Faced with a stagnant housing market, struggling developers deserve a break on infrastructure levies, Mayor Dave Bronconnier announced yesterday.
Speaking before a luncheon crowd of industry leaders, Bronconnier said he plans to ask council on Monday to scuttle a planned 12 per cent hike in development levies and grant a 12-month extension to developers to pay.
“If the city can do a little bit to help this industry, in this case freezing the fees, it should translate into some savings to the development industry, which should help new home buyers,” he said.
The city is in the fourth year of a five-year agreement with developers that saw an average of $130,000 per hectare paid to the city in 2008 to cover roads, transit and other services.
That levy is slated to increase to around $144,000 per hectare this year, but would be frozen if Bronconnier gets his way.
Michael Flynn, executive director of the Urban Development Institute, said with the industry slumping, any assistance is helpful.
“It may not mean enormous financial gains for us but it will enable companies to take a step back and deal with the financial crisis,” he said.
