Ottawa (April 22, 2009) – To boost building and construction throughout the City of Ottawa, Council has approved a reduction in building permit fees on all construction projects.

The building permit fee has been reduced from $13.25 to $12.50 per $1,000 in construction value. For farm buildings, the fee has been reduced from $9.30 to $8.75 per $1,000 in value. These 5.6 per cent fee reductions take effect immediately, and will help reduce construction costs for businesses and residents:

• For a $50,000 renovation, the building permit fee will drop to $625, a saving of about $40.
• For the construction of a $20,000 barn addition, the fee will drop to $175, a saving of about $20.
• For a new single dwelling unit worth $190,000, the fee will drop to $2,375, a saving of $143
• For a larger project, such as the new Vanier Hall at the University of Ottawa, with an estimated construction value of $90 million, the saving will be about $67,500.

“During these challenging economic times, it is critical for all levels of government to take measures that encourage economic growth and help spur on building, construction and renovation,“ said Mayor Larry O’Brien. “Reducing building permit fees is one way the City of Ottawa can help minimize the financial pressures on our taxpayers and businesses.”

The building permit fee reduction is consistent with provisions in the Building Code Act, which stipulates that the City’s fee revenues must not exceed the costs required to administer and enforce the Act and Building Code. Because of higher than expected construction activity in 2007 and 2008, and savings due to administrative efficiencies, the City projects that it has sufficient revenues and reserves for building code administration and enforcement for the next three to five years.

“With sufficient funds available to the City from permit fee revenues and in its Building Code reserves, there is no longer a need to maintain the building permit fee at its current level, “ said Councillor Peter Hume, chair of the Planning and Environment Committee. “We have the leeway to reduce fees to help see the city and its residents through this economic downturn, while at the same time meet our obligations under the Building Code Act.”

Corporate Research Group (CRG), retained by the City to provide an analysis of Ottawa’s economic outlook for over the next three to five years, predicted the volume of construction activity, subject to building permits, would drop 25 per cent in 2009. CRG also anticipated that 2010 and 2011 would likely hold to these volume levels, with some incremental improvement.

“The lower building permit fees reflect the City’s commitment to help taxpayers and businesses weather the current economic storm,” said Councillor Steve Desroches, who tabled the motion at a Planning and Environment Committee meeting in January 2009. “Since these fees and the stabilization reserves will be sufficient to cover the costs the City will incur this year, this measure is revenue-neutral and will not put any additional burden on our municipal coffers.”

“Reducing building permit fees is one of many steps the City is taking to invest in and enhance the local economy for the benefit of all residents,” said Councillor Marianne Wilkinson, who pushed to make the new fees happen. “The lower fees will enable individuals and the business community to take advantage of federal programs. We are also looking at other steps that we can take to reduce or eliminate obstacles faced by these groups.”

For more information on the City’s building permit fees, visit ottawa.ca or contact 3-1-1 (TTY: 613-580-2401).

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