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Norwich Business Owner Shares Development Charges Dilemma

Photo provided by Jade Horinga

Jade Horinga's development charges estimate went from $0, to $2,800, to $29,000.

NORWICH - She's looking to shine a light on some of the barriers new business owners face.

Jade Horinga purchased the old Carnegie Library building on Stover Street in Norwich earlier this year with a goal of turning it into a beauty salon. This building has had many uses over the years, becoming a computer store once the library moved out and it was owned by the local Baptist church afterward.

Before the purchase was final, Horinga asked the Township about the development charges she might face. She was told there would be no charges because she's not making any structural changes or additions to the building and there were no parking issues or accessibility requirements. She confirmed this information three separate times with township staff.

After purchasing the building, Horinga was told that she had to apply for a building permit. During that process, she was told that she would have to pay $2,800 in development charges. She continued working on the building from there, adding a new coat of paint, sanding the floors, and buying new windows. 

It was then that she was told that there was an error, and she was actually facing $29,000 in development charges.

"I had ordered salon furniture and I had people hired, so there was no going back. The only way out of this is going to be to pay the money and try to get it back through an appeal."

Horinga says the Development Charges Act is very new, and there's a lot of room for interpretation.

"So with how the Township of Norwich has interpreted the bylaw, what's triggering the fees is that there was a change of use on the building going from a place of worship, because right before me it was owned by the Baptist church, to a commercial building. From there it's a very simple calculation based on the square footage of the building."

Horgina says $6,800 of the fees will be going to Norwich Township and the remaining $22,000 will be going to Oxford County. She is planning on appealing the charges on both levels.

When asked about the charges, Oxford County CAO Ben Addley released the following statement to Heart FM;

"Oxford County is aware of the concerns raised regarding development charges associated with a building permit for a proposed business in Norwich.

Development charges are calculated in accordance with the Ontario Development Charges Act and the County's Development Charges By-law, which establish the rules governing their application and calculation. While we cannot comment publicly on property-specific matters, these requirements are applied consistently to all development applications. If there is a disagreement regarding the application of development charges, provincial legislation provides a formal complaint process through which the matter can be brought before Council for consideration and a decision."

Horinga posted about her experience on social media and that post has been shared over 200 times on Facebook alone. It has also been shared over 70 times on Instagram.

She has a goal of opening her business, dubbed Hometown Beauty, by the end of October.

"It sucks when you're a small business and you should be focusing on opening your business and having success, but you're dealing with this on the sidelines."

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