Centre Wellington councillors ask for new categories for development charges to be investigated

Centre Wellington council has passed an updated development charges bylaw, but not all councillors are happy.

They asked for significant changes to sections of the bylaw for the next time it comes up for discussion.

If that happens, non-residential developers could face a whole new set of development charges that would factor in potential water use.

Most municipalities have two main charges: residential and commercial/industrial.

The July 23 meeting was the second and final public meeting to present and discuss the proposed development charges bylaw. The first was held May 22.

Council had specific questions regarding:

– average square feet per worker assumptions for restaurants and hotels; and

– differences between the township’s 2013 development charges study and the 2018 study.

Director of corporate services Dan Wilson noted the charges were developed using a process similar to those used by many municipalities across the province – covering infrastructure costs to deal with residential and employment growth.

Wilson pointed out the old bylaw was set to expire in October. He also noted  there are plans to reopen the development charges process in 16 to 18 months, once more township master plan materials are available.

“There are some concerns expressed by council, which can be included as part of that as well,” Wilson said.

“I do not consider this a final bylaw – but an interim step for a year-and-a half to undertake an update.”

Councillor Fred Morris said in light of previous discussions on whether the calculation formula is suitable, he proposed amending the bylaw and asking staff to establish several new categories in the next development charges studies.

Those categories would take into consideration the amount of overall use of water and wastewater – based on the potential number of customers, visitors, employees and on-site activities, Morris said.

Mayor Kelly Linton noted that in previous discussions with Gary Scandlan of Watson and Associates it was suggested that few municipalities split their development charges in this manner.

“It could put staff and council in a difficult position by adopting an approach not done anywhere else,” the mayor said.

The first recommendation before council was to adopt the background study as amended and hold no further public meetings.

Further it was moved that council adopt the development charges bylaw as amended.

It was then requested the motion include the recommendation that staff review and recommend new categories of development charges based on potential water use.

Councillor Steven VanLeeuwen asked if this amendment was asking staff to immediately create the new categories – or study them.

Linton clarified the amendment as written uses the word “establish” – “not study or look into.”

Councillor Dean Workman said when it comes to reviewing the development charges, he asked if it was possible to get another consulting firm’s input.

VanLeeuwen asked if he could suggest “an amendment to the amendment” and ask staff to investigate the potential for new categories.

That way, if the process became to onerous, staff could report to council as to the difficulties encountered or what steps would need to be taken to accomplish that.

Workman said he believes the priority should be about developments which would have high water use – such as hotels or casinos.

Council agreed to the amendment asking staff to investigate new categories for non-residential development charges based on water use and wastewater discharge.

Council then moved back  to the original resolution approving the development charges background study and the development charges bylaw as amended.

Workman asked if an investigation into new charges would apply to the current charges, or take effect the next time development charges are updated.

CAO Andy Goldie said data would have to be gathered to undertake a study of potential categories, otherwise the changes would not be defendable if challenged in court.

Morris noted that if council did not pass the development charges bylaw on July 23, there was not enough time to amend the bylaw prior to the October expiry date.

“If a bylaw like this expires, we would be in deep financial trouble,” he said.

He then asked if the bylaw could be re-activated after expiring.

Wilson said the township would have to go through the public process of establishing a new development charges study and bylaw.

He explained there would be a time between the expiry date and completion of the public process required to establish a new bylaw. During that time, the municipality could not impose development charges.

Councillor Don Fisher said if there is a gap when there are no development charges “it would be safe to say there would be a flood of building permit applications and the loss to this township would be enormous.”

Bylaw

The adoption of the development charges bylaw carried. The new charges took effect July 24.

The background study and two addendum reports can be found at centrewellington.ca.

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