Council is being asked to approve a bylaw that will be in place for the next 10 years on the basis of what infrastructure development might be needed over the next 30 years.
The case for development charges seems straightforward: growth creates infrastructure requirements, and existing taxpayers should not carry all the costs.
The term “taxpayer” generally alludes to the residential tax base and in these discussions, appears to overlook the direct revenue generated through non-residential property taxes and service fees plus the indirect revenue through employment and community engagement.
Belleville’s current bylaw was adopted in 2021 and will expire in January, 2027.
In the drafting of a new bylaw, the Development Charges Background Study was commissioned to calculate the rate and has been presented to Council and the community for feedback.
The 2021 bylaw exempted qualifying industrial development and as an example of how development charges would contribute to revenue, Council heard through the presentation of the study and staff reports that approximately $14.4 million was “left on the table” through exemptions associated with three projects in the past five years.
Council removed that exemption on July 14, 2025 and industrial projects are therefore currently subject to Belleville’s non-residential rate: $9.84 per square foot in the urban area and $6.44 in the rural area. The new “eligible rate” based on projected growth and estimated infrastructure requirements calculates is coming in at $26.64.
The study does not include any assessment of the risk to their projections if development charges are imposed, nor does it offer any calculation of what might be lost in tax revenue and service fees over the same period of time.
Our correspondence to Council intends to support a broader discussion that includes:
The discussion cannot be reduced to either charging developers or making residential taxpayers “pick up the tab.” A successful industrial project can generate decades of taxes and user fees, create employment and support local suppliers.
If a rate is based on projections, the same projections should be applied to tax and service revenues.
Industrial development is a globally competitive market and while Belleville holds an enviable position along the 401 corridor, it is one of many municipalities competing as the final location of choice for both national and international investment and expansion.
As noted by Chris King, Executive Director for Quinte Economic Development Commission:
The economic impact of manufacturing extends far beyond direct employment and property taxes. Manufacturers create substantial indirect economic benefits through their supply chain spending, generating a significant multiplier effect across the region. Local and regional businesses—including industrial trades (electrical, mechanical, and other specialized contractors), equipment suppliers, construction and maintenance firms, technology providers, transportation companies, training organizations, vehicle dealers, and numerous other service providers—benefit from this ongoing investment.
So, who should pay for growth?
Municipalities need infrastructure to support growth. Those costs are real, and development charges are one way to help pay for them. Population growth and residential development add to the tax base and generates the revenue needed for a long list of services provided by the municipality to its citizens.
Housing developments have been fighting the impact of this upfront charge and ultimately, the expense is handed down to the first homebuyer in the purchase price but it still presents a risk to the developer because housing prices are subject to multiple market variables, from building material expenses to mortgage rates. The residential developer takes this risk with the first-time sale, and if the selling price of a lot or new house doesn’t cover the costs to develop or build it, they bear the loss but their exposure to risk has also ended.
The province recognizes development charges as a deterrent to growth, and recently created the Development Charges Rebate Program where municipalities can apply for funding to recoup the “loss” in providing the rebate.
An owner-occupied industrial facility calculates its upfront investment based on the potential of years—often decades—of successful operation. Its return remains exposed to interest rates, tariffs, labour and energy costs, technology advancements, exchange rates and changing markets.
Belleville’s Employment Lands Community Improvement Plan can provide rebates or payment assistance to eligible projects. It is a valuable tool, but not the same as a clear bylaw exemption.
While CIP assistance is promoted as a tool that will encourage engagement with potential investors, the process itself may be perceived is highly subjective and not openly transparent because it relies on staff evaluation, Council approval, funding and program limits. This creates uncertainty when investors compare locations. New sectors may not fit current definitions, while automated facilities may create fewer jobs but generate substantial assessment.
New investors will compare options and upfront development charges may be regarded as a significant deterrent. The process of negotiating exemptions vs. a location that does not apply them may cross Belleville off the list, especially when any advantages are relatively equal, particularly when compared to Napanee or Kingston in Eastern Ontario.
On the other hand, development charges do not apply to every investment and many existing-industry investments may be unaffected. Under Ontario’s Development Charges Act, an expansion of an existing industrial building by 50 per cent or less is generally exempt. For a larger expansion, the charge generally applies only above that threshold. Equipment investments that do not add floor area would not normally generate a charge.
Nevertheless, it should be acknowledged that a posted rate may be a red flag when companies compare international locations for a major expansion or new facility.
The decision is not simply whether growth should pay for growth. It is whether a development charges policy sends a message to new investors they are not really welcome and to existing businesses their contributions to revenue and community impact may not be valued.
As the proposed bylaw comes forward, the Chamber is concerned that Council has not been provided sufficient information to make a decision that will be in place for the next 10 years, including an additional analysis of:
Community feedback was invited through a public consultation to Council in July, where only two manufacturers, two real estate agents and the Chamber made presentations countering the proposed bylaw.
Kim Egan, of GH Manufacturing, who presented at City Council on July 14, stated “Guenther and I are very concerned not only for our business but for the community if the City of Belleville approves this proposed increase for industrial development charges. We know our Industrial/Commercial colleagues are tired, busy and just don’t think that their input will change anything, and therefore opted not to invest their time.”
There is also a survey link on the City’s website, but even though Council was asked how the feedback would be used, it was not explained how the input would be incorporated into any report or final decision. The survey also requires respondents to identify themselves with their comments and may be a deterrent to an individual/organization.
The Chamber has provided a similar opportunity to collect feedback, with optional questions to build a strong case around the value business brings to Belleville. Respondents are still asked to identify themselves for the purpose of eliminating duplication, but they will remain anonymous in the presentation to Council.
The survey remains open until Friday, August 21, 11:59 pm. TAKE THE SURVEY NOW
Ultimately, the Chamber will ask the city to undertake further study before voting on the proposed bylaw.
