CALGARY, ALTA. – Calgary City Council has approved an updated off-site levies bylaw.
Off-site levies are a funding tool developers pay to support growth when redeveloping existing communities or building new ones.
“The approval of the Off-Site Levies Bylaw marks a significant milestone for our city. Levies are the most effective funding mechanism available to ensure that the city can build the essential infrastructure required to support the development of homes and businesses,” City of Calgary director of city and regional planning Josh White said in a press release.
The bylaw comes into effect on March 1 and will see an eight per cent increase to the off-site levy rate from $564,000 per hectare to $609,000 per hectare.
The average levy cost per housing unit under the new bylaw is $22,600, an increase of approximately $1,700 per housing unit, the City of Calgary release said.
“This increase will contribute to the initial expenses of crucial infrastructure, such as water pipes, roads for transit and community access, and emergency service stations to name a few,” the release added.
The updated bylaw is the result of collaboration between city officials, the development industry, interested parties and the public and “ensures that the off-site levy rates are current and reflect changes in inflation, net new projects, construction costs, and borrowing expenses,” City of Calgary co-ordinator of growth strategies Jennifer Black said.
“We appreciate the collaborative efforts of all parties in shaping this bylaw, and we are confident it will contribute to the positive growth and development of our community. The bylaw features a levy rate calculation that is easier to understand and accurately reflects the cost of the 10 essentials needed to unlock the development of new homes and businesses. As more people choose to call Calgary home, this new bylaw will ensure that growth is paying for its share of growth so that The city can build complete communities where families can thrive.”
More information on off-site levies is available here.