Industrial Exemption – Prior development charge bylaws provided full (100%) exemptions for industrial development from the payment of development charges. The DC Task Force and Administration recommends that this exemption should continue. The reason for this position is twofold. First, the legislation does not allow the collection of development charges on industrial expansions of 50% or less. Secondly, industrial facilities can locate in virtually any part of the world these days. The zero rated development charge for this class will help keep costs down for expansion of existing facilities that are above the 50% threshold and may help retain and attract new industrial development in the city. Revenue losses from industrial development charge exemptions will need to continue to be funded from the general property tax levy and user fees.
The Council approved DC rates should continue to be adjusted annually base on the CPI index - This will allow the DC revenues purchasing power to keep pace with the increasing costs of development expenditures. The adjustment date has been moved to November 1 st of each year to take advantage of the slower building activity during this time.
Risk Analysis:
Based on the impacts of the COVID pandemic, the current DC Bylaw expiry date has been deferred from May 31, 2020 to January 23, 2021. This is six months from the province lifting of the emergency order on July 23, 2020. The DCA requires a new DC Background Study every five years. By not completing a new Background Study and DC Bylaw, the City will not be able to collect DC Fees from new development after January 23, 2021 to fund this growth. Therefore, funding from other sources, including the Tax Levy, would be required.
Hiring Hemson Consulting to prepare a new DC Background Study and DC Bylaw significantly reduces the risk that the DC Bylaw will not be approved by January 23, 2021. It also ensures the DCA legislation is adhered to, mitigating the risk that the DC Bylaw will be challenged and appealed in the future.
Parking development charge rates will continue to be collected as per City’s DC by -law 60-2015 in addition to the newly calculated rates until the earlier of September 18, 2022 (2 years) or adoption of a Community Benefit Charges Bylaw.
Climate Change Risks
Climate Change Mitigation:
N/A
Climate Change Adaptation:
New construction will incorporate the latest building standards for improving residential and institutional structures to withstand extreme weather events. This is an essential strategy for climate change adaptation. It also results in lower utility bills and other related benefits.