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Development Cost Charges

Development Cost Charges

The City of Port Moody is updating its Development Cost Charges (DCC) Bylaw to reflect the infrastructure requirements of new development. Port Moody’s existing DCC Bylaw was adopted in 1986 and updated in 1993. The majority of the projects contemplated in the 1993 DCC bylaw have now been constructed or are no longer part of our capital plans. A new bylaw has been drafted for Council's consideration.

Note: DCCs do not apply to the Inlet Centre area, which is the area expected to see the highest intensity of development. Instead of DCCs, special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre.

What is a Development Cost Charge?
A Development Cost Charge (DCC) is a funding mechanism to assist local governments with capital costs of local government services related to development. The Local Government Act permits DCC’s to be established for providing, constructing, alternating, or expanding facilities related to the following local government services only:

  • roads (other than off-street parking)
  • sewerage
  • water
  • drainage, and
  • parkland acquisition and improvement.

In addition to DCC’s, the City can also collect development revenues through Community Amenity Contributions (CACs), density bonuses, and service agreements.

How are Development Cost Charges calculated?
DCCs are generally determined by dividing the net capital infrastructure costs attributable to new development over a certain time period, by the corresponding number of projected development units (or area) that will be developed in the same time period.

Recommended Draft DCC Bylaw
City staff have prepared a draft DCC Bylaw for Council’s consideration which includes the following recommended DCC Rates to finance Port Moody's planned capital projects related to development.

Parkland Acquisition Options
Council is considering additional options for DCC Parkland Acquisition rates. The Parkland Acquisition rates in the recommended draft Bylaw would allow the City to achieve the Parks and Recreation Master Plan target of 2.4 hectares of park per 1,000 residents if limited park property can be acquired through successful negotiations with developers.

There are two additional Parkland Acquisition options under consideration:

Option 1: Council could choose a lower DCC Parkland Acquisition rate than what is proposed in the recommended Draft Bylaw in order to encourage development. With this option, the lower DCC rate for parkland could make it challenging to achieve the Parks and Recreation Master Plan target of 2.4 hectares / 1,000 population. The total DCC rates for an average development would be approximately 65% of the rates recommended in the draft DCC Bylaw.

Option 2: Council could choose a higher DCC Parkland Acquisition rate than what is proposed in the recommended draft Bylaw in order to allow the purchase of parkland by the City at projected market rates. With this option, it may be possible to achieve the Parks and Recreation Master Plan recommended target of 2.4 ha/1,000 population without relying on successful site-by-site negotiations with developers for parcels of park property, with the City purchasing the land using DCC funds. Using projected market rates, the total DCC rates for an average development would be approximately 160% of the rates recommended in the draft DCC Bylaw.

Parkland Acquisition Options

 
  Units  Draft Bylaw Recommended Rates   Option 1 - low  Option 2 - high 
Laneway Houses & Secondary Suites  Dwelling Units   $6, 592  $4,182  $10,760
Single Family & Duplex  Dwelling Units  $13,623 $8,644  $22,238 
Multi Residential up to 6 Storeys   Square Metre  $78.84  $50.02 $128.69 
Multi-Residential, Transit Oriented Development, greater than 6 storeys  Square Metre   $80.41 $51.02   $131.26
Commercial General   Square Metre  $53.92  $21.70  $109.50
Commercial Transit Oriented Development   Square Metre  $53.92  $21.79  $109.50
Institutional   Square Metre $19.26   $7.78  $39.11
Industrial   Square Metre $26.96   $10.90  $54.75
         

 

 

Last updated: 26/10/2016 3:04:58 PM