CANMORE – A new residential project will see a developer pay off-site levies on a phased basis as the policy that guides such payments will return to council in the future for a much needed update.
The phased approach, which is similar to what larger municipalities such as Calgary and Edmonton do, will have Calgary-based developer Logel Homes pay off-site levies for each phase of construction as residents near moving in and an occupancy permit is received.
Council approved the phased-in approach 4-3, with Couns. Joanna McCallum, Jeff Mah and Wade Graham in opposition.
Canmore Mayor Sean Krausert said it was a “business friendly move” and “one that we should consider for other developments that have similar circumstances in the future.”
The 239-unit residential project has three four-storey apartments and one three-storey apartment. There are also three three-storey townhomes.
Of the 239 units, 215 will be a mix of one- and two-bedroom units, while 166 will be considered entry-level and come with seven different unit plans.
Altitude at Three Sisters Mountain Village was approved by Canmore’s planning commission in June. It was delayed for a month after the commission directed Town staff and Logel Homes to add more affordable housing units to the project.
The 239-unit project went from proposing four affordable units to nine, with the option of Canmore Community Housing buying at market rate two units in each of the four apartments.
The project will allow Canmore residents the first opportunity to buy units during pre-sales for a month before being opened to the general public.
The existing policy – first approved in 1999 – is structured for 25 per cent ($1.28 million) paid at the signing of the agreement, 50 per cent ($2.56 million) one year after the agreement is signed and 25 per cent ($1.28 million) two years after the signing of the agreement of when an occupancy permit is asked for.
The phased-in approach will have the first phase pay ($856,760), Phase 2 ($1.35 million), Phase 3 and 4 ($1.2 million each), Phases 5-7 ($514,056).
“This better reflects their practice in other communities, where off-site levy payments are made from unit deposits and sales,” stated a staff report.
The staff report highlighted the intent to create a replacement corporate directive next year, which would lead to the existing payment of levies and fees policy that was established in 1999 to be rescinded.
The council-approved change will have Logel Homes pay at different stages, but the $5.12 million in off-site levies – or roughly $21,500 per unit – will still be collected.
“They’re not looking to pay less here, they’re just looking to pay in different increments and would like to pay at the occupancy stage,” said Harry Shnider, the Town’s manager of planning and development.
He said the expected completion for the project is five to 10 years.
Coun. Graham said he wasn’t opposed in principle to the phased-in approach, but preferred policy to be developed and approved before making a decision.
“I promised myself I’d never end up in that situation again, and here we are. … I too would’ve liked to see an updated policy. … I’m hoping to see that policy come back relatively soon,” he said.
Coun. McCallum supported Graham’s point on new policy coming first before council making a decision.
“I think the Town of Canmore has extended a lot of welcome to Logel Homes and extended a lot of latitude in terms of variances at CPC (Canmore Planning Commission),” she said. “I think our developers should be treated equally, so I would prefer the policy to be brought forward freshly and then we can move forward from there.”
She expressed concern if the project were to take several more years than anticipated, it would be locked into the off-site levy rate that was in place when the development permit was approved.
Shnider noted if the scope of the project were to change from what was approved in the development permit, off-site levies would be updated to the most up-to-date levy bylaw.
“The municipality is fully within its rights to do an upcharge according to the current off-site levy in effect at the time,” he said.
Both Krausert and Coun. Jeff Hilstad pointed to it being a way to support development to move forward, while also potentially having new policy be adapted since it was first put in place in 1999.
“Often change comes about because of a situation that arises in which it’s sometimes necessary. I think it supports housing moving forward and ultimately that’s what we need and we’ve been working on as council,” Krausert said.
Shnider said Town staff expect to return within the year with an updated policy. He said the development permit captures the one lot building that will take place rather than subdividing the lot into separate parcels.
During the discussion, McCallum said, “the developer is looking for a change in how they are able to pay the fees that are set here at the same time they’re appealing the fees they’re paying.”
Logel Homes is an appellant along with Spring Creek Mountain Village, Three Sisters Mountain Village Properties Limited (TSMVPL), Stone Creek Resorts, BOWDA and SC3 Limited Partnership (Devonian Properties) against Canmore’s off-site levy bylaw amendment.
During a preliminary July hearing at a three-person panel for the Land and Property Rights Tribunal (LPRT), the project was used as an example to show the significant increase in off-site levy costs.
The change in off-site levy costs shows a roughly 500 per cent increase in costs, with a per unit cost jumping about $16,000.
“There are significant impacts on developers on their ability to move forward with development,” Kathleen Elhatten-Lake, a partner with Shores Jardine and a legal representative for developers, said at the July hearing. She noted it adds uncertainty which is a “death knell for development.”
The developers have pushed for the Town to make public its calculations model for off-site levies for several months. At the July hearings, legal representation for developers stated providing calculations for off-site levies is required under the Municipal Government Act and off-site levy regulations.
“We just want transparency, which is a fundamental part of the off-site levy,” Elhatten-Lake said at the July hearing. “We just want to understand how you get from 10s of millions of dollars to an amount per unit, which is a pretty basic question.”
Town staff previously told council without an update to the off-site levy bylaw, it could cost the municipality between $1-2 million a year in collections. Council also approved up to $500,000 being spent on estimated legal costs and expert fees.
A preliminary hearing had the Town aim to remove BOWDA from the appeal, arguing it wasn’t an impacted party. A three-person LPRT heard arguments in July and found BOWDA could take part in the appeal.
The main hearing is set to take place in October.
BUILDING BREAKDOWN
- Building No. 1: Four storeys and 40 units. Fifty-four vehicle parking spots and 80 bicycle parking.
- Building No. 2: Three storeys and 63 units. Eighty-eight vehicle parking spots and 128 bicycle parking.
- Building No. 3: Four storeys and 56 units. Seventy-four vehicle parking spots and 112 bicycle parking.
- Building No. 4: Four storeys and 56 units. Seventy-six vehicle parking spots and 112 bicycle parking.
- Buildings No. 5, 6, 7: Three storeys and eight townhomes each. Sixteen vehicle spots each.
