CANMORE – Town of Canmore staff are recommending council move forward with an amendment to the off-site levy bylaw that could see it and area developers head to a provincial tribunal.
Town staff are recommending a lone change to one project of the cost-sharing of 10 projects identified by the Bow Valley Builders and Developers Association (BOWDA) in a letter sent Feb. 9 to council and municipal senior staff.
“Administration supports one of the concerns raised by BOWDA, with regard to cost splits between the existing community and growth for the Grassi booster station capacity,” stated a Town staff report. “Other than this project, administration does not recommend further changes to the off-site levy bylaw amendment.”
Council will consider the potential project amendment as well as a possible second and third reading of the off-site levy bylaw amendment at its March 5 meeting.
The lone project change, if approved by council, would see the cost-sharing switched for the $2.31 million Grassi booster station capacity upgrade from 46 per cent to 12.3 per cent for a shift of $800,000 to be covered by the municipality.
However, the remaining nine issues brought forward by BOWDA would remain unchanged, according to Town staff’s review of area developers' concerns.
Council directed Town staff to review a Feb. 9 letter received by BOWDA and report back with responses.
“BOWDA wants to work with the Town to ensure that the off-site levies are fair and fully consistent with the legislation,” stated a Feb. 9 letter from BOWDA chair Brian Talbot. “Avoiding legal challenges to the bylaw is in the best interests of both the Town and BOWDA, so that our members can proceed with their developments without a legal challenge causing them delay.”
The two sides have been negotiating an updated bylaw since mid-2022, with it initially beginning during the development of the 2022 Utility Master Plan
BOWDA argued in its Feb. 9 letter the Town failed to properly account for benefit to the municipality in 10 projects.
The projects range from reservoir booster stations, lift stations, Smith Creek reservoir and a looping pipe to connect Silvertip reservoir to the rest of Canmore’s water system.
Under the cost allocations in the proposed bylaw – including the one project revision – the Town would pay $1.77 million, developers $23.34 million and Dead Man’s Flats $389,700. The cost splits from BOWDA – using a unit split on some projects – would have the Town pay $5.24 million, developers $18.48 million and Dead Man’s Flats $1.77 million.
“Off-site levies are important to BOWDA and its members. Collectively, we and the Town of Canmore have an interest in ensuring that any amendments to the Town’s off-site levy bylaw are in full compliance with the requirements of the Municipal Government Act,” stated the letter from Talbot. “BOWDA recognizes that the Town may impose off-site levies on certain infrastructure to fund future Town growth.”
In a Feb. 1 letter to the Town, BOWDA asked for a 30-60 day postponement of the bylaw to continue talks since “it is to the benefit of both the Town and the development community to work together on issues of the magnitude found,” in the bylaw. He said BOWDA “has significant concerns … specifically with the allocation of benefits.”
The Town responded to each individual project listed as a concern by BOWDA, with responses ranging from growth expanding infrastructure demands, Dead Man’s Flats capacity being determined through servicing agreements and cost-sharing having been calculated properly.
If the bylaw amendment were approved by council – along with the cost-sharing for the Grassi booster station capacity upgrade – the $273.8 million in project costs would have developers pick up $153.6 million of costs. If the upgrade isn’t included, it would be $154.4 million.
If changes to the cost-sharing for the Grassi booster station capacity upgrade are approved by council, it would also slightly modify the average off-site levy rate for unit types such as commercial, hotel, low-, medium- and high-density.
The staff report noted the existing booster station doesn’t meet the Town’s demand for the 15-year growth outline.
In Town staff’s response to BOWDA’s Feb. 9 letter, they noted the Town and the MD of Bighorn have servicing agreements that “are structured so that the MD effectively pre-purchased capacity for what they anticipate as projected full buildout for Dead Man’s Flats.”
In the Feb. 9 letter, BOWDA argued there were two different methodologies used for cost allocation by the Town for water infrastructure.
The Town stated it was “difficult to respond to this claim, as it has not been directly identified in previous engagements on the UMP or the off-site levy or in their correspondence.” However, the Town’s response noted it uses the Corvus model for calculating off-site levies – which BOWDA was consulted – and said developers had accepted it being compliant with the MGA.
The response pointed to Section 648.2(1) of the MGA which outlines a municipality determining an off-site levy methodology.
“This methodology recognizes the impact that the considerations listed above can have on allocating benefit to existing development or to growth,” according to the Town’s response.
“It is applied consistently to water infrastructure throughout the municipality and is consistent with the current off-site levy bylaw and Corvus model.”
Under the MGA, an off-site levy can be appealed within 90 days of such a bylaw being passed.
It would go to the Land and Property Rights Tribunal, who schedule a hearing for the matter. A case could be dismissed, but if an appeal is successful the bylaw could be fully or partially rescinded.
SERVICE DEMAND FACTORS
- Commercial: 25.88 hectares per unit to 37
- Hotel: 109 hectares per unit
- Residential low density: 25.88 hectares per unit to 14
- Residential medium density: 25.88 hectares per unit to 43
PROPOSED AVERAGE OFF-SITE LEVY RATE PER UNIT
- Commercial: $17,407 (existing bylaw $14,981)
- Hotels: $12,290 (existing bylaw $5,019)
- Low-density residential: $12,106 (existing bylaw $7,490)
- Medium-/high-density residential: $11,509 (existing bylaw: $5,618)
BIG TICKET PROJECTS
- Wastewater treatment plant discharge limit upgrade: $71 million ($35.5 million developer cost)
- Pumphouse No. replacement and upgrade: $26.78 million ($11.55 million developer cost)
- Palliser fire station: $17.175 million ( $2.146 million developer cost)
- Smith Creek reservoir and boosting station: $12.78 million ($12.78 million developer cost)
- Wastewater treatment plant expansion phase two: $11.127 million ($8.274 million developer cost)
- Wastewater treatment plant third clarifier addition: $10.2 million ($9.996 million developer cost)
- Three Sisters fire hall: $7.5 million ($7.5 million developer cost)
