The parkland dedication fee in Grey Highlands will rise from $500 to $2,000 immediately.
The Grey Highlands council meeting on May 29 featured twists and turns and a series of resolutions and close votes that concluded with council’s narrow approval of an immediate increase in the fee from $500 to $2,000.
The fee is charged by the municipality at the time a new lot is created. It is paid as cash in lieu of an actual donation of land for parks purposes.
For many years, Grey Highlands charged a $500 fee. However, with inflation rising and land costs up, Coun. Paul Allen brought a resolution to hike the fee to $2,000. Council approved Allen’s resolution at its meeting on May 1. Subsequently, Mayor Paul McQueen had second thoughts about the increase and introduced a resolution to phase-in the $1,500 increase over three years.
The mayor’s resolution was a “reconsideration” and required two-thirds support to proceed. Council voted 5-2, with Allen and Deputy Mayor Dane Nielsen opposed, to allow the mayor’s request for a reconsideration.
In turn, that put Allen’s original motion back on the table for discussion and McQueen moved an amendment to add a three-year phase-in of the $1,500 increase.
The issue divided council and set off a lengthy discussion and debate about the matter with a diverse range of opinions emerging on the topic.
Coun. Joel Loughead favoured increasing the fee, but did not support a flat rate. He said it would be better for Grey Highlands to charge a parkland fee as a percentage of the value of the new lot being created. Provincial regulations allow both flat fees or a fee based on up to five per cent of the value of the land.
“I’m having a hard time understanding why we wouldn’t use a rate of percentage,” said Loughead.
Coun. Dan Wickens didn’t support any increase.
“I’m not a big fan of raising these kinds of fees,” said Wickens.
Others favoured a straightforward flat fee increased to $2,000.
“I really don’t think this is going to affect the general public,” said Allen, who said the flat fee of $2,000 was the most user-friendly approach. “This is just clean. We know how much it is regardless of the price of the lot.”
McQueen argued that the increase all at once was significant and would have an impact.
“We’re cutting short these individuals, creating a lot to build a house for a family,” said McQueen. “There are a lot of costs born when you create those lots. The rate of increase is a little bit heavy.”
The mayor’s amendment was defeated in a 5-2 vote with just McQueen and Wickens in favour. Council then voted 4-3 in favour of Allen’s original motion to up the fee to $2,000. McQueen, Wickens and Loughead voted against.
