Region approves bylaw revising York's development charges

York Regional council recently approved enactment of a bylaw to establish revised development charges (DCs) for construction of new residential and industrial-commercialinstitutional properties.

The DC bylaw, which came into effect June 18 and replaced a previous one, will help the Region recover a greater share of the costs associated with growthrelated services and infrastructure.

Development charges are fees charged to developers to pay for additional or expanded Regional capital programs to service new growth, such as roads, transit, water and sewage servicing and the pending TTC subway expansion into York.

"Development charges are an important source of funding for York Region's growth-related capital programs," said York Chairman Bill Fisch. "This new bylaw will place a greater onus on the development industry for the total costs associated with growth-related capital and infrastructure."

"The new Development Charge bylaw provides both a fair and equitable solution to our capital funding needs," said Newmarket Mayor Tony Van Bynen, chair of the finance and administration committee of Regional council. "We have consulted extensively with the development industry and related associations to develop a bylaw that will better ensure existing York Region taxpayers no longer bear as great a burden of growth costs."

A public meeting was held April 5, where committee members heard several deputations from the development industry. The following key issues formed part of the discussions: Population and employment forecasts used in preparation of the draft background study; timing of the rate increases, including transition, phase-in options and methodology issues; impact of the subway; and competitiveness versus other municipalities.

Full cost recovery rates under the newly enacted bylaw (which include the TTC subway expansion), broken down by property class are as follows: • Single and semi-detached family dwelling - $22,157 (an increase of $5,908). • Multiple unit residential dwelling - $18,317 (an increase of $4,471). • Apartment (two or more bedrooms) - $13,792 (an increase of $3,635). • Apartments (less than two bedrooms) - $8,917 (an increase of $2,457). • Industrial - office - institutional - $10.93 per square foot of gross floor area (an increase of $6.96). • Retail - $21.58 per square foot of gross floor area (an increase of $13.69).

Full cost recovery of the revised development charge amounts will be phased in to help accommodate building applications already being processed. Cost recovery phase-in periods broken down by property class are as follows:

Residential

(all types) • 25 per cent of rate and two-thirds of subway portion, effective June 18. • Full cost recovery rate Sept. 18 for singles, semis and multiples. • Full cost recovery rate Dec. 18 for apartments.

Industrial, Office,

Institutional • 10 per cent of rate and two-thirds of subway portion, effective June 18. • Full cost recovery rate phased in over three years.

Retail • 25 per cent of rate and two-thirds of subway portion, effective June 18. • Full cost recovery rates phased in over one year.

The new bylaw took effect June 18 and will expire June 17, 2012.