Development and Parkland Dedication Charges

Development Charges

Development charges are fees imposed on new development projects to help fund the capital costs of infrastructure needed to support that growth, such as roads, water and sewer systems, and parks.

Calculation: Development charge rates are determined by municipalities based on a background study that forecasts population growth and infrastructure needs.

Who pays: Developers of new residential or commercial properties are responsible for paying development charges.

Legislation: In Ontario, development charges are governed by the Development Charges Act, 1997.

What they fund: The funds collected from development charges are used to finance capital projects that benefit the entire municipality, including:

Roads and related infrastructure
Water and sewer systems
Stormwater management
Parks and recreation facilities
Fire and police services
Transit services
Community centres

How they work: These charges are typically collected at the time of issuing a building permit.

Purpose: Development charges are collected by municipalities to recover the costs associated with providing municipal services to new developments, ensuring that growth pays for the infrastructure it requires.

2025 Development Charge Rates

Parkland Dedication Charges

Parkland Dedication By-laws, as required under the Planning Act, allow municipalities to charge developers monetary fees as part of development agreements. These fees are used by municipalities to ensure their park systems grow in tandem with their community, providing essential parkland for their residents.

By-law Requirements: Municipalities must pass a parkland dedication by-law, which outlines the specific requirements for developers, including the amount of land or cash-in-lieu to be provided.

How it Works:

Land Conveyance: Developers can fulfill their parkland dedication obligations by transferring land for park or public recreational purposes.
Cash-in-Lieu: Alternatively, developers can pay a fee (cash-in-lieu) that the municipality can use to acquire land for parks or develop recreational facilities.

Purpose: The primary goal of parkland dedication is to fund the growth-related costs of land for parks and other recreational purposes, ensuring that residents in growing communities continue to have access to parks and greenspace.

Planning Act Authority: The Planning Act empowers municipalities to implement parkland dedication by-laws, which are tools to ensure that new developments contribute to the creation and maintenance of parks and recreational areas.

Parkland Dedication By-law