HEDDY SOROUR
The Town of Carleton Place has passed a new development charges bylaw that appears to be raising concerns among some members of the development community.
“All the Lanark Leeds Home Builder’s Association’s concerns remain, and we continue to evaluate whether to appeal the bylaw or not,” said Pierre Dufresne, president of the Lanark Leeds Homebuilders Association (LLBHA) and senior vice president of Cavanagh Communities.
Up until now, Carleton Place’s development charges have been on the low side compared to other surrounding area municipalities. With the new changes, the township’s DCs are closer to Ottawa’s rural area charges.
“Staff and councillors had numerous conversations with representatives from the development community throughout the DC bylaw process and prior to passing the bylaw. We heard their concerns and, in some cases, we made significant, fair changes in response to concerns that were raised,” said Andrew Tennant, deputy mayor in Carleton Place. “There were some concerns that we addressed that we thought were quite valid. There were other concerns from developers with which we did not necessarily agree.”
The last meeting held with the development community came right after the public meeting in early February and before the bylaw was passed.
“The town’s consultant and staff had a meeting with the Home Builders Association and its consultant on Feb. 14, 2025, to talk through their questions and the responses,” said Dianne Smithson, chief executive officer with Carleton Place.
Following that meeting, the town agreed to remove a series of road projects that fell outside the forecast period to 2043 from the calculation.
“The concerns related to timing of some of the road projects were addressed, and the DC rates were reduced by $4,431,” said Smithson.
A few other minor reductions were made related to library services and child care, so that the proposed development charges dropped from $43,980 per single detached home to $39,549.
“While the town’s consultant addressed our concerns, more could have been done to lower the charge. For example, re-evaluate future growth rates, defer projects to be constructed post-planning horizon to future DC bylaws, and collect for (a new build) only after certainty that the project will go ahead,” said Dufresne.
Under new provincial changes to the Development Charges Act, DC Background Studies and Bylaws must be reviewed every 10 years, not five as in the past. However, a municipality can make adjustments to the DCs at any time during those 10 years. According to Tennant, the study undertaken to determine the town’s future infrastructure needs related to growth was thorough, and the price tag on the sewer and wastewater expansions—without which development would have to stop—was staggering.
The new development charges are more than double the previous charge of $17,057 that was in place until the new bylaw passed on Feb. 18, 2025.
Tennant explained that developers have been underpaying for growth for quite a number of years, and while indeed it is a steep increase, it is informed by the steep increases in infrastructure costs that the town has to develop.
“Growth has to pay for growth,” said Tennant.
Dufresne and the LLHBA had asked for a 90-day grace period to allow developers already in purchase and sale agreements to adjust to the new pricing with their buyers, but the town declined to implement a transition period, and the bylaw with the new charges is now in effect.
“It is common practice for developers to pass development charges directly onto homebuyers. As such, the increased development fee does have the potential to impact home purchases in the short term. However, I believe it will not be a factor in the long term,” said Tennant. “Surrounding municipalities have similar growth pressures as Carleton Place, and their own DC studies will presumably reflect the increased costs of infrastructure as a result of that growth.”
