Monday, February 8, 2010

Development Freeze Likely Ends

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Owen Sound
by Jim Birchard    

Owen Sound Council did not find many savings in budget deliberations and it appears calls for a permanent end to development fees is falling on deaf ears.

After two days of budget sessions last week -- the proposed tax hike is 5.81 per cent.

But combined with the proposed zero per cent tax hike from Grey County -- ratepayers in Owen Sound are looking at a 3 per cent tax hike.

Council also continues to hear from developers who want the City to continue the moratorium on fees to encourage more new home construction.

However one Councillor feels that was a one time event, and the fees won't be eliminated.

Jim McManaman feels the easing of fees did have the desired impact on the housing sector during difficult economic times.

He notes the city issued 46 permits for new homes compared to about 25 that would be handed out during a normal year.

McManaman says whether the program was a success or not is something that council is still evaluating.

But he is convinced that there won't be any across the board waving of development fees this year.

He says what council is considering is a more targeted approach to fees and development with the possibility of fees being eased for construction in specific areas of the city where Council wants to see new housing.

McManaman says the bottom line is development fees are there to help pay for new services like water and sewers for these new housing developments.

He says if the money for these services doesn't come from development fees, then it has to come from the taxpayer.