The Town of Whitby is moving forward with a plan to introduce Whitby development charge incentives in an effort to attract a major hotel and convention centre to the community.
At a recent Committee of the Whole meeting, councillors approved a motion supporting the creation of a Hotel and Conference/Convention Centre Attraction Program. The initiative is designed to encourage large-scale hospitality investment by offering financial flexibility to developers, particularly through development charge deferrals.
Currently, Whitby has several hotels, particularly along Consumers Drive, but lacks a modern, full-service hotel with integrated convention and conference facilities. Town staff identified a growing need for upgraded tourism and business travel infrastructure, citing strong economic growth, increased sport tourism, and rising demand for event spaces.
Under the proposed Whitby development charge incentives program, up to two hotel projects could qualify for a deferral of the town’s portion of development charges. Instead of paying these charges at the time of building permit issuance, developers would be allowed to defer payment until occupancy permits are issued. The deferral model is intended to ease upfront financial pressure while ensuring the municipality still collects the charges once construction is complete.
To qualify, developers would be required to meet specific construction milestones, ensuring projects proceed in a timely manner. The town emphasized that this is not a discount or exemption but a deferral mechanism that avoids direct taxpayer subsidies.
Town staff also noted there has already been demonstrated market interest from hotel developers. However, competition among municipalities for large hotel chains and convention centres remains strong, and additional incentive tools are seen as necessary to strengthen Whitby’s investment readiness.
As part of the motion, Whitby is also calling on the Region of Durham to consider offering similar development charge incentives. Aligning municipal and regional incentives could improve the overall attractiveness of Whitby for major hospitality projects.
Supporters argue that attracting a large hotel and convention centre could significantly benefit the local economy by increasing tourism, generating employment opportunities, supporting local restaurants and retail businesses, and enhancing Whitby’s profile as a destination for conferences and sporting events.
The motion will now move to full council on March 9 for final approval. If passed, Whitby development charge incentives could play a key role in shaping the town’s future economic and tourism landscape.
