To offset the cost of growth, the Town of Pelham has been setting and collecting development charges on residential development and re-development for some time. The current development charges by-law was adopted by Council on August 5, 2014. The by-law was developed, as in the previous by-laws, in conformance with the Development Charges Act. Development charges were also previously known as Impost Fees and Capital Levies and have been levied by the majority of Ontario municipalities for several years.
The Town of Pelham recognizes that growth will continue to generate additional pressures on its municipal infrastructure and, thus, the financing thereof. The Town's development charge policy is based on the philosophy that new growth should not create a financial burden on existing residents of the community while the existing residents should not enjoy a financial benefit at the expense of new residents.
Development charges are fees on new property development within a municipality and are used to defray the cost of providing the infrastructure necessary to supply the new property with the level of municipal services currently provided to existing property owners. Such fees were usually applied as a condition of the development of a property during the various initial processes which included Subdivision and Development Agreements, Zoning Amendments, Severances and Official Plan amendments, etc.
The purpose of such a fee was to offset the subsequent demand for capital works and municipal services, which would arise as a consequence of development. For example, additional fire protection, recreational facilities, library facilities and municipal works such as upgraded roads, water and sewers. etc., due to population growth and extensions of services into previously undeveloped areas.
In 1997 the Province of Ontario enacted a new Development Charges Act. The Act stipulated that any municipality wishing to impose the charges would have to meet specific criteria and pass an appropriate by-law. As a result, the Town of Pelham retained the firm of C.N. Watson & Associates Ltd. to undertake a comprehensive study, hold public meetings and in August of 2004 passed Development Charges By-law No. 2604(2004).
The by-law sets out the development charges for Residential development , the apportionment of the charges for the various services, the method of collection and the conditions under which a development is subject to the charge and the exemptions.
In accordance with the requirements of the Act and the By-law, a development charge can be applied as a condition of any of the following, where the development of the land will increase the need for services:
Development Charges By-law
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In new development, property owners will be required to either set aside a certain amount of land for parkland or alternatively pay cash-in-lieu of parkland dedication. Parkland dedication or cash-in-lieu thereof is required pursuant to the provisions of Section 42 of the Planning Act, or any successor thereto, as a condition of development or redevelopment of the lands within the Town, in the amount of two percent (2%) for commercial or industrial and five percent (5%) in all other cases.
In addition to Town Development Charges and Cash-in-Lieu of Park Dedication fees, the Region has Regional Development Charges that are imposed on new development. For more information please click here.
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