City Council has decided a complaint regarding the City’s Development Charge By-law in favour of a property owner/developer.
Under the Development Charges Act, 1997, a person required to pay a development charge may complain to the municipality imposing the development charge that the amount of the charge was incorrectly determined or there was an error in the application of the development charge.
2144113 Ontario Limited brought such a complaint in respect of its development of 945 Southgate Drive, Guelph, stating that the development charges for the project should have been calculated at the industrial rate, rather than the (higher) commercial rate.
Pursuant to the Act, Council held a formal hearing into the complaint, received written evidence and heard submissions from the property owner and City staff. Based on the circumstances of this particular case, Council decided in favour of the complainant and ordered that the City enter into a new agreement with the owner of 945 Southgate Drive.
Under the new agreement, the development charges for this project will be calculated at the industrial rate, and higher commercial development charge rates will be levied only where applicable for commercial tenants in the plaza. The commercial rate will be applied when the tenants’ finishing building permits are issued.
In its decision, Council asserted that it is important for the City to encourage speculative industrial construction.