Development Charges

Residential house Commercial buildings Honda - industrial

Development Charges are collected to assist in financing capital costs associated with infrastructure and municipal services to support growth. This infrastructure can be used by all residents who live within the Town of New Tecumseth and may include:

Development Related Studies
Library Services
Fire and Rescue
Joint Police Services
Parks and Recreation Services
Public Works
Roads and Related
Water and Wastewater Services

A Development Charge Background Study conducted by Hemson Consulting Ltd. was adopted in 2021 and included growth forecasts and eligible local municipal servicing requirements. Using this information By-law 2021-166 came into effect January 1, 2022. Below are the rates effective January 1, 2023:

Development Charge Rates

Other Relevant Information

The Development Charge Pamphlet provides a summary of development charges.
Residential rates are calculated based on type of dwelling – single family dwelling, apartment, or townhouse.
Commercial and industrial rates are based on m²of area being developed.
Development charge rates are adjusted semi-annually in January and July in accordance with the most recent Statistics Canada Quarterly Building Construction Price Index.
Development charges are collected on behalf of the County of Simcoe, the Simcoe County District School Board and the Simcoe Muskoka Catholic District School Board which are independently approved by those organizations.
The 2021 Statement of the Treasurer details the activity and balances relating to development charges.

Please note that the following information is based on current legislation and is subject to change at anytime.

Development Charge FAQ’s:

How much are development charges to build a home on full Town services?
The current rate is $103,158 which includes County and Education fees.
How much are development charges to build a home that is not on Town water and wastewater?
The current rate is $65,330 which includes County and Education fees.
When are development charges payable?
Most would be payable at building permit issuance, however some cases would be at the earliest of date of first occupancy or occupancy permit.
Who can I contact to inquire about development charges?
The finance department at 705-435-3900 or by email.
What information do I need to supply when inquiring about development charges?
address zoning if available type of development (commercial, industrial, residential or mixed use) number of units being developed if apartments and how many are 1 bedroom, 2 bedroom etc. size of proposed development in m² for commercial and industrial demolition if applicable and what is being demolished - house, commercial building etc. expansion m²and existing m²of the development
Will I receive a development charge credit for a structure being demolished?
An applicable credit will be granted towards the cost of the current development charges if the structure being demolished is occupiable at the time of demolition. The rebuild must be done within two years from the date of the demolition permit issuance in order to receive a development charge credit.
What documentation can be provided to support that the structure was occupiable at time of demolition?
A hydro bill that clearly shows the property address that has recently been paid.

How much are development charges to build a home on full Town services?

The current rate is $103,158 which includes County and Education fees.

How much are development charges to build a home that is not on Town water and wastewater?

The current rate is $65,330 which includes County and Education fees.

When are development charges payable?

Most would be payable at building permit issuance, however some cases would be at the earliest of date of first occupancy or occupancy permit.

Who can I contact to inquire about development charges?

The finance department at 705-435-3900 or by email.

What information do I need to supply when inquiring about development charges?

address
zoning if available
type of development (commercial, industrial, residential or mixed use)
number of units being developed if apartments and how many are 1 bedroom, 2 bedroom etc.
size of proposed development in m² for commercial and industrial
demolition if applicable and what is being demolished - house, commercial building etc.
expansion m²and existing m²of the development

Will I receive a development charge credit for a structure being demolished?

An applicable credit will be granted towards the cost of the current development charges if the structure being demolished is occupiable at the time of demolition. The rebuild must be done within two years from the date of the demolition permit issuance in order to receive a development charge credit.

What documentation can be provided to support that the structure was occupiable at time of demolition?

A hydro bill that clearly shows the property address that has recently been paid.

Applications that require a Site Plan Control Application:

What was the new legislation pertaining to subdivision/commercial and industrial developments that came into effect January 1^st, 2020?

Applies to any site plan control applications received by the Town as detailed in the Development Charges Act, 1997.
Freezing of rates for Municipal and County development charges at applicable date of site plan control application.

Is interest charged and what interest rate is applied?

Yes, the Town's Development Charge interest policy details the applicable rates that will be applied based on the below criteria:

No Security - Published bank prime rate at the date of the development charge calculation plus 5%
With Security - Published bank prime rate at the date of the development charge calculation plus 3%

If providing a security how much security is required?

100% of the development charge payable in the form of a letter of credit

When does interest start?

Accrues from the month following the date of complete site plan application to when the development charge is paid in full. See the interest policy for further details.

Can payments be deferred?

Deferrals are only applicable to institution and rental housing that is not non-profit and nonprofit developments.
Developer must notify Town within 5 days of occupancy or the full development charge is payable immediately with interest accrued from the date it first became payable.

Resources:

Statistics Canada Quarterly Construction Price Index