The CEO of the local chamber of commerce says a proposed increase in the fees Guelph charges to builders for new developments could have an effect on housing affordability and the retention of top talent.
The Guelph Chamber of Commerce represents a number of local industries that will be affected by a proposed sharp increase in development charges (DC) by the city, says chamber CEO Kithio Mwanzia.
The proposed bylaw calls for a 17.35 per cent increase in development charges for residential development and 23.85 per cent increase in the non-residential rate.
Mwanzia said no increase in cost of doing business in Guelph lives in isolation.
If approved, the new rate for residential development would be $35,098 for a single/detached home.
He said an increase in the cost of residential building could drive up the cost of living in Guelph, which in turn could make the city less attractive to live in for the top talent local businesses need.
“The Chamber has been steadfast in discussing how these decisions impact housing affordability, which in turn impacts the attraction and retention of talent — an issue that employers in Guelph have raised several times,” said Mwanzia.
“This particular policy decision does not live in isolation, there is a number of knock-on impacts that may be associated with this,” said Mwanzia.
City staff has previously stated the proposed increases are in line with DC rates in nearby cities, like Kitchener and Cambridge.
A call for comment from the Guelph and District Home Builders’ Association was not immediately returned.
While the increase may be comparable to neighbouring jurisdictions, Mwanzia hopes city council and staff will find a way to mitigate the increases by insuring greater ease of doing business and potentially reducing other soft costs businesses may incur.
“To what extent are you looking at regulatory changes to make sure you’re making it easier to do business, while you’re ensuring that you’re a community thats attractive for people to live in,” said Mwanzia. “We will be urging city council and staff to look at the full picture of what this does to Guelph’s competitiveness.”
