Update on Development Cost Charges (DCC)

Posted bygellatlybaycommunityPosted inCity of West Kelowna Initiatives, OurWK - Feedback on West Kelowna's Draft Vision

There are several important city initiatives commencing that are extremely significant to the citizens of West Kelowna, and in particular, our GBGPCA and our members.

  1. Official Community Plan (OCP)
  • The OCP is very important because it is designed to give guidance and directions to citizens and developers on how our city and communities will grow
  • GBGPCA was asked on June 2 to participate in on online meeting with the city on June 8
  • We will be giving you updates very shortly on that initiative
  1. Development Cost Charges (DCC)
  • The city commenced a process to amend the current bylaw and GBGPCA intends on being a participant in the amendment process.
  • This is very important as the bylaw determines how much developers must contribute towards certain infrastructure that will be required for the growth.

What are development cost charges?

Development cost charges is the amount the city collects from developers to pay for capital projects that will be required as part of the growth. For example, roads, sewers, drainage, water, and parks. It is not used to pay ongoing maintenance nor for the development of certain buildings such as pools or firehalls.

Why should you be concerned?

It is apparent the current DCC is inadequate and needs to be increased. Simply put, when your DCC rate is low, the developer PAYS LESS, the existing residents PAY MORE to develop the infrastructure that the new growth will require.

On May 18, 2021 a registered planner gave a very well done and informative presentation to city council, explaining the various components that make up the DCC, and in particular set out the current rates being charged by municipalities in British Columbia, and in particular our neighbouring Okanagan Communities. A link to the presentation follows:

May 18, 2021 Committee of the Whole – West Kelowna, BC (swagit.com) item 8.8.2

It is under an hour long, and if you have the time, please watch it as it is informative, and perhaps helps us to understand why West Kelowna’s infrastructure is currently lacking. The presentation is also of interest as the comments of our city council provides an insight as to their views relating to this issue. The presentation also compares West Kelowna’s DCC rates with other communities, including Kelowna which has a much higher DCC. From the comments from our city council there are many positives that are encouraging, but there are also some concerns.

Good News

It appears that all members of city council agree that the current DCC rate is inadequate and that it needs to be increased. There also appears to be a general consensus that, given the current economic and development climate, there is motivation to collect higher amounts as the market can bear it.

The important issue for the GBGPCA is to advocate that the rate moves to a level where, “GROWTH PAYS FOR GROWTH”. 

Bad News

Comments made by Councillor Johnston raise a great concern for us. The DCC amendment process will probably be completed by the end of 2021. Any application made up to the actual date of the amendment will be able to proceed at the lower, inadequate rate and the applicant will have one year to complete their application. Any application made after the amendment date will proceed at the new, and hopefully higher rate.

Councillor Johnston, during the presentation, “ENCOURAGES” developers to get as many applications in as soon as possible so that the developer can avoid paying the higher and appropriate DCC. Further, Councillor Johnston asked that city planning be in a position to meet the needs of the developers in getting their applications in prior to the increase.

WHAT DOES THIS MEAN TO YOU?

The current low DCC and the push to get as many developments in as possible at the lower rate means one of two things. 

  1. We, as citizens of West Kelowna, will pay out of our pockets for the cost of the increased infrastructure that the developments will require, and the money that we pay will effectively go into the developers’ pockets. OR
  2. The necessary infrastructure that we require simply will not get built because there is not enough money for it. We can see the results of that today as West Kelowna has inadequate roads, sidewalks, sewer and in particular inadequate parks.

In conclusion, GBGPCA will be advocating for changes to the DCC bylaw that will ensure that, “Growth Pays For Growth”, not placing the burden on us, the current taxpayers.

What can you do?

We will be updating you regularly on any developments, and when appropriate will encourage your participation in the process for public input, letters, and perhaps even phone calls.

YOU HAVE A VOICE! 

Please use it.