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# Development Charges
## What are Development Charges?
Municipalities in Ontario use Development Charges (DCs) to recover growth related capital costs associated with residential and non-residential growth.
In accordance with the Development Charges Act, 1997, DCs are collected at the building permit stage to help the Town pay for the capital related costs of municipal services needed to support the new development. These services include, roads, storm water, fire emergency services, roads, parks, recreation, libraries and by-law enforcement.
* Under the Development Charges Act, 1997 (DCA) section 2, development charges are charged for development that requires approval under the:
+ Planning Act for a zoning by-law amendment, a minor variance, a conveyance of land, approval of a plan of subdivision or consent under section 53.
+ Condominium Act for the approval of a description under section 9, or
+ Building Code Act for the issuing of a permit in relation to a building or structure.
The DCA has also specified that the following development does not incur development charges.
+ The enlargement of an existing dwelling unit (i.e. adding additional gross floor area to a residential home, as long as additional dwelling units are not created),
+ The creation of additional dwelling units (depending on the number created) in existing residential buildings, when no additional gross floor area is added.
+ Expansion of existing industrial development, for enlargements where the gross floor area is expanded by 50% or less.
+ Municipalities or a board as defined in subsection 1(1) of the Education Act.
Development charges are also not applicable to interior renovation building permits unless the renovation is for the purpose of a change of use (between development types) or additional non-residential gross floor area is added.
* | Process Steps | Dates |
| --- | --- |
| Municipality issued RFP for Development Charges Study | February 14, 2024 |
| Development Charges Background Study RFP awarded to Watson & Associates | August 14, 2024 |
| Staff Kick Off Meeting | Sept 5, 2024 |
| Draft Development Charges Background Study presented to Council | April 9, 2025 |
| Development Charges Background Study and Draft Development Charges By-law available to public | TBD |
| Public Stakeholder Meeting | May 20, 2025 4:30 - 5:30 pm |
| Public Meeting of Council | May 20, 2025 6:00 - 8:00pm |
| Development Charges Background Study and associated Addendum, filed for information purposes | November 26, 2025 |
* The Municipality of South Dundas retained consultants Watson & Associates Economists Ltd. to undertake a Development Charges Background Study, as prescribed by the Development Charges Act 1997.
The complete background study, which can be downloaded below, addresses the forecasted amount, type, and location of growth for the community, the requirement for "rules" governing the imposition of development charges, and provide sufficient background information on the legislation, recommendations and the basis for these recommendations.
The Watson & Associates team has had a number of meetings with Municipal Council and Staff and have undertaken significant data collection exercises to arrive at their conclusions and present their recommendations.
Development Charges Background Study