Subsidize development charges for high employers
QuestionsView Results Please explain why, or why not. This is a follow up to my loss leader post. You should read it before voting. A very quick summary is this :-New growth costs money. New growth should pay for itself. However, all new growth is not same 1 million sq ft office complex employs 25 times as many people as an industrial compound of same size. However, they both pay same development charge (should they?) Other municipalities already do this. Development Charge in Guelph for above structure is around $3 million. In Halton it...
Read MoreLoss leader for halton & milton
Walmart, Superstore and other retailers sell hardcover books for less than the cost. Why? It gets people to the store. Specifically, it is better than selling toasters or socks at a discount because it gets the right customer in the store. Customers who buy hardcover books (which is arguably a luxury item) buy other items too. Does your municipality have a loss leader? Something it offers in a discount to attract desirable businesses or residents? The Region should do this for high quality employers. A one million square foot office building employs...
Read MoreAdvice for people stuck with part of development charge in their closing cost
Wow, that was one long title. I’ve been on 5 hours sleep for a long time, so bear with me. I had a very long post figured out that talked about the issue from Halton’s point of view, Mattamy’s point of view and my opinion of what was going on. I think it got detailed enough that the main point got lost. So I decided not to post that. Here’s a very brief summary of the conclusion that post reached:I spoke with many people and the charge / tax / levy / fee is here to stay. If you’re hit with it then you can protest to the Regional Council all you like, but...
Read MoreDevelopment charges: tripple-whammy?
I just thought of something. Say development charges for new homes go up by $20,000. Two things happen :- 1. The person buying a new house needs to get a mortgage of additional $20,000. Their mortgage is $20K higher, so they pay higher interest 2. Since the house price goes up by $20,000 because of the additional tax (ya ya, it’s a tax), they pay higher GST! 3. Their property values are assessed $20,000 higher, so the Town / Region collects more property tax So let me get this straight: first we hit people when they buy a house, then just because we taxed them more, we increase their...
Read MoreThe development charge fiasco
Here is a run-down:The Region passed an approximately $7,888 increase in Development Charges for SDE residential construction Mattamy Homes passed that on to homeowners who have purchased but not closed. Many of them got a $7,888 bill in mail The Region insists that it’s a fee payable by Mattamy and implies that they should not be able to pass it on to consumers. More info in their FAQ Mattamy cries foul, especially since they paid millions in development charges in advance (you can think of it as an interest-free loan). Perhaps the region should not be able to back-charge...
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