Regional Councillors Debate Development Charges

Here is an interesting article from Christina Commisso from the Champion.

Councillors debate DC issue

Corporate welfare or a tax grab?

Regional council was divided yesterday on the issue of charging business owners a development charge (DC) to convert their space from a non-retail to a retail use.

The issue was a sticking point for business improvement associations that said the hefty fee, which would amount to tens of thousands of dollars, would hurt small, family-run businesses in Halton’s downtowns.

For example, a 2,500 square-foot office, which paid DCs when it was built, that’s converted to a retail use would face a $24,000 DC.

The Region has said generally retail operations generate more traffic and wear and tear on the roads in justifying the charge.

In its 2012 development charges update, the Region agreed to wave the fee for businesses under 3,000 square-feet in the interest of economic development. However, Oakville Mayor Rob Burton called the move “corporate welfare” and asked that all businesses, regardless of size, pay the fee.

His motion was supported by most of Oakville’s councillors and Regional Chair Gary Carr, but failed after being widely criticized by the majority of Halton’s 21-member council.

“This is not welfare. Honestly, if you vote for this amendment you’re stealing money from people. Let’s find out who the thieves are,” said Halton Hills Councillor Jane Fogal. “This (conversion) amount is small to Halton Region but big for the mom and pop operations.”

Added Burlington Councillor Marianne Meed Ward, “Let’s see who is in favour of a tax grab and who is against economic development and small business owners, who are residents and taxpayers as well.”

Not all were convinced that the fee for small businesses should be waved.

“Retail, when it’s converted from an industrial or office use, it creates more demand and use of our transportation infrastructure. There is a cost, it’s not free,” said Oakville Councillor Tom Adams. “We’re talking about money that will come out of the taxpayers pocket eventually for the benefit of two or three developers. That’s the exact definition of corporate welfare.”

Fogal asked if businesses who convert from a retail operation to non-retail would receive some sort of refund on the development charges previously paid, however staff said that move would create uncertainty in terms of regional revenue.

The conversion fee was part of Halton’s 2012 development charges update, which was passed by council.

Currently non-residential DCs — office space, retail and industrial — are grouped together. The updated DCs, which come into effect September, separates retail and non-retail business into two separate categories with retail DCs increasing by 52 per cent and the non-retail charge decreasing by 25 per cent for Greenfield development. 

Update to Region Councillor Salary Hike

Its gone!

Yep, thats what I said.  Gone.  Halton Regional council, in a last minute amendment to the budget removed the salary raise they would have received (amounting to roughly $17,000 in total) and remains a 0 % increase.

While the amount might look to some as minimal it does go a long way to letting taxpayers know that they should be the primary concern when it comes to taxes.

It looks like they listened to the people who sent them emails, called them and by the comments on my blog entry a few days back, no one was happy about paying them more.  One of the most interesting comments from the article is from Tom Adams, who is a regional councillor for Oakville and former Green Party candidate federally. 

He said that council was second guessing the citizens committee who made the recommendation.  From what I understand, and please correct me if Im wrong, the citizens committee makes a recommendation.  That is not saying its something that has to be done.  So council can at anytime say no to that recommendation.

Dictionary.com defines “recommend” as:

to advise, as an alternative; suggest (a choice, course of action, etc.) as appropriate, beneficial, or the like

Its not second guessing the committee at all.  I appreciate the fact that this committee exists and it should continue in making its suggestions for local governments, but the beauty about it is that council CAN say NO.

As Burlington councillor John Talyor said, its not political games, it’s the taxpayers money.

I for one am very glad this didnt go through.  I could only wish the same could be said for the Town of Milton in the recent budget.

Here’s the story from the Champion.

Zero tax hike budget passed
By Tim Foran, Metroland West Media Group
Dec 18, 2009

The elimination of any salary hike for regional councillors was a last-minute change to Halton’s $1.1 billion 2010 budget approved Wednesday. The changes, proposed by council’s budget review committee Monday, won’t change the overall requested tax levy, meaning there will be no increase next year in property taxes for regional services, which include items such as police, ambulance and regional roads maintenance. There will also be no increases in water rates, which are paid by Halton residents on their electricity bills. Staff achieved the zero tax and rate increases in part by instituting a freeze on tax-supported new hires, except for police personnel, and keeping the number of municipal staff at 2008 levels.

Read more here