PUSLINCH – Representatives from Sunrise Therapeutic Riding Centre didn’t get everything they wanted from Puslinch council on Sept. 7, but at least they can move forward with their plan to redevelop the centre.
Sunrise is a not-for-profit organization that provides horse riding opportunities for children and adults with developmental challenges.
It has plans to expand its barn and shelter areas for the horses and to add a new residential component to the services it offers.
The centre has been working through the township’s planning process and has almost checked all the boxes.
In May, council agreed to waive the parkland dedication obligation and since then the organization has worked with township staff on the technical aspects of the site plan agreement.
What is still outstanding is the financial assurance; “the amount, the form and the timing of providing it,” board member Peter Cummins told council on Sept. 7.
Any developer is required to put money down – money the township can access if something goes awry with construction and the township needs to return the site to its former state.
Normally a letter of credit from a bank will suffice, but because Sunrise is a non-profit and has never been in debt, it can’t get a letter of credit.
Cummins said a donor has come forward and will allow Sunrise to use its credit facilities, “but a letter of credit can’t be from a third party,” he explained.
He asked if the security deposit can be issued when the building permit is issued, which will likely be another year to 18 months, he said, and not with the site plan agreement, which is the current practice.
That would save the organization interest payments on the $144,000 amount.
“We’re not a developer. We are a registered charity and that is the crux of the matter,” added Sunrise founder Ann Caine.
Clerk Courtenay Hoytfox said township staff did seek legal advice and confirmed the security deposit needs to be turned over when the site plan agreement is signed.
“It’s important to collect at the time of signing the site plan agreement,” she said.
“Those securities are the assurance the development will take place.”
Cummins estimated the interest the organization would have to pay would be about $6,000 a year.
“We’re trying to avoid that cost,” he said.
Mayor James Seeley was sympathetic but felt the township could not put itself at risk.
“We are supportive of Sunrise and granted the parkland dedication fees,” he said.
“But this one is not ideal for the township. I’m concerned about setting a precedent with other developers.”
Councillor Sara Bailey agreed, noting, “Because we received legal advice, I think it needs to stand how it is.”
Councillor John Sepulis asked if the township would collect interest on the security deposit and if that amount could be returned to Sunrise, to mitigate some of the interest expenses the organization will incur.
In the end, council decided Sunrise should pay the security deposit when the site plan agreement is signed, and the township will return any interest it accrues on the deposit.
“I hope that helps,” Seeley said. “We’ll do our best to mitigate the interest.”
