The higher development charges that could be applied to residential development as early as August are too high for two industry experts who spoke to council on Monday evening.
Rebecca Schillemat, chief executive of Peterborough and the Kawarthas Home Builders Association, and developer Murray Davenport both addressed council in a virtual town hall meeting.
Development charges are meant to cover the costs of city services and infrastructure — roads and arenas, for example — that are needed to accommodate a growing population as developers build more homes.
But Davenport said the city uses development charges to pay for flood protection on Bethune Street, for example, because flooding already exists and isn’t caused by construction in the area.
Schillemat said the city is also proposing to use $28 million from a reserve of development funds, over the next few years, for road repairs and repairs to alleviate traffic congestion that already exists today. – not the traffic that increases over time due to the growth of the city.
Councilors weren’t supposed to debate on Monday – they were hearing from the public. A debate is planned at a meeting on July 11.
Peterborough has two types of development charges: some applicable to specific growth areas and another city-wide.
Area-specific development charges are reset every five years; they must be adjusted at the end of July.
Citywide development charge rates are also slated for adjustment now, just as the city is set to begin building a two-story arena and $65 million library branch. which she must cover herself (since the federal and provincial subsidies are not expected after all).
Here are more details.
Area specific development charges
The largest proposed increase is in the Jackson planning area, where development fees on a single-detached home are set to increase by 55% starting Aug. 1.
This would mean the area-specific fee for a new single-detached home in the Jackson planning area would increase from $2,589 to $4,023 (an increase of $1,434, or 55.4%).
For semi-detached and detached homes in Peterborough, that fee is now $34,795 – and is proposed to increase to $39,224 from August 1 (an increase of $4,429, or 12.7%).
Part of this total charge is spent on recreation – it is proposed to increase from $2,255 to $7,853 per semi-detached or detached home (an increase of $5,598, or 248.2%)
That’s because the city is set to begin building a $65 million two-story arena in Morrow Park in September, and about $50 million in federal and provincial grants that had been requested are not available. .