With its $284 million infrastructure deficit in mind, the City of Prince Rupert intends to start charging land developers to compensate for the added strain their projects put on city infrastructure.
Because new developments put more demand on the sewer, water, drainage and road systems in the area they’re located, municipalities are allowed to establish development cost charges (DCCs) under the Local Government Act to help offset some of the costs incurred.
Richard Pucci, the city’s engineering coordinator, recently recommended city council establish DCCs as a way to generate revenue that could be used to address the municipality’s aging infrastructure.
The one-time fee is charged at a per unit or square metre rate on new residential, commercial, industrial and institutional developments and helps cover the costs of upgrading or providing city infrastructure services to the new development or levies developers acquiring or developing on park land.
Money obtained from DCCs can help pay for transportation, drainage, water and sanitary infrastructure, as well as parkland acquisition and development. Local governments can only spend DCC funds and any interest they earn on specific projects and services in the same category the money was collected from.
Council approved the first reading of a bylaw establishing a policy on DCCs on June 8.