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Council approves updated development charge rates


City Council approved the 2019 Development Charges (DC) By-law and Background Study. The By-law outlines the new DC rates that come into effect on August 4, 2019.

The Development Charges Background Study reviews growth related capital projects that are needed to accommodate London’s growth. This information is used to update the Development Charge By-Law and Development Charge rates at least every five years as required under the Development Charges Act.

The DC rate for a residential single/semi-detached dwelling will increase by 3.5 per cent to $33,135. Commercial rates will decrease by 8.5 per cent to $278.74 per square metre, institutional rates increase by 7.1 per cent to $168.29 per square metre and industrial rates increase by 7.0 per cent to $206.15 per square metre.

“Council’s approval of the 2019 DC Background Study and By-law ensures that the City will have the funding necessary to meet our future growth infrastructure needs to support new homeowners and businesses,” says Paul Yeoman, Director, Development Finance.  “The DC review process included extensive community, builder and developer stakeholder dialogue to arrive at a reasonable cost-sharing framework that reflects the principle of ‘growth pays for growth.’”

Development charges are one-time fees collected at the building permit stage for residential dwellings (such as single family, semi-detached, apartments and condos), industrial buildings as well as non-industrial buildings such as retail and office buildings. They are the fees charged to companies building residential and non-residential development in the city to help pay for the infrastructure that goes into servicing those developments such as water, wastewater and stormwater management, roads and transportation infrastructure, recreation facilities, parks, fire and police facilities. The main focus of development charge calculation is recovering the appropriate amount of money from developers who are sparking city growth.

Learn more about development charges at london.ca/dc.