Ontario Community Newspapers

Canadian Champion (Milton, ON), 1 Jul 2009, p. 4

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',mails flying in MattamnylHalton Region DC dispute _ By Tim Foran S CANADIAN CHAMPION STAFF -9 A public campaign initiated by the CEO rz of , Canadas largest new home builder, ai Mattamy Homes, [or Haltun Region bu drop a Sproposed $8,000 hike in what it charges rex- oidential developers is a "pathetic and ulti- Smstely embarrassing plea for (taxpayer) sub- < sidiesri says Oakville Mayor Rob Burton. V Peter Gilgan, the billionaire CEG of z Oakville-based Mabtamny, said his company !3isn't seeking taxpayer handouts. " Iif theres one message, ifs that we're flot asking any éxisting taxpayer to pay one red cent... to, support any new development,î' said (ailgan. 'xVc rc not lenokîng leur a hailout -nu bailouts here." Gilgan fired the latest salvo in the ongoing battle bctween residential dcvelopers and fast-growing Halton by sending out e-mails rccntly tu potential Mattamy homchbuycrs calling for "dcmocratic action." In the e-mails, Mabtan suggests it mighit have bu reconsider building bouses iii son' communities if Halton Region doesn'î drop a proposed $8,000 hike outlînied i an infra- structure financing plan that received region- aI council's endorsemrent in November and wbich will be guing tu counicil July 15 for final approval. The e-mails ask recipients bu petition regional counicillors tu ditch the I ilIlat il~ whl the * C g - *pGr', net *!ramï,-g exlrBS e.A- S tee --erut C-li! i book a C'rBantoo -0sî_sjý mc. Your Vehicle Running Itsl' P eeof-Mind Automatic Mopal Fuel System Ride and Handling Maintenance Service Transmission Service Service Special ~59 9 ' $7995 $7995* charge or delay the vette. Halton Regional Chair Gary Carr responded Friday bu wbat lie decribed as an "'orcbcstrated e.ampaign" by sendiug out his own e-mail waruîug resideuts that dietpping the charge could result in a 6.1I per cent increase in regional taxes and watcr rates. Carr called for residents bu scnd hin-i an e- mail if bbey support his position, which bie promised tu psss on tu regional counicillors. The extra $8,000 per-unit hike N4ataniy is cribicizing is made up of "vuluntary" con- tributions and interesb free boans tu the Region bu cuver tbc up front financing for water, wastewaber and ruads prujects bu serv- ice nortb Oakville and Milton. The Region says it has bu pay $2.1 billion in necessary infrastructure projecbs bu accommudate growth te) 2021, but $1.3 bil- lion of that musî be finisbed by 2011. Developers bave raised multiple cuncerrus witb tbc charges, whicb are on top of tbc $29,000 they already psy Haltun Region in normal devclupment charges. One ix ihat the Region is éxpecîing cash paymenbs before developers have even received bank financ- ing or can sîart sclling hoetms. Cai aîld dcv eolelic al.îe aI', r>tico tbe Regionis infrastructure financîng plan includes $754.2 million of roads prujects bu be builb ox'er the nexb fixe years, includîng the acceleratiun of $200 million of expan- sions bu five regional roads, including Tremaine and Britannia Reads, Dundas Street, Neyagaway Beoulevard and Regional Read 25. Carr doesn'b want bu spread out thense prolecbs more equall v ecr tbe nexi Il years. ,fhe preubleon we'x'c had i tbc regieru i tbc pasi ix thiai we've puiecl tbemi (roads projee.is) eoff," said Carr. Carr said tbe nurbcr one concerni among residents ix the fact reads aren't expanded until after new subdivisions comne onlinc, resulîing in clegged streebs acrenss tbc region. "This is sonihing bhai 1 ran ou and for wbîcb I gui llcbed," bbc former MPP and MP said. Ceilgan argued, huwcver, there are "unnec- essar>' items and inefficiency" in tbc Regions infrastructure plan, wbich was develepcd prior bu tbc recession taking buld in Canada. 1I don't objeet bur paying wbats fair and reasonable,' he said. "I objecb bu being sur- taxed and supcrtaxed. 'If's the cumulative effect where tbings becomne intolerable," he added, noting bis company docsn't iutcnd bey build nore benus- ex in Oakville despite owning significant land in bbab comnuuniby. Oakville ix quirkly hceiig a flaslipeint for bbc residential dcvelopmenî iudusbry, wbich bas raised cemnceruis about charges ris- ing bu a brcaking poinb. luI nortb Oakville, residential develop- ment charges have skyrockebed over bbc past ycar. In carly 2008, a developer would have paid abub $37,500 pet- single-family bouse bu Halton. tbc Town of Oakville and tbc twu major school huards tci tbc region. That could scion be $61,500. including tbe Town of Oakvillc's proposed hike in its oweî devel- opmnent charges to, $22,000 per home [romr tbc current $ 13,500. By contrast, tbc Town of Milton just pasxed its new devclopment charges bylaw witb only a $350 bike bu resi- dential builders bu bring it tu about $ 10,500. The Town alsu cullectx a $2,000 per unit con- tribution from. developers. "The simple explanation - its abxolutely truc - ix Oakville bas l'iigbcr standards,' said Burtotn. Oakvillc aIro benefits fnnm, bsviîig a higb- er lexel of seirvire on xx hiclh bu assess its rdc\ cloîpinent r loigc s \%r liic arc bascd oni ais average service level l'or the previenus 10 years. For example. Oakville Transit receives $1,139 per hume xxhile tbc five-vear old Milton Transit service unIs geis $51. In bis e-nmail, Gilgan wribes tbc curreni devclepment charges ici Halion alrcady cxcced ncarbv 905 conmunibics by an "inex- plicable amnouni." Milton Regiettal Corincillnr Cocl/n Bexi said bhere's a ver>' clear explanation - tbc Prouvince financcd tbc extension of wabcr and w,,axbewater pipes for Peel, York and Durham regions bu tbc pasî hut it ixu't doing that for Hialton. That means tbc Region bas bu charge dexelopers nore bu cxpand waîer and wasberxxater facilities, he said. Whiile bonchbuilding continues bu he xbrenng in Hialton, sales of nevo loxx-nise humes dropped fast ycar b>' 42 per cenb from. 2006 bîglîs anîd 60 per cent in Oakville. Tbe slow- down ceuntinued in tbc first quartier of this year but botb April sud May ssw sales increases uver 2008 levels. Msttamy VP Gar>' Grcguris told regional counicil lu April it had drupped tbc price of somne of its homes by close bu $60,000 bu spur hume sales, s tactie that worked. 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