A consultant is recommending Warwick Township start charging nearly $19,000 in development fees for new homes.
But not all councillors are convinced it is a good idea.
Monday Daryl Abbs of Watson & Associates Economists presented a report on development fees saying “ensuring that growth does pay their fair share of the development targets, or their fair share of the capital costs, is the sound financial approach.
The report calculates how much money would be needed to pay for new services like water, wastewater, fire and recreation because of growth. Abbs says $13,322 would cover that cost in rural areas and $23,685 would be appropriate in urban areas. Because the provincial government is limiting the amount of fees charged to 80 per cent right now, that would mean a developer would pay $10,658 per home in rural areas and $18,948 in urban areas. Non-residential construction would pay development fees based on square footage – $4.10 in the urban area and 56 cents per square foot in rural areas.
The numbers worried some councillors. “That $10,000 a house you were talking to you might be the difference between somebody who can afford it and can’t afford it. We’re looking at trying to find housing for people,” said Councillor Wayne Morris.
Deputy Mayor Jerry Westgate agreed saying Warwick is in a unique situation because it has another source of income – the landfill – “maybe we don’t need development fees the same as other places.”
Treasurer Trevor Jarrett pointed out Warwick is the only community along a 400 Highway without the fees.
Warwick is projected to build 465 new homes in the community in the next 15 years.
Council made no decision on the fees.