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Oz-
04-11-2006, 09:31 AM
Saw this on the morning news, wonder if this will stymie growth in the new areas.


Buyers take $2,500 hit
New city tax hits developers with new levy to pay for fire stations and transit
By MICHAEL PLATT, CALGARY SUN

New home buyers will be forced to fork over an extra $2,000 to $2,500 per lot under a new city tax that requires developers to pay for infrastructure, including fire stations and transit.

City council voted for the Cost of Growth levy last night, leading Ald. Diane Colley-Urquhart to slam the new charge -- which will raise $176 million over five years -- as a tax on real estate that will hurt home buyers.

"This will have a significant impact on new subdivision development with the costs that are anticipated here," said Colley-Urquhart.

"There's only one place where this will come, and from those who are acquiring new homes in the suburbs."

The levy will be charged to residential and commercial developers on a $40,082-per-hectare basis, with the cost per customer dependent on how many units are built.

Those buying in a high-density condo building would pay much less than a person building a mansion -- but with the average new community density in Calgary equalling 17.5 homes per hectare, it will add up to at least an extra $2,000 per lot.

The levy, the result of negotiations with the city's development industry, will directly pay for recreation centres, libraries, buses and emergency services in new communities.

In turn, the developers have been promised faster planning service from the city, cutting a year wait down to six months.

Mayor Dave Bronconnier said the extra money will ensure new communities aren't stuck waiting for services.

"This means the new home buyer moving into a new suburban community can look and have an expectation in a timely basis of receiving those services," said Bronconnier.

"Right now, that doesn't happen."

As well, said the mayor, existing homes won't be charged extra to pay for the capital needs of new communities.

But Ald. Ric McIver said the charge will drive home shoppers out of the city limits, to towns like Airdrie and Cochrane.

The city already charges a transportation levy, increasing by 7% to $50,625 per hectare under the agreement.

Between the two, the city expects to raise $400 million over the next five years.

topmade
04-11-2006, 10:01 AM
Not surprising, lot prices go up all the time. From the time we looked and to the time we signed (about 1 month) the lot price was up about $1,000. That was back in Oct last year in Panorama.

Seems to me they just want to get some money because of all this craziness with house prices going through the roof.

sputnik
04-11-2006, 11:05 AM
GOOD!

It will push the value of my house up further!

StupidWade
04-11-2006, 12:30 PM
My prediction, the City will take in all this extra money and people in new subdivisions will wait just as long for new services as people do now.

You can throw all the money at this problem as you like, it still takes the same amount of time to build a school or a fire station as it always did.

NickGT
04-11-2006, 12:37 PM
Originally posted by sputnik
GOOD!

It will push the value of my house up further!

:werd:


Originally posted by StupidWade
My prediction, the City will take in all this extra money and people in new subdivisions will wait just as long for new services as people do now.

You can throw all the money at this problem as you like, it still takes the same amount of time to build a school or a fire station as it always did.

Especially with a shortage in skilled trades.

djayz
04-11-2006, 12:43 PM
they are just cashing in on it cuz they know they can get the money

whos gonna cancel an order for a house because they have to pay 2000 extra
they know its booming they know people are moving here regardless of prices so why not make some extra money...
they could prolly charge double that and probably wouldnt have a problem

Melinda
04-11-2006, 01:22 PM
Originally posted by djayz
they are just cashing in on it cuz they know they can get the money
Or you know, cause fire halls, hospitals, schools, pipelines, waterlines, sewers and c-trains actually cost more money to build...$1500 per house hold each year for property taxes probably won't cover ALL of those needed facilities, and I somehow think people in the new suburbs would be bitching pretty hard if they had to wait 10 minutes for a fire truck to get to their burning house cause the closest one is so far away. Great way to put more money towards that out of the resident's pockets so that people who already have pre-existing homes aren't paying for people in new homes to be able to live. And the money that might have been budgeted for all the new things in the area can be put towards the road stuff you guys keep praising Bronconier for.

kaput
04-11-2006, 02:37 PM
.

sputnik
04-11-2006, 02:45 PM
Originally posted by kaput
In 10-15 years, Calgary is going to be a big infrastructure mueseum.

... and we will all be living in Thunder Bay where the streets will be paved with Gold!

:rolleyes:

Alex_FORD
04-11-2006, 05:00 PM
Originally posted by sputnik


... and we will all be living in Thunder Bay where the streets will be paved with Gold!

:rolleyes:

I thought you are going to be living in the phillipines?