Mixed concerns on new county development charges

Background study on proposed charges being released April 15

Essex County is looking at creating development charges (DCs) on new residential, commercial, and industrial builds to help combat the price for future population growth.

County council heard a report from its director of financial services/treasurer Melissa Ryan who noted that “the adoption of development charges would provide a sustainable funding source for growth-related infrastructure, reducing the financial burden on existing taxpayers.” 

“The county has never had one. Historically growth has been funded through the levy on a pay-as-you-go basis,” said Ryan, during last Wednesday night’s meeting.

According to information provided by Ryan and consultant Stefan Krzeczunowicz from Henson Consulting, if adapted, the new DC would net $13,000 for each new single-detached home, $8,000 per townhouse and $7,000 per apartment unit. Industrial and commercial builds would be hit with a $46.50 square foot charge.

This is on top of the existing development charges from each of the seven individual municipalities in the county. 

County councillors had mixed opinions on the newly proposed charges.

“I don’t think we have a choice in this. If we don’t raise the funds through development charges, every December (budget process) we will sit here and pay for the billions of dollars through the levy,” said Amherstburg Deputy Mayor Chris Gibb.

Gibb said it may slow down development but the county needs to pay for the future growth somehow.

“I feel there is no other decision than to support this and move forward,” added Gibb.

Tecumseh Mayor Gary McNamara said that the county is responsible for infrastructure which includes roads, ambulances and long-term care. 

McNamara said that there could be push back from developers, but the county needs to have its own development charges.

“If you say no to this you are going to transfer the cost of this to the property owner. You have to pay for the capacity on the highways,” said McNamara.

Essex Mayor Sherry Bondy suggested a phased-in approach for the new charges and that individual municipalities could fill in the gaps.

“I am concerned with the numbers presented because we are in a housing crisis and we are already seeing builders slow down,” said LaSalle Mayor Crystal Meloche.

Meloche would like to hear from builders but feels the new charges would have a negative impact.

“We’ve scheduled a meeting with local developers for April 30 to discuss the findings of the background study,” said Krzeczunowicz.

Lakeshore Deputy Mayor Kirk Walstedt was opposed to the county charges and said the builders would be upset and they would be transferring the cost to the home buyers. 

“I don’t like it. To me we are actually going backwards. We talk-the-talk about affordable housing and helping out.”

Kingsville Deputy Mayor Kim DeYong wanted to know if the development charges could go up to which Kreczunowicz said it would be inflationary increased.

“Is there any concern about new charges hindering growth? Some municipalities are looking at doubling the cost to build,” said DeYong.

The consultant replied by saying, “we do not factor in the impact of the charges that may or may not occur on the rate of development you are projecting in your Official Plan.”

Kreczunowicz said that the average house in the region costs about $560,000 and the new proposed charges would amount to an additional two percent on this built in Essex County.

The background study on the proposed new charges will be released to the public April 15, followed by a meeting with developers, public meetings and eventually an appeal process.

Mixed concerns on new county development charges

By Fred Groves