An update to the background study for Midland’s development charges was presented at the recent regular meeting of council, and with it came concerns regarding affordable housing on the site of a much-anticipated Balm Beach Road development project.
The presentation by managing partner Sean-Michael Stephen of Watson & Associates was given at a public meeting with several local developers in attendance. A 30-slide summary was provided for council and attendees which pared down the 230-page study into digestible facts.
“Development charges are a tool that are available to municipalities to fund the growth-related capital costs of new development that is provided under the authority of the Development Charges Act,” said Stephen. “The types of capital costs that we’re referring to are in addition to those local service costs that would be installed directly as a condition of development, within a subdivision for example.”
To establish new development charge rates, municipalities are required to have a study undertaken for adopting a related bylaw; the study and bylaw were funded entirely through development charges as per Bill 185, the Cutting Red Tape to Build More Homes Act, 2024, which received Royal Assent last year.
Of particular interest to council members were two numbers dealing with development charges for fully-serviced single and semi-detached residential units: in the grand total town-wide area of Midland, currently at $15,500 but calculated for a $18,100 change (an increase of $2,600 or 17%); and that in the immediately-adjacent Balm Beach area, currently at $28,200 but calculated for a $37,000 change (an increase of $8,800 or 31%).
With a proposed 455-unit development on the horizon at 565 Balm Beach Road, which would include much-needed affordable and attainable housing, council members raised concerns that excessive development charges at the town’s edge could be a deterrent in having those homes built.
Coun. Bill Meridas, who's become somewhat of a watchdog on town costs, stated he was “dumbfounded” by the increase and hoped developers would speak to the matter (no member of the public spoke up during their opportunity).
However, Mayor Bill Gordon said he had contacted many of the local developers to alert them of the public meeting and the development charge study and bylaw.
"That could be the difference between a 450-unit development, and maybe having to knock it down to 250 (units),” Gordon told MidlandToday following the meeting regarding the 565 Balm Beach Road project.
“Our goal here, because these aren't normal times, is to spur development (and) incentivise developers to actually do a project and get shovels in the ground sooner than later and eliminate as many barriers as possible.”
A request was made by the town for additional exemptions to 'incentivise' housing, and within the presentation two potential options were offered: A 50 per cent reduction to all residential development charges for two years; or fully exempting development charges for three-bedroom plus rental units.
Gordon said those options were “unrealistic.”
“I proposed a third one,” he said, “which is: allowing them to forego paying the development charges until they actually sold the home and there's an occupancy permit issued.
“Fifty per cent of that large increase for Balm Beach Road is what it is, because I think developers accept that it does have to cost more,” Gordon added. “But we need to find ways to not scuttle a project that, by all accounts, looks like they want to move quickly on it – hence the MZO (ministerial zoning order) as a path to get the approvals.”
With the public meeting concluded, next steps include receiving feedback from council and the public, amending the study and bylaw on that feedback if required, followed by consideration of bylaw approval by the next regular council meeting on March 19 and before an end-of-month expiry date for the current bylaw.
The updated development charges background study report, including slideshow presentation, is available in the council agenda on the town of Midland website.
Council meetings are held every third Wednesday, and can be viewed on Rogers TV cable channel 53 when available, or through the livestream on the Rogers TV website. Archives of council meetings are available through Rogers TV and on the Town of Midland’s YouTube channel.