The Town of LaSalle is poised to consider a significant increase in development charges for new residential construction, with a proposed hike of nearly $10,000 per single-family home. This move comes as the municipality grapples with funding the infrastructure needed to support projected growth over the next decade.
Proposed Fee Structure and Rationale
According to a background report prepared by Watson & Associates Economists, LaSalle is considering implementing development charges of $34,036 for single-family residential homes townwide. This represents a substantial increase from the current rate of $24,747 per residential unit. For urban areas specifically, the charge would rise to $39,387, while homes in the full-sanitary service area would face a fee of $43,698.
Daryl Abbs of Watson & Associates, who presented the findings to town council last week, emphasized that these charges are essential to cover the capital costs of new infrastructure required to accommodate LaSalle's growth. "If you don't use development charges, the money needs to come from somewhere," Abbs explained. "And so if it's a tax-supported service, that money comes from your tax-supported reserves or taxes. And if it's a rate-supported service, (water or) waste water, it would come from your rates or your rate-supported reserves."
Growth Projections Driving Fee Increases
The proposed fee increases are driven by substantial growth projections for LaSalle. Over the next ten years, the town anticipates welcoming approximately 6,600 new residents across just over 2,600 residential units. This growth pattern closely mirrors the town's development over the past decade, during which 2,690 residential building permits were issued from 2015 to 2024, averaging 269 permits annually.
Looking further ahead, by 2051, LaSalle is projected to grow by 15,877 people in just under 6,800 residential units. Non-residential growth is also expected to be significant, with 1.35 million square feet of floor space anticipated over the next decade and nearly three million square feet projected by 2051.
Impact on Non-Residential Development
While residential development charges are set to increase, non-residential units would see a different fee structure. Townwide service charges for non-residential units would actually decrease by $1 per square foot to $9.03. However, areas with wastewater services would include an additional $2.24 per square foot, resulting in a total charge of $11.27 per square foot.
Abbs noted that this reduction in non-residential fees reflects a shift in growth forecasts that emphasize residential development over commercial and industrial expansion. This recalibration aims to align fee structures with actual anticipated development patterns.
Exemptions and Regional Context
The proposed development charges would include exemptions for certain types of housing, including affordable housing and long-term care homes. This recognizes the community's need for accessible housing options while still generating revenue from market-rate developments.
LaSalle's discussion occurs within a broader regional context of municipalities grappling with growth funding. Recently, Essex County chose to implement its first-ever development charge at $8,600 per residential unit, significantly lower than the initially proposed $13,000. The county also decided to phase in the charge over ten years starting in 2028, effectively sharing some growth costs with existing taxpayers rather than placing the entire burden on new development.
Balancing Growth and Infrastructure Costs
With LaSalle's current population standing at approximately 37,800 residents, the town faces the challenge of accommodating substantial growth while maintaining quality services and infrastructure. The development charge debate represents a fundamental question about who should bear the costs of municipal expansion.
The proposed bylaw will be debated on March 10, with council members weighing the need to fund necessary infrastructure against potential impacts on housing affordability and development activity. The decision will shape how LaSalle manages its growth trajectory and finances the public services and facilities required to support an expanding community.
