Barrie Mayor Alex Nuttall has issued a directive to reduce development charges by up to 50 percent for all applicable construction projects over the next three years, effective April 1, 2026. This change is intended to lower the cost of building new homes and commercial spaces in the city by providing significant financial relief on the fees developers pay to support local infrastructure.
The move by the City of Barrie aligns with a federal-provincial partnership announced on March 30, 2026. Through this agreement, the federal government and the Province of Ontario have each pledged $4.4 billion to help municipalities across the province lower these construction fees and support housing-related infrastructure.
Local officials have indicated that this decision aims to address a slowdown in local construction. Deputy Mayor Robert Thomson stated that the city is seeing a lack of development, which is compounding housing affordability challenges. Karen Pratt Hansen, co-owner of Pratt Homes Barrie, noted that development charges represent the largest single cost in home construction within the city and described the move as a step in the right direction for the industry.
The city has previously taken steps to encourage building, including a 12 percent reduction in charge rates approved in 2024 following a mediated settlement with the Ontario Land Tribunal. Additionally, the city has utilized $53.5 million in grants from the Ministry of Infrastructure to support growth-related projects. However, city financial records show that the development charge reserve balance has declined, dropping from $117 million at the end of 2024 to a projected $56 million by the end of 2025.
Mayor Nuttall implemented the new directive using his strong mayor powers, a tool he has used approximately 50 times since August 2023 to advance housing and bylaw initiatives. This new reduction builds upon existing local measures, such as a previously approved program for fee deferrals and a $30 million pilot project focused on waiving charges for affordable housing developments.
