Development Cost Charges (DCCs) are fees collected from land developers on a user pay basis to help fund the cost of growth-related infrastructure and parks. The rate charged reflects the impact growth has on infrastructure and parks; the greater the impact, the larger the charge. This helps ensure developers pay their fair share of the costs required to develop new infrastructure.
Currently, the City has adopted three DCC bylaws which authorize collection of the following charges:
- Park Improvement Development Cost Charges, Bylaw 1990 - Adopted Oct. 10, 2023
- Roads Development Cost Charges, Bylaw 1836 - Adopted Sep. 27, 2021
- Sewer Enhancement Development Cost Charges, Bylaw 1500 - Adopted Nov. 29, 2011 (last amended May 8, 2023)
The City of Colwood collects development cost charges on behalf of the CRD’s Juan De Fuca Water Distribution in accordance with Development Cost Charges, Bylaw 2758 Consolidated Bylaw Amendment 4249 – Adopted December 12, 2018.
The City of Colwood collects school acquisition charges on behalf of School District 62 (Bylaw No. 2019-01, Adopted 20190625). The collection of these charges is authorized by Section 572 of the Local Government Act
The City of Colwood's Online DCC Estimator is tool to help you estimate DCCs. For more information, please contact the Building Department at 250-478-5999.
Who pays DCC's?
DCC's are paid by applicants (developers) for:
- Subdivision approval to create single family lots; and
- Building permits to construct multi-family, commercial, industrial or institutional developments.
What do DCC's fund?
DCC's are used to pay for capital upgrades to sanitary, water, drainage, and transportation systems that are needed to support growth. They are also used to acquire and develop parkland.
What do DCC's not pay for?
DCC's are regulated by the province and cannot be used to pay for operational costs, maintenance costs, infrastructure upgrades required to service the existing population and/or new facilities such as fire hall, libraries, etc.
How does the City set DCC rates?
DCC rates are calculated by dividing the cost of growth-related infrastructure and parks by the amount of anticipated growth.
When are DCC's payable?
|Land Use Category||Collection Unit & Timing|
|Single Family Residential||Per lot at time of subdivision|
|Duplex||Per unit at time of BP|
|Attached Housing (Townhome or Row Home)||Per unit at time of BP|
|Apartment Residential||Per unit at time of BP|
|Commercial||Per GFA at time of BP|
|Industrial||Per GFA at time of BP|
|Institutional||Per GFA at time of BP|
Do building additions or redevelopment of an existing building trigger DCC contributions?
For projects where an existing building undergoes an expansion or redevelopment there is usually an additional growth-related demand placed on City infrastructure and park requirements. Therefore, in these circumstances, the developer will be required to pay applicable DCCs based on the additional units or floor area created by an expansion or redevelopment in accordance with the rates in the current DCC bylaws.
Can DCC's be paid in installments?
Payment by installment under the authority of Ministerial Regulation #166/84 is ONLY allowed when the total of a given DCC exceeds $50,000. No underlying agreement between the developer/builder and the City is necessary, but the following list of requirements must be strictly adhered to:
1. Before the subdivision application is approved or the building permit issued, as the case may be, the developer must: (a) Pay one third (⅓) of the DCC's to be levied to the City; and (b) Provide a Letter of Credit to the City for the remaining two thirds (⅔) which is to expire no earlier than one (1) year plus 30 days from the date of payment in 1(a) above.
2. Before the first anniversary of the payment in 1(a) above, the developer must: (a) Pay one third of the DCC's to the City; and (b) Provide a Letter of Credit to the City for the remaining one third (⅓) which is to expire no earlier than two (2) years plus 30 days from the date of payment in 1(a) above. Failure to meet these requirements will result in the total outstanding balance (i.e. two thirds of the DCC's) becoming due and payable immediately and their collection through a draw on the Letter of Credit. If such a draw is made, the final one third cannot be again considered as an installment.
IMPORTANT: Letters of credit must be in a form acceptable to the City Treasurer-Collector and must be drawn by a chartered bank, credit union or trust company with an office in the Capital Regional District where draws against the Letter of Credit will be honoured. They must not require the City to prove a claim in any manner, and will stipulate that sight drafts will be accepted if tendered within the allowed dates
3. Before the second anniversary of the payment in 1(a) above, the developer must pay the remaining one third (⅓) to the City. Failure to meet this requirement will result in the final one third being drawn under the Letter of Credit.
What is considered an in-stream application?
DCC rates come into force immediately after a Development Cost Charge Bylaw is adopted; however, the Local Government Act provides special in-stream protection from rate increases for development applications that are submitted prior to the adoption date.
- FINAL SUBDIVISISON APPLICATIONS - Section 511 of the LGA offers in-stream protection to final subdivision applications creating single family lots, as long as the application is received prior to or on the date of adoption of a DCC Bylaw (e.g. Oct. 10th 2023 for Bylaw 1990).
- DPs & REZONING APPLICATIONS - Section 568 of the LGA also extends in-stream protection to rezoning and development permit applications that were submitted prior to or on the date of adoption of a new DCC Bylaw AND THAT will result in a building permit within 12 months of the adoption of the Bylaw.
- BUILDING PERMIT APPLICATIONS – Section 568 of the LGA provides in-stream protection to complete BP application submitted prior to or on the date of adoption of a new DCC Bylaw PROVIDED THAT the permit is issued no later than 12-month passed the bylaw adoption date (e.g. October 10, 2024 for Bylaw 1990).
Other DCC related links
- Background on the development of the city’s NEW Park Improvement DCC Bylaw 1990
- Staff Report presented to Council at its May 23, 2023 regular meeting
- Appendix 1 - USL Colwood Park Improvement Background Report
- Appendix 2 - Draft Park Improvement DCC Bylaw
- Appendix 3 - Ministry of Community Services DCC Checklist
- Consultant Presentation / Link to video presentation Starting at 2:11:07
- Development cost charges - Province of British Columbia (gov.bc.ca)