Proposed Development Charges presented to Guelph City Council

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Guelph, Ont., June 28, 2018 – Proposed Development Charges (DC) scheduled to take effect March 2, 2019 were presented to Council at a Special Workshop last night.

Development Charges are fees levied on new development that help recover costs associated with growth, as outlined in Guelph’s Development Charges Bylaw.

The proposed DC rate for residential development will increase by 15 per cent to $33,470 for a single/semi-detached unit. The proposed non-residential rate will increase by 21 per cent to $11.72 per square foot. The proposed rates are still very competitive with DC rates in nearby cities, such as Kitchener and Cambridge, who are also in the process of conducting a Background Study.

The proposed rates are the preliminary results of the Development Charges Background Study undertaken by City staff, Watson and Associates Economists Ltd. and a stakeholder group comprised of local residents, developers and commercial property owners. The Background Study, which began in the fall of 2017, will continue through 2018 with final proposed DC rates expected to be released in November.

The Background Study includes a forecast of the amount, type and location of anticipated development; the average level of service delivered in the City; a review of future capital projects; and an examination of the long-term capital costs for the capital infrastructure required for services covered in the DC bylaw. Policy-related matters, including types of exemptions, timing of payment collection and clarity in the by-law language, will be considered and assessed in the remaining phase of the Study. The stakeholder group will also be reviewing the capital needs and the supporting Local Service Policy that are integral to this Study.

The City’s current DC Bylaw and rates will expire on March 2, 2019. The Ontario DC Act requires the City to complete a Background Study at least every five years to forecast future residential and non-residential growth and determine infrastructure needs and costs. This information is then used to calculate the new DC rates. The previous background study took place in 2013 and was used to set the DC rates in the current by-law.

A public meeting will be held in January for residents and stakeholders to provide feedback on the proposed DC rates. The updated bylaw and DC rates will be presented to Council in February 2019 for approval. The updated bylaw and DC rates will take effect March 2, 2019.

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Media contact

Tara Baker, General Manager, Finance/City Treasurer
City of Guelph
519-822-1260 extension 2084
tara.baker@guelph.ca