Development charges on the way up

After years of review, Brandon City Council has raised some of its development cost charges (DCCs), passing the first of two bylaws to collect higher fees from developers that will be used to fund public infrastructure. Read this article for free: Already have an account? As we navigate through unprecedented times, our journalists are working harder than ever to bring you the latest local updates to keep you safe and informed. Now, more than ever, we need your support.

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After years of review, Brandon City Council has raised some of its development cost charges (DCCs), passing the first of two bylaws to collect higher fees from developers that will be used to fund public infrastructure. Read unlimited articles for free today: Already have an account? After years of review, Brandon City Council has raised some of its development cost charges (DCCs), passing the first of two bylaws to collect higher fees from developers that will be used to fund public infrastructure. Adopted by council Monday, increased DCC rates for transportation and land drainage network infrastructure will take effect on June 6.

DCC increases for water and wastewater services are expected to be voted on at the next council meeting on April 22. Brandon City Council has raised some of its development cost charges and is set to raise more. (Tim Smith/The Brandon Sun files)Adopted by council Monday, increased DCC rates for transportation and land drainage network infrastructure will take effect on June 6.

DCC increases for water and wastewater services are expected to be voted on at the next council meeting on April 22. (Tim Smith/The Brandon Sun files) Monday’s vote marks a milestone in the city’s quest to find more revenue from developers and shift the burden of infrastructure costs away from ratepayers. The lion’s share of impacts on developers, however, are yet to be confirmed, as the biggest changes to DCCs are written into the second bylaw.

If the second bylaw is passed without changes, DCC rates would increase in emerging areas to $21,193 per unit for low-density residential projects from the current rate of $8,184 per unit. For high-density projects, DCC rates would ramp up to $15,660 per unit from $5,294 per unit. As well, DCC rates per square foot for non-residential projects would increase from $4.

70 to $8.62. Increased DCC rates in established areas would shoot up to $12,805 per unit for low-density residential projects, a sharp rise from $911 per unit.

High-density projects are set to see a similar steep jump, from $589 per unit to $9,462 per unit. Per-square-foot rates for non-residential projects would be raised from $0.53 per square foot to $5.

21 per square foot. When the second bylaw comes before council, administration will recommend that high-density projects like apartment buildings don’t see the increase all at once, but that instead it will be phased in over three years. Shawn Wood, executive director of the Construction Association of Rural Manitoba, told the Sun that the industry was pushing for a five-year phased approach.

He said that while it’s good news that the city is now considering a compromise, there’s still a problem. “We’re happy to see that the city was willing to move on it (but) we’re not happy with the rate overall,” Wood said. “Whether it’s a five-year or three-year phase, the fact is that the dollar figure hasn’t changed.

We think it’s unfair.” In a previous interview with the Sun, Wood said some high-density projects in town would see an additional $500,000 to $1 million cost because of the charges the city was proposing. If nothing changes, those costs would still become a reality after the three-year phase-in.

Evan Keller, president of Keller Developments in Brandon, told the Sun earlier this year that the figures without changes would “kill” housing projects that have already been planned for Brandon. The rates would make projects financially unattractive and force developers to walk away. The new bylaws come before council after many months of discussion between the city and local developers.

Mayor Jeff Fawcett previously told the Sun that the phased-in approach was a way to keep it as attractive as possible for developers to build high-density projects in Brandon. He said council was balancing the need for high-density housing with the need to collect appropriate fees from developers to keep infrastructure sustainable. If council adopts the second bylaw, the entire process of updating DCC rates may take around a year to conclude, Fawcett told the Sun Wednesday.

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