The City of Cranbrook intends to update its Development Cost Charge Bylaw (DCCs), but after taking an initial look at three recommendations put forward by city administrative staff, council Jan. 23 opted to defer any decisions until the Feb. 6 meeting.

The three recommendations included a municipal-wide DCC update based on the DCC Best Practices Guide, do a major review and update every years or an annual adjustment reflecting the industry construction price index.

Additionally, the report suggests two alternatives. The first recommends that council direct administration go with the second option, an updated municipal wide DCC Bylaw based on a minimum assist factor of one per cent. It also offers the route of council not directing city staff to update the DCC Bylaw.

DCCs have a “significant” impact on city revenues, the staff report notes, and are to be used to “assist in capital construction of core municipal services (water, sewer, storm and roads).”

Citing the complex enormity of the report and the need to digest it more fully, council members unanimously agreed to defer the bylaw update. However, several council members expressed relief that a DCC review is being done.

“I’m glad to see this come forward,” said Coun. Bob Whetham. “There is only one taxpayer. Someone has to pay the freight.”

Mayor Wayne Stetski noted the last change in DCCs was in 2004. “One of the things talked about is development pays for itself,” he said.

Potential changes to the DCC Bylaw would see the current rate for construction of single family home rising from $2,032 to $11,409.

“It’s a substantial increase,” said city engineer Jamie Hodges (??). “The goal is to achieve, as much as possible, development paying for itself scenario.”

Comparatively, the City of Fernie’s DCCs are $12,017 per single family home, while the District of Invermere’s DCC’s, once considered expensive, are $9,480 and Creston has a rate of $4,365, pointed out Coun. Sharon Cross.

“This is a really important issue, not only for taxpayers but the construction and development industries,” she said, adding she’d like to see green building practices included. Stating she needed more time to speak on the matter, Cross asked for a deferral.

Coun. Diana J Scott said she was leaning toward a municipal-wide DCC update based on the DCC Best Practices Guide but would also like to hear from the community on the subject.

City chief administrative officer Will Pearce told council a DCC review “does take an enormous amount of work.”

Whetham, a former director of planning for the Regional District of East Kootenay, admitted that while Cranbrook’s DCCs are low compared to other locations, there is a good deal of complexity to the issue.

“I’m not going to pretend I understand all this,” he exclaimed.

“This is quite complicated,” Scott agreed, adding she fears setting rates so high that it “impedes development” but not so low that the city takes it on the chin.

“There’s the rub,” she said.

“It’s a very, very important issue for the development community,” Pearce concurred.

He told council he would bring examples of DCC changes ranging from 10, 15, 20, 25, 35 and 50% to the Feb. 6 meeting.

See the full staff report here: https://cranbrook.civicweb.net/Documents/DocumentList.aspx?ID=1923 .

Ian Cobb/e-KNOW 

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