Council questions implementation of industrial development charges

Jeff Helsdon, Local Journalism Initiative Reporter

Tillsonburg council backed a resolution from its economic development committee to ask Oxford County council to reconsider the implementation of development charges on industrial land.

The resolution from the Economic Development Advisory Committee asked for council’s support to address Oxford County council about the impact of development charges on industrial development in the wake of a softening industrial market, the town’s supply of industrial land for sale and the possible impact of U.S. tariffs. It also noted the development charges could exacerbate the challenge of attracting industrial development against municipalities that don’t have charges.

Oxford County did not charge development charges in the past, but a decision was made to add the charges this year to help alleviate the impact of a 12.6 per cent tax increase the initial budget would have brought.

Deputy Mayor Dave Beres questioned the process of the committee raising these concerns, asking if council should be communicating to county council, or if the committee could.

“As much as I appreciate the work these committees do, including the economic development committee, it’s the process,” he said.

Mayor Deb Gilvesy said the committee spoke to county council prior to her time as mayor, but suggested the alternative was to have the economic development officer to make a presentation.

Beres agreed the solution would be to approve the resolution and suggest a presentation be made by the economic development officer.

“It feels a little bit off they would be going to other councils,” said Coun. Kelly Spencer. “I think it needs to come from council as Deputy Mayor Beres was saying.”

Ross Graham, one of the owners at Legend Rubber, spoke at Oxford County council about the potential issues with industrial development charges.

“The county should be careful in removing the exemption on development charges with the present situation (potential tariffs) and the federal government not addressing it,” he said in an interview Monday.

Legend Rubber currently has a plant on Highway 3 in the Municipality of Bayham, but has plans to build a second facility in Tillsonburg’s industrial park. If development charges were in play, it would have cost Legend Rubber another $315,000 to build its plant and Graham said the company would have looked elsewhere.

“It all depends where it goes with these tariffs,” Graham said. “Some states in the U.S. are doing a lot to attract development.”

With many local companies shipping to the U.S., when there are no development charges, a possible exemption on the tariffs while a plant is being built and promises of green cards for workers, it looks attractive for industry to relocate, or build another plant.

As it stands, plans are far enough along for the new Legend plant, development charges won’t apply and its plant in Tillsonburg will go ahead.

Representatives of other industries also spoke at the county meeting.

Tillsonburg council passed a motion to receive the report for information, support the resolution from the committee and direct the economic development officer to submit a delegation request to county council to speak about the impact of development charges on industrial development in the town.