Proposed increases to Development Cost Charges (DCCs) in White Rock have raised concerns among members of the development community, who are calling on the city to reconsider the “substantial” hikes.
The city has proposed raising its DCCs – fees charged to applicants of new developments, meant to help the city recover costs of infrastructure – for the first time in 10 years.
The proposed rates – charged per unit for residential and per square metre for commercial and institutional – are $19,294.76 for single-family (from $5,602.26); $11,253.26 for multi-unit (from $4,011.35); $64.14 per sq. m for commercial (from $13.54); and $44.52 per sq. m for institutional (from $8.07).
Council gave first reading to the revised DCC bylaw in December, following adjustments to make the increases even higher than proposed in October. Second and third reading is expected this month; the province must give approval before final adoption.
The city maintains its revised charges would remain among the lowest in Metro Vancouver.
In a letter to the city co-signed by the CEOs of the Urban Development Institute and the Greater Vancouver Homebuilders’ Association, the increases are described as “very substantial” and the city is asked to instead phase in the new rates over three or four years.
The letter makes note of White Rock’s size – 5.13 sq. km – and says the increases would be “difficult for the industry and consumers to absorb” over a short time.
“It is important to understand that White Rock is geographically small and an urbanized municipality with very limited greenfield development when compared to municipalities such as the Township of Langley, Surrey, Coquitlam and Maple Ridge, where higher DCCs are expected,” the Feb. 10 letter states.
A Feb. 19 response from city staff said “careful consideration” has been given to the impact of the increases, and that their effect will be monitored. Highlighting that current rates are “very low,” the letter explains the percentage increases are large due, in part, to no increases for a decade.
“The increases… bring our DCC rates in line with other cities and reflect the costs to accommodate growth,” engineering manager Bob Ambardar writes, noting the city faces “significant upwards pressure” on housing prices, and the rates bring the city in line with the market. “Phasing in of DCCs would mean infrastructure funding will lag behind the projected growth in the city, which does not benefit residents or developers.”
City staff told council Monday that applicants whose projects are in process will have a year from the date the bylaw is adopted to have a building permit issued under the old rates.