The City of Cranbrook intends to change its Development Cost Charge (DCCs) Bylaw and increases can be expected, but how much remains to be seen.

Council last night (Feb. 6) once again voted to defer any decision-making until its next meeting (Feb. 20), asking city administration to provide information about DCC rates in other regional municipalities, as well as the ‘assist factors’ being applied in those towns.

The move came after council reviewed a municipal assist factor report prepared by administration, which included municipal assist factors ranging from one per cent to 51% (in five per cent increments).

The city currently charges developers constructing a single family home $2,032 in DCCs. The suggested rate ranges, from one per cent to 51%, could mean DCCs would increase to between $11,409 per single family dwelling (one per cent) to $5,582 (51%).

Council members strayed all over the map in what they’d like to see happen.

Coun. Denise Pallesen recommended assist factor 51%, which would more than double the DCC rates.

“In these economic times we have to encourage growth and it would almost double the rates. We need to help our industries and that’s a good way to start,” she said.

Coun. Diana J Scott agreed, suggesting she believes residents understand the need for DCCs so the taxpayer doesn’t get holding the bag when new development impacts city infrastructure.

“We also need a strong economy in Cranbrook. Development, revitalization, upgrades, expansions – anything we can do to help and not hinder,” she said, suggesting the higher assist factor rates might be the straw to break backs when developers are considering where to build.

Mayor Wayne Stetski explained the complicating assist factor ratios essentially mean: assist factor one means developers pay more and taxpayers less, and the higher the percentage rises, the less developers pay and the more taxpayers pay.

It isn’t just single family home development that will be impacted by changes to DCCs, Stetski added.

Industrial development DCCs are currently $32,186 per hectare. Should the city chose assist factor one those rates would surge to $191,164/ha, while 51% would push them to $93,000/ha.

“The question becomes what is the appropriate split?” the mayor said.

Coun. Bob Whetham said he doesn’t have a figure in mind, yet, adding he would like to get more information from taxpayers and developers making a decision.

“If it’s not paid as a course of development” then the city has to pay, he said, adding further that it might be wise to reduce DCCs for infill development to encourage developers to  build on the city’s estimated 600 vacant lots.

Coun. Sharon Cross said the current DCCs “don’t cut it. I am at a loss of where to go.” She added that she doesn’t favour the least amount – the 51% assist factor.

Scott reminded that even with the 51% assist factor the rates are rising by $3,560 per single family dwelling.

“I think we need to give it a try but keep it on the conservative side. You keep people employed and in the community” when developers are building, she said.

Cross argued that she doesn’t see contractors bringing “a sustainable form of employment. As them (contractors) how many times they have had to write off their investments in any subdivision. I don’t think you will find one,” she said.

DCCs have a “significant” impact on the city’s budget, noted chief administrative officer Will Pearce. “DCCs generate substantial revenues to assist in capital construction of core municipal services (water, sewer, storm, roads) necessary to support new development and continued investment,” he reported.

He also stressed that he needs council to give him direction.

“If the philosophy is development pays for development, you see a lesser assist factor,” he said, adding council must formulate its philosophy into something that can move forward. “It is a policy decision of council,” he said.

Whetham said the city should “work in concert with what is happening in the rest of the region. What is the norm? We shouldn’t be something that is dramatically different” to other East Kootenay municipalities, he said, leading to council’s decision to defer the matter further.

Ian Cobb/e-KNOW

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