We are updating our Development Cost Charges (DCC) Bylaw to reflect the infrastructure requirements of new development.

Next steps: The draft DCC Bylaw has been submitted for Provincial approval. The City's proposed Development Cost Charges Reduction Bylaw passed first, second and third reading at the November 12, 2019 Regular Meeting of Council. 

 

Thank you to everyone who attended one of our information sessions on June 26, 2019 and submitted a feedback form. View the handout and presentation, or view the frequently asked questions below.

What are Development Cost Charges?

Development Cost Charges (DCCs) are a method of fairly and equitably distributing growth-related infrastructure costs to developers. These growth-related infrastructure costs can include: upgrading our community’s transportation systems; utilities such as water, sanitary, and storm networks; and parkland acquisition and improvement to meet the needs of population growth. DCCs offset only a portion of the growth-related infrastructure costs; the City contributes its share towards each project.

 
Has the DCC Bylaw been reviewed since it was adopted in 1986? 

Multiple Port Moody councils have reviewed the DCC Bylaw on several occasions since its adoption in 1986. At those times, they determined it was not necessary to update the DCC Bylaw.

 

Why was the DCC Bylaw not updated before now?

Previous councils determined that an update was not necessary because the projected growth as identified in the OCP did not necessitate upgraded infrastructure.

Development in Port Moody from mid-1990 to the present has been primarily occurring in the Heritage Woods area and the Inlet Centre neighbourhood. Growth-related infrastructure costs for these two neighbourhoods were not regulated by the City’s DCC Bylaw; rather, development projects in these two areas, known as the Section 286 Agreement Area (Heritage Woods) and the 215A Levy Area (Inlet Centre), were subject to Development Cost Levies (DCLs). You can view these areas on our DCC Area Boundary Map.

DCLs collected in the 286 and 215A agreement areas were sufficient to cover the cost of identified growth-related infrastructure projects- in those neighbourhoods.

While DCCs were applicable outside of the 286 and 215A agreement areas, there was very little development occurring in the remainder of the city at that time and therefore previous councils decided it was not necessary to update the DCC Bylaw.

Why is the DCC Bylaw being updated now? 

Port Moody adopted our most recent Official Community Plan (OCP) in October 2014 which considered further potential development outside of the 286 and 215A areas. This potential development would require infrastructure improvements to the extent that changes to the DCC Bylaw would be necessary.

Council adopted further amendments to the OCP in 2017 and 2018 that provided additional insight regarding potential future DCC-applicable projects related to roads, drainage, sewers, water, and parkland. With these OCP amendments, the timing for the current review of our DCC Bylaw is appropriate and consistent with provincial guidelines.

Did the City lose revenue by not updating the DCC Bylaw sooner? 

The City has not lost revenue because the DCCs collected were sufficient for the projects identified in the City’s existing bylaw, and the DCLs collected were sufficient for the projects identified in the 286and 215A area agreements. All identified projects have either been completed or cancelled.

We currently have 7.7 million dollars in our DCC reserves that the City collected from previous developments. There are no financial implications to Port Moody tax payers due to the timing of this bylaw review. 

 
What is the process to update the DCC Bylaw?  

Updates to DCC bylaws are conducted based on the Government of B.C.’s Development Cost Charge Best Practices Guide and require provincial approval. In addition, any municipal bylaw amendment must follow a statutory process. Complying with both of these requirements involves a lengthy and comprehensive process.

Council has given the draft updates to the DCC Bylaw first and second reading; third reading is scheduled to be considered in July 2019. At the time of third reading, Council will consider feedback received from developers, planners, builders, and the general public. The City will then forward the bylaw and supporting documents to the provincial government for approval. It’s anticipated that final adoption of the updated bylaw will take place in late 2019.

Draft DCC Bylaw 

City staff have prepared a draft DCC Bylaw which includes the recommended DCC rates (see below) to finance Port Moody's planned capital projects related to development. Our existing DCC Bylaw was adopted in 1986. Council has endorsed waivers for not-for-profit rentals and for-profit affordable rentals, as well as the following rates:

 Land Use  Per  Water Sanitary Sewer  Drainage  Roads  Parks  Total
 Laneway Houses Dwelling unit $0 $14.17 $568 $904 $8,804  $10,290 
 Single-Family and Duplex Lot  $0  $54.44  $2,924  $3,478  $26,998  $33,453 
 Multi-Residential Townhouses m2  $0  $0.20  $5.79  $6.95  $130.86  $143.80 
 Multi-Residential up to six storeys m2  $0  $0.15  $3.32  $9.05  $105.29  $117.81 
 Multi-Residential TOD > six storeys m2  $0  $0.17  $4.91  $7.30  $120.03  $132.41 
 Commercial General/Institutional m2   $0  $0.16  $6.74  $40.47  $47.37 
Commercial TOD  m2   $0  $0.22  $7.65  $26.24  $34.12 
 Industrial m2   $0  $0.25  $29.93  $10.67  $40.85 

Development Cost Charges

Development Cost Charges (DCC) help with the cost of urban development and support the demand for infrastructure growth, including: 

  • sewer
  • water
  • drainage
  • roads
  • parkland acquisition and improvement

DCCs are generally determined by dividing the 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. Our draft DCC rates were calculated based on a 10 year horizon (2018-2028). 

DCCs do not apply to the Inlet Centre area. Instead of DCCs, special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre.