Owen Sound city council passed a new development charges bylaw at a special meeting on Thursday evening.
But the charges for residential building projects will be phased in over five years, and they’ll top out at 80 per cent of the amount suggested by a planning consultant.
There was little obvious reaction to the compromise decision from people who packed the council chambers, although the standing-room-only crowd leaned heavily toward the interest of developers.
They applauded at times when councillors acknowledged that the city risked pricing itself out of the market with development fees and that fees won’t be collected if nobody is doing any building in Owen Sound.
Perhaps the most prolific residential developer in the area, Barry Kruisselbrink of Barry’s Construction in Allenford, says Thursday’s decision is a step in the right direction but it doesn’t go far enough.
He and others want to see no development fees and believe such charges actually stand in the way of growth.
Kruisselbrink characterizes development fees as a penalty on the local construction industry, which he points out is the largest industry left in the city.
The fees suggested by the consultants were $8,760 for a new single-detached home, $7,195 for a multiple dwelling and $4,536 for an apartment.
Under a formula suggested by City/County Coun. Arlene Wright, the fee for a single-detached home will now start at $2,803 and rise incrementally to $7,008 in 2014.
For multiple dwellings, the fee would go from $2,302 to $5,756.
For apartments, the fee would climb from $1,451 to $3,629.
This did not meet unanimous approval among councillors but it passed by a recorded vote of 6-3, with Councillors Deb Haswell, Jim McManaman and Tom Pink opposed.
Mayor Ruth Lovell Stanners says Thursday’s decision is a good compromise.
She says that while developers would like there to be no fees, councillors feel they are necessary because the creation and maintenance of the city’s infrastructure has to be paid for somehow.
That was the argument made by councillors who said it’s all well and good for certain neighbouring municipalities to not charge development fees when their infrastructure and amenities are not comparable to those in Owen Sound.
Kruisselbrink disagrees saying some municipalities like Hanover and Saugeen Shores do in fact offer the same amenities and level of infrastructure.
Council also approved a new commercial development charge of $1.85 per square foot, the amount recommended by Meridian.
Immediately after the new bylaw was passed by council, Coun. Peter Lemon moved that a new moratorium be placed on fees, similar to what happened last year when the city sought to spark the economy
Although Coun. John Christie seconded Lemon’s motion, Lemon was the only one who actually voted in favour of it.
But council does retain the power in its bylaw to waive fees in certain cases, as it has done recently for projects by a non-profit housing corporation.