Industrial charges final piece of puzzle

Niagara Region’s draft development charges bylaw is headed back to regional council’s next full meeting for final approval after the corporate services committee dealt with some final amendments.

Going into Wednesday’s committee meeting, some problematic issues remained — none more so than development charges for industrial properties and expansions.

Here are five things you need to know about the process.

1. What are development charges?

Development charges are onetime fees paid by developers to recover municipal growth-related capital costs. The charges are fees collected from developers when a building permit is issued. The funds help pay for the cost of infrastructure required to provide municipal services to new development, such as roads, transit, water and sewer infrastructure, community centres and fire service and police facilities.

2. Are there exemptions?

Some developments are exempt under the Development Charges Act. A set formula established by the act determines the total development charges that need to be collected by a municipality, and anything less has to be made up from other sources such as your residential property taxes or municipal reserve funds.

3. What was the main takeaway from Wednesday’s meeting?

The committee approved an amendment to defer charges for industrial developments for up to three years from the date the building permit is issued, plus five per cent yearly interest. The costs can be offset by a grant program, which determines the total exemption based on jobs created.

The representatives of Niagara industry who spoke at the meeting made the case that any industrial development charges would backfire on Niagara, even the deferred ones are tied to employment.

Tim Clutterbuck, representing the Valbruna Corp., a steel company with a plant in Welland, said the charges could convince it to build a new forge facility elsewhere.

4. Is Niagara competitive with other areas regarding industrial development charges?

George Spezza, director of economic development in Niagara, said yes.

“We are low on the charges for industrial development,” Spezza said. “We are below many jurisdictions around us and in the Greater Toronto Area. I understand the feedback we are getting from the industrial community. We support our industrial manufacturers in many ways here in economic development. They are an important sector in the region and face real challenges.”

5. What did councillors have to say?

Barb Butters, Port Colborne councillor:

“What I struggle with is these big companies are not going to look at Niagara favourably. It is too complicated, and they want to just go where it’s simple, straightforward, and they won’t have to pay. But then I hear from Mr. Spezza that we are competitive, so I’m having a hard time with who’s right on this.”

Wayne Redekop, mayor of Fort Erie:

“I don’t want to spend a lot of time creating paperwork for companies that want to make investments and create jobs, which have their own economic spinoff.

“I have been dealing with development charges for 25 years. The Town of Fort Erie has never charged industrial development charges. There is a philosophy to that, and I think Tim Clutterbuck best articulated it. We won’t get large-scale investments if we are in a globally competitive market and can get all kinds of incentives elsewhere.”