The City of Edmonton may also require a developer or owner of real estate to enter into a maintenance contract if the developer simply wishes to provide services for existing unmaintained real estate in residential, commercial and industrial areas. Approved construction drawings are part of the maintenance contract. Once the technical drawings are in second circulation, the developer can request the maintenance contract. The maintenance contract is a legal contract between the developer (or land owner) and the City of Edmonton, which describes the financial and other conditions to be met and agreed upon prior to the development operation. Once the requirement for a maintenance contract has been identified, the developer must enter into the maintenance contract prior to the construction of municipal improvements or infrastructure on urban lands or the city`s right of priority or on land that will become the property of the city after the registration of a subdivision plan. However, the biggest challenge is that, as several analyses have shown, new residential construction does not generate enough revenue to cover the maintenance costs of the development over its lifetime. In the past, municipalities relied on increasing the level of commercial and industrial taxation in a municipality and on transferring an increasing share of taxes to the business and business tax base. Municipalities can ensure that land use planning allows for appropriate industrial and commercial development. Ultimately, however, the ability to attract such uses is subject to external market forces. The transfer of the tax burden to industrial and commercial predispositions also has limits. Changes to the Development Agreement and duty-free legislation may help to bridge the imbalance, but may not be sufficient. In addition, these fees fall exclusively on new residents, raising questions about the impact on housing prices and housing accessibility, as well as the fairness of bearing all costs for new residents.
The objective of the maintenance contract is to identify the municipal improvements to be implemented as well as the responsibilities of both the developer and the city after the completion of the improvements. These include construction, inspections, approval of municipal improvements, and short- and long-term maintenance. In order to remove barriers for business owners and offer financial flexibility to developers, the city now accepts development obligations instead of a credit or cash guarantee for new and existing service contracts. Municipalities can now enter into an agreement with a landowner before deciding on an application for subdivision, providing either that the owner is not required to provide an environmental reserve or that he or she is required to provide an environmental reserve with the limits set by the agreement. The subdivision authority may not require additional environmental reserves at the time of subdivision. The limits set out in the agreement can only be changed if both parties agree that there will be a substantial change affecting the land that occurred after the signing of the agreement. A municipality may require an applicant for subdivision or development to enter into a development agreement to build roads, sidewalks and utilities or to pay for the construction of roads, sidewalks and utilities. The agreement may also require the developer to build or pay for an improvement with overcapacity. An accompanying agreement, called a maintenance agreement, sets standards for the construction of municipal roads and public services.
A developer usually also needs to sign this agreement in order to ensure compliance with municipal standards….