Kingsville proposes 50% cut to development charges to unlock sewer funding

New homes are constructed in Ottawa on Monday, Aug. 14, 2023. THE CANADIAN PRESS/Sean Kilpatrick

Kingsville could cut development fees in half in order to unlock major federal-provincial funding for infrastructure.

A report going to council Monday night has administration seeking approval to apply for a new Canada-Ontario program and reduce development charges by 50 per cent for three years.

In return, the town could get up to 90 per cent funding for sewer upgrades and wastewater plant expansion needed to support rapid growth.

Deputy Mayor Kim DeYong says local infrastructure is already being stretched.

“There is growth opportunity in Ruthven. There’s subdivisions waiting to be built that are essentially almost entirely on hold because of the capacity,” she said.

“So I would say that the sewage plant and the sewers in Ruthven are critical if there’s going to be residential growth in Kingsville.”

According to DeYong the town has shovel-ready projects, which is one of the main criteria for approval.

“We’re looking for about $60 million to fund these big projects and the province’s grant has stated that they will offer up to 90 per cent funding. So if the province is handing out dollars for infrastructure, Kingsville is ready to accept them,” said DeYong.

She says current development charge rates could be cut significantly.

“We charge about $20,000 per home now and with this reduction, over the next three years, it will be going down to $10,000 per home,” she said.

“I just hope that that savings is passed on to the purchaser.”

Without provincial funding, staff say the town would likely need to take on significant debt, and development charges could rise by about $20,000 per home, increasing the cost of housing.