Homebuilders in West Kelowna face new fees to help the city pay for recreation centres, daycares, libraries and seniors activity centres.听
The so-called 鈥榓menity cost charges鈥 would provide a significant new revenue stream for the municipality but they could also increase the cost of new housing.听
The NDP government has passed legislation this year allowing towns and cities to expand the scope of such charges, which typically have been used to pay for new roads, utilities, and parks.听
At Tuesday鈥檚 council meeting, municipal staff were to recommend that the city pay Urban Systems, a consultancy, approximately $50,000 to prepare a report on how the amenity cost charges might be implemented in West Kelowna.听
鈥淚ntroducing ACCs allows local governments to collect funds for amenities, such as community or seniors鈥 centres, recreation centres, daycares, and libraries from new developments that results in increased population and workers,鈥 reads part of a staff report to council.听
鈥淎CCs are designed to assist local governments finance the cost of amenities that provide social, cultural, heritage, recreational, or environmental benefits to the community,鈥 the report states.听
But according to the provincial directive given to municipalities, towns and cities must do an assessment on whether the ACCs 鈥渨ould deter development or discourage the (provision) of reasonably priced housing,鈥 the report states.听
Cities considering ACCs must conduct a 鈥渇inancial feasibility analysis鈥 on the proposed charges, which would consider such things as the impact of the new fees (the exact amount of which are still to be determined), and the local housing market and land supply.
Builders of non-profit housing complexes, emergency shelters, and houses of worship would not be subject to the ACCs.听
Before the city can adopt the ACCs, some form of consultation, with both the public and interested parties such as the construction industry, is required, per the provincial directive. But the enthusiasm of city staff for the ACCs is made clear in the report to council.听
鈥淚mplementation of the program as soon as possible will support new growth, ensuring development funds their share of amenities to serve growth, which will mitigate costs to existing taxpayers,鈥 says the report, written by long-range planner Brittany Nichols.听
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