DCC Bylaw to Proceed But Assist Factor Boosted

Monday, December 04, 2006 09:25 PM

The controversial Development Cost Charges bylaw was back before Prince George City Council. The assist factor was the stickler.

This time Chief Engineer of Development Services, Dave Dyer, says there were meetings with the Chamber of Commerce and the Construction Association with regard to the changes in the "assist factor", currently the City splits the new infrastructure costs 50-50. The bylaw asked for the City’s share to be reduced to 1%.

The Chamber and Construction Association had raised concerns that reducing the amount the City pays for infrastructure development on new projects from 50% to 1% would hamper efforts to attract developers. That was a concern expressed by more than one Councillor.

Councillor Don Zurowski is one of the people who is concerned about that assist factor. He says it is a major change "and to go from 50% to 1% is too aggressive". He says a change to 10% would still gain dollars but it would be easier for developers to swallow.

Dyer says the discussions resulted in a removal of one section of the bylaw related to the cost of drainage facility fees, but Dyer is still pushing for the 1% assist factor as was approved by the Finance and Audit committee.

Dyer presented a couple of examples:

10 lot residential development current DCC $34,120

New DCC with 1% Assist = $42, 780 or 25% more than current rate
New DCC with 10% Assist = $$38,220 or 12% more than current rate

As for an industrial development: Single hectare current DCC $42,162

Single hectare new DCC with 1% assist factor = $64,598 dollars per hectare
Single hectare new DCC with 10% assist factor = $57,835 dollars per hectare

Dyer says the industrial DCC’s can be reduced with special incentives on, for example, drainage or transportation.

Dyer says it would be a good idea to revisit the by-law about every 5 years.

Mayor Colin Kinsley says when big developers come in to town the assist factor is a minor point, but, the 10% does send a good message that Prince George is open for business. He says he’s hoping developers will get the message that "With a 10% assist factor those guys have their heads on right, let’s go to Prince George."

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Posted on Monday, December 04, 2006 09:25 PM in News by 250 News

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Comments

Posted by: YamaDooPolCat on December 5 2006 7:39 AM

The figures seem to be wrong. To subdivide and make 7 house lots the city wants over $70,000 up front, or forget it. Plus the usual $1,000 permits for this and that.

For the guys that have to build roads, pave, storm drain, sewer and water, buried power, curb and gutter - they are the ones that are hesitating. Big bucks and risk involved, except for the city. If the developer goes bust the city grabs it all for back taxes.

If there are houses built on the new lots, and if they sell, the city taxes on the home owner run about $3,500 per year.

The city wins no matter what, so no deals in PG.

What's the price of a new lot in PG?

Posted by: owl on December 5 2006 8:54 AM

Asking prices for lots in the 75,000 + range in the new subdivision at the end of Malaspina. The nicest development I have seen in years since they have trees on the lots, some of which will have to be removed prior to construction. I understand that there are also some restrictive covenants on the properties.

Risk is part fo life. Risk is part of business. DCCs cover cost to develop areas of the city. Taxes cover costs to maintain parts of cities.

You may have heard from Bev Christiansen that builders are not building the types of housing the older generation requires. There was a response from Council and the mayor that there will be a new development for the elderly at Ron Brent. Bev responded very nicely to them that while such developemt is required, it does not meet the needs of those individuals who are able to take care of themselves and live in housing that should have less space and fewer if any stairs than the new homes now being built.

If people are willing to pay $300,000+ for new houses which are now typically in the 2,000 sf, then so be it. Do not blame the city for that. The last generation seemed to be able to raise larger average families in houses in the 1,200 sf range.

Seems to fall in place with buying $45,000 cars .... we appear to have more money, or be borrowing more money.

Posted by: trusted on December 5 2006 10:38 AM

Gee, I must be missing those $45,000.00 cars. Seems the new ones I see do not appear to exceed the $30,000.00 mark, and pray tell, give us the average price of homes sold in Prince George in this current year? How many sold for $300,000.00 plus? Oh yes, and all these 2000 sq ft homes must be selling without benefit of hitting Real Estate advertisements.
Things really are "picking up." Bet the city is happy with all these high priced sales! Look out for the new assessment notices as they are being prepared now-so possibly the city will fill their coffers considerably by higher property taxes.
And good times will be enjoyed by all?
Oops, slipped my mind-every purchase possibly comes with monthly payments. Have fun.
Oh, by the way-get out that plastic-Christmas shopping on right about now-and pay until July-just in time for taxes!
Just joshing!

Posted by: Chadermando on December 6 2006 12:55 AM

Trusted you can thank the interest only mortgages and the 50 year mortgages for the 'good times'.

Posted by: Chadermando on December 6 2006 12:55 AM

I'm glad Owl brought up Bev Christiansen's concerns, but surprised he didn't offer a solution.

IMO while we are on the subject of development costs, we should be thinking about what kind of development we need in this city and make some adjustments if any are to be subsidized. I would like to see the city give a break on the development cost for projects that meet the criteria Bev is concerned about as well as for small homes for the working families, low income, elderly, or single individuals. It could be a way of the city helping to assist the full spectrum of housing needs in the city by encouraging those types of traditional developers with development cost assistance.

I would like to see more developments like the ones in the 70's where they have average sized family houses with unfinished basements for affordable cost. Build some of these as ranchers for the disabled and design these homes into the concept of a neighborhood. One guy I talked to recently mentioned why not have basements with 9 foot ceilings, and a steel structural support beam for wide open unfinished basements? I liked that idea for minimal cost in an affordable and livible, housing construction option.