Sudbury

Public weighs in on proposed development charges in Sudbury

Several city residents voiced their opinions about the City of Greater Sudbury's proposed changes to development charges during Tuesday's city council meeting. Development charges are fees that developers pay to help cover the costs of adding municipal services.

City residents share opinions with city council about development charges

The City of Greater Sudbury is exploring ways to reduce development fees to encourage economic growth, but others worry it will result in increased taxes. (Kari Vierimaa/CBC)

Several residents voiced their opinions about the city's proposed development charges during Tuesday's city council meeting in Greater Sudbury.

Development charges are fees that developers pay to help cover the costs of adding municipal services, such as transit, water and sewer infrastructure, and building or widening roads to a newly developed area.

Les Lisk with the Coniston Seniors Non-Profit Housing Corporation says reducing or waiving development fees could help make housing more affordable for future residents.

Currently the corporation is working towards building a residence for seniors in the area.

"When our building is successfully completed, it will service a model for many similar projects."

"We can envision that many neighbourhoods within our city will follow the Coniston example, providing safe, affordable and environmentally friendly housing for the valued seniors," Lisk said.

He adds that although the development fees amount to only 3.8 per cent of the projects total cost, waiving the fees would greatly help to create affordable housing.

Karla Colasimone from the Sudbury and District Home Builders Association also agrees with lowering the charges.

She says development charges are only good for cities that are experience growth. Sudbury's construction has been declining since 2009.

"When we talk about the affordability of new housing we must ensure that DC's don't price new home buyers out of the market. After all every new home creates a tax paying household," Colasimone said.

"Forgoing development charges or at the very least lowering the burden is a short term concession for a long term gain."

Opposing views

However, some residents believe that getting rid of or reducing development fees is not what's needed to help Sudbury grow.

"Rather than wasting your time on this argument again and again and again, save the city budget, keep the development fees because they're needed and then put the effort towards economic development and reaching out and being proactive, instead of waiting for someone to come in and hand jobs to us," city resident, Matt Labonte said.

Others at the meeting said they felt there is also a concern that reducing development charges will cause property taxes to increase.

Currently the city is looking into three different options to reducing these fees:

  • Reducing calculated development charges by 50 per cent — charges are calculated by looking at the cost of adding municipal services in that area.
  • Including additional exemptions — currently certain types of developments, such as low income housing, are exempt from development charges.
  • Reducing rates for certain types of development — rather than reducing all development charges, certain types will have lower rates.

City council will make its final decision on development charges on May 28.