2018 Development Cost Charges (DCCs) Update
Agenda • DCC Overview • DCC Update • Proposed DCC Rates • Next Steps 2018 DCC Update
DCCs - OVERVIEW 2018 DCC Update
Why do we have DCCs? DCCs pay for the costs of expanding Most municipalities use DCCs because • • and upgrading the community’s they are the best way to fairly transportation, utility and park distribute growth-related costs across infrastructure to meet the needs of developers. growth. 2018 DCC Update
What do DCCs fund? Yes No Arterial roads & traffic upgrades New recreation or cultural centres, • • Pedestrian & bicycle facilities libraries, fire halls, police stations • Trunk sewer mains & pump stations Park buildings, parking lots, sports • • Trunk water mains & pump stations field lighting, artificial turf sports • Drainage system improvements fields and sport courts • Purchase of parkland Local road and utility servicing • • Parkland development Operation and maintenance of City’s • • infrastructure New or upgraded works needed for • the existing population 2018 DCC Update
Who pays DCCs? Applicants for: • – subdivision approval to create single family development sites – building permits to construct multi-family, commercial, industrial and institutional development 2018 DCC Update
How are DCCs Governed? Provincial Legislation Section 14, Division 19 of the Local Government Act Also… • Provincial DCC Best Practices Guide • Municipal Bylaw 2018 DCC Update
Coquitlam DCC Program 30-year program with growth projections to 2046 (based on Regional Growth • Strategy) City-wide DCCs • Two Single Family Dwelling Rates (Lot >375 m 2 and Lot <375m 2 ) • Charges on a per m2 basis to support housing affordability initiatives • Separate Duplex, Triplex and Quadruplex Rate • Parkland DCCs levied for residential units only • Municipal Assist Factor 1% •
2018 DEVELOPMENT COST CHARGES UPDATE 2018 DCC Update
Why Update the DCC Program? Last DCC Program update was in 2015 New information on capital projects • • (bylaw passed in January 2016) New information on development • Land and construction costs have risen trends • Capital projects have been completed • 2018 DCC Update
Growth Forecast (to 2046) Development Growth Residential 94,204 people Non-Residential 412,700 sq.m. total floor area 2018 DCC Update
Benefit Allocation & MAF Service Benefit to Municipal Assist Development Factor Transportation 42 -100% 1% Water 42 -100% 1% Drainage 42 -100% 1% Sewer 42-100% 1% Parkland Acquisition 100% 1% Parkland Development 42 -100% 1% 2018 DCC Update
DCC Recoverable Costs Total DCC Program $1,328 M Cost Sharing/Grants ($204 M) Allocation to Existing Residents ($154 M) $191 M Non-Eligible Park Amenities ($28 M) Funded by City Municipal Assist Factor 1% ($9 M) DCC Recoverable Costs $933 M 2018 DCC Update
DCC Recoverable Costs Infrastructure DCC Recoverable DCC Recoverable % Change Program Costs (2015) Costs (2018) Transportation $182 M $203 M 12% Water $46 M $44 M -6% Drainage $73 M $63 M -14% Sewer $18 M $19 M 8% Park Acquisition $243 M $472 M 94% Park Improvement $89 M $132 M 48% Total $651 M $933 M 43% 2018 DCC Update
Transportation Program Supported by Strategic Transportation Plan • $203 million in DCC Recoverable Costs • $204 million Grant Funding or Cost Sharing 40% 40% • Major Project Changes/Updated Costs: • 20% Lougheed/Brunette/Blue Mountain Capacity Improvements – Lougheed Corridor Improvements – New Street – Freemont (Lower Victoria to Lincoln) – DCC Recoverable Grade Separation Falcon Drive – Grade Separation Westwood Street Municipal Share – Grant Funding 2018 DCC Update
Water Program Supported by OCP servicing assessments and 13% • technical infrastructure plans $44 million in DCC recoverable costs • 87% Some major projects have been completed so • program costs have been decreased (e.g. David Ave Pump Station) DCC Recoverable Major Projects included: • Harper Reservoir (Cell 2) Municipal Share/ Potential – Crouch Reservoir Grants – Plateau Pump Station – Foster Reservoir Expansion – Foster Pump Station Expansion – Foster – Ebert Trunk Main (New) – 2018 DCC Update
