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2-The Canadiari Champion, Fniday, January 17, 2003 xl-ýndustrial deve1opmeint chaimges too high: Chambers Jialton-areci Chamhers açk Reolyin t<o rq"oji f'Ho l,îVF By HOWARD MOZEL Special ta The Champion A proposai by Halton Region to reduce its discount on industrial development charges (DC) drew con- siderable tire Monday at a special meeting by the area's four Chambers of Commerce. Hosted by Use Oakville Chamber of Commerce (OCC), Use event was held to educate business owners about Use impact of such a move and to exert pressure on Usose counicillors in atten- dance to vote against changes when Use ime cornes. According to Oakville Chamber President John Breakey, it's already a "hard task" trying to attract developmnent to Use region as Use best of times and increased, DCs certainly won's help. "We have concluded this is raUser prohibitive," he said. Stephen Sparling, chair of Use OCC's Advocacy Committee, said Use imdustry feels blindsided by Use Region's review since Use current DC bylaw is in effect until 2004 and Uey weren't expect- ing to deal with Use issue until Uen. Mr. Sparling also said Usat despite Use staff report's assertion Usas Halton has a relatively low tax rate, Use region must remain com- petitive "on ail tax fronts." Halton should also wait until oUser regions complete their own reviews, he continued, to understand where Halton stands in rela- lion to Uem. Jeannette Gillezeau, analyt for Clayton Research, presented a region-by-region comparison of existing and proposed industrial DC rases and Use huge change in numbers Usas would result. Taking an 18,000-square-foot building on a one-acre site as 400 Steeles Avenue (next to Gorrud's Auto Group) 905 875-1700 www.mlltontoyota.com [oas,n lnncn Oplans rom Top Cednt Canada fric 0 COfes ,ooe20oo8ss0,oair d y Feoay 2. 2003 Inclaoooo eolao0, o eooIs, oloogIand1PD.E c000of $90,$1,010$12600 Feg10PE. noîncedin ,MSRP Ba30o camseoa in y0ooa M 4%oEoM ol T1123M00o 8T123PA) Bas r4t, aI8 aute,îo 790% 4u5oo 11Mla. ottais H20oeOlOVMB o R32EMB 'w "d Z61AAoH20P)Ooal a 00,10,10F0d58 0707088, axeooaoolaait000KWS20as09KMS for ECIoîO).AdtooaKM charge of $W-1010, 1lOo?.e MS1. o $14.M23or $15.023, $1730) $18.300, $320 3 $ 4,50 ample $M,000 aI 0%9% Midnns fq3ýf1 I 2ý O2lADmrl43gn/e9% M.eqa,$03008 5902 parent , 1o 0 ,OsC $o119 41S,5 $.4612 10, a .aIobligation 0 1O2288W21225,24002540172 A000707705t3000 fs 'eflafolanad coi daoom,1o osof T '.T l(E oonga a to n dioooosion)1 O$lOl0iIqohaie fmnfc u to 3 mo30eds iiaoaoe on new 2303S077 o coo omy39 nO Im.tpolurh asaog lofIo 6î0 mornisaaiabIe onnoew, RV4 n Hglad , ase seMito Toyota o OpltedeUss 5,aIo(My lesesello ess 11- ýA , Cl. i'. î î 1, ! 11, 'e ' l'Ti .0tppioU 0001zlt0,y ()-i pic ent olt 0030J0 c h0000 1oei Y0, avu1ghâ.o "tt's flot a minor difference," she said. It is a major increaae and Use dollars aren't insignificant." Halton's DCs are at their current levels, Ms Gillezeau, added, due Iargely to Use "very high cosf" of Use region's sewer and water works. Development charges are used to pay for demands; on roads, police, services for seniors, GO Transit, water and waste- water created by growUs. Shortfails in development charges are supported by Use regular tax base. Recently, Use Region's administration and fmnance committee narrowly approved Use elimination of retail development charge discounts and a reduction from a 50 per cent discount to a 25 per cent discount for industnial businesses. New retail businesses cur- rently receive a 25 per cent discount in development charges. Regional staff recommended changing Use developmnent charges bylaw after hearing discussion from boUs sides of Use issue at Use Development Charges Review Committee (DCRC). Currently, Halton cominunities have some of Use highest indus- trial development charges in Use Greater Toronto Area. Halton His is first, wîUs $6.59 per square feet, foliowed by Milton in third at $5.83, Oakville in sixUs wath 5.23 and Burtington in eighth wiUs $488. If Use reduction in discounts is ultimately approved, Halton municipalities would have Use four higbest rates, ranging from $696 per square feet in Halton HiUs to $6.20 per square feet in Milton. While Halton would have the highest development charges, oUser areas of Use GTA will undergo reviews of Useir rases in 2004, said Use staff report. Ini an effort to reduce Use impact of Use dis- count reductions, regional staff recommended phasing it in over two years. The flrst phase would begin February 1 ,wiUs retail stili receivmng a 15 per cent discount and industrial seeing a 40 per cens discount. Full discount reductions would come into effect January 1,2004. Charges much higher than in other regions FuIly phased-in, said Ms Gillezeau, Halton's DCa wiIl be 57 per cent higher Usa Peel Region and 87 per cent higher Usa York. To back up hier assertions, Ms Gillezeau quoted from Use 'Hemson Report' Usas wanied of Use potential negative impacta of higher DCs: "It is our view Usat were Halton to establish DCa Usas were noliceably higber Usan Use rates in competing mucipalities, from an economic development perspective, it might develop a repulation as a higb-cost region." The Hemson Report, commissioned by Use Region, alsço said Usas if discounts were eliminated (as least inUse short terni) âveI- opers would eiUser try to raise renta, try to, lower oUser cos, reduce Useir profit margin or look to oUser regions. "There is no basis 10 conclude which of Use possible outcomes would resuit," said Hemson. "However, logic does suggest Usas developers would be more likely to focus elsewhere Usan simply accept lower profit margina." Ms Gülezeau said Uere exista a local fallacy Usas Peel will soon mun out of land, so Usat Halton can just sit back and waiî for busi- nesses to come westward. Peel bas as least 1,600 net hectares remaining and il could be as long as 10 years before Usas region runs dry. According to Use study prepared by C.N. Wataon and Associates, also, commissioned by Hallon Region, under existing DCs, "most new industrial and office buildings ini Halton region generate more Usan sufficient taxes to fund Use share of growth-related capital costa not covered by Use current development charges." The Region's staff report went to Use administration and finance committee Wednesday. It will be addressed as regional counicil February 22. 8S S4S xM ]