Development charges set for increase: Newmarket

Yorkregion.com
July 25, 2014
By Chris Simon

Newmarket’s development charges will be rising dramatically over the next few months.

Council approved a set of new townwide rates during a meeting Monday.

Under the bylaw, rates will increase from the current $14,974 per single residential unit to $19,956. Charges for semi-detached homes ($11,877 to $19,956), rows and other multiple units ($10,817 to $15,830) and large apartments ($8,314 to $12,357) will all be bumped.

An increase for small apartments ($5,091 to $10,031) is also planned. Meanwhile, a hike in commercial and industrial rates was approved - the town will charge $52.83 per square metre, up from the current $19.70.

“The increase relates to the substantial investment we’re going to have to make in infrastructure,” Mayor Tony Van Bynen said. “If that infrastructure is required as a result of new development, it’s only fair to taxpayers that those people creating the development are contributing to those costs. If the industry doesn’t pay for it, that becomes part of our general tax rate. That wouldn’t be fair to local taxpayers.”

However, it’s not all bad news for the development industry. There will be a transitional rate for building permits issued by May 29, 2015 - $15,472 for single units, $12,685 for semis, $11,318 for rows and multiples, and $8,719 for large and $5,585 for small apartments - contained within the bylaw. The interim commercial and industrial rate will be $23.01 per square metre.

By including the transition rate, the town could lose about $1.5 million in development charge revenue, corporate services commissioner Anita Moore said.

Rates are charged on all new residential, commercial and industrial development within the municipality. They are typically used to cover growth-related infrastructure costs incurred by the municipality, such as libraries, fire services, fleet, recreation facilities and roads.