Development Cost Charges

What are Development Cost Charges?

The City levies development cost charges (DCCs) on new development to help finance the cost of providing new, or upgrading existing infrastructure, as well as the acquisition of new parkland. DCCs are imposed on subdivision approvals that create single family residential lots. They are also applicable to building permit applications for carriage homes, multi-family residential, commercial, institutional, and industrial development where the value of work exceeds $75,000. Municipalities have the authority to collect DCCs as per Section 559 of the Local Government Act.

DCC fees are levied per lot, per dwelling unit, or per square meter of new development, for services such as drainage, parks, roads, sewer and water, are established under the City of West Kelowna's Development Cost Charge Bylaw No. 0190.

Council adopted the most recent bylaw at the June 28, 2016 meeting.

1. Development Cost Charges B0190
2. Development Cost Charges DCC Policy

Exemptions to DCCs

Not all development is subject to DCCs. The following are exempt from these charges per Sections 561 and 563 of the Local Government Act:

• If a Development Cost Charge has previously paid for the same development
• Developments that do not impose any capital cost burdens on the municipality
• Where the building permit authorizes work that is not subject to taxation under s. 220(1)(h) and s. 224(2)(f) of the Community Charter
• The overall value of the building permit work does not exceed $75,000
• Units that are smaller than 29m² in size
• The work is classified as an 'eligible development' in the municipality's DCC bylaw (i.e. affordable rental housing)
• Additional work to an existing development that does not impose any additional capital cost burdens on the municipality

Growth for the City of West Kelowna

Growth benefits the community, its economy as well as creates the demand for the construction of new infrastructure and the expansion of existing local services. The DCC monies received are used to finance capital projects related to new roads, drainage, sewers, water mains as well as for maintaining and adding new parks within the City of West Kelowna. DCC's are integrated with the Official Community Plan (OCP), Development Cost Charges Bylaw 0190, and the 20 year DCC Plan, which outlines the major infrastructure improvements for water distribution, wastewater trunks and treatment, major roads and parkland acquisitions for accommodating the City's growth.