2016 development cost charges (dcc) update
TRANSCRIPT
2016 Development Cost Charges (DCC) UPDATE
City of Richmond
Public Meeting
November 3, 2016
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Outline
• Development Cost Charges (DCC)
Overview
• DCC Rate Calculation
– DCC Recoverable Costs (DCC Programs)
– Estimated Growth
• Proposed DCC Rates
• DCC Rate Comparison
• Implementation
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Possible Growth Recovery Tools
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Development
Cost Charges
Community
Amenity
Contributions
Works and
Services
Agreements
5% Parkland
Dedication
General
Revenue
Grants/Cost
Sharing Other
Specified
Area Charges
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What are Development Cost Charges (DCCs)?
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• Fees charged to developers to
ensure growth pays for growth
• Help pay for the costs of:
– expanding and upgrading the
City’s transportation and utility
infrastructure; and,
– purchase and develop new
parkland in developing areas to
meet the needs of growth
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What are Development Cost Charges (DCCs)?
• DCC Approval requirements
– Council
– Province
• Regular Reviews
– Last update in 2010
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What works do DCCs pay for?
Infrastructure to support growth
including:
• Arterial road upgrades
• Intersection and traffic calming road
improvements
• Pedestrian and bicycle facilities
• Water mains and PRV stations
• Sewer mains and pump stations
• Drainage system improvements
• Parkland purchase and park development
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What items do DCCs not pay for?
• Operation and maintenance
activities
• New or upgraded works
needed for the existing
population
• New libraries, fire halls,
police stations, or parks and
recreation facilities
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Who pays DCCs?
Applicants for:
• Subdivision approval to create
single family development sites
• Building permits to construct
multi-family, commercial,
industrial and institutional
developments
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Why update the DCC rates?
• Last DCC review completed in 2009
• Official Community Plan and Employment Lands
Strategy
• Updated capital programs based on approved plans
• Increases in land prices and construction costs
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DCC Process
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Estimate Growth Projections
• OCP
• Employment Land Strategy Study
Determine Infrastructure Costs Attributed to Growth
• DCC Programs
• Benefit Factors
• Municipal Assist Factor
• Equivalent Units
Calculate DCC Rates
• Public consultation
• Council approval
• Ministry approval
• Bylaw Adoption
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DCC calculation
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DCC Recoverable
Costs Growth DCC Rate
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Growth
Official Community Plan
• Population projection of 280,000 by
2041
• Projected Residential Dwelling Unit
Growth to 2041
• Projected Industrial, Commercial,
Office and Institutional Floor Area
Growth to 2041 (Employment Lands
Strategy)
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Estimated Growth (2016-2041)
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Development Type Growth Projection*
Single Family 1,982 units
Townhouse 17,834 units
Apartment 19,091 units
Commercial/Institutional 590,445 m2
Light Industrial 390,862 m2
Heavy Industrial 13 hectares
*2041 OCP projection less growth to date
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DCC calculation
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DCC Recoverable
Costs Growth DCC Rate
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DCC Recoverable Costs
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Servicing Types DCC Recoverable
Costs
% of Total
Transportation $504,321,687 41.2%
Park Acquisition $248,120,966 20.3%
Park Development $178,383,901 14.6%
Drainage $167,383,669 13.7%
Sanitary $88,650,258 7.1%
Water $38,308,976 3.1%
Total $1,225,169,457
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Roads Program
• Providing new and
upgrading transportation
infrastructure including
arterial roads, traffic
signals, sidewalks and
pathways, crosswalks,
cycling and rolling
improvements, transit-
related road infrastructure
and traffic safety projects
• Key Projects
– Westminster Highway and
Willett Road (Hamilton)
– Enhancements to
neighbourhood centres to
better support walking, rolling
and cycling
– 16,000-block River Road
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Roads DCC Proposed Program (2016-2041)
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Park Acquisition Program
• Accommodate projected
growth to 2041 according
to the City’s standards for
the provision of parks and
open space
• City-wide standard:
– 7.66 acres/1,000 population
• City-centre standard:
– 3.25 acres/1,000 population
• Key Projects
– Various City-centre parkland
acquisitions
– Hamilton waterfront park
– Repayment of Garden City
Lands
– Land acquisitions for
neighbourhood parks,
community parks and trails
under the 2022 Parks and
Open Space Strategy
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Parkland Acquisition - by planning area
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Planning Area Acres by Park Type
DCC
Recoverable Cost Neighbourhood Community City-
Wide
Natural
Area
Blundell $ -
Bridgeport $ -
Broadmoor 0.9 $ 2,543,648
City Centre 5.12 1.887 169.45 $ 186,265,198
East Cambie 0.258 5.80 $ 2,383,227
East Richmond 79.06 $ 14,871,186
Fraser Lands $ -
Gilmore 19.78 $ 3,477,662
Hamilton 4.19 2.4 $ 12,554,097
Sea Island $ -
Seafair $ -
Shellmont $ -
Steveston $ -
Thompson 0.182 1.025 $ 4,159,322
West Cambie $ -
General 46.25 $ 21,866,626
Total 10.210 2.327 170.475 153.290 $ 248,120,966
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Park Development Program
To construct new parks and
to add new facilities to
existing parks required due
to growth
• Key Projects
– City Centre Middle Arm Park
– Garden City Lands
– Minoru Park
– City Centre Park
– Garry Point Park
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Parks Development – by planning area
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Planning Area Park Dev.
