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Cambridgite
May 7, 2009, 11:43 PM
Developers push status quo

By Ray Martin, Times Staff

News
May 07, 2009

The skyline of Galt could change significantly if developers can convince the city not to reinstate development charges in downtown cores.
“This is one of those rare cases when it’s a good time to do nothing,” city realtor Tom Watson told council, Monday.

City planners are currently undertaking the mandatory five-year review of city development charges. Officials have to file any changes with the province before July 1 or no development charges can be levied for the next five years.

Development charges are fees the city levies on developers to cover the growth-related cost of building new infrastructure.

It can cover hard costs, like expanding water filtration and sewage facilities, or soft costs, like expanding libraries or building new fire halls.

Jim Kirchin, city director of planning operations, said one of the options being considered would give council the ability to waive charges on a case-by-case basis if the development incorporated green technology or preserved the city’s heritage or environment.

Among the many changes eyed is the reinstatement of development charges in the city’s three downtowns and revising portions of the financial incentives package designed to spur growth.

At Monday’s meeting, developers were lining up to urge council to maintain existing exemptions and incentive programs.

Watson, a realtor in Galt for 40 years, said he has seen many incentive programs come and go.

“There have been a lot of initiatives that have been well-meaning that have fallen short of the mark,” he said.

Watson said he is currently working on a project, which could reshape a portion of Main Street, that wouldn’t be viable if the charges are reinstated.

Paul de Haas, president of Haastown Holdings, which is currently building the Waterscape on the Grand condominium towers, thanked the city for giving an exemption to the first phase of his project.

“It has taken three-and-a-half long years to get to where we are today and I’m proud to confirm the first phase of Waterscape is heavily into construction with 75 per cent of the units presold.”

de Haas said the project would not have gotten off the ground without the assistance of the city’s incentive package. The Richmond Hill developer said that Waterscape is “not a one-time project” and that, once completed, its residents will be paying $2 million annually in property taxes.

The Waterscape developer told council the plans for the project’s second phase have been made based on the incentive program being there.de Haas said he currently is working with another investor to see the next phase of the project completed.

Miles Lauzon, chair of the city economic development advisory committee, commended staff for the work done on the development charges review, stating that charges in key areas could actually drop.

Lauzon said his committee, after reviewing the report, found non-residential development charges could drop by as much as 27 per cent. However, anticipated increases in regional development charges could, combined with the city’s charges, increase the development levy by 80 per cent.

“The problem with development charges is not here, but at the region,” he said. “We would urge council to be aware for this situation and try to do something about it.”

Lauzon also asked council to continue to waive its development charges in the three core areas.

Ami Tsarfati, representing the Grand Lofts condominiums, told council that the reintroduction of development charges in the core areas “could stymie development,” and the incentives program is “helping to bring back the city’s downtowns”.

Steve Haliki, a Preston developer told council that while larger developers might be able to absorb new charges, small developers couldn’t.

“Development charges would not make (small) projects feasible at all,” he said.

http://www.cambridgetimes.ca/news/article/173488