Submission/Tracking software called Evolve. The programming was a very large capital commitment which is expected to reduce the length of time to issue permits. The system was supposed to be fully implemented by January of 2019, and to date we understand it is still in the testing stage and in the hands of one user. These factors have played a demonstrable part in the Industries continued frustration in receiving reasonable service levels, while at the same time absorbing somewhat minor increases in fees that have been passed onto the ultimate developer/owner.
We are now in receipt of the proposed Building Permit Fee Schedule for consideration and adoption associated with this year's Budget deliberations. As you are no doubt aware, the proposed fee increases are very significant – ranging from 0% (for New Alteration to Care Facilities) to 133% (New Alteration to Industrial). We acknowledge that the Building Department is supposed to be self‐sustaining, and we are aware that a $10 Million dollar deficit is currently on the Department's books. In a recent meeting with Building Department officials, we learned that the building department reported a $500,000 surplus last year (2019), versus a ($127,000) deficit the year before, as well as with 4 or 5 of the years prior also realizing significant surpluses. So, they are streaming in the right direction as it relates to the WCA support for permit increases of 2%‐5% for the previous few years.
We also understand that these "proposed fees" are "comparable to other similar community" fees and are being recommended to try to reduce the current deficit. These new fees, however, are VERY significant and will most likely cause clients to re‐consider their commitment to build their facility in the City of Windsor. For those projects which are already well on their way through the design and development process, these significant increases will be an unexpected new financial hardship that was not properly planned for.
Please review the attached Schedules of Permit Fees as recently researched, summarized and provided to us by one of the region's largest construction stakeholders. The neighboring Municipalities of LaSalle, Tecumseh, and Lakeshore, as well as more comparable size communities of London and Hamilton are compared. Upon this review, it is evident that the Proposed Fees (if adopted by Council) will place the Municipality in a very uncompetitive position as it relates to Building Permit fees among these 5 other communities.
Further, when Development fees and Property taxes are also considered for each of these same Municipalities, the on‐going tax burdens associated with developing an Industrial project in the City of Windsor exceed all of the five communities previously mentioned, thereby compounding the Municipalities uncompetitive position. (See attached schedule entitled Municipal Charges Analysis).
While we realize that in order to achieve most desirable and satisfactory service levels going forward that fees must rise, but we caution Council to consider how such rapid downloading of these fees will negatively impact future project intentions. Accordingly, we would respectfully ask Council to consider adopting the following recommendations;
- 1. Postponement of the new fee structure for a 1‐year term, allowing those projects already being contemplated and/or in the system to be undertaken under the current rate structure.
- 2. A phase in of the proposed fee structure over a 3‐year time period, in order to allow clients the ability to absorb these fee increases over a number of years, rather than in their totality in the first year.