Pelham is increasing its development charges for the first time since 2018. Pictured: Pelham Mayor Marvin Junkin. Photo Credit: Niagara Region.
The Town of Pelham is increasing its development charges for the first time since 2018.
As a result, developers will face a 19.5 per cent increase in residential and non-residential charges.
This means that residential fees will be hiked to $34,999, an increase from the previous $29,240. Non-residential units will be increased to $16.35 per square foot, climbing from $13.47.
Development charges, which are one-time fees, are paid once developers have received a building permit. The Town has said that the increase was necessary to meet the municipality’s essential infrastructure needs, including water and wastewater pipes, roads, and fire services.
It was originally proposed that development charges increase by around 30 per cent. While that number was ultimately lowered, significant apprehension remains about the potentially negative impact that the higher charges could have on getting new structures built.
Chuck McShane, CEO of the Niagara Home Builders’ Association, pleaded that Council not approve the hikes until more consultations had taken place, and maximum fairness could be ensured for all members of the community, including residents and homebuyers.
Stephen Kaiser from Kaiser and Associates raised concerns that the process through which the relevant bylaw was constructed did not adequately include input from local developers. He also said that the hike requires new homebuyers to bear an outsized burden in comparison to existing taxpayers.
Pelham Mayor Marvin Junkin, Town Treasurer Quinlin-Murphy and members of the Council defended the development charges hike. Junkin said that staff worked closely with McShane to reduce the hike, while Quinlin-Murphy noted the rising costs of construction in all municipalities since six years ago.
Council members also expressed a variety of views on the hikes. Ward 1 Councillor Wayne Olson said that the bylaw was reasonable but indicated a belief that the future cost of growth is not entirely captured by it.
Brian Eckhardt, the Ward 2 Councillor, was glad that staff reduced the hike and kept it under 20 percent. He also shared, however, that he does not understand how Pelham oversees development charges, and pondered why more resources are not applied to new development initiatives.
Ward 3 Councillor Shellee Niznik spoke of the need to maintain essential services and infrastructure while noting that her own taxes have increased significantly in recent years.
Despite opposition from community stakeholders, council voted to approve the development charges bylaw on Dec. 4.
Nick Redekop completed his Honours Bachelor of Arts Degree in Labour Studies at Brock University. He has previously served in municipal and federal politics. In his free time, Nick enjoys following sports, taking part in outdoor activities, and reading biographies. Nick resides in Niagara Falls
