welcome to the webinar - british columbia · intergovernmental relations and planning branch...
TRANSCRIPT
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Webinar #1 in the 2014 Webinar Series Date: Thursday June 19, 2014
Finding the Right Balance:
Community Amenity Contributions and Affordable Housing
Future Webinars in 2014 Series Affordable Market Housing in Communities Experiencing Industrial Growth (Focus on North) Webinar 2: Thursday October 2, 2014 – 1:30 p.m. Rental Renaissance: How to Support a Flourishing Rental Housing Sector in Your Community Webinar 3: Thursday October 23, 2014 – 1:30 p.m. When the Going is Tough: Ideas for Finding Neighbourhood Support for Affordable Market Housing and Densification Webinar 4: Thursday November 27, 2014 – 1:30 p.m.
Quick Poll
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Lois-Leah Goodwin
• Executive Director, Intergovernmental Relations and Planning Branch
• Ministry of Community, Sport and Cultural Development
Community Amenity Contributions:
Balancing Community Planning, Public Benefits and Housing Affordability
Lois-Leah Goodwin Executive Director, Local Government Division
Ministry of Community, Sport and Cultural Development
Why we care about CACs
• Help local governments to avoid legal risk
• Want to see practices that support good planning and don’t undermine public confidence
• Housing affordability
Speaking the same language
• Amenity contributions
• Community amenity fees
• Voluntary contributions
• Zoning-based contributions
• Bonus density zoning
• Community amenity contributions (CACs)
CACs vs. density bonus zoning
• CACs – typically negotiated before the adoption of a zoning bylaw
• Density bonus zoning – typically set out in a zoning bylaw with related conditions/amenities
Summary of recommended practices
1. Avoid legal risk
2. Plan ahead
3. Seek modest contributions
4. Apply DCC principles
5. Engage the development community
Legal Considerations
• No express authority
• Discretionary authority through rezoning
• Can’t impose or require a CAC (LGA s. 931(6))
A local government, the City of Vancouver or an approving officer must not (a) impose a fee, charge or tax, or (b) require a work or service to be provided
unless authorized by this Act, by another Act or by a bylaw made under the authority of this Act or another Act.
“Target” Approach
• CACs must be negotiated
• Establish needed amenities up front
• Determine what contributions local government wants to negotiate = set pre-determined targets
• Provides certainty and is legal when negotiated
Avoiding Legal Risk
• Councils and Boards must keep an open mind, and not commit to passing a rezoning
• Avoid using technical approval processes (building inspection, subdivision approval) to obtain CACs
CACs – A Double Edged Sword
• CACs can help to implement plans…but can undermine good planning
• Zoning is intended as a means to implement a community plan…..local governments should not focus on rezoning as a revenue source
Recommended practices for CACs
• Plan ahead for amenities in OCPs
• Nexus, proportionality
• Transparency
• CACs for capital not operating costs
Affordability by design…increasing housing supply • Apply no-cost affordability by design measures
before seeking CACs for affordable housing
• Zoning to reduce costs of producing housing
• small lots, reduced setbacks, suites/laneway houses
• Density bonus
Supply, supply, supply
• Plans, regulations, policies provide for plenty of housing
• Incentives – density bonus, fast-tracked approvals, pre-zoned land
• Avoid creating disincentives – land owners unwilling to sell to developers
Impact of CACs on price developer can pay for land
Impact of CACs on housing prices
Contrasting scenarios
A. A vacant, low density commercial site, owners motivated to sell
B. An established residential area, homeowners reluctant to sell, community plan calls for higher density
Common approaches currently used to obtain CACs
1. Density bonus zoning
2. Pre-determined targets
3. Negotiating CACs based on “lift”
Recommended approach for obtaining CACs
1. Use density bonus zoning as a starting point
2. Plan ahead, set targets, and keep them modest
3. Avoid the “lift” approach
Thank You
Website: http://www.cscd.gov.bc.ca/lgd/
Ministry of Community, Sport and Cultural Development
Jim McIntyre
• General Manager, Planning and Development
• City of Coquitlam
City of Coquitlam Density Bonus and Community
Amenity Contribution (CAC) Programs
June 19, 2014 – for The Ministry of Jobs, Tourism and Skills Training
Economic Development Division Webinar
Affordable Market Housing Webinar Series
Overview
City of Coquitlam Density Bonus and
Community Amenity Contribution (CAC)
Programs
• Coquitlam context
• High growth community
• Growth financing overview
• Coquitlam density bonusing program
• Coquitlam Community Amenity Contributions (CAC)
program
Coquitlam in the region
Coquitlam in the region
A unique growth context
Evergreen
Line growth
areas
A unique growth context
City Centre
2011
