The public had its first look at new draft development cost charge (DCC) rates in Sechelt last week as the municipality moved forward with its DCC review that will likely see several rates rise, some by more than 100 per cent.
DCCs are paid by developers when properties are subdivided and built on, and the charges are meant to help pay for infrastructure costs associated with growth expected from that development.
Most of Sechelt’s current DCCs haven’t been updated since the 1990s and several different DCC bylaws have been created to pay for services such as drainage, parks and transportation development.
Consultant James Klukas, with Urban Systems, said during the June 16 E-Town Hall on the subject that streamlining the number of DCC bylaws was a priority of the review. “We’re planning on creating one consolidated bylaw for the DCC program as opposed to having a number of separate, different bylaws,” he said.
“Another key goal of the review is to shift towards a district-wide DCC approach, as opposed to the area-based approach.”
The new draft DCC rates in Sechelt have been calculated based on the expected growth and infrastructure needs of the municipality over a 20-year timeframe.
The district expects to spend about $49 million for transportation, drainage, wastewater and park expansion needs associated with growth over the next two decades and hopes to capture a large portion of that cost ($37.3 million) through DCCs via the new draft rates.
The draft rates show an increase of 108 per cent for single-family unit charges and 113 per cent for institutional and commercial charges per square metre. The new rates would charge $22,484 per single-family unit and $50.52 per square metre of institutional or commercial construction.
Industrial DCC rates would rise by 58 per cent under the draft rate structure, setting the charge at $22.08 per square metre of industrial construction. The rate for townhouses would rise by 41 per cent to $15,208 per unit, while the rates charged for apartments and congregate care centres would decrease by seven and five per cent respectively. The new apartment DCC rate would be $10,033 per unit and the new congregate care rate would be $6,395 per bed under the draft bylaw.
The lower rates are meant to reflect the lesser impact those types of developments have on Sechelt’s infrastructure, according to Klukas.
A report from a June 16 meeting with five representatives of the development community and district staff showed that developers suggested phasing in the new rates over a number of years, as a large DCC increase would likely create a rush of applications to be considered under the current rate structure.
Developers also noted the new fees would negatively impact the affordability of homes as the costs will ultimately get passed on to the homeowner.
The draft bylaw will come to a future council meeting for discussion before more public consultation meetings are set.
