The Price of Development – What you need to Know
Before you decide to develop your piece of land, there are many costs you need to know about.
Whether you wish to sever a portion of your land to create a new lot or develop a 300 lot plan of
subdivision, the cost to develop can be overwhelming.
The costs will depend largely on the type of development application - is it for an Official Plan
Amendment, a rezoning, a plan of subdivision or a plan of condominium? It depends on the conditions
of the site - does the site contain any significant wetlands, or is it home to an endangered species? What
was the former use of the site? Does it contain any hazards? These factors determine the range of
technical studies required as part of your development application. Municipal staff will review the
studies and evaluate the suitability of the site for development. Lastly, the municipality in which you are
developing also affects your cost, as application fees differ from municipality to municipality. The
following is a list of the normal costs associated with development. Although this list is not exhaustive, it
will give you a good sense of the cost of developing land.
1) Municipal application fee: the cost for planning staff at a municipality to process, review and
evaluate your application. Here is an example of Planning Application Fees for the City of
Kawartha Lakes: http://www.city.kawarthalakes.on.ca/residents/planning-building/guidesforms/2013_Planning_Application_Fees_revised_March_5_2013.pdf
2) Local Conservation Authority fee: if your lands are located within an area regulated by a
Conservation Authority, there is a cost from the conservation authority to review and evaluate
your application, as well as a Permit Fee, if you property is regulated. Here is an example of the
Review Fees for the Kawartha Region Conservation Authority:
http://kawarthaconservation.com/projects_services/environmental_advisory_services/KRCA_Pl
anReviewFeeSchedule_Jan2013.pdf and Permit Fee:
http://kawarthaconservation.com/projects_services/environmental_advisory_services/KRCA_P
ermitFeeSchedule_Jan2013.pdf
3) District Health Unit fee: the health unit charges a fee to inspect the site where development is
proposed on either partial or private services;
4) Cost of maps, preliminary survey, technical studies in support of the application, cost of copies;
5) Cost of consultant to provide professional services in order to guide your development through
the approval process to maximize project success and minimize obstacles;
6) Costs for fulfilling conditions of consent, a plan of subdivision or a plan of condominium (your
development application may receive draft approval and can only receive final approval once a
set of conditions has been satisfied by the municipality). Some examples of conditions include:
a. Official Plan Amendment and/or rezoning
b. Entrance approval (including culvert, road improvements, inclusion of signs)
c. Site Plan
d. Parkland dedication or payment of cash-in-lieu of the parkland
e. Registration of plan
f. Registration of deeds
7) Review fee to ensure conditions have been met;
8) Costs associated with site plan approval, including drafting of the plan by a qualified design
technician and execution of site plan agreement
There is one more fee before you can start building, and it seems to be the most startling cost for most
landowners: Development Charges
What are Development Charges?
It is a charge imposed on land developers, by a municipality, to help offset the capital costs of providing
infrastructure and services to new development. The Province of Ontario passed the Development
Charges Act in 1997 allowing municipalities to pass by-laws to impose charges to new development.
Most new development must utilize existing infrastructure, such as:
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Roads
Libraries
Stormwater management
Parks and recreation
Emergency Services (i.e. Fire, Police, Ambulance)
Public Transit
Development charges are one-time charges that apply to all new development (residential, commercial,
industrial, etc) to help recover some of the costs incurred in providing the above infrastructure. You are
required to pay development charges if you: 1) erect a new building; 2) make an addition or alteration to
an existing building which increases the gross floor area or number of units; and 3) redeveloping a
property which results in a change of use.
Collection of Development Charges
The lower and upper-tier municipalities and District School Boards (Public and Catholic) normally collect
development charges at the time a building permit is issued
How much will it Cost You?
There are several factors that determine how much you will pay for development charges including the:
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Type of Development: Is it residential or non-residential (commercial or industrial)?
Size of Development: How much of the site area will be developed? What are the number of
units being proposed? Is it a single-detached dwelling or apartment building?
Location of Development: Which municipality is it located in? Is the development located in an
urban area of the municipality or outside of the urban area?
Below are three real-life examples (each a different form of development) of the costs incurred as a
result of Development Charges:
Example #1
Type of
Development
Non-Residential
(commercial
storage building)
Size of
Development
1 storey building
at 3000 ft²
Location of
Development
Urban Area
Total Charge
Rate of DC
$5.80 per ft² of
gross floor area
$17,400
Example #2
Type of
Development
Residential
Size of
Development
13 single detached
dwellings
Location of
Development
Outside of urban
area
Total Charge
Rate of DC
$20,940 per unit
$272,220
Example #3
Type of
Development
Residential
Total Charge
Size of
Development
Two (2) threestorey apartment
buildings
containing 33 and
27 units,
respectively
Location of
Development
Outside of urban
area
Rate of DC
Region:
Two bedroom
units $12,239
Township:
$8,110 per unit
$1,221,000
Summary
Knowing your fees prior to submitting an application is most beneficial as it will help determine the type
of development you wish to pursue. Application fees, review fees, permit fees, development charges,
etc, add up quickly. Consulting a professional planner who understands the process and the types of
fees that will be required for your type of development from the get-go can help you decide whether
developing your piece of land is right for you.