Development charges in the Town of Erin are Going up 48% more for new homes and 58% for new businesses in the urban areas.
Town council used the results of a development charges study.
Development charges are not set by provincial law, but increases must be justified by a study every five years.
Mayor Allan Alls said he is expecting some complaints from developers, but said it is important that municipalities not fall behind in recovering their costs.
1st reported in the Wellington Advertiser
Councillor Mike Robins said the new fee structure “doesn’t seem overly burdensome,” especially considering the overall cost of a new home.
The report is based on a forecast of a population increase of 1,607, with 650 new homes within 10 years. The outlook to 2041 shows 6,589 more residents and 2,283 more homes.
Currently, for the construction of single or semi-detached homes, the builder would pay $11,551 in rural areas and $15,104 in urban areas (with water service). Business properties pay $4.58 per square foot in rural areas and $6.06 for urban.
The new rates for singles and semis will be $17,258 in rural areas and $22,284 for urban. The business rates will rise to $7.52 per square foot for rural and $9.55 for urban.
DCs are designed to help municipalities pay costs related to new development, in areas such as transportation, fire protection, parks, recreation, administration and water supply. The report estimates that the town will need to spend a total of $27.2 million on capital projects over the next five years, with $16.3 million to be recovered through DCs.
