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The Corporation of the Town of Saugeen Shores
By-law XX - 2026
Being a By-law to Establish Development Charges for the
Corporation of the Town of Saugeen Shores
Whereas subsection 2(1) of the Development Charges Act, 1997, S.O. 1997, c. 27,
(the "Act") provides that the council of a municipality may pass by-laws for the
imposition of development charges against land for increased capital costs required
because of the need for services arising from development in the area to which the
by-law applies; and
Whereas the Corporation of the Town of Saugeen Shores has given notice in
accordance with Section 12 of the Act of its intention to pass a by-law pursuant to
Section 2 of the said Act; and
Whereas the Council of the Town of Saugeen Shores has heard all persons who
applied to be heard no matter whether in objection to, or in support of, the
development charge proposal at a public meeting held on May 11, 2026; and
Whereas the Council of the Town of Saugeen Shores had before it a report entitled
"Consolidated Development Charges Background Study" dated April 9, 2026 (the
"Study") prepared by Hemson Consulting Ltd., wherein it is indicated that the
development of any land within the Town of Saugeen Shores will increase the need
for services as defined herein; and
Whereas the Council of the Town of Saugeen Shores on June 8, 2026 approved the
Study in which certain recommendations were made relating to the establishment of
a development charges policy for the Town of Saugeen Shores pursuant to the Act;
and
Whereas the Council of the Town of Saugeen Shores has given consideration to and
deems that the increase in the need for services attributable to the anticipated
development as contemplated in the Study, as amended, including any capital costs,
will be met by updating the capital budget and forecast for the Town of Saugeen
Shores, where appropriate; and
Whereas the Council of the Town of Saugeen Shores on June 8, 2026 confirmed
that no additional public meeting was required; and
Whereas the Council of the Town of Saugeen Shores on June 8 2026 expressed its
intention that infrastructure related to post-2035 development shall be paid for by
development charges;
Whereas the Council of the Town of Saugeen Shores has given consideration of the
use of more than one development charge ("DC") by-law to reflect different needs for
services in different areas, also known as area rating or area-specific DC's, and has
determined that for the services, and associated infrastructure proposed to be funded
by DCs under this by-law, that it is fair and reasonable that the charges be calculated
on a municipal-wide uniform basis; and
Whereas the Study includes an asset management plan that deals with all assets
whose capital costs are intended to be funded under the development charge by-law
and that such assets are considered to be financially sustainable over their full life-
cycle; and
Whereas the Council of the Town of Saugeen Shores will give consideration to
incorporate the asset management plan outlined in the Study within the Town of
Saugeen Shore's ongoing practices and corporate asset management strategy; now
therefore be it
Resolved that the Council of the Corporation of the Town of Saugeen Shores enacts
as follows:
Definitions
In this by-law:
1.
"Accessory use" means a use, including a building, which is commonly
incidental, subordinate and exclusively devoted to the main use or main
building situated on the same lot;
2.
"Act" means the Development Charges Act, 1997, S.O. 1997, c. 27;
3.
"Affordable housing" means affordable residential unit as defined by
subsection 4.1 (1) of the Act;
4.
"Agricultural use" means the growing of crops, including nursery,
biomass, horticultural crops, tree crops and flower or truck gardening;
farms for the boarding, training or raising of livestock for food, fur, or
fibre, including poultry and fish; aquaculture; nurseries; aviaries;
greenhouses; apiaries; beekeeping; forestry and reforestation; and
maple syrup production. Agricultural uses may include associated on-
farm buildings and structures, including, but not limited to livestock
facilities, manure storage, value-retaining facilities that serve to
maintain the quality of farm commodities produced on the farm,
accommodation for full-time farm labour when the size and nature of the
operation requires additional employment as well as a detached
building that is accessory to an agricultural use. Agricultural uses shall
also include any use that is consistent with normal farm practices but
shall not include kennels, abattoirs, retail operations, landscaping
businesses, off-season vehicle storages and meat processing;
5.
"Apartment dwelling" means a building consisting of five (5) or more
residential units, each with an independent entrance either directly from
the outside, or through a common vestibule or common halls;
6.
"Assessment Act" means the Assessment Act, R.S.O. 1990, c.A.31;
7.
"Attainable housing" means attainable residential unit as defined in
subsection 4.1 (1) of the Act;
8.
