Development Cost Charges
The Comox Valley Regional District has introduced new development cost charges (DCCs) to help fund acquisition and development of new parks and trails in the three electoral areas.
The new parks DCCs will apply to single and multi residential and tourist accommodations developments (hotels, motels, resorts, inns cabins, lodges). DCCs will be collected at subdivision for single residential development and at building permit for multi residential and tourist accommodation developments.
What are development cost charges?
Development cost charges (DCCs) are charges applied to new development to assist in financing the cost of upgrading or providing infrastructure services, such as water, sewer, transportation and drainage, or to acquire and develop parkland. The parks DCCs will help pay for parkland acquisition and development to 2030 to service the needs of a growing population.
When will the new parks DCCs come into effect?
The new parks DCC bylaw has passed first, second and third reading by the regional district board and has been submitted to the provincial government for approval. The bylaw must receive a fourth reading and final approval by the regional district board before it is adopted. Once the DCC bylaw has been given a fourth and final reading, the proposed DCC rates will be in effect. It is anticipated that the bylaw will be in effect in late winter or early spring 2013.
In July 2011, the CVRD parks department hired Urban Systems Ltd. to work on a development cost charges bylaw for the electoral areas ‘A', ‘B', and ‘C' (Courtenay, Cumberland and Comox already have parks DCCs). Parks staff provided Urban Systems with the parkland acquisition and development program based on the rural Comox Valley parks and greenways, 2011-2030 strategic plan. [PDF - 76 KB]
In recognition of the time lag between acquisition and development, some of the trail development identified in the parks and greenways strategic plan was deferred to beyond 2030. The DCC program map [PDF - 3.1 MB] shows the areas that would be funded in part through parks DCCs.
New Parks DCC Rates
|single residential||$1,417.63 per lot|
|multi residential||$1,181.36 per dwelling unit|
|tourist commercial accommodation||$212.64 per room|
How parks DCCs are set
The proposed park DCCs are based on the following assumptions:
- A growth projection of 1,491 single family residential lots and 399 multi family dwelling units in the rural and core settlement areas (based on the Comox Valley regional growth strategy [PDF - 4.6 MB]
- A growth projection of 675 new tourist accommodation units by 2030
- A 21 per cent benefit factor - the electoral areas are expected to grow by 21 per cent by 2030. New residents are likely to use parks and greenways at the same rate/frequency as existing residents. Therefore 21 per cent of the costs for new parks and greenways are assigned to new development. The remainder of the cost is carried by existing residents
- The parks DCC is only applied to residential development and tourist commercial accommodation – development of hotels, resorts, inns, cabins and lodges. B&B's, campgrounds, RV parks, other commercial and industrial developments are excluded from the charge.
Different rates are charged for single family and multi residential developments based on different average occupancy rates (2.4 for single family and 2 for multi residential developments).
- The DCC rate for tourist accommodation is based on a 30 percent occupancy and an average of 1.2 people per room.
- Single residential DCCs are charged per lot.
- Multi residential DCCs are charged per unit.
- Tourist accommodation is charged per room.
- The parks DCC bylaw will come into effect as soon as it is adopted as legislation.
- Subdivision and development applications that were submitted prior to the parks DCC bylaw coming into effect, provided the applications are complete and application fees have been paid, are exempted from the new DCCs for one year from the date of adoption of the new DCC bylaw.
- Developers who build a portion of a trail or donate lands that are part of the park and greenway acquisition and development program identified in the DCC bylaw will receive a credit toward the DCC charges.
- The DCC program and rates will be reviewed annually, with a major review every three to five years to ensure the cost estimates are up to date.