As a deadline to apply for millions of dollars in federal-provincial infrastructure funding approaches, Essex is moving ahead with an application while Amherstburg has decided to opt out.
Canada-Ontario Development Charge Reduction Program
The $8.8-billion Canada-Ontario Development Charge Reduction Program would fund up to 90 per cent of eligible housing-related infrastructure projects if municipalities cut development charges by up to 50 per cent for three years. Municipalities are also required to contribute 10 per cent of project costs. The program covers infrastructure such as roads, water and wastewater systems, and transit, with a completion deadline of Oct. 31, 2035.
Regional Participation
Several municipalities in the region, including Lakeshore, Kingsville and LaSalle, have already moved to apply for funding. During the 2025 federal election campaign, the Liberals pledged to cut municipal development charges in half for multi-unit residential housing, with federal and provincial governments jointly offsetting lost municipal revenue for five years.
Amherstburg's Decision
This week, Amherstburg council chose not to pursue the program, citing concerns it could leave local taxpayers exposed to significant financial risk. Administration told council Monday that while provincial funding would offset some lost revenue, it would not fully cover the cost of growth-related infrastructure.
A potential $8.6-million road project in the town’s southeast quadrant — intended to unlock land for future housing development — had been identified as a possible submission. Deputy CAO Melissa Osbourne said participation could result in a development charge revenue shortfall of between $3.1 million and $5.3 million.
She warned those costs would ultimately need to be recovered through higher property taxes, water and wastewater rate increases, or delays to capital projects. “If council decided to go forward with this, there is a risk that the next council may need to figure out a funding source for those shortfall revenue development charges,” Osbourne said.
Council Opposition
Coun. Peter Courtney opposed participation, saying the program shifts too much financial risk onto municipalities. “I don’t like any of this,” he said. Courtney introduced a motion calling on the federal and provincial governments to instead provide housing rebates directly to homebuyers.
“I would rather see a homeowner in Amherstburg be able to take a closing document, the permits, the development charges they paid to the town, submit it to the upper tiers of government and ask for a rebate cheque mailed directly to their house,” he said. Council unanimously supported the motion and declined to apply to the development charge program.