"Bedroom" means a habitable room larger than seven square metres,
including a den, study, or other similar area, but does not include a
living room, dining room or kitchen;
9.
"Board of Education" means a board defined in ss. 1(1) of the Education
Act, R.S.O. 1990, c.E.2, as amended;
10.
"Building Code Act" means the Building Code Act, R.S.O. 1990, c.B.-13,
as amended;
11.
"Bona Fide Farm Use" means the proposed development will qualify as
a farm business operating with a valid Farm Business Registration
Number issued by the Ontario Ministry of Agriculture, Food and Rural
Affairs and be assessed in the Farmland Realty Tax Class by the
Municipal Property Assessment Corporation;
12.
"Capital Cost" means costs as defined in the Act;
13.
"Council" means the Council of the Corporation of the Town of Saugeen
Shores;
14.
"Development" means any activity or proposed activity in respect of
land that requires one or more of the actions referred to in section 6 of
this by-law and including the redevelopment of land or the
redevelopment, expansion, extension or alteration of a use, building or
structure except interior alterations to an existing building or structure
which do not change or intensify the use of land;
15.
"Development charge" means a charge imposed pursuant to this By
law;
16.
"Dwelling unit" means a room or suite of rooms used, or designed or
intended for use by, one person or persons living together, in which
culinary and sanitary facilities are provided for the exclusive use of such
person or persons, including time share units;
17.
"Existing Industrial Building" means a building used for or in connection
with:
a)
manufacturing, producing, processing, storing or distributing
something;
b)
research or development in connection with manufacturing,
producing or processing something;
c)
retail sales by a manufacturer, producer or processor of
something they manufactured, produced or processed, if the
retail sales are at the site where the manufacturing, production or
processing takes place,
d)
office or administrative purposes, if they are:
(i)
carried out with respect to manufacturing, producing,
processing, storage or distributing of something; and
(ii)
in or attached to the building or structure used for that
manufacturing, producing, processing, storage or
distribution
18.
"Fixing Long-Term Care Act" means the Fixing Long-Term Care Act,
2021 S.O. 2021, chapter 39 Schedule 1;
19.
"Grade" means the average level of finished ground adjoining a building
or structure at all exterior walls;
20.
"Gross floor area" means the total floor area measured between the
outside of exterior walls, or between the outside of exterior walls and
the centre line of party walls dividing the building from another building,
of all floors above the average level of finished ground adjoining the
building at its exterior walls;
21.
"Local board" means a municipal service board, transportation
commission, public library board, board of health, police service board,
planning board, or any other board, commission, committee, body or
local authority established or exercising any power under any Act with
respect to the affairs or purposes of one or more municipalities,
excluding a school board and a conservation authority as defined in
Section 1 (1) of the Municipal Act, 2001;
22.
"Local services" means those services, facilities or things which are
intended to be under the jurisdiction of the Town and are within the
boundaries of or related to or are necessary to connect lands to
services and an application has been made in respect of the lands
under Sections 51 or 53 of the Planning Act, or any successor
legislation;
23.
"Long-term care home" means a long-term care home as defined in
subsection 2 (1) of the Fixing Long-Term Care Act;
24.
"Mixed-Use" means land, buildings or structures used or designed or
intended for use for a combination of retail uses and residential uses;
25.
"Mobile Home" means a dwelling unit that is designed to be made
mobile, and constructed or manufactured to provide a permanent or
seasonal residence for one or more persons, but does not include a
trailer or tent trailer. A mobile home shall be distinguished from other
forms of prefabricated transportable housing by reason of a design
which permits and features ready transfer from place to place. For the
purposes of this by-law a mobile home is an apartment unit - bachelor
or one bedroom;
26.
"Multiple dwelling" means all dwellings other than single detached
dwellings, semi-detached dwellings, and apartment dwellings;
27.
"Non-residential uses" means a building or structure used for other than
a residential use;
28.
"Non-profit housing" means non-profit housing as defined by subsection
4.2 (1) of the Act;
29.
"Owner" means the owner of land or a person who has made
application for an approval for the development of land upon which a
development charge is imposed;
30.
"Planning Act" means the Planning Act, R.S.O. 1990, c.P.13, as
amended;
31.
