Development Cost Charges Bylaw

Information Session

June 26, 2019

Background

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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

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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

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How are DCCs governed?

• Provincial Government – Local Government Act (2015)

• DCC Best Practices Guide by Ministry of Community Services

• City’s DCC Bylaw

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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 ✔

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Who pays DCCs?

✔Create one new residential lot

(subdivision)

Build a laneway home

Develop new office or retail building

Build School, hospital or addition to one

Add to a commercial building

(if >$50,000)

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✖Renovate a home

Add a secondary suite

Demolish and rebuild a home

Demolish a retail building and rebuild

one the same size

Build a church or place of public worship

Develop in the 215 A Levy Area

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DCC applicable area

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DCC bylaw process

We are here

Policy

decisions

Net DCC

project

costs

Growth

DCC rates

(preliminary)

Council

endorsement

of rates

Consultation

with

stakeholders

Council

approves

bylaw

Inspector of

Municipalities

approval

Adoption

New DCCs

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How are DCCs calculated

Project costs

Benefit to existing

population

Assist factor (1%)

ReservesNet DCC

project costs

Net DCC project costs

GrowthDCC

recoverable cost

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DCC distribution through infrastructure categories

Category Total

Cost

DCC

Reserves

City

Cost

DCC

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

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Proposed New Development Cost Charges

Land Use Designation Measure DCC UNIT COSTS

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 m2 $ 0.20 $ 5.79 $ 6.95 $ 130.86 $ 143.80

Multi-Residential up to 6 Storys m2 $ - $ 0.15 $ 3.32 $ 9.05 $ 105.29 $ 117.81

Multi-Residential, Transit-Oriented

Development, greater than 6 Storys m2 $ - $ 0.17 $ 4.91 $ 7.30 $ 120.03 $ 132.41

Commercial - General/Institutional m2 $ - $ 0.16 $ 6.74 $ 40.47 $ - $ 47.37

Commercial –Transit Oriented

Development m2 $ - $ 0.22 $ 7.65 $ 26.24 $ - $ 34.12

Industrial m2 $ - $ 0.25 $ 29.93 $ 10.67 $ - $ 40.85

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Rate comparison – single family

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Rate comparison – typical townhouse

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Rate comparison – typical apartment / condo

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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

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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

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Waivers

Waiver Criteria Qualification Criteria Waived Percentage

Not–for–profit rental

housing

• Owned or Operated by a non-profit organization

• Subsidized by the Province or a non-profit

organization

50%

For-profit-affordable

rental housing

Rental threshold determined by the CHMC gross

median income for City

OR

Rental threshold set by Council

25%

All waived costs must be paid for by the City.

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Credits and rebates

DCC credits and rebates are given if developer constructs a project outlined in our DCC program at their own cost.

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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

Next Steps

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Next steps

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

Bylaw goes to Council for third reading in July 2019

Questions?