"(Seniors) have already been taxed all their lives, it would be nice as they're going out of this world they aren't taxed again," said Deputy Mayor Rick Milne.
As it stands the development charges bylaw doesn't address nursing homes, retirement housing or special care dwellings.
Council has decided to calculate the room-related section of these buildings at small apartment rates and the common area at non-residential rates.
Residential rates are charged on the average number of people living in a unit. For small apartments the assumption is it houses 1.3 people.
Without changing the bylaw, retirement housing and the other institutions would pay development charges at the non-residential rate. That fee is based on the gross floor space of the building.
Coun. Jim Stone questions if there is a formula to figure out how much of an impact seniors have on town services and charge them accordingly.
"Maybe I'm feathering my own nest, I feel seniors don't create the same cost as a regular citizen does," said Stone.
Nautical Lands Group director of development Peter Gregor argues Kingsmere Retirement Suites, going up at the corner of Industrial Parkway and King Street in Alliston, has units that are smaller than typical apartments.
The rooms at Kingsmere range in size from 330 square feet for a studio apartment to 711 square feet for a two-bedroom suite. Monthly rates vary from $2,495 to $3,995.
In April, Gregor made a complaint to council. He said the development charges are unfair to the type of development Kingsmere is. Council voted to deny the complaint at the April meeting.
At that time, the dispute was about the interpretation of how residential and non-residential uses is defined in the bylaw. That confusion is cleared up with the changes.
Before the change, to be classified as a residential unit the space needed an independent kitchen. The kitchen requirement is being removed from the definition in the new bylaw. This will help classify developments such as Kingsmere, which don't have kitchen units in the rooms, to still be classified as residential spaces. Other definitions are also being reviewed to avoid future confusion.
Council must also choose what type of new industry it hopes to attract.
If, for example, it opts to attract high technology business, those types of businesses could get reduced development charge rates.
Town staff is looking into how other municipalities are creating their economic development initiatives before making a decision.
Development charges for businesses in the designated downtown areas will continue to be offered at a 75 per cent reduction.
Another workshop to address developers concerns will be held in August. Sept. 15 is the target for approving the bylaw.
Should the development charges go ahead as is, the cost for a single detached unit would 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 based on a per person basis. For example, charges for single detached units assume there are 2.9 people living in the residence.
Non-residential units are based on the gross floor space. 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. to complete a study.
The current development charges bylaw expires Aug. 31, 2009. By updating it early, the town hopes to better reflect the rising costs of construction and to make sure money can be received for the Regional Wastewater Treatment Plant expansions.
