Development charge increase faces appeal

By John Miner

South Huron council has adopted a bylaw to triple development charges on Jan. 1, 2027, but that might not be the end of the story.

The charge for building a single-family detached dwelling in the municipality is going from the current $6,467 to $19,131.

The controversial increase is based on a Watson and Associates report that calculated the additional money is required to cover the expenses of growth projects, such as adding a new water tower in Exeter and upgrading the sewage treatment system.

If the charges weren’t increased, the consultant said South Huron council might have to add the expenses to the property tax bills of current residents.

Although the new development charges in the bylaw are substantially lower than in some neighbouring municipalities, developers active in South Huron have vigorously opposed the increase. Submissions to council have said the hike would make homes less affordable and could stall economic development in South Huron.

The development charge bylaw was passed in a five-to-two vote at the July 13 council meeting.

Councillors Marissa Vaughan and Ted Oke both said they opposed the bylaw because it increased the development charges in one jump instead of phasing them in.

In a letter to council, Don de Jong of Tridon Properties Ltd., developer of Sol Haven subdivision on the edge of Grand Bend, advised that they would appeal the bylaw under the Development Charges Act if it was adopted in its current form.

Instead of applying the same development charges across the municipality, de Jong argued they should be calculated on the cost of growth-related projects in distinct settlement areas. Under the bylaw, Port Blake housing will be subsidizing new housing in Exeter, he wrote.

Former mayor and candidate for mayor in the October municipal election, Maureen Cole has made development charges part of her campaign.

In a posting on Facebook, Cole said she intends to use strong mayor powers to bring forward a bylaw to hold the charges at the current levels for the next two years.

“During that period, I will work collaboratively with council to develop a more balanced, long term strategy — one that ensures growth continues to pay for growth-related infrastructure while keeping South Huron an attractive place to build, invest, and live,” Cole wrote.

Bylaws proposed by mayors using strong mayor powers are passed if more than one-third of council members vote in favour of the bylaw.