Norwell Dairy officials are hoping a break from the township can help lower from almost $140,000 the total development charges and permit fees tied to its new building on County Road 8, southeast of Drayton.
Representative Jack Bosman recently told council the recently-introduced industrial and commercial development charges in Mapleton are “excessive.”
He explained that in 2007, when Norwell Dairy Systems first budgeted for a new 40,000 square foot building adjacent to Marspan Home Hardware, “development fees were substantially less than they are today.”
In fact, up until last September, the township did not have development charges for commercial and industrial developments.
In a letter to both Mapleton and Wellington County councils, Bosman said both municipalities “could reduce the fees as an incentive to attract a company offering significant employment opportunities.”
He added the company employs more than 60 people and wants to remain in the township, but can no longer operate in its existing building.
“We have been bursting at the seams for a number of years,”?Bosman told Mapleton council on May 11.
Bosman called the plans for a new building a great investment not only in the company itself but also in the township.
He said given that development charges usually cover roads, fire protection services, recreation service and administration – most of which “will not be affected” by the move – it makes sense that Norwell Dairy be given a break.
Mayor John Green told Bosman council would consider the request and get back to him.
Later in the meeting councillor Bruce Whale asked what the business would have paid prior to the township passing its new development charges bylaw.
Finance Director Mike Givens replied the company would have paid just the county development charge, which he estimated will be about $65,000.
Now the business will have to pay that figure – provided the county does not agree to a reduced amount – plus about $54,000 in township development charges and just over $20,000 in permit fees, Givens explained.
“It’s a significant building,” he said.
Councillor Dennis Craven mentioned an option of paying the charges over three years and Givens confirmed the business could sign a payment deferral agreement to that effect.
But Green said most companies prefer to get development charges out of the way as soon as possible.
The mayor added councillors would have to meet with staff and decide if it wants to make a proposal back to Norwell Dairy.
