Growth slows, but pipeline remains strong in Scugog development report

DARRYL KNIGHT, Local Journalism Initiative Reporter for The Standard

SCUGOG: A year of transition and tempered growth defined development activity across the Township of Scugog in 2025, as municipal staff took on full responsibility for planning approvals while navigating broader economic headwinds.

The Planning and Community Affairs Committee received the 2025 Planning and Building Development Activity Report during its April 20th meeting, offering a detailed look at how shifting market conditions and legislative changes shaped the local development landscape.

For the first time, Scugog handled all planning applications internally following the transfer of responsibilities from the Region of Durham. The move was both a challenge and an opportunity, requiring new processes and increased capacity while maintaining service standards.

Despite those changes, development activity remained steady overall.

Building permit revenues reached just over $513,000 in 2025, about 18 percent below the six-year average, reflecting a slowdown tied to higher interest rates and a cooling housing market. Permit activity also declined, with 242 permits issued compared to 418 in 2024.

Development charges told a similar story. The Township collected approximately $1.1 million in 2025, well below the recent annual average of $1.9 million. Much of that revenue came from earlier phases of the Heron Hills subdivision.

Regional Councillor Ian McDougall raised concerns about the implications of fluctuating development charge revenues.

“For the township, this represents significant figures. What would happen if we were no longer able to collect those development charges? What will we have to forego?” he asked.

Director of Finance Laura Barta said those revenues are built into long-term financial planning, and shortfalls could have ripple effects.

“Growth should pay for growth, and if there was a shortfall, the existing tax base would have to pick up that shortfall,” she said, noting capital projects could be delayed or funded through alternative means such as internal transfers or borrowing.

Mayor Wilma Wotten echoed those concerns, pointing to the Township’s limited commercial and industrial tax base and recent provincial changes allowing development charges to be deferred until occupancy.

While building activity slowed, the report highlights a strong pipeline of future development.

Planning staff processed 232 residential units at various stages of approval in 2025, with additional subdivisions expected to move forward in 2026. Several major residential projects, including new phases of Heron Hills and developments in hamlet communities like Epsom and Nestleton, are anticipated to expand the Township’s housing supply.

Industrial and commercial growth also continued, with projects such as a new Canada Post distribution facility and expansions to local industrial operations progressing through the approval process.

In total, Planning Services handled hundreds of applications and inquiries throughout the year, including zoning reviews, minor variances, and pre-consultation meetings, indicating that developers are preparing for a potential market rebound.

Looking ahead, 2026 is expected to bring continued pressure on staff as Scugog advances major policy updates, including an Official Plan review, new guidelines for additional dwelling units, and studies on short-term rentals and site alteration regulations.

Maintaining a steady supply of buildable land while delivering efficient service will be key as the Township balances growth with financial sustainability in an uncertain economic climate.