Even as the city is set to consider increasing development charges, the net cost of putting up new buildings in Guelph could soon go down, thanks to the province ending parking services fees.
But that downward trend could be short lived, with additional costs potentially on the horizon.
If the currently proposed city changes are approved, residential construction would see a net 0.3 per cent drop in development charges, while non-residential builds would see a four per cent decrease, explains a staff report.
“Development-related revenue tools are a key source of funding for growth-related capital projects,” it says. “These revenues are used to support investment in growth-related capital projects such as roads, water, and wastewater infrastructure as well as new city facilities, amenities and vehicles related to emergency services and transit.”
That report and recommended bylaw amendments will be the subject of a special council session and public meeting on Oct. 18, beginning at 6 p.m. It will be streamed live at guelph.ca/live.
By provincial decree, beginning Sept. 18 municipalities can no longer charge a parking service fee among their development charges. On its own, that would lessen local DCs by about $1,316 per single detached home and $6.84 per square metre of non-residential construction, the staff report states.
However, if the proposed city charges are implemented, much of that lost revenue will be recouped – about $1,206 per single detached residential unit and $1.26 per square metre for non-residential construction.
If approved, the new rates would come into effect on Dec. 13.
“The total impact will depend on the rate and type of growth in the city by 2031,” notes the staff report. “This increased DC revenue reduces the amount required by tax and rate reserves to fund the balance of the capital costs of growth.”
Additional city charges are also in the works.
The city’s parkland dedication bylaw, which sees developers contribute land or cash in lieu, is currently under review. A report and recommendations to council are expected in the third quarter of next year.
As is a background study on potential implementation of a community benefit charge is slated to begin shortly, with findings presented to council around the same time as the parkland dedication bylaw report.
The provincial government recently approved the collection of community benefit charges for new construction.
A comprehensive development charges study is also on tap as the city prepares for provincially mandated growth in the coming years. By 2051, Guelph’s population is expected to reach 203,000.
