Development charges in Orillia will increase next month — more than usual.
While a moratorium on industrial development charges will remain in place until the end of the year, residential developers aren’t off the hook.
As of Feb. 1, the fees will increase 11.6 per cent. That means developers will pay $21,969.76 per unit for single and semi-detached and $89.12 per cubic metre for non-residential. Those figures in 2021 were, respectively, $19,686.19 and $79.86.
“This is probably a little higher than we would typically see,” said John Henry, the city’s treasurer and chief financial officer.
The increase is “reflective of the current construction market,” he added.
“With COVID, everyone is hearing that there are supply chain issues and shortages of things.”
Despite the 11.6 per cent hike, development charge rates in Orillia are “very competitive and would remain ranked among the lowest in Simcoe County,” staff noted in a memo to council.
“If you’re a developer, you could probably save close to two-thirds by building in Orillia,” Henry said.
Development charges are used to pay for growth-related projects, which could include roads, water treatment, community centres and parks, to name a few.
“The principle is that growth should pay for growth … rather than it falling on the residents,” Henry said.
City staff and consultants are working on a development charges background study, as rates must be updated every five years. A draft report is expected to be presented to council in the spring. There will then be an opportunity for consultation with the public and developers.
