Kamloops politicians to hear report about new development-linked funding source for infrastructure

The Build Kamloops Committee is set to hear and discuss a report about amenity cost charges (ACCs) – that could help pay for some new infrastructure – tomorrow afternoon, June 4.

According to the Provincial Government, amenity cost charges are a new finance tool that allows local governments to collect money from new development to help cover the cost to build things like community centres, recreational facilities, daycares, and libraries.

The City’s Development Director Marvin Kwiatkowski says the intent of the report is to bring Kamloops politicians up to speed on new provincial legislation.

“There are new eligible type projects for development cost charges (DCCs) and then there is new legislation for amenity cost charges that we haven’t had any direction yet on from council, but that may be coming,” Kwiatkowski said.

“So we’ll see what sort of direction we get to explore that but we don’t even have all the information from the Province.”

In the report, Deven Matkowski, the City of Kamloops’ Engineering Manager, said it is up to each local government to decide whether or not they want to adopt new amenity cost charges bylaws.

“In many ways, amenity cost charges will mimic development cost charges,” Matkowski said. “The City has successfully embraced development cost charges as the preferred development finance tool to deal with infrastructure demands arising from growth.”

“Amenity cost charges will be very similar to development cost charges in their implementation. Both are set on a cost recovery basis and are regulated through provincial legislation.”

Matkowski also said there were regular references to the Development Cost Charge Best Practices Guide during recent webinars that explained what Amenity Cost Charges are.

“Amenity cost charges can be collected and used to fund the capital cost component of various amenities, including planning, engineering, construction, and interest costs,” Matkowski added.

Local developer not a fan of proposal

Kamloops Developer Joshua Knaak took to social media to voice his opposition to ACCs, arguing it is “an inflationary tax that drives up housing prices.”

“You may be inclined to ignore it as it ‘only applies to new development.’ It doesn’t,” Knaak said. “It’s a poorly thought through idea but politically expedient because people don’t think it’ll impact them.”

“But if you drive up the cost/price of new housing, what happens to existing inventory? Those prices go up as well.”

He said while the move is beneficial to him as a developer and a property owner, he hopes people reach out to councillors “to ensure they understand this is a terrible idea.”

“I’m saying this as someone who thinks housing costs are out of control and governments are just making it worse,” Knaak added.

More details to come this year

Kwiatkowski told Radio NL that the Province is expected to release more comprehensive guidelines on the changes to development cost charges and amenity cost charges either in late summer or early fall this year.

“As far as the guidelines, there was a bit of a bulletin from the Province that came out a couple of weeks ago, but again, we haven’t had any direction on the amenity cost charges and whether that is to be coming forward so we’ll bring that to committee and get feedback from there,” Kwiatkowski said.

“It would be interesting to look at what components would actually be covered, because what the bulletin did say is that you wouldn’t look at the whole project, it would be what could be considered growth related because it states that pent-up demand wouldn’t necessarily be an eligible charge. There is lots to dive into into and we need to wait for the full guidelines to come out.”

He said the Build Kamloops Committee was chosen to hear this report as it is tasked with trying to fast track some of the projects that were identified in the Kamloops Recreation Master Plan.

Those projects include the Kamloops Centre for the Arts – identified as the top priority – as well as additional ice rinks, a new leisure pool on the North Shore, and a large curling club facility to accommodate consolidation of the two curling clubs in Kamloops.

It also includes indoor field space like a soccer field or gymnasium and a new all-ages community centre, with housing potentially included in some of those facilities, if it is feasible.

“If we are to move forward [with ACCs, it] may take a year or so working with the developers as well, similar to the Development Cost Charges,” Kwiatkowski said.

“We have an engagement group, so we would have to have an engagement group and engage with the community with what may or may not come forward.”