Whiteside points to Barrie model for 'new growth financing
Posted June 3,
Ward 3 councillor Paul Whiteside suggested last night the Town
investigate what the City of Barrie has come up with to help pay for
future infrastructure upgrades that accompany new growth to determine
whether it could be implemented in New Tecumseth.
Barrie has a struck a deal with developers who will pay a $4,500
per-unit surcharge. This is in addition to development charges, which
cover 90 per cent of an eligible project, leaving a 10 per cent
shortfall. DCs, including water and wastewater, are $38,409 per single
and semi-detached unit in New Tecumseth.
Barrie is forecasting about $1.8 billion in new infrastructure over the
next 20 years, of that $1.2 billion is overed by DCs. The $4,500 surcharge is
estimated to raise $100 million.
"As we all know, we have significant capital expenditures that we've
already undertaken, and there will be others that will have to be
financed," said Mr. Whiteside. "It does concern me."
"Are you suggesting we add another $4,500 to our current DCs?" asked
Ward 6 councillor Richard Norcross.
"No," replied Mr. Whiteside, "it's not an addition to the DCs. It's a
supplemental charge that somehow they're receiving from the development
community. I'd just like staff to look at the options they (Barrie)
have been able to utilize to assist in funding these capital
In a published report last week, Barrie mayor Jeff Lehman conceded the
surcharge will be passed along to the purchaser. "Some of this will end
up in the price of new homes. The flip side is if we don't receive it
from there, we have to get it from existing taxpayers, which is not