2018 Development Cost Charges (DCCs) Update
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- Edward Leonard Carpenter
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1 2018 Development Cost Charges (DCCs) Update
2 Agenda DCC Overview DCC Update Proposed DCC Rates Next Steps
3 DCCs - OVERVIEW
4 Why do we have DCCs? DCCs pay for the costs of expanding and upgrading the community s transportation, utility and park infrastructure to meet the needs of growth. Most municipalities use DCCs because they are the best way to fairly distribute growth-related costs across developers.
5 What do DCCs fund? Yes Arterial roads & traffic upgrades Pedestrian & bicycle facilities Trunk sewer mains & pump stations Trunk water mains & pump stations Drainage system improvements Purchase of parkland Parkland development No New recreation or cultural centres, libraries, fire halls, police stations Park buildings, parking lots, sports field lighting, artificial turf sports fields and sport courts Local road and utility servicing Operation and maintenance of City s infrastructure New or upgraded works needed for the existing population
6 Who pays DCCs? Applicants for: subdivision approval to create single family development sites building permits to construct multi-family, commercial, industrial and institutional development
7 How are DCCs Governed? Provincial Legislation Section 14, Division 19 of the Local Government Act Also Provincial DCC Best Practices Guide Municipal Bylaw
8 Coquitlam DCC Program 30-year program with growth projections to 2046 (based on Regional Growth Strategy) City-wide DCCs Two Single Family Dwelling Rates (Lot >375 m 2 and Lot <375m 2 ) Charges on a per m2 basis to support housing affordability initiatives Separate Duplex, Triplex and Quadruplex Rate Parkland DCCs levied for residential units only Municipal Assist Factor 1%
9 2018 DEVELOPMENT COST CHARGES UPDATE
10 Why Update the DCC Program? Last DCC Program update was in 2015 (bylaw passed in January 2016) Land and construction costs have risen Capital projects have been completed New information on capital projects New information on development trends
11 Growth Forecast (to 2046) Development Residential Non-Residential Growth 94,204 people 412,700 sq.m. total floor area
12 Benefit Allocation & MAF Service Benefit to Development Municipal Assist Factor Transportation % 1% Water % 1% Drainage % 1% Sewer % 1% Parkland Acquisition 100% 1% Parkland Development % 1%
13 DCC Recoverable Costs Total DCC Program $1,328 M Cost Sharing/Grants ($204 M) Allocation to Existing Residents ($154 M) Non-Eligible Park Amenities ($28 M) Municipal Assist Factor 1% ($9 M) DCC Recoverable Costs $933 M $191 M Funded by City
14 DCC Recoverable Costs Infrastructure Program DCC Recoverable Costs (2015) DCC Recoverable Costs (2018) % Change Transportation $182 M $203 M 12% Water $46 M $44 M -6% Drainage $73 M $63 M -14% Sewer $18 M $19 M 8% Park Acquisition $243 M $472 M 94% Park Improvement $89 M $132 M 48% Total $651 M $933 M 43%
15 Transportation Program Supported by Strategic Transportation Plan $203 million in DCC Recoverable Costs $204 million Grant Funding or Cost Sharing Major Project Changes/Updated Costs: Lougheed/Brunette/Blue Mountain Capacity Improvements Lougheed Corridor Improvements New Street Freemont (Lower Victoria to Lincoln) Grade Separation Falcon Drive Grade Separation Westwood Street 40% 40% 20% DCC Recoverable Municipal Share Grant Funding
16 Water Program Supported by OCP servicing assessments and technical infrastructure plans $44 million in DCC recoverable costs Some major projects have been completed so program costs have been decreased (e.g. David Ave Pump Station) Major Projects included: Harper Reservoir (Cell 2) Crouch Reservoir Plateau Pump Station Foster Reservoir Expansion Foster Pump Station Expansion Foster Ebert Trunk Main (New) 13% 87% DCC Recoverable Municipal Share/ Potential Grants
