Letter dated April 12, 2018 from Min. S. Robinson Re: Development Cost Charges on New Developments

April 12, 2018

Ref: 234552

Mary Marcotte, President Association of Vancouver Island and Coastal Communities 525 Government St Victoria BC V8V 0A8

Dear Ms. Marcotte:

Thank you for your letter regarding the possibility of imposing Development Cost Charges (DCCs) on new developments to recover a portion of the capital costs associated with renewing the E&N Transportation Corridor. I apologize for the delay in responding.

The Province of British Columbia is not currently considering the possibility of expanding the scope of DCCs to include something as broad as inter-regional rail.

As I am sure you can appreciate, renewing the E&N Transportation Corridor to an appropriate standard for passenger trains will be a significant capital undertaking involving upgrades to nearly 300 km of track and approximately 50 bridges and trestles. In addition, it will require the acquisition costs of new trains and passenger cars, the construction and restoration of stations, terminals and other structures, and the ongoing operation, maintenance, and capital replacement of the system. Even if development financing tools such as DCCs were applicable, they would be a relatively modest component of total costs associated with bringing the system back into full operation.

A focus on DCCs for inter-regional rail may also be somewhat premature. The Province recommends that the Association of Vancouver Island and Coastal Communities and the Island Corridor Foundation undertake a long-term strategic plan for the sustained governance, ownership, financing, construction and operation of the system (including secured sources of financing for capital and ongoing operations).

I encourage the local government and First Nations members of the Island Corridor Foundation to build upon some of the previous financial, engineering, and governance studies/plans to develop a long-term strategy for the line and to secure a broad base of local financing for the construction and operation of the system.

Thank you again for writing.

Sincerely,

Selina Robinson Minister

pc: Honourable Claire Trevena Minister of Transportation and Infrastructure