Collingwood has adopted new development charge rates.
Council voted in favour of staff’s suggestion to phase-in the increase to commercial and industrial development charges, since the increased recommended by the consultants was more than 100 per cent.
The increase will be phased-in over the next five years to use the next five years to phase in the increase, bringing the rate from $68 per square metre to $142 per square metre by 2024 by increasing it by $14 per year beginning in 2020.
Since 2005, there has been a non-residential development charge rate freeze in effect. Essentially, that has meant a 50 per cent discount on development charges for commercial and industrial buildings.
“This is a common practice as the residential tax base, historically, was reliant on the commercial and industrial development as potential employment providers,” states a staff report presented to the committee.
Staff estimate a $7 million shortfall as a result of discounting non-residential development since 2005.
Mayor Brian Saunderson said during the Aug. 26 council meeting the town was “over-reliant” on the residential tax base suggesting about 80 per cent of the town’s development charges was from residential development instead of commercial/industrial.
The residential development charge increase is set at 22 per cent.
Under the previous bylaw, the town was collecting about $24,500 from each single and semi-detached home built in Collingwood.
Under the new development charge bylaw passed last night, the new fees would be:
Single and semi-detached homes: $30,006
Multi-unit structures: $22,632 (per unit)
Apartments (two or more bedrooms): $18,025.
Development charges are fees collected on new development - both residential or commercial - to be used by the town for capital projects related to growth and to accommodate the growth created by new development.
Development charges cannot be used for ongoing operational costs or for the replacement of existing assets.
