In a bid to try and encourage more new development, the City of Kamloops has moved to drop some of its development cost charges, for at least the next three years.
The charges, paid for by developers, are used to recover the capital costs of off-site infrastructure projects like roads, sewers, and parks that are required to support new development.
The City’s Committee of the Whole voted to increase the “municipal assist factor” related to water infrastructure fees from 1 per cent to 10 per cent. Essentially, it means city taxpayers will pay a little more to make up the difference instead of builders.
While the fees are reviewed every three years, the current assist factors – 10 per cent for transportation, and 1 per cent each for sewer, water, and park fees – hadn’t been updated since 2004.
With the changes voted on at Tuesday’s committee meeting, the City says the DCCs will be reduced by $704, as noted in Option iii below.
Not everyone around the committee table was in favour of the reduction.
“I’m struggling with the assist factors,” Councillor Bill Sarai said. “Will that (reduction) be passed on to the homebuyer?”
Sarai and Councillor Nancy Bepple wanted to keep rates the same, noting the drop in fees isn’t likely to help homebuyers.
“Changing the costs by $1,000 or $700 isn’t going to change the cost of housing in any substantive way,” Bepple said. “At the same time, the City already waives costs for affordable housing units.”
The Committee voted 5-2 in favour of the changes – Bepple and Sarai were opposed. Councillor Margot Middleton was not at the meeting, while Councillor Mike O’Reilly declared a conflict of interest as his industrial real estate interests at Iron Mask Industrial Park.
The City says after Council’s consideration and initial readings of the amending DCC bylaw in March and April, the bylaw and supporting documentation will be forwarded to the Ministry of Municipal Affairs and Housing for review and approval.
Once it is approved by the Province, the bylaw can be adopted by Council.