"Place of Worship" means that part of a building or structure that is
exempt from taxation as a place of worship under the Assessment Act,
R.S.O. 1990, c. A.31, as amended, or any successor thereof;
32.
"Public Hospitals Act" means the Public Hospitals Act, R.S.O. 1990, c.
P.40
33.
"Redevelopment" means the construction, erection or placing of one or
more buildings or structures on land where all or part of a building or
structure has previously been demolished on such land, or changing the
use of a building or structure from a residential use to a non-residential
use or from a non-residential use to a residential use, or changing a
building or structure from one form of residential use to another form of
residential use or from one form of non-residential use to another form
of non-residential use;
34.
"Rental Housing Development" means development of a building or
structure with four or more residential units all of which are intended for
use as rented residential premises;
35.
"Regulation" means any regulation made pursuant to the Act;
36.
"Residential uses" means lands, buildings or structures or portions
thereof used, or designed or intended for use as a home or residence of
one or more individuals, and shall include a single detached dwelling, a
semi-detached dwelling a townhouse dwelling, an apartment dwelling,
and the residential portion of a mixed-use building or structure;
37.
"Semi-detached dwelling" means a building divided vertically into two
dwelling units each of which has a separate entrance and access to
grade;
38.
"Services" means services set out in Section 2 to this By-law;
39.
"Single detached dwelling" means a separate, free-standing dwelling
containing only one dwelling unit;
40.
"Town" means the Corporation of the Town of Saugeen Shores;
41.
"Townhouse dwelling" means a dwelling unit divided vertically into a
minimum of three dwelling units but does not include an apartment
dwelling;
42.
"Vacant Buildings or Structures" means buildings or structures that have
been vacant for a minimum 12 consecutive months and are proposed to
be converted from non-residential to residential or residential to non
residential;
Designation of Service
1.
The categories of service for which development charges are imposed
under this By-law are as follows:
a)
Library Services;
b)
Fire Protection;
c)
Police Services;
d)
Parks and Recreation Services;
e)
Services Related to a Highway: Public Works and Fleet;
f)
Waste Diversion Services;
g)
Development Related Studies;
h)
Land Acquisition;
i)
Services Related to a Highway: Roads and Related;
j)
Storm Water Drainage and Control Services;
k)
Water Services; and
l)
Wastewater Services.
2.
A development charge under this By-law shall include:
a)
a charge in respect of Library Services;
b)
a charge in respect of Fire Protection;
c)
a charge in respect of Police Services;
d)
a charge in respect of Parks and Recreation Services;
e)
a charge in respect to Services Related to a Highway: Public
Works and Fleet
f)
a charge in respect of Waste Diversion Services;
g)
a charge in respect of Development Related Studies;
h)
a charge in respect of Land Acquisition;
i)
a charge in respect of Services Related to a Highway: Roads
and Related;
j)
a charge in respect of Storm Water Drainage and Control
Services;
k)
if Water service is available, a charge in respect of Water
Services; and
l)
if Wastewater service is available, a charge in respect of
Wastewater Services.
Calculation of Development Charges
1.
Subject to the provisions of this By-law, development charges against
land shall be imposed, calculated and collected in accordance with the
base rates set out in Schedule "A" which relate to the services set out in
Section 2.
2.
The development charge with respect to the uses of any land, building
or structure shall be calculated as follows:
a)
in the case of residential development or redevelopment or the
residential portion of a mixed use development or
redevelopment, as the sum of the product of the number of
dwelling units of each type multiplied by the corresponding total
amount for such dwelling unit type, as set out in Schedule "A".
b)
in the case of non-residential development or redevelopment, or
the non-residential portion of a mixed use development or
redevelopment, as the sum of the product of the gross floor area
multiplied by the corresponding total amount for such gross floor
area as set out in Schedule "A".
3.
Council hereby determines that the development or redevelopment of
land, buildings or structures for residential and non-residential uses will
require the provision, enlargement or expansion of the services
referenced in Section 2.
Applicable Lands
1.
Subject to Sections 4 and 5, this by-law applies to all lands in the Town,
whether or not the land or use is exempt from taxation under the
Assessment Act.
2.
