The provincial government of Nova Scotia has indicated its support for Halifax’s proposal to raise development fees to accommodate the city’s rapid expansion. Halifax council recently requested municipal staff to approach the provincial government for a potential increase in development-related fees, which have remained unchanged since 2023. If approved, the staff will present a report to council outlining various options for fee adjustments.
Councilor Laura White, who initiated the motion, highlighted that the current fee structure was established during a period of minimal growth in Halifax, emphasizing the need for an update given the city’s current growth trajectory. A review by Halifax staff compared the city’s fees with those across the country, revealing that Halifax’s fees are notably lower than the national averages for both high-rise and low-rise developments.
Citing concerns about missing out on the housing boom, Councilor Kathryn Morse stressed the importance of adjusting fees to align with the city’s budgetary requirements. Deputy Mayor Patty Cuttell echoed this sentiment, underscoring the need for growth to sustain itself financially. The existing freeze on development fees, imposed by the provincial government in 2023 and extended until November 2026, is part of Nova Scotia’s agreement with the Canada Housing Infrastructure Fund.
While Halifax council members expressed intentions to carefully consider any fee adjustments in consultation with the housing industry, Mayor Andy Fillmore was the sole dissenter in the vote. The council also directed staff to explore the possibility of implementing a regional development charge to fund essential services supporting new developments.
Additionally, there is a push for Nova Scotia Power to pay property taxes rather than providing a grant to Halifax, as the current grant falls short of the potential tax revenue. Discussions with the Nova Scotia Federation of Municipalities may be necessary for this proposed change. Municipal Affairs Minister John A. Macdonald indicated openness to considering such modifications, emphasizing the government’s willingness to review municipal proposals.
The potential revisions to development fees and property tax structures are part of Halifax’s broader strategy to address the challenges and financial implications of the city’s growth.