City Council Approves Updated Off-site Levies Bylaw to Support the Development Industry and Growth-Related Infrastructure
Today, City Council approved an updated Off-Site Levies Bylaw, an important measure to support local development and fund growth-related infrastructure required to meet the needs of Calgary’s growing population.
"The approval of the Off-Site Levies Bylaw marks a significant milestone for our city," says Josh White, Director of City & Regional Planning. “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.”
An off-site levy is a key funding tool that developers pay to support growth in our city when redeveloping existing communities and building new ones. Levies play a vital role in financing essential services for every home and business in Calgary. These services range from providing running water and timely fire response to ensuring flushing toilets and reliable transit options.
Jennifer Black, Coordinator, Growth Financial Strategies, says the updated bylaw is the result of extensive 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.
“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,” says Black. "The bylaw features a levy rate calculation that is easier to understand and accurately reflects the cost of the ten 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.”
The bylaw will come into effect on March 1, 2024, and will see an 8% increase to the off-site levy rate, from $564,000 per hectare to $609,0000 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. 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.
More information on off-site levies is available on calgary.ca/offsitelevy.
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