DCCs are fees collected from land developers to help fund the cost of new City infrastructure. Provincal lwamakers need to amend the legislation to allow municipalities to change the collection times of DCCs.

Delta council last week agreed to have staff conduct a financial analysis on delaying collection of all development cost charges (DCC) to time of issuance of occupancy permits instead of at time of a subdivision application or issuance of a building permit, depending on the land use category.

A motion put forward by Mayor George Harvie notes residential and commercial development activity has significantly stalled because of increases in prices for building materials, skilled labour, higher financing costs and scheduled increases to the City of Delta, Metro Vancouver and TransLink DCCs.

It also asks Housing Minister Ravi Kahlon to consider amendments to applicable legislation to allow local governments to consider changing the time for collections.

Harvie said the change is needed throughout the region to assist the development community to start building.

“What I’ve heard back from the development community is that this would be a game-changer for them, and at the same time not be a financial impact to the city,” he said.

Harvie added the change would not be any kind of subsidy but simply a change in process which would result in reducing “considerable impacts” having to borrow for DCCs before projects can get going.

Council last year approved increased Delta’s DCCs after a lengthy review to reflect new growth projections, development-driven infrastructure projects and current-day construction costs. The previous update was approved in 2017.

Meanwhile, Metro Vancouver is undertaking a review of its DCC program, looking into several areas.

The review is to include collaborating with the development industry, member jurisdictions and the province to explore options to mitigate any potential impacts of the DCC program on residential development, such as extended in-stream protection and the timing of DCC collection.

Source: Sandor Gyarmati Delta Optimist

Photo: Sandor Gyarmati