Coquitlam plans to jack up the levy it charges developers to recover costs on future infrastructure by an average of 42% to make up for the rising costs of parkland acquisition and construction.
The last time Coquitlam raised its development cost charges (DCC) was 2015. Since then the total DCC program has gone from $927 million to $1.3 billion, according to a report by Coquitlam financial manager Michelle Hunt.
Mayor Richard Stewart said it’s important to have enough money in the DCC bank to pay for infrastructure, especially for high density projects.
“If we’re going to go to apartments instead of single family we’re going to have to build the backyards for people,” said Stewart. “As a community we need to find a way to expand our parks.
“Parkland acquisition is a means to creating affordable housing. We have to have the amenities in place as a means of achieving affordable housing.”
City manager Pete Steblin said if the rates aren’t increased the city will have to cut back on its infrastructure building programs. The DCCs the city has been collecting can’t keep up with the rising costs, according to Hunt’s report. And that’s placed a larger burden on the city’s other sources of funding.
The proposed fee structure will see the DCC charged for a single family residential jump from $26,880 per 375 square metres to $43,981. Townhouses will go from $123 per square metre to $181, apartments from $123 to $183, commercial from $62 to $77, and industrial from $37 to $77.
Stewart and Coun. Brent Asmundson pointed out increasing the DCCs won’t drive up the cost of land. Instead the higher DCC will cut into the developers' bottom line, reducing the amount they can offer to purchase land.
Council also called on the Lower Mainland Local Government Association and the Union of B.C. Municipalities to lobby the provincial government for a review to clarify what costs are eligible for DCCs because the current legislation doesn't allow common amenities such as fire, police, recreation and culture to be included in the charges.
Hunt told council that in the future, the finance department will look at the DCC program every two years to reevaluate fees because it’s better to increase them slowly over time.
Before the rate structure is finalized it will go before a public hearing.
ggranger@tricitynews.com
