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Oakville Real Estate News: Battle over Development Fees Burns Hotter in Oakville

July 2, 2009

There’s a real storm brewing between Oakville’s developers and home builders and Oakville’s town council and Halton’s Regional Council over the proposed increase of development fees levied on home builders.
What’s at stake? North Oakville. This large section of land north of Dundas in Oakville yet to be developed has had developers lining up for years waiting to cash in on the desire of home buyers to move to Oakville.

Developers pay fees to the Town of Oakville and the Halton Region for the municipal systems and infrastructure required to service the new homes they plan to sell. Services like roads, water, sewer, etc.
The proposed increase is stated to impact the developer to the tune of about $8,000 per house.
Over the past couple weeks a public opinion battle has been waging between Peter Gilgan, the Billionaire CEO of Mattamy Homes and Gary Carr, Halton’s Regional Chair as well as Oakville’s Mayor, Rob Burton and our town councillors.
Peter Gilgan and Mattamy launched an email campaign to Mattamy home owners protesting the increases and asking homeowner’s to protest the increases and support their position or they may have to reconsider whether they will be building homes in some communities (Oakville, Milton) if the proposed increases carry.
“If there’s one message, it’s that we’re not asking any existing taxpayer to pay one red cent…
to support any new development,” said Mr. Gilgan. “We’re not looking for a bailout – no bailouts here.” That’s all well intentioned and good, but if developers and builders like Mattamy Homes don’t intend to cover the increased costs for the infrastructure – who will?
Who’s left?? Customers of municipal services and taxpayers. There’s no one left
in my view.
Mr. Gilgan has further stated that these increases will further hurt our economy and the Oakville Real Estate market.
Public opinion seems to be hard pressed to support a billionaire developer who has clearly made a lot of money off of Oakville residents since the 1970s. I will never fault someone for good business and strategies and whether or not you believe this is the case here, is a whole other story.
“It’s our feeling that (developers) made a lot of money during the good times, and they should be using some of that money to pay for the services and stop using the argument that the economu is bad.” according to Halton regional chair, Gary Carr.

This debate over North Oakville and South Milton has huge importance. Both now are still almost entirely rural farmland and are due to experience major growth, with more than 75,000 home owners predicted to move in to the area by 2021.
I challenge my fellow residents of Oakville to educate yourself and be heard. Write to your ward councillors, Mayor Burton or Gary Carr. Read the positions and lend your support whether it’s to Regional Chair Gary Carr or not. I think you’ll agree this issue is one that will impact all of us that live in Oakville.
Here is some further reading on the subject:
There was an interesting article in today’s Toronto Star entitled “Battle Over Development Fees Heats Up In Oakville”.
Published yesterday in the Oakville Beaver was “Mattamy Lobbies For Lower Development Charges”
Let me know your thoughts on this situation. I would love to hear from you. Contact me through email.
Ryan
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3 Comments leave one →
  1. oakvillehomes permalink
    July 4, 2009 6:40 pm

    It was the taxpayer that paid a large portion of the water supply to Milton so the developers could build and, if the development charges aren't put forward, it will be the taxpayer again. Peter Gilgan got to be a billionaire by making other people pay for things – just good business. See http://www.oakvillehomes.wordpress.com for the Mattamy story.

  2. Oakville & Mississauga Condo Realtor permalink
    July 4, 2009 11:00 pm

    I don't fault people for being successful through smart business however, it is not smart timing to create a pr battle given people's sensitivity to the economic uncertainty. I for one would much rather buy a resale home than buy a new home that was "padded".

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  1. Real Estate News: Battle between Halton Region and homebuildes over development charges settles… for now « iBlog Oakville

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