City council will decide Wednesday whether to take further steps to defer more than $5 million in development charges (DCs) on two Barrie residential projects.
Deferral requests for projects on Serenity Lane, and on Harvie and Beacon roads, could be sent to staff for further consideration - with a report back to the city’s finance and responsible governance committee.
Mayor Alex Nuttall said last week the deferral has to move the projects ahead, and assure the Dcs.
“We don’t want to be on a never-never plan,” he said. “There’s got to be a trigger (for DCs).”
Development charges are designed to recover the capital costs associated with residential and non-residential growth within the city, from developers, so that existing residents don’t have to foot the bill.
The first (DC) deferral request is for 1-23, 10, 20 and 30 Serenity Lane, formerly 521 Essa Rd., where Centreville Homes is currently proposing to construct 48 townhomes. The Development Charges Act and Barrie’s development charges bylaw require DCs to be paid before building permits are issued.
Centreville is instead requesting DCs of almost $4 million be deferred until either occupancy or condominium registration.
Cesare Bauco, speaking for Centreville at the April 9 finance committee meeting, asked for the deferral due to the ongoing uncertainty and difficulty of financing projects.
“We are no different than anyone else but we figured if we don’t ask we shall not receive,” he said. “Based on what we’re seeing in the market place, the ability to finance projects has been very, very difficult.”
Bauco said Centerville could build the townhouses in 10-12 months once the DC deferral comes into force.
But Coun. Gary Harvey, finance committee chairman, has concerns.
“Because the site’s been sitting basically idle most of the years since it was approved other than the initial infrastructure, but now you’re coming to committee advising that you’d be able to build all these townhouses in 10-12 months,” he said. “I struggle to see how it can go from so slow over years to all of a sudden pedal to the metal and get this done.”
“We were in a period where things took a long time to achieve,” said Bauco, noting the townhomes would be built using a pre-manufactured wall system.
“We’ve encountered many delays, and coming out of COVID with the real estate market being where it is in the last few years, lending criteria has become so difficult,” he said.
In a similar case, DC deferral is also being requested for a residential development fronting onto the future extension of Beacon Road.
ASA Developments is proposing to construct 12 single-detached homes, in addition to 67 townhomes and a 52-unit apartment complex there.
ASA is requesting that DCs for the 12 single-detached homes be deferred until the closing of the lots, rather than when building permits are issued.
DCs for the development of these 12 homes are estimated to be $1.3 million.
Michael Prowse, the city’s chief administrative officer, said staff are working on a DC deferral policy and a draft could be before council in approximately four weeks.
