Off-site Levies and Infrastructure
Off-site levies are fees developers pay to the City when they are building new neighbourhoods. The Municipal Government Act allows municipalities to create an off-site levies bylaw to help pay for important infrastructure like community recreation facilities, fire halls, police stations, libraries and transportation connections to provincial highways.
Off-site levies are paid by developers as a condition of subdivision approval. They are not paid by homeowners or future home buyers.
Implementing Off Site Levies in Edmonton
Working with the development industry, the City of Edmonton is taking a phased approach to implementing the Off-Site Levies bylaw.
Once a bylaw is approved, in phase one, levies will be charged only to help pay for the construction of fire halls in the greenfield, or new development areas, of Edmonton. The levies will cover the capital costs of new fire hall construction, like designing, building and outfitting the fire hall. The levy won’t include ongoing operations and maintenance costs.
Every development within the benefiting area would pay its fair share based on the land area being developed, but off-site levies will not be charged in areas that are already developed. If new facilities are planned in areas where development has already happened, the City contributes the share of costs that would have been charged to a developer in those areas.
How Levies are Charged
The off-site levy rate will be calculated by dividing the construction cost of a facility by the assessable area within a catchment area. The catchment area of a facility like a fire hall or library is the area (or neighbourhoods) mainly serviced by that facility.
At Council’s direction, City administration held discussions with the development industry to create an off-site levy bylaw. The following industry organizations are involved in the discussions:
- Urban Development Institute - Edmonton Region (UDI-ER)
- National Association for Industrial and Office Parks (NAIOP) - commercial real estate development association
- Infill Development in Edmonton Association (IDEA)
- Canadian Home Builders Association-Edmonton Region (CHBA-ER)
- Building Industry and Land Development (BILD)
City administration will bring an off-site levy bylaw and associated policy to City Council’s Executive Committee in June 2021 for approval.
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