May 24, 2007

York Regional Council approves by-law revising York Region development charges


By-law to close gap between development and associated Regional service costs


NEWMARKET York Regional Council today approved enactment of a by-law to establish revised York Region development charges (DCs) for construction of new residential and industrial / commercial / institutional properties.  The DC by-law, which comes into effect on June 18th, 2007 and replaces the current by-law (which expires on June 22nd, 2007), will help The Regional Municipality of York recover a greater share of the  costs associated with growth-related services and infrastructure.


Development Charges are fees charged to developers to pay for additional or expanded Regional capital programs to service new growth, such as Regional roads, York Region Transit and Viva Rapid Transit, water and sewage servicing and the pending TTC Subway expansion into York Region.


"Development charges are an important source of funding for York Region's growth-related capital programs," said York Region Chairman and CEO Bill Fisch.  "This new by-law will place a greater onus on the development industry for the total costs associated with growth-related capital and infrastructure."


"The new Development Charge by-law provides both a fair and equitable solution to our capital funding needs," said Town of Newmarket Mayor Tony Van Bynen, Chair of the Region's Finance and Administration Committee.  "We have consulted extensively with the development industry and related associations to develop a by-law that will better ensure existing York Region taxpayers no longer bear as great a burden of growth costs."


A public meeting was held on April 5, 2007 where York Region's Finance and Administration Committee members heard several deputations from the development industry.  The following key issues formed part of the discussions:


         population and employment forecasts used in preparation of the draft background study

         timing of the rate increases, including transition, phase-in options and methodology Issues

         impact of the subway

         competitiveness versus other municipalities


Full cost recovery rates under the newly enacted by-law (which include the TTC Subway expansion into York Region), broken down by property class are as follows:


         Single / Semi-Detached Family Dwelling $22,157 (an increase of $5,908)

         Multiple Unit Residential Dwelling $18,317 (an increase of $4,471)

         Apartment (Two or more Bedrooms) $13,792 (an increase of $3,635)

         Apartments (Less than Two Bedrooms) $8,917 (an increase of $2,457)

         Industrial/Office/Institutional $10.93 per square foot of gross floor area  (*an increase of $6.96)

         Retail $21.58 per square foot of gross floor area (*an increase of $13.69)

*factors in the elimination of discounting / credits


Full cost recovery of the revised development charge amounts will be phased in to help accommodate building applications already being processed.  Cost recovery phase-in periods broken down by property class are as follows:


Residential (all types)

         25 per cent of rate and 2/3 of subway portion, effective June 18th, 2007

         full cost recovery rate on September 18th, 2007 for singles, semis and multiples

         full cost recovery rate on December 18th, 2007 for apartments



         10 per cent of rate and 2/3 of subway portion, effective June 18th, 2007

         full cost recovery rate phased in over three years



         25 per cent of rate and 2/3 of subway portion, effective June 18th, 2007

         full cost recovery rates phased in over one year


The new by-law comes into effect June 18th, 2007 and expires June 17th, 2012.


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Media Contact:         Ken Turriff, Corporate Communications, York Region

                                 Phone: (905) 830-4444 / toll-free 1-877-464-9675, Ext. 1226

                                 Cell: (905) 251-6415 / Email:

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