Developers say they will fight any attempt by the city to implement downtown development fees as envisioned by a new bylaw.
The bylaw, which would end a downtown development fee exemption, will be discussed at a public meeting in April.
Development charges are fees paid by property developers and are used to help finance city infrastructure and maintenance.
The fees usually range from $2,443 and $19,991 per residential unit, but developers in Centretown aren’t paying a cent.
The current bylaw was approved in July 2004; this spring the city will review its effectiveness before July 14.
The bylaw that exempts the downtown core from development charges was originally used to spark urban growth, but is no longer necessary, says Rob Mackay, the city’s acting director of Community Sustainability Services.
“Clearly there’s been a lot of development downtown outside of the exemption area, like in Westboro and the Byward Market,” says Mackay.
“We’re not sure there was ever a direct correlation between the current bylaw and downtown development.”
Over the past five years, revenues lost from exemptions has forced the city to postpone $21 million in various infrastructure projects .
But now, many councillors agree the extra money could help alleviate badly neglected city maintenance, says Kanata North Coun. Marianne Wilkinson.
The residential downtown development fees will likely go towards improving downtown community centres, roads and other problem areas, says Wilkinson.
The additional non-residential development fees will be put towards revamping city-wide infrastructure, including the sewage and storm drainage system.
“As soon as the exemption was put in, people flocked to downtown, but no money went into improving the services and sewers in that area,” says Wilkinson.
Although developers agree that downtown maintenance is a priority, many came forward at the planning and environment committee meeting on Feb. 17 to voice their disapproval of lifting the exemption.
Doug Casey, president of Charlesfort Developments, has criticized the city, saying that though money will be added to the pot, neighbourhoods such as Centretown will suffer if exemptions are scrapped.
“If the city wants to raise money, they should try to look to smart growth. They’re asking churches and hospitals to pay development charges. How low can you go?” says Casey.
The committee created to review the bylaw isn’t representative of downtown stakeholders, he says.
The city did not invite Casey to sit on the committee, or many of his downtown development counterparts.
Instead, the city approached the Ottawa-Carleton Homebuilder Association, which primarily develops in the suburbs.
City council assures that stakeholders will have their chance for input as the process unfolds. The city is doing a background study before putting together a draft package for review, says Mackay.
The public meeting this spring is expected to spark concerns about infrastructure problems in over-used public spaces inside the Greenbelt, such as under-developed community centres and libraries, says Mackay.
City council must pass the bylaw by July 14 or the they won’t be able to charge any development fees anywhere.
“I think most people are now realizing that perhaps the downtown exemption wasn’t the best way to go about things,” says Wilkinson. “Maintenance is very costly. We need to see the money coming back in.”