Ontario Conservative Premier Doug Ford’s 2022 Bill 23, the More Homes Built Faster Act, significantly cut the development charges municipalities can collect.

Following Bill 23, municipal parkland dedication fees are capped at no more than ten percent of property value for parkland dedication fees when developments are being constructed on five hectares or less.

Effort Trust sought to have the post-Bill 23 parkland dedication rate applied to its 64 residential condo unit development at 71 Main Street in Dundas.

The 71 Main Street, Dundas, development is a nine-storey, 64-unit condo building.

Bill 23 came into force on November 28, 2022. The final building permit for above-ground construction was issued on December 6, 2022. Construction began when the City issued a shoring permit on May 10, 2022.

Development charges are calculated upon the issuing of a building permit. Large projects, such as this project, receive multiple building permits. Effort Trust argued the final building permit should be the date for development charges; the City argued the shoring permit date should be used.

The pre-Bill 23 charge was $836,416, post-Bill 23, the charge is capped at $190,000, a difference of $646,416.

In a 57-paragraph ruling issued on Monday, OLT Member Daniel Best ruled in favour of the City’s interpretation.

“Building permits are required for any work that leads towards the eventual erection of the building structure, rather than only the construction phase where the building structure is erected,” the OLT writes. “As it has been determined that the first building permit was issued on May 10, 2022, for the proposed project on the subject Property, the Bill 23 changes do not apply.”

The developer already paid the $836,416 fee, under protest. The City gets to retain the full fee.

Production Details
v. 1.0.1
Published: January 30, 2024
Last edited: February 7, 2024
Author: Joey Coleman
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v. 1.0.0 original version
v. 1.0.1 added link to decision on OLT website

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