B.1.1 Timo Hotari Re Development Charges

B.1.1
Letter to Council.
To whom it may concern:
Property In Question:
191 Sunset Blvd, Thornbury Ontario N0H 2P0 ( CON 12 PT LOT 40)
Roll # 000015216050000
The purchase of 191 Sunset Blvd. and the recent submitted building permit application has precipitated
this letter and a lot of discomfort. When something doesn’t make sense it has to be looked at. The
development charge process and by -law of this town to charge twice on existing structures doesn’t
make sense or isn't fair.
The Complaints:
1.
Before I purchased the property, I had conditions! Basically, that the Lot can
accommodate a new process where I can demolish the existing structure, build a new one and
modify the property to my liking. I checked into the town building office and discussed my
interests. I picked up the building permit pamphlet available. I also paid for consultants from CF
Croziers to view the property. I also contacted The GSCA and paid them for a site visit to
comment on my ideas. I gathered all the related information packages available and did my
homework.
I waived all my conditions of the purchase agreement and purchased the Property.
The hardship started when I had submitted for permit and the new project was
accepted and approved for building by the town. My building permit was ready except that they
hadn't calculated the Development Charge. The building department didn’t know what it was
going to be. Then the finance Dept. calculated it. I was taken aback! My budgeting was off by
nearly $20K which was based off previous projects. I have estimated and built many projects,
even for this Town and I'm never off by that much.
In the beginning of when I was gathering information I was told that there would be a
credit by the building department ( as typically understood by common practice on existing
structures ). The fee pamphlet suggested that I was going to pay DC (development charges)
charges on the difference of SQFT upgrade. I was good with that!
1
With this huge unexplained expense, I questioned all the departments about this and nobody
had solid answers or explanations. Everybody was confused and all the answers I got didn’t
make sense or had no logical process reasoning behind them. The answers I received felt flawed
and unfair.
I questioned fellow contractors who have been here a lot longer than I have and they
understood it as I did. In fact.. another contractor was in the process of purchasing another
property with a similar situation except his property didn't have a house because it had burned
down.…so I warned him of what I was going through. He was outraged a was going to cancel his
purchase because it would not have been feasible….outraged with this info he went to the town
and complained. He called me back and said " hahaha I get credit ".!!??
He explained that it was because he had a water connection. ??? But..But.. I received a letter at
my last house I built (149 Sunset) and it stated that we were on the future expansion list, and
would have to pay a connection fee at that time.!? what does water have to do with it when we
have to pay for it then. hmm…very confusing and strange.
The very important information of the Development Charges on the pamphlet is
misleading and deceiving. The calculating of development charges, well after the initial
investment is punitive and predatory practice? This could break a project!!. It's no wonder why
some developers have gone bankrupt in this town. We builders could be so deep into the
project financially already at the point when they finally calculate the charge. On vacant land
,we know that it’s the full pop on DC charges.
2.
My dissatisfaction prompted me to find answers… So I questioned The town Finance
dept. Debbie Brown was there to answer my questions. She was very professional and
answered what she could and helped me with what she couldn’t by referring me to the head of
finance. She also advised me to come to the DC Workshop held on the 3rd of June at the
community center . Very helpful lady. I asked Rob Campbell ( the head of Finance) to explain…
his answer: "we have no record of DC payment for the property in question, so this is why didn’t
issue a credit".. "but if you could prove to us that something was paid , then we would gladly
issue the credit"…hmmm! So I asked the department for any records from this property.. They
had some tax roll records form the nineties, but they had passed a by-law in 08' that allows
them to purge old documents because of document volume. This completely unfair and
unilateral.
At this point, I had to dig some more. I contacted the previous owner ( an elderly lady in
her eighties) to see if she had any records on any paid DC's..she promised to look. I questioned
to myself.." look where?, and for what..?" our town deletes all records , then asks us to look for
documents..so I very politely ask an old lady to look for something that she has no clue about
because her deceased husband took care of all the matters. As far as I know she's probably still
looking.
2
I researched..
After the world wars, populations began to boom. Land was being farmed on and
settled on at a very rapid rate. Order was needed. These little houses and farms collectively
formed towns and some grew to be big and some grew to become cities. They formed councils
and town offices to organize growth, settle land disputes and guide the public, etc. In order to
do this, they needed money. To collect this money they claimed "Post Fees". Any new
settlement, home, or development paid these "post fees" to the town. In paying these Post
fees, they got a registered address. These "post fee's later changed to what a lot of us have
experienced as "Lot-Levies" . The Lot Levies also paid for schools , libraries, parks, roads,
infrastructure etc. They also maintained the services by the property tax system. Now finally,
we've changed the name to "Development Charge".
It's no wonder why the older previous owner can't find any document with "Development
Charge"…we've changed the name on her. But wait a minute! this property has a Fire number
or "green number" right? This property has been paying taxes long before this council was
formed and passed this ridiculous rule right? This property was developed and registered when
this town was in its infancy right? When this early house and all the early houses in this area
were built, they put roads for access right? they charged for all this, otherwise it wouldn’t be
there!, it wouldn’t have a green number! and they wouldn’t have paid full property taxes to this
town for more then 50-60 years. I ask council to do the math, since they have passed their own
bylaws to collect more and more money from existing developments that are being updated.
Collecting money on new development, yes! I agree. I agree with the fees on your building
Pamphlet!, but why is my fee way different then what it states on the pamphlet? The TBM
Development Charges Pamphlet pamphlet states: Res "B" upgraded to an Res "A "you pay
this "X" amount of dollars. why is mine completely different? It's completely misleading!!
I agree with growth, sure! but charging development charges on existing homes that
have collectively created this town is wrong!!! Some townships have gotten into a lot of " hot
water" for charging development charges twice. I ask council to prove to me how this house
hasn't contributed to our towns development? Why are you charging development fee's
twice?
3.
3
So to clarify my simple understanding, on the pamphlet, I approached the town's
Finance department yet again… and asked.. " so if I demolished an existing structure of 1312 sf,
with a finished walkout basement of 638 SF and built a new house with approx. 2000sf and a
finished walkout basement of the same (2000 sf ) what would my upgrade be.."?
4
I was advised (circled by town rep ).. "you have a Res "B" and you are moving up to a Res "A"…"!
Question: I ask counsel … Is this correct?
My confused question are:
1) is the finished basement included in these calculations
2) Why are my Development Charges over $23 000. when looking at brochure it clearly states as we
have always understood, to be charged on the difference of the SF's. which should be around $3000+
county charges in same ratio schedule.
Summary:
I challenge the Development Charges applied to my project, which I paid for in order to get my building
Permit and start my project, where I clearly stated at the time of paying , that I will appeal this charge
and was assured a fair chance to do this. If this process doesn’t make sense or still feels incorrect I will
ruse all means available to me as a resident of this town and a citizen of this country to find fair
treatment and justice for this unfair and predatory practice. I am sure this is not a unique situation and
is subject to class action.
Timo Hotari
5