Town council still has to approve the three-year pledge

Heather Wright/The Independent

The provincial and federal governments have promised up $2.3 million in funding to Petrolia in exchange for a pledge to eliminate development fees for three years.

But it remains to be seen how much of that cash will be coming.

Sarnia-Lambton MPP Bob Bailey, Sarnia-Lambton Bkejwanong MP Marilyn Gladu, outgoing Petrolia Mayor Brad Loosley and Mayor-Elect Joel Field were on hand for the announcement Monday at Petrolia’s Victoria Hall. Also in the audience were recently re-elected councillors, Lambton County Warden Kevin Marriott and officials from the Sarnia-Lambton and Ontario homebuilders’ association.

Standing before a giant cheque in the council chambers, both Bailey and Gladu said with the reduction of up to $11,695 in development charges and the HST rebate for new homebuyers on house up to $1 million, prospective homeowners could save up to $141,695 on the cost of a new home.

There are 15 developers working with the town on housing. Two – Greenwood Acres, being developed by Spectra Construction, and the next phases of Countryview Estates – are opening up housing in the community now. Spectra is selling 22 lots in the subdivision west of the Greenwood Recreation Centre. Countryview Estates latest phase will have 32 new homes.

Of the two subdivisions already in progress, both list homes in the neighbourhood of $500,000 to $650,000 which would normally have HST of between $65,000 and $78,000. Development charges would be between $8,803 and $11,695 per home. With the HST rebate and the suspension of Petrolia’s development fees for three year, new homebuyers could see savings of between $76,000 and $90,000 in the existing Petrolia subdivisions.

Loosley praised the provincial and federal government as well as town staff who put together the funding application before the municipal election. Council – which approved the town’s first development fees in 2025 – has yet to approve the concept of eliminating charges meant to help pay for the cost of growth. The new council will do that once it receives the funding agreement from the province. It’s not clear when that will happen.

“This is a significant opportunity for our community,” Loosley said.

The funding will be used for a number of recreational, fire and capital projects which will be needed because of growth including a new fire trucks, improvements to recreation facilities including a multi-purpose studio at the Oil Heritage Community Centre, and new vehicles for the parks and recreation and public works departments.

“You can just understand the volume and the impact this will have on Petrolia. These investments will help ensure that as Petrolia grows, we continue to provide the facilities, equipment, and services our residents expect and deserve.”

While the politicians announced the funding, the details still aren’t clear.

Petrolia CAO Rick Charlebois says the province and federal government have committed up to $2.3 million once the new municipal council votes to suspend development fees. But the money doesn’t flow automatically. The grant application for the Development Charge Reduction Program included the projects the town believes will be needed with housing expansion. When the town is ready to move forward with any one of those projects, it will consult with the province and receive funding approval to move ahead, with the cash being turned over the the municipality once the project is complete.

“We haven’t seen the actual agreement, and it’ll be in the details,” he tells The Independent.

Charlebois says the town still doesn’t have a clear answer on what happens if the housing market remains flat and only a handful of houses are built in that three years.

Petrolia, like most other municipalities in Lambton, has seen housing starts decline since the peak in 2022. In 2025, only eight homes were built in town. According to Lambton County statistics, as of September 10 building permits had been issued in 2026 in town.

Financial forecasters, such as Desjardin, have suggested Ontario will build 65,000 new homes in 2027, far less than the original provincial target of 150,000 a year for 10 years. And on Oct. 28, the Bank of Canada also unexpectedly raised it’s rate by a quarter of a point, which is expected to be reflected in mortgage rates.

“They said – the province – they think would be as generous as it could because we’re trying to sell homes doing everything we can,” says Charlebois, adding the province and feds hope the new programs will move the housing needle.

“Everybody’s hoping that the housing market will take off,” said Charlebois.

Since January, Charlebois says about $65,000 in development fees have been collected from new builds in Petrolia. If council approves the deal with the provincial and federal government, any fees paid to developers from March 2026 on will be refunded.

WHAT THEY SAID:

OUTGOING PETROLIA MAYOR BRAD LOOSLEY: “It just does kind of close the book on a project we’ve worked on for months and it really makes me feel proud this previous council that have worked hard to get to this point.”

PETROLIA MAYOR ELECT JOEL FIELD: “Programs like the Development Charge Reduction Program are important because it allows municipalities like ours to have a proactive approach to growth. They provide the opportunity to encourage new housing and development while also helping us address the infrastructure and service needs that come with growth.

SARNIA LAMBTON MPP BOB BAILEY: “For too many, the dream of home ownership has been increasingly out of reach. This is unacceptable. I’m sure everyone here would agree. Ontario’s government continues to work tirelessly to create the conditions to build and make the necessary investments to support continued growth…We know that development charges or DCs are an important tool for growing municipalities to help pay for necessary housing enabling infrastructure such as roads and sewers. However, in recent years they have been rising dramatically in some places, becoming a barrier to building. Through the DCRP, we are helping municipalities reduce these costs and unlock their full housing potential.”

SARNIA-LAMBTON BKEJWANONG MP MARILYN GLADU: “This funding will help Petrolia build the infrastructure needed to unlock more housing and support the growth of communities across the city. This includes improving the town’s water system, as well as upgrading fire services equipment, building park and recreation facilities, and upgrading the public works fleet. These kinds of investments make it possible to complete connected communities and will make a real difference for families looking for a place to call home. And, having lived in Petrolia myself for about 17 or 18 years, I can say it’s a great place to call home.”