Council approved the Development Charges Implementation Policy during its regular meeting on November 26, 2024 at City Hall in Cornwall. This policy introduces significant updates aligned with provincial legislative changes introduced under Bill 185. The approval marks a shift in how development charges are managed within the city, ensuring greater transparency and cost certainty for developers.
Sean-Michael Stephen from Watson & Associates Economists Ltd. presented the proposed changes at the November 12 council meeting. Among the updates are new rules allowing municipalities to charge interest on deferred development charges for rental housing, institutional developments, and non-profit housing. Public notice requirements have also been modernized, enabling municipalities to post notices on their websites when local print newspapers are unavailable. Additionally, the policy updates the maximum interest rate calculation to reflect the average prime rate plus 1%, providing clarity for developers.
Additional changes to the policy include restructuring for clarity, the introduction of a financial risk management framework, and the refinement of definitions to make the document easier to navigate. These adjustments aim to balance municipal financial safeguards with the needs of the development community, with the effective date for the policy set as November 26, 2024.
The policy revisions are part of Bill 185’s broader efforts to standardize development charge practices across Ontario. By ensuring fairer interest rates and streamlining public notices, the legislative changes are designed to help municipalities improve their operations while adapting to modern communication methods.
With the council’s approval, city staff will implement the framework immediately under the Finance Division’s oversight. The updated policy is expected to support Cornwall’s ongoing development initiatives while protecting municipal financial interests, creating a more balanced and development-friendly environment.
