Gravenhurst adopts new Development Charges By-law
Gravenhurst Council adopted a new Development Charges (DCs) By-law in the November 19, 2024, meeting.
Council chose the staff recommended option that includes a 26.7% increase for current residential and commercial accommodation that will be phased in over 3 years, and non-residential rates remain at zero for commercial and industrial.
According to the staff report, “The Town has continued to collect zero DCs for development that fits into the General Non-Residential category” (excluding commercial accommodation).
It emphasized the importance of collecting DCs because “if the required amount is not collected through DCs Town property owners would be asked to pay these costs through taxation and external debt, or the project will have to be deferred until the required DCs are collected over a longer period.”
In addition to this reason, the Public Works expansion in 2033 is projected at $5 million worth of new debt, indicates the report. Therefore, DCs provide “alternative revenue sources (other than taxation)” for funding.
Director of Finances/Treasurer, Ross Jeffery, advised Council that the option strikes an “optimal balance.” He added that it helps address the attainable housing issue “without the risk of benefitting speculators and wealthy investors.”
Councillor, Jo Morphy, expressed concerned about the high rate. She said, “This is still a 26.7% increase over current.”
Council members debated about issues such as the same rates applying whether a home is $500,000 or $5 million, the importance of providing incentives to rental stock, and whether DCs will inhibit growth in the Town.
Mayor, Heidi Lorenz, said, “Vaughan pays $95,000 for a single,” yet aren’t hindered given their booming development.
Councillor, Randy Jorgensen, expressed, “We want to incentivize growth of homes… The most important thing we need in Gravenhurst is to increase our population and have a place for all those workers to live.” He added that he was not in support of DCs “if we want to incentivize non-residential.”
Councillor, Sandy Cairns, concurred, expressing concern about the District of Muskoka’s increases “on top of that increasing the Town.”
She added that she’s concerned DCs will hinder the Town’s progress. She said, “We’ve just started to grow in this community… We’ve added in several homes on Ward 5 and continue to do so there, and it’s because our DCs were capped and a very low fee.”
Councillor, Christina Hunter, emphasized the importance of the “growth pays for growth” concept, especially in areas that will be impacted by it, such as the Fire, Library, and Parks and Recreation departments.
Lorenz said, “Think of all the things we could have done up until this point if we had been collecting reasonable DCs.” She said they hear from the community about needs and wants, however, haven’t had the funds because they haven’t been charging DCs.
She added that majority of affordable and purpose build rentals will be excluded and that developers will still profit. She said, “If you think that a developer is not profiting that difference, you’re out of your mind because…developers don’t develop out of the goodness of their heart.”
Jorgensen expressed concern about DCs being “less of a factor” for a high-end home versus one that’s more affordable yet being charged the same DC rates. He said that the higher end home would be charged more money if the system were tax based instead.
Lorenz replied, “What’s $10,000 amortized over a 30-year mortgage?... It’s pennies a year.”
