Gravenhurst council approves new development charge rates

Gravenhurst town council has approved new development charge rates for the municipality, effective Jan. 1, 2025. 

Council members approved the new rates and a related bylaw at their regular monthly meeting yesterday.

The town collects development charge fees from new construction projects to help pay for growth-related infrastructure investments in the community. 

“Development charges are an important part of our financial health as a municipality,” Mayor Heidi Lorenz said. “It’s important that new development pay its fair share. These new rates represent good financial stewardship.” 

The town uses the money it collects through development charges to pay for such things as new or expanded roads, sidewalks, storm drainage systems, and parks. 

Background 

Earlier this year, council retained Hemson Consulting to prepare a development charges study for the town. 

As part of their work, consultants considered several variables to the town’s growth-related infrastructure needs. 

The town invited the public to review the study and provide comment on Engage Gravenhurst – the municipality’s online engagement site – and at a public meeting. 

About the new rates

In approving the new rates, council agreed to phase them in over a three-year period. This is to ease the burden on builders and encourage development. Accessory dwelling units are exempt from development charges. Possible exemptions and discounts apply to purpose-built rentals. 

See option 3 in the related staff report to review the new rates.

Ross Jeffrey, director of financial services for the town, said the new rates represent a prudent approach to ensuring the town is well-positioned to pay for growth-related infrastructure needs. 

“Through the collection of development charges, the burden of funding future capital expenditures from the tax levy can be better managed, avoiding the need for external borrowing,” he said. 

The new rates replace development charges established by council in 2019. 

The new development charges bylaw has a 10-year shelf life. After five years, staff will assess the need to update the bylaw earlier.

Additional resources

Review the development charges staff report.

Review the development charges bylaw.

Watch the related discussion at the Nov. 19 council meeting.

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