This by-law shall not apply to land that is owned by and used for the
purposes of:
a)
owned by a board as defined under subsection 1(1) of the
Education Act;
b)
any municipality or local board thereof;
c)
a hospital under the Public Hospitals Act;
d)
a place of worship and land used in connection therewith, which
shall include only the grounds of the place of worship, a
cemetery or burial grounds exempt from taxation under the
Assessment Act;
e)
a long-term care home;
f)
Affordable housing;
g)
Attainable housing;
h)
Non-profit housing;
i)
non-residential farm building constructed for bona fide farm uses;
j)
non-residential development in the Commercial Core designated
lands as described in the Town of Saugeen Shores'
Comprehensive Zoning By-law, as amended;
k)
industrial development;
l)
mixed-use development located in the Core Commercial
designated lands as described in the Town of Saugeen Shores'
Official Plan as amended, that has both a residential and retail
component.
m)
residential development located in the Core Commercial or
Office Residential designated lands as described in the Town of
Saugeen Shores' Official Plan, as amended, provided that:
(i)
the development has received Federal, Provincial or
County government funding or subsidies for the provision
of affordable housing development or is constructed by
Habitat for Humanity or any other non-profit housing
provider; and
(ii)
satisfactory evidence is provided to the Chief
Administrative Officer (CAO), or designate, demonstrating
that the residential use is intended for persons of low or
modest incomes and that the dwelling units are being
made available at values that are initially and will continue
to be below current market levels in the Town.
n)
the conversion of buildings and structures, or part of buildings or
structures, that have been vacant for a minimum period of 12
consecutive months, provided that:
(i)
satisfactory evidence is provided to the CAO, or
designate, demonstrating that the building has been
vacant and will be converted to another use; and
(ii)
any gross floor area that exceeds the existing gross floor
area of the building or structure being converted will not be
exempt from development charges and will be charged at
the applicable rate pursuant to schedule "A".
3. Rental Housing Development shall be exempt from Development Charges
provided one or more of the following is met:
a) Twenty percent of all dwelling units are universally accessible in
accordance with Town initiatives, or
b) Twenty percent of the dwelling units contain three or more
bedrooms, or
a) Is located within 250 metres of the Commercial Core designation as
shown in Schedule "A" of the Town's Official Plan, or
b) Is located within 250 metres of a future transit corridor, if applicable.
4. Development charges payable for Rental Housing Developments, where all of
the Dwelling Units are intended to be used as rented residential premises,
shall be reduced based on the number of bedrooms in each Dwelling Unit as
follows:
a) 3 or more bedrooms - 25% reduction;
b) 2 bedrooms - 20% reduction; and
c) all other quantities of bedrooms - 15% reduction.
Rules with Respect to Exemptions for Intensification of Existing Housing
1.
Notwithstanding Section 4 above, the creation of additional residential
units in existing and new residential developments will be treated in
accordance with the Act.
2.
Notwithstanding Section 4 above, no development charge shall be
imposed with respect to developments or portions of developments as
follows:
a)
the enlargement of an existing residential dwelling unit;
b)
the creation of one or two additional residential dwelling units in
an existing single detached dwelling or semi-detached dwelling
or townhouse dwelling where the total gross floor area of the
additional unit(s) does not exceed the gross floor area of the
existing dwelling unit; and
c)
the creation of one additional dwelling unit in any other existing
residential building provided the gross floor area of the additional
unit does not exceed the smallest existing dwelling unit already
in the building.
3.
Notwithstanding subsection 5(2)(b), development charges shall be
calculated and collected in accordance with Schedule "A", where the
total residential gross floor area of the additional one or two dwelling
units is greater than the total gross floor area of the existing single
detached dwelling unit.
4.
Notwithstanding subsection 5(2)(c), development charges shall be
calculated and collected in accordance with Schedule "A", where the
additional dwelling unit has a residential gross floor area greater than,
a)
in the case of semi-detached house or multiple dwelling, the
gross floor area of the existing dwelling unit, and
b)
in the case of any other residential building, the residential gross
floor area of the smallest existing dwelling unit.
Rules with Respect to an Industrial Expansion Exemption
1.
