A recent review of the City of Vernon Development Cost Charge (DCC) Bylaw has led to recommendations that could ultimately reduce DCC rates for new development.
The focus of the review was to confirm works required related to expected growth over the next 20 years. A number of proposed amendments were presented to Council at its Regular Meeting on September 3, 2019.
“These proposed amendments integrate Council directed and supported changes to other bylaws,” said Ed Stranks, manager of Engineering Development Services. “This is part of an overarching goal to improve sustainability for residents by effectively managing infrastructure and improve opportunities for growth in Vernon.”
The proposed changes to DCC Bylaw #5233 include:
- removal of projects that are no longer required;
- removal of projects beyond the 20 year scope of the bylaw;
- removal of completed projects;
- addition of new projects required to support growth in the next 20 years;
- changing from a long term ‘ultimate’ build out to a 20 year time frame; and
- update all project costs and benefit allocations as appropriate
DCC rates in Bylaw #5233 were based on a full build out projection population of an additional 16,577 units. In the proposed amendment, there is a 20 year residential growth projection of 5,471 units, creating a realistic shorter term for accountability and construction expectations.
The projects that have been proposed to be added include those that are necessary to provide improved transportation facilities and address drainage concerns in Vernon.
If approved by Council, the changes would result in a net overall reduction of approximately $103 million in DCC project costs.
The resulting total for single family lots in the City is a reduction from $16,429 to $13,766 (16.2% decrease) in Development Districts 1 and 2 and a reduction in Development District 3 from $21,182 to $20,692 (2.3% decrease). This does not include additional DCCs for RDNO Water and Parks, as well as the City of Vernon Parks DCC.
While the change in rates for Development District 3 is not as significant as that in 1 and 2, when compared to the cumulative inflation since 2010, rates are significantly reduced.
For comparison, DCC rates in other communities in the Thompson-Okanagan region as of June 2019 (for single family DCC) are as follows:
- Kelowna - $23,606 (core) to $41,125 (outer)
- West Kelowna - $21,669
- Penticton - $13,262 (core) to $17,458 (outer)
- Kamloops - $10,673
Residents, developers and consultants are invited to learn more about the proposed changes to the DCC bylaw at an open house on December 18. Comments received at the open house will be forwarded to Council for its consideration prior to adoption of the bylaw.
Date: Wednesday, December 18, 2019
Time: 5:00 – 7:00 pm
Location: Vernon City Hall, Council Chambers
3400 30 Street
For more information regarding DCC rates for the City of Vernon, please visit www.vernon.ca/DCC.
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