Population –
8,000
Lougheed
Neighbourhood
2011 Population –
6,700
Burquitlam
Neighbourhood
2011 Population –
9,700
Coquitlam – A high growth community
A rapidly growing and diversifying community
• 2013 population – 138,722
• 2041 projected population -224,000
• 85,278 more people
• 42,800 more jobs
Coquitlam – growth context
Urban growth – along new Evergreen Line
• 41,000 new residents by 2041
• 44% of total growth
2041 projected population by area
• City Centre = 27,200 more people, 12,900 more jobs
• Lougheed = 5,800 more people, 2,900 more jobs
• Burquitlam = 7,800 more people, 2,400 more jobs
Evergreen Line and shaping growth
Transit Oriented Development Strategy (TOD)
• Adopted by Council on July 30, 2012
• Aligned with existing OCP policies and guides new development
along the Evergreen Line
• Divided into three sectors:
• Core (400 metres from a station)
• Shoulder (within 400 & 800 metres of a station)
• Transit Corridor (between stations)
Evergreen Line and shaping growth
‘Create Great Places’ – a key TDS objective
• Provide amenities, improved streetscapes and public places in
high density station areas
• Supports safe, walkable, and livable neighbourhoods
• Potential, partial funding by:
• density bonusing contributions
• Community Amenity Contributions (CACs)
‘Create Great Places’
Local Government financing choices
COST RECOVERY
TOOLS SOURCES OF
CAPITAL
DEVELOPMENT-BUILD
AGREEMENTS
PARTNERSHIP
AGREEMENTS
Short-tern
Borrowing
Long-tern
Borrowing
Local
Improvement
Fees &
Charges
DCCs Specified
Area
Latecomer
Charges Development
Works
Agreements Comprehensive
Development
Agreements
Density
Bonusing
DCC
Credits &
Rebates
Public-Private
Partnerships
Public-Public
Partnerships
Other
Agreements
Reserves
Zoning for amenities and affordable
housing
Regulated under Sections 904
LGA
• A zoning bylaw may establish
conditions that will entitle an
owner to a higher density
• Conditions:
• conservation or provision of
amenities
• provisions for affordable and
special needs housing
Coquitlam’s density bonus program
Applied towards amenities:
• Transit oriented infrastructure
(e.g., streetscape improvements, wider sidewalks, bike lanes)
• Community facilities
(e.g., parks, plaza, public art, public buildings)
• Affordable housing
Coquitlam’s density bonus program -
evolution
Town Centre Commercial, C-4 zone
• Approved by Council on May 3, 2004
Base density 2.5 GFA
• Employment-generating use must occupy 0.7 FAR
Density bonus structure
• Core Area, 1.0 additional FAR at a ratio of:
• 1m² of employment generating GFA to 3m² of residential GFA; or
• 1m² of accessible residential GFA to 1m² of residential GFA; or
• A combination of both
• Frame Area: Additional density may be approved by Council in
the form of civic uses
• Up to a maximum of 3.5 FAR
Coquitlam’s density bonus program -
evolution
City Centre Commercial, C-4 zone
• Approved by Council on June 16, 2008
Base density 2.5 GFA
• Employment-generating use must occupy 0.7 FAR
Density bonus structure
• 1.0 additional FAR at a ratio of:
• 1m² of employment generating GFA to 3m² of residential GFA; or
• 1m² of accessible residential GFA to 1m² of residential GFA; or
• A combination of both
• 0.5 additional FAR for financial contribution of 50% of land
value, split 50/50 between public amenities & affordable
housing fund
• 1.0 additional FAR for civic & assembly uses
• Up to a maximum of 5.0 FAR
Coquitlam’s density bonus program -
evolution
City Centre Commercial, C-4 zone
• Approved by Council on June 13, 2011
Base density 2.5 GFA
• Employment-generating use must occupy 0.5 FAR
Density bonus structure
• Value Based Model - bonus density offered in exchange for
financial contribution based on land value of additional density
• Up to a maximum of 5.0 FAR
Coquitlam’s density bonus program -
evolution
Densit
y Step
Conditions of Additional Density GFA
Ratio
Max GFA Ratio
Step 1 Financial contribution of 75% of land
value of additional density
Up to
0.5
3.0 times the lot
area
Step 2 Financial contribution of 65% of land
value of additional density
Up to
0.5
3.5 times the lot
area
Step 3 Financial contribution of 50% of land
value of additional density
Up to
0.5
4.0 times the lot
area
Step 4 Financial contribution of 35% of land
value of additional density
Up to
0.5
4.5 times the lot
area
Step 5 Financial contribution of 25% of land
value of additional density
Up to
0.5
5.0 times the lot
area
Density bonus program expansion
High Density Apartment Residential, RM-4, RM-5 & RM-
6 zones
• Approved by Council on October 22, 2012
Base density 2.5 GFA
Density bonus structure
• RM-4: up to a maximum of 3.0 FAR, 8-12 storeys
• RM-5: up to a maximum of 3.5 FAR, 8-20 storeys
• RM-6: up to a maximum of 4.0 FAR, no height limit
Density bonus program expansion
Transit Village Commercial, C-7 zone
• Approved by Council on October 22, 2012
Base density 2.5 GFA
• Employment-generating use must occupy 0.25 FAR
Density bonus structure
• Up to a maximum of 4.5 FAR
• No height restrictions
How are we doing?
