Staff also proposed that transit and waste service development charges should begin in Kitchener and Cambridge cores in January 2018. Then in March 2019, all cities and townships would be brought on the same page, requiring development charges across the board.

For a single home, developers would pay $3,200 to go towards transit and $255 for waste management. For a non-residential building, the cost would be $1.50 per square foot for transit and $0.01 per square foot for waste.

Municipalities have limited funding sources – property taxes, user rates and development charges – for infrastructure projects, said chief financial officer Craig Dyer to councillors.

Development charges, in particular, are designed to help cities and townships pay for infrastructure that’s needed to support growth, as the growth actually happens, not after.

“The fact we are going to get revenue somewhere down the road (from future property taxes) doesn’t help us fund these projects when they’re actually needed,” Dyer said.

What was decided

In a notice of motion, the City of Waterloo said the combined regional and city development charges for a two to three bedroom apartment in uptown, would cost developers close to $20,000, whereas in Kitchener’s core there would be no such development charges.

“I would certainly encourage our colleagues across the region to continue to think about equity across the region,” said Coun. Jeff Henry at a Waterloo council meeting last Monday, where development charges were discussed in light of the next day’s meeting.

Regional council unanimously agreed to allow Waterloo the same transit and waste exemptions as Kitchener and Cambridge to even out the playing field. Those exemptions will last until 2019.

Kitchener Mayor Berry Vrbanovic was an outspoken supporter of delaying charges.

“Moving the goalposts mid-stream sends a very wrong message to the development community at a time when there’s a lot of uncertainty in Canada and North America,” he said. “We’re starting to see some positive development. We don’t want to start sending signals that turn developers away...or see them abandon projects.”

Regional council also voted to hold off on transit charges in townships, also until 2019.

Woolwich Mayor Sandy Shantz called the transit development charge a “double whammy” for townships, something the other township mayors echoed.

First off, she said, the majority of the transit charge will go to LRT, which is meant to bring growth to the core areas, and with it increased property values and tax assessments.

Secondly, “If we have increased development charges (compared to cities) it’s harder for us to attract business,” Shantz said. “I want to make sure that’s not lost on this council.”

Along with the region's cities, Wellesley Mayor Joe Nowak said, the townships have to compete with other townships that have no development charges – Pearth East – or are much lower than those the region is proposing – Maple.

“I ask we be exempt until we have sustainable transit options in Wellesley and that council not inhibit the township’s ability to contribute to the overall strength of this region,” Nowak said.

“A number of projects in the Gas Light District just started,” said Coun. Karl Kiefer, explaining why his city wants the exemption. “Cambridge is not in the same position as Waterloo and Kitchener are, but we want the same growth they have.”

What’s next

Council will consider approving the committee’s decision on Nov. 30. From that date there is a 40-day period for appeals.

The regional development charges bylaw, including exemptions for agricultural use and brownfields, and 50 per cent reduction for industrial development, expires in 2019. At that time council will revisit the charges.