A voluntary levy to developers to pay for community infrastructure seems like a good idea on paper.
For citizens and council it could mean well-serviced neighbourhoods and for developers it makes good sense to offer an attractive product for homebuyers looking for amenities in their neighbourhoods. All three groups have a vested interest in having community infrastructure and should share in the costs.
Some developers, however, have raised the alarm saying that a voluntary levy in St. Albert might drive up prices and price some homebuyers out of this market. Ultimately these costs will be borne by home buyers. Sue Monson, regional manager for Melcor which is developing Jensen Lakes in St. Albert’s northwest quadrant, says that it could make homes here unaffordable, especially in today’s economy.
A voluntary levy could create an unequal playing field and put St. Albert at a disadvantage compared to other neighbouring communities that do not encourage voluntary levies.
St. Albert Coun. Tim Osborne has given notice of motion that, if passed, would generate a report to consider the concept of voluntary levies from developers for community service infrastructure like transit, recreation and police stations.
St. Albert once had a recreation levy to help pay for capital projects, but that changed in 2012 when the appeal court ruled that under the Municipal Government Act (MGA) municipalities could only collect levies for key infrastructure.
The MGA (Bill 20) is currently under review. Alberta cities and towns continue to lobby for changes to address infrastructure funding. In the interim, some communities are finding ways to work with developers to help pay for community service infrastructure.
Calgary has introduced a voluntary payment to support community service infrastructure. Kathy Dietrich, director of Calgary Growth Strategy, says that new offsite levies were approved by Calgary city council in January and include community service charges of $80,000 per hectare to help pay for fire halls, recreation and transit. The money goes toward capital, not operating, costs. The Calgary fees are voluntary, since the city cannot charge. She says developers want the same type of community facilities as the city does. So the city and developers are working together to try to create great communities. So far, Dietrich has not heard of any developers not paying the levy.
Osborne, meanwhile, said he wants to wait to see if his motion is successful before contacting St. Albert developers to get their feedback on the proposal. He said future conversations with developers could consider what is realistic and what is possible.
Every developer in St. Albert is aware of Osborne’s motion. Dietrich said that Calgary worked closely with industry for a year to engage them in a process that was transparent from the outset. St. Albert should be offering the same courtesy here. Better yet, why not wait for the MGA review to be completed and then, if levies remain a funding issue, broaden the conversation to include all communities in the metro region.
The bottom line is that developers want facilities in their communities as much as citizens and city councils do. Osborne is right to suggest that industry might help support community infrastructure that supports its developments. Any proposal, however, needs to keep a competitive playing field level.
