New Tec agrees to reduce residential DCs by about 10 per cent

New Tecumseth Free Press Online

New Tecumseth’s deal to settle an Ontario Municipal Board (OMB) appeal of its Development Charges (DCs) will reduce the rates across all categories, according to the Order issued on November 27.

The agreement requires New Tecumseth to reduce its per unit DCs on singles and semi detached units from $38,409 to $34,574, a drop of $3,560; DCs for townhouses go from $35,656 to $32,096, down $3,560. DCs for apartments (2+ bedrooms) will be reduced by $2,693; and a reduction of $1,751 per bachelor or one bedroom apartment unit.

As reported here first last week, the nine development groups, listed below, appealed the Town’s 2013 DC bylaw, and last week agreed to end the appeal during a Nov. 24th teleconference settlement hearing.

Ballymore Developments (Tottenham) Corp.

BG Properties Inc.

LRG Tottenham Inc.

Beeton 3 Limited Partnership

Copper Glen Estates Inc.

N.H.D. Developments Limited

Devonleigh Homes Inc.

Walton Alliston Development

Alliston Developments Limited

“The Appellants each filed appeals of the By-law generally on the basis that the increases in the residential and non-residential development charges have not been justified, and the costs for hard services are inflated.”

Link to OMB approved revised DC rates:

The revised rates also affect the commercial/industrial charges. Commercial DCs will be reduced by $28.46 per sq. m of gross floor space; and the industrial rate goes from $140.72 to $123.65, per sq. m, a drop of $17.07. Link to the revised charges:

Town solicitor Jay Feehely represented the Town to finalize the appeals, along with Craig Binning of Hemson Consulting, whose DC Background Study, set the original fee schedule.

”Via affidavit evidence, Mr. Binning confirmed that numerous changes, including the nature, timing and costs of development-related projects, have been made to various components of the Study (May 29, 2013). The full extent of these changes are captured in the revised Study (June 18, 2014), also provided to the Board,” according to the OMB ruling.

During the appeal period, DCs were still required to be paid at the full rate, at the prescribed period. However, short of a clause that’s not referenced, the Town will be have to rebate the difference paid, plus an established interest rate. How much that will cost the Town, including foregone revenues, and what projects that were initially included as DC eligible, have not been made public. It’s expected a report to council, which will be sworn in tonight, will be forthcoming in the next couple weeks.