Item - 2013.EX33.1

The Executive Committee held a statutory public meeting on July 3, 2013, and notice was given in accordance with the Development Charges Act, 1997.

The City of Toronto collects development charges from new construction to pay for a portion of net municipal growth-related capital costs.  The City’s current development charges by-law expires on April 30, 2014.  A new Development Charges Background Study has been prepared pursuant to the Development Charges Act, 1997.  The purpose of this report is to present the 2013 Development Charges Background Study and the proposed development charges by-law for consideration at a statutory public meeting. 

Development charges rates, as set out in the background study, are calculated on a cost recovery basis and represent the maximum charges that can be imposed.  These represent notable increases over current levels and are primarily the result of revised growth forecasts, updated capital programs, and discounts in the current charges.

If the recommended charges are adopted by Council, at the end of the proposed phase-in period, residential development charges would increase by about 90% and non-residential development charges (i.e. primarily retail charges) would increase by approximately 30% over current levels.

The proposed by-law continues many of the current policies, including exemptions for affordable rental housing, industrial development and employment uses qualifying under the Imagination, Manufacturing, Innovation and Technology Financial Incentives Program.  The non-residential charge would continue to apply to the ground floor only of non-exempt, non-residential development (primarily retail).  In addition, the Tier 2 Toronto Green Standard development charges incentive program is proposed to be continued at the levels approved in the 2009 by-law.  These and other definitional changes in the proposed by-law are unaffected by the transition provisions, which apply only to the level of the charges, and shall be effective from the date that the by-law comes into force.

Proposed transition provisions implement the changes in the rates over a period of time in order to mitigate the impact of the new rates on development applications that are well along in the development approval process and to allow for an orderly implementation of the new by-law.  The change in the rates would be phased-in over a nine month period with full implementation by July 1, 2014. 

After the statutory public meeting, it is proposed that staff report to the October 8, 2013 meeting of City Council on the results of the public meeting and any recommended changes to the by-law.