Media Advisory - OAA releases first report quantifying the cost of site plan approval process in Ontario

TORONTO, Oct. 10, 2013 /CNW/ - The first report to quantify the cost of delays in the site plan review process in Ontario is released today.  The Ontario Association of Architects (OAA) commissioned Bousfields Inc. and Altus Group to create the report, titled "A Review of the Site Plan Approval Process in Ontario".  The OAA report, released at the Design Exchange to an audience of industry and government leaders, clearly outlines the financial impact of the delays in site plan review on new homebuyers, commercial tenants, developers, municipalities, the local economy and jobs.

In a review of almost 500 site plan applications across the province, the report points to a process that is often delayed 6 - 12 months with over 35 per cent of applications taking longer than 9 months.

"Unnecessary delays, inefficiencies and lack of a coordinated process are creating additional costs that are inconsistent with the value of the site plan review," says Bill Birdsell, President - Ontario Association of Architects.

Each additional month in site plan review costs:

  • Residential developers $193,000 including additional taxes, financing, inflation on construction costs and materials for a 100 unit building. Over a 6-12 month period the additional cost of the delay can be $1.16 million - $2.3 million. These costs can be passed on to new homebuyers through higher prices.

  • Individual new homebuyers roughly $2,375 including costs passed on through higher prices, lost equity by not beginning a mortgage sooner and additional rent costs.

  • Commercial developers $113,000 including additional taxes, financing, inflation on construction costs and materials for a 50,000 sf building.  Over a 6-12 month period the additional cost of the delay can be $680,000 - $1.36 million.

  • Commercial tenants $2.50 to $2.70 sf including costs passed on by applicants through higher rents.

  • Local municipalities $159,900 to $241,600 in lost tax revenues and spending for a 100-unit residential building. Over a 6-12 month period the additional cost of the delay can be $959,000 - $2.9 million

  • Local municipalities $4,100 to $16,000 in lost tax revenues and spending for a 50,000 sf commercial building and delays arrival of 250 new jobs and associated economic spinoffs.

SOURCE: Ontario Association of Architects

For further information:

For more information, interviews and copy of the report please contact publicist.

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Ontario Association of Architects

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