CARM to lobby for phased-in DCC hikes
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Hey there, time traveller!
This article was published 11/12/2024 (280 days ago), so information in it may no longer be current.
Local developers and contractors working in the region met on Monday to discuss the proposed changes in the City of Brandon’s Development Cost Charges (DCCs) bylaw, which would result in them paying higher fees for developing in the city.
The meeting of the Construction Association of Rural Manitoba (CARM) saw 30 members weigh in on the proposed hikes.
CARM executive director Shawn Wood told the Sun on Tuesday that he will make it known that higher DCCs would mean more expensive housing in Brandon. He reiterated that the proposed increases to be levied on developers are too high, adding that he still hopes to convince the city to taper the proposed increases.
Development Cost Charges (DCCs) have triggered an ongoing debate in Brandon after a proposed increase in the rates applicable under the current city bylaw. Members of the construction industry and some of Brandon city council are seen on Monday at an open house held to discuss the rates. A public hearing to discuss the proposed changes in the city bylaw takes place next week. (Facebook/CARM)
“When you want to talk about affordable housing, increasing the development cost charges is not going to help that,” Wood said during a phone call on Tuesday morning. “It’s going to impact the existing houses, the existing multi-units that are out there.”
Wood added that pricier housing will further boost market rates in Brandon.
The proposed increases in the DCC fees — paid to the city by builders who want to develop a property in Brandon — have been in the works for several years and are set to go to a public hearing on Monday, Dec. 16. Wood said he is preparing for the hearing as another chance to argue that Brandon will see housing prices rise as a result of a “large increase” in fees for developers.
As reported by the Brandon Sun earlier, the city is proposing new DCC rates that include charges in emerging areas of $21,193 per unit for low-density residential projects, up from $8,184 per unit. For high-density projects, the city aims to ramp up rates to $15,660 per unit from $5,294 per unit. It has also proposed the rate per square foot for non-residential projects to be increased from $4.70 per square foot to $8.62 per square foot.
The hikes proposed in established areas are currently pegged at $12,805 per unit for low-density residential projects, a sharp increase from $911 per unit. High-density projects are set to see a similar steep appreciation from $589 per unit to $9,462 per unit. Per -square-foot rates for non-residential projects will also be raised from $0.53 per square foot to $5.21 per square foot.
Wood argued that these costs will eventually result in higher rental and purchase prices for consumers. More expensive builds, he said, will become more expensive rentals or purchase prices for residents.
Looking ahead at the public hearing next Monday, he said his hope is to have the fees lowered or the increases phased-in over time.
“The discussion now comes to council and the impacts to Brandon and the economy.”
City council has been in discussions with the association, and Wood said the mayor and councillors have been open to conversations along the way.
» cmcdowell@brandonsun.com, with files from Colin Slark