County opts to phase in development charges beginning in 2028

County votes to implement charges after lengthy debate

Essex County Civic Centre.

The County of Essex will go ahead with a development charge which will be added to new builds in the next couple of years.

Following over an hour-long discussion last Wednesday night, which included comments from the president-elect of the Windsor-Essex County Association of Realtors (WECAR), the charge will begin in 2028.

“Development charges are about one core principal – growth paying for growth,” said county director of financial services/treasurer Melissa Ryan.

Facing county council last week were two options. One was to phase in the development charges over five years, and the other, over a ten-year period.

Previously, representatives from the Windsor-Essex Home Builders Association told council they were against the charges which would be passed on to the buyer and realtor president Alyssa Ismail said during last Wednesday night’s meeting in Essex that  now was not the time.

“It will shape whether new housing can get built, who can afford it, and how our local economy grows,” said Ismail.

Ismail added that the region’s prosperity depends on keeping housing affordable and noted that due to economic uncertainty, housing starts are declining.

“Our (WECAR) position is simple. Now is not the time for municipalities to be adding higher housing taxes while housing supply is already constraint and affordability is under strain,” Ismail told members of Essex County council.

County council had been told in the past that the development charges would be about $12,000 on a new single-family dwelling but last Wednesday, Ryan said that that is now down to $8,500. 

There will be exemptions from the charge, including for affordable housing.

Lakeshore resident Ryan McNamara spoke before council and said he agreed that growth should pay for growth but now is not the time. He said houses being built now are larger and there is no starter home stock.

“We are adding costs because there is more profit to be made in building larger houses,” he said.

Lakeshore Mayor Tracey Bailey and Deputy Mayor Kirk Walstedt continued to be against any charges and Walstedt commented that he has spoken to builders across Essex County and that new construction is nearly at a halt.

“This is the wrong policy choice for this council to be making this evening,” said Bailey of a development charge. “Our communities simply cannot afford it.”

Several county councillors believed that growth should pay for growth, citing the multi-million dollar interchange coming at the corner of Manning Road and E.C. Row Expressway.

Amherstburg Deputy Mayor Chris Gibb said if the county does not impose a development charge on new builds, that the new growth will have to be paid for by existing taxpayers.

“What about the affordability for people who already own a home? They are going to be asked to put thousands of dollars more into infrastructure projects that are being caused by new development,” said Gibb.

Tecumseh Deputy Mayor Joe Bachetti said the county has been talking about implementing development charges for 15 years.

“This county is one of the few that have not enacted. If we would have done this 15 years ago, we would have had a revenue stream.”

Faced with the five-year or 10-year phase in option, Kingsville Mayor Dennis Rogers proposed the five-year but have it beginning one year later, 2028 instead of 2027.

Beginning Jan. 1, 2028, the development charge on new builds will be 25 per cent of the $8,500 which is $2,125. 

That will increase by 25 per cent each year until it reaches the full amount.

County opts to phase in development charges beginning in 2028

By Fred Groves