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Development Cost Charge Increases in City of Victoria
The Issue
Development Cost Charges (DCCs) continue to be a major addition
to the cost of home construction. This particular policy for
VREB arises out of a decision at City of Victoria Council in
2006 to consider raising their DCCs from $2.80 per sq. metre
to $23.18 per sq. metre in one year for commercial buildings.
The full policy paper produced by the City is found at
www.victoria.ca/common/pdfs/planning_bylaw0665_info.pdf
VREB Position
The VREB 2006 President, Scott Kendrew, wrote to the City on August
15, 2006 to advise against making the fee change in one year,
stating, “These increased fees immediately force a disproportionate
amount on new infrastructure costs onto owners of development
properties, driving up the cost of both commercial and residential
real estate for end users.”
Kendrew also pointed out that the VREB’s Commercial Division
thought that significant municipal infrastructure should be funded
through general tax collection to ensure that all property owners
share in improvement to the City’s benefit.
Update
The City of Victoria made the decision to increase DCCs at its
Council meeting of May 24, 2007 despite advice not to do so from
the VREB, the Canadian Home Builders Association, The Rental
Owners and Managers Society of British Columbia, The Urban Development
Institute and The Greater Victoria Chamber of Commerce
Ratification
Position ratified by the VREB Directors, September 2007.
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