In a statement after council’s June 24 decision, Liebersbach said the 60 per cent increase in development charges on industrial and commercial developments puts Hamilton at a “competitive disadvantage” and is “clearly prejudicial against employment growth.”

While politicians last month froze residential development charges until July, 2010, because of the economic downturn, they boosted the industrial and commercial rates last week from $4.22 to $6.65 a square foot. Liebersbach said councillors had contemplated freezing industrial and commercial rates, but then reversed themselves.

The increase “is counter-intuitive to everything governments at all levels are engaged in now to fight the recession,” she said.

For developments up to 5,000 square feet, the new rate will be $9.69 per square foot, or 50 per cent of the rate in effect, for developments up to 10,000 square feet, the increase is 75 per cent of the current rate, or $14.53, and for developments greater than 10,000 square feet, the increase is 100 per cent of the current rate or $19.37 per square foot.

“We are not treating everyone the same way,” said Ward 5 councillor Chad Collins. “The residential community is paying 100 per cent of the fees (for residential development). We are not charging the full cost recovery on industrial or commercial developments.”

Since 2005, taxpayers have paid about $27.5 million in development charges.

Collins said Hamilton is still offering industrial and commercial developers a financial break, which is about 40 per cent.

“I have no problem pointing this out,” said Collins. “It sends the message we are providing incentives.”

But Ancaster councillor Lloyd Ferguson said raising industrial and commercial development rates sends an inconsistent message to the business community.

“We need to encourage industrial investments to come here,” he said. “We don’t treat everybody the same.”

Corporate Services General Manager Robert Rossini said Hamilton still remains in the bottom tier among municipalities in industrial and commercial rates.

“We are still quite competitive,” he said.