Community Benefits Charges
Consultation has concluded
The City of St. Catharines has begun work to establish a new Community Benefits Charge (CBC) Strategy and By-law under the Planning Act. The proposed Community Benefits Charge Strategy was presented to Council on June 27, 2022 for consideration, and a public meeting was held, and City staff will be bringing back the Community Benefits Strategy By-law to the July 18, 2022 Council meeting.
What is a Community Benefits Charge?
The CBC is a new growth-funding tool under the Planning Act that allows municipalities to collect a charge against the construction of buildings or structures with five storeys or more and with 10 or more residential units. The CBC Charge allows the City to cover the costs of additional municipal resources required to serve a growing population.
Municipalities can use CBCs to fund a wide range of new growth-related capital costs that are not covered by existing funding tools like development charges, parkland provisions, grants, subsidies, or other contributions.
In short, a CBC is a tool to ensure growth pays for growth, recognizing that growth is more than building houses, it should be about building communities.
Community Benefits Charges in St. Catharines
The CBC rate cannot exceed four per cent of the property’s land value on the day before a building permit is issued. The CBC is paid as a one-time fee by the property developer or builder.
Based on population and development projections identified in the study the City could receive $5.2 million in CBC funds over the next 10 years.
Costs funded by the proposed CBCs include culture and public realm projects and initiatives, City-wide corporate and building infrastructure, and growth studies to further identify the needs of the City.
Some proposed items for CBC-funding include:
- Public art installations
- Downtown and Facer Street Gateway Features
- James Street public realm improvements
- Heritage initiatives
- Traffic calming measures
- Zoning By-law review and update
Full lists of proposed CBC-supported projects can be found on tables in Chapter 4 of the draft Community Benefits Charge Strategy.
Community Benefit Charge Limitations
Beyond requirements that the CBC can only be applied to buildings or structures with five storeys or more and with 10 or more residential units, there are several building types that are exempt from the CBC:
- Long-term care homes
- Retirement homes
- Universities, colleges and Indigenous institutes
- Memorial homes, clubhouses or athletic grounds of the Royal Canadian Legion
- Hospices
- Non-profit housing
Community Benefits Charge creation process
Before passing a CBC by-law a strategy must be prepared that:
- identifies the facilities, services and matters that will be funded with community benefits charges; and
- complies with any prescribed regulatory requirements
The City has engaged Watson & Associates Economics Ltd. to undertake the Community Benefits Charge Strategy. We are currently engaging with the community and stakeholders - including the development industry and the City's Development Studies task force – seeking their feedback on the study.
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