Businesses wanting to establish a presence in Timmins' west end will now pay a development charge to offset the costs of recent infrastructure upgrades in the area.
“The west end seems to be where most of the new development wants to go because they are building upon other big retailers out there,” said Mark Jensen, director of the development and community services department for the city.
Over the past few years, box stores have been established there such as Home Depot, Mark's Work Wearhouse, Michael's and Canadian Tire.
That area, however, had capacity issues with infrastructure so the city undertook a servicing project in the west end to expand sewer and water services and constructed a road for a new development corridor just off Riverside Drive (from McBride to Camille Streets).
For any new development or expansion in that area, the development charge is close to $15,000 per acre, which covers only 50 per cent of the total cost. If the development is located on the new roadway, an additional cost of $5,000 is being levied to pay for 50 per cent of the cost of the road work.
“As we move forward, we have aging infrastructure and new demands for infrastructure,” Jensen said. “If businesses want to develop there (west end), we are willing to spend the money to make the improvements so their properties can profit.”
The $5,000 charge is an estimate since the final cost will only be known once the work on the roadway is complete. Once known, the bylaw will be adjusted to reflect the true cost.
About $6.2 million (net cost to city) was spent on the water and sewer expansion and an additional $1.8 million (net cost to city) was spent on the roadway.
About 208 acres are available to be developed with the $15,000 per acre development charge and about 180 acres are available along the new roadway.
For those interested in establishing in the downtown core, the city's community improvement plan for that area offers incentives for developers.
“In the downtown core, we have infrastructure in the ground and capacity, and we have underutilized and vacant property and opportunities for land disassembly,” Jensen said. “If you want to come down and develop retail or a business, we have programs to provide you with incentives.”
Municipal services are there and no servicing upgrades are required.
“It's like we are beating them with a stick on the west end and giving them candy to go downtown but they both work together,” he said.
The city has not collected development charges for the residential sector for the past six to seven years as well.
“Developers understand they have to pay the charge but others have been calling asking for clarification,” Jensen said.
Those who have existing businesses in the west end were concerned about retroactive charges.
“The charge is only for new development. If they want to sever an acre or two off, or do something else and expand, then the charge will apply. Once this is explained, then they are OK with it.”
Jensen said there has been a lot of interest in the west end and a new hotel development was approved late last year.
“There is lots of interest in the downtown as well and over the past five years, there have been some facade improvements and renovations,” he said.
They include a former retail store that was vacant for several years that has been renovated and is currently used as a federal government office building.
“There are no development charges in the east end or downtown and there are incentives downtown so there are lots of options for development,” Jensen said.
