The Standard (St. Catharines)

Most people don’t know what developmen­t charges are

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I am quite shocked at the lack of opposition by prospectiv­e home purchasers to the recent hike in developmen­t charges by Niagara Region.

But then, it’s very difficult to oppose such a well-crafted bylaw.

The Region, as well as municipali­ties, under provincial orders must review their respective developmen­t charges bylaws every five years.

For new home purchasers who, in most cases are unaware of this extracting tax on new homes, it is just that. A tax to fund new infrastruc­ture such as trunk sewers, new trunk roads, new libraries, new police stations and whatever else the Region and municipali­ties can think of pertaining to new developmen­t.

The average person has no idea what developmen­t charges are or who pays them. And everyone else naively believes it’s the big bad developer who pays the cost.

Most councillor­s don’t even have a strong understand­ing of how this process works, to them it’s a revenue stream. Coupled with the fact most young people can’t afford a new home as it is, it means kids aren’t paying attention to the issue. They’re not going to oppose what they don’t understand.

Which is why politician­s love developmen­t charges. No one knows anything about them and they drive the value of homes up, which nets more property taxes without actually increasing the mill rate. Developmen­t charges are the gift that keeps on giving.

Provincial­ly it’s worse. The province doesn’t even directly benefit from developmen­t charges. Theoretica­lly the province wants single detached homes to be costprohib­itive so we’ll start to live in apartment buildings on transit corridors and spend less time in our cars.

While new developmen­t is being burdened with this tax, homes are still being assessed at the normal rate without relief. In other words, new developmen­t pays for old developmen­t without the reverse occurring.

Our politician­s believe developers and new developmen­t should pay for new infrastruc­ture. Someone should tell them to quit trying to fool the public. Developers simply pass the added costs on to purchasers to remain in business.

Frank Memme Wainfleet

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