Development Cost Charges

Development Cost Charges (DCCs) are fees collected from land developers to help fund growth-driven infrastructure and park improvements. They are a Provincially regulated tool under the Local Government Act that helps ensure new development contributes to the capital costs of infrastructure needed to support growth

• Transportation infrastructure
• Drainage infrastructure
• Sanitary sewer infrastructure
• Parkland acquisition and improvements
• Water infrastructure (collected by the District on behalf of the Capital Regional District)

DCCs cannot be used to fund:

• Infrastructure or parks needed solely for existing development (e.g., asset replacement)
• Utility service connections
• Operations and maintenance costs
• Vehicles and equipment
• Community facilities such as recreation centres, libraries, and fire halls

DCCs are payable by applicants/developers at the time of:

• Subdivision – approval to create new lots; or
• Building permit application – to construct:
  • Multi-family residential
  • Commercial, industrial, or institutional buildings
  • A single family dwelling on a lot created prior to July 11, 2005

In-Stream Application Protection

If a complete subdivision or building permit application is submitted prior to the adoption of a new DCC Bylaw, that application receives in-stream protection from rate increases for 12 months following adoption of the new bylaw.

Under the Town Centre Revitalization Bylaw No. 408, 2009, eligible development within the Town Centre Revitalization Area may qualify for:

• 30% DCC reduction for residential development with a density of at least 50 dwelling units per hectare
• Additional 30% reduction for qualifying “Green Projects”
• 100% DCC waiver for eligible housing projects (e.g., not-for-profit rental housing or other affordable housing subject to a housing agreement)

Please refer to Bylaw No. 408 for details on eligibility and requirements.

As described in the Development Cost Charge (DCC) Credit Policy No. CO-021, the District may provide a DCC credit to an Owner/Developer when they construct works identified in the DCC program as a condition of subdivision approval or building permit issuance.

Credits are applied based on the lesser of the actual cost of the constructed works or the value of the project as listed in the DCC Background Report. Credits are applied against DCCs owing for the same infrastructure category.

The most recent DCC rates are established in Development Cost Charges Bylaw No. 909 (775-01), and provided below for ease:

Residential development consisting of one or more single-detached dwellings built on separate parcels (excludes manufactured homes)

Residential development which includes attached dwellings and manufactured homes

Residential building which contains multiple dwelling units accessible via a common hallway or corridor and shared entrance facilities, includes apartment buildings

Commercial development in a commercial zone listed in the Zoning Bylaw or a similar development in another zone permitted in accordance with the Zoning Bylaw, in which the predominant use, as determined by its purpose and list of permitted uses, is of a commercial nature

Industrial development in a zone listed in the Zoning Bylaw, or similar development in another zone permitted in accordance with the Zoning Bylaw, in which the predominant use, as determined by its general purpose and list of permitted uses, is of an industrial nature

Institutional development in a public or institutional zone listed in the Zoning Bylaw or a similar development in another zone permitted in accordance with the Zoning Bylaw, in which the predominant use, as determined by its purpose and list of permitted uses, is of an institutional nature

Protection provided under provincial legislation that allows a complete development application submitted before the adoption of a new DCC bylaw to be subject to the existing DCC rates for a limited period of time.

The portion of an infrastructure project cost that is attributable to new development and is eligible to be recovered through Development Cost Charges.

The share of eligible infrastructure costs that may be funded through Development Cost Charges after accounting for grants, existing development benefit, and other funding sources.

A limited update to Development Cost Charge rates that reflects changes in construction costs, land values, or grant funding without changing growth projections or the list of eligible projects.

The total floor area of a building measured in accordance with the applicable bylaw, used to calculate Development Cost Charges for certain types of development.