Toronto Looking to Double Development Charges

Just how much is too much when it comes to development charges? The City is always looking for ways to add more cash to its coffers, and developers are constantly focusing on maintaining affordability.

The City of Toronto is once again floating the idea of raising development fees, looking to double what developers pay per unit. The Toronto Star is reporting that the new charges, which would jump from $8,356 to $17,351 per one-bedroom unit, could take effect as soon as May 1st if things move as quickly as the City hopes.

“We’ve had a lot of growth, a lot of new infrastructure that’s being required, so it’s not unusual for a municipality to update their bylaw before the five-year period, particularly when you’re going through a period of high growth,” said Deputy City Manager and Chief Financial Officer Roberto Rossini to the Star.

It certainly is interesting timing. 2013 is supposed to be a slower a year for the industry. Developers recognize that the appetite for high-rise suites is still strong, but the available inventory is an issue. With a significant umber of suites already on the market, things are slowing down. So, it seems like a poor time to start adding more costs to development, especially considering that the City collected upwards of $120 million in fees last year.

As of now, nothing is certain. A consultation committee has been formed with industry experts such as the Building Industry and Land Development Association (BILD), who will look at the proposed changes and the impact that they may have on the market. The aim is to have any changes finalized by May or June.

“Historically, we have had a great working relationship with city staff when it comes to their development charges bylaw review and we look forward to the same process as we start to dive into the details,” said BILD President Bryan Tuckey, also to the Star.

What are your thoughts on this proposal?

Are you concerned this will negatively impact affordability?

Comment below.