Council Supports Potential Cut to Development Charges Throughout Lakeshore

At the regular meeting of June 9, 2026, Lakeshore Council committed to cut all development charges by 50 per cent for a three-year period if the Municipality is successful in its estimated $52.9 million wastewater infrastructure grant application to the Development Charge Reduction Program, which is part of the $8.8 billion Canada-Ontario Partnership to Build.

The reduction in development charges would only be implemented if the grant application is approved. The grant would cover up to 90 per cent of eligible costs (estimated to be $52.9 million) of the Stoney Point Sewage Treatment Plant, which will provide wastewater treatment for Lakeshore’s eastern communities. 

“Lakeshore has once again demonstrated that we are prepared to make bold decisions and seize opportunities to achieve our infrastructure goals and meet the needs of our communities for generations to come,” said Mayor Tracey Bailey. “The housing crisis is one of the defining issues of our time, and we continue to show that we are ready to work with our federal and provincial partners to tackle those challenges head on.” 

“Lakeshore has made incredible strides with infrastructure funding in a short period of time, and I would like to thank Council and members of Administration who have made it possible,” said Interim Chief Administrative Officer Justin Rousseau. “We have built a foundation that means we are prepared with priority projects when opportunities like this arise.”

While a 50 per cent reduction to development charges would mean a loss of revenue over the three-year period, the Report to Council noted a potential net gain of $36.3 million.

Mayor Bailey added that while infrastructure investments would expand capacity for new housing, Council remains committed to protecting farmland and the rural character of Lakeshore’s communities. 

“Our approach throughout the term has been to guide the long-term growth of our rural communities in ways that reflect the desires of our residents,” Mayor Bailey said, noting that the new infrastructure would only support infill development and not the expansion of settlement areas. 

Background

• At the meeting, Council supported two resolutions related to the potential reduction in Development Charges. 
  • Directed Administration to proceed with an application for $52,960,000 under the Development Charge Reduction Program, to be applied to the Eastern Communities Water Wastewater Plan’s approved capital plans.
  • Directed the Clerk to draft an amendment to the Development Charge By-law to implement a 50% reduction for three years should the grant application be successful. The amended by-law would need to be adopted by Council at a future meeting.
• In Ontario, development charges are one-time fees levied by municipalities on new residential and commercial properties to fund growth-related capital infrastructure like roads, transit, parks, and water/wastewater infrastructure.
• At the meeting on May 12, 2026, Lakeshore Council committed funding for a sewage treatment plant as well as expansions to local sewer systems. 
• If successful, the grant would cap off a record-setting streak of grants in Lakeshore. In 2025, Lakeshore received over $7 million from the Government of Canada’s Housing Accelerator Fund, $37 million grant from the Canada Housing and Infrastructure Fund, and $32.3 million from the Government of Ontario's Housing-Enabling Water Systems Fund.