Development Charges

Development Charges


What are Development Charges?

The City charges fees to property developers to help pay for the infrastructure required to support growth. Property developers must pay these charges before a building permit is issued to:

  • Build new homes or residential units
  • Redevelop existing housing where the number of residential units increase
  • Build new non-residential developments
  • Redevelop existing non-residential property where the gross floor area increases

The authority to collect Development Charges is governed by the Provincial Development Charges Act, 1997.

 

2019 Development Charges Review

The current Development Charges by-law 0161-2014 will expire on June 25, 2019. You can now view the proposed 2019 Development Charges By-law.


The 2019 Development Charges By-law will be presented to Council on June 19th, 2019 for consideration.


All information related to the 2019 Background Study and By-law review can be found here. Comments on the proposed background studies and by-law can be submitted by email to karen.morden@mississauga.ca.

 

How Development Charges support Mississauga

The construction and redevelopment of buildings attract additional people to live and work in Mississauga. As a result of this population and employment growth, the City must continue to undertake infrastructure projects to accommodate more people while providing a stable level of service.

 

The money collected from Development Charges pays for the portion of the City's capital costs attributed to more people using City infrastructure as a result of new development. These are also known as ‘growth-related capital costs.’ Examples of capital projects that Development Charges could help fund include:

  • Building a new fire station
  • Constructing underpasses to address increased traffic
  • Purchasing MiWay buses
  • Expanding libraries and community centres

Mississauga’s City Council approves capital projects every year during the annual budget process and has approved the use of Development Charges to fund capital projects that benefit the whole City, not just the area from where they are collected.

 

Without these charges, the City would have to pay for growth-related capital costs from property taxes or from another source of revenue.

The review process

Every five years the City is required to update its Development Charges By-law by preparing a Development Charges Background Study. The DC Background Study contains detailed information on how Development Charges will be used to fund upcoming capital projects. The 2019 Development Charges Background Study is planned to be released spring 2019. The review process is complete once Council approves the 2019 Background Study and By-law. The By-law contains the Development Charge rates according to different types of development.

Exemptions and credits

Certain developments may be exempt from paying Development Charges, for example:

  • Building an addition on an existing residential home
  • Building a garage and/or accessory structure such as a shed on a residential lot
  • Adding a unit to an existing residential building as permitted under the City’s Zoning By-law

A demolition credit may apply if residential units or non-residential space is demolished and replaced. This credit depends on the expiration dates listed in the Development Charges By-law.

 

An industrial expansion credit may apply to the redevelopment of existing industrial buildings.

 

Any available exemptions or credits will be determined during the processing of each building permit application, as per the City’s Development Charges By-law, and cannot be determined prior to a building permit application being submitted to the City.

 

The City also collects Development Charges on behalf of the Region of Peel, GO Transit, the Peel District School Board and the Dufferin-Peel Catholic District School Board.

 

For more information on Development Charges: email eplanbuild.info@mississauga.ca or call 905-615-3200 ext. 5523.

 

Current Rates

Non-Residential Use Determination
(industrial and non-industrial)

Both the City of Mississauga and the Region of Peel have two non-residential rates, industrial and non-industrial.

The City of Mississauga's and the Region of Peel's Development Charges By-laws set out the criteria for the determination of whether a use (which is to be located within a building for which a building permit application has been submitted) is industrial or non-industrial for the purpose of calculating the development charges payable.

The industrial rate applies to uses that involve the manufacturing of raw goods or warehouse/distribution centers and truck terminals.

The non-industrial rate applies to all other uses, such as:

  • Offices

  • Restaurants

  • Motor vehicle repair

  • Repair Shops

  • Self-storage facilities

  • Stores

  • Private schools

  • Churches

  • Clubs

Zoning
The zoning of a property does not determine whether industrial or non-industrial development charges are payable.

Employment zones
The Employment Zones in the City of Mississauga Zoning By-law permit a wide range of uses and not all of them are considered to be industrial, as defined in the development charges by-laws. Examples include restaurants, offices, banquet halls, and commercial schools. For example, a new restaurant building that is to be constructed in an E3 zone would be required to pay the non-industrial development charge rates.

Industrial rate
In order for the industrial rates to apply, the primary use of the property must be for industrial purposes. A building may be used as a sales office but a portion of the building may be used to store supplies or products. As the primary use of the building is an office, the building is not deemed to be a warehouse.

The City of Mississauga and the Region of Peel will make the determination, in accordance with the Development Charges By-laws, as to whether the use is subject to industrial or non-industrial development charges.

Region of Peel - Change in Use
In cases where a non-industrial use (e.g. school, recreational, place of religious assembly, etc.) proposes to occupy a space that was previously used for industrial purposes, the Region of Peel requires that the difference between the current industrial and non-industrial development charge rates be paid prior to the issuance of a building permit. For further information please contact the Region of Peel at

Speculative Industrial Buildings
and letters of credit

Where a speculative industrial building is proposed, which could be used for industrial purposes aspeculative industrial building for which there are no tenants, the final determination as to whether industrial or non-industrial development charges are payable is made once the building is occupied.

Under the City of Mississauga and The Region of Peel's development charges by-laws, where the use of the building is unknown, development charges can be paid at the industrial rate. A letter of credit in the amount of the difference between the City of Mississauga and the Region of Peel's industrial and non-industrial rates must be filed at the time of payment.

The City will hold the letter of credit up to 36 months to provide the property owner with time to lease the building

  • If the building is not occupied within 36 months, the letter of credit will be drawn upon

  • City staff will conduct an inspection of the building once it is occupied to determine whether the building is being used for industrial or non-industrial uses. If upon occupancy, the building is determined to be industrial, the letter of credit will be returned

  • If the building is deemed to be non-industrial, the non-industrial development charges will be re-calculated at the rate in effect at the time that the supplementary payment is due - the monies previously paid at the industrial rate will be deducted. This could be higher than the amount of the letter of credit

  • Development charge rates are indexed semi-annually and as new development charges by-laws are passed, the rates will increase - the monies previously paid at the industrial rate will be deducted.

  • The property owner will have the option of submitting a cheque for the entire amount of the additional payment and having the letter of credit returned or the letter of credit will be drawn upon and a cheque may be submitted for any additional monies owing.

  • In the event that a property owner refuses to pay the additional development charges, any outstanding balance will be added to the property tax roll, as set out in the Development Charges Act.

  • The property owner will also be required to sign and submit an acknowledgement stating that the owner is aware of all the terms of paying development charges in connection with a speculative building

Letter of Credit Template Speculative Building Acknowledgement (0.13 MB) (pdf)

  • Please contact Development Services with any questions relating to a proposed non-residential use and the applicable development charges.

Contact Information

City of Mississauga:
   eplanbuild.info@mississauga.ca
   905-615-3200 x 5523

Regional Municipality of Peel:
   905-791-7800, ext. 4439

Peel District School Board:
   905-890-1010. ext. 2216

Dufferin Peel Catholic District School Board:
   905-890-0708, ext. 24163

Cash-in-lieu for park purposes may be applicable. Contact Community Services at (905) 896-5382 for information

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