The City of Toronto Executive Committee will discuss the matter of a new Development Charges Bylaw at its meeting on July 3, 2013. This is a statutory requirement as the current bylaw expires in April 2014, and it must be replaced in order for the city to continue collecting these charges.
Already press reports show a real estate industry apoplectic at the possibility that these charges will double. With all the concern over a possible softening of the market for new units, the last thing they want is yet more cost added to the purchase price. However, what we are seeing is a combined effect of the rising population and the exhaustion of surplus capacity in existing infrastructure, notably transit and water. Much of the new development is concentrated in the central city in former industrial areas that do not possess the infrastructure needed to support their coming new populations.
(Chief Planner Jennifer Keesmaat observed at the “Feeling Congested” session earlier this week, about 70,000 people will call places like Liberty Village and the waterfront neighbourhoods their new home over the coming decade.)
There is bound to be lively debate, especially from the “no new taxes” brigade on Council, but the simple fact is that the city cannot have new development without some way to pay for the supporting infrastructure and services. In this article, I will talk only about the transit component which is the single largest piece of the new DCs rising about 150% from the previous level for residential development. (DCs overall will go up 86% because other categories have lower increases.)