The original aim was to pass a renewed development charges bylaw next week. That approval likely won’t come until September now after a public meeting Monday night.
Local developers voiced concerns about proposed changes, that would see development charges increase 50 per cent. Before the bylaw is renewed the developers asked for a further breakdown of the costs.
“We feel strongly that this bylaw cannot go forward until these things are truly discussed,” said Peter Gregor, Nautical Lands Group director of development.
Nautical Lands Group owns Kingsmere Retirement Suites, being built at the corner of Industrial Parkway and King Street in Alliston.
Gregor said the bylaw is flawed and doesn’t include retirement housing to the extent it should. He explained retirement residences are different from nursing homes and Kingsmere doesn’t fit into the bylaw. Should the bylaw pass as it is, Gregor worries it won’t allow for future expansions of the Kingsmere development.
IBI Group director Randy Grimes also spoke against the development charges. Grimes represents a group of seven local developers, including Devonleigh Homes, Nordstar Developments Inc., and Mattamy Homes Limited.
He came armed with a list of concerns from his clients.
For starters, he said the financing rates are too high. The town suggests 6.5 per cent while he believes a more reasonable number is five per cent.
Coun. Jamie Smith said it would be extremely optimistic to finance everything at five per cent.
Grimes also wants more information on how costs were calculated and broken down between residential and non-residential expenses for roads, water and wastewater.
As development charges are fees for new businesses and homes being built to pay for growth-related expenses, Grimes questions why decommissioning the Tottenham Wastewater Treatment Plant is being covered by development charges.
The questions and concerns raised at the public meeting have been sent back to town staff. Another workshop to address developers’ concerns is scheduled for August.
Sept. 15 is now council’s new target for approving the bylaw.
Should the development charges go ahead as is, the cost for a single detached unit will increase $10,833. The cost includes water and wastewater expenses and increases from $21,711 to $32,544.
To figure out development charges, residential units are costed on a per-person basis. For example, charges for single detached units are based on the assumption there are 2.9 people living in the residence. Non-residential units are based on the gross floor space of the development. The cost for non-residential units is expected to increase $56 per square metre, from $140 per square metre to $196.
Across the province municipalities are reworking existing development charges to reflect growth-related costs. New Tecumseth began its study in March by hiring Hemson Consulting Ltd.
The current development charges bylaw expires Aug. 31, 2009.
By updating its bylaw early, New Tecumseth hopes to better reflect the rising costs of construction and to make sure money can be received for the Regional Wastewater Treatment Plant expansion currently underway.
