Home builders can expect to see development charges in Wellington North go up to $15,344 in 2015 based on construction of a single family home after council passed the bylaw Monday evening.
Development charges are established based on predicted growth and water and sewer services required to handle new development. The rate will rise to $14,672 by Jan. 1 next year before going to $15,344 on Jan. 1, 2015.
Gary Scanlon of Watson & Associates Economists Ltd. presented the figures at a public meeting held at the municipal office on June 14. About 20 people attended the meeting.
The charge for a single family home currently is $14,000 and came into effect earlier this year after council attempted to lower it from a previous level of $21,000.
Previous efforts to lower the charge were stymied after council lost two Ontario Municipal Board (OMB) rulings when efforts to pass a new development charge bylaw were challenged by township resident Jens Dam.
Mayor Tout has always contended lowering the charge would spur development. It was one of the platforms in his election campaign that saw him elected mayor. In that effort, Tout said, “council rose to the challenge.”
The current charge put forward by Watson predicts there will be a growth of about 652 residential units in the next 10 years.
“If you don’t have anything in the shop you can’t sell it,” Tout said of preparations the township has to put in place to meet building development.
“Our whole idea is continuing growth and bringing in water and sewer services to meet demand,” the mayor said.
One of the developments to be funded out of development fees is a second water tower in the south end of Mount Forest. A decision on the water tower has yet to be made and will eventually depend on growth.
Mayor Ray Tout said he was satisfied with public input on the new fees, including from developers, and with council’s efforts to reduce it.
“There was good dialogue that came out of the public meeting,” Tout. “We’re willing to work with them.”
He is hoping the fee, which will see a $600 increase by 2015, and efforts to attract new business to the township will stimulate growth.
The current development charge fund contains slightly more than $1.3 million.
Tout said legal efforts are underway to determine whether the township can reclaim some $229,000 paid out in disbursements and rebates handed out by the township prior to it establishing its current bylaw.
