In a move of which Premier Christy Clark would likely approve, School District 43 is cutting fees developers have to pay for the purchase of future school sites.
Called school site acquisition charges, the fees are paid by developers at the building permit stage and cuts to them could amount to hundreds or even thousands of dollars of savings for house and condo builders in the Tri-Cities.
The moves comes as the provincial government announced in its recent throne speech that municipalities should cut developers' feeds to promote affordable housing, a move that was roundly criticized by Metro Vancouver mayors.
But here in the Tri-Cities, some fees will be cut: A low-density builder will now pay $726 per unit, down from $1,000, while condo builders will pay $436 per unit, down from $600. A range of other fees will be cut, too.
"Maybe the cities will send us a thank-you letter," Port Coquitlam Trustee Judy Shirra joked as the board unanimously approved the cut, which will see fees drop by about 27%.
On a condominium project, such as a 27-storey, 174-unit project planned for Windsor Gate in Coquitlam, the savings could amount to about $35,000.
But it wasn't out of generosity the move was made; in fact, the district needs fewer school sites because it recently acquired four properties to build five schools on Burke Mountain.
"I really don't think we have a choice in the matter in that we have to comply with the legislation," said Chris Nicolls, assistant secretary treasurer.
The fees generated by developers cover approximately 35% of the school site purchase.
Funds still need to be collected for four more elementary schools expected to be needed as the region grows: Riverwalk, Partington Creek, Marigold and Anmore/Port Moody. Currently, the district has about $4 million in its reserve for the purchase of school sites.
According to SD43 staff, the cut had to be made because fees are based on a calculation regulated by the province.
In June, the district announced it had reached a deal with the city of Coquitlam, property owners and Wesbild to purchase school sites for Smiling Creek, as well as two more elementary schools in the area and a middle school next to the secondary school.
Approximately $5 million was spent from school site acquisition charges to acquire the properties at the time.
