How development funds services and amenities
As the District grows, so does our need for expanded services (such as roads, water, sewage, and drainage) and site-specific community amenities (such as community and recreation facilities, parks, playgrounds, cultural facilities, and so on).
We have two methods for helping finance the cost of providing or upgrading these services and infrastructure:
- Development Cost Charges (DCC)
- Community Amenity Contributions (CAC)
Development Cost Charges (DCCs)
Development Cost Charges (DCC)
Development Cost Charges (DCCs) are levied on new development to help finance the cost of upgrading or providing infrastructure services (roads, water, sewer and drainage), and the cost of acquiring or developing parkland to support the new development.
Who pays the DCC?
DCCs must be paid by:
- applicants for subdivisions that create additional single family residential lots
- applicants of building permits proposing multi-family residential, commercial, institutional, or industrial development, where the value of the work covered by the building permit exceeds $50,000
Current DCC rates (effective April 30, 2018)
At a February 5, 2018 Council meeting, staff recommended increases to the DCC rates, following a major review of the program.
As a result, Council endorsed Bylaw 8281 on April 30, 2018, which substantially revised the rates for the first time since 2013.
While the new rates came into effect on April 30, 2018, there was a twelve month grace period for applications that were already in process, as per the Local Government Act.
That grace period will end on May 1, 2019, at which point, these new DCC rates will apply to all projects.
|Land use||Roads||Sanitary sewers||Water||Drainage||Parks||TOTAL||Unit|
|Single family residential||$11,672.31||$1,544.35||$3,118.31||$5,206.53||$6,494.30||$28,035.81||per dwelling unit|
|Townhouse residential||$53.03||$10.69||$21.58||$13.69||$44.94||$143.92||per square metre of gross floor area|
|Apartment residential||$63.46||$11.70||$23.62||$6.79||$49.19||$154.75||per square metre of gross floor area|
|Commercial||$84.89||$4.63||$9.35||$20.03||$2.92||$121.83||per square metre of gross floor area|
|Industrial||$63.67||$4.63||$9.35||$20.03||$2.92||$100.60||per square metre of gross floor area|
|Institutional||$42.44||$2.57||$5.20||$21.46||$1.08||$72.75||per square metre of gross floor area|
Learn more about the 2018 DCC program review and rate increase
- Staff recommendation to increase rates, plus DCC review report (starts on page 103)
- Council adoption of Bylaw 8281 with new DCC rates (starts on page 33)
- Full text of the Development Cost Charges bylaw
Community Amenity Contributions (CACs)
Community Amenity Contributions (CAC)
Community amenity contributions (CACs) — in the form of physical amenities or cash contributions — may be provided by developers to offset the impacts of a project on the community.
In general, CACs will be used towards the development of site specific community amenities (where these have been identified through centres implementation planning), or provided as a cash-in-lieu contribution to deliver offsite community amenities. General examples of community amenities include, but are not limited to:
- community and recreation facilities and services
- seniors centres and child care facilities
- parks, playgrounds, open space and plazas
- greenways, trails and pedestrian crossings
- cultural facilities, community art and heritage
- affordable and non-market housing
- other amenities as identified by Council and the community
How CACs are calculated
The value of CACs are determined either by:
- a negotiated approach
- a cost per square foot of increased residential gross floor area (fixed rate)
Calculating CACs using a negotiated approach
The CAC value is derived from the change in land value under higher density zoning. CACs may vary by project depending on a variety of factors including: location, land value, lot size, density, assembly constraints, servicing, cost of rezoning, onsite amenity requirements, parking needs and other community and planning objectives.
Steps to calculate the CAC
- Implementation Plans for designated Town and Village Centres identify the key community amenities for each Centre.
- At the preliminary planning application stage:
- District staff will identify whether the proposed rezoning will need to provide an onsite physical amenity or a cash-in-lieu CAC contribution
- The development applicant will be asked to submit to the District a financial proforma that estimates the CAC value for the project. As a starting point for discussion, the CAC is to be calculated based on 75% of the estimated increase in market value of the land arising from rezoning, less all development costs and profit. A preliminary estimate of off-site servicing costs, provided by the applicant’s consultant, should also be included in the proforma.
- The District, and/or a qualified land economist retained by the District, will review the preliminary planning application proforma and assess the existing land value and CAC estimate. Fees for this financial evaluation are to be paid by the development applicant on a cost recovery basis, and a deposit for this work may be required.
- The CAC will be confirmed at the detailed planning application stage, taking into consideration the more detailed project plans, and any revisions to scope and off-site servicing etc.
- The CAC amount and details of specific amenities will typically be written into the Zoning Amendment Bylaw or otherwise established prior to first reading.
Calculating CACs for fixed rate sites
Specific areas in the OCP Town and Village Centres, and areas outside the Centers, will be calculated at a fixed rate. Check the CAC policy to learn about fixed rate sites.
Rates for OCP Centres
The fixed rate for Town and Village Centre sites within the designated fixed rate boundaries is $21.30 per square foot of increased residential gross floor area.
Rates for development areas outside of OCP Town and Village centres
|Project density||Rate per sq. ft. of increased residential gross floor area|
|Less than or equal to 0.8 FSR||$6.40|
|0.8 to 1.0 FSR||$13.85|
|Greater than 1.0 FSR||$21.30|
Use our sample proformas as preliminary templates for calculating applicable CACs for a multi-family residential project or a mixed retail and multi-family project.
Certain parameters — such as sales price, density, number of units — can be adjusted to suite the site specific conditions of a particular development project.
Figures do not reflect current market values. They are hypothetical and for illustrative purposes only. One proforma is for determining the residual land value, while the other assumes a fixed land acquisition cost.