Development Charges

Development Charges Background Study

In June of 2009 a background study on Development Charges was completed. The Development Charges Background Study is available in PDF format.

City Development Charges 2010 - 2011

Effective August 1, 2010

Development Charges which were also previously known as Impost Fees and Capital Levies have been levied by municipalities in Ontario, including the City of Niagara Falls, for several years.

Such fees were usually applied as a condition of the development of a property during the various initial processes which included Subdivision and Development Agreements, Zoning Amendments, Severances and Official Plan Amendments, etc.

The purpose of such a fee was to offset the subsequent demand for capital works and municipal services, which would arise as a consequence of development. For example, additional fire protection, recreational facilities, library facilities and municipal works such as upgraded roads, water and sewers, etc., due to population growth, and extension of services into previously undeveloped areas.

In 1997 the Province of Ontario enacted a new Development Charges Act. The Act stipulated that any municipality wishing to impose the charges would have to meet specific criteria and pass an appropriate by-law.

As a result, the City of Niagara Falls undertook a comprehensive study in June 2009, held public meetings and on July 20, 2009, City Council passed By-law 2009-120, which took effect immediately.

The by-law sets out the Development Charges for Residential and Commercial development, the apportionment of the charges for services, the method of collection and the conditions under which a development is subject to the charge or is exempt. (Industrial development was exempt in 2001)

In accordance with the requirements of the Act and the By-law, a Development Charge can be applied as a condition of any of the following, where the development of the land will increase the need for services:

• Re-zoning or Zoning Amendment
• Minor Variance
• Conveyance of Land under the Planning Act
• Plan of Subdivision
• Land Severance
• Plan of Condominium
• Issuance of a Building Permit

The various circumstances where a charge is deemed to be either not payable or payable are set out on the attached Appendices "A" and "B", respectively

For the purposes of identifying specific servicing requirements, the City has been divided into four specific areas as follows:

• Urban Area - generally serviced by paved roads and municipal sewers and water and further divided into:
• Tourist Core
• Outside Tourist Core
• Non-Urban Area - that part of the City which is not designated as Urban and generally is not serviced by municipal sewers and water.
• Industrial - this area, within the Urban area, is designated for specific future industrial growth.

Residential Development Charges

The various types of residential uses are set out in Part II of the by-law and generally include Apartments, One-Family Dwellings, Semi-detached & other Multi-Unit Dwellings and Townhouses.

The charges for residential development, per unit (2010-2011 rates) are as follows:

Commercial Development Charges

The various types of commercial uses are set out in Part III of the by-law and are as shown on the attached Appendix "D".

The charge for commercial development (2010-2011 rates) are as follows:

Industrial Development Charges

There are no City Development Charges for industrial uses, but Regional Development Charges may still be applicable for certain industrial developments.

Indexing

All the above charges will be adjusted annually on August 1, in accordance with the StatsCan Quarterly Index.

Complaints

The Act provides that an owner may complain in writing to City Council within 90 days about a development charge for the following reasons:

• The amount of the charge was incorrect or based on incorrect data.
• The amount of a credit where services are provided in lieu is incorrect.
• The amount of a credit for a previous development charge is incorrect.
• There was an error in the application of the provisions of the by-law.

The complainant, after receiving Council's decision in writing, may appeal that decision to the Ontario Municipal Board within 20 days of the date of mailing of the decision. Such an appeal should be filed with the City Clerk, in writing, giving reasons for the appeal.

Appendix "A"

Check List for No Charge Payable

• Existing commercial building is converted from one type of retail, or similar use, to another. e.g. furniture store to clothing store
• Existing commercial building is converted from a retail use to a restaurant or eating establishment which has a floor area of less than 36 m2 (388 sq. ft) (or less than 30 seats).
• Existing commercial building is renovated or converted to new use which does not substantially increase the occupant load of the building.
• Existing building is converted or occupied without the need for a building permit, re-zoning, etc.
• Existing single detached dwelling is converted to a duplex or triplex, and the conversion does not exceed the gross floor area of the original dwelling.
• Existing residential building except a single detached dwelling is converted by adding an additional unit which is smaller than any other unit in the building.
• Existing single detached dwelling or dwelling unit is enlarged; but not converted.
• Development occurs on a property which is in a subdivision prior to August 1999 where a previous charge has been paid.

The proposal should first be checked to see whether any of the above apply. If so, then the project is exempt from Development Charges.

"Existing" means the use, occupancy, size and location etc., of the building or property as of August 2, 1999.

Appendix "B"

Check List for Charge Payable

• A new building is constructed, (except for an industrial building which is not in the industrial area).
• An industrial building is constructed or an existing industrial building is enlarged by more than 50% in the industrial area.
• An existing multi-unit residential building, except a single family dwelling, is enlarged by adding one unit which is larger than any of the existing units.
• An existing multi-unit residential building, except a single family dwelling, is enlarged or converted by adding more than one unit.
• An existing single detached dwelling is enlarged or converted by adding more than two additional units.
• An existing single detached dwelling is enlarged or converted by adding one or more units which exceed the original gross floor area of the existing dwelling.
• An existing commercial building is enlarged.
• A parking structure, not ancillary to another building on the same property, is constructed.
• An existing non-residential use is converted to residential.
• An existing industrial or commercial building is converted to a restaurant or eating establishment having a floor area of 36 m2 (388 sq. ft) or more (or 30 seats or more).
• All redevelopment as defined in the Act and the By-law.
• All or part of an existing industrial building is converted to a commercial use, which substantially increases the occupant load.
• A new building is constructed on vacant land in the designated industrial area.
• An existing residential building, of any type, is enlarged or converted by adding one or more additional units after an exemption has been made for a previous additional unit after August 2, 1999

Appendix "C"

Appendix "D"

Commercial Uses

• Assembly Hall, Exhibition Establishment or Convention Centre
• Auctioneering Establishment
• Bank or Financial Institution or Office
• Casino or Gaming Establishment
• Day Care Establishment or Child Care Facility
• Do-it-yourself Brewery or Winery
• Drive-in or Drive-through Facility or Establishment
• Hospital, Health Care Facility, Clinic, Nursing Home or Retirement Home
• Hotel, Motel, Tourist Home or Camping Establishment
• Office or Office Building
• Parking Facility not ancillary to, or serving another use
• Personal Service Shop or Establishment
• Place of Recreation, Arena, Grandstand or Fitness Facility
• Place of Worship
• Private Club
• Private School or Institution
• Restaurant, Café, Tavern, Bar, Eating and Drinking Establishment or Licenced Premises, Retail Store or Establishment, Showroom or Storage Area
• Self-service Establishment
• Service Store or Establishment
• Studio
• Theatre, Cinema, or Place of Entertainment
• Undertaking Premises, Mausoleum or Funeral Home
• Vehicle Sales, Display, Rental, Wash, Service, Fueling or Repair Establishment.
• Veterinary Establishment or Animal Hospital
• Uses similar to the foregoing

Development Charges are also levied by the Regional Municipality of Niagara in addition to the City. Details of these charges can be obtained at Building Services, as above or by visiting the Region's Development Charges page

The information in this pamphlet is a brief summary of the comprehensive requirements of the Development Charges Act 1997 and By-law 2009-120 of the City of Niagara Falls and is intended only to give the reader an overview of the many requirements therein.

Reference should be made to the Act and By-law for any required specific information, and they are available at Clerk's in City Hall, 4310 Queen Street, Niagara Falls.

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