South Dundas continues on its path to implement development charges, receiving a report at the April 9 council meeting spelling out recommended charges. That report said that a development charge of $10,623 per single detached or semi-detached housing unit is appropriate. If adopted as-is, this fee is in addition to water and sewer connection charges already in place for urban areas, applying on all home construction across South Dundas – urban and rural. South Dundas is late to the development charge game. Many Ontario municipalities adopted these fees years ago to have growth pay for future growth.
South Dundas not having these charges was seen as a “competitive advantage” – one that was not used to its full potential. Adding development charges now will only hamper further growth.
Of that recommended $10,623 charge, nearly 7/10ths is earmarked for Parks and Recreation. South Dundas has a number of recreation facilities already – 23 parks, an arena, and multiple buildings – all for a current population just over 11,000 people. Why should South Dundas charge new home construction money to build out more parks and recreation capacity when so many are under-utilized. South Dundas does not need to add gold plating to what is already there.
Adding in a development charge when two major housing projects (one each in Iroquois and Morrisburg) are already underway places any future development at risk – especially when some neighbouring municipalities have no intention of ever adding development charges.
South Dundas already investigated potential growth based on existing water and sewer capacity. As reported one year ago by The Leader, South Dundas has water capacity for 980 more homes after the current developments are completed. An eventual connection to the St. Lawrence Parks Commission facilities (Upper Canada Village, Crysler Marina and Riverside-Cedars Campground) reduces that capacity by 20 per cent. Without further water treatment expansion, development charges would amount to a potential $8.2 million in revenue, assuming all homes are built – plus any rural development.
Ontario has a housing crisis – South Dundas is not immune. Residential home starts across the province are down, even though it is a priority of the Ford government to build 1.5 million homes by 2031. As of May 1, 169 more municipalities will be granted “Strong Mayor” powers to limit red tape when it comes to provincial priorities like housing. It is unclear if those powers allow municipalities to undo existing charges. In the federal election campaign, the two most likely parties to form the government have pledged some relief from municipal development charges in order to build homes. Is adding over $10,000 to the cost of building a new home in South Dundas worth it?
The time to implement development charges is past. South Dundas missed the boat. Adding more fees now will snuff out progress. Council should spend their time, and staff’s time, attracting more development and using the competitive edge we already have. Growing the overall tax base still leads to growth paying for growth.
Discover more from Morrisburg Leader
Subscribe to get the latest posts sent to your email.