Ontario municipality faces stalemate over cutting fees for development | Globalnews.ca
Members of one of Ontario’s largest municipalities appear to be on a collision course over development charges.
Councillors from Brampton and Caledon could walk out of a Region of Peel meeting on Thursday, forcing their Mississauga colleagues to abandon it, as they fight over cutting fees charged to homebuilders.
Two weeks ago, Brampton and Caledon’s representatives left a regional meeting in protest over Mississauga Mayor Carolyn Parrish’s plan to massively reduce the fees developers have to pay when they build new houses.
The walk-out came because the two municipalities do not have enough votes on council to defeat motions backed by Mississauga, but — by leaving — they can force proceedings to be suspended entirely.
The motion the two municipalities balked at suggested cutting development charges by 50 per cent until November 2026 to push homebuilders to start work on stalled projects.
Locally, Mississauga has instituted the policy, which drew praise from Ontario Premier Doug Ford’s government as part of its post-election throne speech.
The Building Industry and Land Development Association, which represents developers, supported Mississauga’s move and recently used stalled housing starts to push for more tax breaks. It has warned that without them, homebuilders will have to lay off thousands of workers.
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Parrish told Global News that very little development is taking place and any measures that can stimulate it should be encouraged. She wrote: “If it starts builds, we will get 50 per cent rather than nothing!”
In a letter addressed to Peel’s councillors, Parrish expanded on the request.
“Without intervention, we risk years of stagnation, lost jobs, and worsening affordability,” she wrote of worsening housing start data.
“This motion is not about giving away money. It’s about stimulating growth that otherwise won’t happen. If we do nothing, we collect no DCs at all. But if we act, we can unlock thousands of units, generate new tax revenue, and create the conditions for long-term fiscal health.”
In Brampton, however, Mayor Patrick Brown said the move would rob municipalities of the funds they need to build infrastructure for new projects. He indicated his councillors would block the move again when it comes up Thursday.
“Mayor Brown believes the limited financial tools available to cities should be used for purpose-built rentals and not depleted on a condo market that is already overburdened with too much inventory,” a spokesperson for his office said.
“Mayor Brown hopes Regional Council uses the incentive tools we have to kick-start the immediate construction of purpose-built rentals. This is the housing need Peel most urgently requires.”
Caledon Mayor Annette Groves, who walked out with Brown before, said she would listen to the discussion and decide what was best for her town.
The potential walkout could also further complicate Ontario’s almost-finished, semi-reversed decision on splitting up the Region of Peel.
In May 2024, the Ford government said it would break the region up into three individual municipalities. By December, the decision had been reversed after the government said costs had risen.
The latest version of the split involves devolving some items like roads and waste management to Brampton, Caledon and Mississauga, while leaving social services like child care and seniors at the regional level.
Parrish said if Brampton and Caledon walked out of Thursday’s meeting again, she might use it to push for the complete split Ford walked away from.
“(I) may point out how dysfunctional the region has become, and (that) we should resurrect the request for Mississauga to separate,” she wrote.
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