Proposed development charges revised downward

MINTO – Town council has been presented with a significantly reduced increase to development charges, compared to what was proposed earlier this year. However, urban builders in Minto will still be on the hook for more should a new bylaw pass.

Development charges are paid by developers to prevent existing local taxpayers from having to cover the costs associated with a new home. They take into account roads, fire services, parks, growth studies and water/wastewater services.

Minto Mayor Dave Turton said only an appeal is likely to interrupt the bylaw following an expected June 2 vote.

Findings from a recent study by Watson and Associates, to update Minto’s 2020 development charge study, were presented in a formal public meeting in March. 

But feedback from developers caused the consultant to lower its earlier figures after a line-by-line review of the town’s projects to look at who benefits and carries the share of the cost (town taxpayers, a single developer, or developers collectively through development charges).

Tina Chitsinde, Watson and Associates project coordinator, told council during a May 19 public meeting the process involved  “going through [and] identifying who’s responsible, what is the project, refining, [and] taking in those comments that we’ve received.”

For a single-detached urban home, the development charge was revised down from the $21,413 presented in February to $15,900. 

That’s still a 15% increase from the current charge of $13,781, largely because the water services portion of the charge more than triples to $7,026 (from the current $2,059).

For a rural home, however, the updated revision now decreases the future development charge by 35% to $3,600 (from the current $5,558). In February, the figure was set at $7,430.

The drop is because rural builders would pay a cheaper municipal-wide portion (roads, fire, etc.) and not the increased water services portion.

For non-residential development, the charge per square foot drops from $5.87 to $5.58. Watson and Associates had originally recommended an increase to $7.49.

Driving declines for rural and commercial development charges are:

– $1.7 million in grant funding;

– shifting $13 million in roads and water/wastewater costs directly to developers; and 

– the line-by-line project review of who splits the cost of a project based on who benefits from it.

Andrew Eldebs of Clifford Park Street Developments spoke at last week’s meeting, asking council to undo changes made in the updated study.

The developer is behind a 189-unit residential subdivision at 41 Park Street West in Clifford.

“We’re not asking to avoid paying our fair share of any local work,” Eldebs said.

“If there’s work that’s identified that’s genuinely only beneficial to our development, we accept that responsibility.”

Eldebs said three Park Street infrastructure projects – urbanization, an intersection realignment and a sewer extension – were all removed from development charges under the Watson and Associates study and put onto Clifford Park Street Developments.

“It shifts about $2.7 million in growth-related capital costs out of the development charge and onto local development,” Eldebs said.