Development charges to increase 30% as township grapples with growth

ELORA – Developers in Centre Wellington will likely see a hefty increase in development charges after the current bylaw expires in March.

Mayor Shawn Watters and CAO Dan Wilson spoke to a full house at the Breakfast with the Mayor event at Grand Way Events Centre on Jan. 28.

The breakfast was hosted by the Centre Wellington Chamber of Commerce.

And while the talk was broad and included updates on multiple initiatives of the current council, some folks started jotting down notes when Wilson said the development charges (DC) background study is indicating a substantial increase – from $36,000 to $48,000 on a residential property and from $11.71 to $15 per square foot for non-residential properties.

Wilson said there will be some exemptions for developers who build affordable housing, which is defined by the province as $430,000 for a home or $1,200 to $1,400 for monthly rent.

If a developer is within 20 per cent of those affordability numbers, they could defer and pay their DCs over six years, he added.

“While we need DCs, and they’re necessary for us to pay for growth, we’re trying to make concessions and incentives for affordable housing and close-to affordable housing, so we can continue to grow that area,” said Wilson.

It’s a tough balance, Watters acknowledged.

The province has mandated that Centre Wellington grow to 60,000 residents in the next 25 years.

That growth is driving almost everything the township has done since the current council came into office in 2022.

“We can’t say no (to the province) but we can participate in the conversation,” Watters said. “We can help shape that growth by increasing density and protecting prime agricultural land.”

Wilson added, “Now that we know the urban boundary, we’re putting growth management in place."

He said the township has conducted a housing needs assessment and is developing a housing action plan that will include input from a yet-to-be-formed housing advisory committee.

The township recently purchased 91 acres beside the Fergus sportsplex to be developed into a recreational campus for the growing population.

Similarly, it purchased the Middlebrook well to accommodate future water needs.

Watters called both “smart” purchases.

“Look at what’s happening in Waterloo right now,” he said, referring to recent reports that Waterloo Region predicts it won’t have enough water to service the growth expected in that region.

A few in the audience also grabbed their pens when Wilson said the municipal accommodation tax (MAT) will likely sit between three and eight per cent.

This tax will be paid by guests at motels, hotels and Airbnbs in the township as a way for tourism to pay for tourism.

“At least 50% has to go to a destination marketing organization so we can utilize funds from tourists to invest into the community,” Wilson said.

Watters said 750,000 visitors per year come to Centre Wellington, “and they use our washrooms, our roads, our garbage. Our community shouldn’t be forced to pay for that.”

Watters said funds from the MAT will be used to reduce the impact on infrastructure.

Wilson said a decision report on the tax will likely come to council in March.

“There’s a lot going on this this community,” Watters said as the session wrapped up. 

He said there is always pressure on politicians, but over his years in public office, “I’ve never seen it like this.”