Development Cost Changes Put Over to Next Meeting

By 250 News

The economy is booming,  construction starts are up,  and the City has an opportunity to make some extra money and develop infrastructure,all through Development Cost Charges. The big issue is how much the City should "assist" in the development of the infrastructure.

The City already charges certain amounts for water, sewar, roads, parkland when a development is proposed.  The City used to offer what is called a 50% "assist" factor.  The scenario presented tonight  would reduce that "assist factor " to just 1%.

City Council has deferred the report on the DCC's to the next meeting.  Councilor Bassermann says he would like to have a full house to debate the issue(Councilor Brian Skakun and Mayor Kinsley not  present) but advised "Those who have some more input had better hurry up and make it, I don't want to wait for a long time."

The map shows  how the City has been divided into four areas.

Public consultation  already  convinced the Staff to add more "Area A" lands to the airport region as that  will likely see more industrial development  because of the Airport’s cargo plane plans.

Here are the two  plans as presented by City Staff:

Scenario #1 raised some eyebrows among developers who said  the growth prediction wasn’t high enough especially since there is an inland port in the wings, and a demand for more retail.  

So, City Staff boosted the growth factors and came up with  Scenario 2, again, based on a 1% assist factor

It is Scenario 2 that is the one that  has already been  given the green light by the City’s Finance and Audit Committee.  It is also the one City Staff want to use as the basis for the new by-law.

Councilor Sherry Sethen says back in May,  there were several questions posed by the Chamber of Commerce.  Those answers have just been made available in the past week or so. City Staff say they are still willing to discuss that information (comparisons with communities in Alberta).   

Councilor Zurowski doesn't support the 1% assist factor.  "I am concerned about the equalibrium of our market right now.  I would be much more comfortable with a 10% assist factor."  He  fears dropping the rate from 50% to 1% could have developers heading for the exit door  "Let's not be too aggressive with our emerging economy" pleaded Zurowski.

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