Ontario

Whitby Cuts Building Fees to Draw Hotels and Rental Housing

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boringnews
September 3, 2026 6:07 pm

Whitby council has approved a pair of development charge discounts aimed at bringing a hotel and conference centre to town and getting more purpose-built rental housing built. The measures were passed at a special meeting on August 26, 2026.

The first program offers a 50 per cent discount on development charges for hotel and conference centre projects. Based on current rates, that works out to roughly $1 million to $2 million per hotel development. To qualify, applicants must secure building permits within 18 months. The program is competitive and time-limited, meaning it is not tied to a single developer.

Three hotel projects are already enrolled in the program. Once built, they are projected to generate between $540,000 and $870,000 in annual revenue for the town through property taxes and the Municipal Accommodation Tax. They are also expected to bring $8.4 million to $14 million in new off-site visitor spending each year, supporting local restaurants, retailers, and other businesses.

The new incentive comes weeks before the September 12 opening of the Fieldgate Sports Complex. The $155-million facility is expected to draw sport tourism, and a 2025 staff report found Whitby does not have enough hotel or convention space to meet that demand.

The second program targets rental housing. Developers of purpose-built rental buildings can get up to a 50 per cent discount on residential development charges and pay the remainder over 10 years after occupancy. Mayor Elizabeth Roy said high construction and financing costs, labour pressures, and economic uncertainty make it hard for major projects to move ahead without incentives.

Both programs align with Whitby’s 2023-2026 Community Strategic Plan, which lists a new hotel and conference centre and more housing options as priorities. The rental housing discount also supports the town’s pledge to help deliver 18,000 new homes by 2031.

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