17 Drainage Program Supported by OCP servicing assessments and technical infrastructure plans $63 million in DCC recoverable costs Some major projects have been completed so program costs have been decreased since 2015 (e.g. Partington Creek Diversion Pipe North Branch) New Major Projects: Austin Creek Diversion East NW Burke Vision Stormwater Management Facilities 20% 80% DCC Recoverable Municipal Share/Potential Grants
18 Sanitary Sewer Program Supported by OCP servicing assessments and technical infrastructure plans $19 million in DCC recoverable costs Major projects completed: Coast Meridian Road Interceptor Shaughnessy/Lincoln Interceptor Major projects added/updated: Blue Mountain Sewer Upgrades Stoney Creek Trunk Sewer Hockaday Trunk Sewer (reflects new scope and construction costs) 20% 80% DCC Recoverable Municipal Share/Potential Grants
19 Park Acquisition Program Supported by OCP and Parks, Recreation & Culture Master Plan $472 million in DCC recoverable costs Includes 107 acres of new parkland (20.5 acres less than 2015 program) Removed $67 M of parkland dedicated expected through 5% subdivision Increase is due to cost of land increases. Total land value increase is average of 130% (examples below) Example Parks: 2015 Cost/acre 2018 Cost/acre Increase 1% 99% DCC Recoverable Municipal Share Burquitlam Neighbourhood Parks $5.5 M $11.6 M 111% Partington Creek Neighbourhood Parks $1.8 M $6 M 233% City Centre Community Parks $6.5 M $17.4 M 168% 2018 DCC Program meeting with UDI
20 Park Acquisition Program 107 Acres for $472 Million Park Type Average Cost/Acre Neighbourhood Parks $5.9 M Community Parks $9.3 M City Wide Parks $0.8 M Linear Parks & Greenways $1.2 M 9% 6% 5% 32% 48% Neighbourhood Parks (39 acres) Community Parks (16 acres) City-Wide Parks (27 acres) Linear Parks & Greenways (37 acres) Other (5 acres)
21 Park Improvement Program Supported by OCP and Parks, Recreation & Culture Master Plan $132 million in DCC recoverable costs Increase is primarily due to construction costs (average unit cost increase of 45%) Addition of Town Centre Park improvements Medium term: $16M ($5M DCC Recoverable) Long term: $20M ($6.1M DCC Recoverable) Total increase of 4 acres of new parkland development 29% 71% DCC Recoverable Municipal Share
22 DCC Program Changes Summary Land costs (approx. 100% increase) Construction costs (approx. 25% increase) Growth projections shift towards multi-family Deletion of completed projects Addition of new projects
23 PROPOSED DCC RATES
24 How do we calculate DCC Rates
25 Current and Proposed Rates Current 2018 Rates Proposed Rates % Change Single Family Lot (> 375 sq.m.) $26,880/lot $43,981/lot 64% Single Family Lot (< 375 sq.m.) $23,005/lot $37,493/lot 63% Duplex/Triplex/Quadruplex $123/m 2 $178/m 2 46% Townhouse $123/m 2 $181/m 2 46% Apartment $123/m 2 $183/m 2 48% Commercial $62/m 2 $77/m 2 24% Industrial $37/m 2 $44/m 2 18% Institutional $62/m 2 $77/m 2 25%
26 DCCs as % of Home Price Year MLS Home Price Index (Single Family) DCC Rates DCCs as % of Home Price Apr 2007 $595,700 $23, % Apr 2012 $703,300 $22, % Apr 2015 $826,400 $25, % Apr 2018 $1,304,900 $43,981 (proposed) 3.37% DCCs have stayed relatively constant in comparison to the benchmark house prices
27 Single Family Comparison Single Family DCC Comparison (per lot) Coquitlam Large Lot (Proposed) (2018) $43, Surrey (2018) $41, Richmond (2017) $39, Coquitlam Small Lot (Proposed) (2018) North Vancouver (District) (2018) Coquitlam Large Lot (Existing) (2018) $28, $26, $37, Roads DCC Drainage DCC Langley (Township) (2012) $26, Sewer DCC Coquitlam Small Lot (Existing) (2018) $23, Water DCC Maple Ridge (2018) $22, Parkland DCC Abbotsford (2010) Port Coquitlam - Area 2 (2010) $22, $16, Combined DCC Port Moody (Proposed) (2018) $13, Port Coquitlam - Area 1 (2010) $6, $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Note: Port Moody (2018) - DCCs do not apply to the Inlet Centre area where special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre.