(acres)
DCC Recoverable Cost by Park Type Total DCC
Recoverable
Cost Neighbourhood Community City-Wide Natural Area Trail/
Greenway
Blundell 106.3 $2,198,677 $2,198,677
Bridgeport 10.35 $1,553,518 $1,553,518
Broadmoor 134.53 $1,462,966 $3,202,403 $4,665,369
City Centre 155.03 $4,453,268 $1,847,871 $89,253,449 $95,554,588
East Cambie 260.69 $68,092 $2,193,321 $4,002,768 $6,264,181
East Richmond 91.26 $2,896,740 $2,896,740
Fraser Lands 36.55 $245,612 $115,869 $361,481
Gilmore 94.42 $2,794,602 $2,794,602
Hamilton 79.93 $2,845,012 $881,719 $2,248,171 $372,438 $6,347,340
Sea Island 26.14 $983,462 $983,462
Seafair 91.93 $934,669 $1,489,752 $2,424,421
Shellmont 48.08 $777,605 $253,559 $2,139,638 $3,170,802
Steveston 193.43 $1,510,255 $1,692,900 $10,116,018 $13,319,173
Thompson 251.06 $4,894,550 $1,545,166 $771,210 $1,196,334 $8,407,260
West Cambie 30.62 $2,577,534 $176,626 $2,754,160
City-Wide Trails $5,878,127 $5,878,127
General $18,810,000 $18,810,000
Total 1,610.32 $23,276,146 $12,853,132 $121,847,417 $11,901,134 $8,506,072 $178,383,901
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Drainage Program
As population density
increases with
redevelopment, the
impervious land area
increases, thereby
increasing the amount of
surface runoff into the
drainage system. As such,
infrastructure with
increased capacity would
be required.
• Key Projects
– No. 3 Road box culvert
– No. 1 Road box culvert
– Gilbert Road box culvert
– No. 2 Road South Pump
Station capacity upgrade
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Sanitary Program
The sanitary sewer system
collects sewage from
properties and conveys it to
the wastewater treatment
plants. As population
density increases with
redevelopment, sewage
flow increases, thereby
requiring infrastructure
with increased capacity.
• Key Projects
– New pump station at
Lansdowne
– New pump station and
forcemain in Hamilton
– City Center gravity mains
– Pump station capacity
upgrades in various areas
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Water Program
• As population density
increases with
redevelopment, water
demand increases,
thereby requiring
infrastructure with
increased capacity.
• The program consists of
capacity upgrades for
watermains and pressure
reducing valve (PRV)
stations.
• Key Projects
– Westminster Hwy (No.4 Road
and Shell Road) watermain
upgrade
– Blundell Road watermain
upgrade
– Various PRV station upgrades
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DCC calculation
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DCC Recoverable
Costs Growth DCC Rate
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Proposed DCC Rates
- Increasing land costs
- Increasing construction costs
- Increasing servicing plan
- Decreasing growth projection
U
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Pre
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Proposed DCC Rates
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Current
DCC Rates
(2009)
Unit Proposed
DCC Rates
(2016)
%
Change
Annualized
Increase
(2010-2016)
Single Family $24,859.53 per lot $39,582.87 59% 6.9%
Townhouse $14.28 per ft2 $21.51 51% 6.0%
Apartment $15.09 per ft2 $22.67 50% 6.0%
Commercial $11.22 per ft2 $14.53 29% 3.8%
Light Industrial $8.96 per ft2 $11.33 26% 3.4%
Major Industrial $83,837.56 per acre $97,725.09 17% 2.2%
Average Increase 39%
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Single Family DCC Comparison
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Townhouse DCC Comparison
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Apartment DCC Comparison
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Commercial DCC Comparison
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$2.55
$5.58
$5.93
$14.53
$9.92 (phased rate, year 1 of 3)
$11.22
$12.96
$- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00
Delta (2013)
Coquitlam (2016)
Langley Township (2012)
Surrey (2016)
Richmond (Existing) (2010)
New Westminster (2016)
Richmond (2016proposed)
Commercial DCC Rates Comparison ($/ft2)
Water DCC
Sewer DCC
Roads DCC
Drainage DCC
Parkland DCC
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Light Industrial DCC Comparison
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$1.03
$1.87
$11.33
$3.25
$3.62 (phased rate, year 1 of 3)
$3.72
$8.96
$- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00
New Westminster (2016)
Delta (2013)
Coquitlam (2016)
Surrey (2016)
Langley Township (2012)
Richmond (Existing) (2010)
Richmond (2016 Proposed)
Light Industrial DCC Rates Comparison ($/ft2)
Water DCC
Sewer DCC
Roads DCC
Drainage DCC
Parkland DCC
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In-Stream Protection
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• One year protection from new DCC rates for in-stream
applications (complete subdivision and building permit
applications)
• For DCCs levied at building permit, applies to
“precursor applications” (complete rezoning and
development applications that will result in building
permit within year)
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Next Steps
• Finalize DCC program and rates
• Amended DCC Bylaw to Council for 3 readings
• Submit DCC Bylaw to the Ministry for comments
and approval
• DCC bylaw final reading
• DCC bylaw adoption (2017)
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