The cost for developers to pay cash in lieu of providing parking spaces in downtown Orillia is set to nearly triple.
At last week's council meeting, city politicians approved a hike in fees from $4,000 to $11,000 per parking space for developers who wish to pay cash in lieu of parking for downtown projects — the first such increase in decades.
The policy applies to the city’s downtown area overlay zone, where developers are able to pay cash in lieu of parking fees when they are unable or do not wish to provide a given project’s required number of parking spaces.
Fees collected from the policy are used by the city to purchase property and create parking spaces downtown.
“These values are out of date and don't reflect the cost of purchasing land for new parking lots or constructing new parking spaces,” senior planner Jill Lewis told city politicians at the council meeting. “As such, staff is recommending that the cash-in-lieu-of-parking policy be updated to charge $11,000 per space for those that cannot be provided.”
The city carried out a benchmarking study across numerous Ontario municipalities, finding some cities do not charge a cash-in-lieu fee, while others — like Kitchener — charge more than $41,000 per space.
The average across benchmarked municipalities was slightly less than $11,000, and staff estimate an average value of $12,800 for the cost of land and $6,000 for the creation of a parking space.
Under the policy, developers will still be able to apply for a minor variance or zoning bylaw amendment to reduce the required number of parking spaces, Lewis said.
In her report to council, Lewis said there has recently been “increased interest” from developers to pay cash in lieu. She also noted hiking the price too high would increase the likelihood of developers seeking minor variances.
City staff provided three options to council, with fee increases ranging from $6,000 to $18,800 per parking space, while recommending a hike to $11,000.
Coun. Jay Fallis expressed support for the lesser increase in fees and he questioned how parking for affordable housing developments would be affected by the changes.
“I thought that ($11,000) posed a bit of a big leap, and we’re trying to encourage some density,” he said. “I know, in our affordable housing plan, we’re talking about alleviating this as a requirement … Just curious if we’re already factoring this in when we’re bringing this report forward.”
Lewis said staff plan to bring forward a zoning bylaw amendment in the spring to implement the city’s affordable housing action plan, which includes exemptions for parking.
“What we will be recommending to council is that, for not-for-profit and government affordable housing in the downtown, no parking be required for the affordable housing, and that parking outside of the downtown be at 50 per cent rates,” she said.
“There wouldn’t be a requirement to provide parking, so they wouldn’t be subject to paying cash in lieu.”
