
Honda seeking reduction in New Tecumseth development charges, negotiations remain confidential
Posted January 23, 2025
Honda's requirement to pay development charges (DCs) as a component of its $15 billion electrification expansion, remains unsettled and confidential believed to be because the automaker is not keen to pay the full rate of $433.62 per sq. m of gross floor space.
DCs, which have been in place across the province since 1997, are applied to residential, commercial, and industrial development. They finance capital costs associated with infrastructure and municipal services to support growth. The rates are calculated following background studies and are divided into several categories including roads, water, sewer and fire to name a few.
Honda’s expansion, announced last April, includes an electric vehicle assembly plant and a battery manufacturing plant in Alliston creating more than 1,000 jobs.
New Tecumseth's industrial DC rate is $362.39 per sq metre of gross floor space, the County's share is $60.46, while Education cut is $10.77 for a total $433.62 per sq m. DCs are usually paid upfront at building permit stage which adds to Honda's urgency to settle. Honda also will be responsible for paying planning and permit fees to the Town. At stake are millions of dollars in DCs.
New Tecumseth CAO Neil Garbe told Free Press Online "The DC discussion is confidential because the DC’s are part of funding discussions and negotiations with other levels of government. Once those discussions are complete and approved by the appropriate authorities, the information will be public."
At this post, Mayor Richard Norcross had not replied when asked if he could provide assurances Honda would pay DCs. "Just in between meetings," he said via text, "will get back to you."
