2018 Development Cost Charges (DCCs) Update Agenda DCC Overview - - PowerPoint PPT Presentation

2018

Development Cost Charges (DCCs) Update

Agenda

• DCC Overview
• DCC Update
• Proposed DCC Rates
• Next Steps

2018 DCC Update

DCCs - OVERVIEW

2018 DCC Update

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.

2018 DCC Update

What do DCCs fund?

Yes No

• 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
• 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

2018 DCC Update

Who pays DCCs?

• Applicants for:

– subdivision approval to create single family development sites – building permits to construct multi-family, commercial, industrial and institutional development

2018 DCC Update

How are DCCs Governed?

Provincial Legislation

Section 14, Division 19 of the Local Government Act

Also…

• Provincial DCC Best Practices Guide
• Municipal Bylaw

2018 DCC Update

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 m2 and Lot <375m2)
• 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%

2018 DEVELOPMENT COST CHARGES UPDATE

2018 DCC Update

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

2018 DCC Update

Growth Forecast (to 2046)

Development Growth Residential 94,204 people Non-Residential 412,700 sq.m. total floor area

2018 DCC Update

Benefit Allocation & MAF

Service Benefit to Development Municipal Assist Factor Transportation 42 -100% 1% Water 42 -100% 1% Drainage 42 -100% 1% Sewer 42-100% 1% Parkland Acquisition 100% 1% Parkland Development 42 -100% 1%

2018 DCC Update

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

2018 DCC Update

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%

2018 DCC Update

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% 20% 40% DCC Recoverable Municipal Share Grant Funding

2018 DCC Update

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) 87% 13% DCC Recoverable Municipal Share/ Potential Grants

2018 DCC Update

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 80% 20% DCC Recoverable Municipal Share/Potential Grants

2018 DCC Update

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) 80% 20% DCC Recoverable Municipal Share/Potential Grants

2018 DCC Update

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) 99% 1% DCC Recoverable Municipal Share Example Parks: 2015 Cost/acre 2018 Cost/acre Increase 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

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

2018 DCC Update

48% 32% 5% 9%6%

Neighbourhood Parks (39 acres) Community Parks (16 acres) City-Wide Parks (27 acres) Linear Parks & Greenways (37 acres) Other (5 acres)

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

71% 29% DCC Recoverable Municipal Share

2018 DCC Update

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

2018 DCC Update

PROPOSED DCC RATES

2018 DCC Update

How do we calculate DCC Rates

2018 DCC Update

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/m2 $178/m2 46% Townhouse $123/m2 $181/m2 46% Apartment $123/m2 $183/m2 48% Commercial $62/m2 $77/m2 24% Industrial $37/m2 $44/m2 18% Institutional $62/m2 $77/m2 25%

2018 DCC Update

DCCs as % of Home Price

Year MLS Home Price Index (Single Family) DCC Rates DCCs as % of Home Price Apr 2007 $595,700 $23,588 3.95% Apr 2012 $703,300 $22,179 3.13% Apr 2015 $826,400 $25,812 3.12% Apr 2018 $1,304,900 $43,981 (proposed) 3.37%

2018 DCC Update DCCs have stayed relatively constant in comparison to the benchmark house prices

Single Family Comparison

2018 DCC Update

$6,644.00 $13,620.00 $16,299.00 $22,362.00 $22,471.00 $23,005.00 $26,629.14 $26,880.00 $28,035.81 $37,493.00 $39,494.10 $41,220.00 $43,981.00 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Port Coquitlam - Area 1 (2010) Port Moody (Proposed) (2018) Port Coquitlam - Area 2 (2010) Abbotsford (2010) Maple Ridge (2018) Coquitlam Small Lot (Existing) (2018) Langley (Township) (2012) Coquitlam Large Lot (Existing) (2018) North Vancouver (District) (2018) Coquitlam Small Lot (Proposed) (2018) Richmond (2017) Surrey (2018) Coquitlam Large Lot (Proposed) (2018)

Single Family DCC Comparison (per lot)

Roads DCC Drainage DCC Sewer DCC Water DCC Parkland DCC Combined DCC

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.

Townhouse Comparison

2018 DCC Update

49.38 67.91 77.22 112.94 123.00 134.21 143.92 175.07 182.00 228.97 231.12 $0 $50 $100 $150 $200 $250 Port Coquitlam - Area 1 (2010) Port Moody (Proposed) (2018) Abbotsford (2010) Port Coquitlam - Area 2 (2010) Coquitlam (Existing) (2018) Maple Ridge (2018) North Vancouver (District) (2018) Langley (Township) (2012) Coquitlam (Proposed) (2018) Surrey (2018) Richmond (2017)

Townhouse DCC Comparison (per sq.m. GFA)

Roads DCC Drainage DCC Sewer DCC Water DCC Parkland DCC Combined DCC

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.

Apartment Comparison

2018 DCC Update

$54.95 $67.91 $103.65 $123.00 $132.40 $154.75 $158.71 $183.00 $201.97 $243.28 $260.18 $0 $50 $100 $150 $200 $250 $300 Port Coquitlam - Area 1 (2010) Port Moody (Proposed) (2018) Abbotsford (2010) Coquitlam (Existing) (2018) Maple Ridge (2018) North Vancouver (District) (2018) Port Coquitlam - Area 2 (2010) Coquitlam (Proposed) (2018) Langley (Township) (2012) Richmond (2017) Surrey (2018)

Apartment DCC Comparison Rates (per sq.m. GFA)

Roads DCC Drainage DCC Sewer DCC Water DCC Parkland DCC Combined DCC

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.

Commercial Comparison

2018 DCC Update

$40.37 $45.35 $46.25 $62.00 $66.15 $78.00 $78.45 $121.83 $128.90 $156.24 $179.39 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Port Coquitlam - Area 1 (2010) Maple Ridge (2018) Port Moody (Proposed) (2018) Coquitlam (Existing) (2018) Langley (Township) (2012) Coquitlam (Proposed) (2018) Abbotsford (2010) North Vancouver (District) (2018) Surrey (2018) Richmond (2017) Port Coquitlam - Area 2 (2010)

Commercial DCC Comparison Rates (per sq. m. GFA)

Roads DCC Drainage DCC Sewer DCC Water DCC Parkland DCC Combined DCC

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.

Industrial Comparison

2018 DCC Program meeting with UDI

$14.78 $22.83 $37.00 $40.27 $43.31 $44.00 $64.62 $80.04 $90.74 $100.60 $121.91 $0 $20 $40 $60 $80 $100 $120 $140 Port Coquitlam - Area 1 (2010) Maple Ridge (Proposed) (2018) Coquitlam (Existing) (2018) Port Moody (Proposed) (2018) Abbotsford (2010) Coquitlam (Proposed) (2018) Port Coquitlam - Area 2 (2010) Langley (Township) (2012) Surrey (Proposed) (2018) North Vancouver (District) (2018) Richmond (2017)

Industrial DCC Comparison Rates (per sq.m. GFA)

Roads DCC Drainage DCC Sewer DCC Water DCC Parkland DCC Combined DCC

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.

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
• f bylaw adoption

2018 DCC Update

NEXT STEPS

2018 DCC Program meeting with UDI

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

2018 DCC Update

QUESTIONS?