Builders of new developments in the downtown core could see an old development fee reinstated as early as July 2009.
For at least a decade, Centretown builders have been exempt from paying a development fee of between roughly $2,400 and $20,000 per residential unit, depending on size and location, says Coun. Diane Holmes.
Originally, the city waived the fee to attract more development to the downtown core, a strategy that is no longer needed, says Holmes, as more people want to live downtown due in large part to the proximity to work and rising gas prices.
The development charge goes under review every five years and the city staff recommended against upholding the exemption last time, says Holmes. She originally fought to keep the waiver, and says although it was necessary, it no longer is.
However, Gerry LePage, executive director of the Bank Street Promenade Business Improvement Association, says this could have a detrimental effect on the city core.
"I'm surprised Holmes is leading this charge," says LePage.
He says that the fee was originally waived when the city realized it had lost 21 per cent of the population in the downtown area since 1974. The exemption has done wonders to help the community bounce back and LePage says thousands of development have benefited from not paying the fee, which in turn benefited the city.
"What they forfeited in the development charge, they made up in property tax," says LePage. He adds that the exemption trickles down to the home buyers, through lower prices or better quality homes.
"The people are going to be hurt the most," he says.
Doug Casey, president of Charlesfort Developments, says that not paying the fee has allowed him to design a better building and put in a park on the property, something he says the downtown core is lacking.
He says that this charge, more often than not, simply goes into a pot that supports the infrastructure in the suburbs, which he opposes.