potentially delay the development or sale of the land would be a long-term decision. And, of course, once the property is sold (at the presumably lower price), the market would be reset as the new owner would have a cheaper property on which to develop; therefore, the new owner would have just as much incentive to develop as the previous owner had prior to the development charges increase . This concept illustrates that the greatest impact of a development charges increase will be borne by the existing land owners.

View: There should be incentives for the core area of the city.

Administration believes that development charges alone are not likely to be the full solution that can by itself encourage significant development in the core. The issue needs to be approached on a broad front based on detailed planning studies aimed at specific areas and complementary policies. The City currently has CIPs in place that are working to encourage development in different areas of the City, along with a City-Wide CIP that has been very successful.

Nonetheless, the recommendation of the DC Task Force is to exempt the core area of the City from all development charges, as defined by the map in Schedule C of the Draft DC Bylaw.

It is also important to note that there are demolition credits when structures are demolished and new structures built. Where the DC is zero as in the city core, there is no demolition credit.

View: Consideration of lower development fees for non-profit housing to encourage the building of additional housing units.

Although this was considered by the DC Task Force, it was determined that the Development Charges Act is a very blunt instrument with very little flexibility and that other Planning tools provide a much broader and flexible way to achieve the same results. Planning is currently undertaking a study designed to allow for the waiving and reduction of fees and property taxes for this type of development.

Administrative Recommendations

The recommendations of the DC Task Force and administration (which are largely based on the factors noted in the earlier part of this report) concerning key elements of the 2020 Development Charges Bylaw are as follows:

Area Specific Exemptions – The DC Task Force and Administration recommend that the core residential infill area boundary adopted in the 2016 as a result of the Windsor Neighbourhood Market Value Analysis Study continue as previously approved by City Council. That the entire core area as defined by Schedule C of the Draft DC Bylaw be exempt from DC Fees. Although there were questions by the DC Task Force on the possibility of revisiting the boundaries of the designated area, it was determined that if such revisions are contemplated by City Council in the future, that they should be examined through another comprehensive planning study.

Maintain Area Specific Rating for the Sandwich South Planning District - The new bylaw will maintain the area-specific approach to engineered services rates for the Sandwich South Planning District that was implemented in 2018. This policy reflects the increased infrastructure requirements, as a result of projected growth, for Roads & Related, Sanitary Sewers, Storm Sewer & Municipal Drains and Water.