In this second issue of the CUR GTHA Urban Digest, we argue that it is time to rethink which parties should pay for municipal costs relating to growth-related infrastructure. At present, municipalities cover about 80% of these costs from development charges and are pushing for 100% funding from this source.
However, developers and owners are just some of the beneficiaries of the economic growth and tax revenues generated by new development. As a result, they should only be saddled with the share of costs equal to their share of the total economic benefits, which is a lot less than even the 80% currently the case.
The views expressed in the Urban Digest are those of the author(s).