Council approves settlement of development charges appeals

City Council today approved a settlement with several of the parties appealing the City’s new development charges that will continue to see growth pay for growth.

Development charges pay for the growth-related portion of capital costs for transit, new roads, water, sewers, drainage, emergency services, parks development, major indoor recreation facilities, libraries and growth-related studies.

The City must update its development charges every five years, based on the infrastructure needs for growth. The new Development Charges By-laws, including fee schedules, are subject to appeal, and, as has been the case with past development charge reviews, several appeals were received.

The City held discussions with the various appellants and the two sides arrived at an agreement that provides reductions in rates for growth-related road projects but continues their support for the City’s top growth-related funding priority, public transit.

The anticipated fee schedule ensures that projects such as the Confederation Line and Stage 2 rail projects are funded.

The settlement avoids a prolonged hearing at the Ontario Municipal Board and resolves a majority of the appeals of the City’s new development charges.

Under the settlement, new homeowners outside the Greenbelt will pay $28,651 per single-family house in development charges, rather than $30,362. New homeowners inside the Greenbelt will pay $20,638, rather than $22,173. The fee for rural single-family homes is $15,921 rather than $17,474. Commercial rates will also be decreasing.