Politics
Hawthorn City Council Approves Infrastructure Levy Ordinance, Raising New Development Fees Starting September
The July 8 vote directs $2.5 million in collected fees toward road repairs and park maintenance in the Northgate and Riverview neighbourhoods.
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How we reported this
Hawthorn City Council passed the Infrastructure Levy Ordinance by a 7-2 margin on July 8, requiring developers of projects over 10 units to pay an additional per-square-metre fee beginning in September. The measure applies to all new commercial and residential construction within city limits and channels the revenue into the 2026 capital works program.
The ordinance updates a 2021 fee schedule that had remained unchanged despite rising material costs documented in the city engineer’s March 2026 report. Council members cited the need to address a documented $4.7 million shortfall in scheduled pavement resurfacing listed in the adopted 2026-2027 budget document.
Effects on Housing Supply and Local Services
Policy analysts at the Hawthorn Planning Department project the levy will add between $8,000 and $14,000 to the final cost of each new apartment unit. Residents seeking rental housing in the downtown core may therefore face higher asking rents once those units reach the market in 2027 and 2028. At the same time, the same revenue stream is earmarked for repaving two blocks of Elm Street and installing new playground equipment at Riverside Park.
Local advocates note that the fee schedule exempts projects classified as affordable housing under the city’s existing density bonus program. Households earning below 60 percent of area median income therefore remain eligible for units that avoid the levy, preserving one pathway to lower-cost housing near the transit station.
Next Steps and Implementation Timeline
City staff will publish the final fee table by July 31 and begin collecting payments on building permits issued after September 1. The public works department has scheduled a community meeting for August 12 at the municipal building to explain how the $2.5 million will be allocated across specific street segments and park sites. Quarterly progress reports on both collections and expenditures will be posted on the city website beginning in October.