AMHERSTBURG, ONT. -- A move by the province to encourage the development of affordable housing has Amherstburg council setting some new policies of its own.
Revised provincial legislation will allow builders of multi-residential units to defer development fees upwards of six years or make payments to the town in instalments.
It also creates a greater financial risk for the town.
While Amherstburg can expect to eventually collect, in the short term, there are concerns existing taxpayers will foot the bill for things like new roads and sewers.
Town CAO John Miceli says the province is trying to give private developers an incentive to build.
"What we need to do is ensure we prescribe a rate, and if we didn't it would be zero per cent,” says Miceli. “And what we're trying do is make sure that we don't subsidize growth. Make sure that growth pays for growth."
Council decided Monday to tack on a 0.5 per cent interest charge on top of the construction index to any deferred payments.
That would ensure the town doesn't lose cash in the transaction.