Drainage Program Supported by OCP servicing assessments and 20% • technical infrastructure plans $63 million in DCC recoverable costs • 80% Some major projects have been completed so • program costs have been decreased since 2015 (e.g. Partington Creek Diversion Pipe – North Branch) DCC Recoverable New Major Projects: • Municipal Austin Creek Diversion East – Share/Potential Grants NW Burke Vision Stormwater Management Facilities – 2018 DCC Update
Sanitary Sewer Program Supported by OCP servicing assessments and • technical infrastructure plans 20% $19 million in DCC recoverable costs • Major projects completed: • 80% Coast Meridian Road Interceptor – Shaughnessy/Lincoln Interceptor – DCC Recoverable Major projects added/updated: • Blue Mountain Sewer Upgrades Municipal Share/Potential – Stoney Creek Trunk Sewer Grants – Hockaday Trunk Sewer (reflects new scope and construction – costs) 2018 DCC Update
Park Acquisition Program 1% Supported by OCP and Parks, Recreation & Culture Master Plan • $472 million in DCC recoverable costs • Includes 107 acres of new parkland (20.5 acres less than 2015 program) • Removed $67 M of parkland dedicated expected through 5% subdivision 99% • Increase is due to cost of land increases. Total land value increase is • average of 130% (examples below) DCC Recoverable Municipal Share 2015 2018 Example Parks: Increase Cost/acre Cost/acre Burquitlam Neighbourhood Parks $5.5 M $11.6 M 111% Partington Creek Neighbourhood Parks $1.8 M $6 M 233% City Centre Community Parks $6.5 M $17.4 M 168% 2018 DCC Program meeting with UDI
Park Acquisition Program 9%6% 107 Acres for $472 Million 5% 48% 32% Park Type Average Cost/Acre Neighbourhood Parks $5.9 M Neighbourhood Parks (39 acres) Community Parks $9.3 M Community Parks (16 acres) City-Wide Parks (27 acres) City Wide Parks $0.8 M Linear Parks & Greenways (37 acres) Other (5 acres) Linear Parks & Greenways $1.2 M 2018 DCC Update
Park Improvement Program Supported by OCP and Parks, Recreation & Culture • Master Plan 29% $132 million in DCC recoverable costs • Increase is primarily due to construction costs (average • 71% unit cost increase of 45%) Addition of Town Centre Park improvements • – Medium term: $16M ($5M DCC Recoverable) DCC Recoverable – Long term: $20M ($6.1M DCC Recoverable) Municipal Share Total increase of 4 acres of new parkland development • 2018 DCC Update
DCC Program Changes Summary • Land costs (approx. 100% increase) • Construction costs (approx. 25% increase) • Growth projections – shift towards multi-family • Deletion of completed projects • Addition of new projects 2018 DCC Update
PROPOSED DCC RATES 2018 DCC Update
How do we calculate DCC Rates 2018 DCC Update
Current and Proposed Rates Current 2018 Rates Proposed Rates % Change Single Family Lot (> 375 sq.m.) $26,880/lot $43,981/lot 64% Single Family Lot (< 375 sq.m.) $23,005/lot $37,493/lot 63% Duplex/Triplex/Quadruplex $123/m 2 $178/m 2 46% Townhouse $123/m 2 $181/m 2 46% Apartment $123/m 2 $183/m 2 48% Commercial $62/m 2 $77/m 2 24% Industrial $37/m 2 $44/m 2 18% Institutional $62/m 2 $77/m 2 25% 2018 DCC Update
DCCs as % of Home Price Year MLS Home Price Index DCC Rates DCCs as % of (Single Family) Home Price Apr 2007 $595,700 $23,588 3.95% Apr 2012 $703,300 $22,179 3.13% Apr 2015 $826,400 $25,812 3.12% Apr 2018 $1,304,900 $43,981 3.37% (proposed) DCCs have stayed relatively constant in comparison to the benchmark house prices 2018 DCC Update
Single Family Comparison Single Family DCC Comparison (per lot) Coquitlam Large Lot (Proposed) (2018) $43,981.00 Surrey (2018) $41,220.00 Richmond (2017) $39,494.10 Coquitlam Small Lot (Proposed) (2018) $37,493.00 Roads DCC North Vancouver (District) (2018) $28,035.81 Drainage DCC Coquitlam Large Lot (Existing) (2018) $26,880.00 Sewer DCC Langley (Township) (2012) $26,629.14 Coquitlam Small Lot (Existing) (2018) Water DCC $23,005.00 Maple Ridge (2018) $22,471.00 Parkland DCC Abbotsford (2010) $22,362.00 Combined DCC Port Coquitlam - Area 2 (2010) $16,299.00 Port Moody (Proposed) (2018) $13,620.00 Port Coquitlam - Area 1 (2010) $6,644.00 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Note: Port Moody (2018) - DCCs do not apply to the Inlet Centre area where special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre. 2018 DCC Update
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