2016 Development Cost Charges (DCC) UPDATE
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1 2016 Development Cost Charges (DCC) UPDATE City of Richmond Public Meeting November 3, 2016
2 Outline Development Cost Charges (DCC) Overview DCC Rate Calculation DCC Recoverable Costs (DCC Programs) Estimated Growth Proposed DCC Rates DCC Rate Comparison Implementation 2
3 Possible Growth Recovery Tools Development Cost Charges General Revenue 5% Parkland Dedication Specified Area Charges Works and Services Agreements Community Amenity Contributions Grants/Cost Sharing Other 3
4 What are Development Cost Charges (DCCs)? Fees charged to developers to ensure growth pays for growth Help pay for the costs of: expanding and upgrading the City s transportation and utility infrastructure; and, purchase and develop new parkland in developing areas to meet the needs of growth 4
5 What are Development Cost Charges (DCCs)? DCC Approval requirements Council Province Regular Reviews Last update in
6 What works do DCCs pay for? Infrastructure to support growth including: Arterial road upgrades Intersection and traffic calming road improvements Pedestrian and bicycle facilities Water mains and PRV stations Sewer mains and pump stations Drainage system improvements Parkland purchase and park development 6
7 What items do DCCs not pay for? Operation and maintenance activities New or upgraded works needed for the existing population New libraries, fire halls, police stations, or parks and recreation facilities 7
8 Who pays DCCs? Applicants for: Subdivision approval to create single family development sites Building permits to construct multi-family, commercial, industrial and institutional developments 8
9 Why update the DCC rates? Last DCC review completed in 2009 Official Community Plan and Employment Lands Strategy Updated capital programs based on approved plans Increases in land prices and construction costs 9
10 DCC Process Estimate Growth Projections OCP Employment Land Strategy Study Determine Infrastructure Costs Attributed to Growth DCC Programs Benefit Factors Municipal Assist Factor Equivalent Units Calculate DCC Rates Public consultation Council approval Ministry approval Bylaw Adoption 10
11 DCC calculation DCC Recoverable Costs Growth DCC Rate 11
12 Growth Official Community Plan Population projection of 280,000 by 2041 Projected Residential Dwelling Unit Growth to 2041 Projected Industrial, Commercial, Office and Institutional Floor Area Growth to 2041 (Employment Lands Strategy) 12
13 Estimated Growth ( ) Development Type Growth Projection* Single Family Townhouse Apartment 1,982 units 17,834 units 19,091 units Commercial/Institutional 590,445 m 2 Light Industrial 390,862 m 2 Heavy Industrial 13 hectares *2041 OCP projection less growth to date 13
14 DCC calculation DCC Recoverable Costs Growth DCC Rate 14
15 DCC Recoverable Costs Servicing Types DCC Recoverable % of Total Costs Transportation $504,321, % Park Acquisition $248,120, % Park Development $178,383, % Drainage $167,383, % Sanitary $88,650, % Water $38,308, % Total $1,225,169,457 15
16 Roads Program Providing new and upgrading transportation infrastructure including arterial roads, traffic signals, sidewalks and pathways, crosswalks, cycling and rolling improvements, transitrelated road infrastructure and traffic safety projects Key Projects Westminster Highway and Willett Road (Hamilton) Enhancements to neighbourhood centres to better support walking, rolling and cycling 16,000-block River Road 16
17 Roads DCC Proposed Program ( ) 17 17
18 Park Acquisition Program Accommodate projected growth to 2041 according to the City s standards for the provision of parks and open space City-wide standard: 7.66 acres/1,000 population City-centre standard: 3.25 acres/1,000 population Key Projects Various City-centre parkland acquisitions Hamilton waterfront park Repayment of Garden City Lands Land acquisitions for neighbourhood parks, community parks and trails under the 2022 Parks and Open Space Strategy 18
19 Parkland Acquisition - by planning area 19 Planning Area Acres by Park Type DCC City- Natural Neighbourhood Community Recoverable Cost Wide Area Blundell $ - Bridgeport $ - Broadmoor 0.9 $ 2,543,648 City Centre $ 186,265,198 East Cambie $ 2,383,227 East Richmond $ 14,871,186 Fraser Lands $ - Gilmore $ 3,477,662 Hamilton $ 12,554,097 Sea Island $ - Seafair $ - Shellmont $ - Steveston $ - Thompson $ 4,159,322 West Cambie $ - General $ 21,866,626 Total $ 248,120,966
