Development Cost Changes Dangerous to Development

By 250 News

More than one developer  is expressing concern over the impact  the  proposed changes in the Development Cost Charges would have on the City of Prince George.  "If I wanted to build a 10 thousand square foot warehouse in the Carter Light industrial area,  the new charges would mean I would have to charge $7.00 a foot  just to build the site, never mind  charging for the use of the space, and I already know I am not going to get that kind of money"  said one developer.

The comments were made at the information session on the  the Development Cost Charge review.

In addition to  changing rates based on four basic areas of the City, the proposed bylaw would also reduce the City’s "assist" contribution to infrastructure.  Currently,  when there is a new development, the City offers to pick up half the tab for water, sewar, transportation,  parks and drainage.  It is proposed that the "assist" factor be reduced from 50% to  just 1%.

One developer says that sends the wrong kind  of message to  industries looking for new locations.  "This City is at a very vulnerable time" he said "Dropping the City’s assitance to just 1% will be a real deterrent to development, in fact, if we can hang on to them at all, they may decide to set up shop outside the city limits, and  the City will lose the possible taxation."

The deadline for  submitting  concerns about the Development Cost Charge Bylaw, is being extended.  "The closing date was supposed to be May 25th" Chief Engineer Dave Dyer told an information session  yesterday "But that will be extended until some time in June, although I don’t have the exact date set yet."

Dyer says even with the changes,  Prince George would have the lowest development cost charges compared to some other cities.   Not all of the developers who attended wanted to buy into that "The comparison should be not  just on the dollars we are about  to charge" said one developer, "I am more interested in seeing what those charges mean when it comes to percentage of the lot cost." 

More than one expressed a concern that while the City, Initiatives Prince George, Downtown Prince George,  City Center Ventures are all trying to attract industry here, the new  development charges will be an obstacle that cannot be overcome. 

There will be a second information session this evening from 7-9 p.m.

The information  will be used to  develop the final draft of a bylaw which will go to the City's Finance and Audit Committee some time in July, and possibly to Council in mid to late August.

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