Developers in Niagara soon able to recoup brownfield remediation costs
GRIMSBY — In an effort to encourage the redevelopment of lands like the Fifth Wheel site in Grimsby and brownfields across Niagara, the region is changing its incentive program.
Developers will soon be eligible to recoup 100 per cent of the costs of remediation for brownfield sites, instead of having their development charges waived.
For those who will pay more to remove soil contaminants than the costs of development charges, this change is advantageous. For those whose remediation costs are less than what they pay in development charges, not so much.
“Development charges are set to offset capital that is going to be required as a result of growth,” said Grimsby’s regional council representative Tony Quirk. “We’re looking to keep the various brownfield incentives in there to make sure we get the right sort of development where we need it.”
Every five years, the region renews its development charges bylaw. That review is currently taking place.
“We’ve had incentives in our development charges bylaw to encourage development in various areas,” said Quirk.
Those areas in Grimsby include the Niagara gateway corridor, brownfields areas, and the old Fifth Wheel truck stop. Brownfields, as well as the Fifth Wheel land, have contaminants in the soil that need to be removed for rezoning as a residential space.
“The incentive program that’s currently in place is still quite generous,” said Quirk, explaining that in some cases all of the development charges can be removed for the development.
Losani homes, the developers working on the Fifth Wheel site, have made their plans based on the current development charges scheme, said Quirk. “If we take that away, it could cost them as much as $6 million more under the new system, depending on the contamination,” said Quirk. Losani has asked the region for a transition period of 10 years; the region has given them four.
Before the new development charges are passed, regional councillors have asked for more time to look over what projects are included in the development charges bylaws across Niagara.