Perth set to raise Development Charge rates
In anticipation of the financial pressures new growth will place on the municipality as it develops the infrastructure to accommodate new developments, the town of Perth is overhauling its Development Charges (DC).
“Updating the Development charges By-Law is a process by which the town ensures that new growth and development pays for the expansion of services and infrastructure necessary to accommodate new growth,” wrote Forbes Symon, Director of Development and Protective Services in a report to council.
The new schedule will see a sharp rise in DCs, particularly for medium and high density development. Developers looking to build medium to high density residential units in Perth will be looking at nearly double the DCs currently charged or more depending on the area of town.
As an example the DC on a high density residential unit is currently $2,770.61 per unit but will nearly double to $5,352 per unit by July 1, 2020.
The new charges are being phased in over a six-month period.
“Staff felt it was appropriate to phase in for a short period of time, reflecting that some developers may have made commitments for early 2020 development season, and this may be a hit to them,” said Symon.
The current DC rates will remain in place until December 31, 2019, and all building permits issued up to December 31 would have the current rates applied. As of January 1, 2020 the DC rates will increase by 50 per cent of the recommended increase, and the full rate would be applied after July 1, 2020.
The new DCs are in line with the Provincial Development Charges Act and the new by-law enforcing the new rates is expected to be passed at the October 22, council meeting.
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