Kawartha Lakes weighs the balance between growth funding and housing costs

DARRYL KNIGHT Local Journalism Initiative Reporter for The Standard

KAWARTHA LAKES: Concerns about housing affordability and business competitiveness took centre stage, at a recent Kawartha Lakes council meeting, when residents and developers weighed in on a proposed by-law to update the city’s development charges.

As required under the Development Charges Act, a statutory public meeting was held, on October 21st, to review the proposed by-law and its background study. Dr. Adam Found, Manager of Corporate Assets, and Sean-Michael Stephen, Partner at Watson and Associates Economists Ltd., outlined the findings and explained the process.

“Development charges are a key funding tool which can assist municipalities to recover the capital costs associated with growth,” said Dr. Found. “Before any by-law is passed, a background study must be made available to the public, and input from stakeholders is an essential part of that process.”

Mayor Doug Elmslie thanked staff and the consulting team for their work, noting, public participation is a vital part of the review. “We know development charges play a major role in how we build our communities,” he said. “Council appreciates hearing from everyone [regarding] how we can best balance growth with affordability.”

Several local and regional stakeholders took the opportunity to share their perspectives on the proposed increases. While most supported the principle, growth should pay for growth, many voiced concern over the size and timing of the proposed rate adjustments.

Rebecca Schillemat, representing the Peterborough and Kawartha Lakes Home Builders Association, acknowledged the city’s efforts to plan for future growth but cautioned against moving too quickly. “We recognize development charges fund the infrastructure needed to support new residents and businesses,” she said. “But we’re concerned the proposed increases could negatively affect housing starts and affordability. We’re asking council to consider phasing in any changes.”

Developers echoed similar concerns. Jeff Solly, of Tribute Communities, said, while his company supports fair cost recovery, the magnitude of the proposed increase could put new homes out of reach for many families. “Developers ultimately pass those charges on to homebuyers,” Mr. Solly noted. “We’re in the middle of an affordability crisis, and a phased approach would give everyone a chance to adjust. We’d also like to see some flexibility, through targeted exemptions and continued dialogue with staff.”

Speaking on behalf of SmartCentres Inc., Peter Thoma, of urbanMetrics Inc., focused on the potential impact on commercial development. “The proposed increase for non-residential projects is significant and the removal of the first 2,500 square-metre exemption could harm the competitiveness of Kawartha Lakes, as a business community,” Mr. Thoma said. “We’re asking council to demonstrate restraint and consider maintaining that exemption.”

Local developer Mark Wilson, of MVW Construction and Engineering, suggested delaying implementation for a year, to allow the housing market to stabilize. “We’ve seen a notable slowdown in both sales and housing starts,” he told councillors. “Introducing higher development charges right now could undermine housing targets. A twelve-month delay would give the market time to normalize and let new developers gain their footing.”

Council received four written submissions, in addition to the public presentations, representing a range of local business and development interests.

Revised versions of the proposed by-law and background study will return to council for consideration, at the regular council meeting, on Tuesday, November 18th.

Mayor Elmslie closed the session by thanking all participants for their input. “Council has heard clearly, while there is strong support for growth paying for growth, there is also concern about affordability and timing,” he said. “Those comments will inform the final version coming forward next month.”