Development Cost Charges Update and Introduction of Amenity Cost Charges 2025

Update March 19, 2025: 

Staff presented the draft District of Squamish Amenity Cost Charge Bylaw No. 3120, 2024 to Council for consideration on Tuesday, March 18. Council directed the bylaw and policy back to staff to:

  1. Review and update the capital costs of the amenity project list.
  2. Update the Community Amenity Contribution policy to better reference and refer to the new Amenity Cost Charge bylaw and articulate how these interact together.

Staff are working to address councils comments and will bring the bylaw back at a later date

Update March 13, 2025:

Updates made to Development Cost Charges Background Study as of March 4, 2025 - DCC draft bylaw figures adjusted accordingly. 

Based on the recent legislative changes to the Local Government Act, highway facilities that are cost-shared between a local government and the Province can now be included in the development cost charge (DCC) calculation.  Given this change, the District had included projects in the proposed DCC bylaw related to Highway 99, which are anticipated to be cost-shared with the Province. Through ongoing discussions with the Ministry of Transportation and Infrastructure, it was confirmed that these costs cannot be included in the DCC until there is a specific cost-sharing agreement in place between the two parties.

DEVELOPMENT COST CHARGES

The District of Squamish is updating its Development Cost Charge (DCC) bylaw to allow the District to collect revenue that keeps pace with the increasing costs of infrastructure required to service community growth. DCC bylaws are typically updated every few years to keep up with changing growth patterns and increasing costs of infrastructure. The District of Squamish (District) DCC Bylaw was last reviewed and updated in 2022.

Development contributions through DCCs benefit the community by helping to fund infrastructure to ensure that existing taxpayers are not burdened with costs associated with the demands of new development. DCCs are governed by provincial legislation and can fund a very specific list of projects: sewer, water, drainage, parks and roads. Development Cost Charges (DCCs) are a provincially regulated cost-recovery tool used by the District to support financial sustainability and to adequately service the demands of new development which included new or expanded infrastructure such as such as sewer, water, drainage, parks and roads.

DCCs are charged on new developments, small and large, that involve:

  • Subdivision of property
  • Addition of new dwelling units
  • Expansion of commercial, industrial and institutional buildings

The District of Squamish’s Development Cost Charges are established by bylaw with the approval of the Inspector of Municipalities, and guided under the Local Government Act, Development Cost Charges Best Practices Guide, and the District’s Official Community Plan (OCP) and its suite of Master Plans.

View the current Development Cost Charge Bylaw No. 2911, 2022

AMENITY COST CHARGES

In 2023 the provincial government passed Bill 46, Housing Statutes (Development Financing) Amendment Act which introduced Amenity Cost Charges (ACCs) as a new growth-related capital financing tool under the Local Government Act, for amenities which cannot be recovered through DCCs. This tool is provided as an alternative to Community Amenity Contributions (CACs), which have been provided by developers through the rezoning negotiation process.

Prior to the implementation of ACCs through the enactment of Bill 46, CACs have been utilized by the District to recover capital costs related to community infrastructure from developers. These contributions have been established by District policy and are negotiated with developers on a case-by-case basis through the rezoning process. Amenities could either be offered directly in-kind or as a cash-in-lieu offer.

What can ACCs be used for?

An amenity includes a facility or feature that provides social, cultural heritage, recreational, or environmental benefits which include (but not limited to):

  • Community, youth or senior’s centre
  • Recreational or athletic facility
  • Library
  • Day care facility
  • Public square

Project Information

The District is undertaking a comprehensive review and update of the existing DCC Bylaw and associated financial model, and to develop a new ACC Bylaw in accordance with the applicable legislation. The draft DCC rates and new ACC rates will allow the District to collect revenue that more accurately reflects the costs of infrastructure and amenities required to service and grow the community.

The current calculations are based on draft capital project listings provided through new master planning on water and transportation which are not yet complete and will be updated following Council approval.

The 2025 DCC review includes the following components:

  • Current DCC policies
  • Legislative requirements, including recent amendments
  • Residential and non-residential growth forecasts for the District
  • Future capital requirements to service growth, including the related deductions and allocations;
  • Overall approach and calculation of the DCC;
  • DCC Revenue Forecasting
  • Policy recommendations

Through Bill 46, Housing Statutes (Development Financing) Amendment Act, 2023, the list of eligible services that can be included as part of the DCC calculation has been expanded:

  • Existing eligible services:
    • Sewage (included in DCC calculation)
    • Water (included in DCC calculation)
    • Drainage (included in DCC calculation)
    • Transportation (included in DCC calculation)
    • Parkland improvements (included in DCC calculation)
  • New eligible services: 
    • Fire
    • Police
    • Solid waste and recycling
    • Municipal portion of provincial highway facilities that are cost-shared with the Province (included in DCC calculation)

What about CACs? 

With the proposed introduction of ACCs, the CAC will no longer be in place for general amenities, parks, and active transportation. CACs will only remain for onsite affordable housing and childcare space.

