timing and methods

7. Security Requirements: Details of any required security deposits or guarantees

8. Developer Obligations: Specific responsibilities and commitments of the developer

9. Authority Obligations: Responsibilities and commitments of the authority/municipality

10. Default and Remedies: Consequences of default and available remedies

11. Term and Termination: Duration of agreement and termination provisions

12. Dispute Resolution: Process for resolving disputes between parties

13. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Phasing Provisions: Used when development and fee payments are to be implemented in phases

2. Credits and Offsets: Included when developer may receive credits against fees for providing infrastructure

3. Environmental Compliance: Required when development has significant environmental considerations

4. Community Benefits: Used when agreement includes provisions for community benefits or amenities

5. Third Party Rights: Needed when other parties have rights or obligations under the agreement

6. Transfer and Assignment: Included when transfer of development rights is anticipated

7. Force Majeure: Added when specific provisions for unforeseen circumstances are required

Suggested Schedules

1. Schedule A - Legal Description: Detailed legal description of the development property

2. Schedule B - Development Plans: Site plans, drawings, and specifications of the development

3. Schedule C - Fee Calculation: Detailed methodology and calculations for development fees

4. Schedule D - Payment Schedule: Timeline and breakdown of fee payments

5. Schedule E - Security Requirements: Forms and amounts of required security deposits

6. Schedule F - Development Standards: Technical standards and requirements for the development

7. Appendix 1 - Forms: Standard forms for notices, certificates, and other documentation

8. Appendix 2 - Infrastructure Requirements: Specifications for required infrastructure improvements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Construction

Municipal Government

Urban Planning

Infrastructure Development

Commercial Property

Residential Property

Industrial Development

Public Sector

Banking and Finance

Relevant Teams

Legal

Finance

Real Estate Development

Project Management

Urban Planning

Construction Management

Municipal Relations

Infrastructure Planning

Risk Management

Compliance

Relevant Roles

Development Manager

City Planner

Municipal Lawyer

Real Estate Developer

Project Manager

Financial Controller

Urban Planning Director

Construction Manager

Development Officer

Infrastructure Coordinator

Legal Counsel

Chief Financial Officer

Development Executive

Municipal Administrator

Planning Supervisor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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