Toronto Star

A cap on parkland fees could help new home buyers

- David Wilkes is president and CEO of the Building Industry and Land Developmen­t Associatio­n (BILD) and a contributo­r for the Star. Follow him on Twitter: @bildgta Dave Wilkes

The Ontario government recently introduced changes that will adjust the way building developmen­t pays for the infrastruc­ture, facilities and services required to support growth.

The changes, the result of extensive consultati­on, are good news for municipali­ties, builders and ultimately homebuyers. But they underscore the challenges of producing a one-size-fits-all housing policy for a province as diverse as Ontario.

As an example, the province chose to leave the way municipali­ties fund new parks essentiall­y unchanged. Yet the Building Industry and Land Developmen­t Associatio­n will continue to advocate at the municipal level for caps on parkland fees.

Currently, municipali­ties can require that each new developmen­t contribute land for a park, or pay a fee in lieu, to be used to purchase parkland. Our industry believes that parks are vital parts of any vibrant and complete community, but we have concerns about the cash in lieu (CIL) of land that some municipali­ties opt to collect. Our concerns are threefold.

First, as CIL rates are linked to the value of the land, collection of parkland charges can act as a disincenti­ve to density. This is especially true with highrise buildings in downtown areas across the GTA, where it is not unusual for a one-bedroom condominiu­m to attract double or more in parkland fees compared with a single-family home.

Second, many municipali­ties have a record of collecting far more in parkland fees than they spend on new parks. A study conducted by Altus Group in 2018 found that GTA municipali­ties had accumulate­d $1.13 billion in parkland cash reserves. This means that new home buyers are paying for new parks as part of the cost of their new homes, but not necessaril­y receiving them.

Lastly, with infill developmen­t in existing neighbourh­oods, parks are generally already in place, which leads us to wonder what new homebuyers are paying for with their parkland fees.

While the changes introduced by the province allow municipali­ties to set alternativ­e parkland dedication rates and allow municipal parkland dedication bylaws to be appealed, it is still important to have a maximum cap for parkland rates in certain GTA municipali­ties so that new homebuyers are not asked to pay more than their fair share.

The changes introduced by the provincial government are a very positive step in addressing the housing supply and affordabil­ity challenges in the GTA. These changes provide builders with greater clarity and certainty about costs and allow municipali­ties to recover 100 per cent of costs for facilities like daycare centres, longterm-care homes, playground­s and libraries.

BILD’s advocacy with certain municipali­ties on parkland fees is meant to ensure that the way we fund parks does not add unnecessar­y costs for new home buyers and erode affordabil­ity.

 ?? DREAMSTIME ?? Parkland charges can discourage density, particular­ly across the GTA, where units in highrises can bear more in fees than a single-family home, writes Dave Wilkes.
DREAMSTIME Parkland charges can discourage density, particular­ly across the GTA, where units in highrises can bear more in fees than a single-family home, writes Dave Wilkes.
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