Development Charges Go Up

Town Council January 12, 2009

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Development Charges implemented in Saugeen Shores in 2008 are about to go up.

The Charges are going to be indexed annually to keep up with the rate of inflation and is tied to the non-residential building construction price index that is used by Ontario municipalities to determine inflated construction costs for municipal projects.

The indexing ensures that developer contributions stay current with rising costs so that the difference is not transferred to the tax base. As of December, 2008 the building construction price index was 11.59%, which is the rate being applied to Saugeen Shores' development schedule. In 2008, the rate applied to a single detached/semi-detached dwelling was $4,000 and in 2009 that will rise to $4,464; two-bedroom apartments go from $2,580 to $2,879; bachelors and one bedrooms move up to $1,836 from $1,645. Trailer units go from $548 to $612 and commercial development over 3,230 sq. ft. rises from $1.80 to $2.01/sq.ft.

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14/01/2009 10:41 PM

Councilor Luke Charbonneau suggested freezing the rate to "keep money in the pockets of developers" to increase building through an amendment to the By-Law.

Mayor Mike Smith said that he would be apprehensive about amending the By-Law. "We struggled with the Development Charges and a reserve fund has been built from them." Both the Mayor and Councilor Victoria Serda agreed that the increase, that is indexed automatically, should be implemented.

"If we don't increase them [charges], then taxes will have to go up and the people will then be supplementing development and it's wrong to take money out of the pockets of static or low income residents to keep dollars in the pockets of developers."

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