Developers on the hook for more costs in new builds
Posted Jan 12, 2016 6:47 am.
This article is more than 5 years old.
Developers will no longer get a break on infrastructure costs for new developments.
Calgary’s city council has unanimously passed a bill doing away with the old subsidy system, now leaving home builders on the hook for more of the infrastructure development costs for roads and sewers.
The levies will add up to $464,000 per hectare to new suburban developments, while homes being built in established areas will cost roughly $6,200 more.
Odds are the changes will tack on about one per cent to the cost of a new home, but bring in an extra $50-million a year to city coffers.
There is a bonus system in place to encourage density, as that benefits the city with higher tax income.
Under the old system, the city covered roughly 50 per cent of infrastructure costs for new development.
