Editor, The News:
Re: Letter: Council could be hurting downtown development.
Maple Ridge is a growing community and, like all municipalities, relies on development cost charges to pay for the infrastructure needed to support growth.
The last major amendment to the city’s DCC bylaw was over 10 years ago. Rates were last adjusted in 2011.
Since that time, a number of things have changed:
• the cost of land has increased significantly;
• the capital program has been updated to reflect updated infrastructure plans;
• development assumptions have been updated.
As a result, updating the DCC bylaw to align with this new information and to reflect current costs was long overdue.
Not doing so would result in an insufficient amount of DCCs to fund the necessary infrastructure.
This would put additional pressure on property taxes to fund infrastructure associated with development.
The methodology for calculating DCC rates is relatively simple – the estimated costs of the infrastructures needed to build-out is divided by the expected development.
This is why it is difficult to compare DCC rates between communities as each municipality has its own infrastructure needs and expected growth.
Once again, the important point to keep in mind is that without DCCs, the infrastructure required to support development will either not get built, or alternatively, be a cost burden on general taxpayers.
The ‘property tax rates for the commercial classes are higher than those for residential so more of the burden would then fall to businesses.
In Michael Morden’s letter, it appears that the comparison on the 1,400-square-foot townhouse in the infill area is compared to the growth area. I would suggest that this is not an ‘apples to apples’ comparison.
Further, the analysis for the 1,100-square-foot unit appears to be incorrect as that size apartment would not attract the maximum rate.
I would also like to advise that in developing this bylaw, we sought and received feedback from the development community and it was incorporated into the bylaw.
The bylaw is now with the ministry for review prior to adoption.
Mr. Morden also had some comments with respect to the community amenity charges program, and I would also like to offer some comments on it.
This program was introduced in 2016 following consultation with the development community.
Development in the town centre was exempted.
Council recently eliminated this exemption in recognition that it had run its course and because the significant developments in the area would raise the need for amenities in the town centre.
In the absence of the CACs, the only funding source for these amenities would be property taxes.
CACs provide the city with a source of funding to pay for infrastructure that DCCs cannot, and have been implemented in a number of communities.
Synthetic sports fields are an example of infrastructure that will be paid for through CACs and cannot be paid for from DCCs.
He also references council’s incentive programs in the town centre. These programs were designed to be in effect for a limited time duration and the elimination of the programs is in alignment with that intent.
The city recently received an award from NAIOP, the Commercial Real Estate Development Association, recognizing Maple Ridge as one of the most business friendly cities in the Lower Mainland.
The association also conducted a survey of development fees charged in 18 Lower Mainland communities for industrial/commercial development. Fees in Maple Ridge were the lowest of the communities surveyed.
Fees in Maple Ridge were also the lowest when the survey was last conducted in 2015.
Mr. Morden made about the revenues that are reported in our financial reports.
As he is aware, the financial statements are prepared according to accounting standards. Under these guidelines, DCCs are classified as restricted revenue and are recorded as a liability when they are collected.
It is when the infrastructure is constructed or parkland purchased that the liability is reduced and the amounts recognized as development revenue. Consequently, it is not possible to reach conclusions about development activity from looking at the amount of development revenue recognized in the statements as there is no connection between the two.
Coun. Gordy Robson
Maple Ridge
Editor’s note: Michael Morden is
president of the Chamber of
Commerce serving Maple Ridge and Pitt Meadows, and a former Maple Ridge councillor who ran for mayor in the last municipal election.