Regional council approves several development charge amendments

By Dave Flaherty/The Oshawa Express

Development charges created a lot of buzz at the latest meetings of regional council.

As of July 1, developers will see an increased charge of $2,759, or a 9.7 per cent, per unit jump on single and semi-detached houses.

In a report to council, acting commissioner of finance Mary Simpson explained the increase to residential charges was due to higher costs for roads and water supply, and the introduction of a new service charge for housing services.

Finance department staff has also recommended the creation of new development charges that will flow towards the region’s housing services.

Under the schedule for 2018, this new category adds $387 in charges on each single/semi-detached unit.

Along with the changes to residential charges, rates on industrial development would drop from $11.07/per sq. ft to $9.42/per sq. ft and the rate for commercial projects would increase from $13.74/per sq. ft. to $17.93/per sq. ft.

Simpson said despite some increases, Durham’s DCs still remain among the lowest in the GTA.

“We have very competitive development charge rates,” she said.

By comparison, DCs on a single/semi-detached unit are $52,407 in Peel Region and $48,330 in York Region.

The commercial rate in York is $39.89 per sq. foot and $17.50 per sq. foot on industrial lands.

However, according to one company based in Port Perry, Durham’s development charges are making it increasingly difficult to do business in the region.

James Oliver is the director of marketing and sales for Adamson Systems Engineering.

The company, which builds concert loudspeakers, has experienced substantial growth over the past four years and seen its employment base grow from 30 to 120.

However, with a planned expansion, Oliver admits it “does not make sense financially” to stay in Port Perry with Durham’s current DC rates.

“We are bringing in millions and millions to the community, and employing hundreds of people. I’m literally the last person standing in this company that is saying let’s stay here,” he said.

When Oshawa Councillor Amy McQuaid-England asked if the company was willing to move, Oliver stated they were “willing to do what it has to survive.”

He added that the state of Texas had offered to pay to move the company there.

McQuaid-England said if the company leaves, the loss of development charges would fall back on residents.

“The whole point of development charges is so we can pay for infrastructure. What do we say to citizens who cannot afford to pay their taxes?” she remarked.

Again, Oliver said without a reduction in development charges, it is not feasible for the company to stay and expand in Durham Region.

They believe it would cost more than $1 million in development charges alone to go ahead with the expansion, although Simpson noted under the new rate and with an expansion credit in mind, the figure would likely be closer $573,000.

Furthermore, Oliver said for what the company pays in development charges, they do not receive adequate services, including no connection to the sanitary sewage system.

In response, Clarington Councillor Joe Neal suggested the region develop a policy of half payment of industrial development charges until the lands are serviced.

“It doesn’t seem to make a lot of sense to expect full upfront payment of what is a significant amount of money job creators are being asked to shell out,” he said.

Simpson stated the general policy is that development charges are collected where services are expected to be installed.

“I understand that can be difficult,” she added.

However, she would prefer time to discuss such a policy with the region’s legal and development departments.

Ajax Councillor Colleen Jordan bashed Neal’s proposal, which failed to gain support from council.

“You don’t make policy on the fly, there has to be some thought put into this,” she said.

“To suggest there is no thought that goes into that is ridiculous,” Neal fired back.

This wasn’t the first time council heard such a story from a business owner.

Dorie McDonald, owner of Sunnybrae Golf Club in Port Perry, appearing before council on June 13, shared plans to develop a hotel in the town.

However, she noted that Durham’s development charges rates are creating challenges to make this dream come to fruition.

She noted that York Region has lower development charges specific to the hospitality industry, and she would like to see the same in Durham, even if just in Scugog Township.

Oshawa Councillor John Aker said it wouldn’t make sense to offer ‘one-off’ discounts or rollbacks on development charges, and instead, a comprehensive policy should be established.

“When the MTO opens up land along the 407, there will be several hotel applications along that area,” he said.

To him, the region should be helping businesses that are already established in the area.