North Bay home builders concerned about development charges

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North Bay home builders concerned about development charges

NOCN staff writer

North Bay home builders will be expected to pay $7,375 in development fees for a single or semi-detached home following a city council decision in May, representing a 1.9 per cent increase from the previous level.

The increase, representing the general consumer price index, is lower than a 3.9 per cent increase, based on the construction price index.

Rick Miller, representing the North Bay and District Home Builders Association, says the association doesn’t oppose the 1.9 per cent increase, but expressed concern that if development fees rise too much, the city risks driving new construction into surrounding communities.

“Development charges are one of our most difficult costs to explain to customers,” Miller said in a story reported in the North Bay Nugget.

Deputy mayor Peter Chirico said the city is aware of the consequences of raising fees too much. He said many neighbouring communities don’t have the same level of services and infrastructure. “We heard their concerns and we listened to the development community.”

Chirico is quoted a saying a 2009 study showed the city could have hiked development fees to $11,774 in five years – but this would be too much for the local development community, so opted for a target of 79 per cent of that figure over five years.