28 Townhouse Comparison Townhouse DCC Comparison (per sq.m. GFA) Richmond (2017) Surrey (2018) Coquitlam (Proposed) (2018) Langley (Township) (2012) Roads DCC North Vancouver (District) (2018) Drainage DCC Maple Ridge (2018) Sewer DCC Coquitlam (Existing) (2018) Port Coquitlam - Area 2 (2010) Abbotsford (2010) Water DCC Parkland DCC Combined DCC Port Moody (Proposed) (2018) Port Coquitlam - Area 1 (2010) $0 $50 $100 $150 $200 $250 Note: Port Moody (2018) - DCCs do not apply to the Inlet Centre area where special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre.
29 Apartment Comparison Apartment DCC Comparison Rates (per sq.m. GFA) Surrey (2018) Richmond (2017) $ $ Langley (Township) (2012) Coquitlam (Proposed) (2018) Port Coquitlam - Area 2 (2010) North Vancouver (District) (2018) Maple Ridge (2018) Coquitlam (Existing) (2018) Abbotsford (2010) $ $ $ $ $ $ $ Roads DCC Drainage DCC Sewer DCC Water DCC Parkland DCC Combined DCC Port Moody (Proposed) (2018) Port Coquitlam - Area 1 (2010) $54.95 $67.91 $0 $50 $100 $150 $200 $250 $300 Note: Port Moody (2018) - DCCs do not apply to the Inlet Centre area where special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre.
30 Commercial Comparison Port Coquitlam - Area 2 (2010) Richmond (2017) Surrey (2018) Commercial DCC Comparison Rates (per sq. m. GFA) $ $ $ North Vancouver (District) (2018) Abbotsford (2010) $78.45 $ Roads DCC Drainage DCC Coquitlam (Proposed) (2018) $78.00 Sewer DCC Langley (Township) (2012) $66.15 Water DCC Coquitlam (Existing) (2018) Port Moody (Proposed) (2018) $62.00 $46.25 Parkland DCC Combined DCC Maple Ridge (2018) $45.35 Port Coquitlam - Area 1 (2010) $40.37 Note: $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Port Moody (2018) - DCCs do not apply to the Inlet Centre area where special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre.
31 Industrial Comparison Industrial DCC Comparison Rates (per sq.m. GFA) Richmond (2017) $ North Vancouver (District) (2018) $ Surrey (Proposed) (2018) $90.74 Langley (Township) (2012) Port Coquitlam - Area 2 (2010) Coquitlam (Proposed) (2018) Abbotsford (2010) $44.00 $43.31 $64.62 $80.04 Roads DCC Drainage DCC Sewer DCC Water DCC Port Moody (Proposed) (2018) $40.27 Parkland DCC Coquitlam (Existing) (2018) $37.00 Combined DCC Maple Ridge (Proposed) (2018) Port Coquitlam - Area 1 (2010) $14.78 $22.83 $0 $20 $40 $60 $80 $100 $120 $140 Note: Port Moody (2018) - DCCs do not apply to the Inlet Centre area where special development levies are applied based on unique servicing and amenity requirements associated with Inlet Centre DCC Program meeting with UDI
32 In-Stream Protection New DCC rates will be effective at bylaw adoption However, legislation provides protection to in-stream: Building permit applications Subdivision applications Precursor applications (re-zoning and DP) These applications must be complete and received prior to adoption of the new bylaw To qualify for old DCC rates, these applications must be in prior to adoption of the new DCC bylaw AND Building permits/subdivision must be granted within one year of bylaw adoption; or Re-zoning and DP applications must result in building permit issuance within one year of bylaw adoption
33 NEXT STEPS 2018 DCC Program meeting with UDI
34 Next Steps Consultation with UDI November 23 Online and Counter Information Distributed November 23 Final date to receive input December 7 Update to Council on Public Consultation January 2019 DCC Bylaw for Council Consideration January/February 2019 Ministry Approval February/March 2019 Council adoption of DCC Bylaw March/April 2019 coquitlam.ca/dccupdate
35 QUESTIONS?
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