New Rates

Draft DCC rates

The new draft rates provide a rate comparison of the existing DCCs, relative to the proposed preliminary DCC rates based on land use and type of development. These draft rates are currently subject to further review of calculation assumptions before presented to Council for adoption.

Land Use Unit 2022 DCC
Bylaw Totals
2025 DCC 
Bylaw Totals
Percent (%)
Change
Residential Single Family Low Density  per lot $21,616  $36,248 68%
Residential Single Family Small Lot  per lot $16,603 

$27,573

66%
Residential Medium Density (Townhouse)  per unit $10,747 $22,892 113% 
Residential High Density (Apartment) per unit $7,677  $18,801 145%
Commercial per m2 of GFA $117.64 $244.44 108%
Institutional per m2 of GFA $99.89 $120.59 121%
Industrial per m2 of GFA $78.88 $87.09 10%

Proposed ACC rates

The proposed ACC rates have been drafted in comparison with ACC rates for various land uses relative to other local governments as of January 2025.

Land Use Unit Proposed ACCs
Residential Single Family Low Density  per lot $17,365
Residential Single Family Small Lot  per lot $13,567
Residential Medium Density (Townhouse)  per unit $11,225
Residential High Density (Apartment) per unit $9,399

 

Next Steps

February– March 2025: The District of Squamish and consultant will undertake stakeholder consultation and amend DCC and ACC financial models and associated rates as needed.

The community is invited to submit their feedback regarding the draft bylaw to [email protected]

March 2025:

  • A final draft of DCC and ACC rates will be presented to Council for consideration of first three readings.
  • Following first three readings, the ACC draft bylaw will be considered for adoption by Council. 
  • Following first three readings, the DCC bylaw will be forwarded to the Province for approval.

May/June 2025: The draft DCC bylaw will be considered for adoption by Council.

WEBINAR: DCCs and ACCs: What are they and why do they matter?

FAQs

First reading of the draft bylaws is expected to take place at the Regular Meeting of the Council on March 18.

Comments and feedback will be accepted from the community until March 18.

Should the first three readings be completed by Council on March 18, the new bylaws should be expected for adoption by May/June 2025. 

The Local Government Act governs changes to bylaws for in-stream applications as per below:  

Effect of bylaws adopted after application for rezoning, development permit or building permit submitted

568   (1)In this section:

"in-stream" means not determined, rejected or withdrawn;

"precursor application" means, in relation to a building permit,

(a) the application for the issuance of the building permit, if the application has been submitted to a designated local government officer in a form satisfactory to the designated local government officer and the applicable fee has been paid,

(b) an application for the issuance of a development permit, if

(i) the application has been submitted to a designated local government officer in a form satisfactory to the designated local government officer and the applicable fee has been paid, and

(ii) the development authorized by the building permit is entirely within the area of land that is the subject of the application, or

(c) an application for an amendment to a zoning bylaw, if

(i) the application has been submitted in accordance with the applicable procedures under section 460 [development approval procedures] and the applicable fee has been paid, and

(ii) the development authorized by the building permit is entirely within the area of land to which the application relates.

(2) Subject to subsection (3), a development cost charge bylaw that would otherwise be applicable to the construction, alteration or extension of a building or structure has no effect with respect to that construction, alteration or extension if

(a) the building permit authorizing that construction, alteration or extension is issued within 12 months after the date the bylaw is adopted, and

(b) a precursor application to that building permit is in-stream on the date the bylaw is adopted.

(3) Subsection (2) does not apply if the applicant for that building permit agrees in writing that the development cost charge bylaw should have effect.

Effect of bylaws adopted after application for rezoning, development permit or building permit submitted

570.91   (1)In this section, "in-stream" and "precursor application" have the same meaning as in section 568 (1).

(2) An initial amenity cost charge bylaw that would otherwise be applicable to the construction, alteration or extension of a building or structure has no effect with respect to that construction, alteration or extension if a precursor application to the building permit authorizing that construction, alteration or extension is in-stream on the date the initial bylaw is adopted.

(3) Subject to subsection (4), an amended amenity cost charge bylaw that would otherwise be applicable to the construction, alteration or extension of a building or structure has no effect with respect to that construction, alteration or extension if

(a) the building permit authorizing that construction, alteration or extension is issued within 12 months, or any longer period prescribed by regulation, after the date the bylaw is amended, and

(b) a precursor application to that building permit is in-stream on the date the bylaw is amended.

(4) Subsection (3) does not apply if the applicant for that building permit agrees in writing that the amended amenity cost charge bylaw should have effect.

If the District has accepted and is processing a rezoning, development permit, or building permit application when a new DCC bylaw is adopted, the old DCC bylaw rates will apply to an in-stream application provided the Building Permit for the in-stream application is issued within 12 months of the adoption of the new DCC bylaw. 

ACCs will not be applicable to applications in-stream, provided the Building Permit for the in-stream application is issued within 12 months of the adoption of the new ACC bylaw.