Developers appear to be responding positively to a community amenity contribution program being considered by Coquitlam council that would put an estimated $3.4 million annually into city coffers.
Jim McIntyre, general manager of planning and development, said while builders never like having to pay more, a public input opportunity found most developers believe the city’s process is “clear and upfront.”
“I don’t think they do backflips over this stuff,” he told The Tri-City News Monday. “If there has to be a system, this is more palatable to them.”
A staff report stated the program would generate an estimated $103 million over the next 30 years, which breaks down to approximately $3.4 million annually. Most of the funds are expected to be used to pay for the implementation of the parks and recreation master plan, which was recently approved by council.
Developers often agree to contribute funds to a park or recreation facility near their project as part of the development approval process. But McIntyre said that having a defined community amenity contribution program clarifies what the city expects from the developers. “It creates more certainty,” he said.
Issues around the impact a community amenity program could have on affordability were raised at the committee table.
Coun. Terry O’Neill said he believes the added cost to developers will be passed on to homebuyers, an issue that could exacerbate the real estate affordability problem in the city.
“I don’t think the benefits will offset the decrease in affordability and the consequences of it,” he said.
He also noted that unlike the development cost charges program, which is enshrined in provincial law, a city community amenity contribution is voluntary. O’Neill suggested there could be consequences for the city if council rejects a development proposal because a developer refuses to contribute to the program.
Both O’Neill and Coun. Brent Asmundson voted against the receiving the report.
A CAC program was initially launched in the Burquitlam-Lougheed neighbourhood, where unprecedented development is taking place as a result of the Evergreen Line. According to McIntyre, the uptake has been 100% in that neighbour and the program has worked well enough to merit expansion to the rest of the city.
If the expansion is approved by council, developers would contribute $3 per square foot for all new multi-family floorspace on top of the density that already exists on a parcel of land. Single-family home developers would be expected to contribute $5,500 for all lots greater than 375 sq. m while smaller parcels would pay $4,800.
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