City of Guelph says increase to development charges is ‘unusually high’

New houses under construction in Kingston, Ontario on Wednesday November 3, 2021. Lars Hagberg / The Canadian Press

The City of Guelph says an increase to the rates for its development charges is unusually high this year due to the COVID-19 pandemic.

As of March 2, the rates are jumping by 11.6 per cent and will apply to all building permits issued.

Read more: City report recommends hikes to Guelph’s development charges

“Statistics Canada sets the rate for municipalities as part of its Non-Residential Construction Price Index,” the city said in a post on its website.

“This year’s unusually high increase is due to negative impacts of the COVID-19 pandemic on the construction industry, including labour shortages, supply chain disruptions and construction materials costs.”

The total flat rate for detached and semi-detached house permits is increasing to $45,660 per unit from $41,210 per unit.

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Read more: Guelph’s employment in 2021 returned to pre-pandemic level, FAO report shows

The non-residential rate for industrial, commercial, institutional building permits is increasing to $158.73 per square metre from $142.24 per square metre.

Development charges are used by municipalities to help pay for growth. Companies building houses, subdivisions, shopping centres, industrial parks and other developments pay development charges to help fund municipal infrastructure like new water systems, roads, community centres, parks and emergency services.

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