Latest news with #developmentcharges
National Post
24-07-2025
- Business
- National Post
Region of Peel cuts development charges by 50 per cent
Co-ordinated actions such as those from the Region of Peel will spur the construction of not only more homes but also much-needed purpose-built rentals and commercial buildings in the region. Photo by Supplied Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page. In a bold and commendable move, the Region of Peel has taken decisive action to address one of the most pressing challenges facing Ontario's housing market: the cost to build crisis. In late June, Peel Regional Council voted to reduce residential development charges (DCs) by 50 per cent, a decision that will significantly improve the financial viability of new home construction in the region. The Building Industry and Land Development Association (BILD) applauds the leadership of Peel Regional Chair Nando Iannicca, Mississauga Mayor Carolyn Parrish, and the entire Peel Regional Council. THIS CONTENT IS RESERVED FOR SUBSCRIBERS Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. SUBSCRIBE FOR MORE ARTICLES Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors This reduction, effective from Jan. 29, 2025 through to Nov. 13, 2026, is a significant and material shift. It tackles head-on the affordability issues that have paralyzed new home construction across the Greater Toronto Area (GTA). For too long, soaring development charges, escalating construction and financing costs, and inflationary pressures have made new projects financially unfeasible. Sales have slumped, housing starts have dwindled, and the long-term pipeline of homes has come under threat. Everyone needs to do their part to address this challenge, and we are seeing price adjustment by industry to reflect the new market reality. Peel's action represents another critical step to tackle the current cost to build challenges that are limiting the ability of those seeking to live in the GTA to buy new homes. Credit is due to the Minister of Municipal Affairs and Housing, the Honourable Rob Flack, for his which made this reduction possible. The extension of the program beyond October 2025 will depend on a further financial agreement with the province – and one we strongly hope to see realized. Additionally, Peel's decision to consult with the Ministry on a proposed utility model for water and wastewater reinforces their commitment to systemic, long-term solutions for infrastructure and housing. Importantly, this decision by Peel mirrors the leadership demonstrated by the City of Mississauga earlier this year. In January, Mayor Parrish and Mississauga Council made a firm commitment to significantly lower municipally added costs on new homes. That decision will help spark momentum across the region and has clearly demonstrated what municipal leadership in a housing crisis looks like. Coordinated actions such as these will spur the construction of not only more homes but also much-needed purpose-built rentals and commercial buildings in the region. This will benefit families, workers, and businesses looking to call Peel home – a win-win for economic growth and community development. We now call on other municipalities across the GTA to take similar action. The challenges are well understood. New home owners need bold action to lower the cost to build, to facilitate the building of new homes and to deliver the housing the communities in the GTA so urgently need. Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA. For the latest industry news and new home data, visit .
CTV News
24-06-2025
- Business
- CTV News
Waterloo Region and Amazon developer reach agreement on $13.7M discount dispute
The Region of Waterloo has reached a settlement with the developer of Amazon's fulfillment centre in Cambridge after the project was mistakenly given a $13.7 million discount. The region said both parties agreed to resolve the matter to 'avoid the costs of further litigation.' As part of the agreement, the developer will pay more than 75 per cent of the $13,719,572 requested by the region. Amazon Fulfillment centre Blair A sign for the Amazon Fulfillment centre on Old Mill Road in Blair on September 6, 2024. (Dan Lauckner/CTV News) 'The region is pleased that the developer will pay the majority of the development charges,' Coun. Michael Harris, chair of the Region's Strategic Planning and Budget Committee, said in a media release. 'This is a good deal for residents and for the Region of Waterloo. It will ensure additional funding for major infrastructure, helping us achieve our strategic objectives as the region continues to grow.' The region also withdrew its motion for leave to appeal with the Ontario Divisional Court. Amazon fulfillment centre Cambridge The Amazon fulfillment centre in Cambridge, Ont. on Nov. 13, 2024. (Heather Senoran/CTV News) History of the dispute The discrepancy dated back to 2022. The Region of Waterloo collects a development charge on new construction projects to help cover the costs of necessary infrastructure upgrades. Warehouses, however, get a 60 per cent discount. In July 2022, the developer was quoted $9,082,948.59 in development charges for the property at 140 Old Mill Road in Blair. That amount was paid to the region on Aug. 18, 2022. amazon warehouse The warehouse is being built at 140 Old Mill Road, Cambridge. (Dave Pettitt/CTV Kitchener) The region later claimed they were not aware an Amazon fulfillment centre would be built there at the time the discounted rate was calculated. They also told the Ontario Land Tribunal it did not qualify as an 'industrial building' as defined in the regional bylaw. A Notice of Re-assessment for the additional $13,719,572 was sent out on Nov. 8, 2022. Amazon fulfillment centre Cambridge The Amazon fulfillment centre in Cambridge, Ont. on Nov. 13, 2024. (Heather Senoran/CTV News) In response, the developer went to the Ontario Land Tribunal. They argued they should not have to pay the extra money as the development charge had already been assessed, issued and paid, and the building permit was approved. The tribunal ended up siding with the developer. 'The tribunal finds the [Development Charge Act] or the [Development Charge] Bylaw does not permit a municipality to impose an additional development charge, or a corrected amount, after a development charge has already been assessed, collected, and certified, and a building permit issued for the development,' they stated in their decision.
