Policy Directive No. G-7Page 1 of 2
DEVELOPMENT COST CHARGE IMPLEMENTATION
POLICY DIRECTIVE NO. G-7
SUBJECT:DEVELOPMENT COST CHARGE IMPLEMENTATION
APPROVAL DATE:LAST REVIEW DATE:June, 1997
REFERENCE:
A.POLICY:
1.The following policies shall apply to the calculation and payment of Development Cost Charges (DCCs) where appropriate:
(a)Prior to a Building Permit being issued for a commercial, institutional, or industrial building, Development Cost Charges are payable for any gross floor area to be constructed in excess of the gross floor area of any previously existing building approved for demolition at the time of issuance of the building permit for the new building. For example, an existing building of 500 m2 is approved for demolition. The proposed building has an area of 900 m2. DCCs are payable for 400 m2. The definition of “gross floor area” is as follows: “Gross floor area shall mean the sum of the total floor area of each floor in a building, including basements, with the exception of areas used for parking purposes.”
(b)Prior to a Building Permit being issued for a commercial, institutional, or industrial building a Development Cost Charge is payable on the basis of the combined gross floor area of all floors of the building. For example, a two-storey building has floor areas of 300 m2 and 250 m2 . DCCs are payable for 550 m2 .
(c)Prior to a Building Permit being issued for a commercial/residential building, A Development Cost Charge is payable consisting of the sum of the gross commercial floor area and the applicable charges for each residential unit to be constructed.
(d)Where parcels of land are being subdivided for residential purposes, credit is given for all lots existing at the time of subdivision. The applicable Development Cost Charges are payable only on those lots created additionally to the number of existing lots. For example, where 3 existing lots are consolidated and then subdivided into 20 lots DCCs for 17 lots would be payable.
POLICY (continued)
(e)Where a Building Permit is issued for a multi-family residential project of four or more units, credit is given for one fully serviced urban residential lot at the DCC rate applicable at the time the lot was created. For example, lots created prior to September 13, 1980 would get no credit. Lots created under the provisions of Development Cost Charge Bylaw, 1980, No. 64 between September 13, 1980 and December 4, 1990 would get a credit of $751.00. Lots created under the provisions of Development Cost Charge Bylaw 1989, No. 1302 since December 4, 1989 would get a credit of $4,956.94.
2.Pursuant to the provisions of the Municipal Act and Ministerial regulations, Development Cost Charges in excess of $50,000 may be paid in installments at the developer's option, subject to the provisions of B.C. Regulation 166/84 or other regulations that may be in force from time to time.
3.Development Cost Charges of less than $50,000 may be paid in installments at the developer’s option subject to the following:
(a)50% of the total amount of Development Cost Charges, plus an irrevocable Letter of Credit for the balance, is payable prior to final subdivision approval, or prior to the issuance of a Building Permit;
(b)The balance owing is to be paid within one year less two weeks of final subdivision approval, or the issuance of the Building Permit; and
(c)If the developer fails to make payment within one year less two weeks then the total amount of the Letter of Credit becomes immediately due and payable.
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Municipal Administrator