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8. Owen Sound has eliminated development charges for larger housing and retail projects, money that is collected in other Ontario cities to cover the costs of road, water and sewage infrastructure. Is this a necessary development incentive, or should it be studied with a view to ending such a worthless giveaway?

 

MAYOR

 

Ian Boddy

Waiving residential development charges has been a very successful incentive. Development charges were waived on residential builds only, and not retail or commercial projects. In 2014 the City had one new house completed. In 2017 ninety-one permits for dwellings were issued. Total construction values increased 220% in 2017. The new tax assessment generated can be used to offset the waived charges, pay for infrastructure renewal, as well as help reduce tax increases.

There is a specific area development charge in place for the Sydenham Heights area to repay the City for the costs of the services installed in Sydenham Heights. Opening up those lands for development are vital to our ability to attract labour, jobs and more assessment.

 

Ray Botten

This question at this time I cannot answer. I need to research this concern much more extensively. I will answer when I feel it is something I can knowledgably and personally contribute intelligibly.

 

DEPUTY MAYOR

 

Brian O'Leary

I fully supported a council initiative to waive residential development charges when this council updated the DC study in 2015. This has had tremendous results, with 91 new residential units in 2017 and a $415,000.00 increase in the assessment base, which lowers taxes for everyone! Development Charges were not waived for commercial, or other types of development. When council updates the bylaw in 2020, I will want to fully examine if we still need this incentive. We are still collecting development charges for all other forms of development. Our asset management plan helps prioritize capital spending, including water sewer and transportation. We have tax supported capital spending and have maximized support from Federal and Provincial partners through a variety of grants like OCIF and also gas tax and grants that supported the WWTP upgrade and the 10th street bridge.

 

Paul Patille

 

This has been a give away with no returns and did not provide incentives as intended.

 

COUNCILLORS

 

Bill Twaddle

New development creates growth, which in turn puts pressure on existing infrastructure. Development charges are intended to help cover the growth-related cost of future infrastructure improvements and expansions. Eliminating development charges just transfers the financial responsibility to the tax base and new development receives the benefit by not paying its share. Eliminating development charges is not the answer.

 

Riel Warrilow

I'd be interested to know what the value of such an incentive is before making changes.

 

Jacquie Furtner

I believe that we should first look at innovative ways to develop empty lots and buildings that already exist within the city limits that currently have this infrastructure before looking at extending. I am not sure what the impact of reinstating this charge would be on development, but I would be interested to see what the cost to the city is over the long run. Do the taxes from these new developments cover the cost of maintenance and repair over the long run to the infrastructure? I believe it should be fiscally sustainable.

 

Denae Moores

The decision to waive development fees I'm certain was not at the time viewed as a worthless give-away. I think that it is fair to say that those who supported the freeze expected an outcome that they believed was in the best interest of the city. As a councillor I may make a decision that does not meet your favour, but it is my hope that you would come to understand that my interests are those of yours, but maybe with a different perspective.

But yes, the process should be reviewed and always through the lens of what is best for the City at that time. Waiving development fees denies the City some revenues. At the same time, residents of this community have access to quality work, building the homes of their neighbours. The incentives should end when that balance is struck.

 

John Tamming

Generally, I am opposed to worthless giveaways (your query really does take leading questions to a new level!). To the extent they still exist, we should probably phase them out.

 

Marion Koepke

I do not believe that elimination of the development charge to this point has been a worthless giveaway. We have definitely seen some growth, even to the point of a further reduction in the property tax percentage. However, I do believe that we need to revisit the development charges reserve account to determine if continuation of this relief is in the best interest of the City.

 

Gail McCartney

This question made me smile. lt seems to reveal your groups opinion of this incentive? I am for incentives that work to increase development. I don't think this has been successful in that it seems of benefit to the few and has not helped address the housing problems we face. I think this needs to be re-worked with an eye to projects that benefit the community as a whole a little better.

 

Travis Dodd

In 2014 when this Council was first elected there was a feeling within the community that Owen Sound was not a developer friendly City and it was apparent by the number of new homes that were being built. I supported the development charge holiday to help entice builders to build homes in the infill locations throughout the City. No new roads, water and/or sewage infrastructure was needed for infill construction. Area specific regions like the Sydenham Heights (across from the Hospital) have still been required to contribute to development charges as these new services will be required throughout that new construction area.

Retail development was not included in the development charge holiday and has contributed to the development charges.

Owen Sound is in need of housing. Anything we can do as a City to help our residents fulfill this need I see as a positive, not a 'worthless giveaway'.

 

Brock Hamley

In other parts of the province DCs average $50,000. Developers pass this cost onto the home buyers inflating the cost of a new home. One of the things that is attractive about Owen Sound is the real estate prices. If we are to attract new development and grow our tax base, the cost of a new build needs to remain competitive. Eliminating DCs accomplishes this.

 

Steven Hencze

Studied further

 

Richard Thomas

The development charge holiday was implemented in 2015 to stimulate new housing growth in Owen Sound. 10 residential building permits were issued in 2014; 91 permits, the highest number in 27 years, were issued in 2017. I would submit that the DC holiday is having the desired effect. Rather than a 'worthless giveaway' I view this as a purposeful investment in our future.

When council implemented the holiday, a companion motion was passed:

"THAT during the period of the Residential Development Charge holiday (2015-2016), municipal tax revenue from new construction be diverted to a capital reserve until such time as lost development charge revenue for hard services is recovered."

In essence, we delayed the effect of the new properties on the tax roll until the money that would have been collected for development charges was replaced. Therefore, the development charge account remains exactly as it would have been without the DC holiday, and the money in it continues to support growth oriented expenses for the City.

Retail development was not included in the DC holiday.

We are in desperate need of new housing in Owen Sound. If elected, I will be in favour of continuing the DC holiday. Owen Sound needs housing stock, and the DC holiday (along with the extension of services to Sydenham Heights) has created the environment in which development can flourish.

 

Carol Merton

The current holiday on development charges requires evaluation to determine its effectiveness, not just on the number of houses built but on the cost to taxpayers and the benefits to the community. We need answers about what Owen Sound gained or lost by the development charge holiday. Do we need other development incentives intended to respond to our local housing needs?

 

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