Development Agreements

RM of Hanover

Development agreements are used to ensure that new development is properly serviced and that responsibilities are clearly defined.

What is a Development Agreement?

A development agreement is a legal agreement between the municipality and a developer or landowner that outlines who is responsible for building and paying for infrastructure required to support a development.

Why are Development Agreements required?

Development agreements help to:

• Ensure new development is safe and properly serviced
• Clearly define who is responsible for costs and construction
• Protect the municipality and taxpayers from unexpected costs
• Ensure development is consistent with the municipality’s long-term plans

What does a Development Agreement include?

Depending on the project, an agreement may address:

• Water and wastewater services
• Roads, access, and street lighting
• Drainage and lot grading
• Traffic and parking
• Landscaping requirements
• Timing of construction
• Land dedication (e.g., roads or public use)
• Financial contributions or infrastructure upgrades

When is a Development Agreement required?

Development agreements are typically required as part of:

• Subdivision applications
• Rezoning (zoning amendment) applications
• Conditional Use or Variance approvals

Types of Development Agreements

1. Subdivision Agreements

Used when land is divided into new lots.

Typically includes:

• Servicing (water, sewer, drainage)
• Roads and infrastructure
• Lot grading requirements
• Land dedication (roads, public land)
• Financial security (e.g., letter of credit)

2. Zoning Amendment Agreements

Used as part of a rezoning approval.

May address:

• Building location and design
• Development timing
• Traffic and parking
• Landscaping
• Infrastructure or financial contributions

3. Conditional Use / Variance Agreements

Used where specific conditions are required for approval.

May include:

• Servicing requirements
• Payment for municipal connections
• Compliance with municipal standards

Financial Security (Letter of Credit)

Developers are typically required to provide a letter of credit (financial security).

This ensures the municipality can complete required work (such as roads or drainage) if it is not completed as required.

What does this mean for property owners?

Development agreements are registered on the property title.

This means current and future property owners must follow the conditions of the agreement.

Who does this apply to?

Development agreements typically apply to:

• Developers
• Property owners creating new lots or proposing development

They generally do not apply to existing homeowners unless new development is proposed.

Important Note

This page provides a general overview only.
For specific requirements, refer to applicable by-laws or contact the Planning Department.

Questions?

Contact the Planning Department at 204-346-7126 or submit a request through the municipal website.