Essex Council provides feedback on proposed County-level Development Charge

By Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press

County of Essex Council will have to consider whether or not to adopt a Development Charges (DC) By-Law to pay for growth-related expansion of the services provided at the County-level in the future. Knowing this, members of its administration are visiting the seven local municipalities to host open house meetings on the matter to collect feedback.

So far, these open house meetings have been hosted in Amherstburg, Kingsville, and Leamington. The meeting with Essex Council took place on May 20, with further events taking place in LaSalle on May 27, Lakeshore on June 3, and Tecumseh on June 10.

According to Essex Free Press files, at the April 2 County Council meeting, support was given to Essex Mayor Sherry Bondy’s motion to host public consultations in each of the local municipalities, and to fund the cost to do so from the County’s Rate Stabilization Reserve.

County Council is comprised of the mayors and deputy mayors of the seven local municipalities.

The public consultations in each of the seven local municipalities were meant to be hosted before County Council has to decide on whether it should pass a by-law on the matter, and if it does, how it should be crafted.

There is no timeline to pass a by-law, with the public consultation component of the process added, giving County staff time to make some modifications or go back to County Council with a report detailing the feedback received. That will allow a by-law to be drafted that the County would want to move forward with, Director of Financial Services/Treasure, Melissa Ryan, said.

Getting the public feedback has been a good exercise, so County Council can make an informed decision based on feedback, Ryan noted, adding County staff members have also met with representatives from planning and treasure departments at the local level, in addition to developers and community partners.

All seven local municipalities have their own Development Charges By-Law, which is imposed on developers to pay for growth-related capital costs. The County does not have one, nor has it ever. In the County’s case, that would include highway, EMS, long-term care, waste diversion, public libraries, and studies related to the five services.

Last month, County Council was provided the information on the matter, but will have to decide whether or not to approve DCs at the County-level in the future.

The calculated residential Development Charges for the County of Essex was presented as $12,956 per single-detached residential unit, $7845 for rows and multiple-unit dwellings, and $6895 for other residential units. For non-residential, proposed Development Charges are $46.34 per square meter for commercial/institutional.

This is the max amount allowable. County Council can choose a lower amount.

Previously, it was noted if the County chose to implement the maximum DC on residential, the total charge for a single-detached unit, for instance, including the municipal DC, would be $48,113 in the McGregor service area and $38,176 for the Harrow Service Area in the Town of Essex.

Last month, Ryan explained that given that growth in the region has traditionally been stable and manageable, the pay as you go approach has served the County well. However, “growth is coming faster and at a higher cost than ever before.”

To ensure the County does not place an unsustainable burden on the tax rate, Ryan said previously tools needed to be explored, and Development Charges are tools the province expects municipalities to use before expecting financial support.

Development Charges help ensure new growth contributes its fair share, rather than placing the entre burden on existing taxpayers.

In May of 2024, members of Essex County Council approved funding a Development Charges Study by utilizing up to a max of $60,000 from the Rate Stabilization Reserve, which Hemson Consulting Ltd. is undertaking. This firm provided an update to County Council in November.

The total DC would vary as each municipality has its own rate.

Last month, Stefan Krzeczunowicz, Associate Partner of Hemson Consulting Ltd. noted DCs are imposed through a by-law, which has a minimum lifespan of ten-years.

He added the current County population is 211,980, and is expected to grow to 258,400 by 2041.

Councillor Katie McGuire-Blais is opposed to the addition of County Development Charges.

“I do not think these will be good for the Municipality of Essex, we are already growing at a slower pace than the rest of the County, and I think this will just slow us down even more,” she said. She believes the time is wrong to move forward with this initiative with the provincial mandate to build more and remove red tape. “I think adding County DC charges goes against that mandate.

“I am surprised that the County would impose these charges at this time, while companies are leaving the country and laying people off. We want to invite companies to come and build here, not deter them.”

Concerns she voiced is what if builders and investors decide that Essex County is too expensive and decide to build and invest in neighbouring regions, where DCs could be much lower.

In asking the question if the County DCs are paid from a development built in the municipality of Essex, if the funds stay in the municipality or go in a general pot, McGuire-Blais learned there would be a general pot for the DC funding to be used as County sees fit.

Bondy noted the County does not have a great public presence, for the most part. In her role, she has noticed many individuals do not know there is the Town of Essex and the County of Essex, with the later being the upper-tier municipal governance structure that oversees County responsibilities, such as County roads, libraries, and EMS.

“So, it will be us – it will be local Councils – getting blamed for the high cost of development fees,” Bondy predicted. “The County will get the benefit, and the Towns will be crucified.”

With local municipalities already collecting their own DCs, and building permits and other planning requirements taken care of at the municipal-level, she imagines it will be the municipalities collecting the County DC charges.

County fees, she believes, should be collected at the County building.

She does believe growth should pay for growth.

“County staff are not forward facing to members of the public,” she said. Hosting the open house was a really great step, which Bondy thanked County administration for doing. The meeting should have been livestreamed, however.

Members of the public at the meeting asked why implement DCs now, when housing prices have skyrocketed and individuals are struggling with mortgage payments. Ryan explained the conversation on the matter began over a year ago, and it takes time to go through the process as legislated.

As a member of the Essex Affordable Housing Task Force, Councillor Kim Verbeek said it is a challenge to get developers to build obtainable or attainable housing.

Krzeczunowicz noted previously there are statutory exemptions/discounts, which includes municipalities and local boards, residential additions and secondary suites, industrial enlargements, replacement dwellings, affordable housing and non-profit housing, and rental housing discounts.

Deputy Mayor Rob Shepley does not see how a CountyDC fee would help with affordable housing, and believes it will only add to the cost of housing. He added the County was in the middle of developing a road study and would like to see that completed first before making a decision on the County DC matter. He does not think it’ll help get more housing established.

For more information on the matter, log onto www.countyofessex.ca/doing-business/planning-and-development/development-charges-initiative/