Alexander Leach, Editor
Editor’s Note: This paper is owned by Joe Kowalski, and I’m disclosing that, and that article was written without input or direction from Mr. Kowalski.
The Township of Whitewater Region heard a report on Development Charges for 2021, presented by Planner Ivan Burton.
Representative Daryll Abbs presented the Watson and Associates Economists Limited Development Charges, as per the Development Charges act, for the council and public consideration.
Development Charges are collected “to recover the capital costs associated with residential and non-residential growth in municipalities.
He said the adjustments were calculated by determining the type of growth, and its location – what kinds of houses are built, the servicing needs.
He said due to a bill, the deductions have been reduced from their initial report.
“When we released the June 2020 background study, there was a mandatory 10% deduction for services. As you can see, we have removed this statutory deduction.”
He said exemptions included universities funded by the government, added apartments up to two units for existing dwellings, or one single-detached.
He outlined council’s discretionary exemptions, including reducing specific categories such as industrial or churches, with specific examples listed as places of worship, bona fide farm buildings not including the house,
“Any exemption that’s provided must be funded by other sources.” Abbs said.
“We’ve forecasted approximately 60 units per year, mostly low density.” He said. “we’ve forecasted some medium density, and we anticipate a few high-density developments as well.”
He said they were looking at a 10 year plan for most charges, with 20 years for services like wastewater that are harder to determine.
“We’re anticipating a net population growth of 757 people over ten years, with an increase of 363 units.” he said.
Projects included in the background study included Astrolabe Road, the Beachburg Water Tower, the Wastewater treatment plant in Cobden.
He said anticipated development charges were about $20,000 in urban areas and for other areas about $11,600.
He said they’d removed the mandatory deduction, and added statutory exemptions as per bills passed since their study.
The revised calculated rates were $20,613 for residential rates, with charges increasing about six hundred dollars.
The non-residential rate went up from $5.97 per square feet to $6.00.
He also presented options for the council to deduct the charges in order to lower the cost for developers.
“You can reduce all the charges by about fifty percent.” he said, reducing all costs by about half.
Another option Abbs gave was a seventy-five percent reduction of township wide services and a fifty percent reduction in urban area.
He also presented rates in neighboring municipalities, with Ottawa as the highest at $40,000, and Renfrew at $10,000.
For Commercial, the cost was roughly the middle, as well.
“You may want to consider which services are more important to fund.” Abbs said.
He said the next steps were for the Council to consider the by-law, for May 2021.
Ivan Burton said that CAO Trembley had met with developers regarding the charges.
“We did meet with several developers prior to this presentation” he said. “Generally that they felt that development charges are inevitable, and that that the 75 and 50 charges were most appropriate over a two-year term.”
“We are looking to bring another report on April 14th , seeking council’s direction, as to what the final by-law should read.”
Members of the public spoke, with Joe Kowalski speaking first.
“I think all of you realize by now that we are going through a once-in a century event right now.” he said. “At the turn of the century, we had another Coronavirus, the Spanish Flu. That ended, and we had the technology of the internal combustion engine. We find ourself at the turn of the century with another virus, and another new technology.”
“There are people who want out of the urban environment, and with digital technology, people can work remotely. I’m pro development, and think that will be key to the next election, and to encourage growth and development, I think we need to make it easier for people to develop something.”
He cited Airbnb as the largest hospitality company that ‘don’t own a single hotel’ and Uber as ‘the world’s biggest taxi company, despite owning no taxis.
Both companies rely on hosting and organizing private homes and vehicles for public short-stay residence and transportation, respectively.
Kowalski said that the development charges as they are currently punish developers.
“Everything about my business is easy, except getting a severance and development.” he said. “That’s because all restrictions are against development.”
He said that renting out extra space or personal resources to lodging was ‘the future of whitewater region’ and that the Township could encourage individuals to make use of their spare dwelling space.
“I would like to see hundreds and hundreds of mini-developers.” he said. “I think if people have an extra room, I think that’s going to be the transformational part of the Whitewater Region.” He said. “I would like to see a farmer with a nice piece of unproductive land, with a nice view, I would like to see it be easy for them.”
“I have lived here for almost fifty years, and i have not seen much development. I understand that a municipality is something that needs to raise funds, raise revenue for growth and development.”
Kowalski’s suggestion was to lower initial charges for development in favour of recouping costs after the development is complete.
“Put your money at the end, not at the beginning.” He said. “All the cost of a severance, the cost of development are all front loaded. Make it easy for the mom and pop, Uber and AirBnB type developer. I understand the municipality has to raise money, but don’t do it at the beginning, it is a mistake.”
Miss Laurie Caldwell also spoke, and also said that she felt that the bylaws were meant to “front load the developers’.
“They require great costs to develop. They cannot rid themselves of those cost.” She said. “The reason Whitewater region is so depressed for development is due to a lack of service.”
She said that she had a concern that the cost to modernize “has to be put back into the residents.”
“You need to micromanage your classifications, you need to take the age groups of their residents into play. You have the stats, you have the resources to determine that. You have the ability to say ‘okay, these residents, these retirees, the fixed incomes, and now we’re going to take their development charges, you can’t just stack those on top of them.”
She said she worries that current residents will be outcompeted by those moving from cities looking for remote work.
“You are going to push these people out. The people working remotely coming out from Ottawa, they are going to have better money and better pensions, they can pick up the costs for development, the residents will not.”
“There needs to be a reclassification, so that each member of the region can thrive.”
Miss Dawn Burns also spoke to criticize the timing of the report.
“I would like to suggest that this is a very poor time to suggest this. Supply and demand for materials are in high demand. I don’t know why you’d want to propose this. It looks like it
She asked about the property taxes on existing developments and why the development charges are added to it.
“I think this is a very poor time to even be discussing this.”
Councillor Olmsteads agreed that “We are in a real abnormal time. Everything’s On allocation right now. Forget what you’re gonna buy, you’re gonna get what they have to give.”
Councillor Olmstead runs Olmstead’s Home Hardware in Cobden, a building supply store.
“The timing is not really that great.” Councillor McLaughlin said. “I think we need to look at it, and move forward. I’m not that positive on the timing.”
“I’d like to think about this a little bit.” he said.
Councillor Jackson said that “It’s not the developers who are going to be paying these development charges, it’s the people when they take out the building permit. The developers might have that cost, but when they sell it they pass it on to the new homeowner.”
“We have to be able to maintain those roads the developer is responsible for. We have to snowplow, we have to maintain the streetlights. It also puts a burden on our fire services.” she said
“I’m not sure the ones that commented truly understand that there is an impact when there’s development. A lot of municipalities have had development charges for many years, and it has not hindered development at all. Arnprior has had development charges, and they are booming. They didn’t reduce their development charges.”
“Nobody who is currently living here, they’re not paying development houses if it’s a house that’s already built. I don’t believe there’s any development charges unless they’re adding on in a large scale.”
“It’s not going to put people out of their home. It’s going to help pay for the services that we already have. It’s only for new developments and not previous.”
“Is there any good time to increase development charges? No probably not. But we have a new sewage treatment plant that needs paying off. We’re just asking the new homes being development to put some money forward.”
Councillor Nicholson suggested the AMOS position on DC charges be ‘disseminated’ among the Councillors to show how the development charges ‘reduce development’.
“I think it’s inevitable that we’re going to have to do it” said Reeve Regier, also agreeing that it’s a poor time to do, but needed to be done.
The final decision is slated to be decided in the first week of May.
