Concerns are being raised about the impact a new 10-year development charges bylaw will have on the local greenhouse industry in Chatham-Kent.
At their meeting Monday night, members of Chatham-Kent Council passed the new bylaw, outlining water and wastewater development charges that will be imposed to recover capital costs for new users.
Among the concerns are how development charges will affect Chatham-Kent’s thriving greenhouse users, who will see a substantial increase in development charges for future greenhouse expansion. Greenhouses are estimated to make up the large majority, 80%, of future volumes for water in Chatham-Kent.
Some councillors said it’s not fair to have ratepayers pick up the tab to pay for the new water infrastructure that is needed for greenhouse growth. Other councillors said it’s a sticky situation, as greenhouse growers said if council passed the development charges it will increase costs and kill future greenhouse development in Chatham-Kent.
“As a council how do we respond to that,” said councillor Michael Bondy, on the greenhouse grower’s concerns that it will shut down the greenhouse industry locally.
PUC general manager Darren Galbraith said there are other options for greenhouse owners for their irrigation, such as using water wells and surface water.
“The PUC is not the only source of water for them,” Galbraith said, noting that greenhouses might have to move closer to Lake Erie to take advantage of surface water.
Under Ontario’s Development Charges Act, growth-related costs of certain services such as water, and wastewater, may be fully funded by the charges.
To try to help the greenhouse industry, council unanimously approved setting up a working group, composed of politicians, energy providers, the PUC, the Ontario Greenhouse Vegetable Grower representatives and greenhouse stakeholders that would meet regularly to discuss and troubleshoot various challenges and advantages to greenhouse development in Chatham-Kent.