Here’s what these contractors are paying in development fees

Cash-strapped municipalities across Canada are (shock!) looking to builder development costs to raise revenues without hitting existing homeowners with property tax hikes that are political hot potatoes.

We discussed this with home builders at our recent RenoFocus sessions in Toronto.

Here are some of the comments, names removed to facilitate open discussion

A tax on people who don’t live here yet

“Here in (a mid-sized community in Alberta), development costs have gone up from $5,000 to $20,000 – for a typical lot – in just over ONE YEAR! They are using it as a tax. They have such a shortfall in infrastructure spending they’ve got this great idea of levying a tax on people who don’t live here yet.”

I’ve got a bullseye on my back at City Hall

“I’m just one guy who’s decided to stand up and talk about it. I’ve got a bit of a bullseye on my back when I go into City Hall (in a small town in B.C.).”

Southern Ontario fee comments

“In our market (resort area in Southern Ontario), development fees went up on Jan. 1 by about $4,000 to about $30,000, on average.  I was telling a Toronto builder about this and he just laughed. We pay almost $60,000 on a 30-foot city lot in the city, he said. Then another builder halfway to Kingston said he just paid $46,000 on a standard house lot out there.”