New Development Cost Charges
By 250 News
Monday, April 06, 2009 10:18 PM
Prince George, B.C.- The City of Prince George has given final approval to a change in Development Cost Charges.
The new bylaw has been in the works for a couple of years, and would see the city divided into four development categories, with a different set of costs for each area. It is that lapse of time that has Councilor Dave Wilbur concerned "I am reminded that justice delayed is justice denied, and since the initial consultation took place in the summer of 2006, I think we have a problem." The time lapse was blamed on the flood and ice jam situation and the delays from the
Deputy Inspector of Municipalities which had to approve the package.
The new development cost charges are designed to discourage urban sprawl, and use existing infrastructure to create higher densities.
For example, a single family residential lot in area “A”, which is pretty much all urban areas with the exception of; industrial sites, Cranbrook Hill, Beaverly, North Nechako west of Foothills and the Airport lands, would pay the following per parcel:
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Parkland, $ 222
-
Highway Facilities, $1.257
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Drainage Facilities $417
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Sewage Facilities, $846
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Water Facilities $1089
Total: $3831.00 per lot
But if the single residential lot was to be developed in area B, which is Cranbrook Hill, North Nechako West of Foothills, the Hart ( east of Highway 97 and North of Chief Lake road) the charges change:
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Parkland $ 529
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Highway Facilities, $3,036
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Drainage Facilities $ 720.
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Sewage facilities, $850.
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Water Facilities $2,602.
Total:$7,737.00 per lot
There would be significant savings if a developer were to build, for example, a 25 unit multi-family development downtown(area D) Under the current DCC's the developer would pay $47,675, but under the new DCC's that cost would drop to $8,725.
The bylaw clearly reads that Council does not believe the charges to be excessive in relation to the capital costs of prevailing standards of service, nor will the charges deter development in the City and will not discourage the construction of reasonably priced housing or reasonably priced serviced land.
Not everyone agrees with those statements.
Council received two letters of concern, one from the Canadian Home Builders Association of Northern B.C., the other from the Canadian Home Builders Association’s National President.
Both letters expressed concern over the introduction of increased charges at a time when the economy is in a slump “There are municipalities in Canada that are seriously looking at the economy and suggesting eliminating DCC’s and forgoing property taxes for a period of time as a way of trying to help stimulate their communities” reads the letter from Allen Cruezot, the President of the Northern Branch.
The President of the National Group, Gary Friend, calls on government to follow four steps of action:
1. Reduce government imposed costs on new homebuyers
2. Commit to smart regulation principles at all levels
3. Invest public funds wisely in areas such as infrastructure and development of skilled trades
4. Reform existing policies to support a strong industry and strong housing markets.
While Councilor Shari Green wanted to see the item put over until the next Council meeting, her council colleagues reminded her that this was not a public hearing and developers wouldn't have a chance to address the issue whether it happened this week or next.
Mayor Dan Rogers says Prince George has the lowest DCC's among our peer communitis, "Perhaps what we haven't done is do a good job of marketing the fact we have the lowest DCCs" The Mayor says with the rates Prince George charges, with a 10% assist factor, there should be developers lining up to build here.
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Posted by: RUEZ on April 6 2009 10:48 PM