Industrial Competitiveness

NRU
May 29, 2018
Rob Jowett

Hamilton council is on track to lowering the city’s industrial development charges in order to increase its competitiveness with other municipalities.

A recent staff review found that Hamilton has the highest industrial development charges both among GTA municipalities and westward into southern Ontario. Under the current by-law, Hamilton’s average rate for industrial properties is $12.16/ft2. The next highest rates are those of Halton Region and the Town of Milton, which max out at 10.26/ft2.

Hamilton capital and development financing manager Joe Spiler told NRU that with the cost of the land, property taxes, and development charges, industrial development in Hamilton is the most expensive in southern Ontario.

“We’re at the higher end of the [development charges] scale with regards to the municipalities that we compete with,” Spiler says. “We felt that we had to basically correct that in order to stay competitive.”

The amendment to the city’s development charges by-law, which was adopted by council at its May 23 meeting, eliminates restrictions on development charge exemptions with respect to the expansion of existing industrial buildings. Further, on subsequent expansions, it permits applicants to calculate the building size including the previous expansion and places no restrictions on the timing of further expansions. Currently, to apply for a further exemption owners have to wait for two subsequent development charge by-laws to be enacted.

“The city wanted to be more strategic in terms of… giving exemptions,” says Spiler. “Our hope is that [with] the overall cost structure for industrial development in the City of Hamilton being more competitive, this will allow industry to remain in the City of Hamilton rather than expand elsewhere.”

Following a 60-day public consultation period, the statutory public meeting has been scheduled for the July 11 meeting of the audit, finance and administration committee.