News Greenhouses Water and irrigation
High development charges coming to Chatham-Kent, OGVG says

A delegation from the Ontario Greenhouse Vegetable Growers (OGVG) organization has come out against Chatham-Kent Municipal Council passing, on March 26, their 2024 development charges for water and wastewater, which will result in a cost of approximately $179,000 per acre for any new greenhouse development in the municipality.

According to the OGVG, these development fees will gradually escalate to $366,000 per acre by 2029, “driving investment in greenhouse growth to other jurisdictions and having negative impacts” on the economic contributions the greenhouse sector offers in Chatham-Kent.

Greg Devries of Truly Green, who operates a multifaceted farming operation that includes greenhouse operations in Chatham-Kent, described the more than 3,000 direct and indirect spinoff jobs created by the 473 acres currently existing in Chatham-Kent. “Locally, companies like Honey Electric, Dordt, and Timbertech Construction have over 50 per cent of their business dedicated to the greenhouse industry,” he said. “The sudden increase in development charges will increase the cost of a planned and financed 30-acre build at the Cedar Line location by $2.55 million for just water and wastewater.”

George Dekker, representing Mucci Farms, described how greenhouses strive to minimize our impact on municipal infrastructure. “We dig wells, we build water ponds to house rainwater, sometimes we have developments that will take water out of the lake, this is all to minimize our impact on the public infrastructure of water,” he said. “Development charges should be site-specific and considered case-by-case based on the many water conservation measures employed by greenhouses.”

The municipality of Chatham-Kent amended their by-law to reflect the existing alternatives exempting farms that chose to access private water and wastewater services that will be subject to the approval of the Chatham-Kent Public Utilities Commission (PUC). “Notwithstanding the high development charges, Chatham-Kent sees the economic, employment, and food security benefits brought by greenhouse development,” said Richard Lee, executive director of OGVG speaking of Chatham-Kent Municipal Council. “They have signalled they want to continue engaging with the sector to support growth, development, and food security but in essence, they have now hung a ‘closed for business’ sign at their municipal offices for any future planned greenhouse growth.”

Chatham-Kent Municipal Council unanimously (18-0) supported the formation of a working group of stakeholders made up of municipal staff, utilities, and greenhouse farms. The working group will also invite local MPPs and MPs to participate in a whole of government approach to understand and overcome various challenges and advantages to greenhouse development in Chatham-Kent.

“Chatham-Kent wants greenhouse development to support growth, which unfortunately can’t happen under egregious development charges in place,” said OGVG Chair George Gilvesy. “Development may be frozen today but all stakeholders are looking for a thaw and growth to come to Chatham-Kent.”

The OGVG represents 170 farm families operating over 3,970 acres of greenhouse grown cucumbers, peppers, and tomatoes.