Oshawa is facing a critical infrastructure crisis. In my Ward One, our roads remain incomplete, sidewalks are missing, and drivers and pedestrians are being put at serious risk. We regularly hear that projects are deferred and delayed because of City funding shortages.
When told there isn’t enough money in the budget to fix these hazards in and around the City's massive new housing developments I've strenuously complained, and continue to complain.
In a recent Blog post about the accident on Harmony Rd. N. at Britannia Rd E on August 17 I described how it seems to be a textbook case on how both a lower tier and upper tier municipality need to better prepare for growth!. But there is another facet to the problem. Oshawa's willingness to walk away from tens of millions of dollars in revenue—leaving residential homeowners to pay the price.
The "Oshawa Gamble" Explained
Oshawa stands alone as the only lakeshore municipality in Durham that charges zero local development charges (DCs) on industrial construction.
Development charges are standard fees meant to ensure that "growth pays for growth." They force developers to pay upfront for the roads, pipes, and emergency services their new buildings require.
According to the City's own April 2024 Staff Report CNCL-24-34, giving developers a 100% free pass cost Oshawa taxpayers $15.5 million in lost revenue in the preceding decade. Worse still, staff calculated that continuing this exemption our city would forego an additional $20 million in future revenue over the current by-law cycle. That is a combined $35.5 million hit to our local infrastructure pocket.
The Mayor’s Narrative vs. The Regional Reality
The Mayor and four other members of Council fiercely defend this corporate handout. Following the recent Association of Municipalities of Ontario (AMO) conference just a couple weeks ago in Ottawa, Mayor Dan Carter boasted about Oshawa’s:
"...targeted development charge exemptions that have been in place for more than a decade."
The establishment argues that sacrificing this upfront cash guarantees "long-term gains" and that businesses wouldn't come here without it. But the data proves them wrong.
A Rising Tide Lifts All Boats
The Durham Workforce Authority labour market data reveals that the corporations moving into Durham Region share the same profile across all five lakeshore municipalities. Massive logistics hubs, advanced manufacturing, and e-commerce giants are flooding into our region—not because of Oshawa's tax discount, but because of regional macro-trends.
A rising economic tide is lifting all boats in Durham. Our neighboring municipalities all charge full development fees, yet they are experiencing the exact same industrial boom:
Behind the 8-Ball: The Provincial Squeeze
What makes the current council's stubbornness truly regrettable is the shifting provincial landscape. The Province of Ontario is actively decreasing and capping municipal development charges.
Because past councils were stuck on maintaining corporate exemptions during the peak years of the industrial boom, Oshawa completely missed its window of opportunity to build a massive infrastructure reserve. Now, with provincial restrictions tightening, even a new council voting to eliminate the exemption will find it incredibly difficult to play catch-up. The city has been left structurally disadvantaged by its own leadership.
The Cost to Ward One
By giving a multi-million-dollar gift to highly profitable developers, City Council forced a dangerous compromise:
When told there isn’t enough money in the budget to fix these hazards in and around the City's massive new housing developments I've strenuously complained, and continue to complain.
In a recent Blog post about the accident on Harmony Rd. N. at Britannia Rd E on August 17 I described how it seems to be a textbook case on how both a lower tier and upper tier municipality need to better prepare for growth!. But there is another facet to the problem. Oshawa's willingness to walk away from tens of millions of dollars in revenue—leaving residential homeowners to pay the price.
The "Oshawa Gamble" Explained
Oshawa stands alone as the only lakeshore municipality in Durham that charges zero local development charges (DCs) on industrial construction.
Development charges are standard fees meant to ensure that "growth pays for growth." They force developers to pay upfront for the roads, pipes, and emergency services their new buildings require.
According to the City's own April 2024 Staff Report CNCL-24-34, giving developers a 100% free pass cost Oshawa taxpayers $15.5 million in lost revenue in the preceding decade. Worse still, staff calculated that continuing this exemption our city would forego an additional $20 million in future revenue over the current by-law cycle. That is a combined $35.5 million hit to our local infrastructure pocket.
The Mayor’s Narrative vs. The Regional Reality
The Mayor and four other members of Council fiercely defend this corporate handout. Following the recent Association of Municipalities of Ontario (AMO) conference just a couple weeks ago in Ottawa, Mayor Dan Carter boasted about Oshawa’s:
"...targeted development charge exemptions that have been in place for more than a decade."
The establishment argues that sacrificing this upfront cash guarantees "long-term gains" and that businesses wouldn't come here without it. But the data proves them wrong.
A Rising Tide Lifts All Boats
The Durham Workforce Authority labour market data reveals that the corporations moving into Durham Region share the same profile across all five lakeshore municipalities. Massive logistics hubs, advanced manufacturing, and e-commerce giants are flooding into our region—not because of Oshawa's tax discount, but because of regional macro-trends.
A rising economic tide is lifting all boats in Durham. Our neighboring municipalities all charge full development fees, yet they are experiencing the exact same industrial boom:
- Ajax & Pickering: Charged full fees and secured massive e-commerce and clean energy logistics hubs.
- Whitby: Maintained standard fees while rapidly expanding its corporate and data center footprint.
- Clarington: Located even further east than Oshawa, Clarington charges a standard industrial fee—yet their industrial growth is breaking records.
Behind the 8-Ball: The Provincial Squeeze
What makes the current council's stubbornness truly regrettable is the shifting provincial landscape. The Province of Ontario is actively decreasing and capping municipal development charges.
Because past councils were stuck on maintaining corporate exemptions during the peak years of the industrial boom, Oshawa completely missed its window of opportunity to build a massive infrastructure reserve. Now, with provincial restrictions tightening, even a new council voting to eliminate the exemption will find it incredibly difficult to play catch-up. The city has been left structurally disadvantaged by its own leadership.
The Cost to Ward One
By giving a multi-million-dollar gift to highly profitable developers, City Council forced a dangerous compromise:
- Skyrocketing Taxes: Oshawa now struggles with the highest effective residential property tax rate in the entire GTHA to cover basic city budgets.
- Neglected Neighborhoods: Growth did not pay for growth. While big developers pocketed the savings, crucial local infrastructure projects—like the unsafe roads and missing sidewalks right here in Ward One—were left completely unfunded.