A number of local developers and builders are warning The Blue Mountains council that a significant planned increase in local development charges could have a negative impact on growth in the town.
On March 12, council held a public meeting about its draft 2024 development charges bylaw update, which calls for significant increases to the fees The Blue Mountains charges to new growth.
The proposed increase in the study generated significant opposition from the development community.
The town’s proposed development charges background study forecasts $40.7 million in development charges related capital spending over the next 10 years. It recommends a basic development charge for a single or semi-detachment home with no water and sewage services of $37,775 - up from $24,047. The commercial/industrial charge would be $135.28 per square metre - up from $85.70.
Development charges in The Blue Mountains vary depending on the area in the town in which the development is located.
The town has 11 area-specific development charges - Craigleith, Castle Glen, Osler, Thornbury East, Thornbury West, Clarksburg, Lora Bay service area 1, Lora Bay service area 2, Lora Bay service area 3, Camperdown and Swiss Meadows - in its bylaw. The proposed new charges range from a low of $37,775 in Swiss Meadows to a high of $137,022 in Osler.
At the public meeting, town clerk Corrina Giles read multiple comments from development industry representatives expressing concerns about the proposed fee increases, with many asking for a deferral of the proposal and more discussion between the industry and town staff/consultants.
Comments read by Giles included:
Andrew Von Teichman said that he is “appalled” by the size of the proposed increase and said the town was proposing significant increases to charges on apartment building at the same time the town has a “dramatic shortage” of rental housing.
Former councillor Rob Sampson questioned why the town isn’t providing more favourable development charge rates to those proposing higher-density developments.
Kristine Loft asked for the proposed rates to be deferred to allow for more time for review.
Miriam Vasni said the new rates would have a “negative impact on the viability of any new business development in Thornbury.”
Kory Chisholm spoke directly to council at the meeting. He said Eden Oak is developing the Trailside project in Craigleith and has pre-sold units. He called the proposed increase “alarming.”
“My client does have concerns with the significant increases proposed,” he said.
Colin Travis said he shares the same concerns expressed earlier with the scale of the increases and impacts they will have on business plans already in place for various projects.
Town consultant Craig Binning prepared the background study and presented its findings at the public meeting. He said development charges increases are happening across the province.
“This is critical infrastructure that is necessary for the development of land across the town,” said Binning. “The cost of delivering this infrastructure has increased quite substantially.”
New provincial legislation requires the town to phase in the new charges over the first five years of the 10-year timeframe of the development charges bylaw. The town does face a time crunch on the matter. The town’s current bylaw from 2019 expires on April 23, 2024.
Council made no decisions on the matter at the meeting. A follow-up staff report will come to council summarizing the comments from the public meeting and will include a recommendation for council to consider.
