Sudbury

Sudbury development fee hike in the works

The bottom line for developers in Sudbury could soon get a little thinner, with a planned hike in development charges.
A touchy subject that in the past has drawn massive protests to Tom Davies Square, is back before Sudbury city council. It will consider raising development charges that are paid by those building new homes and businesses. (Erik White/CBC)

The bottom line for developers in Sudbury could soon get a little thinner, with a planned hike in development charges.

The fee hikes proposed by city staff include charging $2,300 more for every new residential unit.

Chief financial officer Lorella Hayes said, in the last five years, the charges have put $20 million into city coffers. Without that money, property taxes would have to be much higher.

"So, if that revenue was not available, it would equate to a 2 per cent tax increase per year."

But that hike doesn’t sit well with developers like Mary Jouppi.

After years of planning, Jouppi said she expects construction to begin on 16 condominium bungalows alongside the golf course she and her husband own in Lively.

But a hike in development charges could change things.

"These charges … it is a bit scary,” she said.

And Jouppi wonders if that will make her bungalows harder to sell to downsizing seniors "because all of those charges of course have to be passed on to the buyers."

Greater Sudbury has had development charges for years, making developers chip in for the new roads, arenas, libraries that come with a growing city.

Hayes said it’s expensive for the city to grow.

"The principle really is who should pay? Should growth pay for growth?”

The development fee hike isn't for sure yet, and has been strongly opposed in the past.

Councillors will listen to citizens at a public meeting next month and then make a decision in June.