‘Waiting for the other shoe to drop’: How Bill 23 impacts Georgina

Million-dollar costs to the town, tax increases, funding shortfall for the MURC

yorkregion.com
May 26, 2023

The devil is in the details. Unfortunately, many of the details of the province’s Build More Homes Faster Act (Bill 23) are still unknown.

During a recent council meeting, Georgina planning policy manager Alan Drozd provided an overview of the “profound” impacts Bill 23 would have on the town’s future planning, development and financing.

Bill 23, which was approved in the fall, created a sweep of planning policy changes.

“(This) is still a moving target,” Drozd said. “We’re waiting for the other shoe to drop. It’s very, very profound in its effect. Eventually, many responsibilities, financial and otherwise, will download to municipalities.”

The town created a webpage listing the impacts of Bill 23.

Here’s a look at how Bill 23 that will impact Georgina residents, now and in the future.

DEVELOPMENT CHARGES:

While Bill 23 makes changes to how the town can collect development charges---fees used to pay for services such as roads and water---Georgina’s development charges bylaw is fairly recent, buying the town time before it has to implement provincial changes.

“We’re still collecting development charges and will continue to do so until we know more and have to update the bylaw,” said Mayor Margaret Quirk.

“There’s so much unknown.”

Development studies such as stormwater, fire or transportation master plans, planning studies and park and recreation studies as well as land costs will no longer be covered by development fees collected by the town.

Georgina could be on the hook for about $720,000 per year, not including specific area development or affordable housing studies, costing the town between $7.4 million and $8.2 million over a 10-year period.

That means a 2.5 to 3.5 per cent base tax increase just to cover those costs.

MULTI-USE RECREATION COMPLEX (MURC) FUNDING:

About two-thirds complete, the MURC is scheduled to open early 2024.

As a result of Bill 23 changes, there could be a $10- to $15-million funding shortfall for the MURC---20 to 30 per cent of the $50.2 million project.

Town staff are working toward a phased-in funding plan with new funding sources.

RENTAL UNITS:

Bill 23 allows for up to three units---one primary residence and two rental units---on the same property within the town’s urban areas where municipal and water services already exist.

Parking, demand on the town’s infrastructure and other municipal services such as recreational programs, and water and wastewater servicing capacities are among the other challenges.

AFFORDABLE HOUSING:

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Under Bill 23, affordable housing is described as less than 80 per cent of the average purchase price of an area and is exempt from development charges.

But what constitutes an area? A subdivision, neighbourhood, community, town or region?

There are concerns Georgina’s less expensive home prices---with an average price of about $861,000 in the last quarter of 2022---puts it at a disadvantage compared to pricier areas.

The average price across York Region during the same period was about $1.36 million.

This means developers could claim most houses they build in Georgina would qualify as affordable housing and exempt them from paying development charges.

For more information, visit georgina.ca.