Even as the city is set to consider increasing development charges, the net cost of putting up new buildings in Guelph could soon go down, thanks to the province ending parking services fees.

But that downward trend could be short lived, with additional costs potentially on the horizon.

If the currently proposed city changes are approved, residential construction would see a net 0.3 per cent drop in development charges, while non-residential builds would see a four per cent decrease, explains a staff report.

“Development-related revenue tools are a key source of funding for growth-related capital projects,” it says. “These revenues are used to support investment in growth-related capital projects such as roads, water, and wastewater infrastructure as well as new city facilities, amenities and vehicles related to emergency services and transit.”

That report and recommended bylaw amendments will be the subject of a special council session and public meeting on Oct. 18, beginning at 6 p.m. It will be streamed live at guelph.ca/live.

By provincial decree, beginning Sept. 18 municipalities can no longer charge a parking service fee among their development charges. On its own, that would lessen local DCs by about $1,316 per single detached home and $6.84 per square metre of non-residential construction, the staff report states.

However, if the proposed city charges are implemented, much of that lost revenue will be recouped – about $1,206 per single detached residential unit and $1.26 per square metre for non-residential construction.

If approved, the new rates would come into effect on Dec. 13.

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