Attachment 1: Community Amenity Contribution Backgrounder
Briefing document explaining CACs and comparing rates across other CRD municipalities.
Community Amenity Contribution Policy FAQs
- What is a Community Amenity Contribution?
- Why should a policy be considered?
- Which municipalities in the CRD have a Community Amenity Contribution Policy?
- What types of rezonings do other municipalities in the region CAC policies apply to?
- Which municipalities have Affordable Housing Funds and/or a General Community Amenity Fund?
1. What is a Community Amenity Contribution?
Community Amenity Contributions are voluntary amenity contributions intended to benefit the local or greater community. They are negotiated and agreed to by a development proponent and the local government as part of the general consideration of a rezoning application. It should be noted that approval of a rezoning should not be based on the provision of amenities because there is no legislative authority to require them (s.462 (6) LGA). CACs can take several forms, including the provision of capital improvements (parks, public art, etc.), affordable housing and/or financial contributions that can accumulate to fund larger/future amenities.
There is currently one specific policy regarding CACs in Official Community Plan Bylaw No. 811, 2011:
Policy HS1.4 Housing Amenity Contributions Ensure that any proposed multi-unit residential development requiring a rezoning provides a “housing amenity” contribution to the Town, which could be directed to the Regional Housing Trust Fund as part of the Town’s annual contribution.
2. Why should a policy be considered?
To address certain impacts of new growth, the Local Government Act (LGA) already provides a variety of tools that enables local governments to require services, collect fees and/or obtain land from new development, including: Development Cost Charges, school site acquisition fees, excess capacity or extended services, park dedication from subdivision; and road dedication.
However, growth can lead to demand for additional community amenities not provided for under these legislative provisions. The rezoning process can include consideration for community amenities through density bonus zoning and CACs. Certain zones in Zoning Bylaw 900, 2014 include density bonuses in a set amount for the provision of different amenities or features such as green roofs, underground parking, green space, and streetscape improvements that exceed bylaw standards.
Table 1. Estimated Community Amenity Contributions and Amount per Unit
| Project | Amenity | Total Units | Amount per Unit | Estimated amenity value |
|---|---|---|---|---|
| Christie Point 2861 Craigowan Road July 2017 | CRD Regional 1. Affordable Housing Trust Fund 2. Tenant relocation support package 3. Transportation improvements |
~473 | $5,180 | 1. $750,000 2. $850,000 3. +$775,000 $2,375,000 |
| Thetis Lake Campground 1938 West Park Lane | 5.12 ha Mill Hill parcel | ~350 | $3,080- $7,142 | $1,078,000 Assessed value ($2,500,000 Purchase price) |
| Avanti townhouses 1342 Trans Canada Highway (St. Giles St.) | Park improvement contribution 82m walkway Road and drainage improvements |
22 | $6,912 | $15,000 $22,000 +$115,070 $152,070 |
| 4 Mile Estates townhouses 235 Island Highway | Park improvement contribution | 24 | $1,500 | $36,000 |
| “Glentana apartment” 105-108 Glentana Rd | 260m trail with vehicle access and some fencing | 46 | $544 | $25,000 |
| Eagle Creek Village 33 Helmcken Road All phases Comm. + Res. | Financial contribution Park land (assessed value) Trail including footbridge |
33,588 m² | $61.35/m² | $1,000,000 $853,000 +$207,600 $2,060,600 |
| 242-244 Island Highway | Cash | 37 | $750 | $27,750 |
These figures indicate that the Town is receiving inconsistent amenity contribution amounts. In general, there are relatively more CACs per unit from larger or controversial projects. There could be several reasons why, including:
- With increased density, there is increased demand for amenities (e.g. Vancouver False Creek)
- Larger or controversial projects may have more significant community impacts and can be balanced with a higher level of CACs.
- Smaller projects have less economies of scale in construction costs and therefore relatively less margin to provide CACs.
