Municipal councils have always been of two minds about development charges – but now Centre Wellington councillors appear to have found a compromise.
Council has levied its charges on a local business, but has given that business some time to pay those fees.
Development charges are used to offset future capital costs. That means when houses are built or businesses built or expanded, the owner has to pay a fee that is designed to cover increased costs for sewer, water, recreation, policing, and other municipal services.
Some councillors are adamant that such fees discourage businesses. Others see those fees as necessary – because of the new homeowner or business does not pay them, the current taxpayers in the township have to provide those missing tax dollars on their property taxes.
Centre Wellington took firm stand several years ago to charge the fees.
On May 16, council approved a bylaw that allows perforated Sheet and Plate Inc., of Fergus, to defer the payments.
Township Treasurer Wes Snarr explained in a report to council, “Section 27 of the Development Charges Act allows a municipality to enter into an agreement with the owner of a property for the payment of [development charges] earlier or later than they are normally due.”
He added that the payment is normally due when the owner obtains a building permit. That time is specified in the township’s development charges bylaw.
In this case, the company is building a 228.89 square metre addition to an existing manufacturing building at Dickson Drive. The total development charge is $18,449, and Snarr said it will now be timed with two equal installments. The first is due six months from the issuing of the permit, and the rest another six months from then.
Snarr said that the company recently purchased some large machinery in Europe, needs to expand its premises for it, and he believes the issue is simply cash flow.
Councillor Steve Van-Leeuwen said he liked the proposed compromise.
“It shows the township’s ability to work with people in small ways,” he said.
Council was unanimous in passing the bylaw.
