DISTRICT OF WEST KELOWNA MEMORANDUM

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1 DISTRICT OF WEST KELOWNA Development Services Division Tel: Cameron Road Fax: West Kelowna, BC V1Z 2T6 Website: MEMORANDUM TO: FROM: Urban Development Institute (UDI) Okanagan Chapter Andy Gaylor, Planner DATE: January 9, 2015 SUBJECT: Request for Comments: DCC Reduction Bylaw Context Based on the direction of the District s Westbank Centre Plan, the District has made significant investments in the Westbank Centre with the goal of creating a vibrant and dynamic town centre. Although the development industry has expressed support for the recent vitalization efforts, it is evident that there remain some barriers that are preventing the private sector from undertaking new development projects within the WBC. Some industry representatives have explained that existing market conditions coupled with an increase in construction costs is making it difficult to commence desired projects and have requested that the District explore reductions for certain fees. To assist with this private sector investment in the Westbank Centre, a reduction in Development Cost Charges is recommended as a fiscal tool to help incent new development. A DCC reduction bylaw signals to the development community that the District strongly supports the creation of strong economic and social core within the community. Amendments made to the Local Government Act (LGA) in 2008 enabled municipalities to waive or reduce DCC for: for-profit affordable rental housing, small lot subdivisions designed to result in low greenhouse gas emissions, and developments designed to result in a low environmental impact.

2 From a sustainability perspective, new development within the Westbank Centre is considered to meet the intent of the LGA as higher density/mixed-use developments within this area makes better use existing infrastructure and is in close proximity to transit, commercial and recreational amenities. These factors generally result in reduced vehicle usage, reducing greenhouse gas emissions and help protect the environment by offering an alternative to low density, greenfield development on the periphery of the community. Eligible Developments For the purposes of the bylaw, any development that occurs within the Westbank Centre Boundary that results in low environmental impact may be eligible for a DCC reduction. The bylaw has been scaled to feature a deeper reduction for higher density, mixed use projects with smaller reductions for projects that propose less density (figure #1). DCC Reduction Minimum Density Requirement (FAR) Notes 100% Responds to maximum density bonusing provisions in C1 zone. Must be 6 storeys in height and contain underground parking. 90% 2.35 Maximum density under C1 zone, with surface parking. 80% 2.2 Maximum density under R5 zone, with density bonusing Must be 6 storeys in height, and contain underground parking 70% 1.8 Maximum density under R5 zone Underground parking required 50% 1.4 Maximum density under R5 zone with surface parking 30% All other proposed multiple family/commercial developments within the WBC Boundary unless otherwise not eligible. Figure 1: FAR and DCC Reductions The density thresholds established in the DCC Reduction bylaw reflect the maximum densities outlined in the two Westbank Centre specific zones: Westbank Centre Multiple Residential (R5) and Urban Centre Commercial (C1). The reductions outlined in Figure #1 reflect the principles vested in the Westbank Centre Revitalization Plan which encourage mixed use projects and higher residential densities in the Westbank Centre.

3 Because the intent of the bylaw is to encourage developers to build at higher densities and make more intensive use of the land, projects with less than 0.95 FAR are not eligible to receive a DCC reduction. The following highway-oriented uses are also not eligible to receive a DCC reduction: Gasoline service stations and other related uses; Vehicle washing facilities; and Fast-food restaurants. It is important to consider that the proposed bylaw is meant to be an interim measure and will lapse two years after it is adopted (unless otherwise directed by Council). The UDI may wish to comment on the proposed densities and associated DCC reductions, ineligible developments and bylaw duration (two years). Because the bylaw is slated for adoption on February 24, 2015, staff would appreciate receiving comments by January 26th, Staff thank you for considering draft bylaw and look forward to reviewing any comments the UDI might have. Kind Regards, Andy Gaylor Planner III cc: Nancy Henderson, General Manager of Development Services Enclosed: Draft DCC Reduction Bylaw H:\DEVELOPMENT SERVICES\PLANNING\6630 Development - General\DCC Reduction Bylaw\Correspondence\Memo to UDI_jan_2015.doc

4 Bylaw No DISTRICT OF WEST KELOWNA BYLAW NO A BYLAW TO REDUCE DEVELOPMENT COST CHARGES FOR DEVELOPMENT WITHIN THE WESTBANK CENTER OF THE DISTRICT OF WEST KELOWNA WHEREAS the Council of the District of West Kelowna is permitted by Section of the Local Government Act to waive or reduce a development cost charge (DCC) by bylaw for developments that are designed to result in low environmental impact; AND WHEREAS Council recognizes that development within the Westbank Center Boundary is designed to result in low environmental impact due, in part, to existing infrastructure, availability of and proximity to services, walkability of the downtown and reduced vehicle usage, and the associated reductions in greenhouse gas emissions and environmental protection; THEREFORE BE IT RESOLVED that the Council of the District of West Kelowna in open meeting assembled, hereby enacts as follows: 1. Title This Bylaw may be cited as the District of West Kelowna Westbank Centre Development Cost Charges Reduction Bylaw No. 0179, Eligible Development For the purposes of this Bylaw, any development that occurs within the Westbank Center Boundary, which encompasses the lands shown within the heavy red outline on Schedule A attached to, and forming part of, this Bylaw, is designed to result in low environmental impact, and constitutes a class of eligible development for the purpose. 3. Reduction The class of eligible development described in Section 2 will have the following applicable DCC reductions based on proposed density: DCC Reduction Minimum Density Requirement (Floor Area Ratio) 100% % % % % % H:\DEVELOPMENT SERVICES\PLANNING\6630 Development - General\DCC Reduction Bylaw\Bylaws\DCC reduction bylaw.docx

5 4. Exceptions Gasoline service stations, vehicle washing facilities and fast-food restaurants are not eligible to receive a DCC reduction. 5. Expiration This bylaw is deemed to expire and shall have no effect after January 27, Severability If any part, paragraph or phrase in this bylaw is for any reason held to be invalid by the decision of a court of competent jurisdiction, that portion shall be severed and the remainder of this bylaw shall continue in force. READ A FIRST TIME READ A SECOND TIME READ A THIRD TIME ADOPTED M A Y O R CITY CLERK

6 Schedule A: Westbank Center Boundary