Council here appears ready to pass a development charges bylaw that would protect farmland and encourage industrial and commercial projects in urban areas.
Council has been wrestling with the issue for some time.
Councillor Bruce Whale said he would like to consider phasing in those charges. There currently are no fees at all for commercial and industrial uses.
“We can always go back and look at it – if development land becomes scarce,” he said.
For commercial and industrial uses, council is considering a fee of $1.40 per square foot in rural areas, and no fee at all in the urban centres.
Currently, residential development charges fees are $2,202 for non-serviced lots, with the proposed increase at $3,767; and $6,259 for serviced lots, with a proposed decrease to $3,224.
Chief Administrative Officer and Clerk Patty Sinnamon explained in an interview the serviced lots include sewer and water, which are paid for by the users.
Development charges are a tool provided by the provincial government to permit municipalities to charge people moving into the community or expanding within it to recoup the costs of services. That way, they pay their fair share of such things as arenas, roads and libraries, to which citizens have already contributed.
Treasurer Mike Givens told council the bylaw has to be redone every five years, and the proposal to exempt urban lands is “a tool to deter commercial and industrial in the rural areas.”
Municipalities everywhere have wrestled with the development charges for commercial and industrial buildings. Some councillors fear such fees will deter that type of growth. The problem they face is, if commercial and industrial businesses do not pay development charges, residential taxpayers must pick up the slack.
Mayor John Green said municipalities make varied decisions on the charges, and, “You’ll never match other municipalities.”
Givens agreed. He said for commercial and industrial fees, 70 per cent of the workers at those places live in the municipality, which also provides benefits. “It’s all over the map,” he added.
Whale said council is encouraging business and industry that is dry or uses small amounts of water. He wondered if someone with a high water need wants to build in the township’s current holding of five acres of industrial land, would the township recoup its costs.
Sinnamon said, “At this point, no.” Green said only if Mapleton installs water meters.
Whale argued that $1.40 per square foot is “a big jump if your used to [paying] nothing.”
Green replied at that price, “We’re still at the low end.”
But Whale said in Minto the price is exactly half what Mapleton is proposing for rural commercial and industrial.
“You don’t want to be too far out of whack,” compared to neighbours, he said.
Green said at least two councillors appeared to favour the proposal. Whale said he would rather phase in the cost, but, “if that’s the right number … It’s not insignificant if it’s a bigger project.”
Councillor Dennis Craven asked if he would favour $1.
Whale said, “It’s picking a number. He asked if it would be effective the day it was passed. Green said Minto passed its charges as of Jan. 1 of this year.
Givens said the development charges have been advertised, and when it comes to obtaining permits, “I don’t see a lot of people running through the door” to get them.
Chief Building Official Jim Baker pointed out that if someone goes to any community, he will find such charges in place.
Councillor Mike Downey said he has no problem with $1.40 per square foot, but he does not like “the rural subsidizing the urban.”
Green agreed that is “a difficult discussion.”
Givens added to date, there is nothing included in the bylaw that would exempt such things as churches and other institutional users like schools, plus not-for-profit groups and service clubs. He said he has seen such exemptions in other bylaws.
Whale suggested they be exempted in urban areas, but not rural areas. Green again agreed such a decision is “a tough one.” Whale asked what Wellington County exempts. Green said it has full charges for everything.
Councillor Jim Currie asked the fees for a golf course. Sinnamon said that would apply only to a clubhouse and maintenance buildings.
Council then received the report. Sinnamon said she expects it to come to council in the form of a bylaw on Sept. 22.