CTV News
02-06-2025
- Business
- CTV News
City of Guelph rules developer working on student housing project must pay charges
A building at 601 Scottsdale Drive in Guelph, Ont. was photographed on May 8, 2025. (Jeff Pickel/CTV News) Guelph City Council is standing firm on their decision that a developer working on a student housing project in the city must pay development charges. Forum Asset Management is on phase two of the project at 601 Scottdale Drive in Guelph. During phase one, the former Holiday Inn hotel was converted into 177 units for student housing. The land is owned by the University of Guelph and the lease stipulates that the rooms are for university students, but the buildings will not be owned or operated by the school. According to both the City of Guelph and the developer, no development charges were levied during the first phase of the project. The city, however, took a different approach for phase two. They decided the developer would be on the hook for $15 million in development charges going forward. Earlier this month, the developer said that would make the project 'economically unviable' without raising costs for students and delay the start of construction. In a news release on Friday, the city doubled down on its decision. They said council found the developer was responsible for those development charges. The release comes after council reviewed a complaint by Forum Asset Management. They ultimately dismissed the complaint and decided the rental units were not exempt from development charges. An official Notice of Decision was sent to Forum on Thursday. 'Forum Asset Management can still get a full exemption from development charges if they rent the units at, or below, the province's affordable rental threshold for Guelph for 25 years,' the release from the city stated. The developer now has until July 8 to file an appeal with the Ontario Land Tribunal. CTV News reached out to Forum for comment but they have not yet responded to the request.
CBC
23-05-2025
- Business
- CBC
How lowering costs for developers could save you money on your next home
Ontario wants to change the rules around development charges, but will it help Toronto's housing crisis? CBC's Chris Glover digs into the data — and speaks to developers and officials to find out.
National Post
15-05-2025
- Business
- National Post
Who pays more for infrastructure and services in the GTA — the new home buyer or average ratepayer?
Throughout the federal election campaign — and as I have written about in previous columns, the negative impacts of sky-high development charges (DCs) on housing supply and affordability in the GTA featured prominently. In our region, these fees, which are rolled into the cost of new homes and passed on to new home buyers, are not just the highest in Canada, but in North America. Article content Article content Article content As municipalities grow, there is no denying the need for more infrastructure, however, it is well past time for a meaningful discussion on who pays for what and to find alternative ways to fund growth-related costs. Only so much can be borne by new home buyers and with the current DC rates in the GTA, they are shouldering a disproportionate amount. Article content The development charge system in Ontario has existed for more than 30 years. DCs are levied by municipalities on all types of development, including new homes, to offset the cost of roads, transit, emergency, water, sewer, and other services. What began as a small charge in the late 1990s has ballooned to more than $125,000 on a new single-family home in many GTA municipalities. DCs, by design, serve a useful purpose in establishing housing-supportive infrastructure, but now too much cost is being shifted to the new home buyer, thereby undermining affordability, and distorting the type and supply of new housing coming to market. Article content To illustrate who pays for what and how much, I would like to compare what an average tax ratepayer contributed to on an annual basis to what the buyer of a new, single-family home in the City of Toronto paid for based on the 2024 budget and current DC rates. Of note, once a new home is occupied, the new home buyer joins the ranks of the ratepayer and continues contributing through annual property taxes. Article content Article content One caveat: this is not intended to single out the City of Toronto, as similar patterns can be found in municipalities across the GTA. The city is referenced here solely for its accessible and transparent information, which deserves praise. Also of note is the City of Toronto's recent decision to forgo annual indexing (increasing) of its DCs, which is also a measure that is appreciated. Article content In the City of Toronto, based on the 2024 budget, property taxes on the average home were $3,904. Since the property average includes both houses and apartments, to allow for a more complete apples to apples comparison, we will also blend the DC rates. In Toronto, a new, single-family home draws $137,846 in DCs, a two-bedroom apartment: $80,690, and a one-bedroom and bachelor: $52,676. This yields an average DC based on a blended product type of $90,404. Article content In terms of public transportation, a new home buyer (based on the blended product type) paid $2,875 toward the Spadina subway extension — regardless of the home's proximity to the transit corridor and whether its owner used that line. Additionally, the average home buyer paid another $34,877 for public transit. Conversely, the average ratepayer paid $542 toward transit. The $34,877 is equivalent to what a typical ratepayer would pay in 64 years through taxes; equivalent to 10,411 Toronto Transit Commission fares of $3.35 or equal to riding the TTC once a day for 28.5 years.
