Development Charges Key Information Pamphlet

Purpose of Development Charges

Development charges are imposed to assist in providing infrastructure required by future development in the Town of Oakville by establishing a viable capital funding source to meet the town’s financial requirements.  These charges are imposed in accordance with the Development Charges Act, 1997, S.O. 1997, c. 27.

The Act provides for certain mandated exemptions, such as;

  • a board of education;
  • any municipality or local board thereof;
  • the enlargement of an existing dwelling unit;
  • the creation of up to two additional dwelling units, as prescribed, subject to the restrictions in Sec. 2 of O. Reg. 82/98, and
  • the enlargement of an industrial building up to a maximum of 50% of the gross floor area of the structure that existed before the original enlargement.

Background

On February 28, 2018 the Town of Oakville passed by-law 2018-001 under section 2(1) of the Development Charges Act, 1997.   This by-law establishes development charges for the town on residential and non-residential development.   It is applicable to all lands within the boundaries of the Town of Oakville, payable upon issuance of the first building permit as defined in the by-law.

In addition to the mandated exemptions under the Act, the town’s by-law provides for certain non-statutory exemptions.

These include but are not limited to, non-residential farm buildings, areas of worship, public hospitals and lot coverage relief in accordance with specific criteria.

Demolition Credits

A credit will be provided against applicable development charges where buildings or structures have been demolished to permit the redevelopment of the property.  For demolitions which occur on or after August 31, 2009, this credit will expire five years from the issuance date of the demolition permit. For demolitions which occurred prior to August 31, 2009, this credit will expire ten years after the issuance date of the demolition permit. The credit is based on the number and type of residential units demolished and/or the total floor area and type of non-residential building or structures demolished.

Determining if Development Charges are payable

Payment of development charges may be required for residential and non-residential development when:

  • Constructing a new building(s)
  • Adding to or altering an existing building(s) which increases the floor area of number of units
  • Redeveloping a property or properties, resulting in a change of use.

Please refer to the Development Charges Bylaw 2018-001 for more information.

Development Charge Rates

For residential development, the charge is based on the number and type of dwelling units. For non-residential development, the charge is based on the floor area of the building. Non-residential development included retail and non-retail.

Services for which the Town of Oakville imposes development charges

  • General Government
  • Library Services
  • Fire Protection Services
  • Parks and Recreation
  • Public Transit
  • Municipal Parking
  • Services related to a Highway

Annual Indexing

The Town of Oakville’s development charge rates are subject to annual indexing on April 1 in accordance with the most recent twelve month change in the Statistics Canada Quarterly, Construction Price Statistics (Non-residential Building Construction Price Index).

Statement of the Treasurer

As required by the Development Charges Act, 1997, the Treasurer for the Town of Oakville shall prepare an annual financial statement reporting on the status and transactions relating to the development charge reserve funds for the previous year. This statement is presented to the Council of the Town of Oakville for their review and may be reviewed by the Public in the Clerk’s Department during regular business hours at 1225 Trafalgar Road, Oakville, Ontario L6H 0H3

Regional Development Charges and Education Development Charges

The Town of Oakville also collects development charges on behalf of the Region of Halton and the Halton School Boards. For information on Regional and Halton School Board Development Charges, please contact:

  • Halton Region – 905-335-7600, ext. 7290
  • Halton school boards – 905-335-3665, ext. 3240