Wood framing in the early construction of an apartment complex. © Can Stock Photo / dbviragoWood framing in the early construction of an apartment complex. © Can Stock Photo / dbvirago
Chatham

Municipality seeking change to building permit fees

In hopes of encouraging growth in Chatham-Kent, the municipality is hoping to put a cap on certain building permit fees.

On Monday night, a report will come for council approval requesting that Chatham-Kent set a maximum amount of $50,000.00 per building for residential building permit fees.

Currently, permit fees depend on a variety of square footage factors and total construction value costs. For example, a 120 residential unit development with a construction value of approximately $40 million would come with a building permit cost of $217,000 under the current fee structure.

According to the report, it has been 28 years since Chatham-Kent has seen a large development of residential units. In 2013, a permit was issued for an 88-unit condominium. However, the report describes it as an "anomaly" and notes that developments of that size have not been active in Chatham since the early ’90s.

The municipality is hopeful that the change to the residential building permit fee will help improve development and contribute to future growth.

"Building Development Services suggests that similar to the $20,000 cap on industrial development, a maximum limit on building permit fees be set on residential building permit fees. This maximum amount on permit fees would be $50,000 per building for all residential building permits," states the report. "This maximum limit would be a positive incentive for future development and would target large residential development."

The idea for the change stems from a strategic planning session held in January where councillors and municipal officials looked at ways to meet and exceed future growth expectations in Chatham-Kent.

"As part of the session, council discussed barriers to growth and ideas that could inspire growth," reads the report. "Council looked at possible opportunities to find growth initiatives, and ways of encouraging new development across Chatham-Kent."

Currently, large residential development projects make up less than one per cent of the Chatham-Kent's building permit revenue. If the municipality were to lose any money because of the permit fee change, it will be absorbed within the Building Development Services base budget.

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