20 Park Development Program To construct new parks and to add new facilities to existing parks required due to growth Key Projects City Centre Middle Arm Park Garden City Lands Minoru Park City Centre Park Garry Point Park 20
21 Parks Development by planning area 21 Planning Area Park Dev. (acres) DCC Recoverable Cost by Park Type Neighbourhood Community City-Wide Natural Area Trail/ Greenway Total DCC Recoverable Cost Blundell $2,198,677 $2,198,677 Bridgeport $1,553,518 $1,553,518 Broadmoor $1,462,966 $3,202,403 $4,665,369 City Centre $4,453,268 $1,847,871 $89,253,449 $95,554,588 East Cambie $68,092 $2,193,321 $4,002,768 $6,264,181 East Richmond $2,896,740 $2,896,740 Fraser Lands $245,612 $115,869 $361,481 Gilmore $2,794,602 $2,794,602 Hamilton $2,845,012 $881,719 $2,248,171 $372,438 $6,347,340 Sea Island $983,462 $983,462 Seafair $934,669 $1,489,752 $2,424,421 Shellmont $777,605 $253,559 $2,139,638 $3,170,802 Steveston $1,510,255 $1,692,900 $10,116,018 $13,319,173 Thompson $4,894,550 $1,545,166 $771,210 $1,196,334 $8,407,260 West Cambie $2,577,534 $176,626 $2,754,160 City-Wide Trails $5,878,127 $5,878,127 General $18,810,000 $18,810,000 Total 1, $23,276,146 $12,853,132 $121,847,417 $11,901,134 $8,506,072 $178,383,901
22 Drainage Program As population density increases with redevelopment, the impervious land area increases, thereby increasing the amount of surface runoff into the drainage system. As such, infrastructure with increased capacity would be required. Key Projects No. 3 Road box culvert No. 1 Road box culvert Gilbert Road box culvert No. 2 Road South Pump Station capacity upgrade 22
23 Sanitary Program The sanitary sewer system collects sewage from properties and conveys it to the wastewater treatment plants. As population density increases with redevelopment, sewage flow increases, thereby requiring infrastructure with increased capacity. Key Projects New pump station at Lansdowne New pump station and forcemain in Hamilton City Center gravity mains Pump station capacity upgrades in various areas 23
24 Water Program As population density increases with redevelopment, water demand increases, thereby requiring infrastructure with increased capacity. The program consists of capacity upgrades for watermains and pressure reducing valve (PRV) stations. Key Projects Westminster Hwy (No.4 Road and Shell Road) watermain upgrade Blundell Road watermain upgrade Various PRV station upgrades 24
25 DCC calculation DCC Recoverable Costs Growth DCC Rate 25
26 Upward Pressure Proposed DCC Rates - Increasing land costs - Increasing construction costs - Increasing servicing plan - Decreasing growth projection 26
27 Proposed DCC Rates Current DCC Rates (2009) Unit Proposed DCC Rates (2016) % Change Annualized Increase ( ) Single Family $24, per lot $39, % 6.9% Townhouse $14.28 per ft 2 $ % 6.0% Apartment $15.09 per ft 2 $ % 6.0% Commercial $11.22 per ft 2 $ % 3.8% Light Industrial $8.96 per ft 2 $ % 3.4% Major Industrial $83, per acre $97, % 2.2% Average Increase 39% 27
28 Single Family DCC Comparison 28
29 Townhouse DCC Comparison 29
30 Apartment DCC Comparison 30
31 Commercial DCC Comparison Commercial DCC Rates Comparison ($/ft 2 ) Richmond (2016 proposed) $14.53 Water DCC Sewer DCC New Westminster (2016) $12.96 Roads DCC Drainage DCC Richmond (Existing) (2010) $11.22 Parkland DCC Surrey (2016) $9.92 (phased rate, year 1 of 3) Langley Township (2012) $5.93 Coquitlam (2016) $5.58 Delta (2013) $2.55 $- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $
32 Light Industrial DCC Comparison Light Industrial DCC Rates Comparison ($/ft 2 ) Richmond (2016 Proposed) Richmond (Existing) (2010) $8.96 $11.33 Water DCC Sewer DCC Roads DCC Drainage DCC Parkland DCC Langley Township (2012) $3.72 Surrey (2016) $3.62 (phased rate, year 1 of 3) Coquitlam (2016) $3.25 Delta (2013) $1.87 New Westminster (2016) $ $- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00
33 In-Stream Protection One year protection from new DCC rates for in-stream applications (complete subdivision and building permit applications) For DCCs levied at building permit, applies to precursor applications (complete rezoning and development applications that will result in building permit within year) 33
34 Next Steps Finalize DCC program and rates Amended DCC Bylaw to Council for 3 readings Submit DCC Bylaw to the Ministry for comments and approval DCC bylaw final reading DCC bylaw adoption (2017) 34
35 Questions or Comments? 35
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