Statement from Whitby Mayor Elizabeth Roy on New Incentives to Attract a Hotel and Conference Centre and Support Rental Housing

At a special meeting on Aug. 26, Whitby Council approved two targeted strategies aimed at unlocking development to address our community’s needs: a hotel and conference centre and more purpose-built rental housing.

Council approved a 50 per cent development charge discount for applicants of the Town’s Hotel and Conference Centre Attraction Program. To encourage purpose-built rental housing starts, Council also approved a program that will discount the Town’s residential development charges by up to 50 per cent and allow them to be paid over 10 years following occupancy.

Bringing a much-needed hotel and conference centre to Whitby and expanding both the supply and range of housing options in our community are both priorities in Whitby’s 2023-2026 Community Strategic Plan.

A hotel and conference centre is a long-sought-after community amenity that multiple Councils have worked to deliver because of the broader public benefits it would provide.

The measures approved by Council are particularly important in today’s challenging construction climate. 

High construction and financing costs, labour pressures, and economic uncertainty are making it increasingly difficult for major developments to proceed. Even projects supported by strong market demand can be scaled back or abandoned if the financial conditions don’t work.

The hotel and conference centre discount will be available on the condition that participating applicants secure building permits within 18 months. 

Reports from Town staff and feedback from Whitby’s sports, business, and tourism sectors consistently show that our community lacks the hotel and conference capacity needed to meet current and future demand.

This gap limits our ability to fully capitalize on the significant sport-tourism opportunities created by the new Fieldgate Sports Complex, as well as the tourism demand generated by attractions like Thermea Spa Village.

The competitive, time-limited incentive approved by Council is available through a defined municipal program rather than being directed to a single proponent.

The Town is seeking significant public benefits in return, including tourism growth, economic activity, taxes, employment opportunities, and community amenities.

A 50 per cent development charge discount is projected to represent approximately $1 million to $2 million per hotel development.

The Town is projected to collect between $540,000 and $870,000 annually from the three projects currently enrolled in the program, through property taxes and the Municipal Accommodation Tax.

The three projects are also estimated to generate $8.4 million to $14 million in new off-site visitor spending each year, supporting Whitby restaurants, retailers, attractions, and other local businesses.

Their development would also create employment opportunities during construction and, once operational, support ongoing jobs in hotel and conference centre operations, hospitality, food and beverage services, event management, maintenance, and other related services.

Municipalities regularly use targeted incentives when a development can deliver broader and lasting benefits. Niagara Region, for example, operates a Hotel/Motel Grant Program that reduces regional development costs for qualifying projects, while York Region has a separate, more favourable development charge category for hotels.

In a difficult construction market, standing still risks losing important projects -- and their benefits -- to other communities. These are carefully considered, targeted measures designed to turn plans into shovels in the ground.

For media inquiries, please contact:

Office of the Mayor

Jillian Follert
Public Affairs Coordinator, Office of the Mayor
Phone: 289.314.9101
Email: follertj@whitby.ca