Damn the torpedoes

Council looks to extend development charges discount

Council will extend the discount to development charges after all. Though the way they did it may expose County taxpayers to a costly challenge.

County development and connection charges are the most expensive in the region. This marketplace disadvantage exists even though development charges in Prince Edward County have been discounted by50 per cent for the past three years. It isn’t a minor disadvantage. The County’s discounted fees are more than double those collected in Belleville and nearly three times the amount charged in Quinte West.

The discount was set to lapse on March 6. The County’s finance department said the discount should expire and charges rise. They said the discount hadn’t delivered a meaningful increase in new home development—at least not enough incremental increase to the tax base to fund the lost revenue.

This newspaper argued that the County competes with neighbouring jurisdictions for new home building development—that these high connection and development fees served as a deterrent to builders. Jacking rates higher would make the problem worse.

Many on council agreed. Tenuously at first, but then with mounting conviction, they may have overshot the mark in their enthusiasm to renew the discount.

One councillor wanted to know whether any builders had been surveyed in advance of the increase in development charges. They hadn’t.

Mayor Robert Quaiff had planned to defer the matter, but he wanted council to hear from James Hepburn, the County’s Chief Administrative Officer, first.

Hepburn explained the rationale again—underlining the opportunity to consider development charges in the overall community improvement plan later this year.

He added a recent legislative wrinkle. He said that as of January 1, the municipality was bound to give 60 days notice to the public to change its development charges bylaw. It would also need a background study conducted. Since the discount was set to expire on March 6, a decision extending the discount beyond that day would contravene provincial legislation. The earliest the discount could be reinstated was mid-April.

It didn’t sound like an insurmountable issue. Builders would either apply for building permits— invoking the development charges—before March 6 or after April 15.

But Mayor Quaiff and others took offence to the limitation on their authority.

“Who says we can’t extend it?” asked Quaiff.

“We are trying to promote development, yet we get these provincial elements stacked against us.”

The County’s finance chief, Susan Turnbull, explained that council could extend the discount but it might open the municipality to an OMB challenge. She reminded council it had recently had to defend its development charges bylaw in an OMB hearin

But council had, by then, a full head of steam. It wanted an extension, despite the risk.

Only Ameliasburgh councillor Janice Maynard argued for raising development charges.

“The numbers tell us this wasn’t effective,” said Maynard. “What makes us think it will work now?”

She suggested there may be alternative means to encourage and incentivise building—that this matter should be shelved until council could take a broader, more comprehensive look at the entire sector.

Mayor Quaiff more or less agreed with Maynard, but still insisted development charges stay where they are—discounted—until that review occurred.

Even if that means an OMB challenge.