What we have heard from the development industry:
• If you allow higher density then reduce off-street parking
requirements
• Surplus of employment-generating floor space in current market
– limited take up
• Limited buyer demand for accessible units
• Transparent and straightforward administration
How are we doing?
• To date $11,400,000 density bonus contributions received
• Land value is based on $60.00 sqft.
• Density bonus estimates:
• 2014 - $1,500,000
• 2015 - $4,000,000
• 2016 - $11,000,000
High
Street
in 1999
High
Street
Today
CACs help fund new community amenities
• Voluntary contribution sought through rezoning process in
Burquitlam/Lougheed neighbourhood
• Burquitlam/Lougheed community centre the identified amenity
An alternative or supplement to typical growth
financing (DCCs, taxes)
• Focused on high-growth areas in ‘amenity need’
• Helps to fund growth-related amenities
• Shares capital cost burden between new & existing residents
Community Amenity Contributions
(CACs)
UDI: CACs need to be guided by principles:
1. Need & Nexus
2. Transparency
3. Equity
4. Certainty
5. Efficiency
6. Consistency
7. Right of Consultation and Arbitration
8. Accountability
CAC principles
Community Amenity Contributions
(CACs)
Coquitlam’s CAC approach
Applied to Burquitlam / Lougheed neighbourhood
• Significant new growth underway; more expected
• Identified need for community centre amenity
• Applies to TDS core, shoulder and corridor areas
• Burquitlam Neighbourhood Plan identified a need for a new community recreation centre (adopted June 17, 2002)
• TDS initiative confirmed the need for a new community centre and provided a basis for the CAC approach
Coquitlam’s CAC approach
Program Structure: $3 per sq.ft.
• Research involved - reviewing other municipal approaches, preliminary discussions with UDI
• Applies to new residential floor space up to 2.5 FAR when a rezoning is required
• A credit is given on existing residential floor space being replaced
• Potential projected $20-25 million over several decades
CAC relaxation and grandparenting
In-stream application considerations
• CAC’s have implications for the land market – land is purchased based on assumed set of fees
• CAC’s were identified during TDS process (2012) and implemented February 2013
• In stream protection granted to rezoning applications consistent with the OCP if the project obtains a building permit within one year (by February 2014)
How are we doing?
One year Progress Reporting
• To date two development applications have submitted CAC funds, totaling approximately $650,000
• 11 projects have development applications in stream and are eligible for CAC submissions
• Meanwhile the City is continuing to pursue planning for a community centre in the Burquitlam/Lougheed Neighbourhood
2014 2015 2016
CAC Estimates $65,000 $587,000 $1,425,000
Coquitlam’s approach to CAC’s
• Consistent with UDI principles and implements TDS direction
• Defined policy provides predictability, certainty
• CAC’s can help fund amenities in higher density areas
• Potential future CAC program expansion to Coquitlam City Centre & Partington Creek Neighbourhood Centre
How are we doing?
Questions?
Don’t forget the 3 webinars in the fall.
Resources
Local Government Division (CSCD)— http://www.cscd.gov.bc.ca/lgd/planning/community_amenity.htm
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Contacts
Lois-Leah Goodwin, [email protected], (250) 356-1128 Jim McIntyre, [email protected], (604) 927-3401
Feedback is very much appreciated:
http://www.surveys.civicinfo.bc.ca/v2/TakeSurvey.aspx?SurveyID=96M27l7
THANK YOU for your participation in this webinar
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