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Regional officials say charges needed 3 · OAKVILLE BEAVER Wednesday, July 1, 2009 YOUR PASSPORT TO THE WORLD Let our designers and product selection take you to another place. Elegance, Stylish, Sophisticated, or Sleek We can transform any space! We specialize in importing and distributing unique Ceramics, Porcelain, Travertine, Marble, Glass, Custom Medallions and mosiacs from Around the World. Continued from page 1 an e-mail if they support his position, which he promised to pass on to regional councillors. The extra $8,000 per-unit hike Mattamy is criticizing is made up of "voluntary" contributions and interest-free loans to the Region to cover the upfront financing for water, wastewater and roads projects to service north Oakville and Milton. The Region says it has to pay $2.1 billion in necessary infrastructure projects to accommodate growth to 2021, but $1.3 billion of that must be finished by 2011. Developers have raised multiple concerns with the charges, which are on top of the $29,000 they already pay Halton Region in normal development charges. One is that the Region is expecting cash payments before developers have even received bank financing or can start selling homes. Carr said developers are also concerned the Region's infrastructure financing plan includes $754.2 million of roads projects to be built over the next five years, including the acceleration of $200 million of expansions to five regional roads, including Tremaine and Britannia Roads, Dundas Street, Neyagaway Boulevard and Regional Road 25. Carr doesn't want to spread out those projects more equally over the next 11 years. "The problem we've had in the region in the past is that we've pushed them (roads projects) off," said Carr. Carr said the number one concern among residents is the fact roads aren't expanded until after new subdivisions come online, resulting in clogged streets across the region. "This is something that I ran on and for which I got elected," the former MPP and MP said. Gilgan argued, however, there are "unnecessary items and inefficiency" in the Region's infrastructure plan, which was developed prior to the recession taking hold in Canada. "I don't object to paying what's fair and reasonable," he said. "I object to being surtaxed and supertaxed. "It's the cumulative effect where things become intolerable," he added, noting his company doesn't intend to build more houses in Oakville despite owning significant land in that community. Oakville is quickly becoming a flashpoint for the residential development industry, which has raised concerns about charges rising to a breaking point. In north Oakville, residential development charges have skyrocketed over the past year. In early 2008, a developer would have paid about $37,500 per single-family house to Halton, the Town of Oakville and the two major school boards in the region. That could soon be $61,500, including the Town of Oakville's proposed hike in its own development charges to $22,000 per home from the current $13,500. By contrast, the Town of Milton just passed its new development charges bylaw with only a $350 hike to residential builders to bring it to about $10,500. The Town also collects a $2,000 per unit contribution from developers. "The simple explanation -- it's absolutely true -- Oakville has higher standards," said Burton. Oakville also benefits from having a higher level of service on which to assess its development charges, which are based on an average service level for the previous 10 years. For example, Oakville Transit receives $1,139 per home while the five-year-old Milton Transit service only gets $51. In his e-mail, Gilgan writes the current development charges in Halton already exceed nearby 905 communities by an "inexplicable amount." Milton Regional Councillor Colin Best said there's a very clear explanation -- the Province financed the extension of water and wastewater pipes for Peel, York and Durham regions in the past but it isn't doing that for Halton. That means the Region has to charge developers more to expand water and wasterwater facilities, he said. Best argued the Mattamy e-mail is also misleading. Specifically, he complained of a section in Gilgan's letter that suggests the fee increases would hit existing homeowners like a tax hike. "Please imagine that you already own a stunning Mattamy Home on a pretty street in the Preserve (North Oakville)," states the e-mail. "Imagine that regional government has collected over $47,200 from you on closing but has now proposed that you to pay (sic) a further $8,000..." "Where are they getting this from?" Best responded. "You (existing homeowners) are not going to be paying any more." Best noted builders pay development charges, which are used to cover the cost of roads, water and wastewater services, transit, fire, education and other growth-related capital projects, before house construction even begins. "After the fee's been collected, we can't go back and collect more," said Best. A Mattamy spokesperson clarified the company doesn't intend to pass on the extra $8,000 to owners of already sold homes in their closing costs. While homebuilding continues strong in Halton, sales of new low-rise homes dropped last year by 42 per cent from 2006 highs and 60 per cent in Oakville. The slowdown continued in the first quarter of this year, but both April and May saw sales increases over 2008 levels. Mattamy Vice-President Gary Gregoris told regional council in April it had dropped the price of some of its homes by close to $60,000 in order to spur home sales, a tactic that worked. At the time, the company requested council freeze development charges by not applying an annual inflationary increase. Council instead voted to examine the issue first and last it week it voted to move to a temporary quarterly inflationary index for the charges, a measure that will give the construction industry a small break at no cost to the tax base. Ask about our Custom Glass Shower Doors & Floor Heating Tile selection made enjoyable! FACTORY TILE DEPOT 1360 Speers Road, Oakville (East of third line) 905.465.1650 Mon.-Wed., 9:30-6,Thurs. 9:30-8, Fri. 9:30-5, Sat., 10-5, Sun. 11-4 505 Queensway East Mississauga 905.277.1760 Factory Tile Depot www.factorytiledepot.ca Refer a friend and save! 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