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.
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.