Developers welcome DC bylaw appeal

Niagara developers gained an unexpected ally, opposing regional development charge increases.

“Just let me clarify; the City of Welland is appealing the (Niagara) Region’s development charges?” asked Mark Basciano, president of Mountainview Homes.

“Wow! Wow!” he said when told about the city’s recently launched an Ontario Municipal Board appeal.

Welland Mayor Frank Campion confirmed last week that the appeal was launched after hearing from unhappy developers facing increases of up to 400 per cent on some multi-residential buildings. It’s the second time the city has launched an appeal of the Region’s development charges bylaw, since opposing an eaerlier version of the bylaw in the summer.

In a statement last week, a Niagara Region spokesperson declined to comment about the city’s appeal, saying: “It is Niagara Region’s practice to refrain from commenting on matters that are currently before the Ontario Municipal Board.”

Basciano said he supports development charges when they are used for their intended purpose.

“They’re needed and they’re an important tool that municipalities and regions have and use to pay for new infrastructure that’s required. … But when they’re not applied fairly, reasonably, or responsibly, they become harmful,” Basciano added.

“Unfortunately sometimes, some municipalities and some regions across the province – just not in Niagara – use it as a source of revenue because it’s easier to grab from that pot, rather than the tax base.”

Basciano said the new bylaw could mean hundreds of thousands of dollars in increased costs on large-scale projects, undermining efforts by developers to keep prices affordable.

“When I break down the cost of a house, most people are shocked when they see how much of it is actually not the house,” he said.

In addition to bricks and mortar, he said the cost of permits and development charges add significantly to the price of the structure. And those costs are ultimately passed on to consumers.

“We’re trying to come up everyday with more affordable products, different building forms and higher development costs like development charges just drive our costs up,” Basciano said.

“It’s working against what we’re trying to achieve.”

Aamir Soomro said his plans for a student-orientated condominium building in Welland would have “definitely been derailed” if that project were subjected to the new development charges.

It would have increased his costs by an average of $15,000 to $20,000 for each of the 42 units in the building, added Soomro, chief executive officer of St. Catharine sb as ed N Square Development Group Ltd.

Although he said that condominium building — called The Locke — was approved before the new development charges bylaw was implemented, he said the cost increase, particularly on larger multi-residential units, will “definitely make a dent for future plans.”

“Other municipalities are incentivizing high density multi-residential housing, where as Niagara Region just wants single-family homes and townhouses,” he said.

Soomro said he suspects the development charge hike is pay- ing for infrastructure needed in west Niagara, because there are no real infrastructure needs where he plans to build his condo.

“In order to funnel growth to the Grimsby area they’re basically trying to spread the development charges all over the rest of the municipalities,” he said.

As a result of the increases, he said many builders may limit the size of condominium units to one or two bedrooms, rather than four. Ask us about the revolutionary all on four concept.