3. Which municipalities in the CRD have a Community Amenity Contribution Policy?
| Municipality | CAC Policy? | Date | Target Rate |
|---|---|---|---|
| Central Saanich | Yes | 2017 | $7500 Per unit/lot or equivalent/m² GFA of non-residential use |
| Colwood | Yes Under review | Pre 2013 | $2000-2500/unit plus: housing agreement for 1 in 10 units to be affordable housing or contribution (under review) |
| Esquimalt | No | ||
| Highlands | Yes | 2011 | No target rate |
| Langford | Yes Recently amended | 2018 | $4800-$7000 per SFD (depending on location) $2135-$4270 MF unit (depending on location) reduced for market housing over five storeys and for all non market housing Plus $10.75/m² Commercial in Downtown/City Centre |
| (plus: housing agreement for 1 in 10 units to be affordable housing) | |||
| Metchosin | No | ||
| North Saanich | Yes | 2013 | $16,000/lot; $9,500/townhouse unit; $8,000/ apartment unit |
| Oak Bay | In process | In process | $6000 single family, $4500 duplex, $4000 multifamily, $30/m² commercial |
| Saanich | No, but researching | ||
| Sidney | Yes | 2017 | $150/m² GFA above base density |
| Sooke | No | Repealed 2017: $5000/unit ($2500/unit in Town Centre) | |
| Victoria | Yes Under review | 2016 | $53.82/m² Urban Residential / Large Urban Village $129.17/m² Core Residential/Business (<2787m²) 75% of the land lift through economic analysis for Town Centre and rest of Core |
Comments:
- The scope of research and comparison was focused on establishing targets in keeping with other municipalities in the CRD.
- Sidney and Victoria use the density bonus provisions of s. 482 LGA that permit additional density for the provision of amenities, affordable housing and special needs housing
- Colwood and Langford have inclusionary housing policies; i.e. for affordable units to be provided on-site within a prosed development to avoid segregation. Victoria is prioritizing inclusionary housing in a proposed new Inclusive Housing and Bonus Density Policy anticipated for March 2019.
- The CACs for North Saanich appears high at $16,000 per lot but this is because the District does not have a Development Cost Charge bylaw (except for CRD water).
4. What types of rezonings do other municipalities in the region CAC policies apply to?
| Municipality | Rezoning type |
|---|---|
| Central Saanich | Residential, Commercial and/or Industrial |
| Colwood | Yes |
| Langford | Yes |
| North Saanich | Yes |
| Sidney | Yes (downtown) |
| Victoria | Yes – existing and proposed policy |
What are the approaches to calculating CAC amounts?
The two main approaches to determiner CAC amounts are target rates and land lift analyses.
Target rates are typically based on an amount for different for types of development (per detached dwelling, per multifamily dwelling, or for non-residential use, per amount of floor area). The benefit of target rates are that that they are simple to understand.
Land lift analyses are typically conducted by third party experts in property valuation who can estimate the value of land before and after rezoning. The increase is called the land lift and can be considered a windfall gain the property owner. The benefit is that the rationalized approach and can take site specific circumstances into account.
- Take time prepare and review
- Involve costs to conduct
- Like real estate appraisals, sometimes a second or third opinion may be necessary to find agreement on results
- There can be instances where the lift can be low or even zero, i.e. the Consequently, land lift analyses are more suited o large developments.
5. Which municipalities have Affordable Housing Funds and/or a General Community Amenity Fund?
| Municipality | Affordable Housing Reserve Fund | General Community Amenity Reserve Fund |
|---|---|---|
| Central Saanich | Yes | Yes |
| Colwood | Yes | ? |
| Langford | Yes | Yes |
| North Saanich | ? | Yes |
| Sidney | Yes | Yes |
| Victoria | Yes | Yes |
In accordance with Official Community Plan Bylaw No. 811, 2011 Policy HS1.4 the Town has transferred financial contributions for affordable housing to the CRD Regional Housing Trust Fund because the CRD is able to leverage funds and because it would take a long time to accrue a meaningful amount of funds for a Town project, partnership or grant.
The Town does not have a general community amenity reserve fund for financial community amenity contributions. To avoid the creation of overlapping reserve funds, the policy supports current practices where contributions are tracked as deposits for a specific purpose (e.g. playground equipment at Portage Park) or directed to an existing capital reserve fund.