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Levies on regional agenda
Thursday July 5 2007
- Brampton Guardian
Developers are crying foul over the region's plan to jack up development charges, arguing increasing levies could drive away business.
But there's a chance builders will get some relief as council considers the idea of keeping the rate as is for companies that have already submitted a building application with the municipality.
Continuing from where they left off at the last regional council meeting, councillors and members of the business community discussed Peel's proposal to boost levies on all residential and industrial projects.
Last month, municipal staff told councillors Peel will have to increase levies by 73 per cent and 89 per cent respectively in order to remain consistent with the rise in capital costs and other related expenses.
Phil King, president of real estate development firm Orlando Corp., warned regional councillors that adding to development charges will impact businesses and homeowners negatively.
"The magnitude of the proposed increase is significant. It will impact the affordability of housing, and it will create a serious impediment to our ability of attracting new industrial uses to this region," said King, speaking on behalf of various developers. "We firmly believe the significant increases in development charges, which are occurring across our region, will be counterproductive.
"We need to find different funding models for the provision of services going forward."
Development charges allow for the recovery of costs attributed to growth. These services include the installation of water, sanitary and storm sewer services and the construction of roads, hospitals and other facilities.
Municipal officials said there are a number of factors that make an increase in charges a priority, including provincial legislation that requires municipalities to revamp their approach to development.
At the current rate of growth, officials argue Peel stands to lose out on hundreds of millions of dollars if the Region sticks to current numbers.
King said developers favour a no development charge increase policy but argued at the very least Peel Region should be willing to make exceptions for companies.
King said developers want a fair transition provision that would, in addition to other considerations, grandfather applications already made at the municipal level.
"We only want to protect those applications that are legitimately in the system as of the date of the new bylaw and which by their very nature have made financial commitments to their clients," King said.
At the previous council meeting, Robert Milligan, president of the Brampton Downtown Development Corporation, lobbied council for a similar decision.
Mississauga Mayor Hazel McCallion said she does not oppose the idea of boosting development charges but wants staff to look closely at all aspects of the proposal before bringing it back to council.
McCallion advised the Region has to be aware it faces stiff competition from municipalities outside of the GTA for commercial industrial development and that providing an appropriate "transition formula" is an option Peel perhaps should consider seriously.
"I think we have to know all of the implications. We need to have a complete picture of what's happening in Brampton, Mississauga and Caledon in regard to the development applications in the mail. How we move ahead is very important."
"Anything that's in the hopper let's be fair," added Paul Palleschi, Regional councillor for Brampton Wards 2 and 6 agreeing the region should consider a transition agreement. "If there is anything being dealt with now it should be dealt with under the rules that are there today."
Palleschi asked staff to provide information on the financial impact of exempting companies that have already submitted applications to the municipality.
The current development charges bylaw runs its course in August of 2008.
Council is expected to make a decision on the bylaw by September.
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