A request for a development charge deferral in Bradford has itself been deferred.
Based on a motion from Ward 6 Coun. Nickolas Harper, committee of the whole recommended getting more information from staff in response to a request from Pat Agostino for the town to defer development charges (DCs) for his vacant residential lot at 68 W. Dykie Court, during its Oct. 15 meeting.
A report from finance director and treasurer Ian Goodfellow explained the town’s DCs for Agostino’s planned single-family home would be about $64,000, and even if those were deferred, DCs to the county of about $13,900 and to the ministry of education of about $4,900 would still be due once the building permit is issued.
Goodfellow recommended denying the request, not only because the town’s DC accounts had a deficit of nearly $141 million at the end of 2023, but also out of “significant concern,” for the precedent which could be set.
“Should this request be granted, it could be the start of numerous future requests to have the town continue to cashflow the cost of new development; a position that is not sustainable,” he said in the report.
While the town currently has seven DC deferral agreements in place, Agostino’s represents the first to the town related to the construction of a single-family home, according to Goodfellow, who explained the existing agreements include three for hotels, one each with the developers of the West Gwillimbury Power Centre and the Holland Street West SmartCentres plaza, one for the severance of a residential lot on Simcoe Road and one for the accommodations of seasonal farm workers.
Despite that, a vote on staff’s recommendation to deny the request failed in a four-four tie. Ward 3 Coun. Ben Verkaik was absent.
Ward 4 Coun. Joseph Giordano noted the importance of encouraging developers to build, especially as he said housing starts are down, and suggested implementing a six-month grace period for DCs for small developers while the industry is slow.
Chief administrative officer Geoff McKnight called that proposal an “interesting idea,” but noted staff would need time to investigate it and report back, adding that the benefit may be limited as he estimated fewer than 10 people per year build their own homes.
Ward 7 Coun. Peter Dykie agreed with the importance of supporting smaller builders and noted frequent radio ads from the Building Industry and Land Development Association (BILD) criticizing municipalities for inflating the cost of housing through fees and charges.
“I’m open minded,” he said, in supporting McKnight and staff to create a solution, while worrying about opening “a can of worms” or “Pandora’s box.”
Chair and Deputy Mayor Raj Sandhu agreed “it’s difficult” to deny Agostino’s request, but stressed that deferring DCs should only be done for the benefit of the community and emphasized the risk of setting a new standard by providing special treatment.
“You make a decision on one, you’re making a decision on all of them” he said.
Unlike Agostino’s request, past agreements were based on supporting initiatives that provided positive economic spin-offs, or incentivizing developments not otherwise available in town as a way of adding community amenities, according to the report.
Anticipating council might disagree with the recommendation to deny the request, Goodfellow included three potential alternatives:
- Approve the request but with specific requirements to pay before occupancy, register the agreement on the property title, include a default clause with penalties and include a termination date of Sept. 30, 2027.
- Approve the request with all of the conditions in alternative 1, but also add annual interest of five per cent on the unpaid DCs from the date of the building permit until the DCs are fully paid, similar to existing agreements.
- Approve the request with a repayment plan based on terms and conditions determined by council.
Support for alternative 2 came from Ward 5 Coun. Peter Ferragine and Giordano, before Harper moved to defer, as it’s “not fair” to ask council to set a precedent without guidelines.
“I’d like some more information ... so that we are able to make a calculated and more informed decision,” he said.
Recommendations from committee of the whole are considered for approval at the next regular council meeting.
