What are development charges?
A fee charged by the City to recover growth related capital costs associated with residential and non-residential growth.
Development charges do not pay for operating costs or infrastructure renewal, that is paid for by new taxes from new homes and businesses, also known as assessment growth.
Growth costs are recovered to:
- build new infrastructure supporting growth
(The services required to support new development. Services include new water and wastewater systems, roads and transportation infrastructure, recreation facilities, parks, fire and police)
- pay down existing debt for past growth works
- avoid taxpayers paying for costs that serve growth
Development charges assist in financing capital projects required to meet the increased need for services resulting from growth and development. Development charge funds may only be used for the purpose for which they are collected.
How we pay for a growing city:
Residential, Commercial, Institutional and Industrial
Development charges would be charged for the construction of new buildings, expanded buildings and converted buildings.
Development charges are collected at the building permit stage for residential dwellings (such as single family, semi-detached, apartments and condos), industrial buildings as well as non-industrial buildings such as retail and office buildings.
The World of Development Charges
2019 Draft Rates
Development charges are changing in 2019. We are asking Londoners to learn more about why they are changing, review the 2019 draft rates and provide their feedback.
Why are there three additional services in the draft 2019 Development Charges Rates?
Due to continued growth, there are greater demands and needs being placed on the City.
Council requested three additional service growth cost areas be reviewed and included in the 2019 Development Charges Background Study:
- Operation Centres – Need for expanded maintenance facilities and storage to service the city
- Waste Diversion – New facilities and programs required to divert waste and recover resources
- Water Supply – Growth costs associated with Master Plan updates for the Lake Huron & Elgin Area Primary Water Supply Systems
Why are the rates changing?
The City is currently conducting a Development Charges Background Study to review growth related capital projects needed to accommodate London’s growth. This information is used to update the Development Charge By-Law and development charge rates at least every five years as required under the Development Charges Act.
The main focus of development charge calculation is recovering the appropriate amount of money from individuals who are sparking city growth.
What has already taken place?
A stakeholder group comprised of local residents, developers and commercial property owners including the Urban League, London Homebuilders’ Association, London Development Institute, London and District Construction Association are involved in the study to review information and ensure the process and resulting development charge rates are fair, reasonable and accountable.