Council approves updated DC rate schedule
Effective Sept. 7th, development charges (DCs) in New Tecumseth will be $38,409 per detached and semi-detached housing unit built on full urban services in New Tecumseth. That’s an increase of $6,723 from the expiring rate schedule. DCs are payable when a building permit is issued, and whose costs are generally passed on to the new home buyer. The roads, water and wastewater component account for $30,658 of the total, while the $7,751 will cover the “soft services” – library, fire, parks and recreation, public works, and general government.
DCs for rows and other multiple units on full services is $35,656; apartments over two bedrooms will cost $26,972 in DCs, while bachelor or one bedroom apartment rate will be $17,531.
Commercial DC rate will be $234.53 per sq. metre of gross floor area, while the industrial rate is set at $140.72per sq. metre of gross floor area. There are rate discounts for commercial and industrial expansion, as well as development in the downtown cores.
The background study projects the next 10 years of growth related capital programs for general services – library, fire rescue, parks and recreation, police services, public works, and general government – to cost $64 million, of which $24.8 million can be recovered through DCs. And Engineered services – roads, water, wastewater – capital program over 10 years will cost about $425 million, of which $333 million can be recovered from DCs. In both cases, the shortfall would have to be covered by other means – taxation and or user fees.
DCs are appealable to the OMB.
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