Development Cost Charges Bylaw Information Session June 26, 2019
Background
What are Development Cost Charges (DCCs)? • A fair and equitable method of distributing growth-related costs to developers • Costs include expanding and upgrading community’s infrastructure — water, sanitary sewer, drainage, roads, and parks — needs due to growth • DCCs are based on projects determined by estimated growth over a 10 year time horizon • One time fee 3
Why update now? The current DCC bylaw has not changed since 1986. • Projects addressed in the 1986 Bylaw are now completed or obsolete • Development not currently paying its share for growth-related infrastructure • New list of infrastructure projects based on growth over the next 10 years • Construction and land costs have risen substantially 4
How are DCCs governed? • Provincial Government – Local Government Act (2015) • DCC Best Practices Guide by Ministry of Community Services • City’s DCC Bylaw 5
DCC Fund – what is eligible to be collected Infrastructure Yes No ✔ Roads, traffic signals, street lighting, bicycle/pedestrian facilities ✔ Drainage facilities such as storm sewers, culverts, erosion projection works ✔ Sanitary sewer mains, lift stations, master sewerage planning ✔ Water mains, pump stations, reservoirs, water master planning ✔ Parkland acquisition ✔ Parkland improvement ✔ New recreation or cultural centre such as libraries, fire halls, police stations ✔ Park buildings, parking lots, sports fields and courts ✔ Local road and utility servicing ✔ Operation and maintenance of infrastructure ✔ New or upgraded works needed for existing population 6
Who pays DCCs? ✔ ✖ Create one new residential lot ◄ ◄ Renovate a home (subdivision) Add a secondary suite ◄ Build a laneway home ◄ ◄ Demolish and rebuild a home Develop new office or retail building ◄ ◄ Demolish a retail building and rebuild ◄ Build School, hospital or addition to one one the same size Add to a commercial building ◄ ◄ Build a church or place of public worship (if >$50,000) ◄ Develop in the 215 A Levy Area 7
DCC applicable area 8
DCC bylaw process We are here Policy Growth Council Council Adoption decisions endorsement approves of rates bylaw DCC rates Inspector of Net DCC Consultation (preliminary) with Municipalities project costs stakeholders approval 9
New DCCs
How are DCCs calculated Benefit to Project Assist factor Net DCC existing Reserves costs (1%) project costs population DCC Net DCC Growth recoverable project costs cost 11
DCC distribution through infrastructure categories Category Total DCC City DCC Cost Reserves Cost Recoverable Cost Water $947,900 $1,942,273 $219,152 $- Sanitary Sewer $98,800 $- $57,698 $41,102 Drainage $3,125,000 $407,818 $1,141,808 $1,575,374 Roads $11,278,000 $2,939,939 $5,809,211 $2,528,850 Parkland Acquisition $22,317,350 $2,380,050 $223,174 $19,714,126 Parkland Improvement $5,731,500 $- $1,630,871 $4,100,630 Total $43,498,550 $7,670,080 $9,081,913 $27,960,082 12
Proposed New Development Cost Charges DCC UNIT COSTS Land Use Designation Measure Water Sewer Drainage Roads Parks Total Laneway Houses DU $ - $ 14.17 $ 568 $ 904 $ 8,804 $ 10,290 Single Family and Duplex DU $ - $ 54.44 $ 2,924 $ 3,478 $ 26,998 $ 33,453 Multi-Residential Townhouses m 2 $ 0.20 $ 5.79 $ 6.95 $ 130.86 $ 143.80 Multi-Residential up to 6 Storys m 2 $ - $ 0.15 $ 3.32 $ 9.05 $ 105.29 $ 117.81 Multi-Residential, Transit-Oriented Development, greater than 6 Storys m 2 $ - $ 0.17 $ 4.91 $ 7.30 $ 120.03 $ 132.41 Commercial - General/Institutional m 2 $ - $ 0.16 $ 6.74 $ 40.47 $ - $ 47.37 Commercial – Transit Oriented Development m 2 $ - $ 0.22 $ 7.65 $ 26.24 $ - $ 34.12 Industrial m 2 $ - $ 0.25 $ 29.93 $ 10.67 $ - $ 40.85 13
Rate comparison – single family 14
Rate comparison – typical townhouse 15
Rate comparison – typical apartment / condo 16
Port Moody’s parkland acquisition How much parkland to acquire for the increased population over 10 years? • Acquire 2.5 hectares parkland for every 1,000 new people to Port Moody • 2.5ha/1000 ratio consistent with City’s Parks and Recreation Master Plan and has been approved by Council • Approximately 4,050 estimated new residents over 10 years, resulting in 10.1 hectares of parkland needs 17
Exemptions and reductions Strict rules exist for exemptions and waivers. • DCCs are exempted for tear-downs and rebuilds. • DCCs have been reduced by Council for: • Not-for-profit rental housing, including supportive living housing • For-profit affordable rental housing 18
Waivers Waiver Criteria Qualification Criteria Waived Percentage • Owned or Operated by a non-profit organization Not – for – profit rental • Subsidized by the Province or a non-profit 50% housing organization Rental threshold determined by the CHMC gross median income for City For-profit-affordable 25% rental housing OR Rental threshold set by Council All waived costs must be paid for by the City. 19
Credits and rebates DCC credits and rebates are given if developer constructs a project outlined in our DCC program at their own cost. 20
Grace period All in-stream applications are allowed a one year grace period. This does not apply to: • applications that have been denied • where conditional approval has lapsed during the one year grace period • where final approval of subdivision has not been received prior to the anniversary date of the new bylaw 21
Next Steps
Next steps Bylaw goes to Council for third reading in July 2019 Bylaw and supporting documents forwarded to the Province for approval Bylaw goes to Council for fourth reading and adoption New bylaw anticipated to be in effect by November 4, 2019 23
Questions?
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