Guelph-Eramosa development charges increasing by up to 37%

 It appears developers wanting to set up shop in Guelph-Eramosa Township will soon be paying more to do so.

On Monday night, council held a public meeting to consider increasing its development charges to meet future population growth and infrastructure needs.

Development charges are per-unit fees paid by developers constructing new homes and non-residential buildings. They can be used by host municipalities to cover capital costs associated with projects ranging from parks and recreation facilities to roads and water and sewer services.

Gary Scandlan, of Watson and Associates Economists Ltd., the firm hired by Guelph-Eramosa to complete its development charges study, said township’s population is expected to grow by 1,093 over the next 10 years, requiring residential units to go up by 381.

Over the next 20 years, those figures are 2,471 and 860 respectively, Scandlan said.

He explained that to cover the increasing infrastructure needs to accommodate that growth (minus grants and other stipulations), the following changes are proposed:

– increasing the development charge for single and semi-detached homes by 37 per cent (from $5,184 to $7,082) in rural areas, and by 11% (from $18,690 to $20,818) in Rockwood;

– charges for two-plus bedroom apartment to increase by 37% (from $2,954 to $4,035) in rural areas and by 10% (from $10,781 to $11,861) in Rockwood;

– upping bachelor and one bedroom apartments by 35% (from $2,029 to $2,731) in rural areas, and by 8% (from $7,430 to $8,030) in Rockwood;

– increasing “other multiple” dwelling units 37% (from $3,803 to $5,191) in rural areas, and by 11% (from $13,791 to $15,258) in Rockwood; and

– non-residential will go from a single charge of $9.46 per square foot of floor space for buildings in Rockwood to $6.96/ft2 for Rockwood and $1.13/ft2  in rural areas.

Resident Perry Groskopf asked council why development charges could not be used to pay for the proposed $3.5- million Rockwood sewage storage tank.

Mayor Chris White replied a portion of the tank project will indeed be covered by development charges, but regulations dictate that existing users benefitting from the new infrastructure must also pay a portion.

Council received the development charges report for information (councillor Doug Breen was absent) and is expected to approve the new charges at its next meeting on Oct. 21.

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