City Council will make a final decision on the development charge
increases at the June 10, 2014 Council meeting as a result of the debate
at last night's meeting. Your feedback on the following would be
appreciated since the whole development charge issue is likely to come
back to the table during the first term of the new Council in order to
stimulate growth and development of both our residential and commercial
sectors.
City staff initially brought five options to
council, but the only one accepted was to Phase in proposed rates over
three years – on July 10, July 1, 2015 and July 1, 2016. Phase in
semi-detached dwelling rate change over three years..
Then, councillors presented another five options
and accepted the following four:
1. Freeze DCs for one year and phase them in over
years two to five. Re-evaluate the semi-detached rate to fall between
the single-family and multiple rate.
2. a) Get a report on when to collect development
charges (currently they're collected before building permits are issued;
Coun. Jacques Barbeau suggested collecting them at the occupancy stage).
b)
Semi-detached homes already in the planning stage be grandfathered at
the current semi-detached rates..
c) Freeze
DCs for the first two years, phase them in over years three to five.
3. Freeze
DCs for the first year, phase them in from years two to four..
4. Exempt
the Flour Mill BIA, as well as BIAs created over the next five years,
from being charged DCs.
City Treasurer Lorella Hayes warned Councillors
that if development charges are frozen the difference will have to be
made up in other ways – likely via property taxes or water and
wastewater rates.
However, there would be no need for any increase in
development charges if City Council examined its priority projects and
cut back on any of them that may no longer financially viable, such as
the Maley Drive Extension and some of the other more aggressive projects
on the books. Also, scaling back on some of the more enhances projects
would lower the projected need for development charges. So this is not a
choice of charging new development or current residents. There is no
need for any additional charges to be incurred if City Staff is told to
go back to the drawing board and "sharpen their pencils" to come up with
new plans.
Right now, the fact that development charges are
collected when building permits are issues is a deterrent to builders
beginning construction of a new home prior to pre-selling the home. It
also means that home buyers may be strapped to pay for the development
charge fee since their construction mortgage is based on the progression
of the construction.
Once again,
while this development charge issue has been discussed for a long time,
allowing two weeks for City Councillors to wade through the mountain of
information in order to make a decision that is going to have an effect
on residential and commercial development over the next ten years may
not be enough time.
http://www.thesudburystar.com/2014/05/28/sudbury-councillors-sort-through-fee-structure
