A change in a tax charged to land developers in Stratford, P.E.I., has at least one major developer raising concerns it'll stifle growth in the community.

Stratford town council voted Wednesday night to change fees on developments in the growing community.

The town had been charging a one-time flat tax of $1,500 per lot — regardless of the number of units built on it. The tax will now be $1,200 for each duplex or townhouse unit built on a lot and $1,050 for each apartment unit. The tax for a lot for a single-family dwelling remains $1,500.

"Well I'm terrified that it is going to have a very negative effect for developers and the construction industry for Stratford," said Don Hickox, construction supervisor for Kel-Mac Inc., a major developer in Stratford.

Hickox worries the tax will discourage growth by making it more expensive.

"It is a growing community and we need to encourage growth as much as we can. It's to all our benefit. The worst thing you can do is put such a heavy tax burden on people coming in that they walk."

Mayor David Dunphy said the change will help pay for the cost of water and sewer services and upgrades, and will better reflect increased usage.

"We think it's only fair that the future use of the waste water treatment plant or the water supply system in Stratford, amounts should be paid fairly by all users," said Dunphy.

"And they would be apartment users, duplex users, town house users so that it's based on a per-unit cost. And that's the fairest way to do it, per unit as opposed to a flat rate per lot."

The change is effective immediately.

A media release Thursday morning stated the town will meet with developers to discuss how and when developers will pay "in order to mitigate the financial impact of the changes."