Kingsville halves development charges to boost chances for infrastructure funding

New homes under construction in London, Ont. (File)

Kingsville council unanimously approved cutting development charges by 50 per cent for three years Monday, meeting a requirement to reduce fees by 30 to 50 per cent under a new federal-provincial infrastructure program.

Administration said the town faces a tight June 19 deadline to submit its grant application, and is putting forward shovel-ready sewer and wastewater projects worth about $60 to $65 million.

With the treatment plant already operating above 90 per cent capacity, staff said the upgrades are needed to support growth.

Council heard the trade-off would be about $2 million in lost development charge revenue, but Coun. Sheri Lowrie said the return could be much larger.

“We give up a couple million dollars, but we could potentially gain the millions upon millions that we need for this infrastructure,” Lowrie said.

If successful, the town could see up to 90 per cent of project costs covered through the grant, which Coun. Larry Patterson strongly supported.

“I like the idea that we’re shovel ready and we’re also in need, so I think that gives us a better chance of receiving,” he said.

“At the very end we will still be meeting with administration and council to see if we still want to continue once the province gets back to us.”

Some councillors also questioned whether fee reductions would actually lower housing prices.

Mayor Dennis Rogers wanted firm commitments from developers after what he described as positive conversations over the weekend.

“I would like for them to be back here when this comes back, is for them to be on the record, saying they’re going to pass this 10 per cent savings back on to those of buying homes,” Rogers said.

Funding decisions are expected this summer, but construction would depend on approval and could take years to complete.

Once the town hears back from the province, a report will return to council to determine next steps.