Development charges are set to go up in Guelph.
City Council has passed a new development charges bylaw, as well as approve the 2023 development charges background study conducted by Watson and Associates.
Passed at Tuesday’s planning meeting, the new bylaw would mean developers will be charged $64,813 per single or semi-detached home, and $25.78 per square foot for non-residential development. The last development charges bylaw set $50,680 for a single or semi-detached home, and $16.24 per square foot for non-residential builds.
“People require more services or more amenities in certain areas,” said Guelph Mayor Cam Guthrie. “That DC bylaw update allow us to collect funds or fees that goes towards growth related issues in the city.”
Revenue from development charges allows the city to pay for things like roads and servicing (IE: water and sewer). The city said in a news release that while the increase reflects the rising construction costs, the approved rates remain competitive with those in neighbouring municipalities.
Guthrie said this new bylaw will allow developers get an idea of how much they will have to pay in order to construct a home or business in Guelph.
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“It sets the rates so there is certainty for the development community,” he said. “It also sets out how much money we are allowed to collect for the type of infrastructure and services the city will be providing.”
The new bylaw will also reflect the updates made by the province to the Development Charges Act through Bill 23, the More Homes, Built Faster Act. That bill essentially limits the amount of fees a municipality in Ontario can collect through development charges.
The calculated rates will be subject to a 20 per cent discount in the first year with full rates being phased in over five years.
“We are looking at a $227 million shortfall over 10 years due to just the changes to the development charges act,” Guthrie said.
Guthrie is hoping Housing Minister Paul Callandra will re-visit the bill and address the revenue shortfall that Guelph and other municipalities across Ontario are facing. He did say if the province walks back on those changes, he will look at re-visiting the City’s budget for 2024.
“I have committed, locally, to re-open the 2024 budget and actually lower the budget in line with what the changes can be made.”
If there is no formal appeal by the public on the development charges bylaw by Feb 25, it will take effect on March 2.
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