It's going to cost more to build in Chatham-Kent if Council approves a hike in water and wastewater development charges.
Monday night, Council will be asked by the Chatham-Kent Public Utilities Commission (CK PUC) to raise and phase-in the development charges (DC) over the next five years to construct new watermains and sewers to accommodate new development.
The recommendation is to raise both DC charges for a single and semi-detached home from the current $6,711 to $11,515 at the end of the phase-in period.
Water and wastewater DC charges for greenhouses would jump from 36 cents per square foot to $12.74 in five years.
Industrial, commercial and institutional DC charges would all increase from $3.51 per square foot to $8.30.
In his report going before council Monday night, General Manager of CK PUC Darren Galbraith said the development charges would be payable upon issuing the building permit.
The municipality must recover capital costs associated with major water and wastewater infrastructure needed to accommodate new growth getting the services and existing properties that need new water and wastewater services extended to their property.
The capital costs include supplying, treatment, storage, pumping, and transmission of water and the collection, pumping, and treatment of wastewater.
"The adoption of a municipality-wide water and wastewater DC/Municipal Act charge has had an impact in controlling the potential significant increase in water and wastewater rates," wrote Galbraith.
CK PUC and the municipality plan to spend $590.49 million over the next decade, of which $389.27 million (66%) is recoverable from development charges ($60.52 million from residential development and $328.75 million from non-residential development).
Consulting firm Watson and Associates estimates Chatham-Kent's population will grow by 15,653 until 2051 and 8,240 more residential units will be built over the next 27 years.
Industrial, commercial, and institutional floor area is also predicted to increase by 4.1 million square feet and greenhouse square footage is expected to jump by 27.3 million square feet.
The consultant noted non-profit housing is exempt from development charges and affordable and attainable units will be soon.
Rental housing developments will also receive a discount of 25 per cent for three or more bedrooms, a 20 per cent reduction for two bedrooms, and 15 per cent for one bedroom.