RSS Feed
|
Shopping |
Going Out |
Health Care |
At Your Service |
Home & Garden |
Churches |
Transportation |
Classifieds |
Footprints Magazine |
|
|||||
|
Developers upset by possible fee hike New homeowners and construction companies could be negatively impacted by proposed development charge rate increases, say several local developers. Last week, Innisfil council held a public meeting to discuss the proposed new rates, which could see fees for the construction of residential units increase by up to 161 per cent. The charges, which could be approved by council early next year, would increase current rates for the construction of fully serviced single and semidetatched units in Lefroy from $14,623 to $38,108, in Alcona from $14,623 to $35,460 and in Cookstown from $22,394 to $43,304. Gilford rates would actually decrease by about five per cent, from $86,238 to $82,205. For non-residential units like retail and office space, the town would charge $199.44 per square metre, according to the proposed changes. Development charges are fees levied on new development to pay for the construction of roads, sewers, water treatment plants and other growth related projects within the town, said Hemson Consulting partner Craig Binning, who recommended the changes in a report to council. He says the town has very little choice but to raise the existing fees. Currently, the municipality is not earning enough revenue through development charges to pay for the over $300 million in growth-related water, sewer and roads projects that will be needed during the next 20 years. "The basic concept is that growth should pay for growth," he said. The development charges are supposed to take the financial burden off current town homeowners, said Binning. "Council does not have to implement these charges, but every time you choose to implement rates lower than what is calculated, over time there's a certain amount of development charges that are lost," he said. "That revenue has to be met through some other source. "Most notably, it falls to your property tax base. It puts a burden upon your existing taxpayers." However, several developers say the thousands of dollars in increased fees are too expensive for buyers, something that could force many of them to back out of homeownership deals. "Our customers are not in a position to absorb this increase, and our company's not large enough to absorb such a dramatic increase," said Heljar Hansen of the Pratt Hansen Group. "I understand the need for a review, (but) this review was done with no transparency." Hansen's company has already sold 115 homes for the spring, summer and fall of 2008. But the increased charges could affect those sales. Overall, the proposed rates would impact developer profits, said Townsend, Rogers lawyer Lynda Townsend, on behalf of several groups, including 15 Alcona developers. "We're all faced with the inevitable question of what the price jump will be, because that's not something that can be absorbed," she said. If passed, the town would have some of the highest development charge rates in the region. However, many other municipalities are currently undergoing similar reviews of their rates, because of the high population growth expected over the next few decades, said Binning. Thus, many of the existing rates in other municipalities could significantly change soon, he said. Currently, Barrie's development charge for a single and semi-detached unit is set at $17,311. "Many of the (nearby) municipalities are in the process of reviewing their studies, and they are experiencing the same pressures you are," he said. "It's highly likely most of (their) charges will increase over the next year." Hansen say the town has consulted enough with developers to make an informed decision to raise rates.
"The time we were given was not sufficient," he said. "(Council should) consider a grandfather clause, to allow us to build the homes we've already sold." A breakdown of development charges in other municipalities: |
for larger version       |
||||
