The City of Hamilton is moving forward with updating its Community Benefits Charges bylaw to maximize the amount of this sub-type of development charge it collects on new housing developments.
Despite the name, the Community Benefits Charge has primarily used by the City of Hamilton to build municipal administrative facilities and parking structures.
The City plans to collect four percent of land value on all developments as the community benefit charge.
Developers are concerned that increasing development charges will make some development projects nonviable.
“I just caution the city on a couple things,” Mike Collins-Williams opened his remarks at the Development Industry Liaison Group meeting. “We are in the worst sales environment for mid rise in a high rise since the 1990s.”
“The market is not strong. It is very weak and could potentially get worse.”
“Let’s just say there are companies out there in distress and, the timing of implementing a new tax, in the worst sales environment in nearly three decades is clearly a challenge, especially as we are, phasing out some of the [development charge] reductions downtown.”
Collins-Williams questioned how new municipal parking facilities for tourism and major events being funded by community benefits is tied to new residential units.
“The nexus between new residents, new population and parking and landfill and some of the items being considered is not strong. I would say it’s just the I’m a little baffled why new residents are paying for parking facilities.”
City councillors will debate a draft Community Benefits Charge at the October 17, 2024, Council Audit, Finance & Administration Committee meeting. Following Council ratification on October 23, there will be a three month public consultation period.
Council is tentatively schedule to hold the mandatory public hearing on a final bylaw on January 16, 2025.
Production Details v. 1.0.0 Published: September 9, 2024 Last updated: September 9, 2024 Author: Joey Coleman Update Record v. 1.0.0 original version