City wants developers to pay.

London Free Press. Thu, June 12, 2008

Proposal would end the longstanding practice of taxpayers subsidizing the costs of growth, former councillor says.

By JONATHAN SHER

London city hall wants developers to shoulder more of the cost of expanding roads, a change officials say would save taxpayers about $90 million over 20 years. The shift, one of many changes proposed by city staff, will end a long-standing practice that had taxpayers subsidizing the costs of growth, said Sandy Levin, who has represented the Urban League in talks at city hall over growth. "Taxpayers have paid more than their fair share and this will correct that going forward," Levin, a former city councillor, said yesterday. His comment drew protest from the lobby group representing developers. "It's a slanted comment," said Stephen Janes of the London Development Institute. Developers paid 70 per cent for big road projects in recent years that largely served existing residents, said Janes, pointing to Oxford Street, Springbank Drive and Commissioners Road. Click here to find out more! Is it fair to change the rules because future road projects are expected mainly along the city's periphery? he asked. For decades, London has used a cookie-cutter approach to split the costs for most new and expanded roads, with 30 per cent paid by taxpayers and 70 per cent paid by developers. Now, staff say that split no longer reflects the true costs of growth -- their report on growth will be considered Monday by city council's planning committee at a meeting in which citizens can take part. In the 1970s, most of the budget for widening roads, about 80 per cent, was for the roads themselves -- the cost of laying down asphalt, said Tony Fediw, the city's manager of engineer planning. Since then, building and widening roads have become much less basic, he said. Crews erect sound walls and lighting and build modern drainage systems. Cities pay more than before to acquire land, conduct environmental studies and add bicycle lanes. Those added costs, about 50 per cent of the total tab, wouldn't be needed if roads weren't widened, so those responsible for growth should pay, Fediw said. In the next 20 years, the city projects road works costing just more than $500 million. The existing formula would require taxpayers to pay more than $150 million -- but the revised approach would cost them about $90 million less. That extra cost will ultimately be borne by the buyers of new homes, Janes said. But Levin says most home buyers are purchasing resale homes, not newly-built ones, and taxpayers deserve a break. "This would be the easiest way council will have to cut taxes."