Notwithstanding Section 5, if a development includes the enlargement
of the gross floor area of an existing industrial building:
a)
there shall be an exemption from the payment of development
charges for one or more enlargements of an existing industrial
building on its site, whether attached or separate from the
existing industrial building, up to a maximum of fifty per cent of
the gross floor area before the first enlargement for which an
exemption from the payment of development charges was
granted pursuant to the Development Charges Act or this
subsection. Development charges shall be imposed in
accordance with Schedule "A", with respect to the amount of
floor area of an enlargement that results in the gross floor area of
the industrial building being increased by greater than fifty per
cent of the gross floor area of the existing industrial building; or
b)
if the gross floor area is enlarged by more than fifty percent,
development charges are payable on the amount by which the
enlargement exceeds fifty percent of the gross floor area before
the enlargement.
Development Charges Imposed
1.
Subject to subsection (2), development charges shall be calculated and
collected in accordance with the provisions of this by-law and be
imposed on land to be developed for residential and non-residential
uses, where, the development requires:
a)
the passing of a zoning by-law or an amendment thereto under
Section 34 of the Planning Act;
b)
the approval of a minor variance under Section 45 of the
Planning Act;
c)
a conveyance of land to which a by-law passed under subsection
50(7) of the Planning Act applies;
d)
the approval of a plan of subdivision under Section 51 of the
Planning Act;
e)
a consent under Section 53 of the Planning Act;
f)
the approval of a description under Section 2 of the
Condominium Act, 1998; or
g)
the issuing of a permit under the Building Code Act, in relation to
a building or structure.
2.
Subsection (1) shall not apply in respect to:
a)
local services installed or paid for by the owner within a plan of
subdivision or within the area to which the plan relates, as a
condition of approval under Section 51 of the Planning Act;
b)
local services installed or paid for by the owner as a condition of
approval under Section 53 of the Planning Act.
Local Service Installation
Nothing in this by-law prevents Council from requiring, as a condition of an
agreement under Section 51 or 53 of the Planning Act, that the owner, at their
own expense, shall install or pay for such local services, within the Plan of
Subdivision or within the area to which the plan relates, as Council may
require in accordance with the Town's policy in respect to local services.
Multiple Charges
1.
Where two or more of the actions described in subsection 7(1) are
required before land to which a development charge applies can be
developed, only one development charge shall be calculated and
collected in accordance with the provisions of this by-law.
2.
Notwithstanding subsection (1), if two or more of the actions described
in subsection 7(1) occur at different times, and if the subsequent action
has the effect of increasing the need for municipal services as set out in
Section 2, an additional development charge on the additional
residential units and additional gross floor area shall be calculated and
collected in accordance with the provisions of this by-law.
Services in Lieu
1.
Council may authorize an owner, through an agreement under Section
38 of the Act, to substitute such part of the development charge
applicable to the owner's development as may be specified in the
agreement, by the provision at the sole expense of the owner, of
services in lieu. Such agreement shall further specify that where the
owner provides services in lieu in accordance with the agreement,
Council shall give to the owner a credit against the development charge
in accordance with the agreement provisions and the provisions of
Section 39 of the Act, equal to the reasonable cost to the owner of
providing the services in lieu. In no case shall the agreement provide for
a credit that exceeds the total development charge payable by an
owner to the Town in respect of the development to which the
agreement relates.
2.
In any agreement under subsection (1), Council may also give a further
credit to the owner equal to the reasonable cost of providing services in
addition to, or of a greater size or capacity, than would be required
under this by-law.
3.
The credit provided for in subsection (2) shall not be charged to any
development charge reserve fund.
Rules with Respect to Redevelopment
In the case of the demolition of all or part of a residential or non-residential
building or structure:
1.
A credit shall be allowed, provided that the land was improved by
occupied structures (or structures capable of occupancy) within the five
years prior to the issuance of the building permit, and the building
permit has been issued for the development or redevelopment within
five years from the date the demolition permit has been issued; and
2.
If a development or redevelopment involves the demolition of and
replacement of a building or structure, or the conversion from one
principal use to another, a credit shall be allowed equivalent to:
a)
the number of dwelling units demolished/converted multiplied by
the applicable residential development charge in place at the
time the development charge is payable;
b)
the gross floor area of the building demolished/converted
multiplied by the current non-residential development charge in
place at the time the development charge is payable;
c)
in the case of a mixed-use building or structure, by an amount
calculated by the residential use for the existing type of dwelling
units and by gross floor area for the non-residential use portion,
of the unit that has been or will be demolished or converted to
another principal use
3.
A credit can, in no case, exceed the amount of the development charge
that would otherwise be payable, and no credit is available if the
existing land use is exempt under this by-law.
