Wellington County has a new development charges bylaw, but two mayors from northern municipalities opposed the increase at county council Jan. 31.
The proposal for the development fees is:
– $2,170 for single and semi-detached homes;
– $1,178 for apartments two bedrooms or more;
– $849 for bachelor and one-bedroom apartments; and
– $1,568 for multiple dwellings.
The bone of contention for Wellington North Mayor Mike Broomhead and Minto Mayor David Anderson was the $1.51 per square foot for commercial and industrial buildings.
Development charges are used to offset costs of new development, and include factors such as police, roads, libraries, administration, ambulance, childcare, Provincial Offences Act, the Health Unit and social services.
Broomhead said because his municipality borders places that have no such fees, Wellington North is at a disadvantage when it comes to attracting business and industry.
“When you get to the perimeter, all you have to do is cross the road and build what you want at no cost,” he said. “It makes the local municipality back off.”
Recently, Minto dropped its development charges by 33% to cover the increase by the county. Broomhead admitted councils in the north are looking at dropping their development charges. “It’s gets trickier when you get farther up,” he said of attracting business.
But councillor Rod Finnie, who is mayor of Erin, disagreed.
“Right now, all our neighbouring municipalities have development charges – but we don’t get the industry,” he said, adding that development charges are “critical to developing infrastructure.”
He added that some business people he has spoken with have stated they would rather pay “up front” than have to endure years of tax hikes to make up for a lack of development fees.
Usually, when a municipality cancels or reduces its development fees, it is the residential component that has to make up for it on the tax bill.
Finnie said, “Development charges do not pay the total costs of all development. A lot of the burden falls on the taxpayer.”
Broomhead said what he does not like to see is the local municipalities lowering their fees to make up for what the county is charging. He said that is akin to “downloading” onto the lower tiers.
He said he is not against development charges, but, “If anybody is going to lower the development charges, the county is better able to do it.”
Anderson, too, pointed out that in the north part of Wellington, municipalities like Minto are “not experiencing heavy industrial growth. It’s tough to compete against our neighbours. We’re trying to stay competitive.”
Councillor Brad Whitcombe argued that council had choices: to either accept the bylaw, lose development charges altogether, or stay with the old bylaw.
Treasurer Craig Dyer said the old bylaw would run out at the end of September. He said, “There is a five year limit on development charges. If this is not replaced, we stop development charges on Oct. 1.”
Broomhead tried for a compromise, suggesting adopting half or two-thirds of the increase, or phasing in the increase.”
Council voted to approve the charges, with only Anderson and Broomhead opposed.
