For developers considering or participating in residential or non-residential development projects within the City of Toronto, a new by-law proposed by the Toronto Catholic District School Board (the "TCDSB") could significantly impact the financing of such developments, increasing education development charges ("EDCs") applicable to such developments by almost 800%. The proposed by-law would increase the residential EDC rates to $7,336 per unit, and the non-residential EDC rates to $8.02 per square feet of non-exempt GFA.
The proposed by-law would also mean significant changes in the methodology used to calculate EDC rates. The new methodology does not count any leased schools against capacity projections, any existing capacity in schools greater than 1.5km from where students live, and it operates under the assumption that there will be a dramatic increase in the projected appraisal value of the lands that TCDSB will need to purchase, from $200M to $2B.
The proposed by-law is currently being challenged and for now, the EDC rates remain at $1,493 per unit for residential rates, and at $1.07 per square feet of non-exempt GFA for non-residential rates.
Stay tuned for updates on this topic and additional posts relating to development charges imposed by educational institutions.
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