4.
A credit will only be applied to buildings or structure located within the
same parcel or site plan unless otherwise agreed upon by Council.
5.
For greater certainty, and without limiting the generality of the foregoing,
no credit shall be allowed where the demolished building or structure or
part thereof prior to the demolition or conversion would have been
exempt from the payment of development charges pursuant to this by
law.
Timing of Calculation and Payment
1.
Development Charges imposed under this by-law are calculated,
payable and collected in accordance with the Act.
2.
Despite Section 12.1., Council may from time to time, and at any time,
enter into agreements providing for all or part of a development charge
to be paid before or after it would otherwise be payable, in accordance
with Section 27 of the Act.
Reserve Funds
1.
Monies received from payment of development charges under this by
law shall be maintained in a separate reserve fund by the following
categories: Library Services, Fire Protection, Police Services, Parks and
Recreation Services, Services Related to a Highway: Public Works and
Fleet, Waste Diversion Services, Development Related Studies, Land,
Services Related to a Highway: Roads and Related, Storm Water
Drainage and Control Services, Water Services and Wastewater
Services.
2.
Monies received for the payment of development charges shall be used
only in accordance with the provisions of Section 35 of the Act.
3.
Where any development charge, or part thereof, remains unpaid after
the due date, the amount unpaid shall be added to the tax roll and shall
be collected as taxes.
4.
Where any unpaid development charges are collected as taxes under
subsection (3), the monies so collected shall be credited to the
development charge reserve funds referred to in subsection (1).
5.
The Treasurer of the Town shall, in each year commencing in 2027 for
the 2026 year, provide to Council a statement in respect of the reserve
funds established hereunder for the prior year, containing the
information set out in Section 12 of O. Reg. 82/98.
By-law Amendment or Appeal
1.
Where this by-law or any development charge prescribed there under is
amended or repealed either by order of the Ontario Land Tribunal or by
resolution of Council, the Treasurer shall calculate forthwith the amount
of any overpayment to be refunded as a result of said amendment or
repeal.
2.
Refunds that are required to be paid under subsection (1) shall be paid
with interest to be calculated as follows:
a)
Interest shall be calculated from the date on which the
overpayment was collected to the date on which the refund is
paid;
b)
The Bank of Canada interest rate in effect on the date of
enactment of this by-law shall be used.
3.
Refunds that are required to be paid under subsection (1) shall include
the interest owed under this section.
By-law Indexing
The development charges set out in Schedule "A" to this by-law shall be
adjusted annually as of January 1st of each year commencing January 1,
2027, without amendment to the by-law, in accordance with the most recent
twelve (12) month change in the Statistics Canada Quarterly Non-residential
Building Construction Price Index for Toronto.
Severability
In the event any provision, or part thereof, of this by-law is found by a court of
competent jurisdiction to be ultra vires, such provision, or part thereof, shall be
deemed to be severed, and the remaining portion of such provision and all
other provisions of this by-law shall remain in full force and effect.
Headlines for Reference Only
The headings inserted in this by-law are for convenience of reference only and
shall not affect the construction of interpretation of this by-law.
____________________________
____________________________
____________________________
By-law Registration
A certified copy of this by-law may be registered on title to any land to which
this by-law applies.
By-law Administration
This by-law shall be administered by the Treasurer and the Chief Building
Official.
Schedules to the By-law
The following Schedules to this by-law form an integral part of this by-law:
Schedule "A" - Development Charges effective the date the by-law comes into
force to the expiration of the by-law.
Date By-law Effective
This By-law shall come into force and effect on XX. For greater clarity, the
development charges set out in this by-law shall apply to any building permits
issued on or after XX.
Date By-law Expires
This By-law expires ten (10) years after the day on which it comes into force.
Short Title
This by-law may be cited as the "Town of Saugeen Shores Development
Charge By-law, 2026."
Read, passed and sealed this XX day of XX.
Luke Charbonneau, Mayor
Kaitlin Bos, Clerk
By signing this By-law on [date], I, Mayor Luke Charbonneau, will not exercise the
power to veto this by-law pursuant to subsection 284.11 (4)(a).
Luke Charbonneau, Mayor
Schedule "A"
To By-law XX - 2026
Schedule of Development Charges Effective the Date the By-law
Comes into Force Until By-law Expiry