Grey County Approves Development Charge Exemption for First Phase of 712-Unit Skyline Rental Project in Owen Sound
A request for a full development charge exemption was partially approved by Grey County, allowing only the first phase of a large rental project to proceed under current policy.
Grey County Council has approved a development charge exemption agreement (DCEA) for the first phase of a large-scale rental housing development proposed by Bayshore Street Developments Inc. (BSDI), part of the Skyline Group of Companies.
The decision was made during County Council’s November 13 meeting following a staff report recommending a cautious, phased approach.
BSDI has begun construction on phase one of the project, three six-storey apartment buildings totalling 267 purpose-built rental units, on East Bayshore Road in Owen Sound. The full project, if completed, would include 712 rental units across eight buildings.
Grey County’s current policy (Development Charges Deferral and Conditional Exemption Policy 11-1) allows staff to approve exemptions only if the development charges (DCs) do not exceed $2 million and if construction is completed within five years.
BSDI had requested an exemption covering the entire development, which would span a ten-year buildout period and defer DCs totaling approximately $2.6 million under frozen 2022 rates.
Skyline president Greg Jones addressed Council, highlighting the company’s role as a significant rental housing provider in Grey County and across Canada. He explained that a full DCEA would offer long-term planning and financing certainty, helping attract investment and advance construction beyond the first phase.
“This is about getting more rental housing built,” said Jones. “The policy in place from the County of Grey is what makes rental housing possible in the area.”
Jones confirmed the Owen Sound development is market-rate housing, not tied to affordability, though he indicated openness to including affordable units if supported through grants.
According to Grey County Director of Planning Scott Taylor, it is staff’s understanding that the City of Owen Sound has entered into a development charge exemption agreement (DCEA) for the entire 712-unit development.
Taylor reiterated that while staff welcome the investment, they are recommending a phased approach that aligns with current policy.
Taylor also corrected the initial financial estimate in the staff report, clarifying that due to a provincial DC rate freeze, the actual deferral amount for phase one is approximately $990,000 — not the $1.26 million stated initially.
Council ultimately supported staff’s recommendation to approve a DCEA for phase one only. Future phases would be subject to the County’s development charge policies and legislative framework in effect at the time they are proposed.
A broader review of Grey County’s development charges by-law and exemption policy is scheduled for 2026.